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1S39 ESTABLISHED lteg» U. S. Pat. Office Volume 188 New York Number 5790 EDITORIAL Put On Your We See As * V ' \ By ROGER F. MURRAY* S. Sloan Colt Professor of San Antonio, Texas , Graduate School * Texan contributor ful forms of the feeling of about the close. It could thoughtful observers many political campaigns coming to now tionary toll a hear little nothing or the on either have little to almost support them or else could well be leveled at the as speakers them¬ selves and their parties. One that there is little real enthusiasm about how so scarcely wonder can the needs Murray studies past performance to see if today's so fundamentally changed as to invalidate warning signals now being raised. Not im- ' pressed with the favorable business outlook argument,; [ he examines other grounds offered to justify ignoring of > past experience with present yield relationships. Con¬ cludes: (1) common stocks are not attractively priced or grossly overvalued; (2) inflation fears may subside before spreading; and (3) risk goes hand in hand with pursuit of aggressive stock acquisition program though, he adds, there is no basis for concluding stock prices: will collapse in the near future. : investment market has constant renewals. voting turns out next week. The fact is that one New York City public's refusal to understand the nature of money a piece of paper money is a demand promissory note, i.je., a promise to pay real money. He deplores discriminatory privileges of allowing foreign central banks to redeem U. S. dollars into gold; finds deficiencies in our banking and central banking reserve requirements and practices; and describes short-term or Treasury bills a misnomer since they are never paid but are the equivalent of long-term obligations because of hustings but charges and counter charges which j supporting Of course, time and thus a .fundamental them, of realization truth that among on page their numerous should "put income tax on is Certainly most Congressmen and considering this matter, their specs." The employment of our supporters, a forcing of Continued on PICTURES IN THIS ISSUE—Candid photos taken at the 26th DEALERS X able bonds and preferred stocks. The record of the past explicitly tells us that this kind of porate Bond Traders of New York appear a will not continue. prudent buying warns yield relationship It suggests to the man that he refrain from equities at these prices. It of the probability that such purchases will produce capital losses, in addition to the lower level of in¬ come, Roger F. Murray unless, in accordance with the "greater fool** philosophy of equity investment, he can find another investor to take the stocks off his hands at even less attractive yields. This Continued on 34 page by Dr. Murray before the Trust Division of the New York State Bankers Association, Rochester, N.Y., Oct. 16, 1958. ♦An 26 equities while Yet, contributions. on again'dropped significantly be¬ low the rate obtainable from market¬ the at to high taxes whose amounts are statutory, while continuing on our course of wasting our resources. J. M. Hornor politicians, and among all too many voters, gives the picture a still more gloomy tone. If only there were even an articulate and vigorous minority Continued and, popular support that affords a splen¬ did example of the common weak¬ ness dwelt upon by Carlyle. This activity is that of objecting The fact is, nonetheless, that change in the direction of our a has persons time, are increasing their pop¬ ular support. Yet a dangerous ac¬ tivity confronts us and receives a thinking and our collective activity i-s for that all the greater, and the absence of any of some same reason evidence when the current return We should be Amendment Sixteenth. predestined this campaign to the charac¬ ter it has assumed. induced no who now actively strive for the repeal of the grateful to larly during the past decade, have left little dif¬ or programs among not siasm for repealing it. politicians during the past two decades, particu¬ philosophy and fixed income securities at a time have law the paths chosen by both of the leading parties and by practically all influential ference in much enthu¬ There is investment that should be abolished. rather than another, one group Up to this objections to this un-American faults of certain strongly supported policies. Admittedly, the Federal Income Tax is an instrument of tyranny really should be and could be important reasons for difficulty about identifying the principal problem facing the trustee or portfolio man¬ ager in. today's environment. It is the level of stock prices. Stated in other terms, it is the choice between stocks Popular thinking on economics blindly excludes proven repeatedly to remind oneself that therp :f-'1 and Trust Company, Dr. savings. Mr. Hornor charges negligence upon York City, Former Vice-President, Bankers and the fact that tragic need for basic changes in public policy and we harm¬ or in the hardly be otherwise. Despite the public programs, are Money and Banking of Business, Columbia University, New forcing of contributions" for the benefit of government—ranging from tax-spending policies to reduction in gold content of the dollar and infla¬ This familiar couplet from the poet aptly ex¬ presses objects to what he believes "taxing Copy a Specs By JOSEPH MOSBY HORNOR of all sad words of tongue or pen The saddest are these—'it might have been'" ; Price 50 Cents 7, N. Y., Thursday, October 30, 1958 page 28 Annual Dinner of in today's Pictorial address the Cor¬ State, Municipal Section. and in U. S. Government, State and Securities ^ 5UNDERWRITERS Municipal and. _ - " . telephone; STATE ' „ ■ and 623 Members New York BONDS Members Pacific Public Housing Agency Bonds and Notes Stock Exchange Associate Member American Stock Exchange Coast Exchange , BOND DEPARTMENT SECURITIES Offices in Claremont, Corona CORN EXCHANGE del Mar, Beach, Riverside, Diego, Santa Ana, Santa Monica Encino, Glendale, Hollywood, Long Pasadena, Pomona, Redlands, BANK THE FIRST NATIONAL CITY BANK department 30 BROAD Angeles 17, California of INVESTMENT bond So. Hope Street, Los DISTRIBUTORS HAnover 2-3700 CHEMICAL Lester, Ryons & Co. MUNICIPAL OF NEW YORK Burnhamand Company ST.,N.Y. MEMBERS NEW VORK AND AMERICAN STOCK EXCHANOES NEW YORK 5. N. Y. • 014-1400 COBURNHAM TELETVPS NV 1-22B2 15 BROAD STREET, CABLE: Bond Dept. Teletype: NY 1-708 r San . Chase Manhattan Inquiries Invited on Southern California Securities New York BANK Correspondent—Pershing Sc Co. —4 Underwriter * • • Distributor Dealer \y. ' Net - 1 To T. L.Watson & Co. New York Stock Exchange -• •4 ^Oilthwedt COMPANY "1 PALLAS t.sVs ' . n m.'i • PERTH AMBOY CANADIAN BONDS & STOCKS MEMBERS NEW YQRK STOCK EXCHANGE L NORTH LA SALLE ST CHICAGO 415 BROADWAY ' YEW YORK r r* *.--V - - ■ California.. Municipals Municipal Bend Teletype NY 1-2270 MONTREAL AND TORONTO * v. Department DoMmotTi Securities i; Goodbody & Co. , V. BRIDGEPORT ; OIRECT WIRES TO STREET NEW YORK 4, N. Y. ; > FIRST Exchange /Ot**0 Maintained and Brokers CANADIAN DEPARTMENT ' 25 BROAD Banks argus corp., ltd. Members t; Markets 1832 ESTABLISHED American Stock Active Dealers, 40ExcbangePUce,NewYork5,N.Y. Teletype NY 4-702-3 Whitehall 4-8161 ol Ainrvu'U aoo MONTGOMERY STREET» SAN FRANCISCO 20, CALIFORNIA . | The Commercial and Financial Chronicle 2 (1766) r<-"' The Banks, Brokers, Dealers only For participate and give their important to large and experi¬ trading department you, our enced you MERRITT F. BEAL the P. McDermott & Co. Members: New York Stock Exchange, private wire The American News and of improvements American much Established 1920 Member Exchange BOSTON Private of Net the and Specialists in no of those no c^KAnn 1958 comparable The fig- with as were to $1.25 heavy a 120 REctor in share, deficit for per STOCKS For ... Call Beal ble pre¬ improvement. The results were a share against common deficit of $4.93 a Securities * Atlas earnings of $0.51 __ * Sewing- Centers founded 11- of New share in the store in Jacksonville, Fla. write Company York, Inc. Affiliate of Yamaichi Securities Co., Ltd. was Tokyo, Japan with-.a single years ago or Yamaichi tributing ; information current Centers is because its growth is developed by adding new dis- . corresponding quarter of 1957. The write-offs huge It eliminations and company's growth for many steadily upward but in few years parts of the business were proving to be un¬ profitable and a decision was finally reached by the management to eliminate all unprofitable units, This was accomplished by a meat- Brokers Today, &. Investment Bankers 111 Broadway, N.Y. 6 COrttandt 1-5880 the company operates through 50 2-7815 operation 1957 of itable units NEW YORK 5, N. Y. for more than magazines,^;and';"6n .radio 'Salesmen^ are "not per- papers, and we is 37 Wall TV. proportion-, ^tted In the kind of market are news¬ to "cold-canvass." difference,'in selling quite Underwriters—Distributors |3y expecting" prospective eustomto° much to expect a- genuine ers to voluntarily come into a growth stock, particularly among store in contrast, to va salesman the service issues, to sell at 25 making a house call on a prospect year times earnings, which in the case wh0 has evidenced interest in share of American, News may. be ;well yoUr product. Each salesman is the a abo.ye ^3 0"™951,eari >ngs' and higher for 1959. Dealers Investment Securities Canadian and Domestic1 given about five leads to contact The price-earn- each day and is expected to report on them. | The conversion rate * of sively, efficiently, and broadened in£s J73*]0 is definitely on the as expansion was possible and march because of the scarcity leads to sales is high with Atlas. « profitable, with such expansion factor that has entered the marproducts handled by-Atlas are continuing on even a wider scale, ket as a result of fund buying on manufactured, by others from patAlthough the company, through a tremendous scale, and the tax ented designs : owned > by Atlas, subsidiaries, does some manufac- factor that prevents profit taking Sewing machines are made in Ja¬ rring, such as book matches, it is by important interests, pan, the largest center of sewing primarily a service organization, This is ;a very complicated or- maghine manufacture in the world operating restaurants, newsstands, ganization and the outlook for todav ana vannrm Hpanpr? nro and checking facilities,' retailing further growth under brilliantly • SUGAR Street, New York 5, K T. There presently witnessing, it is not are operated inten- were generated by adve'rtlsihgjh indefinitely and that earnings may be expected to ately. reported. The remaining prof- was STREET and a-deficit of $6.67 salesmen;: tLeads for "saleSifien. company increase last opinion that the sales should continue expand net years was the my this to The Exchange Exchange is of 1957. axe WALL _ branch offices our JAPANESE The reason I like Atlss Sowing the a in LAMBORN & CO., Inc. 99 Mobile, Ala. Direct wires to . BROADWAY, NEW YORK 5 TEL. a be developed by related companies increase in the foregoing figures" company outlets located in the demonstrates the remarkable man- Southern part of the United yield on current prices of aboutwggerial ability that has been cen- States, the West ancf. Midwest, 53/2%. The book value, at last re- tered on the diversified activities Each center is the headquarters for an average number : of 17 ports, was about $32 a share after of this company. Members Stock Growth in NY 1-1557 New Orleans, La.-Birmingham, Ala. stock it is paying dividends at the of $1.60 annually, giving a McDonnell & fo. Stock of by rate Since 1917 American can financed first period for common'stock. New York earnings. , $96,- stock, its sole capital obli¬ gation being 735,780 shares of this" Members New York Stock Exchange Members American Stock Exchange tributing units for the company's products. So called "chain stores" come in this last group. " .a^oui1n5 ?i cornparec* the same Ccirninfis added, units lor its products Is a visible and sure 1958, the company's net sales ap- method to develop growth if manproximated $25,391,000 compared agemerit is capable . . . and manto $19,928,000 for the same quar- agement has evidenced itself as ter last year, which shows a notabeing capable. '• of On Steiner, Rouse & Co. hy the expenditure of cash or the exchange of stock or both. And, glowth of a company can be attained by adding additional dis- last year. For the quarter ended Sept. 30, same ferred SCRIP company company we note that months of 1958, nine r compared Merritt F. are acquisition 1957, still for 645,000 o & Van V7* 19 Rector St., New York 8, N. Y« products n sa bonds — 1 in company While all not are for the first and remains it has ^ HAnover 2-0700 the titl m $100 million. ures tion setup is simplicity, . Sewing Centers count Executive, Mason Bro¬ thers, Oakland, Calif. (Page 2) Havana, the initial for nine months acme Philadel- hut in 1957,. because of the elimination of the wholesale periodical -sa i? 1957 the B o ught—S old—Quoted ^ ^ Atlas £^56 w^_^_ ground $172 million, Company, so unprofitable familiar about the RIGHTS Beal, Analyst, Peter P. & Co., New York ^ affairs company. The corpora- Principal Cities Louisiana Company—Mer- McDermott - shop was the Havana at year sales old SAN FRANCISCO • to Wires in this only with the CHICAGO • PHILADELPHIA * 5 Teletype NY 1-40 4-2300 News foreign venture. changes many News elimination were 120 Broadway, New York WOrth ' " F. . expansion into profitable fields, that it would hardly be recognized by those who Corporation Stock ritt book and Hilton Hotel in units and such New York Hanseatic Associate so tobacco opened Company There have been the in Alabama & Midgley, Head Analyst and Ac¬ A Exchange and Chicago Board of Trade getting the complete cover¬ age you need in your Overthe-Counter problems. newsstands P ^a American Stock system, plus a wide range of contacts, assure you of American American contracts have been signed to run Analyst, Peter A nationwide Participants and City. (Page-2)- faster. Thursday, October 30, 1958 . Their Selections particular security* a (The articles contained in this forum are not intended to-ke, aer ar£ they to be regarded, as an offer to sell the securities discussed.) ' reach the OTC markets you need — help can for favoring reasons . This Week's Forum A contmnons forum In which, each week, a different group of experts ii the inyestment and advisory field from all sections of the country Try "HANSEATIC" When time is Security I Like Best . • Raw — Refined — Liquid IN JAPAN . Exports—Imports—Futures periodicals, books,1 magazines, tobaccos, and foods in railway, bus and air terminals, | stores, office buildings; steamships, piers, public parks, golf DIgby 4-2727 newspapers, etc. Among other services for the traveling public in railroad sta¬ £"d ^ntes folio, V . ' . VAN V / i .... ' V. MIDGLEY Head Analyst and Account Executive Mason Brothers, Oakland, Calif. ' ; the Atlas Sewing Machine and the Atlas * Vacuum Cleaner* carry the v ; Atlas Sewing Centers • ' , J>PB°Ial .°C??od HoU?e&plr^ MaSazlne- In tmycarries 9»mt aon, this endorsement v u Bassett Furniture Industries economy as a whole. , Nomura Securities Co., Ltd. 61 Broadway, New York 6» N. Y. Telephone:? BOwlingr Green 9-0187 tions, airports, subways, bus and ; weight .'with'1 buyers bf ;theii? ferry terminals, there are boot¬ There is a peculiar psychology blacks,' drug stores, - snack bars, ,I>rP^uc^In addition to the 50 presently* vending machines, cobbler shops, surrounding purchases made by greeting cards, game rooms, and a people. When one buys an auto-■ ■company- owned ; and " operated broad variety of small businesses mobile, a TV set, American Furniture for our Monthly Stock Digest, and our other reports that give you a pretty clear picture of the Japanese and demonstrated management seems riar^ Gf atg Britain Conn to me to justify puttmgtWs stock Manufacturers of the well known u\.a,1y up-to-date growth pent- ,ine of "Universal» products,Both courses, Trading Interest In Frarv Write This is* not an offer' or solicitation for , orders for any particular securities , Life Insurance Co. of Va. abashing ma- and profitable. necessary Commonwealth Natural Gas ! Branches other located- in Rocke¬ are feller Activities LYNCHBURG, VA. -5-2527— Private Wire to New know that hppnmp TWX LY 77 ice York plant" City for also include food, article, by serv¬ eating places in 32 states and including such luxurious places as the Rain¬ bow Room in Rockefeller Center". For the Eight".Sayarin dining rooms and six gift corners are operated along the New York Thru way, and eight restaurants have been or are about !•»WEST VIRGINIA to be opened on the VIRGINIA ticut Thruway. new this the company established six NORTH CAROLI taurants SOUTH CAROLIN the on the year res- right-of-way Kansas Turnpike. The Van of V. Midgiey ypu dayme» is •Ci>rried inventory,, is ikePt an6 accounting and collect i pc«5 to- become imm i edia Jions are has come, very can m^ms CO :j . . sold "on an Over-the-counter r brb^uct? installment basis about 12 to 15 months periodSk for 44 Years The present rate of expansion is programmed for about three years or eventually so, at least. In my opinion, if on6 Abdut -85% ' of *Atlas% are tely i. )^ore valuable market-wise | WOf made), Atlas has granted invest dn advance indicating an eventual a growth situation, one iA of 85 company outlets ait the which it is* easily recognizable a ? period: . Salesmen per 'growth exists, you can expect the jOutlet wilb be moved"up to 20 **0 »vhere it is understood to be oper- investment to become more Valoutlet .\yitna sales quota of : ating thirty bowling alleys-«-a first uable, everything else being equal. j$25 to $30 thousand per man per f: - venture int^ a very profitable side I Growth id a company; can'-'b^j?®?1:*-' arithmetic bring? ^ company , they day expects, them I Connec- Early se^ a Place from which salesoperate, direction 'of sales-! valuable,«not-' distribution frapehises .to-42 dealwithstanding ,erf ;wh° sellI.Atlas productsjundee there is the selling, jurisdiction of ; the coin-} use value not PalW- '- New company' 'operated m easured; Centers are being added at the However with rate; of about one each month, the purchase which adds to gross, business and of stocks ' oe consequently net. Herein lies part real estate one bf th^ company's growth potential! hospitals, offices, and "in feeding. Early this year the company had about 300 MUNICIPAL BONDS totearn ing' but men Center, New York, and Penn Center, Philadelphia, and in Hilton, Sheraton and other hotels. STRADER and COMPANY, Inc. LD 39 usef ul V1 active in connection with the new Penn Center in Philadelphia, *1 - r. r i RICHMOND, VIRGINIA - line — and ™ we are informed that J^ " . developed internally wherein $ new Continued on page 2% :•' Eamuhe* 48 Froat Street Chicago • mi;/ NearYerk4,II.Y. ium wwmmoo\ Volume 183 Number 5790 . The Commercial and Financial Chronicle . . (1767) T ,7 r-. .* Ail , *:■ v ' '.'r \ .. ' t.S-r +s~% -/'J »* 11 i f> i » yl - t »i *1 i - ' , e* • INDEX Appraisal of Dow-Iones [iCHTtnsM B.& Articles and News Page mmam Today's Investment Program—Roger F. Murray By NICHOLAS MOLODOVSKY* Put White, Weld & Co., Members, New York Stock Exchange An After showing why the price-earnings ratio approach may be inadequate, stock: market economist discusses other methods de valuation of market a Finds stocks. common that investors Your on of Dow-Jones —Nicholas Moiodovsky , WITCHCRAFT Specs—Joseph Mosby: Hornori—_———_,j__ Cover Appraisal Industrial When we're Average _4_—, — and ' not Halloween, on Hong Kong: Funnel for Communist-Economic Aggression A. Wilfred May ^ create AKD COMPANY mmmrnrntrnmmmmmK- Cover flying brooms take obsoletes we 'em into cash! turn .___ value based market value in turn on earning average moves in the and that power direction of Free World Progress and American Responsibilities intrinsic an / value. Projections of the latter suggest that even at its present high level the Dow average is still reasonably priced. T „ 3 i t ■ Philip . —A. During most of 1958, prices and \ fice.: T hem ood predominant earnings of common stocks have among these men was described beeri moving in opposite direc¬ by the capition "Market Baffles tions. Divergencies in their rela- Tape Watchers." ; ■ ; , - < Obsolete Securities Dept. Cortney 99 Current Bond Market Trends and Bond Financing Procedures . B. WALL STREET, NEW YORK Telephone: WHitehall 4-6551 Hager, Jr ;__ . tive action not an Two are unus- ing, at; develophient. This how- e v e r, they have been so striking that many invest-" o rs July high to its October nomic low, the Dow Nicholas Molodovaky in In —Leo for A crescendo of doubts ket is not not only Ira entire decline but impressive an unprecedented the ; established, by margin, new and highs. Rarely has of progress the such powerful a bull market been looked upon by so with so much distrust. Throughout the 12 months of its many duration to date, the most repre¬ sentative opinion was that stock was accom¬ panying rising prices. Last August, as the D J I A was reaching again toward its 1957 high, a financial writer, survey¬ ing the collapsing earnings re¬ ported for the first two quarters,commented Jn a leading newspa-. "the securities markets caught in one of the most con¬ fusing economic experiences. of that per the what as history; For the moment, tape is spinning out ticker _'a tale told by —C. an idiot, full of fury, signifying noth¬ ing-. The babel of prices com¬ ing from the securities ticker is so incongruous that there is little . . of extravagance in the statement stocks Even less / This wonderment and sense of unreality continue to pervade boardrooms and research staffs alike despite the fact that business is improving and that earnings should start reflecting this change better. for the line in of - the one financial read a For of I Martindell. * Recessions—Milton C. Securities—Jackson and Lightner__ 20 J.F.Reilly&Co.,Inc. Members Salt Lake the ; —:C1 arence.Manion The ; 20 Growing Opportunities in;Property —Roy F. Cardinal Roncalli Is New John XXin__ is . ' ' Yes, hut be . of .? . * t'f Two (Boxed) • . Direct wires to Denver St : 10 ■ - - i ' - Board's make in if it than did Warning Indicator Hoped for in 1__L_ Method Pacific Uranium Chuck Full O'Nuts* • See It (Editorial)—— Cover ___ Bank and Insurance Stocks road-blocks *An address by Mr. Moiodovsky before the Association of Customers Brokers, October 27, 1958. Opinions expressed in this talk are the speaker's own end not necessarily those of White, Weld & Co. T t ■ 48 Singer, Bean 8 Dealer-Broker Investment Recommendations 8 Eirtzig: "Is Gold Superfluous?^ v - 29 Coming Events in the Investment Field an 46 not Direct Wires San Franeisco —! Mutual Funds 38 _______ 12 — N. Y. •- to Los Angeles . Philadelphia NSTA Notes inc. 40 Exchange Place, Teletype NY 1-1825 & 1-4844 17 Indications of Current Business Activity Mackie, 8c HA 2-9000 12 From Washington Ahead of the News—Carlisle Bargeron Chicago Dallas ' ' " News About Banks and Bankers. 22 , Our Reporter on Governments.— 39 Our Reporter's Report the blueprint. of broader signifit mental ■ ' Business Man's Bookshelf—J - 45 over sake • - Prospectus upon request As We attempt at expressing value, i.e., its capital go - . Regular Featurer .— .—J— „ Syntex Corp. 24 '1. Public Utility Securities 47 Railroad Securities ! Seaboard Life - ' ^ i • 46 Prospective Security Offerings 44 Insurance "A" * i • were Salesman's Corner Securities prominent among the obstacles which prevented investors from accepting, without protest, the reality of soaring prices..' "L;. One difficulty was the unusual accompanied by photographs in a brokerage of- City Champion Spark Plug ap¬ sense no more Early Ratio Securities Now in Registration— customers Lake Duffy-Mott Co.* • / Capital-Output Rules/' no ;. com¬ as vacuum * Top Anti-trust Legal Experts to Address Metropolitan Conference shall do so by means of J I A-^the most popular of Two Salt * 16 ' c 16 — Economists Stock Yields and Bond Yields widely xhe article f ' Teletype: JCY 1160 12 as • DIgby 4-4970 '• 21 Pope: Will Reign ' Exchange PL, Jersey City Improvement Loans ; Cooke 1 '• ' ^ measuring yardsticks of com¬ mon stock prices. head¬ City Stock Exeh. ' . all most pages, ~ and cance, we r was Meany Oceans—Roger W. Babson 19 . well to be request on 15 - that no architectural .•designexists. for one of the tallest struc¬ tures of national wealth, it might" the D month Prospectuses Balderston Before accepting the find¬ ing _ 14 Keep Government Limited in the Interest of Freedom an stock's . last company, inc. 13 Spahr • "Many Are Mystified by Con¬ tinued Rise of Stock Prices" late Canby than two weeks could would worth. Bennett * \ .. irrelevant, number •*. asserted value a stock a F. States—-Walter E. Inflation praising common 'stocks is frus¬ trating and dangerous. The price and United The Wealth of Nations Lies in the the title of a financial col¬ proclaimed that. "Booming the investment grade com¬ is really worth." so Market Defies All of the 18 *„ denying the impact no as represent an it as has been Such duffy-mott 18 from the pricing many" people be¬ of what stock reflection .of pletely, absent that, today in Wall Street nobody seems to have any definite idea mon a true that value umn in Politics on the prices of stocks; certainly an important factor in the clanging relation of stock and bond-yields. But can it be lieve? 11 Unemployment, the Cold War and Election Y'ear Claims It is and sound much speculations There is ago, __i—i_ i Taking Another Look at Consumer-Credit Controls of inflation to be best describable seems so quiet desperation." of corporation 10 . feverish are recent . Cobleigh— Power—Sen. Wallace was . U. Science It : apparent points. retraced — Prosperity Without Inflation Through Sound Government this prices had lost all contact with reasonable measure of value. hundred one o'nuts 60's __ •- any lost since of the Fabulous ' anomaly, the editorial typical of present thinking. In addition to improving business, the "impetus for all this buying is the fear—or expectation—of in¬ flation. The reason why people are willing to pay more dollars for an equity than they would by any traditional standard is a wide¬ spread feeling that the dollars used to pay for it will not for very long be worth what they are today The present stock mar¬ 1957 has Cherne —George account chock full Dictaphone Corporation: Belt Line Conveyor of Words judgment." to — little makes present prices stock buy- trying —L___. • — Are .We Now in the Foothills ; are not only discounting the improved corporate earnings just ahead, which the market would normally do, but all the foresee¬ able gains for some time to come. It has been pretty hard to justify this market boom by sound eco¬ its average market At Financing , Role—Robert.C. Porter— v ers were shocked .and bewildered. From J an sense. S, Ljneii- V Financing the Replacement Fleet and the Investment Banker's days prior to this report¬ booming experi¬ enced —John editorial of a well known financial journal, entitled "Puzzle., at Broad and Wall,"' stated "that; "if you look, at the usual statis¬ tics—the".relationship of earnings to stock prices, for example—the U time, The Broadening Scope of Municipal The Market y, . 23 _ and You—By Wallace Streete— Altamil Corp. 1 16 — Hie Security I Like Best | , McLean Industries 2 ! " Continued on page The State of Trade and Industry. 30 Washington and You 5 48 AIsco, Inc. William B. Dane Epsco, Inc. * l Publish** For many years we DDrrrDDFIV CTflPHC have mClLHHUJ 0 I UUItO specialized in ' ' ' - ' * ^ * * > Copyright 1958 by Company Spencer Trask & Co. New York Stock 25. 1942, at the post office at Nes York, N. Y., under the Act of March 8,187S *ry Reg B. U 8, Patent Office DANA COMPANY, Publishers 25 Park Plaee, New Yerk 7, N. REeter 'Members Reentered as secona-class matter Febru ' - ' ' Weekly flNANCIAL CHRONICLE WILLIAM f •*" Twice Tho COMMERCIAL and 2-9570 . ,i „ HERBERT D. SEIBERT, Editor & PubllBlief WILLIAM BANA 8BIBEBT. President Exchange r • - ' "■ < Subscrlptlonb Possessions, . , , in United States, U. Territories and Members Union, $65.00/per year, m V. FRANKEL & CO 8 o Pan-American i Dominion of Canada, Other Countries. $72.00 $68.00 per per to INCORPORA1ED yea? 39 BROADWAY,JEW YORK I year.. ' V . .25 tfROAD ST., NEW YORK 4, N. Y. y Thursday, October 30, 1958 i ) * - • -• * CI ; ; 1.1 i ; , , other Publicationa . ^ Every Thursday (general news and adrertislhg Issue* and every Monday-(complete statistieal issus asarket quotation '$45.00 per ydai (Foreign Postage extra records, corporation new$, bank clearings ( Note—On account ol the fluctuations li state and pity news; etc i / c< ' l . >. ■> • the rate of exchange, remittances fo Other Offices: .135 8outh La Salle 8t foreigi subscription aao aOv^r*tsement . - „ TELEPHONE HAnover 24300_ Boston Albany v . ."-: /-.Nashville. - , . - " J Chicago Scbengeetady , TELETYPE NY 1-5 , ^ , / - Glens Falls . '■ •' WdrsesUr... 3, XH (Telephone STato 2-4518) , , v . WHitehall 3.3950 1 !; ■ , - Ohicage i Subscription Rates ' « Y. 9576 to \ must ho made in New Tort funds. Teletype'NY 1-4040 St 4041 Direct Wire to PHILADELPHIA ' 4 The Commercial and Financial Chronicle (1763) In the Hong Kong—Funnel for of the over-all trade case thetic to them. through Hong Kong. Depicts techniques of price cutting and dumping, and the suiting of trade policies to political aims. Concludes the Commu¬ nists' economic aggression is even more important and decisive than "Quemoy." be ; . white the by the Formosans. the China at Maneuvering: capture a market initially, and perhaps to unbalance it for political purposes, the Chinese will engage in the most ruthless price- without cutting, cost declined by the substantial total of brick. safely canned One of 10 de¬ stanced in the brands// / / about 100 food ■ These achievements by. Commu- shops which J hist" China for. the. since early | transcend economic return, includ¬ 1957 have ing the conventional striving lpr been exclu¬ far consumer theirs. items in . * sively distrib¬ uting items Wiltred produced the on May Coramu- nist China mainland, this institu- tion is remarkable variety and chandise as to both the pricing of the offered. In one mer- show window are attractively displayed bright yarns, sweaters and other woolen goods,, in another, shoes, sneakers and bedroom slippers; silk and woolen piece goods in flashy colors; in another a display of ivory carvings; and a fourth window shows a complete line of radios and record players. Inside, the shopper is offered men's colored nylon at 24 cents foreign exchangeAyj^eh is .nonnal this Switzerland-igh" free .ex¬ change market. Political motiva¬ tion, apart from the economic, is evident in various ways. The price ticket savings, of course, create vast consumer goodwill.- Again, the constant shipment* of new products, not producible in large quantities but for prestige purposes, as tape recorders, bicycles, in to 1957;:- Refined This annual rate of has been in¬ ; ; 50,000 cur¬ rently. .Red: China's coal exports here, at 164,000 tons in 1957, were up 900% over the 1955 level, severely hurting Japanese and Indian exporters. '/ ; • : ■ Sabotaging Japan automobiles in the amount of 10 way of impressing the consumerprestige-wise—and affording good propaganda mileage, elastic-top nylon socks Also highlighting the political her grey^oods requirements, with practicMly "nothing coming from China, the Communists sup¬ 84%,- and the Japanese only ply In the textile area here, the state trading companies from the Com¬ (in the dollar equivalent of the Hong Kong price tag); pure silk hose at 20 cents; white motivation, is the situation re¬ fleeted in our cited differentials in sugar. The successive price cuts munist mainland have consistently and colored shirts, cellophanewrapped, at $1.70 versus $4.80 for their U. S. counterparts in other in sugar here by Communist China have occurred while siie has been sary stores; ball point pens (which this can testify, really work!) writer at 20 cents; large electric fans at $2.50; strikingly colored thermos bottles area at $1.50, etc. In the shoe particularly, many of the lo- cal non-Communists me as to testified to the quality-equivalent price advantage in the Communist stores. shoes* while are in Best are ment of the Formosans as well as for the future capture of the business market. Quite varied the efforts are en- gaged in to impress the community of political fence-sitters and anticommunists. For their edification, competition have manipulated undermine all by neces¬ the prices, to Japanese trade— while severely rationing the grey goods in their home same market. In addition to the price tag weapon, the Reds broadly use credit terms as a wedge—driving through as long as two-year ma¬ turities, against a mere two ' to three months by the Hong Kong and Japanese firms. nists' Bank of The Commu¬ China, sometimes Communist China's cement com¬ ing into this market has risen by 28% over last year,' As the- direct . in the newest cars, and Hungary, the mainlanders obtained via Mos- from terms on long-term capital, drastically undersold by cow. And on the latest October 1 loans to letters of credit. China Shop group is a long Revolution The crucial effect of this Day, the local citizenry list of miscellaneous consumer ltems was vividly shown, through a dis- offensive directly on, the trade Hong story of trade aggres¬ sion has been wreaking havoc here in wheat flour, paper, and rubber tires; each of these industries feel¬ ing the dire effect, more and more, Communist China's' dumping superaggressive trade other efforts. '/ - .,. , Red China is able to sell at cut¬ throat prices her because, along with abundance she natural of has with re¬ state-subsidized state - controlled prices and free of criteria. This gives her complete freedom of ac¬ tion her in trade maneuverings. her export trading increased by its channeling through state-corttrolled trading Likewise is entities. This is helpful to her in in addition to pricing. For example, it enables their dumping of goods, even in the face of de¬ ways sire of the distributor or tomer, by their foisting distributors quotas of shipments of the same items, - often the on cus¬ to their successive or kindred choking them with surpluses—all adding to the flood¬ ing of the market. .%'//V;. •• This state cilitates in Malaya and Singapore, operations, production and earnings of the Green Island Ce¬ off control - likewise far the by sporadic turning the of on and Or again,, the be done to gain in a community. screws. ment Company, Hong Kong's pro¬ ducer,- have/ become painfully price-cutting reduced. This motive would apply here in Since the the local beginning of this Green has been forced to three times Chinese metric to Company reduce its price come product ton). year Island closer to (now And $17 China the per official may general control Hong Kong, which does not afford Red China political representa¬ tion.. Dumping may also be used to undermine tor, a against as tionalist political competi¬ the Chinese Na¬ Formosans. The latter's sources reveal that she intends to Takoo double their has been forced to mark down the plant plans output. to A double Canton its export volume of 300,000. tons, and an¬ other new plant in Ying Tak in Kwantung Province, when com¬ pleted, is scheduled to produce 700,000 tons annually. prices Sugar of again this keen its the In Red food Canned goods is painfully from products on Company again Cold War and account of the Canton. Technique Here While Communist China's trade is ruthless generally, largely a sideswiping operation, because she wants to keep her in both political and economic business. Hong Kong provides these, among other prac¬ tical advantages— towards Hong Kong it is too, area, aggression Refining year aggression Food Invasion . competition from The the severe. Communist (1) Generally she is like a ten¬ who, for the/landlord, does own decorating at his own notably Singapore. A leading local cannery merchant complains that ant similar his have compete its British opposite num¬ bers in a variety of fields, ranging in¬ nied in both Hong Kong and Southeast Asia, particu¬ West- which manufactured Czechoslovakia, this on v „• larly oer-r dumping tral bank, in dependent same the result of Communist China's sistent freight come .The prompt and " adept price cutting and dumping of par¬ ticular items in anticipation of competitors' shipments of the product. This may be accompa¬ cheaper, and half the price of those offered the non-Communist shops, goods Likewise the coun-f midst imports of sneakers 25% rubber boots Hence, it is evident that the price-cutting has been done for political harass- the 10-15%, and further when the functioning in the role of a cen-r China have flooded the markets ern-type of 60-ton aluminum tank continually tries to out- here, as well as Southeast Asia, quality men's leather about net importer of sugar. a underquoted fact exports to these tries took place now 2%. In cement,:: no 1956 wholly dustry). power the products, and at higher prices. To date this year, the quantity of over Epitomizing the sabotaging of sewing machines, a replica of the Taiwan — whereas in 1953 Japan Parker 51 pen (at.$3), and even supplied ^ to- Hong Kong 32% of promised by the end of the year, has served as another important first only 3,000 tons in 1955, went up 16,000 tons; In 1&57 and to an is industries of several food case Hong Kong. lactured receipts from the mainland -sugar at. in of Aberdeen wholesale market re¬ . yards selling (whose entire colorful community sources ; In cement noticeably, Red China has been conducting f the most Typical is the record of its cot¬ ruthless four - cornered warfare ton cloth imports into Hong Kong.'. with Japan, Hong Kong, and For¬ Totaling 8 million, .yards in 1954,mosa; This she', began in 1956, they have steadily. grown to 100 prior to which time she had manu-; million local the ■ Propaganda Mileage Rung Up and to factor; and with sporadic mosa of relation newals of this in the midst of price maintenance when a market is 360 HK dollars, Communist China Commies' the Cantonese fish at 50% of the Hong and To Kingdom, Japan, United States and Belgium all Thursday, October 30, 1958 . while, of Price over-all from the United partment stores listing of merchants who buy from implica¬ product. And the same with actually increased her shipment goods; Commie tomato by $126 million. In fact. China has juice is 12 cents versus 17 cents been the only one of the 11 ex¬ for the corresponding size of porting countries here to score a gain this year. r/ American and other ( v // ;; triguing 75' by 125' four-story structure side-swiping hefty exportimport record for the first eight months of this year which shows that while Hong Kong's imports 6V2 cents per pound versus 8 cents on the next counter for the For¬ from Communist in the desire to seen . Kong fish prices has crippled the camphor products; with the black¬ Kong's lighted Products Co. sugar ' trouble, host of significant a out * of unsympa¬ impress "neutral" foreigners with new products; in the evident ef¬ forts to beating the Formosa po¬ litical opposition in sugar, hogs, Quantitatively, the progress achieved by Red China is high¬ inger Street reveals newly arrived in¬ most are tions. ping center of this colorful cosmopolitan community, is the China an the has KONG—Outstanding in Personal inspection at the large Vouex Road, humming shop- Wa Cheong grocery store on Pot- store,- causing Hong HONG Des trading are The tex¬ picture reveals that while un¬ dercutting of Japan and India throughout Southeast Asia may economic warfare is demonstrated in and to* * put Other manifestations of political tile which Communist China's in ways - by the Communists in and around Hong Kong are a broadly signifi¬ cant indicator * of what the non- By A. WILFRED MAY May lists various cutting- -prices business those who Communist world faces. Mr. in / picture, the techniques practiced . expense. mainland canned goods captured the local market at prices one-third of his. Red China's biggest canned food Kwantung Cannery plant, of the (2) She is as convenient a "Switzerland," through whose free running- the gamut from plastic containers to sewing machines to umbrellas. ' ' /' v ' Kong manufacturers,-as depicted f. P Y Communist celebiation to me by the Secretary of the Hong Kong Cotton Spinners As¬ flags, how control of the "neutral" ; Similar price differentials are clearly manifested in the food area, Chamber of Commerce has been sociation taken important mills, Mr. Charles Silas, has been to reduce local profits by 20-25%, With cuts in some pro¬ of canned fruits every year. Large medium for competing shipments of livestock of duction rates by 50%, and initiat¬ day. ing of China's commercial agent in Hong , , . , . over. .. and director of several some local unemployment. weaving and knitting plants Canton port foreign exchange may be ac¬ quired. In the acquisition of ex¬ change from private overseas trade alone to turn out 150 million tons sources, Hong Kong provides the went into which also operation will enable that recently, district getting large amounts directly to them come from Canton every through their Bank of China, NG Fung Hong, Communist sometimes paid for at arbitrary remittances rates quite unfair to the sender. Kong for foodstuffs, has constantly (3) Through their retail shops doing business here; the gaining of exchange as long as Particularly dractic price-cut¬ they keep ting in this market has taken place head of hogs stored in the Gov¬ going here/ ••'/ in (4) In addition to "providing a building gravel and stones, ernment's slaughter house in Kenwhere the price for-the goods de¬ nefy Town, for the supplying of "window" on the capitalist world livered has been no higher than Hong Kong's three million popu¬ in the political avenues, it affords > ; • r know-how in the trade the normal freight charge from lation. spheres, The Red's pricing strategy has Canton here. ."."/So some measure of Communist These Communist maneuvers been clever and effective, with co-existence with Hong Kong will may be characterized as politically their success great in manipulat¬ no doubt continue indefinitely. motivated since the more ruthless ing the market so that no im¬ Nevertheless, the Communists' ag¬ grasping for control of the mar¬ porter dares to bring in large gression of the economic kind ket, particularly in textiles, has imports of livestock from other stemmed from the break with the sources, with any chance of suc¬ against Hong Kong and Southeast Some Like have been forced to shut down. on hand a stock of 2,000 to 3,000 head of cattle and to 40,000 to 50,000 A a block? Nisi's Japanese Government; and as at least "quasi-dumping" since Call... the price and credit sacrifices have been made concurrently with their domestic Marketing Department Merrill Lynch, Pierce, Fenner 70 PINE STREET .... Offices in 112 Cities shortages. Clearly, Com¬ munist China has been political & Smith NEW YORK 5, N. Y. aims via cessfully competing with the Com¬ munists and making a profit. In another food ruthless trade the Chinese Communists have shown in ferent of furthering area manner living ENCE." in a dif¬ their strange ways "CO-EXIST¬ Over recent months they Political strategy as serious, if not that manifested in as obvious, the as recurrent political crises in Quemoy! sweet have been sabotaging the local is fishing industry, shooting up boats likewise manifested in their favor¬ of the small helpless fishermen—' the represented purpose being to ing of merchants who support get them to join the Communist them politically (the USSR's old cooperatives, which they are finan¬ Amtorg technique), and conversely cially incapable of doing. Mean¬ aggression. Asia will continue, as a threat just S. K. Phillips, 5r. /Samuel K. Phillips, Sr., passed away Oct. 21 at the age of 75. Mr. Phillips, a Governor of the Phila¬ delphia-Baltimore Stock Exchange, was senior partner of **aimiel K. * Phillips & Co., Philadelphia. Volume Number 5790 .'. 188 . The Commercial and Financial Chronicle (1769) • 5 tory pacC'/that it calf' cons ihiprove the standstot bf living of the people, and that the rewards to the people and the distribution . (f^ The . FreeWorld Progress and Steel Production Electric Output ;v; •'' State of Trade ■ Carloadings Retail 1 of national ! Trade ' Auto Production Industry Business Failures The in changeover to 1959 model cars ~ occasioned by At the same time it has made the car makers reluctant to place orders in adequate quantities for steel and materials pending the settlement of these labor disputes. - other ? > The present shortage all-out effort by the r of cars in dealers' hands will necessitate an manufacturers to step up production to supply them with adequate stocks and in turn will Call for the placing of orders for steel and pther materials in greater quantities from' now on. This building of inventories by the auto industry will provide further stimulus to the recovery by boosting produc¬ tion and jobs not only in the steel industry, but in other lines as , First and of Our survival *. and, whether we: like it or hot, * that a In quarters, it is felt with the introduction of the some new \ The substantial increase in the third and corporate profits is not yet available, the agency commented; "it is clear that the larger part of the 1957-58 decline in national income has now been recovered." i ; I v The" department declared that 'second quarter national income . - . depends a' great deal orf the degree of from the $350,600,000,000 annual rate for the first quarter, the low of the recession. However, the second quarter rate was still $16,300,000,000 below the high annual rate of $368,700,000,000 in responsibility nd a ; V n e s of 1957. difficult annual rate of an < But the as a ■ . . ■. expansion since mid-year for the rest of the whole "has undoubtedly brought about a wni eh Am significant improve¬ 'we is that we shoulit prevent abnormal, or ex¬ aggerated swings of rihe 'business ; And up , * 1 e International come and ac¬ in to miniachievements simply be influenced bv material . poorest production year since time in the past, free enterprise is on trial as an effi¬ cient form of organization. As you are aware, Mr. Khruschev stated only six' months ago the At thd time, it added; steelmakers, are looking ahead to despite the possibility of a strike over new contact demands. Carefully worked out estimates are that, outputy in 1959 will hit 110,000,000 tons. This would be the fifth best year • same the field of peaceful • lower, the mills 78,000,000 tons. ; : • operated systems .are inseparable. . If wq cannot.establish the superionty,of our economic : system, many na- In -1949, when capacity was much at 81% of capacity and turned out - . tions . Sheet strip demand has all of ous that demand would level One buyer for an automotive United States car makers will fall far short of their October be . ;Continued on page 36 _*» • • • l "Responsibilities of Affairs." soundness of the dollar. We should not hesitate to shout loudly as we possibly can that dollar has become an unsound currency. If is up. to us to make as our inflation,^ve been^made to this fsf, rasuItiag dome9tic evils of asc^ IS,,7^3 inflation are quite obvious; but the a Jrs their influence and power are used damage: of dnflationary policies to correct defects. anu^hortcqm- throughout the worldi to unity and x0UI prbgtess are even-worse. Exchange PO""CS oi .limerent in controls; I import ^quotas, impeditne tree enterprise system. ... : mentsvtq international trade, are Business Must Meet the Challenge dirwtly attribUteble to ir^sponsif : • The businessman s unique role be as the most active guardian of the free market economy, which is being challenged today as never before. To prove its superiority the free market economy must demonstrate that it can grow and innovate at a satisfacshould bleinflationary policies. The;unity of Europe; be it said- in passing, jviii remain a chimera unless lot of our /*' free The rency deterioration of our Continued on page ' Service ; / ■ " :■ '• 'v ' s ■ " ■ • ■ ., '•■ ■■■ our to troubles. me :VT- society is It seems obvi¬ -s:,v / that the shape of our , Among the domestic foes of our society I will mention our free »An address by Mr. Cortney before the Boston Conference on Distribution, Bostotlf Mass., Oct. 20, 195s. ^ - Dean Witter ScCO. Members New York Stock Exchange • Pacific Coast Stock Exchange Midwest Stock Exchange • American Stock Exchange Honolulu Stock Exchange • Chicago Board ef Trade and other leading commodity exchanges Private leased internal enemies. , ^ •• . V ' radiotelegraph, circuit to Honolulu ,, SAN FRANCISCO • LOS ANGELES • cur¬ will hot stop until such time ; . con- ditions for free convertibility' of currencies- are restored.;. ' ■ society is determined not only by government, but by business lead¬ ers, educators, churchmen, journalists, etc. It will require a great deal of foresight, vision, wisdom arid enlightened aloofness from. greediness to defend our free so¬ ciety against both its external and somewhat. Some mills still believe this will be the case. The key to the situation probably is automotive and early reception of the new models has been encouraging. • A.Z literlly in the hands of our people. We are too prone to blame the government and the politicians for off and perhaps decline firm recently received his third November production schedule boost in 45 days. His steel sheet suppliers already are one week behind originally scheduled delivery. He believes that another production increase will put him in a squeeze-for November steel needs, concludes "The Iron. Age." i. on public policy will be ditticult country almost without opposition. — The ening belief that December steel output will be better than had expected. This is based on an expected pickup in deliveries to auto companies once their labor problems are settled, declares this trade magazine. were a danger_' situation, and our responsibil¬ ity is the greater as the interna¬ tional monetary system has come to depend a great deal on the ous However, it is my monetary discipline. It is noteopinion that if the worthy that recent decisions for viewpoint of the responsible busi- the further monetization of govness community is lacking from hrnment debf the root, cause of outside the communist now fateful destiny. been Earlier forecasts for December We have indeed created its for * The current slowdown in deliveries to automotive is strength¬ . gbvernment and indifferent to bother with our been strengthening despite holdups in deliveries to some struck auto plants. The market is particularly tight in the Chicago area, where some mills have fallen behind on their delivery promises. and a has to operate. may/reject private entersoon to find that at the same time they have rejected their freedom and independence. When I observe the complacency of the great majority of our people in the face of the dangers which are confronting US, I am wondering whether they do not understand the gravity of the perlis, or whether they are too lazy prise support in> heavier steel products. - on considered camp, perking along at a fair pace on the strength of demand for sheets and strip and galvanized sheet, a pickup in orders for hot and cold-rolled bars, a better tone in wire orders and a smattering of „ itself is before. It is true enough affairs. We have destroyed with that the destiny of our free society our own hands the international depends primarily on the political gold standard, and we. have made ^mate in . which free enterprise no serious effort to restore hew . To help boost demand next year, the mills are counting on continued improvement in the over-all economy; a better automotive year than 1958; rebuilding of steel inventories in customer plants and a pickup in the market for plates, linepipe, oil country -casing and tubing and structurals, all of which have been lagging. . Meanwhile, continues this trade weekly, the market has been ' production. If it is that social and economic , of capacity^ unoil there is erne area of agreement between communistic opinion and -Production* .this year is expected to be 84,000,000 ingot tons, about- 60% war He added that Russia.would prove the superiority of their system in ours history; / - declaring Worse yet, |£ "0' impossible. It is uPitott,e ( ' or was 1949, "The Iron Age,'* national better year in 1959 in he that metalworking weekly stated on Wednesday of the current week. a accom- govern-; sure that sanity is reinstated in omy, which is challenged today as the management of our monetary accomplished society anathema to us. A portion of the world will a large gold and our depends in thefinal ahalysisonpolitics and laborunions. nature of duty and role, like it or not, to be the active guardians of the free market econ- our of dur government a great influence on the our society. It is their as _ loss bond-standard, and the credit of !' theme one have, deliberately put the world a dollar standard; while the dollar Business leaders inevitably have achievements were its we on nations. free ourselves they as constant ef money and credit. - chosen can.- examine each ment bond market are disquieting symptoms of a basically unsound monetary situation due to abuses the Businessman in Domestic and Philip Cortney s to The to their responsibilities. next Congress x the these because and salary payments. The department's new report put the August rate at $350,100,000,000, or $500,000,000 higher than the earlier figure. as possibly as we me! now the demoralization of Greatly under the influence of the U. S. Council, of which I have the honor to be Chairman, the In- allies. We shouldn't try in wage the mills are writing off 1958 Let. A Dangerously Serious Situation i a material shock a „ : has that at any steel industry -• ™ condition, but ® conditions !fpreserva*lon anc* Progress of a free market economy, ternational Chamber of Commerce ^lishmento^ an7 toddy^more .^o the much as either don't recognize or don t live > August figure, with most of the increase due to a further advance In the fourth notf the least one, is that we should liberalize- trade - between nations S;<^ our society September rate, which set a new high for the third straight month, was about $1,400,000,000 higher than the revised • 1 vn ■.'cycle.. • universal suffrage, while most of and p * ^ • by the communists have The ; the , ;haKlr the politicians, elected by forgetting tlmt ithey have-to be ■ the b 1 em mize seasonally-adjusted annual rate of $357,500,000,000, cording to the United States Department of Commerce. condition, for second The third condition v cans Recent the agency pointed out. record a i confronting Personal income continued to climb in September, attaining v m p r o Despite the after-tax net income drop to an annual rate of $15,700,000,000 in the second quarter, compared with the $22,100,000,000 annual rate in the third quarter of 1957, the flow of divi¬ dends has held even with last year, o c economy ment" in corporate profits, the department noted. . e r face . . later a totalitarian ciety is the free play.' of market forces.;. •* ,*•1 not earnest-'; i' w i t li Corporate profits in the second quarter of this year rose to $32,000,000,000 from $31,700,000,000 in the first quarter, the report continued. This was more than $12,000,000,000 below the annual rate high of $44,200,000,000 in the third quarter • or survival of the; f'r"ere'i sdciety * , ■d-' it like we « annual rate of $352,400,000,000, up about $2,000,000,000 the third quarter of 1957. or society. successful operation of a free so¬ complacency, our acquired easy destiny has put on the shoulders living habits, our greediriess for of our people the responsibility money, our exaggerated pleasure for leadership of the free world, seeking, and last, but not least, It is no exagpur labor unions due to bad and enapted by shortger:at^pn;4C-J >s|gbted;politiciah$.i state-that jthe i u j > an , foremost, the survival wake sooner form of . quarter, with the prospect that corporate profits will reflect significant improvement, the United States Department of Com¬ merce reported. .; While data for a calculation of third quarter national income reached . free society depends on hav¬ ^ j Whether a the follow¬ on • cars, that auto manufacturers and dealers have something. to gain by the-shortage, since it will tend, to; lessen price resistance until that time when new car stocks improve. .National income recorded aims these of ing a sound currency.. Jt is no exaggeration to state that an un¬ sound currency wiir bring in its • i equit¬ free and good * attainment depends primarily ing conditions: and ' vf the free world depends upon reversing our disgracefulnnwillingness to reinstate the American dollar on a sound basis, and topursne other essential conditions necessary for the preservation and progress of k free market economy. In suppling the details > behind this strong indictment, Mr. Cortney notes we must; cease becoming a high- cost and high living country which threatens - our^international competitiveness, control the ampli¬ tudes of our business cycle which jeopardizes the free - world, end business and labor monopoly, and most importantly rein¬ state sanity -in the management of our monetary affairs. He warns there is no protection against inflation for everybody, points out; government debt monetization is the root of infla¬ tion, and finds loss of gold and demoralization of government bond market a perilous symptom of an unsound situation. strikes in the automotive industry has upset the time-table of. the manufacturers in getting the new models into dealers' hands in sufficient numbers. " r"' •. Coty, Inc. Chairman; -UiV S. Council^ International Chamber of Commerce J •The delay V:, President and Economist, : ^ ■ a society. By PHILIP CORTNEY* ' and income are *as able as possible in Commodity Price Index Food Price Index NEW YORK 39 0Iff est Serving Investors • CHICAGO 36 6 (1770) The Commercial and Financial Chronicle their Cwrent Bond Market Trends and bonds. Bond Financing Procedures though of gas and Mr. Hager's comprisable topics. cor¬ The New was nies law was refundable issues. defer financing, non-callable and versus bonds not, the borrow when and as money non¬ Before to : who of ness ing ' is engaged in the busi- underwriting and marketbond issues. new The months 12 past nessed two reversals the bond market wit- have of trends which for first The the the by radical a prices. This surge in hv was up- announcement announcement the the on on afternoon of Nov. 14, 1957 that the discount rate, after standing only three months at Zxk% being was reduced to 3%. was electrifying. issues Slow suddenly moving sold, were rapidly. For instance, on the morning of Nov. 14,. there was an unscW Telegraph tures which licly Federal 1939 of Debentures California Debentures Co. public offering) Standard It tures. Oi Oil and ot of actually the had been two first weeks ously. By the close of that day the entire issue stantially all sold. Prices of other t its these, there are. those required by law commission rule or policy by have elected this although under do and sale This some iary has been a in these weeks. Quotations have usually sensitivb to It is since UvG bidding half un- kind that ^Legislative these American,•;40 billion mcJuded I"ClUded sues. , bodies that some Recreation 135. 113 83 _______ Control_'____ 49 ..." - „.7. 891s,! $6,761 50 ________ well. refer to such items as of Volume ■••v.* of Borrowing—15-Year v:v* -- Drovisidnsluid 'its 184 Housing Flood -■ 493 $6,811, he?d .^.7C,onstit,u" Some of >*■ 333 Linen outmoded were ' Industrial, Unclassified as provisions earlier $2,428 1,035 1,010 «, and Welfare ^ J'Refunding S. alone Airports Public 12. John - annual Aid_ and 11. toat^^ded ^halmes9 S ftTcbSS principal^Jdbnted In 1844-oV^r 100 veai? debenture is-" tms this' total in to Ports 10. dollars ! amount of bond and oi; Veterans' Health 9. orie^ and Utilities 8. and 50 years ago." atfCompeti- five 0ver of not sizable ________ 7. i^manvrasfs significant a 1941. companies have sold several, been any 5. anfT^t^sV^aUe^^eir s'yTtein-* somewhat, past thereof. Other £6. have neither exempt from regu'- now fact the summer,months the bond "jittery" state 4. These latter compa-' involve but Education legislative j u.50 but In view or wnat happened dur m view of what nappened durmarket 1. [enactments., „;_0 costs, :.2. Roads .and Bridges 3. Water and Sewer__ posed by Stateconstitutions requirement to These include so. of ; ; ; , strictions and competi- method no : appropriations for operating costs V 4" Millions business limitations im- bidding there are numerous public utility companies w h i c h services capital which regulate tercd holding company or subsid- mg These has made rieces- live Sustained Bond Price Upturn Held Unlikely issues which had declined after marketing bounced back and went to premiums. Dealer invenlories of bonds were reduced sub- addition, to sell their securities at price is right. The lifting of the .weight of these large offerings bad a salutary effect on the mar-- previ¬ sub- Ex- Besides or adverse the ismess business revo- ■ then prevailing, thus proving once again that an issue of quality can always be sold if pub¬ was is in the sary methods utility securities "of financing rule or policy/ that are not adopted the'practice generally of' subject to the uuj!—. J requiring competitive bidding. narrow re- that ^balance of at. ket immediately thereafter. seen lutionary changes in- municipal financing. The-growth of our country both in population and in issuance of public which have, by for these offerings were all marketed despite In states ' a analyze and formulate sound judgments. The past decade has as and industrial agencies. DebenDeben- developed to aspects, several $200,000,000 Indiana to the and months of 1958 was higher than for" of 1954 and 1957. Mr. Linen tabulates i the accepted practice among $350,000,000 be underwritten 1944 Commission Securities ' I ? ■>" seven years and calls attention . its Rule U-50. This method is still Standard of to ever the Bank New York City.; . change Commission in 1941 under Sears, Roebuck & largest corporate debt (the issue of — and Power . study showing shocking profits by; ; contractors on lease purchase financing. He cautions on the need for examining carefully the pressure for admittedly ' v.-* needed public schooling and suggests much can be done to ; educate the laymen in economics, and in improving his ability or to othei raiJload securities, ;the Company Deben¬ offered recent Oil in securities- ;• ; , the major purposes for municipal borrowing, reviews borrowing methods pursued other than the sales of general obligations - indebtedness. and oker Sl?oad to were 000,000 Certificates Trust issues 'conditions new and large very previous peak . . The Interstate Commerce Com- the successfully The effect of this announcement estimated some total for the first ; v scheduled for offering period immediately ahead. Among these were issues of $150,- in triggered was which in their very abruptness and severity were the most spectacular in my memory. absorb : A v ». Federal agencies have adopted competitive bidding rules or poli¬ cies as follows: >'j ' borrowing. tion, quotations were depressed during this period by skepticism as to the ability of the market to review recent developments in the market from the viewpoint of of - ;.; President^ The Chase Manhattan V New York banker presents brief outline of persistently growing ■:'( municipal capital financing in past 15 years and reveal* the~ . , certain exceptions, 4 evidences Municipal Financing} By JOHN S. LINEN* _ ... v; further broadened to ap- long term -notes; debentures other discussing other phases' thorities might take and, in addi- to Vice electric compa-;^ and ply also, with ' of the bond business I should like ... . author advises managements to is needed and to pay the rate which bond market indicates is proper at time of of gas disposed of through competitive bidding and in 1950 the In answering the question as to whether to or v electric companies not be and of callable and refundable 0i of1 this; In this same state a statute adopted in 1919 requiring,that sustained bond price upturn, and he incisively weighs the pros and cons of competitive bidding versus direct placement one in ding. York investment banker doubts the current situation presages v pioneered by share-holders, pursuant to their preemptive rights, be dis^ posed of through competitive bid-., any • somewhat Commonwealth taken porate finance in past 25 years, and when and what rate to borrow money, are the a development; al- field as early as 1870 when its..1', statutes required that capital stock/; Vice-President^ Halsey, Stuart & Co. Inc., New York City developments in the field of been Massachusetts By A. B. IIAGER, JR.* The outlook for bond prices, has recent more Thursday, October 30, 1958 . . The application of bidding to corporate" \ competitive securities . A A ; Review ^ ' quick look at the comparative '''- " 1 "'""1 volume totals'h';is even asas- more If we go back for only 15 years' this is stm true- Th<r growth ^as been rather consist- founding. now^d sinr. ently upward since that ttoe with that time, with the total financing during each of Buyers who for some have set off the effective exercise sharp swings in debentures of of the time had shown little interest iri the past five years, .10 times prices. However, at the moment- which state's authority to performing its the management elected to bonds now greater than was the case in 1943. nrrrm,,., suddenly found funds the market is giving a pretty good h„„„ sel] at v-uju^i-ui/1'"0 bidding +liriiuTl-»'. competitive hirlHiiKt though:' to invest in lars An indication of the growth is i*ge amounts, During account of itself. This may be due; under no legal compulsion do - do. the weeks listed below:immediately following,' in part, to the fact that, other thap so. 'V. ■ v."'.■; -Millions each succec d i n g new issue for the Treasury's financing prob-r " ' > V. ity has been needed is well known ? 1943 brought a price appreciably lemft,. the schedule of new offer-. Approxnhately 90 /<? ot .the pqb$507 V fp-many of us. The demands that he utility debt issues V:..'i1945u£4-_; 819 ' Xmcluding, rest on the hnco r\4nntnrol doorsteps of our states ;___ ; • 1947___?_. 2,354 rumor and feature stories, news two billion three hundred stantially. ... am are million . .. w * v . ul bS atlttSS , , xt . " 1 rfoo lino ,«*■ , : . . . . •' - gov- utility bonds mately 1*4% dropped per approxi¬ in annum' 2*/j months time. There f • followed three ; further, cuts in the discount rate. The last of these was a cut to 1%% which in the New York district occurred offerings. I seriously doubt, how-, ever, whether the current situa¬ tion presages any sustained turn in bond prices. , Competitive Bidding cuts had tne on much less bond bond prices P-edu ' of effect an market. \vere lintil the end of May. At tins' point the market developed a tone that was decidedly suspicious. Howfever, the severity of what was to come caught most of the so-called experts "flat footed." In early June the IT q m,,.:; took some fin'tnnincr ,/L* Series of .long-term u «-01u s ?ue 1985 and of 2/s /) bonds due 1965. tor a short period these issue Although an bonds sold 3 the P,remium» it rf atter .was not long subscription books had been closed that the mjirket prices on these new issues started to slide- progressively been two . I Direct % " - and the other is the so-called downward, ' di- private placement method of selling securities. •— or of to w these developments ucvciuiJineius offered tificates) corporate debt issues through the so-called negotiated sale method. Under this method coupon terms of the at some the through mate issue are discussions agreement tain not decline in of bonds. a j" 0f the some fo^JFtvnn a . - what action ^Ai address by Mr Annual National 27th Controllersi tic City, extent of that by virtue public ownership of large industrial cor-r time may their securities in may elect come to .+- . f unt, ln *933, there has dea pra?tlCe 0n the part of issuers of corporate selling that Act. These sales known u price! as monetary and Conference "private placements? relatively unknown be- in" fore that timeUnregistered to ;Purposes Requiring UapitaL Borrowing - : ; It . ' issues of this is : confidently • predicted by responsible sources 'that trend wilt'continue toward various capital 'improvements re- "the financing in those days higher totals in the years to come. restricted principally to In support of this, the total for modest school needs/street im¬ the first seven months of 1958 w#s quiring were; provements with and water minor additional supply, needs. higher than for the previous peak of 1954 and 1957. ..i To¬ years day, we find these items still lead¬ ing with educational costs far in front Various of Methods of of the the Atlan¬ bidding hanserbee°nS the°^ceo}ed method bv-which states cities and other conntie<; municipalities sell and legislative restrictions referred to, tions requiring capital financing which, in the aggregate/swell the various methods of financing were resorted to other than the sale of total substantially. general just moment to note the classifi- a It will • take nancing, they are listed below. - Under the unclassified group, which represents about 13% of the total, are such varied purposes as dornutory revenue, transit, forest preserve and even abattoir and While the above titles, refer to capital improvements which have Because of constitutional obligations. Continued on page in- the sale of Special Revenue and Authority obligations, Municipal Lease and Contract financing, etc. Although these procedures have - been !a convenient means of es¬ caping the restrictions they have, in' many method rather Mr. doing an Beebe, O'Melveny • of & by a costly financing such economical the law Myers in geles, -disclosed profits been cases, of than some contractors n&* 26 These- eluded the pledge of special taxes, - one. firm of Los; An- shocking on lease been financed by bond issues, they purchase financing in his speech ScolT *°le. in the Securities Act.. This our Present day livi*g standards. i® Section 4 (1), under which an An address by Mr: Linen before the - Borrowing any other-purpose. But, there is a multitude of other func- popularly' mosquito abatement districts. as were v au- Hager before Jnstitute of America, N. JL, Oct. 22, 1958. 1SSUe+S are 1956_;___. 1957__^4-!i • pared by the Investment Bankers Association for. the year 1957. In the order of volume ■ of such fi¬ of the Secu- ioqq rit|es veIoped passage 1955 these cation of purposes of issue as pre- Unregistered Issues the supplying sell . - Since ' 1954_____. . for competi¬ open tion. -S mf,thod 1S usfd Pn}F .their securities directly to intypes occasionally for utility debt is- vestors without registration under concern the the porations, the they too oc occurredffh^1 the 3,694 5,558 *6,969 ' 5,977 5,446 6,958 1953_:__„ ( , „ , which wide of when or sues and even less frequently for Qnmmpr'vna pnces during railroad issues, although it is the S aS sPec?acularly customary method/for marketing Tua th^ 'prices V. 7 merely to give f' of inconceivable many by . instances^ natural gas'pipe companies. However, it is line is- suer and the investment banker, bankers, selected to underwrite and sell the new securities. belief : . v by this " .. of competitive ulti- the .. bidding ii> selling debt securities. In tbe cor-; field competitive bidding has been applied primarily to the securities of public utility and railroad companies and in cer-^ arrived and between also- sold - indication use have staggered bcthe public officials /g<to'remeills l«^t. a generation cer-;:^ ; ''' porate rate, price and other new were 1950__ ; W0urd Securities debt I cite these facts customary to market all types the raflroad • (exclusive of equipment trust it 11 new Scn.viCes responsible develop- the widespread use of competitive bidding for debt securities of pub-' lie utility and railroad companies prior Period .164V sold by method. ' financing practices dur-, past 25 years upon which should like to comment. One is rect the through 1957 were com-; y0hd petitive bidding. During the same ments in w ^S0me flnanfmS which in- Siv ef have ; However; ing the thereafter main-1 fairly stcady level a There ; during up¬ . versus Placement April 19, 1958. These successive on offered HjefiS!ciP958CQUnciI' Ashe" The am0unt of financing that has been done-in other form than Continued on page 27 Volume 188 Number 5790 . . . The Commercial and Financial Chronicle f (1771) r a ... ^ fit. U * ** > » M' i" _•*-» «-» I \ ■ f.» *'■» 4 .i COUNTY OF SAN FRANCISCO FORN I A V- ISSUESAdWOUNTS/WATES; MATURITIESJU4l) Yiaj^S i>R WtlCfcS ,J "y,t ,/Uv " 5'S'I" • v * ."• >• !s" ** V- ? V.i/j ''i • ; ' e,.; hr^ ;■ > ' .'--Centers ' ;v <Bonds—■1955,'Sefies"C 140^000 Each Year pec. 1 ; • Doe: **..'2' "' ? at the $170,000-.Each Year-Dec. 1, 1959-63 175,000 Each Year Dec. 1, 1964-73 V C ^ ' m Due * \ * '• V ' to both principal and interest." as • . - ' • ' ; -' Exemption - all present 'Federal and Sthte JSonds—1956,' Series jC \ ■ . ' ' ( - of counsel, interest payable by the City and County its bonds is exehupt from upon of California personal income taxes under existing statutes, regula- -* tionsiand court decisions. 1,030/000'Eacti Year Dec. 1, V964-73 "' W« believe these bonds Yield Coupon .'.Rate \ik * * ,r , Dee:1 $1,025,000 Each Year Det. 1, 1959-63 •. Due :$45,Q00;Edch Year Dec. 1, 1959-73 Amount < * - , Tax Ifi the opinion $15,425,000 Hall of Justice , I ' v» jr.' T ..r._ 7., •vfj ^ "245,000 Each Year Dec. 1/ 1969-73 // "5 - ^he^City end-County of'San 'Francisco in Sari Francisco, California, of $l,t)00 registerable ' - "$250,000 EacK' Year Dec. 1, 1959-68 - . / -•' r - - Agency of the City and County in New York; N.'Y. Coupon bonds in denomination , : $675,000 San Francisco Hospital Bomls^l954( Series office,of the Treasurer qf or.at the Fiscal Boads—1956, Series B Y.\. f -Doe: Pmyment pnd Heghtratipn Principal and semi-annual interest (June I and December I) payable, at the-option of the holder, '- 1959-73 $3,725,000 School $2^00,000 Sewer fuel.: ©ire December 1, 1939-73, J $600,000 #J«y9Mundt <HKI ^etrMtion / vr,-i v ifi.»,/lendl«,i t Mated Aecember 1, 195* 90,000 .Each'Year Pec. >1, 1949-73 •' • v. •/ a; »• BenJi^947,' Series 'K\*\ J, - ^Diie: $95/000::€eKHj.¥eariPec;r s1,T959-68 , b%, 2*k%, 2%% and 3% Various Purpose > ■ $1*400,000 Street Improvement ?; : :» ."'r{Accrued? interest''loobe i&Med) •• 7.'; ; ; Yield Coupon or -'Price Rate Amount Due or "Price for savings California in • are Legality for Investment ' , ir -legal investments in New-York for savings banks.and trust funds and b.anks, subject to the legal limitations upon - the amount, of the bank's , $1,625,000. 6,% 41,625,000 - ; 1.959 6 1960 ■ 1,625,000, >2 y2 . V 2.40% 1962 3 1968 3 1969x 100 1963 3%' 1,635,000 1,625,000 2.20% £25,000 21/2 which may 1,635,000 '2% 1964 security for deposits -of public 100 ... -a ;2?/4 1965 2% 1966/ 2.90% 3.0£% 1971 3 2.60% 1,635,000 197d -;3 2.70% 1,635,000 1,625,000 1,625,000 3.10% 1,625,000 1972 1,625,000 be invested in bonds whichrote legal' investments for savings binks, and'are eligible as 100 2.60% V : 2.95% , 1973 the laws of the State of California in California. ^ Purpose ana Security These bonds, issued under provisions 3.15% . v / \ moneys r ^ . " ■ v \ legal investments in California for trust funds and for other funds " investment, and/are likewise 1967 $1,635,000 .2.00% ; 1961 6 1,625,000 ■•v ' ' r ■,* t ' *'• t , of the Charter of the City and County of San Francisco and for various purposes, in the opinion of counsel Constitute valid legally binding obligations of the City and County of Sap Francisco and said City and ,County has 3.15% I. , ' and power and -is obligated to levy ad valorem taxes for the payment of^^ said bonds and the interest thereon tion all property within said City and County of San Francisco, subject to,taxa¬ upon by said City and County (except cer-tain intangible personal property, which is taxable at , limited rates), without limitation of rate . amount. or - - Legal Opinion The above bonds.ace .offered .,when,--as and if listed ibelow. nished on well as- ars ' issued,and;'receiyed--by the underwriters other underwriter's' not shown '-.whose names'wilf be fur- - par ; Incorporated ...■ v ^ ■ -r J.Bartti&Co. *- - Clark, ftadge & Co. i •-> - * , F. S. Moseiey&Co. The Boatmen's National Rank '; WMhrni R. Staats & Co. of Oregon New York '• Sanfmncueo .-Paine, Webber, Jackson& Curtis . ; The Hliaois Company are required . ./• ; <! • „ RW.fressprich&ICo. • Shearson, Hammill & Co. Shields A Company F. S. Smithers & Co. Reynolds & Co. Roosevelt & Cross New York HanseaticCacporation Ladenbarg, ThalnuHin & Ca. White, Weld & Co. Dean Witter A Co. Stone & Youngherf Incorporated Trust Company otfieoitfaAndwwsAWelis, tec. Fitzpatrick, SnlKvan & Co. . j of St. Louie Spencer Trask & Co. discount. Investors , . ... Estahrook li Co. a premium paid thereon. any Security-First National Bank Ptielps, Fenn&£o. iMerriil I ynRh,Pierce, Jenaer&Smith ei'iiveS.I & Co. The First Natnnai Bank • Seattle-First Natienal Bank C. Weeden & Co. bonds purchased at regulations to amortize Bankers Trust Company: Guaranty TFust Cotn^any ffljfth&Co.,lnc. The First BostonCnrpura'ian tehman Brothers Harriman Ripley & Ce. Smith, Bamey &£fl. TheRertheai TraUfeapMy American frustCompany R. H. Moulton & Company Amortization of Premium may accrue on under existing of Alew Vmk - • , taxable gain a v,.. Bankof America HarrisTrust and8avmgs Bank The Chase ManhattanBak Tlie FkstMatioiutCHy Bank H.T.4 5.A. value, and Tax Gain, initially issued by the .above named political subdivision at not less than their, These bonds wilLbe "; request, and subject to approval of fegaflity by Messrs. Orrick, Dahl.quist,^dderriagton; & Sutcliffe, Attorneys,.San. Francisco, California., . . ■ f CHyflarthnaal Bank fc Trust Company Wikamttairk Company < , Reaii, Tayler&C0.A. AI.Ridder ito-.tnc. ■ - j Model, MmAl Stone First Southwest Company Fldredge&Co. •'-•*- of Chicago Incorporated ' Wm.E. Pollocks Co., Inc. PtooiMSflvmp Sink STrirst Company Incorporated . Scheelikopf, HuttonS Pomeroy, Inc. >• The first Rattanl Rank and Trwttompany Eumtz HuteMnson & Co. ; J. A. Hogle & Co. - ;Oklahoma' City, Okla. 1 NmrthwesternNattonalBank of Minneapolis Stem, LanertiGd. : ■ The First Cleveland Corporation WanMsi)me,HMl&Do. . Nathmal Banket Comme.xe of Seattle fljttmerSCempmy.lnc. Anderson SStrudwick J.R.WlshmStone i1*"' GintherS Company Raiman & Company,tic, * _ A.0.Edwards SSens t G. C. HaasS Co. Granhery, MaracheS Co. Industrial Natienal Bank Lawson, Levy, Williams S Stem Irving Lundborg S Co. of Providence RemhoidtS Gardner Rockland-Atias National Bank SeasongeedSMayer RodmanSiltaBhaw , Shumai, Agnew S Co. of Boston Brush, Slocumb S Co. Inc. The Continental Ink ani Trust Company Salt lake^City,_ Utah Kenewer,MacArthurSCe. 0dober 28, 1958 Townsend, Dalmey and Tyson J. C. Wheat SCo. , SchaBer,NecherSCe. : StemBrottersSCO. A -circular , Fedaalwi Bank nd Trust to. Green, Ellis S Andersen HaUewell, Sulzberger, Jenks, Ktrklsnd S Co. i - WaiterStdws^&Company ■ relating to these bonds may be obtained from any Thornton,Mohrandfarish of the above underwriters. A.0.WhileSCompany H.E.WorkSCo. ■ 8 The Commercial and Financial Chronicle (1772) Air . . Reduction Company—Report—Thomson & McKinnon, 11 Street, New York 5, N. Y. Wall COMING American Hoist & Dealer-Broker Investment Thursday, October 30, 1958 . Derrick Co.—Memorandum—Piper, Jaffray Hopwood, 115 South Seventh Street, Minneapolis 2, Minn. & Also available memoranda are EVENTS ► Control Data Corp. and Red on Recommendations & Literature it • understood that the firms mentioned will he pleased to aend interested parties the following literature: ii - ■ American Investors Corporation ence, Corp. , American ' ' ; N. W., Washington 7, D. C. of 7 • Company—Analysis—Baker, Weeks & Co., 1 Wall Street, New York 5, N. Y. : ,7 ,£y y. : " - ^ - Cricket Club.. Nov, 10, 195&- (New Yoek City* Analysis •—Laird, Bissell & Meedsi, -320 Broadway, New York 5, N. Y. Also available is an analysis of Summit Mining Corporation. ^ h j. v .v y ^ * : — Arkansas Louisiana Gas u'j" .>■ yv'v Seeurity Traders Association op New York* Annual Beefsteak' - Party at the Antlers Restaurant; v' j v Analysis—Oppenheimer & Co., 25 Broad Street, New York 4, N. Y. Also available is a memo— Nov. ^ randum James R. Clarke, of: Dominion Securities' Corporation—Lohman Publishing Company, Burlington, Vt.~ y [ Avco - Price vy Chemical■>& Pharmaceutical & Industry—Review—Smith, Barney Co., 20 Broad Street, New York' 5, N. Y.v"'." V"; ' 4 • ■*, - * *V Comparative Yields of U. S. Treasury Issues Tabulation — markets on ' • metals N. Y. & " ■ Bulletin—- Hanly,.100 North Franklin Street, Hempstead, • . V; New York. ; ... -/V 7//; . . — . ;; !« comparison York 5, — on V . — • •= ^ -v ; - - Analysis — Parrish & Co., 40-Wall become Fallon - _ Railway-Northern Pacific Railway and their . affiliated with James L. - Co., 7805 Sunset Boulevard.: With Marvin C. Yerke - . 7 i COLUMBUS,. Ohio is now' , ' A. with'Marvin C.; Inc.,; 40 ' : • Now With Wakton- & Co. t ; ■; Lee — Yerke 7 and Associates, West Broad Street, r,::: \ subsidiaries—Study—E. F. Hutton & Company, 61 Broadway, York 6, N. Y. ' Also available is a memorandum on New > (Special to The Pinakciai, Chronicle) Kuhn Corporation— Analysis — Pacific Northwest .;V Company, Terminal Box 3686, Seattle 24, Wash. Corporation; 15 Broad Street, New analysis of General Re¬ r r Street, New" York 5, N. Y.c Gteat Northern ; ANGELES, Calif .—Thomas V.. Moon and Irving White have N. f ^ Tna PlMA^CIAt.-CliaONJCtE) LOS ; memorandum Jon Investors Diversified Services. *'*•"*" — ; Two With FaUon; 'J /StKJCUatO Herbert E. Stern & Co.. 52 — York 5, N. Y. - Dairies*. Inc. elation Ahmal Convention «9 ^ the- Boea Raton Chib^ -r - General America York 5, N. Y. Also available is an insurance Corporation. ' Nnvt 2-5i 1959: '(Bowk-Bnton^-Fln^^ : Data Island—Analysis—Blair & Co. Incorporated, 20 Broad Street, New York 5, N. Y. ^ v. .Hotel. >. • Franklin National Bank of Long N. Y. 1958-rThe First Boston . 3rd quarter earnings Stocks—Comparative, figures at Sept. 30, a Foremost Quarterly Laird, Bissell & Meeds, 120 Broadway, New New York City Bank is -ica annual }' Co.—Memorandun>—Paine, Webber, Jackson & Curtis, Pillsbury Building,. Minneapolis 2, Minn. Also -available ' comparison —New York Hanseatic Corporation, 120 Broad¬ way, New York.5, N.-Y. • *, . $• New York City Bank Stocks—Bulletin ^ ; • >. Donaldson Company of New York, Inc., Ill Broadway, New York 7, Leading Banks and Trust Companies of the U. S. Co.;-29 Broad- Bankers Associathwii-of-'Anjer-,-7 meeting atthe Hilton - - , v New York 6j N. Y.v WM1 Street, New Japanese Stocks —Current information—Yamaichi Securities r April 1-3; 1959 (San Antonio,Tex.)7 > ?Texas G r ou p o f: investments Utility Company—Analysis—Mabon & Company, 115 Dictaphone: Corporation : Vdorf Astoria. j , . (New York City)f Association of New7>. I Broadway, New York 6, N. Y. way, . Edwards m..; - (Mlani York annual dinner at the Wal-■ 7: \ V ;■ Eastern Clevite Corporation—Analysis—Schweickart & — — 3, Citizens Commodity Exchange, Inc., Secretary, 81 Broad Street, New York 4, N. Y.—50c per copy, r-Investment Outlook and recommended securities f Investment :jones,'Ihc., 1411 Foiirth Avenue Building, Seattle11,* Wash;:? cago Stocks—Analysis—Shearson, Hammill & Co., 14 Wall Street, New York 5, N. Y. 0 ' ;~Vv.:D Booklet y.>.", "V'; V 1y.f Dec. 10, 1958 \ Aviation* Inc.—Analysis—Cruttenden, Podesta & Co., 209 South La Salle'Street; Chicago 4, Electric Utility — Bache & Co.;- 36 Wall Street, 1958 Investment Bankers'Association^ of America annual convention 7 at the Americana HoteL r 7. — ^Chicago,jMilwaukee, St. Paul :& Pacific — Analysis — H. M. Byllesby and Company, Inc.;* 135 South La Salle Street, Chi- — Futures Trading in Non Ferrous Metals Report New'York-5, N. Y. •: Analysis — W. E.tHutton & Co.; 14 Wall Street; New-York 5, N. Y.: ' ,;-v: - orvrf - " : ; 4 £ Cascade Natural; Gas ^Corporation—^Report—Blahchett, .Hinton — Aubrey G. Lanston & Co., Inc., 20 Broad Street, New York 5, Consumer Credit .-1- analysis .pf, Wheeling Steel. California . N. Y. •• /. Common—Analysis—du Pont, Homsey & Company, 3i eet, Boston 9, Mass. In the same circular there is also AVcO Manufacturing— — yy1 Milk Str ,an, earnings ratios for major industry McLeod, Young, Weir & Company, Ltd., 50 King Street, West, Toronto, Canada/';?*:,;.V'^.-^;/;v: { groups ' — Revlon, Inc. on 38-Dec. >5, Beach. Fla.) v- ■ Canadian Securities—An analysis—reprints of two lectures by Stocks sixth annual Philadelphia Philadelphia dinner dance at the . View—Monthly investment letter — Burnham and Company, 15 Broad Street, New York 5, N. Y. Also avail-, Canadian ' • il Gas Anaconda Company Burnham able is current Foreign Letter, Natural ; Nov. 8, 1958 (Philadelphia, Pa.) Investment Traders Association . Confer- the nuclear navy, Philips Lamps and Ceneo Instruments — Atomic Development Securities Co., Inc., 1033 Thirtieth Street, tion at the Hotel'Sherman. J- Foundry—Analysis—H. Hentz & Co., 72 Wall Street, New York 5, N. Y. Also available is a bulletin on Morgan Engineering Company. ' : f t 7-8,1958 (Chicago, 111.) National Association of Investment Clubs 8th annual conyen- American Machine and New York 5, N. Y. Atomic tetter No. 52—With reports on Geneva Atomic , Stone & Also available is a v VA Co., 25 Broad Street, New York 4, N. Y. report on Stone Container Corporation. • - Nov. :*? American Machine & Foundry Co.—Analysis—Hay den, C. Helm, Vice-President, 20 Broad Street, Trust Company, R. Bulletin —De Witt Conklin Organization, 120 Broadway, New York 5, N. Y. - American Capital and Canadian Management—Study—Empire « — Field Investment In Owl Stores. ~ (Special to'Tub Financial CnaoNictE) . yield and market over National Grolier . t 4,N. Y. James Lees & . Markets-Review—Park, Ryan, Inc., 70 Pine Street, Values In Industries—Review of economic and market condi¬ tions through the third quarter of 1958—Distributors Group, Acoustica Associates, Inc. Trucks New York Magnavox • — „ Carl L. — become ated with Waistoii & associ¬ Co., Inc., 210 - (Special to The Financial Chronicle) r Sons—Analysis-r-Auchineloss, Parker Jc Redpath, Inc.—Analysis—Reynolds & Co., 120 Broadway, 5, N. Y. - Company—Analysis—Zuckerman, Smith & Co., 61 McKesson & Robbins, Joins Reynolds Staff Haupt & Co., Ill Broadway, New York 6, N. Y. — Data Troster, Singer & Co., 74 Trinity Place, New York. 6, N. Y. Also available are data on Microwave Associates, Inc. and Oil Basin Fipeline Co. has East Wisconsin Avenue.. r_ Ira 52 Wall Street, New York 5, N. Y. Mack Incorporated, 63 Wall Street, New York 5, N. Y. • — Longren Aircraft Co.—Memorandum—Leason & Co., 39 South La Salle Street, Chicago 3, 111. New York 5, N. Y. • Review — Broadway, New Y6rk 6, N. Y. Paper Production—Review—David L. Babson and -Company, .Inc., 89 Broad Street, Boston 10, Mass, ~ Jr., Co.—Memorandum—Woodcock, Hess, Moyer & Co., Hussmann Refrigerator Co. , Tax Exempt Pfeifer, 123 South Broad Street, Philadelphia 9, Pa. l9-year period — York a Society, Jnci—Report—The Milwaukee Company, 207 .East Michigan Street, Milwaukee 2, Wis. : " II. Ueintz 4& Front Street, New performance Quotation Bureau, Inc., MILWAUKEE, Wis. Sterling Drug Inc. Over-the-Counter Index—Folder 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 Bureau. Average^ both as to WINSTON SALEM, N7 C. — M. Edward Bizzell, Jr., has joined the staff of Reynolds & nolds Building. : Co., Rey¬ ; - Clinton Cessna" Opens MODESTO, Calif. Cessna is business Inc.—-Memorandum—Green, Ellis & An¬ ' — engaging in from Clinton securities a offices Chabot. 104 at - „ * derson, 61 Broadway, New York 6, N. Y. Meredith Publishing Company Securities — Bulletin Stone & Webster — Corporation, 90 Broad Street, New York 4, N. Y. Edwards Paper Company—Analysis—Loewi & Co., Incorporated, 225 East Mason Street, Milwaukee 2, Wis. Also in the same circular is an analysis of Ceco Steel Products Nekoosa For Now available Briefs on financial institutions — . . Corporation. . ACOUSTICA ASSOCIATES, INC. - - - , ■ , * Nippon Gas Chemical Industries—Analysis in current issue of "Monthly Stock Digest" — Nomura Securities Co., Ltd., 61 Broadway, New York 6, N. Y. Also in the same Digest is an analysis of the current Japanese economic situation. Prominent in the field of ultrasonics—"si¬ Purolator Products Inc.—Memorandum—A. C. Allyn & Wall Street, New York 5, N. Y. lent sound" which has Purolator Products Inc. finally come of age. — Memorandum — Advertising, is. one of Co., 44 Hemphill, Noyes & the most useful tools in Co., 15 Broad Street, New York 5, N. Y. MICROWAVE ASSOCIATES, INC. Fast-growing producer in the field wave energy; of micro- widely used for navigation, fire control and long range detection. Reeves Soundcraft—Analysis—John R. Boland & Co., Inc., 30 Broad Street, New York 4; N. Y. Reiter Foster Oil Corporation Analysis — Arthur B. Hogan, Inc., 6705 Sunset Boulevard, Hollywood 28, Calif. Studebaker Packard vs Members New York Security Dealers Association 74 Trinity Place, New York 6, N. Y. So it's four smart to place advertisement in Texas Illinois Natural Gas Pipeline Co.—Memorandum—Doyle, O'Connor & Co., 135 South La Salle Street, Chicago 3, 111. United American Life Insurance Company Company, the Independence same bulletin ar — Data Building, Colorado edata Pyramid on — Copley & Springs, Colo. Life Insurance Company, All States Life and International Fidelity Insur¬ Company. ance Teletype NY 1-376-377-378 customers Co., 10 Post Office Square, Boston 9, Mass. In HAnover 2-2400 new Botany Mills—Comparison—Lerner & Sylvania Electric Products, Inc.—Analysis—Sutro Bros. & Co., 120 Broadway, New York 5, N. Y. Troster, Singer & Co. securing — United States Steel—Study—Jas. H. Oliphant & *way, New York 6, N. Y. Co., 61 Broad- mma+mm THE COMMERCIAL AND FINANCIAL 25 Park CHRONICLE Place, New York 7 - Number 5790 188 Volume The Commercial and Financial Chronicle . (1773) 9 struction Financing iheReplacement Fleet j. costs continue to rise vessels during the first five years itself due to changes in adminis¬ the amount after delivery to the extent of trative' 'or ' legislative policy.;1 For required may be larger. The; 75% or depreciated cost for the example, as the charter market h4s figures recently published A by purpose of financing new con¬ deteriorated and there is less as¬ because of inflation, Grace Line in its circular offering S. Government Insured Mer¬ U. chant Marine Bonds to the By ROBERT C. PORTER* show Partner, F. Eberstadt & Co. ,:v. '*:' :::. «. -A- £ - "1 .t New York City ,N w ; j. the of the subsidized U. S. Oper¬ Flag set ators shipping industry to obtain its financing for the replacement the reports are approximately $400 thousand. This leaves a balance of approxi¬ mately $1.8 billion to be covered by cash derived from depreciation and" earnings of approximately $87 /million per annum after fleet ; . from nor i m a 1 tment nve s rather sources than from the Government Title V under at the historic interest 3xk % rate. This is a in change Government policy which em phaisizes the for Robert C. Porter - necessity of type a financial planning that has not been required in the past. The manifold increase in replace¬ ment costs and the inadequacy of t; v these meet time famous banker to when be Maritime most a single operated at new a 'these cover been up to requirements; to extent shown in published dividends over the past few years on doubled the net policy construction excess through next 10 to 15 financing years. re¬ a period of approxi¬ mately 12 months after delivery. Thus, the financial planner must decide at an early date whether his company should obtain a Gov¬ in subsidized operators outside made made within sub¬ something be quires that the insured loans be of $1 billion will have to be raised by the the that must vessel delivery and the Govern¬ over ernment Insured Loan on the re¬ quirements that single ship ators are required to put reserves and lose this avenue of financing for the future. While legislation was introduced at the last session of Congress to obviate the necessity for this early deci¬ sion by permitting If con¬ obtain an a company to insured mortgage on its This announcement is neither an to conditions funds in A common .stocks. the cost of ships to the first in short when you the first of in from institutional 1955-J956 ments from due or in for what the or reserves and pay¬ 1960 state of are the their earnings will be in 1960, -1 market money lenders contract 1959 has been committed to date. or money also and have the rate is his money avoids of emphasizes this point. As recently the changes but company not only possibility of adverse in the money! market; the funds, adverse regulations of changes in the a as last month finally sold a one major Continued the Maritime Act at on , $50,000,000 to sources time during the replace¬ some On the assumption companies will have ment program. that very few sufficient npxt that cost be the of cost the the to entire question- is one of timing, is, should at least part of the of each replacement vessel financed from the as cover program, reserves outside program should the 4V»% Debentures Series A due 1979 Interest sources progresses Due November 1,1979 Dated November 1, 1958 payable May 1 and November 1 in Chicago or New York City \ or and the assets reserves be first exhausted and the outside financing problem left to When, the date. time a later arrives for Price 99V2% and Accrued Interest the outside financing, the question of how this financing should be done must be decided. At the ! f present time the major avenue for financing such United of 1936,. States Copies of th e Prospectus may be obtained in any State from only such of the undersigned as may legally offer these Debentures in com pliance with the securities laws of such Sla te. Merchant Mortgages under or XI of the Merchant Title Act is Insured Government Marine Loans Marine This amended. as in turn involves weighing avenue the advantages of an underwritten public offering against the private placement- of similar securities with institutional investors. Other possibilities shorter even bank are terms of loans MORGAN STANLEY & CO. GLORE, FORGAN&CO. WILLIAM BLAIR & COMPANY for 5 to 10 years or THE FIRST BOSTON CORPORATION BLYTH & CO., INC. equity financing if the com¬ pany's reserves are not sufficient at a later date to supply the risk capital behind the mortgage loan. EASTMAN DILLON, UNION SECURITIES & CO. GOLDMAN, SACHS & CO. necessary I Total : The Forward Maritime estimate of the sidized lines for MERRILL LYNCH, PIERCE, FENNER & SMITH LEHMAN BROTHERS of the the during the KIDDER, PEABODY & CO. Incorporated Administration's total cost fleet replacement HARRIMAN RIPLEY & CO. Requirements sub¬ next 15 is $4 billion for approxi¬ mately 259 vessels. It is estimated that after construction subsidy the SALOMON BROS. & HUTZLER SMITH, BARNEY & CO. years i total cost to be STONE & WEBSTER SECURITIES CORPORATION paid by the will be $2.2 DEAN WITTER & CO. ■subsidized operators ^billion. The total reserves of October •An Merchant cisco, Mr. Porter before, the Club of the United States and address by Propeller Marine Conference, Calif., Oct. 15, 1958. San Fran-, 23,1958. . company large issue of Aaa for going company obtainable bearing on timing. However, the forecasting of longBy financing at least part of term money rates or money sup¬ each construction contract rather ply is not an exact science. The than first exhausting its reserve recent history of the bond market Not Exhausting Reserve Funds ; tfye financial planner is how much have to raise from outside ,' Variations in the availability of their questions Such some financing in unfavorable circum-t stances. in order to complete its replacement program. One should in a much sounder financial posi¬ also keep in mind that there is a tion than those that are not yet ceiling of $1 billion on Title XI Insurance of which $235,000,000 sure where the money is coming ments replacement programs. One in can. a solicitation of an offer to buy any of these Debentures. offer is made only by the Prospectus. ' : group built under be * investments :..may> provide offer to sell nor The problem for most companies although some fortu¬ nate companiesr feel that their present reserves are sufficient to cover oper¬ up order to obtain Title XI Insurance. accentuated the of al¬ re¬ question said—the best Recent, legislation, per m i t s the investment of 50%.~o£ the reserve asked the - placement vessel rather than pay for the ship wholly from his has costs worth . ment's insurance commitment vessels, and from outside financing. It seems clear taking into consideration the sidy new before —from sales of Government's a to reserves increased tanker profit, the Administration has . depreciation present question best can . which have Merchant Marine Act require the - basic that surance hedge against further inflation in The fir ship construction:, costs.; Also by necessity of raising outside, nancing of the replacement pro¬ /conserving, a. substantial part of capital as the program progresses gram- for the American Merchant its/reserve funds the company is which is the plan that Grace; has Marine is similar;, in this respect always in. a posititon; toput its put into operation. ' / « to that of the airline industry for 25% .share of the cost pf the; ship its replacement fleet of jet air¬ as required to obtain Title XI 'A "' ' Timing' ;; liners. * Those, 'companies that Insurance. Since this 25% cannot Under Title XI as now written covered their four year forward be borrowed, a company that has the application for Government contracts for • this new its .reserves might be type of depleted Insurance of the Mortgage Loan equipment by obtaining commit¬ required to seek common stock , outlines the advantages of public private placements and the role of the investment banker. Merchant Marine bonds; and provisions A the the the for the replacement fleet; reviews the successful accept¬ present annual cash throw-off in dividends. These figures indicates of Grace Line's "first venture into Government Insured The is when of finance; is when market are favorable, earnings the five years 1953 through 1957; and prospects are good, and well of approximately $4 million after, before necessity forces the issue— readily compete with other government obligations. He" antici¬ pates over $1 billion needed by-operators in the next 10 to 15 and remains time average permits government insurance of bonds purchased by private sources, the investment banker opines such bonds should ance there approximately $24 million and Porter. Now that :the changed Federal policy years yet passed. legislation * is desirable since it would give the financial planner more flexibility, finance. an as the Although tion subsidy and National Defense features) for its replacement pro¬ gram against existing reserves of , _ opportunities in the shipping industry the need for investment banking financial planning are. discussed by Mr. estimate of (before the deduction of construc¬ v./; _• The latest investment and an public $370 million struction* it has not WHITE, WELD & CO. page 34 10 The Commercial and Financial Chronicle (1774) take Ave We Now in the Foothills place stagger imagina¬ the tion and will stretch can's fantastic capacity to produce Total population in the United- By States will go up 27,000,000 during the decade of the '60s. This in¬ After of 15% in the nation's pop¬ will make of the United crease LEO CHERNE* Angelo ulation Director, Research Institute of America, Inc. Executive York New On the occasion of the New York City States ' 200,000,000 there Commodity Exchange's Silver - ■ Mr. Cherne ascribes to business economist and consultant locates our economy as this. not just the generation that a world modities the and which the hope for a broader Commodity Exchange was founded peaceful future. and this year in which it cele¬ almost 40%. world a of i change from the pervasive pessimism of 1933, the lim¬ ited hope for business recovery " ~ spreading continues to economy, a world with improved business are of the kind that portend substantia} improvement still to come in the stagnating months ahead. trade, and the growth of a ance thousand i the f 1 o goods w Leo M. Cherne .of international bound¬ across aries. Now, 25 years later, the American capitalist economy is the world's strongest, the choices it offers are the world's greatest, and the vigor of its participation in the world economy is the cor¬ nerstone upon which so much of Ihe freedom of the world depends. It is,appropriate indeed to look at these 25 years and those which lie before us on an occasion which honors the the Silver Anniversary Commodity Exchange. of It is in the commodities that and we the most see essential expression dynamic capitalism. In this exchange of the most vital comof *From talk by Mr. Cherne before Commodity Exchange 25th Anniversary, New York City, Oct. a, 1959 a the New York of growing services. His mar-; The ;' by 1970. * Consumer. income which is 'now winter months when push. New orders handling equipment, for industrial the of rise, our economy that need an increased supplies are also on invariable harbinger spending for heavier the coming industrial goods within months. The Research Institute's of company spending plans for early 1959 further indi¬ cates strong upsurge in capital expenditure next year. own survey Impressive of business as are the evidences they pale before the certainty that confronts the American economy during the next 10 years. The American economy is now in the foothills of the recovery, Fabulous '60s. The sheer dimensions of the growth that in the substantial American will than ter the typical family be Vatican ordinary 1970 what it is this year. These are only the bare bound- 1 aries of the Fabulous '60s. came Anthony H. the syndicate Lund, a on will The Kuver to partnership. a proceedings. It will also include . In of the Convention. ATLANTA, Watt has Ga. & manner, bearing. : , 4* "It is with great election H. {Special to The Financial reservation preferred position in this outstanding issue of the CHRONICLE. Closing date for copy is a are , ' : following message' •••' , . ' ; ; pleasure that I have learned of Pontiff of - the your now connected v.,.- > as / well.' with other Americans in extending my: elevation to this high office. on your of your endeavors are, success ■; / , My I am .. ' LOOKING FOR THE UNUSUAL ' • ' / ; Beautifully Bound Set of / Commercial & Financial Chronicles, 1926-1945 ith Goodbody „ ; ■ ■ ATLANTA; Ga.—Walter G. Mil¬ ler, Jr. is now with Goodbody Co., 59 Marietta Street, Northwest. - (Snecial to The Financial Chronicle) - now with Westheimer & South was formerly with Irving Weis & ; Company. Salle Street. - Available in New York City—Write or Phone REctor-2-6570 ' Edwin L. Beck rr , Co./ 134 La • ~ CHICAGO, ill.—Harry J. Diacou.. is r . With Westheimer Co. ; \ Chronicle * Catholic! Roman Messages of. goodwill have been received from all the of-foreign governments and people of prominence t "j' with/ First . ! heads Oliver/ (Special to The Financial Chronicle) Place, New York 7, N. Y. cabled the follows: ;; <;* <, Chronicle) / Southern Corporation. Dec. 1. Space in This Number. as certain, shared by men of goodwill everywhere." Two With First Southern \ , Regular Advertising Rates Will Prevail ; ■ - Co./,. 11 Marietta St., > of the himself with ; Supreme as Church.* I join Northwest, members * of the New.r ; man a concern besides being modest and approach¬ Pope John XXlil, "Your Holiness: added to. the; staff York Stock Exchange. He is likely to Eisenhower congratulations J. R. Miller and Robert F. to Robert < G. — more affairs, it is felt. President " been of Courts difficult period, , appearance; he is robust looking and affable in;. speech and Exchange, '•}. Following this, he be- ) a very ' Stock Chronicle) than more Holy Father's elevation is being received with member of the New (Soecial to The Financial diplomat in. the service a of candid photos taken during the 25 Park postwar years. international Exchange. Stock r • the Church's internal interests than to devote himself to Mr. Kuver. will become ' the/Vatican"s diplomatic delegate in Bul¬ as pastoral mold and i$ Nov. admit Herman j in this field. He served from 1925 until i . 6 a approbation throughout the world. Vice-President of New York • Papal Nuncio to Paris during the hectic Amott, Baker & Co, Incorporated, 150 Broadway, New York City,v of the success late in 1944 of manager department, 6 will become -a garia, later in Turkey and France. Courts Adds to Staff V prehensively cover the Addresses, Committee Reports and related news developments of the The Commercial & Financial ?. v of the Roman Catholic Church and has known and Anthony Lund to Be Amott, Baker V.-P. publish its all- space the balcony of on t,of Rome and-Sovereign of the State of -v best wishes for the Investment Bankers Association of America Convention Issue. This edition will com¬ For City."- Expenditures for development alone will likely exceed $20 billion each year by 1970. The money industry invests each year on new plants and equipment will be double in important advertising Dec. 4, on •'''S Pope John XXIII has been comparable. research York of America Please rush your his L as (pajtfojficJfyntiff 7 tl^ Basilica/and; before the multitudes of the * of the Province does Industrial growth will obviously'- ' V :; of the New York Stock Investment Bankers Association for XXIII'V West, Primate ofTtalyr, Archbishop and Metropolitan 1970, two out of three of America's r f *on Nov. . • Pontiff of the/Universal Church, Patriarch of fn;_th,e„-. Supreme living.' By/ the of Hemphill, Noyes & Co., 15 Broad Street, New York City, members of the course Cardinal Lord "John City gave his first blessing "Urbi et Grbi"^tb the rise standard To Admit H. H. Kuver Annual Convention Issue - 11th increase Hemphill, Noyes & Go. 47tli Convention's the Ciiy of Romeandiatheworld. ; able in I multitude on A The Catholic world of one-half billion souls once by a third in con¬ disposable income compared * more was, with a spiritual leader, "Bishop of Rome, Vicar with a population increase half 5 of Jesus Christ, successor of the Prince of the Apostles, i that amount provides a certainty . An Exchange. On Dec. 18, the CHRONICLE will Reverend chose The newly elected Pope appeared Peter's Eternal , . just over $300 billion will probably exceed $450 billion by 1970. ; St;; , today. in output during the for materials successor to bear that name since the death of John XXII r l on 60,000,000 households will live bet¬ will Most Gross faster presence pace the Roncalli 1334.'' * billion members , Eminence Guiseppe haibe" ahclvbecamd the way to $500 billion by. the end * of next year and will be nearly disposable elected ; , day's voting by the 51 - Cardinals, in automation. of customers ready to buy. The heavier ordering which has taken place means a the trade of the world's most vital creative been up sharply and enthusiastically report has exhibitors against e l'S at the trade shows in recent days age National Product will be well $600 was world-wide Church. unofficially set for Sunday, Nov. 9; ket and labor force will go a gi'eat increase in the total output of and of^ the head, as Pope John XXIII will be pro¬ $500 Billion GNP in 1959 goods was sumer Thus, for example, the attend¬ va¬ rieties of barI* of tions the Along with this Evidence Venice, Nov. 25 next and is the 262nd Supreme on the third on Angelo multiply. Especially heartening is that most of the recent indica¬ American the are of tnese young adults 1970, and it is they who will provide the bulk of the labor for Oct. 9, 1953, on to rule the destinies of this Pope John XXIII - of There will be over,: more /. the consequences by receding recession of evidence but / ballot i>u,uuU,00u force Patriarch Catholic-Church. old years Since this is the age- found indeed. moment, some of our economic muscles still ache, with the cramps of a ; 77 byL Pontiff marrying, the building and buying and furnishing, and is responsible for most of the family growth, the economic Roman the the. between 20 those of Roncalli, :: and deep public interest, Tuesday afternoon, Oct. 28, 1958 to succeed on years, home this At anniversary. It is Recovery Traces brates its 25th 10 same of suspense Pope Pius XII, who died more the week a Guiseppe chosen group that does the now genuinely can in year than more and 29 years old will increase Anticipates a $500 billion G. N. P. in 1959, $600 billion by 1970, and a doubling of new capital investment in 1970. It is In with people by 1970. But population explosion significant than a far population being in the foothills of the Fabulous '60s and indicates some of the dimensions of growth that will "stagger the imagination and will stretch even America's fantastic capacity to produce." divides is is that commodity trade the creative phase of dynamic capitalism and optimistically depicts the current evidences of business recovery that "portend substantial improvement still to come in the months ahead." The Anniversary, nation a Thursday, October 30, 1958 . /' : WILL REIGN AS. JOHN XXIII • Of the Fabulous 1960's? . CARDINAL RONCALLI IS NEW POPE Ameri¬ even . He c/o Chronicle. 25 Park PI. N. Y 7 V, Volume Number 188 5790 . ..The Commercial and Financial Chronicle (1775) makes Belt ine it possible for an operator perform correctly each step in relay, asseynply or fabricatiori process; just by following precise oral instructions, delivered via a .small transistor receiver, and a listening device. This guidance Convey#! of By DR. IRA U. COBLElGH has Enterprise Economist swift review of a company uniquely 'upgrading office efficiency. quite advance a — A 1949 to ne . proven faster and more effi¬ cient" than having the operator keep transferring his vision back effective. in ;and forth from printed instruction i sheet, to the assembly. adapts itself to a AIMQ - broad variety of unmatched dicta¬ ■industrial and governmental uses old. Copyrighted back in 1906, it technique—an electronic boon tor*both individual and group in¬ to the two and a half million sec¬ referred to a "business dictation struction .and direction.- 77, machine manufactured by the old retaries in the United States. Dic¬ Since 1956 the company has enG fflu mbia taphones may not improve the 7; ; Gr a m ap hone 7 :boss's<" disposition 'but "Tillie" Joyed expanding sales of the "Cor¬ vette" bf its line, its Dicet portable won't have to spend so many hours Ctf. This hist- ^ recorder. This attractive a week putting up with it! He.can Voice chine, in turri,77 little receiver is truly portable. No now dO all his dictation- when she's was^ a refine- J* .•bigger than a home m'ovie camera, 'ment/of The name Dictaphone is 52 years$ and present an tion . .. . to $36,000,000 in .1957. in per share tion The net of Mr. C. K. 11 Woodbridge, (ad¬ Chairman, and Mr. L. M. Powell, justed) has .been equally, impres-r* President, -has been; outstanding, sive—from $1.07 in 1949, to $4.38 as evidenced not only by the con¬ in 1957. (Net per share was tually highest, $4.-76, in 1956.) tinuous ac¬ in out in annual cash past decade was also 1957-as result stock the ill ad¬ an unusual group of men and leadership in of, attainment There many split in which of achieved made by promotion and selling. Board of Directors is com¬ posed of amounting to 4-for-l a a The distribution approximately 36% of net. results advances line, but vertising, interruption since 1926, with the technical product dynamic Dividends have been paid with¬ average the therfe lines of endeavor! Dictaphone has fidt only secured commanding portion of the are pow 570,000 common shares a outstanding, preceded Only by $4" American market, in its field, but million in -long : term debt and is moving rapidly ahead elsewhere 12,208 shares' of 4% preferred ' through; subsidiaries in Canada ($100 par).- Patient stockholders.; and England, and distributors in here;have market seen value in 1949 to their shares rise in from a low of 62 • . countries it's because high of $62y2 irr 1957. a other of the world. (If it doesn't do business in Russia $4 they've had too many Present quotationr is around $51 "dictators" there T already!) l While the major business ;of the tdt^^w^jpikwbut two pounds ill with a $1.20 dividend indicated. ; It is a pleasure to review & ouncesj runs on a battery arid company is in dictating machines, •V The recent recession has had its company such/ as Dictaphone Ipaclcs enough magnetic tape for an by Alexander ' effect on business at Dictaphone ^which is, almost a copybook-exDiCtaphohe Cgfrporation^is also the fliqur'5 irecording. It's a magnifi¬ Graham Bell largest and oldest manufacturer of •since its sales are sensitively re¬ ample of a successful and expand¬ cent /travelingr companion, great and one Ghaff.: ^ ■ lated to the rate of general busi¬ ing corporate enterprise. recording equipment fpr industrial For its -fby on-the-spot usep especially for and government use. «It provides Taanter, Which V ness activity and levels of capital 3,000 employees, 1,700 stockhold¬ .-business orprofessional people produced the 7 !»buftd ! recording.. equipment for spending. Thus results for 1958 ers, and myriad customers, it has 'who move around a lot. Starts and oldest recordare expected to fall somewhat be¬ mdnitoring rddio broadcasts, tele¬ performed long and well. And in stops at the press of a thumb. It i ng we n ayy ' low lifol figures. The future, how¬ the area of office phone' recording and ; air -traffic management, It /can ;even be rented now on an h a v e of the contrbl; " and has Specialized 'in American ever, of this research minded, and has done a unique job in stream¬ Express Credit Card, human voice. magnetic 1 tape recording. Dicta¬ like a Hertz car. enterprise Pick a Dicet up aggressively managed lining the flow of correspondence When you phone recently received its larg¬ appears excellent. The company in one city and drop it off in anfrom the mind to the mail chute. turned the crank (by hand) on est single recording machine order has three plants in Bridgeport, other. Dicets are also standard this primitive prototype,; words from* Civil Aeronautics Adminis¬ Conn., four in England, and has equipment for in-flight recording spoken into the mouthpiece cre¬ tration for 452 Dictatape record¬ just opened a brand new plant in by passengers on Capital Airlines. Guardian Sees. Co. Formed ated vibrations in a diaphragm ing machines and 175 transcribers •Concord, New Hampshire, for the From the foregoing, you can get that moved a stylus up and down (for use in traffic control towers manufacture of Dictabelts. RENO, Nev.—Guardian Securi¬ a pretty good idea about the Dic¬ cutting "hill and dale" grooves in at commercial airfields). In common with most "growth" ties Company has been formed taphone product line; but perhaps a wax coated drum. The latest development at Dic¬ companies, Dictaphone emphasizes with offices at 140 North you are unfamiliar with the quite In 1923 Dictaphone Corporation Virginia research and taphone is AIMO (Audio In¬ development and remarkable growth of this com¬ was Street to engage in a securities formed as a separate enter¬ structed now has Manufacturing Opera¬ nearly 100 engineers, pany, and the splendid financial prise for the development of dic¬ scientists and technicians in its business. Officers are William B. tion), a revolutionary new method results it has achieved for its long tating machines, witn Mr. C. K. of providing ta$ed voice instruc¬ term shareholders. In each of the research and engineering division, Mead, President; George C. Wood¬ Woodbridge (now Board Chair¬ busily at work on refinements of tions, rather than printed words ward, Vice-President and Assist¬ past nine years, net sales of Dic¬ the man) as its President. It produced or present line, and ideating the diagrams, to manufacturing ant Secretary and Raymond H. C. the first experimental electric dic¬ workers. AIMO was researched taphone Corp. have rbaehed a new products of the fu+'^e. tating machine in 1936. This Management, under the direc¬ Bissell, Secretary. jointly with " Westinghouse and high, rising from $12,800,000 in worked so well in actual operation hot; abound!-' ;a% cruder . onein-7 vented in 1881 • ; , that, with some placed was on modifications, it the market in 1939, moving the company along the high road to outstanding success. This 'All the while, however, the com¬ sought an improvement on the wax cylinder; and in 1947 it ^revolutionized the industry with , pany its introduction of the Dictaphone Time-Master- dictating machine and by replacing the cylinder with the-, sensational new 15-minute Dictabelt. This plastic endless belt offered obvious advantages: vis¬ ible tone grooves allowing -the user - to find his place quickly; sharp and clear playback; nonerasability; and far more comcpact filing and mailing.•••• / . offer to buy . any ' ISSIE ■ offer to sell, solicitation of or as a an of these securities, The offering is made only by the Prospectus. -■v'/1 > NEW is under no' circumstances to be construed as an announcement v; : . . M' . ' ,*»■";», ' ; .. October 29, 1958 V - . 300,000 Shares .. Finally, in April, 1958, thCre was offered in automa- the last word tion-^-the Dictaphone new . Time- Master with touch-button control. Common Stock Transistor actuated, this marvel of electronics and phonics is' ready for action the moment you pick the "mike"—no time needed. Touch "warm up a :K. No Far Value + up" button and record, hear the playback, correction, or indicate the length of a letter, instantly; Load¬ ing and unloading the Dictabelt is you can make a idone automatically — just by This dictation also pushing a button. unit is matched' with transcriber ter also for transistorized button control (the a Time-Mas¬ secretaries/ — with touch transcriber not which adds the secretaries!) AH of to effortless dictation and swift perfection in transcription. up This Dictaphonic dream is all does quite wonderful it offer over the Copies of the Prospectus may be obtained in any State in which this announcement is circulated from only of the undersigned or other dealers or brokers as may lawfully offer these securities in such State. such machine but what old fash¬ Merrill and her note¬ deal! The com¬ ioned stenographer book? A great pany estimates that a $10,000 a year executive will save at least $1,000 a year in company time. No longer will the secretary be called in, pencil poised, only to sit around while Mr. Jones • phone, hems and haws, men¬ tally organizes what he wants to say and gropes for the right words and phrases to implement it. No more "frozen notes," either — shorthand in writing that only the taker caw read; and pure Sanscrit if she's not at hand tcf transcribe! new Dictaphone units reduce. «33fwsyt-; speed.correspondence, eliminate stenographic drudgery, The Kidder, Peabody 8C Co. Dillon, Union Securities 8i Co. The First Boston Corporation i Lehman Brothers Smith, Barney 8C Go. - * \ . White, Weld 8C Co; answers his - Eastman Lynch, Pierce, Fenner 8C Smith Clark, Dodge 8C Go. Carl M. Drexel & Co. Loefcr, Rhoades^fiS Co. Hallgarten & Co. Laurence M. Marks Paine, Webber, Jackson 8C Curtis Co. Hornblower 3C Weeks F. S. Moseley Sc Co. L. F. Rothschild 8c Co. 12 The Commercial and Financial Chronicle (1776) such distrust Is Gold enced Superfluous? Provides leading monetary economists believes it ratio is point of view of the Western World. It is the only fixed point in an essentially fluid world economy. There would be nothing gained if through the removal of (his fixed point the international the is ratio worsen essential — Speaking at the Annual Meeting of the Inter¬ Fund at New Delhi on Oct. 7, Mr. ; Anderson, .Secretary of the Unite d national , States Monetary Treas¬ World stability and provides bled that system —it -which* reasonable seems to assume such a switch over of productive capacity the Soviet by Government would be able to ac¬ quire under i . « S t NSTA f ' '4 ■*) * * Notes the were to be converted into waters. SECURITY TRADERS CLUB OF ST. LOUIS Security Traders Club of St. Louis annual election party, At the the following were named to serve as officers for the coming year: excellent with ' - . prices—even allowing for the international credit. With war Government's existing i and equipment would Mr. Leon's contention is that available for producing since only a small fraction of in¬ goods available for export. ternational balances is settled in Since these goods could be sold gold the entire settlement:might at twice or three times their pre¬ as well be made with the aid of (bstaele of politi¬ maintain1 ¥ ♦ become Communist goods to '»"* tt* ' other to overcome the the « manpower cal antipathy to determination >• i stability Communists the emphatically realf i r m e d his „ • opportunities for fishing in trou¬ cuts that would be made in order ury, . dollar-gold < « gamblers' paradise. This to¬ gether with the weakening of the financial power and prestige. of the United States would provide not for Western » ♦ a opportunity for fishing in troubled waters. less USSR LONDON. Eng. we the markets (2) implicitly"; finance would of forget: (1) "why dollars are international credit in trade and without gold; and (3) fixed dollar-gold that asks writer trusted to demonetize us from essential Thursday, October 30, 1958 oc¬ War? Fixed Point Only fixed A would gold as sug¬ gested by Rene Leon (Chronicle, Aug. 14). Dr. Einzig denies our mint purchase price aids the USSR but agrees that to raise the price above $35.00, as suggested by Keynes's biogra¬ pher, Roy Harrod, would confer a free gift on the Russians. In endorsing our Treasurer's reaffirmation of gold price fixity, "height of folly" for be the dozen a casions since the end of the By PAUL EINZIG One of Britain's half . experi¬ sterling as some on . . dollars than by con¬ more some¬ a consistency he ad¬ vocates in the same breath the abolition of the International dubious what , Fund even facilities credit go Kfinetfc J. Jansen Herbert lb Rutch Ruburt A. Pairii though, its long way towards supplementing the inade¬ Monetary a quate*, gold reserves available for international settlements. /What give gold production he overlooks is that the demon¬ high priority at the expense of etization of gold would lead to a other industries. That in spite of drastic contraction • of private tinuing gold and dollars to - inter- are Such state¬ a ment of was production has such a credit resources available for the high priority in the USSR is requirements of international probably due to considerations of trade and finance. Should gold prestige, considerations of the cease to be dependable for inter¬ this changeable at. $35 per ounce.' Or. Paul Einzig policy gold kind same indeed overdue in view of the recentrcrop of suggestions advo¬ cating 'or foreshadowing funda¬ mental changes in that policy. On the Government manufacturing top priority to the of induced to give tnose which as Soviet sputniks. . national payments defaults on ' would Hend Mr, Leon Manpower and other productive resources in the Soviet Union are risk in favor of raising the official American buying price of l'ully used to the limit of capacity. international agitation other hand, there was a revival of the demand, pop¬ ular during the inter-War period, that gold should be demonetized altogether. gold. the On was expressed article by Mr. Rene Leon appearing in the August 14 issued of the Com¬ and mercial Financial Chronicle. He demands that the United States Treasury should discontinue buy¬ ing gold at the fixed price of $35 per His main argument buying all gold at that ounce. that in voted to gold be possible to devote more pro¬ capacity for the produc¬ of H bombs, or for the pro¬ ductive tion price regardless of its country or origin the United States Govern¬ ment provides economic assistance to the Soviet Union, has strong surpluses to the markets of duction of exportable into dumped World Free the latter view The with much emphasis in an productive capacity is de¬ production it would less If be Answers Rene Leon detriment the to of producers of the Western coun¬ to say the least, open lo doubt whether the change would be to the advantage of the tries. It is, the of and States United Free Perhaps it is as well from our point of view if Moscow is not discouraged from in World general. using a by no means negligible proportion of the productive re¬ command its the for sources at purpose Of course, deserves to closely. more if the United States There is, however, important argument Leon's Rene a much more against Mr. that contention it Treasury were to follow Mr. Har- would be detrimental to Soviet suggestion and raise the of¬ interests if gold were to be de¬ ficial buying price of gold to $100 monetized. He does not appear to per ounce it would confer a free realize the immense importance of gift on all gold producers, includ¬ the limited monetary role played ing the Soviet Union. It seems, by gold from the point of view of however, that the prewar price the financial strength of the of $35 per ounce contains little or United States and also from the no element of free gift. There is point of view of the financial and no reason to suppose that the cost economic stability of the Free of production in terms of manWorld. He cheerfully contem¬ hours and equipment is appreci¬ plates the prospects of a heavy ably lower in the Soviet Union slump in the market price of gold of the increase in costs the price of $35 per ounce cannot be re¬ garded as erring on the generous side. as result a official fixed - of the purchases at a Has it not occurred that, existing price while of $35 a be acquired can also through the export of goods other than gold, and that the Soviet Govern¬ fall in $20 of per the these are would foreign uncovered? lars price of gold to ounce The trusted part holdings dollar why dol¬ reason implicitly is cisely the existence of say leave a pre¬ substan¬ eminently in a position to by reducing the price of its goods available for export to a tial excess of gold holdings over foreign holdings of dollars. Would level at the with ing do so which they can compete goods produced in the free world. The not done cause reason on a why this is larger scale is be¬ most of the output of Soviet Russia is needed to meet domestic requirements or requirements of other Communist countries. If the Soviet Union production did high not give priority gold more written be with the in down the fall in accordance the market Mr. of it not be the United height of folly for States authorities for the United exceeded the British Would Mr. Leon gold like to reserve. see ' the dollar exposed to major waves of • Vice-President: Third W. Secretary: Government and for the American interest in the present monetary role and monetary value taxpayer vested a of maintaining favor gold. Franklin Johnson With I I AUfa.AM*« D... IfflUS III LaWlBllGB OOIIS Cyrus J. Lawrence & Sons, 115 Broadway, New York City, mem¬ of the New York Stock Ex¬ change, have announced that Franklin sociated Johnson P. with investment Mr. Johnson their is now firm in as¬ the advisory department. was formerly a Vice- Jack . , Elmer Jarrett, Newhard, Cook & Co. Wichmann, Stifel, Nicolaus & Company Fusz-Schmelzle & Co., Inc. Richard A. Schmelzle, Treasurer: i Yes, but "It is universally true, in my opinion, that gov¬ strength and social stability call for an economic environment which is both dynamic and ernmental financially sound. Among the principal elements in maintaining such an economic basis for the free world are (1) continuing growth in produc¬ international as well as domestic; (2) financial a tive investment, policies that will command the public, and as¬ sure the strength of currencies; and (3) mutually beneficial in¬ confidence of the ternational trade and effort avoid to a constant hampering re¬ the freedom of ex¬ President of Manufacturers Trust strictions Company where he administered change transactions." — Presi¬ dent Dwight D. Eisenhower. the investment of institutional and individual funds. We Robert W. Clark, Jr. With Burns, Corbett (Special to The Financial Chronicle) CHICAGO, 111. —Robert W. Clark, Jr. has become associated with Burns, Corbett & Pickard, Inc., 135 South La Salle Street. He was formerly with Eastman Dillon, Union Securities & Co. Prior thereto he was syndicate manager for Arthur M. Krensky & Co., Inc. and for the Chicago office of Lehman Brothers. & Incorporated. States de¬ During the whole postwar period sterling has been highly vulner¬ able precisely because foreign holdings of sterling have greatly Yates, Heitner Kenneth J. Jansen, Edward D. Jones & Second Vice-President: Co. The pos¬ gold reserve huge a has created bers Roach, M. Leon's bright idea. session of Scherck, Richter Company. Herbert Woods. terms on valqe of gold. This consideration alorie should be sufficient to dispose of liberately to sacrifice this position of strength? ment is in amount¬ to many billions of dollars. gold reserve would have to The States would be able to pay out in gold all foreign holders of dollars, lars gold inflict would Vice-President: First action American taxpayer a loss under the the United for the of acquiring dol¬ lars. What he appears to have completely overlooked is that dol¬ deliberate depreciate dollars of President: Robert A. Pauli, credits. a Richard A. Schmelzle W.Jack Wichtnaitn Elmer Jarrett of by the United States Treas¬ to ury to increase granting of American price. him to cessation It is Mr. Leon's assumption that Soviet Russia exports gold largely purpose taken the to Cannot Ignore Gold's Importance rod's than in South Africa. And in view attached Finally, of gold production. emotional appeal and be examined debts Likewise the wild fluctuations envisaged by one-hand' there was5 renewed the of risk the international would greatly increase. on doubt whether would be any need to Pres. Eisenhower there for the President or anyone else continuing growth in trouble himself about "a productive investment" if and I where conditions propitious for it exist. Sound "financial policies" and the avoidance of "hampering restrictions on the freedom of exchange transactions" are undoubtedly among the elements which promote conditions propitious for productive are not by any means all of investment, hut they them. One thing which does not help is to pretend such do not—or act as if they conditions exist when they existed. Fahey, Clark Adds (Special to The financial Chronicle) Fahey is & now Ohio—Robert J. Exchange. of Powell Adds to Staff (Special to The financial Chronicle) with Fahey, Clark Co., Union Commerce Building, members With Interstate Sees. (Special to The Financial Chronicle) CLEVELAND, the Midwest Stock FAYETTEVILLE, N. C*. CHARLOTTE, N. C.—Theron T. Kinzie is curities now Corporation, Tryon Street. thur with Interstate Se- / 200 South * C. Blue has — become Arcon- nected with Powell & Company, Inc., 120 Anderson Street. ■ . ■ j Volume Number 5790 IBS ... The Commercial and Financial Chronicle . (1777) { * and destroyed.;^ Can it be done? guise in the new one; When, fol¬ It; calweys*. is,: ,6ir • T^y,r. fcuA ,'if Jwe: lowing «vtbe, * current, ,and; would be "good guys" and heroes, spread "smart" advice, investors we must have bowi wisdom to see the. truth : for it. By HON. WALLACE F. BENNETT * , * \ Utah'* ..'United of the Senator " Republican States • • (Rep., Utah) If Senator recommends government power Instead of recourse to wage-price • and courage ; i ■' : • .r • - are to win the against inflation, what stocks, 1? ; feel alone and helpless. We know «Oinething«nuiSbbe: done—but how and by whom? f Let's return to our Western; for to- fight; he pushes these prices up beyond ; the answer. When the desperadoes '* : "S the breaking; point He did this seem to have taken over the town in '29 and can do it again. When* and the law men can't control the Monetary Controls; Are: Inadequate we flee from bonds to common ■ they desert stocks for real estate,; situation there's always one final prices can go so high that powerful force, the law-abiding themselves.' When ithey these fight When- they break, the.-values will; citizens resources not meet the mortgage, and fore¬ . out of hiding; and form a Well/ law and order- closures destroy the market. This posse of Vigilantes, the good guys Since inflation also happened" in the 20's, and the controls, "Senator Bennett would have the government deny always win. Where can we find is a crime against the value of' or them for this fight and what will upward spiral .has begun again; suspend wage or profit increases Whenever priceievelrose money, we have the central mone¬ until sudi tone as when prices returned to their former level. And it can happen to any man . bring them out?^ < ; tary authority, the Federal Re¬ who goes too deeply, in' debt, beThere, is a feeling of power ;that So long as prices drop r or stay staMe every year, labor and serve Board, It has the rcsponsi-1 cause while at first it can produce comes to simple ordinary people. coital would be perfectly free to divide file producers' share bility - and the power to move the illusion of prosperity, by when they havd a cause, and against inflation by restraining of increased production and productivity in accordance with creating booms as it did in '55 and when they have a Weapon ah their the growth of the money supply^ normal practice. The Senator sees no hope in monetary '56, these are always followed by hands, A simple,; powerful weapon when necessary, putting it in jail, unemployment, with its inevitable every man, woman and ehildr can controls alone, and avers that by making stable or lower prices so to speak. But inflation still has increase in repossessions and use. The need to destroy inflation at every level of many friends, men and organiza¬ production and distribution a fixed public bankruptcies; ' V • ' is a worthy cause and the neces¬ tions with great political power, policy, tbe Consumer would be protected from inflation. sary weapon exists if wer have thd and they can and have prevented Unsupportable Wage and Price courage to use it. What is: the Increases Prosperity, the enjoyment of a described as an attitude, it can be full control of the villain. To rely weapon? A positive«program to high and rising standard of living, achieved only through tangible, on monetary controls alone may But these are, in a sense, limited control prices •>at the consumer has always been the chief eco¬ solid economic growth. The faith be too costly, particularly in terms and specialized disasters that be¬ level, so thatlthey will either stay nomic goal of what we call "the which underlies it must rest on a of unemployment. fall the smart, the unwary or the: level or drop. If this can be made American way firm and dependable rate of eco¬ The Federal Government has foolish. There is a great area in to work, inflation in the form of of life." nomic growth • and expansion. another power, whose effect may Which all of us are its victims Infla,--, price inflation can be licked. A Measured oyer the long pull, we be described as tion, like sin,7 negative. It rests the area of unsupported pnee^Jand /Sounds simple c doesn't it? But is generally' have had such an expansion here on our willingness as citizens to wage increases. By unsupported, A does it aiso-sound;, like; a pipC in America. As producers of ma¬ regarded as anlet the government live within its I mean those wage- increases that" dream, a worse illusion than iri4 terial things, and creators of serv¬ income, ev.ilVto be When, the budget; is bal< are not validated -by increased, flation?^ Let's7check* the facts and ice patterns, we are superb. avoided on' We anedd at dny level, it is difficult productivity, arid those price in—' see. are principle. Ye t imaginative, resourceful and for inflation to operate.; But when creases that are not matched, by; i i Here are the essehtial features somehow t h e courageous. We can' combine art' the town is wide open, so to speak, greater -value.- This is the aspect; of such a program as T see them; arid science, ingenuity and effi¬ and two have got; we force the government to of inflation in which we in busiall tangled;upciency, We have-learned to iise live beyond its incorrie, inflation ness are both the unwitting and; (1) .True prosperity dependg t o g e t h e/r amazing accuracy to produce both flourished, and even the sheriff of often unwilling accomplices, andn fundamentally on our ability to in our think¬ volume and variety. We ought toThis/ keep; on; increasing our capacity monetary policy can't arrest him; the unsuspecting Victims. be the happiest people on earth, to produce. This, idea is expressed, ing. Over the; Inflation is a versatile. thief,, is the kind of crime that wo niust last 20 years, i living*** perma^ah^rbspe^it^,^ : who/can work in many fields of someday stand and fightagamst. - in the phraso- "rate of increase.in inflation -h as' productivity." It is not measured; : Instead, for a J generatipijflve crime, He.can be the world's most I know there are millions of proven the r; by what, we have produced. or have constantly been bfesset' by successful confidence man, and Americans who are beginning to consumed I in, the more "consist-w«H*ee F, »past.< and cer-; fhars, swinging between We- poles the meanest pick-pocket. When recognize this evil and who are ent and durable of the two. While of boom and tainly not by the volume of d61V gloomy uneasy and people try to flee from him in one becoming aroused to meet its we have had periods of recession, uncertain. Continued on page 29 y ■ area, he meets them in a new dis¬ challenge.. But all. of us seem to when prosperity disappeared for The Riddle of Inflation a - time, inflation has flourished steadily. This has led to the be¬ The key to this paradox is in¬ This advertisement is neither an offer to sell nor a solicitation of offers to buy any of these securities. lief that the two are inseparable. flation, which is as much a mani¬ The offerings are made only by the applicable Prospectus. Some accept inflation as a neces¬ festation of human weakness as be used to end inflation. do are come have? we on our side; v . , > price-we must pay for pros¬ prosperity is of spiritual strength. perity; others have come lately to And the trouble seems to come regard it as a positive benefit, a when we face the job of translat¬ part of the formula for greater ing material values into money sary October 29, 1958 NEW ISSUES ; cv. prosperity. values. We, who are practical, knowledgeable -and hard- headed when we deal with things, become damage it has done to other econ¬ as children when we deal .with today, fortunately, more and more Americans, aware of the But omies their own lifetime, are; money in The Hartford Electric naive, soft-headed and magic. ' We: accept — asking what can he done to pro¬ believers Light Company $18,000,000 in without inflation; money as wealth, When it is only They realize that inflation is a an artificial means to, measure malignant disease Whose danger¬ trade and store it. Believing ous cells can grow and expand at money is wealth, we can be per¬ an ever-increasing rate, until they suaded that we can increase wealth duce prosperity normal by. off the sound and choke of growth from which: healthy prosperity comes. Or, to change the simile, they see it as a deadly habit * forming narcotic which produces the illusion of prosperity, but whose destructive dosage must be constantly in¬ creased to a point of no return. cells expanding 4%% First Mortgage due October 1, supply of : particularly in the hands money, Of consumers. Fe d e r a 1 the And . because Government Price 99.25% the plus accrued interest from October 1,1958 creates money, we can be made to that it, and not we, can believe create prosperity. Believing backs on this, the We substance turn of 100,000 Shares 4.96% Preferred Stock our pros¬ relationship of perity, production and productiv¬ prosperityiand inflation? Are they ity, because they seem the hard partners, or antagonists? Are they way, and reach for inflation, the inseparable, or can we have pros¬ shadow and illusion, the counter¬ perity free from inflation? If we feit, because it seems the easy can, how can it be achieved? way, the promise of something for nothing. True, for some people, Defines Prosperity and for a limited time, inflation First, Awhat is prosperity? Es¬ can be profitable. But whatever sentially, prosperity is a feeling, they gain is stolen, not created, an attitude* a frame of mind. It stolen from the past 'and future exists when we have faith, faith for the temporary present, stolen - What is the true 149,633 Shares Common Stock (Par Value $25 Per Share) our standard from the weak and helpless, the living is rising and will rise old and ill, for the greedy and steadily in the future, as far as we rapacious. can see the future. This feeling Far from producing more pros¬ satisfactions the when we feel sure that that our Holders of the Company's outstanding Common Stock are being offered rights to $56 per share for the above shares of Common Stock at the rate of one share for each ten shares of Common Stock held of record at the dose of business on subscribe the productive Time, capacity, to produce and achieve is distorts the measurerhents of prog¬ also going to increase. It is sus¬ ress, and obscures as well as tained by our enjoyment as con¬ stunts the rate of growth. It makes of the necessities, com¬ its presence on but tection loved ourselves for and our against the risks and ones accidents of illness and old age. But although prosperity "An•= address tbe American Association, 7, by t Sen. Hardware Atlantic can Bennett be before Manufacturers City, N. 1958. JL Oct. its , any unsubscribed shares and, both during and following the subscription period, may offer shares of Common Stock as set forth in the Prospectus. felt in different ways forts, and even some of the ex¬ in various aspects of the economy, travagances of life. It is particu¬ larly rich and strong when we feel that, by self-restraint, saving and sacrifices, we have provided pro¬ Subscription Warrants will expire at 3:00 P.M., Eastern Standard November 17, 1958. r agreed, subject to certain conditions, to purchase The several Underwriters have power sumers at October 21, 1958. perity for all, inflation warps and thwarts (Cumulative, Par Value $50 Per Share) Price $50 per share of come • plus accrued, dividends from November 6,1958 and confidence that includes Bonds, 1958-Series E, eventual effect is Copies of the applicable Prospectus may be obtained from any of the several underwritersy including the undersigned, only in States in which such underwriters are qualified to act as dealers in securities and in which the Prospectus may legally be distributed. always destructive. Are prosperity and inflation or antagonists? To use the symbolism of the so-called adult. westerns, prosperity is the "good guy" and inflation is the "bad guy." As in the pictures, the "bad guy" is often mistaken for the "good guy,"- but. if the story is to have a happy ending, he must be discovered, unmasked partners The First Boston Corporation •'.'*. - ' . .. Chas. W. Scranton & Co. Putnam & Co. ■ . * • * , ' U! 1-5 O ■ The Commercial and 14 courses .in; physics, Unscientific forecasting in the mechanical engineer- ] field of economics and widespread ing, v mathematics; history, iecoacceptance : of such forecasting, nomics, philosophy, and so on; or, „ Some of the lack of science which for emphasis, science in physics, is common in the field of eco- able Thursday, October 30, 1958 8PAHR By WALTER E. Executive ™ '■ Vice-President, Economists' National Committee on Monetary Policy, New York City Professor Emeritus, New York University * and which economist quizzes ; as misuse Common are those professing ..."science" '•. " V ' ;; . •■•••• • - to the meaning "83% in U. S. Found to Favor Science," The. New York Times (August 17), it was reported that "Mr. Krieghsaid of the persons that 'the is bet¬ world ter off because of cent per others the 41 who said. / ence Only 12 cent, how¬ ever, said sci¬ per entists Walter peculiar people. E. Spahr Classification were than the evil for responsible directly ' of their discoveries. uses flowing from pursuit of. designed to obtain truth; per cent thought those, pursued the methods Of sci¬ were generally: odd and; methods that " per > + rather description of methods truth a common reaching of scientist? were generally 'odd and peculiar people', Mr. Kreighbaum said." The and tend to force instructors; pen. those fields into scientific}, techniques; but such so on students and highly to the report, "The of science, Examples appear daily many such students, and faculty,. magazines, seem to have conducted ... by the in our newspapers, relatively/little Survey Research Center of the other publications, and in conver¬ understanding of the nature and University of Michigan"; the "sur¬ sation. For instance The Saturday implications of science as is ofteh vey report was issued last week Evening Post of March 3 published readily observable when they disby Hillier Krieghbaum, Associate an article by a distinguished mem¬ Pijofessor of Journalism at New ber of a graduate faculty of one York University"; and the, "Rock¬ of our universities under the cap¬ tion "Science vs. The Humanities." The A correct description The ment ence (Adam and Charles Black, London, 1911), 3d ed., Pt. I, Physi¬ cal, p. 12: science is universi¬ of unlimited; its material is endless, every group of natural material. facts sees of The man who for - . ....... College and university logues often list "science" the from tion, or humanities, or educa¬ other subjects. - some for the Reasons common kind whatever, who any their mutual relation and de¬ scribes their sequences, is applying the scientific method and is of science. scientific alysis, unscientific or an¬ since are the those and by which truth methods of in any field is obtained, a question arises as to why the common prac¬ tice exists in this country of de¬ to the the past history of mankind, to social cities, a man to statistics the of our atmosphere great of the mpst distant stars, to the digestive organs of a worm, or to the life of a scarcely visible bacillus. It is not facts less of how imperfect his method¬ ology themselves which make science, but the method by which they are dealt with." (Italic in the original.) It may be doubted that any scientist, who has written a treat¬ ise On the nature and implicatons may be while the historian economist who understands and follows "the methods regarded The facts may belong as a arises from small percentage ever of science an ^oDoosfte tuined :anr an opposite by headlines which state that Mr. oir-Jones-"sees" a market of certain v/ Many of the common procedures size for X products next year, that; in .advertising should, be sent on i standing of the limits of precise cent in .the purchase of liew per . J. « -»■ 4L a a«r4 /mi i n v> developed have much in common with tlie seers, prophets, and crystal gazers not under the of ancient and mediaeval times, courses,, appar- the 1IL'" *1 i nrA-> 1lim - * •, If college a staffed follow dents and to be university were or scientists with the our scientists very sonable institution answers pose of is hardly the proper puran "educational" institu- tion. It /:• seems thor that our sities, their administrators and staffs,, and theif students and graduates fall far below the level of trained scientists who practice and we fulfill the re- J. Some of the consequences of mis conseauence«i ot.mis-■ Some*of seems the inde¬ com- mbnly characterize them. Instead the au- colleges and univery methods humanities should be for Failures ments. Proved m an^ ;' - be-a greatly imsneak- mlitv in thinking 'wrjting such as "must "-and" "inevitable" ascertaining every is tryth su- respect to pursuit lead to erron- Words cannot be fa'ct Gf by concept cann^ be the ^ru^b as - • ^ . an awareness state- of form distinguished from scientific definition, be obtained from a p0r £0urce single example, mark . themselves>' as non^cjentists. - - Those who - aip Pemocryts, or Republicans, or Liberals, or ■ Socialists similarly remove themselves from the cateS°ry of scientists in economics. ^rXaS to the nature oi science In this country, particularly since the emergence of the Roose- science , velt New Deal and and of tbe scientist is many . movement Mr them occupy the jn field of economics , It be a is the scientist to confirm ; v: . - . pjnauy a study of the principles spi-pnpp should make clear the methods of science that humanity |mproves its state of well-being. have " Walter G. Schallitz pressed forward and have brushed and on should curacy theories of the 1930s, a very large have a many pf political the meaning of the ac-» of Pearson's principal con- treatises the Keynes tentions. positions appropriate for scientists only. Cliques and political groups subject to until verified. But it i$ the opinion 0f this author that a jQng and carefui search of the auestion ...portion, of our. economists - seience othervvise than unfortunate.' ^at ad^ jpent to ; gbould Ttiere precise involves seience" description. nothing in fact what is not proved and alqicle may properly be acprovable. He may not have a ceptecj as anything more than leader whose theories he accepts.; alleeations of this author; theif Those economists who have accuracy should be kept in the classified themselves as followers area of qUesti0ning until verified; of Marx, or Keynes, or Smith, or Th mintPfi ctotP1npnt of Kari the of Since that standard of behavior requires that the scientist stand alone. He may not accept as science side, answers, nature sin^e , . alom. - , herence the results of the widespread failure to understand eous , stand to of the fundamental requireof science is , that the one nature pf though oiped science Because pursuit of correct methods consideration. ;; 1 Marshall quite clear to this of methods which and would,, be methods which lead to erroneoys perior in something else, prevalent. so -^h^re-Wouid^ prophets publicize what they. claim to see in the future, and gradu-- scientist question everything, unique in this country. It would be educational in the only proper sense of that term since pursuit pf would or and scientists, it seems reato suppose that such an educational that if the fensible classifications which "science" of the stq- ated only universities had had such training our cQllege and university catalogs of methods if it trained people colleges and present i Our con- sponsibilities of science. a our suppose hardly who that of studied the nature and to in high now • discussion, the fact administrators of subjective this practice principles of science. It also reasonable is nonscientist? It seems clear that have ^nVdhoturnediir though it had some value, is illustrated almost daily;: in our press have such enter science Since all things lend themselves or not may because sistently error sci¬ classifies * - degree—upf >» rather _than .their alleged foresight is', pubhouI'd be confined to the limits application of the methods of set- lished, hawked about,, and scruscience The" commonly-used cata¬ pnee, seems to be the dominant tinized as though this species of. wor(j;. «feer should disappear as r„; pretense were worthy of serious a synonym for believe or observe apart procedure. unneces¬ scribing such fields as physics and chemistry as "science" and of over¬ looking the fact that science is a ence. The unity of all science con¬ matter of methodogy? Why is a sists alone in its method, not in its physicist called a scientist regard¬ material far values private support phenomena, every phase of social life, every stage of past or present development is cedure scientific science field our [National Defense ently generally, are Act of 1958] will control of scientists, Education that minds converts all facts what¬ The of one smother science and .education by to science. history, as AlniYiV "The bill said "Now this is the peculiarity of fields sucii " ^ . ties in which he is alleged to have scientific method, that when once it has become a habit of mind, into p. president of sary." been described well by Karl Pearson in his classic, The Grammar of Sci¬ soever in t , 15877, quoted a state¬ from a former outstanding gust 13, making of science nature of science lias And Congressional Record of Au¬ of nonscientific attitude. f widespread acceptance oi unwarranted pretense, - as The in, According survey." The preceding is illustrative of a pommon practice in this coun¬ try of classifying certain material, or fields of activity, as "science" despite the fact that science is a question of method—the method by which truth is obtained. which, offered as valuable or reuabie or interesting information a survey was efeller Foundation provided $80,- much'material of though , sion which exists as to the nature 000 to finance the iication ' is not the1 confu¬ example of are answers practice^of^forecasting of whidi.fah^put- by side the bounds of science. ..These ob-. forecasters reveal that they, either understand the meaning of college or university. science or that they choose not to or opinion> may fall far short of has no valid excuse for existence fulfill the responsibilities .pf ;.sci-. meeting the.. requirements of except as it pursues the methods entists. Many, of,, our: .economic scjence, An editor trained in prinof scence in all the fields in which /forecasters step far outside y the cipies 0f science should have no courses are offered. This means limits, of science and' assert*; that * difficulty in distinguishing the that all members of the facultyf .this or that will happen, as though writing of a scientist from that of should understand what the meth- they can see into the future, denonscientist: >And* since the, ods of science are, should be sci-> spite the simple fact that no man fitter,' by definition, utilizes a entists, and ■ should trains their, livings today has ever lived to- methodology which does not prostudents to be scientists.;: -There, morrow or can see what fornortruth, a question arises as to would appear to be ho logical.rea- row—jf, indeed, there is ytomor- wby nonscientific writing is pubson for graduating any student row—may bring. Such people, who iisbed. There probably are many , from a college or university who. in this respect ' are pretenders, answers, but a fundamental one has not demonstrated that he is a seem not to understand that sci- WOuld seem to be that editors who scientist in his method of an-^ ence is a description of past events utilize such> material either are; alyzing problems and related data, and that it recognizes no law of unacquainted with the principles These standards apparently arenecessity in the,recurrence of any pf seience or have chosen not to: not-the ones generally followed observed regularity in a past se- adhere'-to-them..i:r in our schools. Relatively few col— quence of events. Science deals v _ .. * leges and universities even offer "with probabilities stated in ■' the Gains to be .had, from pursuit of courses designed to acquaint stu]|ght of experience with recogni- *\- methods of science '/r o¬ dents with the nature and impli- lion of, the fact that such .probajf is by utilizing the truths cations of science and with their bilities, so calculated, may not be established V/by s scientists i that responsibilities as scientists.; Ap-; pjrqjected; into the future as cer- humanity ; progresses, to higher parently few'-administrators and; tainjties. For this reason the words standards of living; and satisfacmembers of the faculties of1 co'l'v ^\yiU'/-.:and.^"must" • and I: "ineyi- tions. • leges and uniyefsities. haye;. hadr; table,"; often used by our non- ; ^o the extent that our-publicaa course or : otherwise'.vbeen; scientific e c o n o m i c forecasters, tions /.produce the opinions pf; trained in the principles' ofsci-; gnd others, fall outside the bounds scientists, people are: put in a ence. '/■ " V./:■£''? °£> science.,, A . position to profit from the truths This author has- never seenja* tThe widespread lack pf under- produced by scientists; and truth, college or university state that its5 standing pf -the. nature:, apd re- by scientific definition,.is obtained; purpose is to train and graduate* quirements of science is also illus- jn no other manner.^; : scientists. The result is: that the? tjrated bj; a common practice of .:- The products of the work, pfcourses offered and the training- searching and paying for the ser- scientists open the. way^to \acgiven in- our coUegeg ajtid unlv6r«^ vices of economists who make un- quaintance with correct; classi.fisities are in .higH.(degree|^qrrfof; scientific forecasts. T 'ose who cation and definition—-foundationsthe most part, a hodgepodge*-im seek or pay for such forecasts ap- of scientific analysis. ^ / which the subjective evaluations parently do not understand that ■ ;■ utilization of scientists in ecoof the instructor seem to he the they are being imposed upon by nomics should be expected to put controlling principle. Well estab-, people who pretend that they can rn end to such pretense as that lished procedures in such fields as.) Sec into the future and are willing exhibited in our common economic' chemistry, anatomy, physics, l0 say that this or that will hap-'forecasts'and other manifestations Kreighbaum report unique a this country in phenomenon thought cent . . * "jTorty-one ; ; materials of . . ciples qualified val of science, he gave appro , expressed; interviewed persons proval to the use of such methods; that only 12 per cent said scien¬ tists were directly responsible for the evil use of the facts and prin¬ v of science.' Five sci¬ the Krieghbaum report is to the effect that 83 per cent of the ence, opinion (the word "felt" was used) that the world is better off because there are people who pur¬ sue methods of investigation which lead to the truth; that 5 per cent of the others gave qualified ap¬ interviewed felt .. the 83 cent per . of terms in described If Under the caption baum differs from Pearson asof science.' : of science, word of the ' publication of unA general : contentions. of understanding =-/'-of the nature and implications of science has given rise to widespread pub- wen or, most i - is the method correct that sume said to mark themselves as nonscientists .themselves to be followers of the Democratic, Socialist or: Republican parties. Inquires why we generally term a physicist or a chemist a scientist, regardless of how imperfect his methodology may be, while a historian or economist who follows the methods of science is not regarded as a scientist. Particularly singles out as responsible villains in all this many of our colleges and universities. Marshall or much as widespread sc\entij{c tained, it seems reasonable to as-■ do not common Smith, , "... on. so Since science form in the iii ...history, science economics, practice of seeking and furnishing unscientific forecasts in the field pf economics and lack of editorial standards as evidenced in the widespread publication of such material. Economists who are followers of Marx, or Keynes, the label of ieeopdmist-jneet • the 5requirements of the scientist. V.- •" chemistry;^ science in nomics reveals itself in..a crude lack in science and misuse of outlining the general confusion as to the word "science," a leading American In few men and women wearing the find to chemistry, Science in iWe United States - Financial Chronicle. (1778) Walter G. Schallitz, President one of Security Adjustment Corporation, .... a difficult scientist in undertaking to economics;' and . Brooklyn, N. Y.> passed away^suddenly Oct. 26 at the age of 55. Volume Number 188 5790 . The Commercial and Financial Chronicle . . 15 ^ tive control is to be employed, the Taking Another Look at the disadvantages of such control need pressures possible. Jn the use of margin requirements to prevent excessive % - ^-4.- ♦ •5 x^ <C.-CANBYBALl)ERSlX)N> >;'«• " r :ket, are < Vice Chairman, Board of Governors, Federal Reserve System //, "-y /:--v Washington, D. C.' /' for. antes, the future may tive control compel years TO i must ' fwee?hath ihSbf• ewrv e^imw For Which you receive, a tax* levied, 8 an e^ditrn'^nroneHv -i'-.," ' ; v referred i to gain a fionol them with general mnrvn+nmr - rpoillf . tho tn vaanc?ng/he industryS mighty a ex __x _-x.„^ ad " would ecuuves - ,... *',» . ?aarks. / question has beenpijt mt,° vJrse.j!y the economist, Ken- stock of real wealth—' and worKers .must .rxix"ii. xiL---:1 nse i catjdiin to so the.i: . is among cUUUllg left private power,'''': 'w ;' ;., To and T alio- weSSvehad ?nTri?cf and^m! ^ individual turn am convinced that its '''.' , ..P , I fruits ■ ...» , Ec > extremely . p ,. „ : fc * we sound, II1 flexible monetary policy. • New Loewi Branch ' ' Reh?nce on general credit meaSWAUWATOSA, Wis.—Loewi & dres course, has limita-; Co., Incorporated, has opened a UlUlVIUUdl .a a rnmnoHtinn tn much ^ borrowers SOUnU, „ "I,Ii' and . • ... alrae°of ' private lenders, even though the tions' Desnitf, the manifest tions DesPite rf»cr»nr>«ihiiifxr fnv, tho Accentuated the Cycle ' - are could not have done even this well' P"?e-The ■« we had not clung tenaciously to • go>»g nave;apportlonment ctp^JUI lIUXllllClTb . ... ■ ■ the Financial System ' .< Are quite impressive, once you list 'em, ! 1 Although the system has the sour A marketplace to those ployment. I Pax xV - ^*c£1l!^7h(SrttaiSSSto accomplish growth regretted.that the 1955 market Was-hnriWer* oversold by at least a million ears., oversold by;at least a million ears.. bchveen, permit- ted Americans eventually Apd to the question Posed at the beginning of my re-, . , dotvh^fot-dwhilJ AStomobUeM^'.eredit-woWhy borrowers who to ' have be gained by consumer-credit reg- : vom'rtnv,ir.n crease they imply, both in credit -totdl, leaving its alloca- ehfree i t^n tk maSet^ Credit force and ' irt citizens time when credit demand When' one contemplates these *eth Bouldmg: banks so that bank credit magnitudes and the rates of in- < The Fruits of ^a^co^ract *and expand flexibly Vl^tfb tie?! extenSSitsSfmid to°have sloped credit consumer spending were on the increase, i In that1 case,* society bright decide that the benefits to the ?e™ availabla to the c°m"* rtg auiabies. sumer general —jld result of . the need to reorganize illation would outweigh the"diffithe diffland reequip the defense establish- culties. If so, we should benefit ment in view of dhe rapid techni- • from the experience during prior cal advances which have taken periods of regulation so as to min-, automobiles, factories, and vance .a many, TreasurP. General an^^dy,^mi^,.mercial market of Su ^n Ihe'Cong^^"^^:. fernatlonaiTensionV'AtffiJhe ^ administrative dilficulties" chain of events; antl^Xt^m it accelerato as degree consumer oUr technical creased have added $20 bil- " restraint. * Such feeling niight we to finance additions to plant and equipment. We have also added to the Federal debt, largely as a perspective of proper compare -xi. of demand for consumer-credit coil— as an alternative to enhanced cyclical fluctuations or to an ■■fti- trols . h; Consumer credit mav nroDeilv be may properly be • been monetary con-, time State and local governments' ^persons to question ^ entyrusted by the Congyss to have borrowed $30 billion to fi. whether the obvious gaiiis from ^ Federal Reserve System, has nance schools and highways and the use -of consumer credit are.;the particulai. role 0{ regu*ting for other purposes. • * •• .The age-old problem of how to have roses without thorns;is well / 4%*The almost 'HEvedy thin.f„has two sides, that folloVed-has caused good and evil. thoughtful have the be instalment credit" generated; for example if terms outstanding, $90 billion to mort- : \vere once more eased radically at financial, lion to " Ih the seconri half of that vear 'flsfal and monetary policy. Fiscal "Everv'*'p tCy- a s throuSh governmental e^^ 'shabdW«b^^a?^thetSktf -surpluses or deficits. which reflect benefit iridustVilr^OTSimts a^buntih" t6; bo governmental spending and ttel fluctuations greatly moderated in Compensation on observed goai economic , the role of selective controls, one; . essav in the future might call for a re-consideration of that view. They might create a widespread public ^institutions to whom the regulation ^applied breathed a sigh of gage debt, and $85 billion to cor% relief when the. ordeal was over, ^orate debt—in considerable part ' his regulate consumer the administra- • praises consumers1 debt-handling ability but considers, also, the thornier cyclical aspect involved in accentuated peaks. In use of general supplemented by stock market margin regulations, ^^enforcement and Since 1950 . • Emereon sible, however, that developments the Credit measures, In three pre- the 200,000 retailers and > The Reserve official ago; trols+of consumer Credit-were not called for at that time. It is pos- .. Through <: * f ' credit field almost two years ago and concluded that selective con- even- period that since 1950> despite a sharp increase J the Federal Reserve System, which in both public and private debt, ; reconsideration of hands-off qualita¬ policy of two w. «. enforcement ht>wever, r a loose WGre sogreat : Regarding liberalization ol credit terms and homes* and states detrimental developments in i not too difficult. credit, reviews the 1#55 record break Praises Accomplishments credit into the stock friarsupervision and viqus efforts to . Warning that further relaxation of auto and mortgage credit may bring about selective consumer credit controls, Mr. Balderston controls, inflationary will to be faced lip to and removed" if tually. t . •7: general neces-: brartch officer the Mayfair Shopcredit. ping Center, ± Central IVACHJ., under i\,^xr 1 Mall, uiiuicjx ship of homes, small factor in inducing: subse- - J ' »Policy> and despite the manifest the management of T. O. Malmautos, bathtubs and television that quent management decisions that •1 ■ ...... •' -.."advantages of permitting the mar- stone, Jr. • they have now achieved. But con- were not altogether prudent.' In r In contrast to this relatively im- • ket to carry out the function of: "7 suiner credit enabled them to get 1956 businessmen expanded their, personal allocation of the money credit allocation, conditions may these things sooner'than other- outlays for* plant and With Eastman Dillon equipment- supply are so-called selective or at times develop in specific areas C. Canby Balderston wi d e ;; This '-consumer owner- boom, no iiu Wc*&' was uuuiii. ... fntQl cnnnlv nf sity ^ joroHit for sound ^ a general .*• . , riw/v VOO/lir '.^4 +U„v, +Urt . •/>r»n+v*r»r<? t fehno/lltr enoulzincf ' tVint - propriate to the situation. to equip it rather than to wait in- the cost'of building materials and If any of these ismsed, government definitely.' Even those who are labor higher and higher. This up-; intervenes in the operation, of the critical bf the gadgets that ; sur->ward movement led some manu- - free market. Of course it also inround must admit us that tounding proportion of an were pacity, skeptical of the consumers' ability to handle debt must recog- higher. they : had better get it shelter particular groups of eitipromptly before costs rose still "Zens.'It is clear that even if these were nize that the-record remark- , the , : :f - Reviews 1955 '/-: a result, of them ^supplementary many last half dustribs - Credit of became 1957, aware »• , j associated Carl|sje Under pa< iiatmiLCB, -jjjggtreet controls to jjuu-ixL. supplement general £ ones. office a Liberalization Record Most" tragic • . of all . « from Which . associated y . Pennsylvania with ence of are emerging, in part a consumer-durable-goods recession, reminds us of the influboom consumer the year credit consumer of 1955/ outstanding instalment credit in that volume increased offer to sell or a solicitation of an offer to buy these securities. offering is made only by 'the Prospectus. an durables consumer ,000,000 ers' holiday. There developed an over-supply of stoves, refrigera- of $5% the i Texas Electric Service - billion in- tors, washing machines, radios and accompanied by a significant: easing in the terms on Company televisibh sets.'Production sched- almost or 25%. This 'crease was which credit consumer tended, particularly credit to 'chase ules were cut back and men/were ex-'dsid off/* The construction boom was languished and here again; men were laid off. And so, in 1957 -also pur- automobiles. new First Mortgage ; • - Darvd November 1, By midinstalment con-■ and 1958,; society paid in unemtracts on new automobiles were ploy merit, !ilost salaries and r lost typical as against 24 months the .profits'Ihe price of another bust /year before, and contracts with that followed in the wake of a 36-month maturities were becom-; boom which we must, in all hon¬ ing common. At that time, the* esty, recognize was helped on its 1955, 30-month- Bonds, AVi% Series due 1988 Due November 1958 1, 1988 ' Price 101.656% and accrued interest . - - down-payments : standard of one-; third of the transaction price was still being adhered to, but over- allowances on trade-ins were - low- ' ering the effective down payment the buyer's equity. With this impetus, 7.4 million new cars were in the increase over of 1954. of terms credit - to more The was struction domestic market, than sumer ; over The Prospectus may be obtained in any State in which this announcement is circulatedfrom only of the undersigned and other dealers as may lawfully offer these securities in such State. such con- credit/in addition to gen- one-third? eral. fiscal evident in the control , " . have "selective liberalization' The same ' / * / ®°cial Desirability This poses the question as to whether it is socially desirable to an and decision monetary must control, represent HALSEY, STUART A CO. INC. a of value judgment based upon a bal- expand residential con- ancing of gains against disadvan- at rate, tages. an use accelerated You will new housing starts reached 1.329 remember that in 1955 consumer credit has appeal to those who feel that, despite its benefits, excessive ,, tnheaNervT8York „ State ciation, New York City, fluctuations in its use should be Banker^AssoI- Prevented in Order to minimize Oct. 23, 1958. BACON, WHIPPLE &. CO. COURTS&CO. & CO., INC. THE MILWAUKEE COMPANY strong • ., WM. E. POLLOCK BAXTER L COMPANY To diminish the unstabiliz- ing effects of million. fore way; 7^ and sold by the 1 excessively .: rapid ; £rowth of consumer credit. ' * economic instability. But if selec- STERN BROTHERS A CO. October 29, 1958 Fii*$t Fd*st Banking & Trust The Federal Reserve System Company of Philadelphia in the made a study of the consumer-, commercial \ credit department. _• thousands of miles, and becoming disenchantedn with the' increased, prices, consumers went on a buy- the In obtained the with^ the that they needed.most, having au-^ tomobilbs that were still good for we repre- Frior to joining Eastman Dillon, Securities & Co:, Mi*. Bibi associated The . West Union Tifav Rp This announcement is not the un-j was employment that resulted. Having ; their 100 registered many in-: of excess/ Like most roses, consumer credit also has its thorns. The recession: with ' capacity. - - llistlfv such circumstances, public opinion sen+a+jve ggjj^tive mav come to * may fOme to insist UDOn selective r, 7 upon f controls are help-: discounted the growth in demand ,f up in meeting emergencies, they. for their product for years ahead. *:are no substitute for general fiscal? When.the awakening came during and monetary controls. Without financial has' been responsibility ably good. / of . As Tl'POh1f> Wfilllfl be absorbing,too much of. the total credit expdhsion that is ap- to believe that if they ^tervenes when vit uses subsidies, || going to need expanded ca- l price supports, onrl guarantees tn and cfnaranthPfi to have : the physical basis for h pleasanter life.» And those who now fifimp may facturers as- Americans tn MULLANEY, WELLS A COMPANY THOMAS A COMPANY The Commercial and Financial Chronicle 16 selves of, the governmentguaranteed loan program. In the merger candidate field, the ICC member specif¬ ically mentioned the four THE MARKET... AND YOU STREETE By WALLACE Western roads, Great Pacific; Two Reindel, and OhI, of New York City, Northern; Following a period of de- for in order to narrow the lasting for six consecu- spread between the bank bortive days,' the market re- rowing rate and the yield on bounded sharply on Tuesday Treasury bills.. H o w e v e r, possible Pennsylvania-Central and Coast Line-Seaboard and Wednesday of this week there's no gain saying the fact blends. "v.. : and succeeded in recouping a that the Board is more than f./ ' ^ " if ' " if ■ substantial portion of the slightly disturbed at what is earlier losses. The uptrend termed the "inflation psyPacing the Uptrend was particularly marked on chology" pervading the acAmong the issues that con¬ Wednesday and produced a tivity in the stock market. tinue to maintain upward 5.84 point gain in the Dow-. ; * $ * momentum, and in complete Jones Industrial Average. .At Thfe atlUude was ■ again disregard of the action of the the closing level o. 542.72, the jjnl^liely aired by still another list in general, is American mdex was but 3 64 points bespokesman namely, J. L. Motors. An important factor low the all-time high recorded Uobertson who after stating in its good performance could on Oct. 17. that while there are good be attributed to substantial * * reasons "to think that profits short covering. Although Last week's slight sell-off, are rising rapidly," went on there is still a rather large incidentally, came in the to strongly imply that the short interest in the issue, the wake of a complete absence greater activity and rising total amount was markedly of an y -untoward • developstock prices were purely a reduced in the month ended ' merits either trend or in the business in to the world political inevitable of tance situation. As a matter of fact, infla- ment, the fact is that the com¬ thinking he added, pany, based on its output this many of the third quarter re- jg completely unjustified and year, as compared with 1957, ports of the nation s leading suggested that its continued is doing extremely well in the companies; a c t u a 11 y were acceptance in Ihe area of busi- area of earnings.- bullish. there This lion in tone. were That.is_ to achieved^ by diverse say, gains may we add the warning fields, rather than possibie controls being concentrated m specific credit in cent of companies vici-Chairman Balderston of can Industries. Inflation and the Reserve The action of Rails Bufant ., Board . , While no one Studebaker-Packard. Percent- believes that age-wise, issues in this cate¬ gory have chalked up gains the woes of the railroad in- the Federal dustry are now. a matter 01 the history, the latest earnings far in excess of those achieved discount fate from 2% to reports from some of the by the higher-priced "blue 2^% was not viewed as be- carriers are none-the-less chips." t, - ~ Reserve Board . . . m . uppmg ing portentous either in the extremely encouraging. Furstock * or The Jhermore, should the rate of -markets. A money meteoric rise the of low-priced issues during the improvement achieved to date current year, for example, is ange obviously was called as compared with a year ago , . , „ , obtain the DIRECTORY New r practice, the three subsequent 1958, will be meetings will also be devoted to Victor R. Hansen, the Assistant fostering serious discussion of Attorney General of the United economic problems of common in¬ States in charge of the Antitrust terest to academic and practicing and other qualified Division in the Department of economists Justice, and prominent attorney, persons in the far-ranging Metro¬ Jerrold G. Van Cise of Cahill, politan New York region. This is Gordon, Reindel, and Ohl, New done by inviting distinguished ex¬ York City, who has written and perts in their fields to bring chal¬ practiced widely in this field. The lenging realities and insight to 4k MID-YEAR 195S EDITION JUST OFF THE-PRESS V • - book'" containing 9,500 covering all United' States and page Canadian cities.' Listings are arranged geographically^. and alphabetically, and are comprehensively detailed: under which business is and date established name ducted BtSck "Exchange Standard illustrated & Poor's in index this ers. in con¬ score is evidenced in 53.86 berships (including "possible" than" a Mera-V Association N.A.s.D.y „ Some of these have been the more and on Oct. 22. In the of Names of Character Securities of of Business Handled stage - for year/ without smattering of even a Partners Department or & Class •V'ard progress Officers. Heads -V some government and private antitrust economists who are anxious to will present their dif¬ question and improve their own fering views for the edification knowledge and understanding of of economists who often judge the subject—economics; attorneys - Early Warning Indicator Hoped For in Capital-Output Newly perfected technique to determine extent of overcapacity as those firms located te * another valuable^ feature, Bound in Durable limp fabrikoid — of • TODAY HERBERT D. SEIBERT I CO. New York 7, N. Y. REctor 2-9570 given the-"green light". just recently by Kenneth' H. Tuggle, member of the Inter¬ - $14 were BOSTON, Chew - is Mass. now — Philip lead business cycle indicator. uncover a Eleven Had Excess approach to the problem determining the extent of over¬ Through capacity in manufacturing at the connected with Schirmer, Atherton & Co., 50 Con-, gress Street, members of the New tal-output ratio, The He was ham & formerly with Harris, UpCo. The Conference Board cess duration of recession tent and industries individual Campbell, Jr: is the further fact that the & matter Stone & Webster Adds ' 1957. had not availed car¬ them¬ BOSTON, Mass. Webster — chinery; fabricated metal products; chemicals and allied prod¬ ucts; tobacco products; rubber products; lumber and its products; printing and publishing; stone, clay and glass products; "primary metals; and machinery) excluding ' pansion and contributes impor¬ tantly to a business contraction. of Despite the crucial importance the relationship of peak de¬ electrical. capacity to produce, there surprisingly little firm statis¬ tical evidence that bears on it, mand to The is excess erages; deficiency does not stem from the Capital-Output Ratio The studied approach NICB is based ..._ by „ leather porta tion equipment, excluding motor vehicles; instruments; pe¬ troleum and coal-products; furniture and fixtures; and paper and If relationship , A .. ratios the above Securities dence Federal Street. exploratory results are notes, the new ap¬ judging the probable severity of It will also be use¬ forecasting the duration of the slump, for recovery is condi¬ tioned in large part by the extent of excess capacity at the peak of ful in * business. v ", / '; With Rodman & Renshaw (Special to The Financial - Chronicle) j 111.— William C. Douglas* is now with Rodman & Renshaw, 209 South La Salle St. CHICAGO, - of excess capacity—unless Joins Walter Hood . technological changes in the in¬ terval required more capital per 1948 49 / .. „ bench-mark ratios would be evi¬ i Conference as Board ' chose (Special to The Financial Chronicle) High Street. the bench-mark year be¬ of manufacturing Laidlaw Adds to Staff no excess capacity. (Special to The Financial were operating at peak output with vir¬ tually ' PORTLAND, Maine — Douglass G. Starrett has become affiliated with Walter J. Hood Co., Inc., 142 independent evidence sug¬ with Stone branches Corp., the the downturn. significant rise in the capital-output . approximately correct/ The Con¬ ference Board by the value which manu¬ facturing enterpriser place on these assets in their balance capacity was virtually fully , t proach to measuring excess capacity will provide early in a re¬ cession some critical data for ured when including bev¬ textile-mill products; its products; trans- and Early Warning System Hoped For analysis of the on include: food and 1957 allied products. . the of capital to output. Capital, : in this context, means fixed capital, such as structures and equipment. The volume of structures and equipment is meas¬ without subgroups eight in kindred products, The The Conference Board notes. Marshall F. gests that at that time almost all now motor , vehicles electrical ma- They are: equipment; and be possible if it could be established that excess capacity emerges in the latter stages of a business ex¬ cause (Special to The Financial Chronicle) all of 62% " unit of output. of fact, Mr. seemingly deplored the fact that nothing has been accomplished thus far, and a. about capital reported by manu¬ facturing enterprises at the end of fixed in might for accounted under¬ analysis in the belief that intelligent forecasting of the ex¬ took the The Tuggle Conference concludes that in 1957 ex¬ Board - York and Boston Stock Exchanges.. Capacity in '57 of the fixed capi¬ use capacity existed in eleven of trial Conference Board, according 'nineteen manufacturing sub¬ to a Oct. 28th report. groups. These eleven industries utilized. E. state Commerce Commission. riers hopes it will new try (Special to The Financial Chronicle) consolidations, by the way (or at least those consist¬ ent with "the public interest") As YOUR ORDER 25 Park Place / A classifications for a bench¬ mark year which independent evi¬ dence indicates, was a. period of the author only.] With Schirmer, Atherton . Rail Numbers ALPHABETICAL ROSTER of all mowing city in which ■they ENTER by the Conference. Board shows that in 1957 11 oat of 19 manufacturing industries possessed excess capacity. The Board - sheets, corrected for price * < *•' [The views expressed in this changes. article do not necessarily at any The procedure employed is to time coincide with those of the establish a fixed capital-output "Chronicle" They are presented ratio for each of the broad indus¬ Names — Systems—Teletype eventual Union, ••• Correspondents—Clearance Arrangements; An an - Phone Numbers—Private Phone Connec¬ tions—Wire 31, < same eDtetri«dNSer°clnding p<>st omce thus far (»t least publicly) toGeneral Oct. evening, * analysts, in light; of the Another factor here, of record and the history of past course, concerns the feeling bull markets, are inclined to that something concrete may express some misgiving as to develop from the long-stand¬ the outlook for the market as ing reports of projected merg¬ a whole. r York tomorrow sociation of New inability to measure peak de¬ the final readings covering 23 issues. While the f quite impressive.- component stood at 34.55 in mands, but from the inability to devise broadly based measures of market is optimistic January, it had advanced to capacity output. .Jheir industrial j counterparts. 1,700 graphically of the , carrier, period ;< the company's 500equities have performed stock average rose from 40.99 much better recently than to 51.07. Small wonder that . Firm remainder Fourth Avenue, As is the usual 315 City. Auditorium, York Rand Remington in .the place area. :: ..<•./ Appearing before the members Metropolitan Economic As¬ be That the on the meetings in the 1957-58 year of the Association which will take anti¬ in- the place decisions. of four annual This is the first trust x,the..>fa„ct, that, ■B listings year, should Of CTfiftr ml Dflllll liAHerC vf UIhI ilw IHIIIII tluUoLa A for taking monopolization on than that which or other grounds form the basis for court the country's past. Aside from Ameri¬ peak of general business has been Motors, the list includes explored by the National Indus¬ Alleghany Corporation; Avco Manufacturing; Curtis Pub¬ lishing; United Industrial Corporation; Artloom, and on consumer of two from of the J1ess 1957, the breadth of the lm- wjll and can stop inflation "in tivity and price appreciation provement recorded was sig- its tracks." To the foregoing, are concerned during the re¬ nificant. monopoly econo¬ top ranking legal experts some of the latest thinking and occurrences As a matter of record, the and investment decisions Whfle ytere exceptions js potentiallv dangerous to its so-called low-priced stocks to the growing trend of much adherents. fhe Board, he con- clearly have been in the van¬ higher earnuigs this year vs. tinued; has the powers, and guard insofar as trading ac¬ Tim-m academic and Business now > Metropolitan Economic Association of New York, this Friday evening, October 31, in New York City. - • mists will have an opportunity to learn Gordon, to present their views are Aside from this ele¬ Oct. 15. the gr0wing ac- symtom of Government's Antitrust R. Hanson, in charge of the Victor Chicago, Burlington and Quincy, and the Spokane, Portland and Seattle; also the cline Top Antitrust Legal Experts to Address Metropolitan Economists Division, and attorney Jerrold G. Van Cise of Cahill, Northern 1958 Thursday, October 30, . . . (1780) - BOSTON, Mass. Dionne is now Laidlaw & Co., 80 — Chronicle) Edward A. with. Federal Street. affiliated Volume 188 Number 5790 . . The Commercial and Financial Chronicle . (1781) Alexander 17 Yearley, IV, Chairman of NASD From WASHINGTON, D. C.—Alexander Yearley, IV, Atlanta, has been nominated Chairman of the Board of Governors of the Na¬ tional Association of Securities Dealers, organization of Nomination is tantamount to brokers and dealers in the country. Washington largest Ahead at C.C.R.Y. of the News A effort an win to the Negro Today the issue of irre¬ deemable currency versus a gold standard and a redeemable cur¬ By CARLISLE BARGERON In debate will be held today at the rency History is replete with instances on Baruch School of vote, Paul Butler, the Democratic of National Committee Chairman, is given that City. Up¬ holding the latter will be Dr. Wal¬ ter E. Spahr, Executive Vice-Pres¬ cause they had lost / the home touch. In my opinion, if there is ident of the Economists' National a recurrence of 1957 when the Committee on Monetary Policy, Southerners compromised on the New York City. .A leading mone¬ to saying if the Southern Democrats d n't o scribe sub¬ to the who men a S up r e m e now be¬ desegrega¬ tion they can leave South. tary and banking scholar, he has rightsi fight only to realize they had been doublecrossed, there will be some re¬ placements in Congress from the ruling on the party, that the written and spoken that widely on the Spahr heads a na¬ tional group of money and bank¬ ing economists which has, since our departure from the gold stand¬ subject. '•M Ic is true that there is party really no Business, City College of New York civil Court's and national figures and who all sudden were defeated—be¬ came of here came more in ard Dr. 1933, not been fully cred¬ appreciated for serving as does not need similarity between the Northern and Middle Western Democrats on ited them. the the country's "watch As things stand It is gentleman is it Carlisle badly mis¬ taken. His without Allen Wallace H. Fuuon Yearley is Vice-President for one partner of Robinson, Humphrey & Co. its corporate affiliate. He will succeed of Yearley will take office in January and serve as Chairman year. He is presently serving a three-year term as a mem¬ ber of the NASD board. that This is the second time since Atlanta an dealer has been formation of the chosen for the post* Clement A. Evans, President of Clement A. Evans & Co., Inc., was Chairman of the association in 1949. Mr. Yearley is a former President of the Georgia Security Association, Chairman of the Southern Group, Investment Dealers Bankers Association of America. Others selected for their duties in assume Truman South in his won cele- Butler the > in have their Humphrey and long been in¬ attitude Southerners. But national recently Debentures Offered International $50,000,000 Harvester Credit Corp. 4%% offices, who also will 1979, (Oct. 29) that suppose could become in the thickly States the Democrats was of investment firms headed tions. Total indebtedness of the Credit corporation at Aug. 31, 1958, was $286,438,500. This total included: jointly by Morgan Stanley & Co., short-term notes amounting to Glore, Forgan & Co., and William $241,438,500, long-term senior debt Blair & Co. of $20,000,000 ,and subordinated The owned corporation, a- whollysubsidiary of International Harvester Co., will add the net well established so populated industrial Illinois, Pennsylvania, New York, New Jersey, etc.— that they would not need the Committee, and South but that is not the situation now. the North and Middle West, being contests no n0 the in that he was fed up on National leaving the And if it is left to and House there will not be happening in the initially short-term of ings. the to borrow¬ " ... The debentures will be non- redeemable prior to Nov. 1, 1963. On and after Nov. 1, 1963, the debentures will be redeemable at and 104% deemed 1964 accrued on and or interest prior thereafter to at if re¬ Oct. 31, prices de¬ creasing to the principal amount and after Nov. 1, 1976. on The Credit wholesale corporation finances and retail sales of ternational Harvester Co. distributors in In¬ and United States. company motor and is a trucks, dealers The its the Harvester leading maker various lines of stock of the corporation is owned by International Harvester Co. July 31, 1958, amounted at to $55,- 891,875. ing equipment and power mov¬ units. near This is not — Theodore O. L»ydecker has become associ¬ ated with Grant, Fontaine & 300 21st has recently Street. Co., Leydecker Mr.. been with Earl A. Holtham. In the past he was an officer of Stephenson, Leydecker offering of these debentures for sate or an offer to buy, or a solicitation of buy, any of such debentures. The offering is made only by the prospectus. an to hold the present For the nine months ended July 31, 1958, receivables acquired by the Credit corporation totaled $420,529,000, compared with $437,336,000 in the corresponding pe¬ riod of 1957 and $631,338,000 for the 1957 fiscal year ended Oct. 31. It is this for reason that cor¬ poration for the nine months ended July 31, 1958, was $23,877,127, compared with $21,262,339 for the same period in 1957. Net income after taxes for the respective pe¬ riods For was the come $4,439,076 and $3,510,867. 1957 fiscal year $29,455,080 income $4,955,601. was total in¬ and net With Thomson, McKinnon (Special to The Financial Chronicle) nationally. If it doesn't they their chairmanships. They lose $30,000,000 Middle and brethern in order to unity. At the they compromised on party which bill Company 43A% Sinking Fund Debentures Dated November 1, 1958 Due November 1,1983 Price 99% and accrued interest Copies of the prospectus may be obtained from any of the several under¬ writers only in stales in which such underwriters org qualified to act as dealers in securities and in which the prospectus may legally be distributed. to The First Boston Goldman, Sachs & Co. last session civil rights of Kidder, Peabody & Co. Lehman Brothers White, Weld & Co. bert these as Senator Hu¬ Humphrey don't realize that men are not reflecting the feeling of the rank and In every of the South. in the South there are who would like to They State politicians come Stone & Webster Secnrities Corporation Bear, Stearns & Co. care interest in them. So if they get the feeling that representatives are not ag¬ matters like of the most prominent heads up here in Con¬ gress from the South will fall. enough rights, ; Moseley & Co. Carl M. Loeb, Rhoades & Cow R. W. Pressprich & Co. Salomon Bros. & Ilutxler A. C. Ailyn and Company G. Becker & Co. •" Dean Witter & Co. American Securities Corporation Incorporated Baker, Weeks & Co. Francis I. duPont & Co. Bache & Co. Alex. Brown & Sons Hallgarten & Co. L. F. Rothschild & Co. McDonnell & Co. Shearson, Hammill & Co. Robert W. Baird & Co., Bacon, Whipple & Co. Blunt Ellis & Simmons Courts & Co. Incorporated First of Michigan Corporation First Southwest Company II. Hentz & Co. Hayden, Miller & Co. Fulton Reid & Co., Inc.' The Illinois Company Incorporated McCormick & Co. McDonald & Company The Newhard, Cook & Co. Schwabacber & Co. J. Barth & Co. Murch & Co., Inc. Prescott, Shepard & Co., Inc. October 29, 1958. , Merrill, Turben & Co., Inc. Robinson-Humphrey Company, Inc. William R. Staats & Co. Bosworth, Sullivan & Company, Inc. Wm. J. Mericka & Co., Inc. on some Paine, Webber, Jackson & Curtis to Wash¬ nothing about the committee chairmanships be¬ cause it would be a long time be¬ fore they worked up to one. The people as a whole certainly have their hazard Freres & Cow Incorporated diehard ington. F. S. are such Corporation Ripley & Co. Merrill Lynch, Pierce, Fenner & Smith Smith, Barney & Co. their what some having one. Westerners Harriman Incorporated Hornblower & Weeks happening. to avoid no Glore, Forgan & Co. a in this mood at present and will be, so far as one can tell. They don't want a third party, and apparently are willing to go a long way and take a lot file Blyth & Co., Inc. Eastman Dillon, Union Securities & Co. Western preserve wonder just caused Now, they Hill, Darlington & Co. Building. McKinnon, Security He was formerly with The Glidden t cated & offat the But the Northerners and Middle Total income of the Credit an committee Southerners want to see the party Win civil OAKLAND, Calif. the Senate side. gressive throughout the country; its With Grant, Fontaine & Co. the Senate. Thomson farm member of the such Arkansan, Wilbur Mills, is Chairman of the powerful House Ways and Means Committee; a Virginian, Senator Harry F. Byrd, is Chairman of its counterpart on equipment is sold to approximate¬ ly 4,800 independent dealers lo¬ Harvester's duly took note. future. because that at men MIAMI, Fla. — Raymond F. Briggs has become associated with International a faculty. An was farm tractors, earth and material these is constituents of machinery and construction equipment, including crawler This Eastern outstanding Credit the applied Butler's Chairman Sethur, Associate Professor (Special to The Financial Chronicle) there South. statements, and the voluble Demo¬ likelihood any of any southern State fold this year. the Total capital stock and surplus be is Senator Smathers made it known cratic Neither is there take considerable abuse from their funds to be available for the pur¬ chase of receivables. The proceeds reduction such as — indebtedness of $25,000,000. All of proceeds of the sale to its general may redeem¬ a gold standard will be Fred¬ erick in charge of electing Democrats in has come about through the practice of the South in reelecting their men until they have come to motor trucks are sold to 5,100 have long periods of service; and, dealers, a majority of which are under the seniority system, they Harvester farm equipment dealers are the ones in high places to as well, and construction equip¬ whom everybody else has to kow¬ ment is sold to more than 100 tow. Sam Rayburn is speaker of distributors. In addition, Interna¬ the House, for example; another tional has retail outlets for farm Texan, Lyndon Johnson, is the equipment in about 100 cities, leader of at resents the first public financing by the Credit corporation, was underwritten by a nationwide group : return to paig'n a debentures, series A made yesterday some of which also retail motor 99Mj% and accrued trucks, and retail outlets for interest, to yield about 4.66% to trucks at about 170 other loca¬ maturity. The offering, which rep¬ due * able a *• Democratic Senatorial Cam- I lost no tion of Opposing Louisiana.'^'e^arded'thT^est "of He. did He ton, director. offering price of gold. towards C.C.N.Y. thing. 1948. leaderships. These take with them patronage and power. The situa¬ Int. Harvester Credit re¬ fully redeemable gold the southern leaders in the Senate NASD January, are: Washing¬ Public a strangely enough, is Chairman of upset of Donald L. Patterson, Denver, partner of Boettcher and Com¬ pany, and Allen J. Nix, New York, partner of Riter & Co., ViceChairmen; Ernest W. Borkland, Jr., New York, partner, Tucker, Anthony & R. L. Day, Treasurer; and Wallace H. Fulton, • as solent to standard at present mint purchase of Economics and a Charles L. Bergmann, New York, partner, R. W. Pressprich & Co. Mr. Hubert men turn Such ways. the South. V and erroneous both our mone¬ tary system while striving for Alabama, such Mr. work dog" against further deterioration of night and day. marriage of convenience but should or Butler has been taken to task by Senator Smathers of Florida, who brated election. on an that the Bargeron a Paul cockiness is based assumption there is between as the now hand and the Southerners one Walston & Co., Inc. Curtiss, House & Company: W. H. Newbold's Son A Co. Thomas & Company 18 The Commercial and Financial Chronicle (1782) workers, unemployment is 10.3,%; 9.11% Unemployment, the Cold Was ^ Year Claims " , <4 and in September of 1957. 1 September of 1958 there were In employees 1,461,000 drawn 15 weeks of President, NationalvAssociation of Manufacturers J yCompany, and Chairman of the Board, Singer'Manufacturing Elizabeth, N; J. had who or more 1 Private unem¬ ployment insurance; 50,800 work- " ers by the end of August had'yexhausted their temporary.supple- {; spokesman dis-: agrees with bis friend the Secretary of Labor that the recession is oyer; saliently observes that indnstrial production recovery of 70% outpaces the 19%: recovery in manufacturing jobs and,25% non-farm jobs; finds it rather ridiculous that we boast of American living standards in the "cold-war" fight while pursuing anti-union activity bound to lower our standard of life; and pledges non-direct political action in fighting the right-to-work laws. Mr. Meany also submits a program to strengthen consumer purchasing power, and refuses to concede legislation is needed to punish labor as a whole because of the claims notwithstanding, labors' y ■ , *'■ sins of mental an happening are will the where things age come up evnry trade union ployment the there self to two So America or I the to at the affect this Any prob¬ have George Meany American is o f fronts nation today • workers, because we It is a of but Labor, problem the that entire and when we look at this problem we must look face; at > it; along with all of our na¬ tional problems against the back¬ ground .77 : affairs. of world in country weu *■ernment • can hPtte,.' akp m ' *.. ^ money on our e last:,;. & ii than { wb,j the Americaii " • '' . our such people { followed. What happened to the lucky union member who had received the raises?.; Frequently he, found that he was out of a job. Not only • one that I thesbrpoliti-"His programs "■ 'cbjme" tentlaTmafrEet*.^ have jobs 7,^> ^ _ Now, what does this mean? Does, are bought with easy payments, this mean that we accept 4,200,OpOfpai^ by somebody else. ' union tactics had; forced 1 ' union members' paid iii 'the' end alon& with all the rest of;us. many The' Government's contribution to the wage-price spiral was twofold. First,, it encouraged ;-the growth of union monopoly. . And permanentIy;:unemployed^^es^«rra^^Tg2^^ijLV*T^r^t»a"'then it increased the~"mohey sup- as this that mean areT.going. to .ply to we c;;»ntinui.n; unemployment these millions out of the with insofar market ma]5e up the American standard livin^ with thp sln«an »RlJV Dav later" somp nolltioiam . purchasing as is concerned? power three years. ' ! new show :v-li".:7:: caii b;.- spend- that bat the money he had wasn't own m0ney.;Each of worth as much as it had been. - ing Li_htn. ter',7 c MiIt ' , •, The TindsT? been fUling customers with Utopian ideas— using the slogan, "Buy, now, and neyer pay- at air.'' :; ! ;::'!/ !!{ ' Well, if it does, it mean recurring depressions everyq two or; ".--'"'i < on so long began to be reluctant to buy. The public bef came reluctant last year; and the only 25% of all the npn-;^ -iffprtive, 9»1ps arci]-' farm jobs in the country ?have ment used by such a pbiitieian is oeen regainea. ^ that these government programs were: Unemployment there .price list price in- ^ :';'7* aV'; 7% 'M!.7• •' , us^^bu?':recession S of the decline that came with ot tne decline tnat came wnri is this could But each know, tended > to has se11creases. aov- : -•- . I" "ipeople^the ^ This could only 7 fdea that before the.. public situa¬ the profits.! ::?:T Outlines outunes TActioii Action of ot Program program ^ Sales! personnel are realists and ' pay the higher wages, con- tt'ibuting to the inflaition. Preventing the Next Recession What is to prevent the next recession? As things now stand, absolutely mpthing., The unions Are as powerful as ever,, operating in die same untouchable lggal! pbsi- Congress has launched mew civiliah programs and fattened the that the recession is over;:whati.Trade Commis'sioivandrtlie Bdtter ol<l ones, while continuing . the is anything I think that, would we need is action on tlte part. of, jj^siness Bureaus are "in #p(gi- g*feat appropriations canniiqr. hurt the unemployed person any the Government and the Congress tion to condemn false advertising cold war.; And now the governto strengthen consumer more than the fact that he is out -buying.;-.o£ a political proposalrc ? of political proposal;;:; ment has been deprived by the : recession of tax revenues and has of work is to tell him that it is of power; no oe gone into deficit financing on a The tax structure should; be consequence, it doesn't mean *. What Well, that would be pretty nice if we could believe it, and if ther,e know need is not statements we vcah,t ihis Wolifieal tr^e he saips^nnnpal • ' But the tion: Feaeral » It is 13 years since the last war ended, and 13 Recovery 'of wasn't that much profit, as. you ? Elections Do Not Erase national problem and must this Polling v7Th ey kidj you can about this f;X.a.n4 increases wage ! out come back and "The recession is over." have official jobs in the trade union movement, nation when are ahead of you. facts, and I think- manufacturing - - ■ for unemployment, &nd assurance 7 tfiat would pay the bill, .television all Over the nation, and a / ;b e s t; that " the jhey; } 0 ,w ;/.sar y ' a Yes, we pay more attention to /the four words it, perhaps, because we represent but this is a"d tnis recession. campaign time sc the speech con¬ sisted of four words. It went on ment. e e m ; over." Lag Behind of 70% 7U/o solved this problem but we Secretary the is problem of continuing unemploy¬ hadto{pay{ . d that eight or nine months has regained ' a this the. Administration recession is tion speech the other night television. It was the shortest on a just told by a are of tion is that the industrial produce" political speech of the present campaign. It was delivered by a in my mind, are the problems of Cabinet officer, the Secretary ,of a; very good personal the nation itself, and I think one Labor, of the major problems that con¬ friend of mine and a very good not get {^Someone to those dollars as taxes for. theni 'TheVunions' assui^ ythe^public, employeircouid payresenta'A!~l"! to use as they that the'? employetr could pay— represents we Jobs - • ..... pro* theductivity./:' unemployment. I heard national problem and labor problem. The problems of the American worker, necessity • * that must the economic health of the haven't." ' .-/"'V could ^increase would be nice to say that we It lem that faces for sales?dollar.7 They ' want exhausting their are The odd thing things these of nation is o r • • nation.-- One time. lab that " move¬ ment who compete the Amer- ; ican worker by statements: which have as a background a political inspiration. cannot we can; by union "leaders. -Today there are a great many knowrhow the American public or ignore anything that affects the economic health of So trade union who the day is past keep so business „ . of thousands each! politicians tens is entitled to the the other free world. nations of the vital importance enough strong ; government repetition of this by entering politics to combat political a p • ; August,? and of avert can this country and to think of are unem¬ to here 56,000 were Well, it is my feeling that election or not, the American public discharge her obligation to the freedom-loving citizens of- she subjects which or blaoMs head increase exceisjdinf productivity fer laying s the question not we can main¬ economy N.A.M. The political system in the I9S7>S& recession {the basis for past ddwatum and asseverates that , m y one the tain to going am confine whether of I wage on unemployment benefits. 7V {J; other problem, any or of speak we month are month must relate it to we movement. However, when So there program, ing sion if it comes. the national and where things day that affect the on international scene, spending and .r who exhausted their benefits duf.-y Soviet aggres¬ back turn uncorrected. remain <V In the States that did not adopt tive to economic and .. "the We live in our averring conditions which brought benefits, in th$ States that adopted ; that temporary program. .< y,.U>.v few. a insurance ; unemployment industry's spokesman singles out the labor Movement "internal threat" to as an Election year By MILTOkUC. LIGHTNER* y- ....... -_t- V were and Congress of Organizations, Washington, D. C. ■ "i-F , By GEORGE MEANY* ■ > of the country are out. y There were 1,100,000 fewer jobs in September of 1958 than there--? President, American Federation of Labor Industrial out are 9.6% of the construction workers ^ , of the miners Thursday, October 30, 1958 . . . r, re in which we have still not achieved a peaceful* anything, because conditions good. solution of mankind's problems. Well, here are some facts in Yes, 13 years since we fought a gard to this recession: war to end tyranny and dictator¬ Incidentally, we couldn't ship and now for at least 10 of those 13 years we have been faced anyone in the Administration years ... overhauled to are in » . re¬ low the give relief to those 7ig middle" bv:ribW ir arid topic vet can forecast our furealistic,-uni-y tures and if conditions remain as .-y'its r There old and groups. i . . Miuuiu-% - should be history get form, modern standards < for f uhT they, are we are surely!laying the for employment insurance throughoutgroundwork for a1 new -recession, the past year and a half to admit the country. ■ • with the threat of T-. • A -7 " .-7".- ;. " 77 dictatorship that there-was a recession, but just as vicious if not more vicious There are many, many thingsV. T j Basis for Recession than that which was faced during suddenly because there is a reduc¬ that could be done to bring about ■ The 'i basis" for the recession tion in the number of unemployed World War II. more employment: -7. -7: which-began last year was inflawe are told that the recession is We can have no illusions about Long-needed public services,like;; tion.; The! paitiesTprimaril^v reover. this question because this is a schools, housing, roads,vhospitals^sponsible; for this;-.inflat'iO"hr!W6re Well, it isn't over even though and fight between the free way of life many other ways in whichsthe government: and organized labor. this is election tirnn in a campaign as we see it here in America and economy can be strengthened and Here is how it worked. Tf the slave way of life as it is prac¬ year. strengthened in the only place -''. Government encoUraged the de-7 . scal€ .unprecedented in the peacetime history of our country. , Too few of the American people realize.; that entirely aside from the record defense budget we have a record budget which has no conneetion with defense whatsoever. "'x' Who is responsible for this great - surging growth of Federal activ-r 7;''-!7 ity? y;.;7* C ' . • , ticed behind the Iron Curtain. There lion are one and one-half mil¬ unemployed in America Our Unemployment and the .today than there were one year U. S. S.R. ago. That is a fact; those are the This is a real threat. Anyone official figures. who has studied world affairs know that the military po¬ tential of the Soviet Union is such tnust that . their overrun ground Europe troops in a very could short time. .' ' - tember work 7.2% was , „ in the last is pressed must be taken as a real threat and not just as something that shrugged off. It is also . is a a power fact that leader of the free our can be world, and - we will it or not because it is the one nation thai has the material resources and the - * An address by Mr. Meany before the Bricklayers, Masons and Plasterers Union's 65th Convention, Atlantic Citv. ft. i. Oct. 14, 1958. ' per cent emergency de¬ the Labor De¬ partment's own measuring rod, so if that is so, we find that the en¬ area tire nation nation it should be the leader of the free world whether considered Six as a whole is over the 6%; 7.2% for the month of Sep¬ one the of labor must face a unions. :.1 tremendous power in the the basic industries metal that workers, employ industrial * Reviews Kennedy-Ives Bill's \ye>Jare■ directly concerned, but in my it a is problem that the nation as whole must face. It should. bf» the and a concern not of just of for workers. Then, of . : 7 S?ve^the!; ^p^yer, ^ choice^ have.ran- we course, ^ a stpke and ^ 2^^ let your- eom- committee on " labor rackets' aroused the public and it McGlellan became evident that labor legislawould be needed. When none "was forthcoming, Senator Knowother movement.^-'And^ wages went;^provide In ' ••t , fectively the most extreme: dev Background bookmandsf for repeated wage increases { ; This influence is demonstrated ■ and frihg€Fbenefitsv So began? the in the history of the Kennedy-Ives wage^priee? spiral;with which all bill, which l would like to recall the entire nation of you, and youi r ctfetomers,; be- briefly * -' 7 those who,speak,; came so familiar. The big Unions ; Fi t :therevelations Gf/ the because problem that we are. .faeingy fac^, that could affect the nation^itself, Industrial employment has come and that is the drive• ttiatiis^njdw; up a little bit, but unemployment on to hamper and if possible deis still near the peak in certain stroy the trade union areas. In the transportation equipment industry, unemployment is 12.6%. tte in politics tind last Congress. other tember. Sbi? mZmenU ButTLv ®lsc;,;,spMiiically. ex^utjpt,., labor problems> ' an by is ... . that —;:!f: that \ve'are going to have to face. : As;{a 17 result,/[many 7: employers Thisis one oftheproblemsthat. wef^in no posifibn* to -resist ef- of the national 16 years. ,. So This; percentage of 7.2% for the month of September they have shown in the field of air The labor movement used^|o. be non-political, and its founders oS 7?^ TPWS-, ^ T^emenHs or jshouiji^aws,. which apply .-to^TOrone. ^t pressure group STrotr force. guided. missiles and ;Vxl"veiom'cm encouragea cne ol theJpurchasingfS tSSHk?® furnishes Which The unemployment on a nation¬ wide scale for the month of Sep¬ has been exceeded in four months The technological advances that anvthiivrT mpflns and ^ose politoans who are 0W17 ga^d seeking their support more . • rpallV it ^ It sounds almost ridiculous ito think that at this late the contributions dateT-after that Continued on the trade page 33 . ^ A m erica's Amen.ca s ■. ♦ An address m", by inventiveness and ® Mr. f Ufh'tiUF needed senators tried legislation to as amendments to a bill on the SenT floor.- To prevent.this .move from succeeding, the SenateTLabor ate before St- Continued on page 30 Volume 188 Number 5790 .1 The Commercial . and, Financial Chronicle (1783) i t > '♦ ♦ « ♦ * < ' ■ California IBA Group Elects properly equipped in mathematics and physics—are rushing into this The Wealth oi Nations ./SI new a in the Oceans By ROGER W. BABSON ; strck Sho in Kind™!1' Uhatthe bismuth, iron and silver salts, and ,n f d .i;ak T-h have tional Bank, newly Vice-President, elected Chairman, Crocker-Anglo California Group, ment Bankers Association of America is congratulated by Na¬ minerals from for . ' ' • ■ / H. Bingham, Hiirry, Los Angeles,; President, Bingham, Walter nium is still being & .secured ' .. ; , from ; ; river , i SAN FRANCISCO, All trip of 17 days from New Cape Town has impressed especially with the mineral Group, Investment Association of rne annuab conference of the national elected chairman of the Cal¬ ifornia ers ance America, at the Donald meeting, succeeding Curtis ,H. Bingham, President of Bing-ham, Walter & Hurry, Los An¬ geles. ' :G.•• Harvey Executive Committee Franklin, manager, Municipal Bond Depart¬ ment, Merrill Lynch, Pierce, FenSmith & ner re-elected was Tn M Frpnrh ^t rvf Vir-P the . Cal- was TnV to Investors headed Bank, Los Angeles, was the suebidder Oct on 27 musfion CiVy for a the at interest net a "bonds/bearing : . ^ ^ to new !the for Most of it is baled cattle ton. the location of its fish- product to produce milk of ?iesia, citrate of feed at and sold about ^/Recently**there , . , ironnd antacid, powders. mag-; Company of Buena Park, Calif., These, last are - women selling men products . . dealing ..with For • - law Inv. • - Kiri This offering is a authorization land for and new for a buildings 1956 lobster tails to the United States is the first to catch my eye. made only by the Prospectus. October 23, 1953 " 400,000 Shares . '. of of existing existing . 'j.. - * - . CORPORATION, Planning of Penn. ....... l ; Common Stock, $1 Par Value p.ape' President of Investors Plan- *. and schools and additions r^r-.ioHolinfr remodeling schools. of part °| Pennsylvania' ^ g ?treet» haf an~ nounced the appointment of Ray G. Bender and Augustine Price $15 per share J. . * syndicate bid a premium $309 for the $2,600,000 sewer The bonds. These bonds are part of a "authorization Marasco to Assistant Vice-Presi¬ dent. Mr. Bender was associated with Westinghouse Electric Corporation •iiori and additions to sewage dis- and United States SteCl Corpora^' posdl plants and for new sewer tion prior to accepting a position lines and replacement of old with Investors Planning Corporafines. * - * " ^tion early this year. • ! for construe- Copies of the Prospectus in t- states securities iii which the and in may be obtained from the undersigned only - undersigned-is qualified to act ds 'a dealer in Prospectus may legally be distributed.- which the — An issud of $1,400,000 street im-' Mr. Marasco has been with Inprqvement bonds went' to ■ the: vestors Planning Corporation sihCe*' .Bank syndicate oh a premium bid 1954. He was ip the bankingfleld; of $1,109/ The bonds are part of for several years before enter-' a 1947 authorization for extension ing the investment business with/and improvement of streets, pur- Investors Planning Corporation. ' ^. : • and which fore wastei The exportatton of ■ New Issue PITTSBURGH, Pa.—Edward N. nrpminm of ^2 099 a are . Official Appointments , $3,725,000 school bonds, the bonds > . . departments. been /a ^*2?wining^ooav1^?^?^' ' Not groups, through successful com-. petitive financing provide Calibuilding will house offices of fornia communities with an as-' Police and Sheriffs Depart- sured source of funds for needed enforcement. $20 per has magnesia, "and- which has thousands of Opportunity for Chemists conHall of Justice. The 1 1954 fall. and Jjust now "electronics", is the fad and many young men — not ..... Thp born authorization will be used to new gov¬ Gloucester, These bonds Prison, Court .Rooms for public facilities. Traffic,; Municipal, and Superior 'courts and all other offices and'; nf t new ments, to ^ , more than $657 million for civic improvements required by Caiifornia's fast growing .economy. The Bank and Its underwriting A a was; exfensiyely used in making, steel, '.come from the ocean, or from the found in-the ocean, rubber, and ink. . I am giving • land or the air. I hope to find in The Bank group bid a premium" We have»barely begun to tap -thei special attentiop to learning what- Africa even greater opportunities of $259 for $600,000 playgrounds' chemical resources of oceans,, riv-.' Africa is doing along these line. ' for profit from products' heretoand recreation centers bonds.-ers,and lakes, which contain most f ; •4 rpi,^ X* premium of $5,759 was bid for $15,425,000 Hall ; of. Justice .bonds. Proceeds from the sale of according maturities, Dec. -1, 1959 to 1973. .struct as the next both in the vTljiahle^inesS and 3.15% ! tyiese bonds as I * hedge against inflation, I purchased some land near Eureka, Kansas, which has been planted to alfalfa. This gives me three Crops a year, given normal rain¬ a •.'"I:" ..'I-:.-!'-* 'today will be ,.. ing the past 12 months have raised to As . Proceeds to 2.00%" ing and exporting,. the water. selected huge * realize.. For instant^, that an "of good sea-floor ca'n produce rates of provement of existing ones. , . ; 3%, were Bank-of America and the under- investors to yield writing accounts it managed dur- to to educate and capitalize the native labor force for manufactur- coupon 6%, 2Vz%r--23/4% "reoffered cost tunlties ln South Africa should be fries laboratory. This laboratory's! mankind are part of a 1955^of the mineral wealth which has for acquisition/ of been washed off the land during playgrounds and recreation" millions of years. This includes city and county of 3.06%/The centers and enlargement and im- "; & County of San Francisco various purpose •bonds ' boon to where raised, ranci ,0f far - greater • value. The; from the sale of these boiids, partc^qgan; ^as a producing potential; of a 1954 authorization, \yill be times that of the land. used-for additions and improve- " The > , the world, ho<,Dital Blyth;rn®"ts ™ l^e h^Pltal and Security First National of Mass.; or g end if I lived in the know, how- pleased that the ocean > !by Baiik of America N. T. & S. A. i and including; American^ Trust ressful the air Pe?soriallv^T wn11i? he inIS Swi J?th hniine« thnn^n ' TfPLhS pnf ^ ? ifvlS S - premium of $289. " toSl much electron-; automated fac- else the chemicals foiind water sell at $25 a ton! I am not comacre, contains more thari 5,000,000 tons plaining about this, profit, which nine:...of..useful essential*Chemicals. The comes from the processing, hilt I rhnqp Of rWhi Of wiv rpmoval of ^ oi ciam meat> against one ton most activ$ U. S. company in this/use it as-an illustratiori that profit ; amd■-nw%affltf;ro£*'beef' pork' or lamb on an acre - field today, is the Dow Chemical in the U. S. comes from manufaC°f Pastprage, On land we farm£ Company, which has been suc- turing and merchandising rather than from agriculture. Another ^igndis._ ,: /i!:- only, a .few inches of topsoil, but< ^sfuRy securing ; magnesium, i For $675,900 S a n ^Francisco i Water' turns out vegetable from sea water. Recently Merck j l Recently Merckj illustration of what I have in mind hospital bonds the Bank syndicate',liatter in. far greater quantities; 'Company has been using this-is the great success of the Nutrilite bid a " ; jn of s^eetcS-^^traLs Totaling $24,425,000 (San Francisco), am ernment* has or .S school . San Francisco Bonds Company, I be-fought a bustion engine, both of which are: will probably be offered stocks of This means that when I buy build ■ these tablets, I am paying ovdr U. ,S.,; $1,200 a ton for alfalfa which I Pr^iHpnt nq ft? & Co toriea The Navy -«is just to the great import- under attend ically controlled the floor oceanography, will a ^T Anpplpq'' used by almost every householder, i new companies which will Chairman oT thnSomhiatiS Yet there are other far more im- vPriVate laboratories in the ^ Nominating portant things .which few readers because a cubic mile of sea pnmmi+tPP uommiiiee. underwriting group greatest of a- was the discovery of fire; then the ~ tot-work will be in connection for finPlv discovery of the wheel for trans- with discovering, catching, procYhrnnJ,thi« ?T i fin/ut' portation; then the discovery of* essing* and marketing fish prods^e i nna H is steel and of electricity for indus- "cts- 1 hope, however,*it will be-. r^nld at wSiS try. The latest great industries* gm the study of the wealth of.the Xy Mass n have been in connection with the ocean m other ways, as is now al ;!>i-DU Ior telephone and the internal com- being done in Africa. Readers».w^»unarea,xaDxeis. . , * . : An - ' Greatest Undiscovered The R. Los An- . Rlvlh Sec¬ > . of - cover up air and Treasures Connor ifornia Group. J. retary-Treasurer. N. and .The Templeton,' resident partner, Mitchum, Jones & Templeton, Sacramento were elected to three-year terms on the Vice-Chair¬ elected was President, , geles Murray Ward, resident partner F. Hutton & Company, Los and Moulton, H. Moulton & Company, of E. man' wealth of the oceans which association at Miami Beach, Flor¬ ida Nov. 30, Dec. 5, 1958. ? Bank¬ • war three-fifths of the earth. annual -Angeles for one-year terms effective at the close of the *ger J. Jacobs, Vice-President, Crocker-Anglo National Bank, was elected were feet. ^nW should to sel1 Products made in can waking train business administration and rlearn is onlv as far down as fish y as ar rlown as fish dred v beds, riiWnri 1 to be to be - operate nets and draggers, the distance of a few hun- But the Calif.—Al- wo for Sng - Thi?Wi to dredge The ocean-which I Rockefeller"? Mass beiow the surface, while oil wells down two or three miles. ermen W. Babioa York to / bv the Hole resnect of should ^armLuticnl LS ocean several miles down; Many mines on land are developing ore discovered a mile or more »ever , Roftr ura-v . Chairman,- (Curtis «!* ' Future9 (extend , while ..gold and outgoing - thousands of years, Invest¬ the have ereat insteld ;of the ; the surroundzing watershed (left), at Woods heavy cables been collecting j. Jacobs of he!w e v J. T but doctor - tion founded r of ; Alger prod-, provides vitamins! ocean to control infection, and stimulants for farm feeds. ; course, magnesThis is my, first d o o e s ucts, the Readers really interested in the -subject should visit the. institu- mineral wealth.. hope of - - iodine. What f oceans bottoms many other valuable compounds., In addition to the industrial °CeanS' th°UgW 35 1 ,imd in S°Uth A£rica' r incalcul¬ able . lum. and ex- student knows ; own * a llttle .money Per« lead, and, of .companies E very ers.: the industrial reference -to the oceans,-which contain such huge quantities of magnesium, - ocean in 1t'JV mining hoards of gold, silvier, iron, top- antibiotics w for investment i .a ofthe tomorrow's mankind; . !rt resources however, I were just entering college, specialize chemistry with special , accords to the untapped -industry.? if, young man I. would Enthusiastic about potential opportunities for investors and college students in the wealth of the ocean* Mr. Babson ,--v- 19 i'i i- » ' » , ; F. Eberstadt & Go. * ^^ 20 The Commercial and Financial Chronicle (1784) * Inflation and Securities ■■ of Chairman City New York Mr. Martindell will cause avers new a of the dire consequences warns Leif H. Olsen long are run forbodingjy had reasonably a predictable upturn last December, I in is the the stock ket a downturn new specializes This a program would Sept had in bei' the Gov¬ ernment not paper money feared to take drastic a n less the before The cans While the ket. Jackson seems astounded is becoming less and dependable. No Long Run Hedge in Stocks election. puolic become a longer pos¬ no t i- inflationary action has Martindell b y the 10-month It as is majority of great now a business mar¬ ket has been States of "The Key to Divi- an attack serve better For Leif Bank of H. Olsen New York.. • credit as is this in lo becomes retard, too un¬ for the the popular, the Government sparks a turnaround. These alternating periods, each lasting less than a year, will become and less manageable by. All inflations more as end violent times goes trtis way unless they are stopped, and they only be stopped by measures can that would never be sanctioned in the United States. We have in our now reached the stage inflation cycle where gov¬ ernment to bonds institutions. will we be can Within undoubtedly sold five only years reach the view, because they provide a necessity, there is an expanding demand for their product, bad debts are non-exist¬ ent, labor cost is negligible, and of American business. * nical outlets prosperous flow Hartfori Electric U. is man at the far end of can produc¬ tion line the Ameri- ' Underwriting. g r.o u p s headed jointly by The First Boston Corp., and nobody likes think to happen Halsey, Utility Bonds Stuart Putnam of sale to issue American man' ceased to function. 'f Dr. C. •' fc,. Maniort token has man a vital 4.42% American of Too business. "the have us complex far as old share many river" man Private enter¬ prise just won't keep rolling along the intelligent help and $56 without understanding all of American panies. institutions solvent, to keep the bond prices purchasing power. One only has to go back to the financial record of the 1920's to see that the Ger¬ man government bonds sold above *From the a Public Education talk by Mr. Martindell before Foundation for the Economic of City,. Oct. 14, Women, inc., 1958. New York that stocks Less than managed common any will have to be reasonably main¬ tained. It is not the price of the bonds that will suffer, it is the value of the bonds in terms of revenues income of $64,008,000 of $15,679,000. am board is to member Board State now of of the Indiana Education. Our besieged by requests Commodity Club of NY per se are President: Werner Lehnberg, tion 100 companies stocks York now Stock reasonable excellently with listed their measure of the on Exchange give infla¬ protection. These 100 securities are to Second Vice-President: Charles language in found among the power and light issues, the chain stores, super¬ ference each ten W. Scranton & Co. The use utility ; company proposes to the combined net proceeds of . basic American values to is killing American freedom in this country at the very time that we need to strengthen freedom against communism. The business of freedom needs intelligent "busi¬ ness management and needs it. badly. Freedom needs to : know; who its competitors are right here ; at home and how to fight then * through intelligent, advertising. Insane Congressional. Spending anything in five ment on the Soviets have done The extortionate spendthrift govern¬ years. of taxation a makes the a continuous American assault worker's pay¬ check which you credit men must tion to keep government limited in the interest of freedom. difficult CITY, Mo.—The firm markets, the chemicals, the phar¬ name of Ruppert Investments, Inc., maceuticals, the oils, the soap 1016 Baltimore Avenue, has been companies, and the metals. »To changed to Van Hoozer & Co., Inc. choose these companies one must know that the physical sales vol¬ shares stock at the for free depend upon for the repayment of Secretary: Irving Hankin, Mer¬ the billions that you have loaned Lynch, Pierce, Fenner & Smith. to the American people. Liberty Treasurer: Julius Rutkay, An¬ means limited government. It derson, Clayton & Fleming. was the purpose of the constitu¬ Now Van Hoozer & Co. common share one this financing program for the our American system * payment of $27^00,000 outstand¬ enterprise which is very * ing short-term bank loans and inadequately taught in all ourv apply any remaining proceeds to schools today. This popular indif¬ the company's continuing con¬ of rill KANSAS per teaching of Mattey, Bache & Co. be share for 149,633 of Chas. install teaching of the Russian Indiana schools. On the contrary, we haven't had a single request to strengthen the pre¬ $50 21, 1958. The subscription offer will expire at 3 p.m. (EST) on Nov. 17, 1958. The offering will be underwritten by a group headed by The First Boston Corp., Putnam & Co. and history. a the at 4.96%. shares held of record Oct. struction program. Total; plaqt expenditures for 1958 are esti¬ mated at $22,000,000. Construction spending for 1959 is estimated at $12,000,000, principally for addi¬ tions job to keep It is a rapacious government within its prescribed constitutional cannot be limitations and this a limitations. done without That electric transmission. and to electric and The v d interest less V' : V, bonds will not be re¬ new deemable prior to Oct. an fa¬ gas-distribution cilities... of hedge against inflation. In¬ E. F. Hutton & Company. First Vice-President. Milton W. adequate depreciation reserves quickly erode the true values of Jiler, Commodity Research Bu¬ tne stocks of nine out of ten com¬ reau, Inc. be forced to take these bonds, and a later point, the Government Meanwhile, in order net no New will have to take the institutions. and I offered yield per rate of living in the The biggest competitor in this Elects New Officers adjustments can be had. country now is the government The Commodity Club of New of the United States. (4) Above The insane all, the investor turned speculator by circum¬ York, Inc., has elected the follow¬ extravagance of the 86tji Congress stances beyond his hurt American business more than control, must ing new officers: point where these institutions will at operating world's to of additional people to whom it has brought the highest standard to, .yield ,about maturity and stock Concurrently the company is of¬ fering to the holders of its com¬ mon stock rights to subscribe at American busi¬ as is concerned. ness interest to interest in what goes on upstream " ferred in priced at 99.25% and were accrued credit the W. public yesterday (Oct. 29) a new of $18,000,000 of 4%% first bonds By the same • Chas. and mortgage bonds due 1988 and 100,000 shares of 4.96% preferred stock' of $50 par value of The Hartford Electric Light Co. The business if the credit Co. & Scranton & Co. offered for would what Offers and, ultimate The consumer credit government surrender to communism. - rate remember to communism. consumer and money but the only alterna¬ established tive is complete socialism, tyran¬ necessary orderly covering banking, insurance com¬ panies and the securities market.; hedge against inflation. hedge in the investment point of f worse firmly now of one or staff of "The Wall Street Journal" . when Hie American winker's on forestall ultimate surrender Re¬ - and : proper . Government-steps Peace" sion of the Federal Ameri¬ First the ? Relations Congressional spending hurts U. 5. A. anything the Soviets have done in five * securities and business. College of Law and Inter-Governmental on solution requires popular support, in order to install proper limitations and, thus, time and money think of the stock mar¬ early stages of inflation. As time goes by, however, as it has now, inflation is nc respecter of the share owner, except in very lim¬ than more paycheck. & Co. Inc.. and, associates offered yesterday (Oct. doing precisely what 29) an issue of $10,000,000 Texas reasonably can be expected" dur¬ ing a 'serious stage of inflation;- ited areas. Those who choose Electric Service Co. first'mortgage for inflation, with its dire conse-'* the [dock market as their means bonds, 4 •■»%> series due Nov. 1, quences, is now in our economic of protection should follow cer¬ 1988, at 101.656% and accrued saddle. interest, to yield 4.40%. Award tain rules: of the bonds was won by the un¬ Perhaps the best definition of (1) First, and most important derwriters at competitive sale on inflation today is, too many peo¬ of all, the company must be ex¬ Oct. 28 on a bid of 100.9599%. v ple chasing too many dollars in cellently managed. Net proceeds from the sale of order to buy unnecessary mer¬ (2) The enterprise must be well the chandise of doubtful quality. Since bonds, together with proceeds financed and, therefore, able to derived from the concurrent sale it has been estimated that most of acquire other products and other of 80,000 shares of preferred stock, our national expenditures are for companies under favorable cir¬ and other funds, will be used by luxuries, the foundation of our cumstances. The best holding at the inflation is greed, the most uncompany for construction pur¬ a time like this is a company of J pleasant of all human charac¬ no funded debt, rather than one poses. The construction program is expected to cost about teristics, $33,000,that owes everybody. Surprising¬ 000 in 1958 and $25,000,000 in 1959. With an indifferent public, any ly enough, when money is cheap The 1988 series bonds will be full blown inflation, like malaria, in purchasing power, it is hard to redeemable at general redemption must run its course as malaria* come by. This is because nooocfy prices ranging from 106.16% to does within the body of an indif¬ wants to lend it. Who is anxious par, and at special redemption ferent victim. A malaria attack lo put his money out at 3% when prices receding from 101.66% to is "characterized -by precise the annual decline in purchanig pe¬ riods of chills and fever, alternat¬ power is 3% or more, thus de¬ par, plus accrued interest in each case. ing with a rhythm that is more priving the investor of any real Texas Electric Service Co. is discouraging because it is pre¬ return whatsoever? engaged in the generation, trans¬ dictable. The third stage of in¬ (3) Companies and industries mission and distribution of elec¬ flation, and that is what we are must be avoided for the long term now experiencing, is likewise where there is both a combination tricity wholly within the State of Texas. The company, Texas Power predictable and frightening. of high labor cost and regulated & Light Co. and Dallas Power & Must Expect Government return. This is true of all the Light Co., whose respective sys¬ Alternating Actions transportation companies, whether* tems are interconnected, are sub¬ are railroads or airlines. Investors must expect, for some they sidiaries of Texas Utilities Co. years, alternating government in¬ Strangely enough, light and power For the 12 months ended Aug. spired advances and declines in stocks offer the very best hedge that one can wish for from a true 31, 1958, the company had total rise, the stock Commission and constitutes years Infor¬ mation Karom, He declares "insane" , formerly Public and Dean Manion labels current Federal taxation "extortionate." Chief of the excellent an of Author V United States and be a person of Before joining the Federal Re¬ substance. From here on in the serve Bank in 1956, Mr. Olsen was capitalistic system will reward the a financial writer for "The New speculators — those fortunate York Times'' covering ban king enough, and courageous enough and the money markets. Prior to take the steps called for when thereto hbwas a member of the have em must It is who do Chairman in in Boynton Bend, Indiana Former Dean, University of Notre Dame Former bank analysis.... Mr. Olsen sible to remain an investor in the Novem¬ -occurred One capital? to one speculator. month. downturn ber is Doran, Manion, South conducts and at a time when a $1,000 bond bought only a package of cigarettes.' What .By CLARENCE MANION* - Attorney-at-Law, Vice-President stocks bank par, even making which will see mar¬ retreat next - state now can a Schapiro organization no ' we as The was as ft t In the Inteiest of freedom fective Nov. 1. of inflation and that stocks in • Just * IiSHuldil of the firm ef¬ hedge against inflation. Deplores the situation where investors must become speculators and pre¬ dicts the Government will have to maintain reasonable prices on its bonds or eventually will have to force institutions to take government bonds, or take over the institutions. Suggests four rules for those choosing stock market investments. the i r i Thursday, October 30, 1958 . o Schapiro Co.. A. Schapiro & Co., Inc., 1 Street, New York City, has announced the appointment of which downturn is in the making He ■ . Wall -- stock market retreat next month. a mo »'±i , M. of Management Board, American Institute the / M. A. By JACKSON MARTINDELL* , . cost than to the 1, 1963 at company 4%%. Optional re^ prices range from 104.38% to the principal amount. The special redemption price is par. The new preferred stock is redeemable at $53.75 per share on or before Nov. 1, 1963 and there¬ after at prices decreasing to $50.50 per share after Nov. 1, 1973. e. m p t i o n ; Hartford ritory Electric's service ter¬ approximately 1,000 square miles in Connecticut. Prin¬ cipal communities served include covers Hartford, East and West Hartford, M a n c h e s te r, Middletown and Torrington. Population of the area is about 675,000. For the 12 months ended Aug. 31, 1958 operating revenues were $50,508,000 and net income $6,927,C00 against $48,784,000 and $6,962,000 for the preceding 12 months. / proper and popular support understanding and sup¬ Chicago Analysts to Hear CHICAGO, 111. —Dr. F. • Otto port cannot be generated without Haas and W. T. McClintock of business management. This will Rohm & Haas Company will be PASADENA, Calif.— Jack D.? be hard selling. It will take time* guest speakers at the luncheon Hay is now affiliated with Shearmeeting of the Investment Ana¬ pany's business can be financed son, Hammill & *A statement by Dean Manion before Co., 348 East lysts Society of Chicago to be held 44th Annual Convention of National Con¬ without the issuance of additional Green Street. He was formerly Oct. 30 in the Adams Room of the sumer Finance Association, Bal Harbour, shares. with J. Logan & Co. Midland Hotel. Fla. ume be doubled in the next ten years, that an adequate mar¬ gin of profit can be sustained, that the growing volume of the com¬ can With Shearson, Hammill (Special to The Financial Chronicle) Volume 188 Number 5790 . .The Commercial and Financial Chronicle . (1785) improvement market mean to all banks engaged in our Title I pro- The Growing Opportunities Property improvement Loans In 21 ' jyVllll AM +Vk«sn $11 billion. million 50 Federal Housing: Administration, Washington, presents D. C. for The almost inexhaustible market for home improvement loans depicted by FHA official after observing that the self- modern We like home to refer to improvement the "3 R's." the FHA program mighty important words... analyze Remodel- rents, equipment, etc.-—and have a sizable, reserve for insurance. Repair-Repay. There Wrapped up in lenders entering these ''three is $8 dustry Title an billion is shot - not insurance the in Roy F. Cooke portion of properties. this money comes income. or nanced out of On hand, at least 20% repair the A fi¬ be lenders industrial States FHA Title I Is • * An address Instalment St. to a by Mr. Cooke . . . $5 dis¬ $200 to nearly loans have larger on the books is for smaller loans. as this Wn m q butQtni occupied. it nn tubs tnUiinn 23V What good business and Let imagina- evaluate this tremendous and thl ^g8 family fo^Sions seeking to establish time, active Title loans has I in its lVi insur¬ New at loans the day and month million. . . are rate of These We in¬ know it's the way to credit obligation. Also, it showed that of families with annual in- to from only be tion $3,000 to $7,500 per 40% used consumer developed. of 60% market a The basic funccredit consumer the is is in these purchaser, and figures there pent-up purchasing aid to view of lot loans. the in — . power nation. ... , _ „ the question is show ures we are and the on (4) a common sense credit consumer accepted perfected offer sell or a solicitation of offer to buy these securities. The offering is Program paying big Governors of the States; of West Virginia and Vermont have issued increased $100 million in out- Home Improvement Month Procstandings compared to $20 million lamations urging alt citizens of for lenders on their "own plan-" their respective> states to remodel The American Bankers Associa- an<* repair their homes, tion survey of delinquencies reAbout the biggest compliment ports "own plan" delinquency at paid the Title I program came by L48% and Title 1 at 121%> °ur of .^.vlsit.or from Australia. 0wn Call Report/ as of March 31, Aftar sitting in on one of our reveals Title I delinquency to be Title I Industry Advisory Corn1.11% in 1958 as compared with mittee meetings he spoke: " I have reports business has same This low ratio in^jcates that people are paying on their Title loans visited all countries of Europe studying housing but this is the there is some unemployment. Xve seen bankers, ..ndustry and 1.29% in 1957. eveWugS ,, , To assist lenders in collecting delinquent accounts, have we the 5"Pre-claim Letter." This "Preclaim Letter" is sent at the redoest of the lender by the local FF^. off10® to the homeowner advising his account is overdue ^a^7^ ^1.paiA^al^nce-' Jhe result.s ? J? ar?.azingly successful, 39 % ot all delinquent accounts, where this letter has bee)1 ufed> ^.ave be<rn paid in full ?r made active again. This letter is now m nationwide use and available to all Title I lenders. Black lountry f In fjrst and only which rrlTrTh^coZo^ood'o^tSe homeowner " in the world." he said. Named Trustees Thft eJecjdop.qf, Maurice S. Ben¬ jamin and D. J. St. Germain as trustees of the American Surety Company ot New York to fill existing vacancies, was announced by William E. McKell, Chairman and president;# Mr. and And Contractors jamin investigation, 6,500 such we oper- the New of Ben- firm Hill & Co.,- which corn' operations in 1921. A he holds industry, membership in the New York Stock Exchange, is art asso- * assistance given apTitle I lenders is the policing of unethical dealers and contractors, commonly known as founder the of veteran of the securities Another over investment menced proved have listed ators who Benjamin is partner senior York is Listing Unethical Dealers ciate a member of the American stock Exchange, and a member of long standing of the New York Society cf Security Analysts. Mr< st Germain also has been acyve jn the investment business j:or many years, having founded to by the Prospectus. are industry by profession. credit sumer code of ethics the borrower builds . . the and Good con- character lender will buy his under certain 150,000 Shares FOREST LABORATORIES, Inc. CAPITAL MIAMI, Fla.—Loren L. Cluster Program" is most effective because legitimate is now associated with Goodbody & Co., 14 Northeast First Avenue, He was formerly with Francis I. contractors du Pont & Co. tions. This "P. M. List periodically to give us in with per Copies of the Prospectus share may be obtained from con¬ Street same the regard local Groups which ized in J5M»H We communication ELECTRONIC PRODUCTS, INC., Plainfield, New Jersey. Is engaged engineering, designing and manufacturing aircraft and precision components and industrial gas burners. The Company also engages in the overhaul and repair of airborne and elec¬ in the business miscellaneous tronic of accessories, instruments. .£■ Advisory Com¬ For , your copy ' of Offering Circuluf the and Title have I admiration Lenders been STOCKS 240 W. Front • MUTUAL FUNDS 744 Broad St., Newark, N. J. PL 5-3700 MA 3-0190 37 Wall St., New York, N. Y. Please Committee BONDS • St., Plainfield, N. J. organ¬ larger other .^ritc to: BERRY 6- COMPANY banking com¬ munities throughout the nation. Our New, York, N. Y. 31, $100 per $100 of Debentures HAYDU practical operating point of view most helpful and useful. We have for Wall DEBENTURES December Subscription Price: of the nation. Lenders our ^ due mittee and find its advice from the the Greenfield & Co.. Inc. area constant \ - CONVERTIBLE fj7 W Committee Advisory Committee graphical A on sists of 25 of the leading consumer credit bankers in the country. are products, inc. SUBORDINATED These lenders represent each geo¬ PRICE ELECTRONIC HAYDU advice. Credit Bankers Placed Advisory home- $300,000 that FHA Title I may keep fingers on the pulse of its pro¬ gram from a practical operating approach, we have created two Advisory Committees who meet One ($.10 Par Value Per Share) the serve can in it does not de¬ . So STOCK (Special to The Financial Chronicle) condi- stroy it. v except paper regulatory all This dividends. It has met with: such an enthusiastic reception that the a should be sold basis; banking T their figinsuring 70% now of a11 loans- The show that Title I After thoiough asked, • should be extended in accordance '''*!■ the "s"cde^shoe boys'1 or "dynamiters." . Lending Criteria Often with 37 for lender, the . Now what docs this huge home $2.50 the manufacturer> the dealer and the and address manufacturers' sales homeowner' meetings, conventions of trade To give an indication of how associations state and local groups TitlaJ ia grov™g- three months *2 them on the °Peratio" ag° thTe F?deral Reserve^ reported of Title I as this "What rules for granting consumer - . the is made only operates all of a avail¬ country. However, 011 the other hand, sales promoted by unwise and risky credit use are dangerous to the economy of con¬ NEW ISSUE an of iliai„ survey showed that 50% of families have no instalment , credit should Greater not an benefit we have an educational program underway. Our Dealer Relations Unit and Financial Representatives, which are spotted throughout the nation, meet with out to cheat and own J, St. Germain & good lender use?" swindle homeowners by not in- Company in We consider consumer credit as Springfield iix 1924 to The criteria I use, and this is stalling material according to con- specialize in bank andi insurance the most modern advancement in based on experience in both bank- tract or overpricing the job stocks. He is also generaLmanager banking and truly one of the ing and manufacturing, are: (1) exorbitantly. A disappointed 0f pirst Springfield Corporation, greatest creative ideas of this era consumer credit is intended to homeowner is not a good payer established in 1932, and of First because it enlarged the - buying serve the buyer rather than the on a loan. This type of contractor Financial Trust, established in power of the average man who producer; (2) c 0 n sum er credit and dealer is put on our "Precau- i922„ lacked cash for purchases. should be granted on a sound tionary Measures List" which to Title I is pleased to be one of the basis to create an asset and not al1 intent and purposes puts him outstanding pioneers in this busi¬ a Joins Goodbody Co. liability; (3) consumer credit out of business because no Title I. ness revolution. sumer Louis, St. Louis, Mo. This advertisement is that program balanced a serve $100 all moraUv . JSSU^ssssje buy and obtain possessions. which would otherwise be impossible if it were purely a cash transaction: However, a recent Federal Re- 5,000 reaches are r- , All in all, we have on . the amount insured often . being about modern a home. credit. of few a _ market! a sense tion able portfolio valued at $1Y2 bil¬ each make before These same per Going of same from sured going business. Association 1%. borrower has This rate gives the lender lion. recovery. a the in bigger profits to lenbecause the initial cost of put¬ ance proud to report that is Credit re¬ .75 to to one-half of rate to million Business I ifi credit which leaves At and loans, had any interest in instal¬ am 4?!? +w fn Tn wL ii£ central hSinid mi water 9' ^ rnmion^io bath year the unsecured loans to homeowners to Title lowered from ting sizable loans or induce Today I +Uf "built^ btfore S were comes ers lending. It developed that it was up to FHA Title I to lay down the broad principles of consumer credit and guarantee loans until lenders gained experience, All this was FHA of This resulted ment credit ; the $1,000. sagging economy. In those days few lenders, especially banks our 2 them v . most oi Snn bL Jnf all very promote of increased other began in 1934. It was a depression device to stimulate our savings The During this period of premium reduction, the average loan has to sav¬ of this home investment must experience was • improvement loans; Old mtf rest to recent rm-i them. good net profit, plus 90% insur¬ ance on the unpaid balance in event of claim. by lenders. to dollar a program done each on premium has been April 1958 count. The FHA Title I loan insurance and its own way by one-half of 1% insur¬ "rerhpined the their maintain homes ings rate But yearly maintain great the FHA Title I .65%, in August 1957 to .55%, and outlay by American homeowners to new duced three times since 1954 when a ex- penditure of $8 billion, but the Years i 2^17^0 pays a premium ance provement. This 60 the net proceeds of the loan. im¬ one I charging in¬ . home as program each month. little words" than more 26-30 rpwin ?n *^ -10n ?°"sfeS can engaged in instalment credit : are Are shadow the which ^ • ■* ' ^ low ones can cast on ilie 165,000 s Sroup is known as .contractor-dealers participating in Advisory Committee, the Title I program > * It advises Title I how the program To help our contractor-dealers fill- insuring 63% of all home lending in about every county of the nation and every possession. We are self-supporting; paying all pm wmmmmmmrn of our overhead—salaries, claims, but re- only ,n These "3 R's" for us Title I symbolizes three little, in mm the last improvement." as 66% I\Ve have 12,800 approved lenders as T suspicion Th!^ consumers. for the dealers and further, * working market It is weU to -Ahome - without owner the Industry This year. house is a manufacturers, retail dealers, the National Better Business Bu- ' - y over improvement loans be¬ always want im- 50 years old or how government's home improvement loan insurance program does business,, and how contracting firms and leaders profit from it. each —whether' member presently spend $8 billion every year on their properties 20% of this must be financed by lenders. He explains ' • people ingete owners „ -i ?io^€^^oration^ddflVr01^Snnriit?nn" supporting FHA Title 1 home improvement held is presently $10 billion market and that a very large number of homes are more lhan 20 years old. Mr. Cooke points out that home a and y, are inexhaustible an home cause are V bemVhnnt oeing built are <4rVf There homes in this nation _ By ROY F. COOKE* Assistant Commissioner, Title I Vf| U11 ' • u-n-S en than rial 21 has a membership of men on the presi¬ dent or vice-president level rep¬ resenting business, building mate- send me a copy HAYDU NAME CITY of II WH 4-1812 the Offering Circular ELECTRONIC : • PRODUCTS, relating to INC. 77 I STATE I : 22 The Commercial and Financial Chronicle (1786) will Company have share for share. . . Thursday, October 30, 1958 . ber of shares outstanding—75,000 shares, \ par value $20.) 290,000 new shares of First Na¬ * tional common stock Of $10 par ' value each, This, would yield $7,The merged institution will have" ;' ^ 7 ;.^ * •*// *.. outstanding 92,000 shares of $20 ; Directors ofMerchandjse/ Na-:7. 830,000,'^f whichjamoynt $2,900,000 par value-capital:stock.; *' 7;c ; ' Jional Bank of Chicago, .'Iik^pnZ would^be^ad^d fa and the The proposed'merger will residt Oct. 21 proposed an increase in remainder of :$4,930,000. would be fiut vin suypltis. f.In: additipjav $1,-, in a county,wide banking institu- capital through,ya 1 for ^11 stock^ ;wdtrld 'be transfdhred ffom tion .With total resources in .excess^ dividend; .according to ;/,;an77 aft-'r undivided' profits into surplus; of $62,000,000, and total capital. nouncement from Kenneth K. Du Thus present capital stock of $23,funds of $4,478,000. Trust assets Vail, President. will exceed $72,000,000. * : The proposal would raise the 100,000 would be increased to $26,000,000 and present surplus of The merged bank will, have *1^50,^ $28,000,0007 would be raised. to eight ; offices throughout the 000 t° ^i.SOO.OOO and- _increjse $34,000,000.; v7 ;:.7. > v county located in Morristown, inimberoi,shares by 35,000 to 'Ji":With the proposed enlarged capMadison, Florham Park, Morris, u'uf ? ?.n su,^ieCi. I1!1/ italizationin.effect,FirstNatiorial Plains, Denville arid Chester serv- approval of the Comptroller of the Bank would also have, besides the ing the banking needs of rapidly Currency and votmg_of stofkhold$60,000,000 capital arid.; surplus, growing Morris County. r cis_at a special meeting ivov. 4. Under the plan, shareholder; approximately $6,000,000 in jundi4 n®w. nam^ ls' P*anne<* for the ^ duld receive one share at $10 par yided prpfits and about $8,000,000 merged bank. ^ .*. 7; value for each 11 shares. owned, in reserve for contingencies, mak¬ * * * ^ Du Vail stated. Scrip certificates, ing a total capital account of ap¬ Bank of Passaic and Trust Com- marketable for a stipulated period, proximately $74,000,000: -; 7 ; 7 # The proposal calls for the new pany, Clifton, N. J.f has changed will be issued to avoid fractional its title to Bank of Passaic and shares in the stock split.. Hence- capital stockto be ' Offered t td Clifton. ;■> *7 -'/v'v .'•* forth,., the directors plan to con- stockholders of record Dec. 2 bit • , News About Banks ... . , ^ ' CONSOLIDATIONS ^ NEW BRANCHES Bankers and NEW OFFICERS. ETC. REVISED CAPITALIZATIONS " Tbc First National City Bank of to an announcement on Oct. 29 by New York announced on Oct. 22 John J. McCloy, Chairman of the that William I. Vice- Spencer, Board. "The Union of South Africa has President, has been assigned gen¬ real potential for economic eral supervision of the bank's Pe¬ a troleum Department, succeeding growth," Mr. McCloy said, "as in¬ J. Ed. Warren, formerly Senior dicated by the rapid progress it has been making, particularly in Vice-President. V v 7 recent years. We believe the fa¬ ; Mr. Spencer has been instru¬ cilities of our bank, offered lo¬ mental "in the development of special banking services for clients cally, would be of service to the area as it continues to expand its in the petroleum industry. As ad¬ industrial development at home ministrative head of the depart¬ and its trade abroad." ment he directs the activities-of a Mr. McCloy said that in order group of petroleum engineers, to conform with South African geologists, .and lending officers, banking regulations, Chase Man¬ who render financial counsel to - . ; 7*7 jtinue the present diyidehd. pf 25 I Mr. John J. Lynch, Vice-Presi¬ and trustee of the. Kings County Trust Company, Brooklyn, elected corporation in South Africa, to be ^ tional named Preliminary to arrangements are future. ' 7 near ft The ■ ■ an as . recommended an y, Cohen Mr. - - •- shares. - tyncn j. 1922 and joined in fc. Y., has been elected Manu¬ The Dime, Savings Bank of Brook¬ lyn^ N. Y., it is announced by George C. Johnson, Chairman of the Board of Trustees of the bank. He will fill the vacancy created by' the recent death of John E. Baxter; *t . ft ft The. First National City Bank of . New York announced Oct. on 20 that it has increased its maximum oft monthly payment business loans, from $25,000 to $50,000. , The bank said it had done this , to more adequately assist small expansion in • changing business economic times. the In past ; 30 years the bank has extended-more than .171,000 monthly payment business loans totaling over $335,7 000,000. - * . ft ft >t George H. Jlurchum, Assistant Controller of the Chase Manhattan Bank, New York, died Oct. 21, at the age of-63. ^Mr. Burchum started his banking of the two Banks in 1929: He was appointed an Assistant Manager in 1951 and an Assistant merger trustee of with career the Seaboard National Bank, New York, in 1915 and served with it Secretary in 1953. '* 7 • At present, Mr. Cohen is as¬ signed to the Bank's 39th Street office. the recommendation the basis of on one and timing of the Irving Trust Company, New York announces the appointment 6i James K. MeKlllop as Assistant Secretary. Mi*. McKillop has been with the company since 1952 and is in the Company Investments Division. ft 9 \ >;,. The First New Haven it is section the nth of in is Haven's West of opened first the of record Dec; 1. its Equitable mergers with the Tru it Company, New ?''77'■" New Union York, and; the Chase National Bank, N. Y., into the Chase Man¬ hattan Bank. ■' ft ft . stock , agent: Trust De¬ partment of The Miners National ■ . ... . - Elyshurg, Pa„ with 1 ' •■ft' ' ft Irving Trust Company, New York, announces, the election of Wilbur G. Malcolm to its Board of Directors. t ... ft » Richmond ft P. ft was common capi- Vice- voluntary liquidation by lution of its a shareholders reso- dated Company, Trenton, N. J, July 18, effective* as of the close announced Oct. 23 by Mrs; of business Oct. 10. Liquidating Mary G. Roebling, President and agent: Mr. Daniel Mowery, care Board Chairman, of the liquidating bank. Absorbed Mr. West's N. Y., died Oct. 22. Mr. Gardner's age was 58. I Mr. Gardner joined the Fifth a. new delations ftiade business. and. In man. Assistant 1934, customer 1943 Cashier he was Pa. f: * ft ijs ft # in capital stock from $200,$300,000 by a stock divi¬ dend; effeCtiye Oct. 14. (Number of shares outstanding — 3,000 Gardner concerned him¬ self with commercial banking. ' # . The Chase ft Manhattan proved and authorized the tion of an to execu¬ Olmsted institution. ; 'Under the terms of the agree4 bank for Office . which ..had : its in Cuyahoga. County... * a Banking office in Johan¬ nesburg, South Africa, according Trust was holders * ft r j; . . . , mon open Executive AStori, the Bank. I the increase in capitalization and issuance of the stock dividend wilt be submitted: to shareholders for approval NoJ vembcr 14. 7.7: ■; 1 Proposals for first Republic Bank in the will be Hie Southwest 4tp. reach 1 the$100,000,OOO-mark - in capital and surplus, and .will rank in eighteenth position in capital and surplus ampng ^banks of . the; Nation. Completion of proposals would bring total capitalization; of the Bank, including.7 contingency reserves, to approximately. $113,* 000,000. ; ; 7 ^.7■ Bank's Board of Directors The on Oct. 27 detailing . - 48 holders of record * jand's oldest bank, has 19 offices. capital; and $34,000,000 surplus, Bank and Trust Company will re¬ ceive one and two-thirds shares for each share of First Bank and Bank, 7 , agreement of merger o| Now York, has made application the appropriate authorities to * " • Company, Mor- ment the shareholders of the First to ' adopted resolutions, proposals for the in¬ crease, and calling a special meet¬ ing/Of the shareholders Novem-| shares, par value $100.) ber 14, for shareholder action on* J * * * the proposals to accomplish, the; v f J. C. O3borne, Vice-President of following: " -7 the Trust Company of Georgia in 1. A $13,000,000 increase in cap¬ Atlanta, Ga„ announced on Oct. 31 ital and surplus ,of the Bankr that the New York Office of the bringing Republic's capital and1 representatives of the Factoring surplus to $100,000,000; 77 Department moved to the Empire 2. Issuance of a stock dividend State Building on Nov. 1. This office was formerly at-15' Broad of 89,428 shares of the Bank's $12; Street, New York, and the Bond par value stock, being 3% of the shares currently "out¬ Department representatives of the 2,980,950 to be distributed to trust Company will continue to use standing, shareholders without cost to them, 000 . Mr. on ■ Chairman, President of common grand opening Oct. 24 and 25. *. J Stockholders of First National £945 Assistant Vice-President. In the two institutions, subject to ap-j Manager of (he new North -Olm^ Bank in Dallas, Tex., will act Dec. 1949, one year after the Fifth proval of the Commissioner of the sted Office is Thomas E„ B'urris, 2 on a proposed $8,900,OOOirtcrease Avenue Bank's merger with the Department of Banking and In-* previously Assistant Manager at ip the bank's capital andT surplus; Bank of New York, he became a surance of the Office, which would-bring the total to State of New Jer¬ the bank's Chester-40th Vice-President. From that time sey and the stockholders of each National ^"City, which is Cleve-. $00,000,000, divided $26,000,000 and ft a modern, the downtown location. and ,7 Harold W. Sterns, will be. in community," is the way President 3. An offering of 85,170 new ristown, N. J., and First Bank anc^ Frapcis H. Beamrqf.The National charge of the office, assisted r by William Savage and Miss Agnes shares of the Bank's stock, with Trust Company,.Madison, N. J., at City Bank of Cfeyeland,- Ohio, pre-emptive rights to the share¬ separate meetings on Oct. 21 ap¬ tlescribed the ^hk^'mew North* Jean Knight. 'A modern The boards of" directors of The Morristown Trust Avenue Bank, New York, in as appointment to the by: The Guarantee Trust and Safe Company of vShamokin, board brings the Deposit number of directors to ^7. President, The Bank of New York, 7.The Garden; National Bank of Garden City, Kan., increased its . tal stock of $45,000, -has gone into West, Jr., Trenton .Trust Gardner, ■ . ft ton Trust i ft capital, and surplus of the Republic Nathuial Bank, Dallas, - YreaS' -to; $100,000,000;«issuance, of 'a ;'3% stocl<7diyidend;t6 shareholders;7a ;6^ % infi creasp iii cash; dividends;^ from Currency, dividend The Mer- of ' Election of James W. ; Kam,, increased its common caoi- - 1 t common cap-' ^ tal stock from $1^200,000 to $1,-; $100,000f has ^gotVc ? 500,000, effective Oct. 16-..(Number into voluntary liquidatidn - by' a of - shares outstanding — 60,000 l esolution of its shareholders dated shares, par value $25;) July-31, effective Oct. 10. < * » " « * ital Liquidating to the Board of Directors of Tren¬ at d Minersville, Pa. With - ,, J chants National Bank of Topeka; »- National: Bank ceremony were his grand¬ Bank of Pottsville, Pa. Absorbed father, Matthew J. Coyle; Joseph by the Miners National Bank of A. Schmitz, Manager of the branch j Pottsville, Pa. ' ■ft ft ft and Joseph H. Allen, Chairman of 7 : vthe Board and, Chigf Executive The First National Bank or ! S: Vi:" h-' , selectman, branch for business. Assisting young Coyle iii ' ' ft Plans for inereasing: 7 Committee, and James W. s stock a the Officer. ,77':..7" ".A Policy; . through cpntemplated^that'the regu-i the; rate; of $1.40 7 per share per year,,, paid quarterly, which' iff' an annual yield of 5.18 % on the sales price: of $27: per-share. : 7; *: Florence, 10% - stx^k from $100,000 to $200,000 by directors rhade. The Have n's b i*a n eh banking system. • Matthew J. Coyle, III, grandson officially ':! a 7' First National Bank in De Kalb. m. increased its common capital announced when the cash offering Haven/ First It is Upon ratification of proposals stock, effective Oct. 14. (Number of shares outstanding — 5,000 by. shareholders, and formal ap¬ proval by the Comptroller of the regarding future dividends will be shares,-par value $50.) National West the * .7 board, of bank's holders Located business • lar dividend Wiirbe eontinued at standing stock, payable Jan. 2 to > Allihglown Branch on OcL in the Ailing town' new 20. price ' * ~ said they expect to declare a $1,3(1 a s^ock dividend, and,-from $200,-. a share dividend on preseiftly out000 to $250,000 by the sale of new Bank, New Haven, Conn., opened its stock diyidend. effect offering will-be set later. Th6 tal. to $l,650y000 through share for new ft ft stock 'is; ap- each four held, after giving to the stock dividend. The ;• . ft new per ^hare annualiy-Ti Natiorial. Bank's capital;7\yas in-# and simultaneous payment by The' Howard Corporation et al, wholly proved by- the shareholders 8hd ;by creased from $1,000,000 to $1,500,State and* Federal supervisory ,000 when a 50% stock dividend owned in trust for the sharehpld4 authorities, the stock dividend will was declared and shareholders re- ers of the Bank, of a $2,000,000 eash be distributed Jan. 2, next, to; eeived six shares for each share dividend, were announced jointly; by Karl Hoblitzelle, shareholders of record.Dec. 1. The held. Another increase in Novem- M an day subscription offering will be made her, 1956,: rgised the bank's- capi- Chairman ofthe Board,. Fred F.: :If facturers Trust Company with the JoMn 53,750* to John D. Heckman,' . began his Banking with the State Bank, New career York, J an ital stock from: New Chairman of the Board... cap4 |;4,900,000; increase'ih share of a record high, Du Vail said'.".; The bank's capital account,, Presi-" ha^ increased more than $1,600,0 )0 dent, said the proposed iqerease or almost 50%, since, the- end ; of will be submitted to shareholders 1950,he stated. 7 ■ * at a special meeting off No^TOnv:.,,:; In June,. 1953, the Merchandise $1:08;to; $1792 Trust Manufacturers of o m p - . of Milton Assistant Vice-Pres-^ York, is an¬ nounced by Horace C. Flanigan, C > . ' '-v7 . 7 amount, $150,000 will be applied Pa., anftounced on Oct. to capital, raisihg it to $1,800,000, 24 a plan to distribute. 26,875 and : $350,000,. will be applied to shares of stock as a ,50% stock surplus which would total $2,700,diyidend and "20,156 V*, shares in a ooo. : ^ ' " " ; 7 - " : s 1 ' subscription offering, to.§tockhold- ; With approximately $400,000 reers. *' 77 maifting in retained^earriing^, the The board of directors-has bank's capital account would total appointment Cohen ident ft % ; ; of Reading, ment, who will be in South Africa the ; * one for ... Pitts- Co;, per share quarterly/on the City Bank and Trust Company; . lantyne, Vice-President in Chase Manhattan's international depart¬ in Trust & the basis of each eight shares bwried; > The proposed capitalization in¬ common stock. 5* ; crease would be the bank's v The dividend: will be made possey± sible through transfer, of $500;,000 enth, since 1950 wheir the capital from retained earnings. Vthis structure totaled $13,00(1,000. ^ cents director- of Mellon Na- ■: handled by Donald L. Bal- be a Bank burgh, Pa.; Manhattan Chase The of South Africa, Ltd. Bank dent ,, Richard Mellon Scaife has been 1 hattan would establish a domestic ft . . the ,, . . f the oil industry. ^nk's . Company stock and share¬ of the Morristown Trust stock' dividend,, iftie ,com4 capital stock of ; National Boulevard Bank-of -Chicago, Hi., - By a increased from- $1,000,000 to $1,500,000, effective Oct. 14, (Num- standing.The will of November * , - monthly cash dividend rato be: increased from $0.15 to share, payable on all outstanding, effective for the month, of December, .1958, and $0.16 j First National directors voted on Oct. 21 to recommend the increase as 14, at $60 per share,, aforesaid rights to expire December 1. Basis for this offering is to be one share for each 35 shares, currently out¬ per stock ajnd cajled the special meeting of payable oh Jan. 2, 1959: This will the shareholders for action on,the increase the dividend rate on an proposal. i annual . by the sale at $27. per share basis. from $1.80 to $192 share. This increase will be of applicable to the new stock to be The increase would be effected per Volume 188 Number 5790 . The Commercial and Financial Chronicle . . (1787) 23 j* • issued. Under the dividend" mittee; new rate; cash dividend payments to shareholders will exceed $6,000,000 annually. Mr. Williams \ March Giving effect to proposals for the increase, $7,110,200 of new capital funds would be 'paid into the Bank. An additional $5,889,800 would be transferred from the; Undivided Profits Account, giv¬ ing a total of $13,000,000 in funds allocated te increased capitaliza¬ of , made tion.^ Issuance Kauai shares new be concerned came 1947 the Branch in of the on to the Island of Mr. per Kauai of 1947 where he Assistant Manager of c a test year., £or the first quarter of the current fisctil period million in the fiscal ending May 31, 1958. Net $13.1 outlet and $25 thousand gross ings share per ings fori fiscal 1958 improve in direct relation the Williams at 90 Gents per share ; to gross. . they do not manufacture pointed Assistant Manager of that department in January of 1957. -.* -?•, that7 H-V w*•?/. salesmen d not are: union. J)1 ■}.'.* 1 J' 'vr.'•'*■ ?' Minas Gerais, Brazil, has ;> more Hawaii, Honolulu, than 280 branches located in every receivables ■ of —/ ' : of 1 a see in risk no the fact that ... v with its funds. to receiv¬ the fsistant Cashieri state of Brazil and appoint¬ them this tremendous purposes—through ^ Qf the bank's Loan Com- Kanlre'' *'• banks ent behind in' payments network a Mr. Williams is important ^American on+' of assured •" ac¬ . by 90 days, 1 unpaid balance must be charged-; off against income and -though the debtor resumes payj paM.-^ Thus * earnings of any 1 lections in Suggestions For Selling are the„ following year Earnings / for the fiscal year ending May 31, 1958, which were "Mutual Fund .Service" The suggestion is also advanced projected; about two months ago which is published by Kalb Voor- that you Lgive out one piece " of his & Co., New York City,- and literature /at the meeting, but; in at about $1.40 per share have de¬ pdited by;Ferd; Nauheim, has ex- your talk, you refer to'another by veloped to be 90 cents per share clue rito " the accounting practice cellent material available in its its title (MSS has a very' excel- above referred to. Earnings of 90 regular issues that can be helpful lent ^folder* available for sub- cents per share on .a stock selling not only- to those concerned pri- scribevs5 with the compelling title around $10 (Over - the - Counter marily with the distribution of <"I Want .MYDQllars Guaranteed") mutual-funds but other types of Using a strong title such as this Market) is a creditable showing under present business conditions, securities as well. This service is and preferring to it at the concluavailable either on a straight fee si on of yoifr* talk you -say, "I'm particularly where new sales units are being added each month which basis or can be secured through sorry I - dbn't have any of the the placement of orders for seen- 'Guaranteed- Dollar' folders >with may eventually, add to earnings i'Y*. and in addition, reserves set rities listed on, the > New York me, tyut if you would like to have Stock Exchange with the member a copy .just give me .your name Upagainst Accounts Receivable Will begin to show up in earnings firm that are the publishers. " ' at the end of the meeting. I'll this fiscal year., C ,• \ A recent issue developed -ideas See that one is' sent to you~ ; v j. T uSpSinpoint is made !?! ^ef-re The that t the demand and that many program chairmen will jump at the chance to obtain services for subjects with talk a such on investing in mutual funds, tax saving ideas, financial planning, etc. Here are some-sugas V gestions from MSS: sure you can you out j "Ask you bulId Improving Telephone Prospecting MSSH the covers certain reaching; and find out time you will have. a subject that how best fit -the If know mutual fund investing couldn't pick a more interesting subject." ' you and all it has to offer you «T4. • ^ . .j . * -* . It is a good idea to limit questions to after your-talk-. If your _ aaidience is allowed to yoii repeatedly, you justice to any subject audience. Explain interrupt cannot or to do to your them to • The the to delivery " point is also stressed that to win new prospects is way avoid any suggestion of outright commercialism. The closer 3*ou stick to the idea that you are there to inform and to educate, the more good-will you will While avoiding commercialism; it is good to include how you worked out some case histories which problem names, about when .persons 1 of course, are added to this list each month at the rate of of 12,000 month. a This valur professionalmen national Silver flatware at a sub¬ stantial discount from store prices 'and on a lO-month installment ' promising. so IBA Group Elects; ST. LOUIS, Mo.—At the annual meeting of the Mississippi Valley Group of the Investment Bankers Association ; $6.25 -■ of America, ■...c ?: be elected ficers in add and warrants 219,433 shares capitalization of will rants add about $365,000 to Kern the company's assets. The brothers, organizers oft the j Breckenridge^ Chairman, ex¬ McCourtney-r Breckenridge & Company, St. Louis, Mo. Clarence SL Blewer, Vice-r Chair Hunter m a n? Blewer, Glynn & Company, St. Lovris, Ma. Breckenridge about common the year: Hunter - of the the fol- we re ' of¬ for ensuing Funds used the lowing common share. per to are into shares Making a total of 813,433 shares outstanding. The exercising of the options and war¬ Louis ■, A r Lanford, Secretary - Treasurer, Hill, Crawford & Lanford, Little Rock, Ark. Mr. '■ * 't. Elvin Breckenridge succeeds K. Popper, I. M. Simon & Co. v busi¬ about '.V* * " Newly elected members of the it is understood, own Committee are Mr. 60% of the company's commoif, Executive assuring aii avid interest by them Popper, John H. Crago, Smith, Moore & Co.; Edward D. Jones, in sound business practices. ness, their desires are Edward D. Jones & . . . satisfied never • Burkham, G. Co.; Elzey G. Walker & Co.; H. Mel F. Cooke, Dean Witter & . an . interest to buy is not too; diffi¬ This, perhaps, explains the high rate of sales to personal Calls cult. and Howard P. Morris, Taussig, Day & Co.; Inc. Mr. Crago Mr. and Jones are The silver i£ especially designed for Atlas and is obtain¬ sistant the best time to reach him the telephone. Here's a sampler . ,, , 4 When the gill a swers, start, identify yourself pleasantly a <H>nfj.dentiy My* name lsJaekson HarttfdJaekson ot the Sd|ndH company Are you Dr. S™'th s secretary? Usually she to will her say, !Yes,' and also narne. wonder if give you Then yoii you continue: T could tell me tine ^est time to telephone Dr. Smith, when he'd have a few minutes to (aik? j have to some discuss ing to tax "savings ware and of a aluminum cook¬ secretaries will react in of three ways. If the doctor is free* she may put you through chandise offered is necessary the ^manufacturers mail the cles 10% direct to response the to as arti¬ customers. this A check with the doctor if he will take the call. once, or see Since 1954, sales have increased from $3.4 million to a volume of „ time, either be- fore or after office hours, when tuaent to the subject you cover in "She may ask for further planation and, if this happens, • ex- ex- the on currently the annual dividend as stock earnings share a well is of secured by this nearly amount and a dividend keep in future increased A tools" for T - for demand men for basement workshop workshops plain the purpose of your request for an appointment as you would to the doctor himself. "The preliminary call to the secretary gives you a natural in¬ troduction for your talk with the savings, or whatever appeal you are using with these prospects." of Twin Club have the City to . . comparison . . . produced some sewing machine in to the held at For the first two months of the current fiscal year beginning June 1st, net after taxes Coleman's iri Highland Park, St. Paul, Nov. 19i Mr. Manske's subject w 11 be in Municipal "Distaff Dollars" ? a "Distaff Dollars" exhibit at the 162nd Convention of the New York City Federation of Women's Clubs, Inc., Friday, Oct. 31, in thef Grand Ballroom Hotel. Focused of on in several Biltmore role contemporary of the women's capitalism, the presentation will highlight tbje actual telephonic administration orders from buy-and-sell security^ the convention floor Mrs. Rose O'Neill, registered representative with the firm. rt by machine tools put into the basement workshop. reserve will be guest meeting of the Investment Women's or, . which be Paul the Harris, Upham & Co., 99 Parle and such Avenue, New York, will feature garage pairs around the house. Is it not possible that the house¬ sewing machine as a "hobby tool" for which she can put it to productive use in the making of her own dresses, her daughter's clothes, and re-. pairing those of her husband and children? and materially less is the St. at • useful articles of furniture, made possible inexpensive re¬ cents Bank speaker "hobby very costly Municipals MINNEAPOLIS, Minn.—Stanley Manske of the First National Trends in the* "Current relationship to Financing." earnings. the City Inv. Women To Hear on great deal has been written about or Twin payments good a wife can regard a ' "Shell suggest a cents being paid mail-order approach seems a reasonable ex¬ pectation, and each item offered, one to 50 ... - ; The dish manufacturer. perhaps three to four a year, could add approximately $2.5 million pertain- in gross business to the company's his personal volume for each item offered. investments.' "Most ing him on . . twice yield of about 5% pays well while waiting for de¬ The company's investment in this velopments. The dividend has project is limited to the cost of only recently been increased from the mailing piece and offering 40 cents a share and it ris my letter no inventory of mer¬ understanding management will manufacturer suggestions I'd with not only about the company but more'particularly for the em¬ ployees' individual future. . basis. pay the doctor is usually available to doctor, something like this: 'I talk. Or she may suggest you call called your office yesterday, Dr. Helped clients to solve their prob- him at home in the evening. In Smith, and your assistant sug¬ Urns. Also, there is nothing offen- either case, you thank her for her gested that I call you before 9:30 slve in giving out literature, pro- help, and make the call at the in the morning.' Then you go right yiding it is educational and per- suggested time, i into your basic approach on tax low-cost People like to buy things a secretary who answers the able only from them.' A similar telephone,'find out from his as-: deal has been * developed with a create. your talk. . 594,000 , have that you will reserve 10 or 15 minutes to questions after your most much needs of the particular group. i: Since on Then choose will at would in. the . be incoming Governors of the In¬ they are . free and willing to talk, pble list offers the company the experienced by Atlas salesmen. opportunity to enter the mail I have visited two. of the Atlas vestment Bankers Association of such as is the case with profesorder business with an initial of¬ Centers and found them to be America,, representing the Missis¬ sionalmSn, doctors, dentists, . chiropractors; veterinarians, and fering of a 48 piece set of Inter¬ very enthusiastic organizations sippi Valley Group. ground in trouble." are four years to • thoroughly and with satisfying completeness. If you * wallowabopt or bog down and your time runs time any ing of the options . . the cover . experience those to participate in the growth of a company in which its past history has shown to -be so evident, and with projected de^ velopments for the next three or version of the bonds and exercis¬ New Business long for Co.; phone call and a possible installment business has devel¬ and particularly if the thing Clark Cox, Harris Trust Sav¬ Public speaking can oped a list of 500,000 people whd purchased can be used to promote ing Bank; Firmin D/ Fusz, Jr., have been good customers and their living enjoyment. Selling ^stlge and sales, jived up' to their contract. New to one who has already evidenced Fusz-Schmelzle & Company, Inc. Bather thap contact^them completethei^ho^s which, is sometimes, absolutely resemted, MSSf sugg^ts:4 feel opportunity assume Some small risk order $6.27 per share and warrants purchase 33,333 shares of com¬ mon at $6.25 per share. The con¬ a V "Limit your talk to one subject, Don't attempt to give a package unless : an interview. fori speakers with a knowledge of investment principles is at an all-time high your" ';i: a cov- erjng .letter and can be followed ■*:-Atlas' and clubs. today be mailed with in Atlas offers excellent in to , can think willing to to , These /, , machines I company's opera¬ tions. In addition, there are op¬ tions outstanding to executive employees for the purchase of 26,100 shares of common at $5.70 i ;. The jjr^denmg - ;through the me- at pansion quent payments catch up. • sewing States. Centers stock . received Better From "MSS" ^^ues prospect groups Sewing - stock one delin¬ as excellent &n In ible rise sharply poor and of United March, 1958, the company sold publicly $1 million of 6%% convertible debentures, convert¬ year might be depressed if col¬ By JOHN BUTTON of . labor market in South America. hients on * a regular basis, the charge-off remains as a liability Until the? total unpaid amount is \Securities Salesman9sWarner Two Good A cautious policy is practiced by the company. If an account falls correspond, tured anywhere in the world in fact, the company has been ables has averaged about 1% over the past 10 years. ;. 'j has computa¬ volume counting is represented the 'Ufiited States—for banking in As- as on volume Atlas is the second largest dis¬ sewing machine manufacturing business. However, Atlas owns all its patented designs, and the sew¬ ing machines could be manufac¬ Company's loss record 6f of own the Hawaii, ' announced ment of David Z. Williams tions.' >. the sewing Conversion share which tributor .. . shares, 1957. this period increrscd Capitalization to 644,768 been used in the above reported . , . and the members > machines are imported ' from Japan, though this has been -•Proposals^also-stipulate a questionable surplus be increased from, .$51,-, Brazil's largest private Bank has i The company is well financed thought with some. 228,600 to $62,133,424, making to¬ established a non-banking serv¬ with bank credit for handling in¬ The quality of workmanship on tal Capital and surplus ice center at 666 Fifth Avenue, stallment purchases and the com¬ Close tolerance machines made by $100,000,New York. Banco da Lavoura de 000. ;•••v.. pany finances about $4 million of Japanese mechanics has brought Bank in in the drop are earnings front 1957 is explained above, by the very conservative accounting practices! / ' 4 tion at this time that Atlas is not involved with union labor . from in 1957. Earn¬ hi It might be well to call atten¬ ... cents to $1.34 seven year earn¬ advanced p€T salesman to a total of $42.5 million of gross business. Net will was bit aiv stock "Would $3?;666;5T6r: Hi*1 period same «- bonds the possible gross in three years with 85 outlets and 20 salesmen sold, together withthe.v returned to the Bank of Hawaii stopk .dividend, would make 3,- Credit Department at Head Office 155,548 shares outstariding,; arid Ih, August of 1958. He was ap¬ the- hew 4 common Lihue July Branches. ' ; ^ I that time. After a short training period at the bank's Head Office; transferred f f ' year, sales rose 19% over the like ployed by the Bank of Hawaii at was i Seattle First National Bank, and was em¬ he > # to. Hawaii in from stock to be amount to % t, Continued from page 2 mostly with small business loans. • of will and " t • equaled 26 V2 doubling included requirements over the H. B. Eatherton Opens : DENVER, Colo. — Herschel Eatherton is conducting a securi¬ ties business from offices in the C. A. Johnson Building. 24 The Commercial and Financial Chronicle (1788) and Utility Securities additional will Public an be available The By OWEN ELY million and San Diego Gas & Electric Company plies Diego Gas & Electric sup¬ electricity and natural gas A local business major eco¬ stability. I960 at zation amount same Expendi¬ 1958. for $29 million and lime ago at about for nomic the Dec. of as Capitali¬ $27 million. 1957, 31, was index reflecting eight 48% debt, • 16% preferred stock population of about 929,000 nomic series advanced to a new and 36% common stock equity in San Diego and environs.. The high of 265 compared with 239 in (with ;four million shares out¬ large and permanent U. S. Naval June, 1957, an increase of nearly standing).: The equity ■: ratio had base is a feature of the area. In¬ 11%. The construction index rose declined from 44% in 1954. to a dustrial plants manufacturing, Grains to 486, a include aviation, electronics, etc. eitrus fruits and are gain of 43% over a year at that time from 70% of contributes about mercial sales and to of elec¬ 4%, rural revenues, industrial 49% and utilities and mu¬ Domestic other in the from The peak kw. the gas revenues. in ; San Diego, like other California utilities, has enjoyed a rapid in¬ lete Station B, 5%. cently. California in the in $1.30 to utilities . $1.51 to declining three 1955-1957 showed an aver¬ age gain of over 10% annually. 485,000 be San now re¬ been have oil, gas Diego's cost of and had latter heat a of ' $50,000,000 over company's from gas billion 14.2 billion in cf ships and Subsequent mergers and expand-j past five yearsj- ing business marked the growth of been spent the firm through the years/ Its for these purposes. The debentures : present structure was formed iri 1942 when the firms of Libaire, ; non-refund¬ are able for five years, but are other¬ wise redeemable at prices ranging from 103%% acquired memberships Exchange. and the New York Stock on pur¬ !. has to Stout Co. & and Eisele & merged. King 7 • ^ the chronological and chemicals. The com¬ pany's Durkee Famous Foods division, accounting for about 46% of sales, is primarily a supplier foods, chemical operations construction titanium dioxide, in the gain in the latter year being rela-i lively small due to warm weather. Gas supply line capacity has in¬ to ,18.9 1953 1957, was credit for interest the months 12 on ended Aug. 31 150 a share com¬ pared with less than 50 a share in the previous period. Early this year the company requested rate increases which it was estimated were required to sonnel. record ©f all per¬ The brochure will be dis¬ tributed within interested firm the clients. and 7 1 to 1 i Stern, Frank, Meyer & Fox To Admit Partner complete line of paints and coatings, about 60% of which are trade, or non-industrial sales. The paint division produces about 42%" of a sales. The chemicals terpene products. /; New York and Pacific Coast Stock Exchanges, oil tall — Stern, & Fox, 325 West Street, members of the Meyer on Nov^ 6 will admit Arthur Morton Hill to partnership, Mr. Hill has been with the firm pigments, and ANGELES, Calif. Frank, Eighth company's include * LOS for years. many ... M. A. Saari & Co. S. A. A. Inv. Formed Opens LOS ANGELES, (Special to The financial Chronicle) A. CalifMathew Saari is engaging in a securities JACKSONVILLE, Fla.—S. A. A. business from offices at 4040 West overall return on rate Investments & Securities Co., Inc. base up to 6.55%. Recently the has been formed with offices in company obtained increases in the Masonic Temple Building to electric, gas and steam rates engage in a securities business. which it is estimated are equiva¬ lent to about 750 a share after Beverly Boulevard, under the firm bring the allowance income let us know your of corporate , & FOUNDED 1865 Co. stock chicago los angeles MEMBERS the of = since • RAILROAD SECURITIES the -. Roderick associated istered . 48 Wall Street, New York 5, N. Y. New York Hanseatic Corporation ' Established 1920 HAnover 2-7900 NY 1-911 away dent of G. with Kellett them office at is as representative 604 G. Fairman, Angeles. was ' Dealers — in a . Distributors Underwriters now reg¬ their Suburban Jr., 120 BROADWAY founder Fairman & and Co. Presi¬ of • NEW YORK • CHICAGO Los Boston Chicago Philadelphia • PHILADELPHIA Cleveland Pittsburgh San Antonio 5, X; Y. Teletype: NY 1-40-1-2 Telephone: WOrlh 4-2300 Direct Private W ires passed Oct. 20 at the age of 67. Mr. Fairman _ Associate Member American Stock Exchange Harry G. Fairman, Jr. Harry Bonds & Stocks Roosevelt & Son founded 1797 BOSTON Teletype: Bonds , Square Building. Telephone: Municipal Continuing the security business of W. H, Newhold's Son & Co.; members of the New York Stock Exchange and other leading exchanges, announce that & current With W; H. Newboid's Son Ardmore BROADWAY, NEW YORK 4, N. Y. Co. Corporate ■; ARDMORE, Pa. PUBLIC UTILITY Co... Mr. 231/2, 1959 industry. MUNICIPAL & selling was in State on anticipated 1959 earnings would approximate 14.7, below the general average for the Stock Exchange , Saari A. previously with Toboco Underwriters & Distributors but / based American Stock Exchange Brokers in & M. was DICK & MERLE-SMITH earnings ratio based oh earnings for Aug. 31 would be over 20, ' INDUSTRIAL increase rate payout is low in relation to pro forma earnings. The present price- Vilas & Hickey Midicest the borhood crease New York Stock Exchange earn¬ in the neigh¬ but more re¬ cently it has advanced to 26^. At the latter price the yield based on the 960 dividend rate is about 3.6%; ^however, .it - would, be logical to expect a dividend in¬ Exchanges Street, New York 5, N. Y. philadelphia Saari state and recent do equity financing about a year from now, on per¬ haps of l-for-10 basis, which would dilute earnings to around $1.80. Since the price of oil is now declining, however, it is pos¬ sible that lower operating costs might make the figure a little higher. Before UMembers T^ew York and cAmerican Stock of name company may Lynch, Manager, Dealer Relations Department. Kidder, Peabody With neighborhood of $2 a share; how¬ ever, it seems probable that the securities... ; ' : ' Through a nation-wide wire system, we provide broad insti¬ tutional and dealer coverage—and cost you less. We provide facilities for skillful handling of large blocks with¬ out disturbing existing street markets. . Federal for taxes. ings of $1.30 a share, pro forma earnings might thus be in the trading requirements ? We make primary markets in an extended list of all types by the the plant electricity. On the other hand, the sales have Problem I 26 for property, facturers Trading 17 Wall chase the abnormally warm weather during the fall and winter months, with resulting adverse affects on gas sales and in a less degree on the sales of lour boston primarily company , V Address: Mr. David D. loans and notes were used . What is • * ings use approximated * repay or purchased energy was 19% higher than in the preceding period in not Glidden principal To further point up the 90th rising fuel costs in the amount. They are redeemable for Anniversary, Eisele & King, Lib¬ so, since they have the sinking fund at par. aire, Stout & Co. has published a no automatic adjustment clauses Glidden, with headquarters in pocket-size booklet giving a cap¬ in rate schedules to protect them. Cleveland, Ohio, produces paints, sule history of the firm and In the 12 months ended Aug. 31, year increased politan San Diego area rose to an all-time high in mid-1958, follow¬ ing nine months of relative eco¬ Why to affected by past year except perhaps for and also perhaps of the Silver Gate The last The Business activity in the metro¬ to you. will use the proceeds traditional dinner held at Whyte's $15,000,000 of outstand¬ Restaurant. ; Eisele & King, Libaire, Stout & ing bank loans, to retire $6,000,000 of serial notes and to reimburse Co. traces its. history back to 1868 its treasury funds by about $9,- when Adolphe Libaire and H. B. 000,000. Proceeds from the bank Stout founded separate partner-, - first unit at Encina. rate years ful Highlight of the annual-meeting underwriting group headed of the partners, executives and Co., Inc. offered for registered representatives of public sale yesterday (Oct. 29) Eisele & .King, Libaire, Stout & a new issue of $30,000,000 Glidden Co., Oct. 23, was the marking of Co., 4%% sinking fund deben¬ the firm's 90th Anniversary as a tures, due Nov. 1, 1983 at 99% Wall Street brokerage firm. The and accrued interest, to yield Occasion was celebrated, following about 4.82% to maturity. / ' the business meeting,- during the; by Blyth & advancing equipment. In the following; recovering but Glidden Debentures f 1: An of 12,364 BTU per kwh compared with 10,145 for the reduce Section. especially in recent years. In 1946 were only $18 million; currently they exceed $57 million. sales shaving, : t ($15,669,000 as compared with of bulk materials to the food, $13,207,000), while- revenues baking and confectionery indus¬ gained only 9%. tries. Another contributing factor in Glidden's paint division; manu¬ the recent decline in share earn¬ to revenues Kilowatt hour load was The company should peak in kwh sales and revenues, crease 1957 84 cents only to drop back to $1.06 1954; J 956 able to eliminate use of the obso¬ nicipalities year - year, companies. other available and commercial sales provide most of 1946 to sharply to $1.52 in the following, & Gas an 1948, then advancing to. $1.19 1950, but declining to $1.13 in in in addition to which 80,000 kw is the remainder. tial sales contribute 42% trical com¬ and natural gas " Residen¬ revenues most of Diego 92 cents in from Electric has quite adequate generating capac¬ ity. In August this year a 106,000 kw unit went into operation, rais¬ ing total capacity to 662,000 kw, San earnings have shown irregular postwar trend, declining principal farm products, some of turing companies forecast a grad¬ the land using electric irrigation ual improvement in the level of pumps. The area is known as the industrial employment during the "poinsettia capital of the world,'; third and fourth quarters of this and avocados are also grown ex¬ year. (This data was compiled by the Union-Tribune Publishing Co.) tensively. Electricity Share . Reports ago. aircraft firms and other manufac¬ the Thursday, October 30, 1958 . Eisele-King Firm's 90th Anniversary Biyth Group Offers gas 1958. 1959 were forecast some tures for San of expended about construction in for about estimated is supply in company $25 1957 sales than faster much creased . . • to: Houston Portland, Me. St. Louis SAN FRANCISCO ■ Los Angeles Providence San Francisco - ■ : Volume Number 188 5790 . The Commercial and Financial Chronicle . . (1789) Advisory Committee Mary RoebKng, Gov. the Of American Exch. President Bank Mary G. Roebling internationally known fig¬ ure in banking, industrial, cultural and welfare fields, hailed was as "the first lady McCormick,-; In k o c an E need Xr ; ;■ the you hey; to vide a signal of member additional per share. sale of be used to pro¬ electric facilities and for other corporate The company pany./- from the these shares will woman a proceeds estimates that of its 1958-59 construction program will your Roebling has Mary firsts to G. , communi¬ is v/pens Y.—Nick N. conducting a securities rT « rities business :frpm,offices at. 211 ^ . East •Second Streef Under the firhx name of Lawrence A? Spilman & ANGELES, LOS Calif.—Glore, Co.;:; ' ;• f..... Evans & Co. has been formed with offices at 11168 Santa Monica Form Statewide Sees. v Boulevard to engage in a securi¬ ties business. Officers are Ben- ; would governors 480 Form Glore, Evans & Co. ; purposes. . ;C pious approval. Mrs. •'« her Net indi¬ approximate $153,000,000, of which approximately $75,000,000 will be cate that there is freedom of expended in 1958. .; :i , , , thought among you in the matter : .Florida Power & Light Co. is of women in business. This is as now engaged. only in the electric it should be." C'-V utility business and is not in di¬ unaftiir: vboari ^'v many on me a The selection of become board mar-;: rnoriyi gov e governorship the in oiiKas ™ ties, including Miami, Fort Lau¬ derdale, Coral Gables, West Palm Beach, Miami "Beach, Hialeah, Hollywood and Daytona Beach. In L. A. Spilman Forms Firm August, 1958 the company sold all of its gas properties to The Hous¬ OTTUMWA, Iowa — Lawrence? ton Corp.,. a non-affiliated comr A. Spilman Is engaging in a secu¬ stock of Florida Power & common Light Co. at $78.50 Sfikas service A busines from offices at 130 South: Clinton Avenue. underwriting group headed by Merrill Lynch, Pierce Fenner & Smith and Kidder, Peabody & Co. yesterday (Oct. 29) offered 300,000 shares of no par value ca¬ A ROCHESTER, electric An ' have conferred honor. ket's board-ef ;: wHh' that in serve rect competition with any pri¬ vately or publicly owned utility company. The company supplies Light Common Stock Offered . appointment: to Florida Power & Mrs. Roebling stated: "Gentlemen change Presi4 ? dent, who an- ^ no u to accepting " 5 t ever pacity.-' T.I A meric Women in on Shears* 'also widely philanthropic work on behalf of religious and chari¬ table institutions. Appointed to the Advisory Committee to the State Treasurer of New Jersey by both Democratic and Republi¬ can governors, she is the only woman of finance"by Edward Services. known for her 25 jamin Fv Evans, Jr.r President; Clayton H.; Read, Vice-President and William R. . BOGOTA, N; J.—Frederick R.. Hill and K. M; Hill have formdd! Statewide Securities Corporations Glore, Secretary- with offices at 64 West Main St., "V.''rV V to engage in a securities business. Treasurer. Roebling: , credit, but this marks the first time in history that a woman has reached this financial pinnacle. Never in the history of markets, has a woman placed on the top policy¬ making board of a national stock before, securities been exchange. At • fore :.. induction an Works be¬ ceremony exchange governors and the financial ... : ) Here Mr. McCormick stated: "I am delighted that the governors have unanimously sup¬ ported my nomination of Mrs. Roebling. Stating it simply, we have selected Mrs. Roebling for press, main two her of reasons; first because executive and stature ability in the business field and secondly because she is a woman. We welcome this opportunity to give recognition proper vital that role share- women playing in our econ¬ are owners Jlstv h.rf.. the to ■ V'. omy. "The American woman is today major influence in the a securi¬ ties market and constitutes jority a ma¬ the shareowning stockholders out¬ sex until 1952, but and probably more, One of the most important and for good telephone basic reasons among Male public. The research. is service . / ) many ranked the fair 52%, today of our a shareholders nation's Mrs. Roebling will women. in speed, clarity, dis¬ are be in unique position to bring a femi¬ and point of view nine influence to advances proceedings." : : Mrs. Roebling has been chosen to represent the American public and convenience would not tance have been possible without it. our the exchange board of gover¬ pn in this capacity she will join Dean George Rowland Col¬ nors, and lins the of York New University Graduate School of Business and They would not have been possi¬ ble either, in the same degree economically, without research Bell one organization such or as : central the as Telephone Laboratories. Mr. William Zeckendorf of Webb 6 Knapp, Inc., also public gov¬ This is the research division of the These governors are relied ernors. heavily to bring public re¬ action and thought to board plan¬ ning and discussion. Mrs. Roe¬ upon bling will be part of the active and voting 32 member board an Bell System. It has the grown as needs of the nation have grown. and Hawaii tists and engineers and goes exploring and developing in ' Mr. be either associate members regular member firms, and the three public gov¬ partners or in directions. many covers many Roebling is the first and only woman in America to head a major banking institution. She is the widow of the late Sigfried But it is aimed primarily at the betterment of munications services and the Grandson of Washing¬ Roebling, builder of the Brooklyn Bridge and other struc¬ of ways to at the tures, and assumed her late hus¬ band's finding lowest cost to the customer. just recently, but long the Bell ness and national need for basic N. J., in 1936. She became Presi¬ dent of the bank in 1937 and is siderable part man. both President and Chair¬ Trenton Trust resources ex¬ gram In addition to directorates trusteeships in nearly a score of corporate, educational and cul¬ tural institutions, she is the first and only woman trustee of the United States Council, of the National Defense Transportation Association; and is a member emeritus of the Defense across town. you to the new underseas telephone Great Britain Developed by Bell Telephone Laboratories Made to entirely new precision limits by Western Electric. con¬ pro¬ to this field. An the new real the of understand¬ ing of nature—the probing into the brought substantial BELL electronic boom and helped to create business and jobs in many industries. More than 50,000,000 transistors will be made this year. breakthroughs in science come These little only at rare in tenuis. amazing amplifiers, though larger than electric They knowledge— our was an The research and new unknown"—lias outstanding example factors in has invention of the Transistor, one sides! The "search for beyond their particular ap¬ signals can do tube a pea, can up to 100,000 times. many can amplify of the things do—and more They have opened the a be¬ way to products and improved others. There is no doubt that the Tran¬ sistor has been one of the leading skills of the Bell at the service TELEPHONE manufacturing System, already ganized and at hand, are or¬ placed fully of the U. S. Govern¬ ment whenever we arc called upon for we are spe¬ projects for which cially qualified. Among many signments ; present defense as¬ is the development of guidance systems for intercontinen¬ tal missiles. Interna¬ tional Chamber of Commerce; the first and only woman Vice-Presi¬ dent call plication to communications. vacuum the effort to increase or a of its laboratories panded from $17 million to over $90 million during her tenure. as you of research. ago System recognized the busi¬ research and it has devoted now Director as clearly com¬ provide this better service of the Trenton Trust Company, Trenton, post benefits tli at Not Roebling, ton of the repeater units in one fields ernors. Mrs. This is The work of its hundreds of scien¬ McCormick, 15 regular members of the exchange, 12 non-regular members, who may as after many years which consists of James R. Dyer, Chairman, RELAYS VOICES UNDER THE SEAS. telephone cables. These voice boosters make it possible for SYSTEM > 20 The Commercial and Financial Chronicle (1790) Continued from first page xmcf vast Yet such matters requisite for the task—to have the: temerity '"readily understood br appreciated people with the real facts. We heed ^statesmen, ■ by the public. '' It is-also.usefuI m politicians, in sufficient numbers to begin the-xtrettifcn.-v? the. case of smaller;issues where: not dous task of settine us hack on one intelI, iti.at W ..ho.ri getting us back oh our intellectual ifeet about, economics and economic exemption of outlays. It was of the national debt follows the pattern was less two billion in 1.914. World War I drastically, but by 1929 conservative ad¬ figure to nearly 260 billion. Today it is higher than that, not lower, by some 17 billion and doubtless will be appreciably higher still by the end of the current fiscal year. Of course, the country has been getting bigger through these years, but population growth has failed by a wide margin to keep pace with these out¬ lays of the national government—or with the indebted¬ the of the nation, which incidentally is much greater than figures ordinarily quoted would indicate. that these we as is to answer so our our affairs current it. It is not state saving? To ask the question only the Federal Government, but and local governments, many types of business and Very nearly all individuals that have taken this road to more and ever more two. So far indebtedness in the past decade or the Federal Government is concerned, let it be noted that the commercial banks of the country in . as 1914 held only some $818 million of United States Govern¬ ment obligations while other assets, chiefly loans, came to about $16 billion. Even in 1929 when the national debt -had grown to nearly $17 billion less than five billion was held by the commercial far from tmanagqg. j v banking system which had not " 50 billion in total earning assets. The New Deal c to get more than $15 billion in government se- curitiei^nto the commercial banks by 1939 despite the fact that total assets declined about 10 billion during the dec¬ ade. Of course, enormous increases in government hold- tings occurred during the war, and while some progress has been made in getting the debt into other hands, nearly $65 billion of it still remained with the commercial banks ' which? rf"#1- is r> ww rt . J »-* compelled to /s : the - undertaken ing * >v these by assist We methods. other issuers in placing their debt securities privately and we participate in the underwriting of publicly offered industrial the all of negotiated ; issues {primarily companies) which material of are managed by ourselves, as well as those managed by others, volves the services of counsel for Call , Protection and -V Bond on Debenture Issues issuer, counsel for the' purchasers, accountants, etc., and, in A fairly recent;.development in many cases, investment bankers.' the field of corporate finance has A public offering may -require a ?been the desire on the'part of somewhat longer time .schedule Certain institutional investors for than a private sale although' this t some sort of call protection on the „ : ^ J. J _ J. ji . * - : the of less involved. are necessary documents. This in- been made and that such transac- violation ' thatt facts; to solicit interest of prospective buyers; and to draft the might not,, decide subseT quently that a publie.offering had thus effort and •• presentation courts tion contention analysis of this argument in-, can be over-stressed- In most private, as in public offerings, it is necessary to prepare-a ^ wonder:) if •: The dicates it tutions buy a nonregistered issue, 1% as has happened on occasion, one ■ ;V; may create no* misconcep¬ tions, I might point out that our firm, while pre-eminent in the field of bidding competitively for public- utility and railroad debt securities, is also active in finance An only one or relatively few ^purchasers, when more than. 50-instie% established 6t In order that my previous com¬ paralleled rather than are (3) time answers is not always the casb.v"It would " bond and debenture issues. This that most well managed tor- stems from- the experience of are in a-position- to?aiw many institutions which had pur-i saw onintended,that the. financing ticipate their financial peeds well- chased, certain bond issues at atundertaken pursuant to this sec- enough in advance to allow time tractive terms when interest rates tinn nf thp Act wnnM t/rn«f ^ tion of the Ant would grovtf to its for the registration process. ~were high in: mid-1953 only to present proportions. According to (4) The facility in '.effecting have the bonds taken away from was a Securities Act. doubtful that Furthermore, it is the Congress fore- figures prepared by the Securities and Exchange Commission ing the 24 through - 1957, proceeds of cover¬ period year the 1934 annual public gross offerings*-- of seem porations changes, such as indenture .pro- them through " refunding opera-' YW -apse**; ■ tions during the following year White customarily machinery is ' wtien money rates eased, provided for effecting changes in- • licly held it simpler to contact billion and than during the period same Private Placements have averaged about $1.8 billion. For*the year 1957 the figures were $6.1- billion and $3.8 billion, respectively. Private Placement Arguments Let us examine of .some principal considerations or argu¬ ments which may have'influenced: the decision of some managements to sell their securities placement. \ (1) There may officers be by private Securities an directors to Act. These liabilities could arise from an untrue statement state a or failure to material fact in the regis¬ tration statement. While any tend¬ ency to avoid personal liability is readily understandable, the whole¬ some effect the of disclosure re¬ quirements of the Securities Act is widely recognized. This is partic¬ ularly true in the case of those companies vested with a public interest through wide ownership of stock or by virtue of the nature of their businesses.. (2) due The avoidance of .. . expense ithis advantage, if quickly if even a slightly better price can be ob¬ tained through public offering. As matter cases of fact, in connection with private placements there are often incurred many items of ex¬ pense such as printing of con¬ tracts, indentures and other docu¬ ments which are,, the would be involved in fering. Thus, in ^ "V.- . which are "other tend to .jnake'this corporate managements, a fact, same as public of¬ many ex- made . . . are bargainers . of kets for access their depriving a securities^ an For this market for its open • not The -- at se¬ method locked issue is not an : up at savings due to changes in terest have rates. saved reacquiring open C. issuer Donds in ;c; * \; their market. The ^ runs being burdened with denture A in¬ Some" corporations of dollars in millions provisions. * - of in¬ ^ - single purchaser or small group of purchasers is "in a strong position to dictate the provisions of a privately placed issue. Their or Securities Commission Power Not -infrequently - some or not and Commission we are asked potential issuers whether we recommend would the such restrictive call, features.- While obviously an incorporation issue which of non-callable is non-refundable for or is period a easier to sell under certain market conditions, the, risk onerous - the it and The Federal by few buyers there should be opportunities for the 'isuer to buv a vears eta have cau protection features in lheir recent debt issues, sinking fund or other-purposes savings. If at. least substantial part of 10 run have pursued the policy of not authorizing debt issues of com¬ panies subject-to their respective jurisdictions if such provisions are proposed. However, some utility companies not subject to the jurisdiction of these agencies forfeits the possibil¬ ity of later acquiring its securities lor like pnd,T Exchange thing, the issuer using one few-cases, longer. fafn quarters. Some managements rr-, .w- a Understandably there Lave been objections to this practice in cer-* B. The private placement -de¬ prives the issuer of certain bene¬ curities. borrowed in question. Such call protec- even them v monies with that-that represented by the period of at least five years and; in broader-mar¬ to is tion features generally extend for se- ^9 take advantage of the Jact that are. f.u{: lower interest cost to the is- a sue usually experienced who are anxious to issuers it ik price which it received for the is- — .. they can for them respective institutions. Quite naturally, many of them .Will seek fits of non-callable iiuzi-cctiJictijie non-refundable, it cannot be redeemed at 8uer make the best trades selves specific periods. If made Jiiaoe _ th|Sie]iirc: # the is is ... ' ^de<?uacy ! '£Pric:e,.*ff~ celvec! by the issuer is frequently 0t'rp'j1.10,[' The buyers of j, issue 'sisutJ "an «ri a<Jvancgddn*fa^<riyte^"6'^i^^"^^iaW theie pos during that per od. placements financing method less attractive to , i order the JnaUing Sone of the. now debt refundable for back its bonds in the opeivmarket any, can evaporate a i be vate with to registration. In most may • of issues either non-callable or non- Opposing Arguments cunties desire by and few-holders ** l demands there r* •v unregistered -yZ- a the .obviously is a many. factors the issues to meet :institutions) developed the practice Accordingly,' in the indenture provisions pf,.pub- corporate bonds, notes and deben¬ tures have; averaged about $2*4 avoid possible liabilities under the managed increases in the national debt could enormous be absorbed from individuals adjudication issuer's Saving Far Outstripped Now, have penses avoided. . ministrations had got it down to less than 17 billion. Then came the New Deal which ran it up to more than 45 bil¬ lion. World War II lifted the ness is registration satisfactorily fob? alF cases the problem of what.constitutes a private placement,,as opposed to a public offering. While the majority of nonregistered issues have to less than managements their securities. y Financing Piocednres from not nal course caused it to rise \ transactions.'by an isinvolving, any public.oflenng. To my knowledge there has never been a regulation or fi- spending less than three and a half billion a year. By the time a second world war descended upon us, these outlays had risen to more than eight and three-quarter billion. Outlays rose to some 98 and a half billipn during World War II, and it seemed to the ordinary man that one of the most urgent postwar tasks was to get these expenditures down again somewhere within reason. Yet in the fiscal year 1958 they amounted to nearly 72 billion—«13 years after the end of hostilities — and are moving up again all too rapidly. The the enterprises who have "the latitude of choice, should consider care¬ ; fully all aspects of. the problem before" deciding between public offering and private placement of granted to suer bitter and destructive world war, our Fed¬ a eral Government Hoover; ;*r:~ ments Bond three-quarters of a billion dollars—as hard as the fact is to believe or comprehend in this day and time. Even a decade after from page" 6i;; i, policy. Current Bond Market Trends and could still join a union or refuse to do so, and and there would his decision interfere with his came the irh-: I do not wish to convey pression of arguing against the practice of private placement hi its entirety. .Oh the contrary, I to face the Continued > , company's . . what we see with what existed before this coun¬ try went half-socialist—the decades when it was carving out for itself a place in the world which is still the envy of peoples almost everywhere else on the globe. tide of collectivism in a as it were, by the fallacies of the New^Dehl that apparently does .not. see for itself the horrible dahger. "ff manylnstJnwsv It is of particu-i that lurks in conditions of this sort. So long as -the public lar" value in helping to" develop remains in this condition, few politicians are likelvr—-even':? new ventures and in siipplyifig the if they had the independence of mind and the lnsi^htdnto SKi Franklin Roosevelt. We need rather to look about us and Total Federal expenditures in 1914 an hamper can operattdns. it compare Europe and elsewhere, but a man only here ability to obtain work. The great rank and file were not obliged to pay through the nose for the exactions of labor monopolies in giant industries. A man with energy, ambition and requisite shrewdness could amass a fortune roughly pro¬ portionate to his economic contribution to the country. Such geniuses were not obliged to work most of their time for Uncle Sam and possibly also for the state in which he lived/ Relatively speaking businessmen conducted their affairs as their own judgments directed. The economic consequences of changes that have now taken place in these areas are almost beyond estimate. , w visions. during the entire campaign that is now end, do we find any frank recognition of this washed," plainly campaigners are doing so or have any inten¬ tion of doing so. The real issues are not to be found by comparing the Administrations of Mr. Truman and Mr. Eisenhower, or even the current regime with those of / Thursday, October 30, 1958 thv^yc0Sebredralrable where coming to of the In 1914, the year in which World War I broke upon the world, we were a free people—really free in the sense in which Adam Smith and his political contemporaries used the term. Some concessions had been made to the rising 0f now state of affairs? Of course, we can find it practically nowhere. And that is not all. The public has been so "brain- It would be well if the voter would take the time now review the facts for himself—since amnnnt amount and full situations. Voters Beware! to . And, of course, money, supply natural tendency is to impose stands at upward of $232 bilto Secure measure of New Deal doghia and .ar-; their institutions' investment. In naivete. to find soundness''iliv these some cases these restrictive pro¬ has grown apace, lion. It requires a inspired with true Americanism appealing to the voters this autumn, the outlook would be less disheartening! none . at the middle of this year. - [As We See It and then . we do not think it is sound business judgment for managements to relinquish control over their debt unless solutely- necessary prefer to see to it do some is ab¬ so. We of sort "sweetening" of call prices for period such as five years a as com- Volume pensatioiv to ~ . - the investor (1791) should^ Continued from page 6 course in "current affairs" ganizations with which ..I-,am political science should be a officially connected, the National required subject for all students Municipal League, the Institute of or iBteryal.-rWei tbhik that •„ >. inanage^ ..;,j should- ^iyfr : eonsideratiom-K this - in preferehcetobemg^ . v preyentedfrom retiring their debT^^i^^ instead of to ^ " ihat there r, certaitv are ,instances, A^eii it is necessary to. accede to; tbe;;wishes of ; the >buy- . , _ . . .. course as today. it ; jl have had some ; hesitancy ih Voicing these; views as I make no ^ ^ „. selected a is in many cases . -1? at^hy^tinier; However; it ipust-'JJ " claim to special knowledge in this no desire to- be field and I have .. tke ,s&le of ,general obligations, price spiral and its serious threat critical of the teaching profession, sometimes erroneously entitled to; the: public interest? for which I have a profound re-' uReyenue'; issues, is impressive; :1 (3) Tlie seductive claims' made spect and admiration. Jt.has J^ears, Roebuck & Co.; Debentures, ^0 1954 the total was over $3.2 :. by the: advocates of more money seemed to me not inappropriate, it was obvious to the Managers* of billion arid in 4957 over $2; billion • ^aiidCheap credit mislead many however,, to give some direct at¬ whichsOiir, firni was one; of the;, or 46%and 29%, respectively,.pi* well Pieaning adult people. Is the tention to our school and educa¬ underwriting syndicate that a. so-, oil tax iexqmpt financing during riskkiherent in this concept es- tional objectives in view of the called,.non-refunding feature was the,/ yearsin question. s pecially in boom times, under- fact that they represent such an important. This was because the :prii«n*» fnr c^hAni stood -by our on-coming genera- important part of our state and yery unusualmagnitude of the imnrnvpLnU tiOn so that sound positions and local government expenditures. If For: instance, in the (he recent ; issue of ..$350 ers. : , of case millio^ , „ issue required. the; enlisting of in- ; ; leadership * Public Administration,.;, and Citizens Budget the Commission of New York City. Iri addition, there is a world of information that can; be made available in the field of economics concerning the faets of inflation and the factors that en¬ courage or retard its While honest opinions on how progress. vary can best to deal with mone¬ tary, pricing, labor, and related problems, an informed approach by this important group, of our citizenship is an objective that Should have generous endorse¬ ment. ' ', 'V ; Some be expected in the it turns put that I have been able " contend that .these to make a constructive suggestion thev part of as many. questions get into the lent ^are realm of politics and therefore 'siubtected to r" " * or two, I shall be sincerely grati¬ as . W Many people, ar* not really public institutions should not at¬ V' ' ■. ^' uyally, the higher interest rates so f>' "-^^V^ concerned about the danger of In- fied. inthe mpre the investing institutions - Stbupsy they piust decide_on PVh- fiation^ Thev hnvp little nnrlprmore the Conclusion tempt • to take sides#If the sub-* institutions h, Hation." They have little underwiH want call I will admit that I have no di¬ jects under discussion are dealt Prote^pnstanding of the fact that creeping with on a factual basis afid deci¬ conversely, when and if interest an inf)ation could eventually develop rect knowledge of the specific sions are reached on the merits of fate? Into a" gallop or that repeated conditions applying in North and the facts at this, subject will wane. hand, political con¬ Df siow inflation over a South Carolina educational insti¬ J -*■ » * weuar^ ana stability, out on me , <joses national economy as well, u • vi mvw limauun over a period of yearsr will result in a tutions. As I have thought about siderations should not mflu^iee "When to Borrow the judgments made; The indiyjet* : °f:^the. most persuasive substantial cut* in. the value of this matter, however, it has oc¬ In discussing their, financing pressure groups is the school or thbir savings and insurance. Are curred to me that high schools uals concerned will soon enough plans, we aresometimes, asked by educational, advocates. They rep- many of our young people secur- and universities in this area could: have to take positions oi» public company managements if ,they resent acause that is essential ing the type ox education that de- secure from both the Local Gov¬ questions and deal individually would,, be welt;advised to. take. and one in which all good citizens velops: their. ability* to j M Commission and the with political Opinions. think ernment advahtaige: "of; the then current have a k?en interest. Their cause clearly fori themselves on pressing North Carolina Municipal Council Whether there is general agree¬ ment with the suggestions & hafe ih^et';^ their^ financing is uhte^dabfy well su^ distin- a great deal of useful information urntir sopie ^listcht date, , such as, On owasipns. these groups develop guished Jrom book, traditional or which might be used advanta-> made is not important. I do hope six, months br^niore, when funds a fervor which is impressiveand memorized that they may stimulate thinking knowledge? " geously in civie or political science are actuairy,yeguired, It has beenfrequently, their efforts are effec- 7. >. ^ •. ' • ,; courses. Such information would on this subj ect and be productive j - ^ t As 011 local our , . , , of units . govern... , can future? possible Nat-' »«nt ^ ^ccteA 1^"™ tlrae fSSregaW mayteve ^^;their cpncern^ith^^l^^^ may economic p^"ns' important Po^'^al buyers , . , . T ' ,,s 27 basic merits; - i , The Commercial and Financial Chronicle ... the bonds be reiunded . •- Number 5790 188 • * - * ... ■, . tfe - y... „ • . bur Major Importance of Education have the advantage of presenting ; ^ In Nation specific problems of an operating ftjMr Individual bases or ■ :demap<Js / yAs bbnkbhs! ;a nd then dealing in and fiscal nature and- the solu¬ sometimes! live. observation; that xvheri cpmpatiy borrows too far -in;; advance It''finds it could .have a Annce 1"t Vio+f/i.iv ' 'lirhatnii hi/ Because it is such- a good does ;riot mean, however, cause shnil 1/1 * rfihrl' - sVihtpni hn ,inft'refiil fri < JL-u7 - of good. With Lester, Ryons —; tions that could be have used been in found;j It promoting a interest in the processes of state and local government on broader (Special to Tjik Financial Cmronjcle> ; LOS ANGELES, Calif. —Fred¬ erick M. Swenson has become as¬ sociated with Lester, Ryons & Co., the part of our high school and vy*vi vuwiviiyu yi jjuatpvucvi : 7T« .Tv T\"-<'■ 7-X:j!'vo. n.uiuf icciii ciwivus, we nave 623 South Hope Street, members financihg plans by resorting to sUriugT ^ts .mfectivenessv ; ehly i-easbh te be proud of the eduea- college graduates, who are just of the New York and Pacific Coast temporary borrowings only tor in terms of physical plarit,. but fional facilities that are provided reaching voting age. Stock Exchanges. find that the ultimate financing m substantive content as well. by the various state and local There are many other organiza¬ costs are greater than the terms, i?. governments and the generous tions throughout the country that which they, could have, Samuel Franklin Adds pbtaihed.prftrrams ^ . ^mpnpey, in which the public has would be prepared to give similar hi; ttie^--first instance. Tn general; : responded to this need. As indi- assistance; I am thinking of The (Special to The Financial. Chronicle) it is our advice tb managernehts. Let me_cite a particular area cated above, it represents the Municipal Finance Officers Asso¬ LOS ANGELES) Calif.—Herman to borrow when and as money is which* holds, a special significance, largest cause for public expendiciation of the United States and J. Houle, Jr. has become' con¬ peeded and to pay the rate which The major fiscal problem on ha- tare. Canada, The "American Municipal nected with Samuel B. Franklin the bond market is, JioM scei^ today is the creeping indicates : A./Freeman, Vice-Presi- Association, The Government Af¬ & Company, *215 West Seventh proper at the time of borrdwingV'^Shermrni ^ent hf 'thb;Institute for Social fairs* Foundation, and three or- Street, \ • - T , , - , „ . ^-JToil^v-TruS4o^ , LOS ors ANGELES Calif -Trust- Corporation has been formed With offiees at 540()< Wilshire Bou- levard to business: ;. nisonr engage Gfficers chairman in arc a Associa- : - Or¬ alniosl'45 • educating the younger generation securities on Derinv^rien- of Sciesnce^ Re^arcH/Iias stated \ lhat million pertion, in a recent .speech raised sons» phe-fourth of the Nation, the issue of what kind of a job ^"rol ecl 111 educatlonal instlour .sehoolsj are doingtodayiiriutions-^^.^ . f";:; the Ambnean"-Bankers the' boart;' Manuel J. Felix, Presidenti Jack . thrs and ,, related economic <J^s«®ns' .s». t|'«t they m».v vol.. W.sely and .ntell,gently on -t- Swdenis aie 1958 REVISED EDITION "^out of five ofstate our enioiiect in OVER-THE-COUNTER c°ntro®f-HwoV emneJ^u^ two S onll Common Stocks education; employees of On Which Smithy Barney Adds dents major in [economics or that in^nat^naL defense^ seiv^ce anc^ CONSECUTIVE CASH DIVIDENDS ; ■ Joseph.u pivlsj Jii; Wllliani: D; Knauss,. and Wiliam E. Rex have culations become associated*-with smith; Barney & Co. as registered repre-. are ^ntat^esto.the52aFlfth Avenue/ • hrfr larger economic on ^ve?thlless - significance questions, students. At this age our yobth are approaching" maturity and they should be Frank.L. Walker. Adds (Special to The Financial Chronicle) MARIETTA, Ohio - Harold Miller and James B. MunneU associated now with 'ot for .al™^V ha,f state and local Public payrolls. • *; that the proportion of young school which should bS understood by at ? „ the least New- \ork City, offiee. S simple and fundamental some high Si qX?^-"'it ^ ^nd of: Den6itureS local government are education -60 Dr. Adams, he-states: "A strong is today essential to our economy With Bache & Co* national welfare If our strengtn weie to be sapped either to be eitner (Special totee Financial Chronicle) BEVERLY HILLS. Calif.—Stuart J. Malone has become affiliated with Bache & Co., 445 North of pression, the safety of 1 to 199 aJ?"f 200 up_— Tne questions . economic Si-mld strength wlre • - ^ • ^ I have cited flaY? J"® are ' ® suggest that a more constructive approach in the educational procesa may ihpennit*rt emphasis in certain the United wixi1 States and the .entire free world ^ vipw analyze^ trv aiding and be -'sayssBsr.s.fa (SBccwto.TKPm^cui.CK.oNKx.) thought-provoking HILLS, Calif.—Arn- old B. London has ioined the ctaff of Toboco & Co Inc 9235 • Wil- ■^ , , slIPP f fiulstions: given in * - - f improve (Special to the Financial Chronicle) LOS C. has-< become First California '< connected Company; Incorporated, 647 .South ^Spring Street, He-was formerly with Hill; Richards & Co. economic (2) Today . ANGELES,. Calif.Bruce Dunn with the are imbedded ; which times push and in ptices orevent our up «s many .teachers or inany Mhools hbWever, as to whether or not in some of our by the administrative of- ^follow-up" biases and procedures to give assurance economy of satisfying average results. It in good may be that something like the nrices • from , cance signifi- of this trend of the wage- 100 Or more, your firm's printed on the front cover with the words Of" name • Will be "Compliments above it without further charge. Chronicle 25 Park Place, New York 7, N. Y. Please enter our order for booklets of "The Over-the- Counter Market—Where All Securities Can Be Most of Them Are" and Traded and accompanying dividend tables. Firm Name Address — "Case Problem" method- of teach— "v,;.ing, which has proved so effective f readjusting downward. Do a(; tbe Harvard Business School, studeptsLjmderstarid the of Wm. B. Dana Co., Publishers ficers regarding teaching methods inflationary orders Commercial & Financial literacy of , schools the American people? p' ci ralifnFnia virsi v^anrornia uuiiis Jeg® leveJ1' that Wl1.1 effectively On the abilitv ghire'.Boifclevani*-"He;'wasvform6Hy-^i?52^^5 ''5j^-'"^?ff!,^f£S^fe*-t:h^a».iis'^adequate' insistence and With H. CarroU & Co * . 29 cents each .-#.*15 eents each- formulating erlearnine fn meeting question is raised, stud^nte A the ?ad.m these desirable obstuaenis learning ine jectives. The ^acis today at the high — teaching areas =s,w.Kr:w:s=rs. BEVERLY BOOKLET COST OF THESE BOOKLETS weMare, health and ^K PACE ex- high- hospitals, in that order. Education w Frank Mimtk. 5 to 174 Years aw,™. Laiif«me W, are Walker; & Co., Peoples Bank Bldg; ; Have Been Paid From need to be given wider ap- plication." It may be also that a By ..Date ———— . 28 The Commercial and Financial Chronicle (1792) Continued forcing causes many strong complaints, another much less much harmful more forcing of con¬ prevails. The follow¬ ing brings this out: "the stealing by a government and central banking system from people's sav¬ ings through the issuance of bills of credit which they refuse to redeem in a standard of metallic fraudulent "equivalent amounts pp. 337 Et dollars."—48. Stat., in Seq. •' ■ By a statute of long standing unit of money was called dol¬ our contained This standard coin lar. 23.22 of grains of alloy. grains since Then, as Constitution our 2.58 always gold, pure adopt¬ was ed, there existed no right by our to deny redemption Government important to remember, also, that often, instead of coin, bullion was the medium for redemption. Ob¬ reducing the gold unit's content 24 years ago was an impairing of viously the only requirement was that its gold weight should equal the obligation of contracts, a vio¬ lation of the Constitution because Congress not given was the right to do this. Some conception of the stealing referred to may be had by reading the following by the exceedingly high authority, the Editorial Staff, American Institute for Economic Research, in "Current Economic Trends," June, 1957 on page 31: "Another effect of the great infla¬ has tion been subtly shift to wealth from the accumulated sav¬ ings of the people to that avail¬ use. About $160,- able for current €00,000,000 has been thus 'stolen' from the life insurance, savings deposits, and other fixed dollarvalue holdings of many individu¬ als transferred and current to others for spending." Under date of March 1,1958, the Institbte published "Research Re¬ that of dollar our not justify a dis¬ our policy as to Silver policy made confusing article cussion of a do by "New Deal" laws and fiats. life insurance and savings bonds, savings deposits, etc. since Today - . The name, dollar, correctly ap¬ plied today, designates our present standard coin, a coin of 13.714 such the cases use of all bullion is satisfactory, passing, we should observe that, when, in 1934, the gold conlent of is far In standard unit our measure more marked in the follow¬ of money was ing mentioned activity: was ernment lowered, this change expected correctly to contrib¬ Our Gov¬ Exchange Now, as still in the recent past, policies as change are to our medium of our being employed in How simple and the of a A general Popular in to "Look thinking markets to be advanced animal tanned an dressed for As use. other¬ or money money. land, for and general, and as little neg¬ lected, is the understanding of the New the nature of substance after sub¬ stance. No excuse is to be found for the evil complained of here. Money is metallic coin and noth¬ ing else. At the time of the Con¬ vention in so Philadelphia defined and had money no other definition. The money lawful is power granted in ever the power over Con¬ our to borrow money, on the credit of the United States; to coin money, regulate the value (that is, the degree of sub¬ stance), thereof, and of foreign coin; and to provide for punish¬ ment of counterfeiting the current of the Congress United States. The borrows Deal Yet, throughout long lime before such not was the case. "The ordinary thinks in but is quite man now subject merce.' enty by George F. To "look round little" a is to grasp Mr. Hepburn's definition of real money and hence Government's tation. great our Federal misrepresen¬ Since the "New Deal," the dollar does its work now of the ' Another Source of Confusion Another source of confusion assertion of gold a that standard regulator the consider gold standard to be is advocates the automatic an which, when at work, "inflationary ex¬ pansion of the money supply."— would check Gold Future'." in United Business Standard Past, Pres¬ — Service (210 Newberry St., Boston 16, Jan. 14, 1952.) • "There comes time a under a the country have originated chasing power in excess of pur¬ that required to represent goods pro¬ duced (including form, place and time values) which arc currently coming to market." Here the should remember that we reference here mercial bank is to a com¬ commercial de¬ or a As the to credit situation arising expansion had in pre¬ a happenings: First, the plac¬ the hands of individuals ing in and businesses of ing power used to kind or of the purchase purchas¬ course, goods was of one another; second, because absence the ance excess which, of Of excess, a goods to bidding bal¬ up by This last observation has been made by quoted for the same book character of consequences. evidence is sufficient The extremely highly that qualified [the gold standard] inflationary expansion regulator work, deposit credits at of and paper prom¬ of reserves sudden will provide against as and temporary, unexpected, depreciation if even for well chosen. In this matter history has given During most helpful lesson. a of the two and fraction centuries a ending in 1914 much good bank¬ ing was practiced in England. Throughout that time the required amount of to not bank's a have been reserve seems hard to deter¬ and 40% of its paper currency. Today, System's Federal Reserve so-called reserves are misnamed. .They are not things held our Since we cannot have redeemabil- ity except aforestated, the socalled reserve "requirement may as reduced be without the fear of Rex Robinson and The Herbert Commercial Financial Chronicle, May 10, 1951. Obviously, this "requirement" may be raised for manipulation purposes. The limited scope of this article forbids nal, June 30, 1958, is the following: volved the transferring to all others is characterized lows: understanding of money, real money. "Richard Henry Lee, writing to at the outset the Constitutional Convention gold. This Act authorized "in May 15, 1787, said: 'Knaves ment" credits in the pay- Treasury De¬ and are been as the Mason, fools believe that of allowed to con¬ on assure calling to pay United States promises money to the bullion equivalent in The for "As Wall Street Jour¬ the future, fol¬ noted, vert their the United States the title to all seized George former has As exchange value of money, real money, gold coin at the rate of $35 T per fine ounce. All others (institutions as well as the to ". . follow: Some . quality general medium of wanted to be the is of everything; and this belongs to metal, no more than it does to when asset is both old Some observations erroneous. exchange this but economy, an from the past the stocks and paper, of them is circulation Only two years after the above appeared, published was The Wealth of Nations, by the re¬ nowned R. and treatment to the and Smith. Adam On pages gold withdrawals and insufficient 363-369, Book V (P. F. Collier and gold holdings." The Federal Debt- Son, M. C. M. I) appears the fol¬ Vehicle of Inflation?, by Leland lowing: the as Observations From the Past Many well known economists today call Government debt an in theory of paper money deemphasized in his confusion is widespread percentage as has of foreign central foreign governments and a readiness for use. Used supported by the credit and good "accounting devices," they faith,- and by the interest they cannot be said to be kept in such produce." An Essay on Circulation form as to meet all instant de¬ and Credit in Four Parts, and a mands upon them. The authori¬ Letter on the Jealousie of Com¬ ties of the {System, instead of merce. From the French of Monavoiding this evil, exert their s'eur■ Isaac DePinto, Translated, powers of so using reserves as to With Annotations, by the Rev. S. Printed help the banks to expand or to Baggs, Ml. A.—London. contract the exchange media sup¬ for J. Ridley, in St. James Street. ply. How easily they do this. MDCCLXXIV, Page 126. only provides for punishment of or small c£ unwise borrowing. Only 3% of it would equal the loans for stock specula¬ tion on margin in 1929, and we suspect that even more may have been unwisely inquired." measure numerous banks ($300,000,000,000 since 1945) includes vulnerable loans reflecting asset money supply would be checked." — The Gold Standard, daily practice with the result that huge total of incurred in recent conception of in¬ gold coin standard, the Federal Reserve System had little incentive to change its rule of keeping in re¬ serve 35% of its deposit liabilities reminding the reader of other specific ugly in¬ fluences upon banking reserves. quoted from above. Dr. Spahr Yet news commentary after news says: "The quotation should have commentary shows the popularity contained the word 'ultimately.'" of efforts to adjust affairs to such influences and to avoid resisting Discrimination them. Illustrative and constituting It is important to observe that an excerpt from Mr. George Shea's the years terfered. our Research, the mine, except when the State Under Century American March, 1958, contains Note 6, Page 4, reading as follows: "We that readiness 20th — dated debt held in something us Reports Common Sense, by the Institute for Economic private certain only if it consist of money, metallic coin. The name reserve, use, was search believe column in 30, 1934, the Congress enacted legislation allowing the Executive Department to seize and melt all gold coins. Also, it in¬ to the is condition arising when the banks of the country have originated said of great discrimination between On Jan. inflation that This proportion can be securities. the been effect Federal our ises to pay money, need the cer¬ tain support of such a proportion Brinberg, and causes of reserves understanding of coun¬ Little" Again a again we look around a little, we readily recall Mr. Harthe man's empowered. Round wood's above quoted statement is the as "Look var¬ ordinary terfeiting, ings. It world. money on the credit of the United States, and it true gold with¬ drawals and insufficient gold hold¬ When to multiple quota¬ characteristic of a defec¬ a "The Hoar, money authorities carefully avoid the claim that "with an automatic History of Currency in the United States, by A. Barton Hepburn, L.L.D. (Macmillan, 1924), P. 463. only too well, the know we Fed will be unafraid of tive and weak currency. 12. P. two note, a promise to pay —gold—on demand."—A being costly. "Our "—Autobiography of Sev¬ Years, paper promissory real money will story. .*: purchasing pow er in excess of that required to represent goods pro¬ duced and currently coming to Reserve banks are listed as held market. The banks,, in this re¬ against all their Federal Reserve spect, have originated enormous notes and deposits. But our peo¬ purchasing power which is unde¬ ple cannot touch these reserves; sirable. The greatest such power the privilege of utilizing them is is government debt used as se¬ confined to foreign central banks curity for paper money and de¬ and governments. The reserves mand deposits. An immense por¬ against the Federal Reserve notes tion of the private debt used to and deposits in Federal Reserve secure paper money and demand banks held domestically are deposits is of the sort affording merely accounting devices." — the undesirable kind of purchas¬ Why People of U. S. Need a Gold ing power to which Mr. Harwood Standard, by Walter E. Spahr, referred. Examples are real estate Reprinted from The Commercial loans and instalment purchase and Financial Chronicle, Oct. 16, loans originating in the banks' de¬ 1952. mand deposit departments. Banks More About Reserves can properly make such loans only However wisely selected, the in their savings departments. securities given against a bank's A special bulletin entitled Re¬ paper demand As replen¬ reserves tions, practice. The true theory of money is that a piece of a gold of with diminished honor in the 'cheat, vexation, snare, a medium whereby we are continually cheating and wronging one another in our deal¬ ings when at work and com¬ following the Harwood is in ... simple terms, capable of understanding the true theory of paper money if that theory is emphasized in his daily very - used-up paper money as a buyers of prices in general. money only stitution a to tell the and the bank reserves, which the Fed up the and such seems use ishes the difficulties profitable exchanges ious long time before 1920, because of two things common in Round them of a Fluctuating Medium of Exchange.' He denounced Mr. quences as Little" acquiring' United States dollars can get the fullest possible benefits from them only by trading them to others in the little a vailed for accord with the idea our coin is abroad Sherman pub¬ pamphlet entitled 'A Caveat Against Injustice or an Inquiry Into the Evil Conse¬ 1752, lished 1920, simple was dollar a understanding of the nature through our government's calling piece of leather, a piece of irredeemable promises to pay skin of wise and An Occasion a cloud of general negligence to un¬ derstand the simple nature of money. stands, ex¬ consequence best way possible, forbids defined. grave paper : anyone in the partment of a bank whose de¬ ute, independently of other move¬ United States to possess gold for posits are subject to withdrawal ments, to the realization of higher use as a storehouse of value or as on demand. Long ago, history prices. For the change to come a medium of exchange. Well- established that the only safe use about, time was required, but the known for 25 years, this truth is of demand deposits is to lend intended to serve here as a re¬ expectation has been realized. them, after making a proper re¬ minder that nowhere in the Con¬ serve, on 30, 60, 90, or, at most, A General Negligence to Consider stitution is such a power granted. 120 day paper secured by goods the Nature of Our Medium of Moreover, the 10th Amendment "currently coming to market." , A for "In* gold standard, when credit expan¬ grains of pure gold and 1.524 sion must end, if the monetary grains of alloy. It will be observed standard is to be preserved. That that this name is unqualified and, situation arose in 1920. The gold therefore, can be contrasted clear¬ brake finally brought the expan¬ ly with the terms, Silver dollar and sion to a halt."—Walter E. Spahr's Paper dollar. Under present con¬ note 9, P. 3, Monetary Notes, ditions, our Government, though March V,'1952."u y In his The Cause and Control of promising it, denies redemption in one dollar or multiples thereof, the Business Cycle (The Murray the medium when redemption is Priiitiiig; Company, Cambridge, completed being gold bullion. The Mass., 1932), on page 49, Mr. E. right of such redemption extends C. Harwood says: "Inflation is only to those foreign Central banks defined, therefore, as the condi¬ or foreign governments holding tion arising when the banks of me¬ to extent convert. is, that, with the exceptions noted, all people and all institutions Charles by The but standing out is the perfidy of refusing redemp¬ tion in money. Here is a marked want of integrity. Yet this want 1940." Constitution, ent, Dollar Redemptions Allowed ports-Twentieth-Century Common Sense," from which I quote: "Gov¬ ernment sponsored 'theft' via in¬ flation has taken nearly $200,000,€00,000 worth of real wealth our promises to pay money, (goods and services) from holders tallic coin. Presumably, in of the Thursday, October 30, 1958 . to .'"—The Making . . . persons) are denied this privilege for specula¬ purposes, designs. the Parenthetically, the purposes of dollars, of dollars rep¬ or resented. this tive Warren, P. 55. ; ;. \ money."—"Monetary Notes ," Nov. in a dollar or multiples thereof, 9, 1952, Sec. 9, Note No. 8, by but, for the convenience of hold¬ ers of bills of credit or any gov¬ Walter E. Spahr. ernment promises to pay money, Concerning this matter, it is the it kept in continual disturbance by the intrigues of wicked men for Specs partment in form of taxing or tributions making be rich and happy; thus the national mind is this and and the way to tender is Put On Your noticed "money" paper from first page . seasonal factors plus the needs of the U. S. Treasury Reserve addition, nance a will strongly System the influence actions. Treasury ... must deficit which in the In fi¬ com¬ "The public funds of the differ¬ ent nations of Europe, particularly those of England, have by one author been represented as the accumulation of a great capital superadded to the other capital of the country, by means of trade is extended, its which its manufac¬ tures multiplied, and its lands cultivated and improved much beyond what they could have been by means of that other capi¬ tal only. He does not consider that the capital which the first creditors to of the ment in which certain they advanced it, a portion produce turned of away ing in the function of serve in that maintaining to advanced public government, was, from the mo¬ maintain of a annual the from serv¬ a capital, to revenue; productive from laborers unproductive ones, ing 12 months will hover around and to the spent and wasted, gen¬ $10 billion. erally These needs will tend in the course of the year Volume Number 188 5790 without even the hope future reproduction." Turning to this book finds:.. one debts whicii of at ,'. ■ , from 13-V'-* page Q - • - '- - (1793) ; v -/ -rrrjr Bankandlnsurctnce Stocks * ■. present oppress, has been pretty uniform." A second observation from In the the history of the 19th Century is to be seen the chief cause of the greatest financial crisis of : that 100-year period, - By ARTHUR B. WALLACE This Week lars in, existence. finished Rather record it is strength of of the is It not will history. past of measure Economy, The Commercial given as in the and t short as we are tribution. a We . . in the of the use ward for such an than in increase. and consumption to operate. Both phases of the cycle need to in order to the get greatest efficiency out of the engine. The their rewards by of increases, workers in in¬ creased wages, investors in in¬ creased profits. But the consumer producers lake means share his takes in decreases • • long-term obliga¬ tions which are never repaid. In The Wall Street Journal, equivalent to they ^rojb^tlie permits 1 it, mone,y c'onsuini4<Hbf his share and more. By translating their share into in¬ ^Aug. 9, 1957, an editorial refers creased prices, they create for "to "the thought that the Govern¬ themselves the illusion of some¬ ment can go on spending more thing for nothing, a reward and more, year after year, without greater than they have earned. So discipline and without end. These long as they are both producer economic magicians smugly as¬ and consumer as most of us are, that they know better than the experience of all recorded history." sume Conclusion Attention to of certain tween -unjust, given Constitutional, taxes government's over money which using are powers not granted by the Constitution. We have seen it do this through ignoring the true nature of through money; price spiral. sions, fixed But people on pen¬ on fairly static in¬ cannot increase their comes, from incomes and resulting our- be¬ statutory our although and been difference outstanding an taxes has now they can keep up the illusion; and in fact, when inflated prices rise faster than wages, they have an apparently perfect justification to begin another round of the .wage- are thus "the greatest losers. .: (4) The number greatly out¬ producers when we consumers the include those who wear both hats. ' " donment of -the gold standard is a thoroughly dishonorable prohibi¬ use of money, coined tion of the metal, causing, among other things, a toleration of the Federal Reserve System's dishonest alter¬ ation of reserves counting devices." 1 An to mere "ac¬ ' , * established lesson in life is dishonest that - The same individuals holds true of an fail. aggre¬ by The woman." It is the a has Habliston the staff of added to & Co., 634 Street, members of Morgan South Spring ing rate, highly important to of price stability they won't work ters s£e the hope —- think don't for it. : pensioners and fixed income peo¬ ple escape inflation, the pick¬ pocket, and have a chance to get the consumer's price share in increased prosper¬ a script picture (Specia; to The Financial Chronicle) Calif.—Earl W. Morse has joined the staff of Witherspoon & Company, Inc., 215 LOS ANGELES, West Seventh Street. New E. I. Hagen Branch Wash.—E. I. Hagen & Co. has opened a branch office at 915% Pacific Avenue, under the management of Jack R. Bratlie. Charles H. Dick is associated TACOMA, with the new office. one from which are' scaled, declined during the recession, but it put up to 4% in September. banks York New First was not has Guaranty is the from one loan in volume normally start, as it is then that retailers and wholesalers begin to 261 Trust..- .349 -'••• - 451 1.857 York New Trusts stock dividends subscription and rights 2,079 536 321' 301 in made 1937 279: 507, , • 512 United States Trust, ^Adjustments for changes capital figures viae in 'period. This increase in working assets surely indicates growth, and this writer will is of the opinion that this reflected be earnings as we go in improved along. Woolrych, Currier & Carlson Formed in LA LOS ANGELES, Calif. -* dore D. Carlsen has become ciated Theo¬ asso¬ with Woolrych & Currier of San Diego to form Woolrych, Currier & ; The Carlson. firm's main office will continue in San at Diego Street. A Mr. Carlsen will be in increases - 386 . 331 P..Morgan & Co.— J. strong of late, the weekly report¬ which " 507 , Trust—393 Manufacturers • 400 1,544 489 Trust—/„^^t.j_ Irving - ing of it has shown ups and downs. The mid-year date - 459 377 City Hanover 233. been National dent - resi¬ partner of charge the Los new Angeles office at West: 210 Street. 7th to be when consumers they who it. The unorganized need are may have a greater its protection. right to call on on. like In may happy ending—prosperity without our important increase in government bond holdings by the banks from the THE gen & Branch DALLES, Oreg.—E. I. Ha¬ Co. has opened a branch National Bank Building, under the direction of Eugene T. Porter. office in the U, S. earlier. year crease E. I. Hagen Opens comments two weeks ago the banks, we pointed out the on a inflation. of the Federal Government have ment this! The be changed in detail but I think the general idea is sound and will lead us to that final Let make it clear me right here that I am not thinking of a return to wage and price controls in the wartime pattern. They didn't work and never will. I am think¬ ing of a simple self-triggering system of enforcing the consum¬ er's priority in a free market. Suppose the government said to labor and capital "you cannot have increased wages and profits in any year following a year in which prices rose?" Or to say it another With E. I. Hagen Co. way, so loi^g as (Special to The Financial Chronicle) in a result of and volume, OVERSEAS GRINDLAYS BANK AND LIMITED and Grindlays Bank Ltd. SUMTER, lor. rych was Bankers an economist with the Company of New- Trust to comipg to Cali¬ fornia. Mr. Currier, a native CaliYork prior 13 N. Y. CITY BANK STOCKS 3rd Quarter Earnings Comparison 26 BISHOPSGATE, LONDON, E.C.2 Bulletin London Branches: on Request i 13 ST. JAMES'S SQUARE, Bankers Branch Warren Head Office: S.W.I 54 PARLIAMENT STREET, S.W. 1 G. H. Crawford Edmund Alma/gamatlng National Rank of India Ltd. Bartos, S. C.—G. H. Craw¬ ford Co., Inc. has opened a branch office in the Shelor Building un¬ prices der the direction of Henry H. She¬ stay stable or drop every year you as loan partners in the firm are H. Woolrych and Currier III. Dr. Wool¬ Other Dr. part of it was due to the increase fornian, has recently returned to in deposit volume. But the im¬ the coast after 12 years in the in¬ vestment business in New York portant point was that, with a with Allen & Company and P. W. single exception, invested assets (also called working assets) of this Brooks & Co. PORTLAND, Oreg.—Vincent S. Roger A. Chaney, and Lewis R. Thompson have become affiliated with E. I. Hagen & Co., American Bank Building. Part of this in¬ about came decline NATIONAL Senator's Basic Proposals Witherspoon Co. it is the as others While loan volume at the large the Pacific Coast Stock Exchange. Joins all : (And in parenthesis let me sug¬ gest that only in this way can the some banks later of brought to play. That power is already being in¬ voked both by labor and manage¬ Calif. —Keith been who spends the consumer's dollar and when she and her millions of sis¬ follow will LOS ANGELES, the woman up 439 1,398 ■ build up inventory for the fall and The new firm To return to our TV picture, winter trade, and it is about that has made ap¬ Ted D. Carlsen "Prosperity Rides Again." This, I time that crops begin to move. plication lor get it, by lower prices. In fact believe, is the call that can bring Since that date this year, however, membership in the Los Angeles they should have priority. out the posse and put a potent business loans at the New York Division of the Pacific Coast Stock weapon in the hands of everyone How can they get this share? banks have declined in volume by Exchange, and will maintain a of them; This will put them on First, they must realize their right some $428,000,000. This compares direct wire to Troster, Singer & the side of the "good guys" and to it and demand it in the market with a shrinkage of $461,000,000 Co., New York City. down that villain inflation the olace. Stable or lower prices at in the like period of 1957. But, worst of the. "bad guys." In the Mr. Carlsen, who has been in every level of production and dis¬ compared with last year, the tribution must become a fixed picture the "good guys" always banks now have the advantage of the securities business in Los An¬ win. Remember this when you geles for the past 21 years, has public policy instead of the pres¬ decide which side you will be on! firming rates, even though they recently been manager of the ent acceptance of inflation. How, will not get the full benefit of, let Can we have prosperity without trading department of Harbison can they know whether they are us say, the September hike, until & Henderson. :. inflation? Of course we can if we getting it? By watching the move¬ power G. power by govern¬ phrase says, holding are Manhattan____, Chemical Corn Exch.__ Empire Trust— • well, and interest rates are one of the components ol' bank earnings. The prime lend¬ ity.) gate of individuals, such as the under a recognized official, ac¬ people of" these United States. Appalling to contemplate is our cepted standard of measurement. And if just demanding their share destiny if we do not discontinue in terms of stable or reduced very soon our present dishonesty prices won't work — maybe the 'in monetary affairs. (Special to The Financial Chronicle) famous underestimate "never of and management ment. They should have every right to a real share in the gains of pro¬ ductivity in the only way they can ■ Morgan Adds to Staff Chase re-discount Reserve • ment applying unlawfully the name dollar; and through forcing the use of debt to support debt. That which is called the aban¬ Federal . term money or • The . . — of the term dollar. decreases of the prices he pays. Since the New Deal, it turns out, (3) In inflation, the producers short-term, or Treasury, bills are not only take all the gains created never paid, but renewed again by greater productivity, but'be¬ and again. Therefore, they are cause of the heavy oyer^upply of continuous and increas- * share in the benefits of the proc¬ ess a inflation? True, it would rate, recently advanced in several force you to readjust many man¬ Reserve districts, followed by sev¬ agements policies, but-most of. eral others. Now we learn that those readj ustments ; would be ■; this rate in five centers—Philadel¬ good ones. If we could effectively phia, Richmond, St, Louis, Dallas control-/-yes^almost certainly. end and Minneapolis — with Board, price, inflation, you could turn • approval, has been advanced from your, mind, to the improvement of 2% to 2%%; with the remaining .productivity; and the risk, of the • districts staying at 2%, to which suspension of wage increases figure their rate was boosted in should turn your workers' minds * August from the old 1% % toward the same goal. Booms and One of the better signs of the recessions would not automati-. trend in money rates is the Treas¬ cally be eliminiated, but their se¬ ury bill rate, as Treasury bills are verity would undoubtedly be re¬ issued each week for the rela¬ duced. Speculative,-pressures in tively short "period of 90 or 91 inventory would be diminished and there are many other value^. days.; This rate has been above 2%% since last November, and on 11 was a business executive- for Oct. il reached close to 3%. Be¬ 30 years—in a business that was cause of the bills' short maturity, comparatively small but whose they are used by the banks, and scope included manufacturing, dis¬ particularly by the larger institu¬ tributing and retailing. Against tions. this background, I think this idea In other words, interest rates is worth investigating by labor, ing (2) Prosperity is a two-phase engine that requires both produc¬ tion : 1 only do this by can Bank Stocks - our Financial giving everyone some share of the growing prosperity which is re¬ Chronicle, July 26, 1956. "Napoleon Ill's was the Goveminent, of cheap bread, great .public works, and holidays."—Er-c. Brit., VoL 16, ;V ;\i r So much for past events: Our i public debh grows and grows, and : is represented chiefly by Treasury bills/ As we know, these instru:ments represent debts which are 'promised to be paid in short terms. However, here we are: as dishonor¬ able in our use of the adjective ■ future—of — be perfectly free to divide Indications continue to increase group of banks showed a good the producer's share of increased that the recession from the 1957 increase at the Sept. 30, 1958 date production and productivity as highs has about run its course, and * when compared with a year ear¬ you please according to present that better economic conditions lier. The average increase in the and existing law. But whenever a are developing. Several sources 12 months was $6.4%, not a bad rise in the average price level for have tabbed the let-down in busi¬ showing in view of the fact that a -year reveals that you have ness as the shortest recession since the period was one of economic robbed the consumer of all of.his the end of the war; and, certainly, contraction. It was for this reason share, then your right to increase. if wp arp now well on our way out that earnings held up so well, will be suspended for one or more of the slump it will have been one while those of industrial and rail years until his prices come back, of rather short duration. Unem¬ companies generally did so poorly. into line. 5 ♦ ; f ; ployment is on the decline, em¬ The invested assets exhibit is as What do you think of this basic ployment on ' the increase, car follows: • y 3 : idea? Can you live with it? * In loadings up, etc, Invested Assets Per Share0 fact, wouldn't you prefer to op¬ Every week or two we read of :>/30/5-; »/30/5» erate in an atmosphere of stable increases in bankers acceptances Bankers Trust. $504 $534 or slightly falling prices rather - and in commercial paper rates. Bank of New York 1,542 1,638 a rising power for the potential capacity for growth. It is the composite namely, the crisis of 1873. This expression of increasing skills, was Napoleon Ill's financing of socialistic programs by debts "on improved productive machinery, and more efficient methods of the argument that the public debt manufacture and distribution., To was not a liability but an asset to insure a steady increase in the ;the economy." Reflections in the rate of productivity, we need to Dangers of the Present Economic Situation, by Felix Somary, Doctor motivate,all segments of our eco¬ nomic society to make their con¬ of Law and Political Zurich, Switzerland, 1 il . enormous arid will in the long probably ruin, all the great nations of Europe, past: - ■ 29 . 350, • • Continued any / '•■';/ of the The Commercial and Financial Chronicle . . s page 1.;V« "The progress . to the Government In: aden, Kenya, uganda, zanzibar a somaliland protectorate Branches^ In: india, pakistan, ceylon, burma, kenya, Laird, Bissell & Meeds Members New York Stock Exchange Members American Stock Exchange 120 BROADWAY, NEW tanganyika, zanzibar, uoanda, Bell aden, somaliland PROTECTOR ati, (L. A. Gibbs, NORTHERN and SOUTHERN RHODESIA. YORK 5, N. * Telephone: BArclay 7-3500 Teletype—NT 1-1248-49 Manager Trading Dept.) Specialists in Bank Stocks 30 (1794) The Commercial and Financial Chronicle Continued from page 18 < political structure of this *•' s country Politics and Recessions who Senators Kennedy and Ives, had the responsibility for putting the bell on the cat, began by con- suiting the cat. They got in touch with George Meany, the President of the AFL-CIO. The Kennedybill Ives , which bore emerged a striking similarity to the Meany proposals for a labor bill which had appeared in the AFL-CIO "News". To insure Meany's support, the bill contained little or nothing that would get to the heart of the abuses of labor power, but it did have several provisions that would, have Taft-Hartley law. weakened the >. for candidates. They will provide publicity in the giant labor press, And after election day, these union leaders expect to collect what they feel is due to them. They will demand the kind of government they want, in addition to the retention and extension of the privileges and immunities they now have to the exclusion of any other citizen. If you have been following their political utterances over the years you know that the kmd of government they want is not the kind of government< you want, nor the kind that most Americans want. They want the kind of cradleto-grave-welfare state that has voice in union elec- tions." t+ A\A hacip .w Hool uninn u/rnriffQ JL u~L nornntrofw ...J? p atfainsf l^arW* nifirflfintf ir.fr. thp ,,nnn nf hnv expected to thresh A ig to make cummuu common the On and other hand, approached was by ;^n those of symptoms. ~Among, two different methods: ^ sacJ\ ear^na^s or outward signs, , (l). One was direct and simple, and that includes the vast:.busi-'Pf ^ Ier!»w *i10n5 are5frequently. jt consisted.in constructing a 12ness community which'''ri*eatesvv^ff ddv^eifp?escntiy»sitiqn has year moving average of current America's wealth under increas- often in the past been, precursory earnings. ' v ing handicaps. And this leader-^drastic declines of stock prices. v;: ^2) The other, method-was- more ship is beginning to come forth/Jheu. 1 re °f yiTelds ls :now complex: -It used the concept that must of sources fromthe come conservative strength, . . National '/^01^m ®IS,,alS' e a r n i n g s are the ^'dividends' Sufh. fears, however - may be fur,d » .From the average histor^ ^u<ih on;.a f.ormaAs.tlc ^cal relations between.the rates of of Manufactur.r??:is bli a^ frs 9..assist and mechanical apphca W gX™*8 i^ of ^-Cn of -dividend payout* • of a-curve 'fife sufficient for payment of i«ns P j ^^,wiL-norraal dividends. : p g Particularly-. The'earning power curve of the Some may have beard of some when they dcclmedbelovv them. ■ j) j j. a appearing on "Fig. 1; is of the other efforts being launched ; it seem3 reasonable to assume the result of a simple arithmetic corporation business affairs. They this^ field—the• Syracuseplan, that such an incentive may be - average of these two estimates. T want high taxes on everyone who S?.n®ral Electric s program,;Gulf*weakened, or may even disappear, :cV'On Fig. 1, the normal earning shows drive and initiative and tax Oil Company s program, and other*; in periods when the majority of power of the D J I A is expressed reduction for everyone else. They movements. ; .investors hape doubts concerning by a single line. In reality,'^ of ments. Many of them even want government and labor in a posilion to out-vote management in . There is not only room for you the stability, of in this movement, your participa-- power of fixed; tion is vital. It is vital, to the their faith in this country, and it is vital to you. to be as strongly And they want to control every employee, whether or not he the purchasing course, no such definite and clearincome. When cut appraisal could have- been respect happens made. A better mental picture of undermined, as this, line would be in the form qf . . ,where will lshed would it in direct vaR>e terms, but rather i! and sellers, Conservative leadership-for this struggle wishes to belong to other v i ? . ' evils eviis. *'♦ w?< relation between stock'and bond:the normal earning power of the yielas. Much of the thinking about D J I A, resulting from the cotthe values of stocks is done not elective trial and error of. buyers /''* their minds.- up - . vfc * vestment of profits. in bargaining elections or differences our ■# Guidanceintoof^Jw'ih♦°n' ^wai;k ^normaT/dividends was computed, eovern&" ®nj?t considerable It served as the basis for deriving WaT d<T "T order„ t0 a leveh of earning power neces- want to divide corporate profits " and choke off America's growth possible only through the rein- thL uni/wc oligarchy an V ; - ■ - th nnrtiL i. innnppnf tranivatinnai +t,A fnrmLnn mnnnnntip? fprnn^rv khnr pnttc «rifK oil of nobility, a - Thursday, October 30, 1958 An Appraisal of Dow-Jones Industrial Average f out in the open in full hearing of the voters, and allow the voters • brought disaster to so many nalions throughout the course of hisest" in certain aspects of the han- tory. They want to strengthen the dling of union fSnds, and would Federal Government at the exhave given members more assur- pense of state and local governsome • tyrant. We have a representative form of government. We are The bill, as it passed the Senate, of oper-.1 a would have required simple hon- ance be Continued from page 3 . . as- ^ alty, Committee promised to produce a labor bill. the on sumption that it would ■ a B created was . a. _ have placed many supervisors under union control, it would have ^ _ ate by taxation until thev .i-_ - - can and stocks, whose dividends inflation longer no buv the statistically And around * it. can grow, in order to purchase bonds. Thus,.represents it composite -view taken a that allowed you be if your: cus- -seems now to be the case there countless points of individual tomers continue to-be impover- is no inducement for selling judgments clustering irregularly union a construction force employers to before a worker unions to sign contracts hired was and . barring of woman ^ao^ai non-union a from employment — in until they are beyond the books of your customers9 other words, make the compulsory umon. shop illegal. Known as wouldr Right-to-Work liave allowed economic legally re- these laws now in effect in 18 states labor practice out of extortion, in- you sell of mC x- nomic forces at work which may pocket-' contribute to the same result. ' J -in soar hppomp are price . . 1 ehil thp dre^na^^ C^A: ^en who are your pride> and In all placed by other workers to vote states it is illegal to refuse to hire ib representation elections. And it someone or to fire him because he would have made a mere unfair exercises a right to join a union stead -ot regarding it as a felony as the law has regarded it for cen- *jl products then deliver all his employees to the union when hired, and it strikers who had been vvsxji or man mS This r over which so many she* when it met tears its were tatives. Yes, the National Association of defeat Manufacturers fpr this bill certain that it advocated after could it was not be im. was that it for vote with no ; curve like a an(j come sacrifice Gf age jn - if * thev nation a n? However, - ^relieve/you^ll:: •'^el^InV?'^ea,^SnS hav^ ^or'to"refcre^o they The' validity has- to be tested. ;lf we right in thinking that the whenare governmentfoW.vUen Ve d^Snatdr I''i.e=, desire® , . of ^ boliovp the pnvileees. of a citizen of who still us people and not to be are not performed. by served ^ ror'or rathei" since" the 'reflection ' ' " ' .our should be able- to check it. This 4ake: the To' the people, have been slow to beLittle time remains before elec- is inverse, like the surrounding year ' come alarmed. tion day. Perhaps it is too late landscape in the surface of a lake.J ^~w?y m • that nowhere did it deal leaders. Union members join unions lb connection with their Work—not their politics. Yet, to- day ^union"leaders too much false for confidence ideas could to form organization' Besides,"fluctuating cu r re n t "^hp £ J of power and efficiency,-to deal earnings camiot serve as a reliable" ■JOT with the problem this time. You^^capitalization base. They do not not you an .Perhaps we forgot the P«wer • well-organized minority can wield. All through history, changes in government often have that a been achieved by vigorous minorities. And that is what we are faced with today. spending are This ev?n aiudves. Nor do these didates rsor co inese leaders leaaers often oiten small include they it is i ~ , Congeess, accord- - • UiS. labor's News and IForid ReiJL'?! chieftains felt port,' they on minority, •'»««'» strong enough foundation dates wbo see,k y°ur v°tes, and, for supporting a capital structure. irrespective of the party label, Capital is substantial. Its income- were a government dnteer to support those who de- labor. f disciplined ■. to impose such on us . force, by every one of us would be working v and .defeat for will who man a a11 Ameri«a' ... . In " ... .. m ^bor s Threat . a . UIlll vomateers . ATtfanivn laruze fanwtn teams of tou ring every doorbell district in the £y on election ? po.^s day.They will write fpaecocs and distribute pamphlets s k- to earning oower ~ We Fie mean'price is 13 8 repeat this simple can 1 was cal- complicated and precise proced- - - ure - Jhl ldea of earning power or 0f average and representative and normal earnings simple. But its level which effect,Vpiv qptvpc a ha«!f<? for ftm "cafn '"tt or definition It „ market. Their ideas and mforma- pro- almost identical * constant capitalizer of143LY : ~ " n y theoreticallv is of correlation analvsis. It duces - . the uiultiplying each -successive annual figure> ot earningjpower by ^bis constant capitalize* of 14.8 obtain the curve <rf Market Value which is drawn through the ife . ■ rmM of Fig pression of 1 ^ue^wSef^ value. Woen stock to the ridiculous. Only as an out- ations by substantial dodioes. And tug of war, if prices remain for an extended as reward fdr period below the line of Market it is our duty to provide the political affairs, sq long as there good judgmeht add by financial Value,- there — r leadership that a campaign to de- is a United States of America, loss as retribution for ignorance iogly extended rises,' : ' feat these men and these ideas And if you, and people like you,; or ineptitude, there emerges a Of course, valuation decisions ^S1 require. No one is better perform the duties you owe to level of earning power that has ate pot always in the prlbe-makfltted for this role, because it is America, this Nation witt exist as operational significance for vaiu- ing saddle. Many other SnOuehces a sales job to be done by sales a great and free Nation so long ation. , contribute to the fonmdion of methods. as you give it your best.in this analysis the search-for stock prices, So, for instance, dut^ - . PftWnr become battle tested and be ready ?ound oy lormuia or■ definition, it *• The answer to ^is internal particular limited campaign Or; iSl ^bis, millions wdl be threat is to work and fight to de- objective. You, and people like Spent. Thousands of union staff feat. it.. you, will be needed always in AmiliAVfMlfl * * ; , Faminir And F°u will learn the first S:!!™? lessons that politics, has to teach, bv formula .. acS SaioAtv i80.34. The ratio of the mi average's 4948 1 am not appealing for any one tion about present and projected prices rise far above it, they party Qr for a ^ force for a-earnings vary from the sublime eventually correct such ^vervalu- Answer to Labors Threat an - ™ , the novf obtain 1 mifrht "the SSe who mak^hf flw ??tes^ difference bSwe?n election election votes aitterence between be day and night t0 Pre" -xfanl maior issues Congress thev hone to Dovw nriAin mTre.^t'jZtlStote'tovX ^vestofsasbasm for market of - attempting Uidntted The annual determine whether they are a ■ producing mass cannot be ap- Cniatx0h for each of the years of Pal*t of the labor boss conspiracy praised from so slim an indication our period and then average out to rule, or whether they wUl fight • as earnings of a single year, nor the Various ratios Obtained The th® cpnspir^y with- heart and of a few years. A more stable resuitillg figure is 14,7 * ' ' Wltl? intelli|€nce* You should do form of earning power' is needed^average .eJJ"serve oign government- m the world $%S£ tives S and efficient. ■ Hole not well-organized and. a i labor's PoUtical . spending, are * many does eve^alf^of^thp8 leaders all. of the determined •i ; minority even b^er to women of both parties But ask permission of the m«n and whose money , . had We mean was ami # . be sold. Among ttieimany defects the bill those f^dom to join or to refuse to y . ^ . . . •.-... declihes; -'.the: ratio" canhot* help ' f?n®rs whose transactions effecOnly then will em\ our voice m that government;rising^. The'respective movements ^vely-produce the -pncet curve p Jees be free mep .and union came to you effortlessly with your 0f earnings and ratios have to be ave boon using such a.level of leade^s r«ally responsive to their citizenship, but the duties of inverSe. By tracing a rou^i chart earn"^ power^a^asd for a membership. t citizenship are inseparable from of their historical year-to-year marlret^value of the D I A, we ■1<?m unions that these with the problem of the growing dominance of politics by labor it is not^enough di^r naiTl^' /bey ^® just expres-; merejy to submit a persubsjve ar" Au if118 between two t gumenb in^?avor -of a suitable responsibility to deal with that problem, and who are striving to freedom? I hope the day will soon come when aU states give the em- manner. had of earning power does look sounder capitalization base , opportuhity for real debate or any amendment, and members refused tp have it jammed through in this ■ v- average ■ Thos^ it^was a'bad bTh'and that came, up ures , proved and s?"0'4 on the House Ives Ratios of two reasonable measdraws an acceptable picture opinionJ of average earnings. The smooth'and solid one curve are. by analysts and investors was the than the more erratic and somewhich' uncommonly high and rising level times brutally changing outline of '°eiXes the /ble to se?ve the' of .price.to-eafnings ratios. 8 current earnings. ' ' But in your state and all except Jj}e a Die to seive ine, ^ ' these 18 states it is legal under ne er-do-well, - . ..... ^ ,,s, f..^ .-It is easy to^^exaggerate the sig- ; Earniiig Power and-IVIarket Value deserved defeat in the House of Represen- " The Qlher problem encountered union contract to require that an Yes,^ gpverhment is yodr peremployer fire an employee if he sonal problem. Today, a few score the employer does not join the union or resigns of men heading large labor unions P ye from it. Is that American? Is that' are whling to the Kennedy-Ives bill was . . „0f Limitations of Price-Earnings •. tufies, and probably would have legalized extortion if r, . Ti. 5— 1 ^ • .1 . . Jt i?if i _ • * u_ f - - of-a come sanctioned v . • _• ceaseless by profit * . . _ u A - — #.11—— .. \ r Volume 188 Number 5790 . . . iing ^he long period of undervalu¬ ation extending from 194& through •1954, two cyclical recessions and the imposition, atrt]he time of Korea, of v war-time controls and taxes did not pas^ unnoticed by ' 1 " Fig. ilr pictures Market realism to Wfth« sufficient them Value dispel is in the respective levels. The two; lines representing them Normal Price-Earnings Ratios parenthesis for the-specter of a value vacuum. It on the chart are parallel, The ap¬ a few remarks. They may help to also hears witness to the fact that plication of a capitalization mul¬ visualize more clearely the func¬ earning power is the foundation tiplier at the? level of earning tioning of the mechanism of cap¬ oF value. In fact, earning power power raises,iit;s to the level of italization of earnings in the stock r' market. ^ i» is valiie.'VFhe difference between value.' " , the stock market. (1705) The Commercial and Financial Chronicle 4 F 200 I GU E R Let us open a Earning power is an average of earnings. In order to pro¬ duce the same level of value^ a actual different multiplier must be ap¬ plied actual' earnings to Continued miiiumi. 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In that current of earnings D the contrary, earnings rent are rent If base power represents the which should be used would have been normal if as Fig. 2 tells the order from the to year story. same them make to year, In comparable it all plots ratios in terms of annual averages the stock prices. At this moment, price-earnings ratio is therefore higher than it is drawn of the actual on the chart. But price-earnings would still it is shown theoretical the ratio remain for 1958 16.8 at Fig. 2. on normal It was described only exceeded its normal level. the not offer far a capitalization stock Fig. apart. true that in the also a average its above de¬ rose Market Value recent sharp market If its not voicing its conviction easily be will without the opinion. own it will Yet the reason. remain not stubborn It is eager to rec¬ this is the road as point raises earnings and price-earn¬ ings ratios move in opposite di¬ rections. At the beginning of our period, the multipliers were higher in the recession year of 1938 than in 1937, which was a year of high earnings. History was repeated at the period's end in 1957-58, and as the years in between were rolling by. much Current tach the question importance to this as we to should rate. An values discount to at truly a future significant in its selection error in A completely can distorted for the most accurate even 7% has rate discounting been it ures, future stems historical an 2% per normal divi¬ from current an average return of 5% average rate of growth of both of annum earnings The earnings average well we project fu¬ accurately and can earnings more them more capitalize than the market ment, does will direction tend of to such the of how at¬ fact. mo¬ that Market we may assume Value correctly at in move the Intrinsic an Value until they rejoin. The mar¬ ket's traveling speed toward this goal will be conditioned by the degree and timing of public rec¬ ognition of the correct projections. But the Intrinsic Value is the ob¬ :V J may I A represent new a American iealue c is level, average profit margins and instead of rate of a of fined stock average, can be de¬ a and of ways. computed It sets. to return original on But for logical variety a net worth investment, factors. seems in be related to can to or purpose select on other and our as¬ the it basis of valuation already used for computing Market Value. This basis is earnings. A practical method of compu¬ may be derived from the tation principle that the value of mon the a com¬ stock is the present worth of sum of all future dividends. ings, worth present can earn¬ be depreciation which con-* ceivably may account henceforth something like one-half of the growth rate in expressed paper was assumed in this The effort was limited to finding 3 An acceptance of these assump¬ tions would lift D J I A's Intrinsic Value But ture there method. This payments. hurdle but, It is pretty high the use of a through the discount rate, less insurmount¬ able than it seems. Financial perpetuity is brief compared to the eternity of philosophy and religion. Future payments dis¬ counted at toward 7% shrink rapidly of pressed in terms of capitalization of earnings. principle of present worth is often used in studying the eco¬ The of financial and even in¬ in detail lished in soon a completed after In brief, study and to which years normal to coming would the of the 540 level. dampen the values Indirectly, years. be also the implica¬ in recurrence ture of the shallowed the fu¬ and shorter cyclical swings with D J I A ings oscillating around a steeply in rising trend line earlier the level. Measuring D J I A years, at ' . The available back to 1915. are of the 43 years course In the which have since elasped, stocks have been subjected to practically all con¬ ceivable political and economic developments and contingencies short of the destruction the of capitalistic system in this country. If trend line is fitted into the a fluctuating of curve earnings of the D J I A for this entire period, it shows an approximate annual rate of twice growth high as for all of 4%, which is the average rate as stocks. From the inception of the eco¬ nomic expansion that has marked the postwar period, Fig. 3 traces the annual ranges of the D J I A and its annual per share earnings. It also extends into the future the long-term trend anchored in short-term For line of earnings 1915 and shows their trend through 1958. earn¬ less placed, higher a ; } pub¬ must been of the trend matters lines less to of earnings. It know what the exact configuration the future will give to the annual changes of actual earnings. Their effect value will be small. On Fig. 3, a mathematical bal¬ ancing out of future earnings was in such made a way to as assure selection decisive factors for apprais¬ ing Intrinsic Value. Much more optimistic projections could be ventured. For example, it could the reality of a higher postwar plateau of corpo¬ rate earnings has been sufficiently be argued that well entrenched to justify a pro¬ jection of the historical long-term trend of earnings growing at 4% from that new level. The Intrinsic Value the D of J greater severity none-too-mild The than 1957-1958 the slide. arbitrary of all esti¬ future earnings is the of simple projection of the past into the future. be done For by D J I A this indefinite an can exten¬ sion of the long-term trend line growing at 4%. It justifies, as of now, may price a well level be speculators what of 530. This investors and are currently in¬ stinctively doing in the market. A somewhat similar result will out bounds of of values. growth trend of A 4% point, our long-term or While pent-up demand trend sion that the D J I A is still priced. If the of still value higher of D J fairly estimates I A should to be correct, investors simply make larger profits. To this prospect, their objections could not be strong. The risk thus prove would lies the downside. on So, for instance, the mere ac¬ ceptance of the Market Value accurate Intrinsic as it is in 1958, measure Value siderable of D J I A's would losses mean for con¬ purchases made at present levels. What spe¬ cific implications are contained in that figure? Since 1915, which is the earliest date for which we have earnings earnings trend has been growing, as we know, at an annual rate 4%. of If eventual we than status vailed 25 half longer, 4% rate a 3% rate for run and let can the another bepd it over for(J25/Tnore years, Such the in projection a 1958 level of Mar¬ ket Value right on the nose at 455. currence through pre¬ century, a we it thereafter at 2% perpetuity. hit has then and years into likely more which quo for perhaps basic an indefinite preservation of an the that assume dampening of the trend line's growth rate is speed. 1950 at a indefi¬ rate, both continued nitely, already yield the conclu¬ jection from of line, 3% was filling war-time hortages, D J I A earnings were expanding with extraordinary But 1958 extension an short-term would 3. reckening rate of earnings the for shown Fig. 1958 Such projections may be im¬ pressive, but we shall leave them by indefinitely ex¬ tending the short-term trend line obtained in for years. and extend be A then be equivalent to 715. Since value grows with earnings, it would exceed, for the D J I A, the level of 1,000 in about ten data of the D J I A, its long-term least mates I would as an much of the figure of 455, such provide, even for the rela¬ tively near future, two long and steep declines of the D J I A earn¬ ings. They picture recession of rate of projected future earn¬ ings and of their initial level are continued growth of the longterm trend line at 4% per annum. projection of future profits does not pretend to be a forecast. But it is worthy of notice that the of growth the figuring present worth, we compute the rates of growth be theoretical the tion 1958 would zero. Earnings figures for the D J I A has of research. for it Where the Risk of Error Lies ex¬ determining the level of its application can be greatly Market Value, a purely passive improved. They will be described attitude the The i958, their average rate of grow 111 only trouble with this is that is the pleasant the result of a pro¬ con¬ delib¬ erate settled down to 3% per annum. years The 1958 was cyclical recession of was wider :evere J short and, I in scope 1957- test. and It more than its two postwar pred- cessors. J important an Nevertheless, the fall in A's of per the perhaps share net stopped two even previous more lows impor¬ , cur¬ rency for concept im¬ plies the need to estimate all fu¬ worth irresistibly drawn. an equity, In analysis. No attempt was made to appraise the worth of the D J I A. of stock at The Intrinsic Value of dustrial projections. For the val¬ uation of stocks the techniques of Intrinsic Value also, the rate very heart valuation by the present sense is it does «?00 3% a the 4% rate of the long-term line, could reflect both a narrowing of This 300 And economy. rate of earnings growth from this jective towards which the Market nomics >- ■ another discount of a AO the of for plateau of earn¬ ing power, in line with the gen¬ erally enlarged dimensions of the D dollars. dividends. and tantly, its low did not even touch long-term trend line. the higher for used dends in this report. In round fig¬ and Thursday, October 30, 1958 . 1950's vital result on 500 of the earnings. convenient valuation a dividends In However, if ture ' FIGURE 600 is It be derived from the can growth They offer We is strong, swayed. market of projections of future dividends. Since dividends flow out of advance the D J I A to heights which are well above its Market Value in this presentation. made earlier illustrates Dow the actual ratio substantially The market. 2 the cisively picture of process an more trail, or orbit, an Market Value is important. listen with respect to where when are much computing appraiser. must zone. Indeed they are close enough to leave little doubt that the principles ratios acted hunter following a a than or hypothetical multipliers are on Fig. 2 with the price-earnings ratios such as they actually were during this period. and convey reasonable Market Value confronted actual to quoting dramatically impression that stock prices had reached completely irrational heights, they were, as measured by the D J I A, well within a These The Only in the level of Fig. 1 was the capitalization base. as Value. this paper was Macbeth power .serving Dow average was in line with its or Market of outset multipliers of current earnings to Compensate for the deviations. Fig. 2 shows, since 1937, what price-earnings ratios of the D JI A earning Value the commentator mentioned at the of capitalization in the stock market, then tbe fluctua¬ tions of current earnings may be looked upon as deviations from it. And it becomes possible to compute normal price-earnings ratios the below year indicated of market value. earning habitually astronomer ognize reality, July did the Average exceed 500. In August and September, it was still frequently trading below that figure. In fact, at the time when They need a higher priceearnings ratio to be able to reach real capi¬ Market and Market I A selling in 1958, cur¬ below earning power. the level bird's-eye view It is apparent from Fig. 1 that during the first part of the cur¬ earnings in order to re¬ sult in the same level of value. of actual On J and rates . to financial reward. for the higher level must be used it may comprehensive discussion may be found in "A Theory of Price-Earnings Ratios," The Analysts Journal, Nov., 1953. on Fig. 1. Quite obvi¬ much smaller multiplier a a Stock the how year ously, an talizes earnings. A high above earning power. A multiplier of 14.8, applied to the 1948 earning power level, results in 1he level of value shown for stand that just was collectively speaker like be mentioned that the above sum¬ mary used as an illustration. year, springboard. those valued the Dow average in terms of its capitalized earning power. This To close the parenthesis, power was stock dividends rather Industrial Averages 1948 the market itself, or buyers and sellers who transact their business in it fro mpage 31 . juggling of the numbers of during which certain arbi¬ trarily selected rates of growth are to expected doubtedly, a rationalization to defend could them. lectual feat would be prevail. be But necessary a Un¬ convincing pieqp of built the to transposition up intel¬ do so into economics of the ancient political Volume 188 Number 5790 V. doctrine that the end justifies the means, > : . D J an - accomplished fact, their future will lose its dynamic drive I A has to be accepted mistress as a trend A Low Estimate trend 1958, as line culminating shown on Fig. 3, at , annual rate of jection can be 2%. Such justified which this unable the cal Intrinsic Value an of 440 for of earnings was Still also contingent cause there. A investors of is _ . JL The Intrinsic Values of D J I A confronted below in of table. : * a ^ - effect of ; " IX TRINSIC * V ALU E S Continued as ■ from, 18 page - • . That ' 3% Along Short- 4% Along Lone- Term Trend Earnings Intrinsic Earnines <. Trend Value Trend $24.00 530 $32.00 540 450 25.00 550 33.00 560 I960...... 33.30 470 26.00 575 34.00 575 1965... 36.75 500 31.50 700 39.25 665 ticular political in the same way as we Value 440 1970 40.60 1975 550 38.50 850 45.50 600 46.75 1050 53.00 people in this coun¬ try who feel that the nation would Valuation 890 difficult a we and that profit margins are widen- . task. off if there no were come Now, this doesn't mean bor is going to start a 7 f , ar<? ;; . / Now, after all, the trade li&ioVl is a large segment' of We can no . The reason we are for those Who work for wages. - Organization of workers in this that la-r country has reached something political like 17V2 or 18 million. Thes<? sound may pie. We still have people - who the prospects are excellent for would like to weaken the trade I have over- the other obstacles. «•. /.;/'• party or labor is going to go into 1 ridiculous, politics as such. still have that type of peoNo Direct Political Action Well," it but Appraisal is better be trade unions. . The of life, that there way would still be 770 44.80 __ we battle that we face fighting to improve the conditions union movement has made to the American Value 32.65 - that • Intrinsic Trend *___• 1959.. road -longer take the position that wo are just a tiny, small minority Term Trend Earnings $32.00 1958 the the American people. 8% Along Short- Term Trend Intrinsic is movement " ... few ;; * i. ; a :/ jgoing to follow. 1 ■ • . : «f D J I A V For Different Rates of Earnings Growth ; sinners. comparative 7."' ^: 7-—i'' punishing the entire trado union movement because of our ; • off with: the; committees operate should not be confused with stock Congress, to draw up legislation of market forecasts. Price reversals that can be helpful, legislation influence the going to changd."We-Will be ready in January when Congress meets to coqper^te witti Congi*eps, to co-rl( of positive . Recapitulation outlook discernible From the point of view of investment policy to follow, the conclusions, o^ t^is rjeppyt^re optimistic. Yet projections of value 33 growing can come without warning. ' But that. is designed to protect'J&p being investors can afford to be patient uni°n movement. educated to look at long-term . _ , But under no circumstances wijl trends without becoming upset by in the knowledge that value shall xve accept punitive or restrictive the vicissitudes of the moment. ■i legislation prevail. which would have tin? the pro¬ the basis that while level new thinking." value Dow average in 1958. an other no still in progress was than the sheer "power for all stocks. Such assumption would result in personally is for 1958 and beyond based on It may be ra- three principal assumptions share. on had annual an average an in to of men and gods." And private buying done while lot of the recession which is the secular histori¬ speaker to tionalized rate only by frankly /pessimistic a a will slow down and y.... Statistically a more satisfying way would be to extend indefi¬ nitely into the future-the shortterm Vl797^ The Commercial and Financial Chronicle • active po¬ people with their, families const!lute a responsible segment of the? American people, and interest same welfare as in we our has any other have the? country'^ citizen. We know full well that in tho hamper it in litically is because those that toy with the idea of destroying the democratic way of life no one aspects nor present my analysis earnings in the near future. every possible way with represmovement have chosen the po- segment of the economy can make with a perfection I would have A comparison of the earning sive legislation, and if possible deliked to achieve. But perhaps by power line on Fig. 1 with the stroy the movement itself, because, litical battleground. . nlnoflir have progress at the " expense of the They Inpt ttnni * -1 1 i.. A 7 tmmr * short-term trend of earnings on that is the real reason back of this shown us very, very clearly that rest. we now have cleared sufficient cannot hope; to exhaust all i - • „ ground to attempt its The simple-indefinite extension of the line i , n _ Fig. 3 will make it clear how con¬ servatively and almost timorously "oTd^asiiT to*ng-ter7trend lnvo?tor,s have been ap|)raisi"g }',e the most natural of all level °f earning power ot tho earning P°wer « is projections. rIt does not call for any guesswork or rationalization. And as indicated by Fig. 3, it is not unduly optimistic, leaving room, as it does, for repeated and declines severe of current earn¬ ings. This analyst is willing to adopt it as his own appraisal of the value of the Dow average in 1958 and subsequent years, In selecting Intrinsic of 530, Value estimate of our as for which lies 1958, a level the center near of the most recent price range of the D J I A, we should not be forgetful that it is well above the estimated On Market Fig. Value 1, of D During Value. 1958 Market stands at 455. the J I A the early phase of the market, this level was an insuperable .barrier for any further progress of the D JI A. It repulsed with ease ail attacks. But as the assaults were gathering momentum, its defense began to 1957-1958 ; substantial recovery of corporate union , appraisal. an a bull 1CVi;i Vi .... . . - » .. . so-called tion. We year "right-to-work" legisla; ; * ' 77:. .7. are facing in six states this an attempt to amend the . JIA since the end of the World —Constitution of those states to proWar. Fig. 1 reveals how slowly, vide for right-to-work legislation, and at what respectful distance, to provide legislation which is deD _ r ing line cross that of cur¬ profits. And even then this power rent crossing takes place hearer to the low point representing the poor earnings of 1958 than to the high point plotting the better earnings of 1957. Having behind them now the multiple test of three cyclical re¬ cessions encountered during the investors may well adopt a more optimistic view, Seen in this light, the breakthrough by the D J I A above the postwar level on period, of Market its Value based concept of earnings that a may in the values than a speculative mated and 1958 an esti¬ of 455 and everything record a this country that cannot be pared with in Jan. 16—w- 453.25 459.77 458.65 577.1—-- 455.30 7 454*89 458.39 6-___:_: . 453.07 • " __ . 450 13 448 76 455 92 457.27 .Mar. li_j—____ • " ; * " 17 ". ' " 4*u'tn Intrinsic Value. But human minds *)l.xU bt»A 7 : 454.75 - ^ 448.23 457.39 453.86 460.21 457.01 460.56 2 „ , nAAolfitrA 459.56 5 462.38 461.12 6 465.32 463.67 ia aiikic t?i«aiv» liiV»a sensitive to doubts. From time are 453,04 , 453.25 It is significant that the break- * raising their estimate of carhing power and of applying to it a higher capitalizer. This should serve the Mai*ket Value of the D J I A nearer to the level of 454 ' April 30_______^ May 1 " to be in the process 456.80 _ *7 14__7__ - seem 456.83 12 13___ . a tors do '/ opening sentence: "Available evidence suggests /that the economy hit its low in the first quarter and that the . production low April. . . . . . was scored in The ensuing recovery has been amazingly swift. In its Oct. 13 issue, the same publication forea further sharp lise in the sees last Combined with the evidence that factory efficiency is rising at a rapid rate quarter of - 1958. as has such a the leadership of Harry tremendous ,• contribution: under Bates him made . time, the present euphoria of confidence will yield to fears, bringing about reactions of stock prices. One of such corrective phases may be already at hand. Postword: The Price and Value main appraisal of value lies primarily in its application to long-term trends. Many other factors and their interrelations, some of them of an intangible and psychological nature, also exercise their influence on stock prices. Some of the early 1958 buying probably little relation to Much of it came from the institutional compulsion to invest, A great French writer was fond of saying that "necessity is the had value. and , who others preceded of trade* country—it has to the advancement unionism an in the effective contribution to the welfare of the nation itself— that this International Union will be in the forefront along with the organizations of the AFLfighting for a better America. other CIO ,, didn't try to pretend that it cudn t exist. ' , the American We met it head on, and we are With Gage-Wiley (Special to The financial Chroniclh) • trade union movement. ; going to continue to fight to keep ajr„liNoriJMjJ--aamcs SPRINGFIELD? /Ma'ss; — James And still we find people here our trade union movement clean. Knight jJas been added to tho in America who have made up We are going to continue to try to • Gage-Wiley & Co. Inc., their minds and who are pouring raise the standards of the trade ■ ^jr j National Bank Building. jn their money in an effort to union movement, to try to see to . • destroy this movement. ' it that those who serve the trade ' McKendrick, Hasaltine Add Well, suppose they 'were sue- union movement serve it for its (Special to The financial Chronicle) cessful—what would it mean? original purpose, for the very simMINNEAPOLIS, Minn. — An¬ Well, it is quite obvious that if pie purpose of building up the you weaken the trade union standards of those who work for drew Warhol is now with Mcmovement to the point where it wages in this country. Kendrick, Haseltine & Wilson, So this is our problem and we is not effective, then it is going Inc., 114 South Ninth Street. to have an effect on the wage are going to continue to work on it, and I am quite sure that we structure in this country. State Bond & Mtg. Adds It is going to mean weak unions. are making some progress, but we (Special to The financial Chronicle) It is going to mean that the are not going to buy or be perNEW ULM, Minn. —Eugene J. purchasing power is going to go suaded to the idea that punitive NE , down, and if that happens, it restrictive legislation is the answer Gross is now with State Bond & means more and more unemploy-, to this problem, that the entire Mortgage Co., 28 North Minnesota. ment. - * . trade union movement should be Street. ; ' ' * To me, it is rather ridiculous, punished, as it were, because of With Merrill Lynch but there it is. We boast of the the sins of a few. . American standard of life, we We took our position on this (Special to The financial Chronicle) boast of the American way of question some months ago. We OMAHA, Neb. — Forrest E. life, and we point out that the took a position that we would co- Heacock is. now affiliated with American citizen, America's chil- operate with Congress or with any Merrill Lynch, Pierce, Fenner & dren, its workers, have better of the committees of Congress in Smith, 305 South Seventeenth St. standards than any other place on drawing up legislation that would earth; and we should know that help us eliminate corruption from With Ball, Burge those standards did not come as the movement, that would help us (Special to The Financial Chronicle) a gift, that they came from the to erect barriers that would pretrade union movement. vent some of the things that have CLEVELAND, Ohio — William They came because the trade been exposed, but that under no G. Pollock is now with Ball* union movement was able to circumstances would we accept stand up and fight, fight against punitive legislation that restricted Burge & Kraus, Union Commerce the open shop, company unions, the trade union movement in car- BiiUcling^ members of the New company guards and every other rying out its legitimate activities. Midwest Stock Exdevice that they could use.: So insofar as this is concerned, ..... . .. . And I say we'll take this par- the policy of the AFL-CIO is not changes. Tir.iT ' ; ii_ : _ * to point Qf this paper through of such a strongly held was t0 say that the valuation of position occurred soon after the common stocks is not a hopeless business recession itself: had task. It proved possible to comreached and passed its trough. Pute a range of definite values for This fact.was not yet unanimously the most popular average of the acknowledged at that time. But stock market. By using the same optimism -was already mounting principles of valuation; appraisals in many iquarters. As early as can be made for any other averJune 16, the .Standard and Poor's age, or index, or any individual Outlook, in its .section of Trends stock. and Projections, had the following jbe practical significance of an ^ membership, corrupt people in the Corruption Issue com¬ other record any some Well, this is a subject that the AFL-CIO has had before it for some time. This is a subject that the AFL-CIO did not duck. We didn't duck away from it. We of achievement in Feb. .4— to . AFL-CIO Has Not Ducked * The trade union movement has made Market Value are ^ High 452.16 2— . entire trade union movement, anti-labor injunction, the company else. adventure. the must be restricted because there 1920's, against the "condoctrine," against the spiracy like lying have r 7 So and the labor spy, basic reappraisal of under- they nation covered. union shop or the closed have proved too timid, locks more a until ,7'"/ : stronger TWe are going to continue? just as we fought against the to rfipp entirely; ' "" " " try to make democracy work a other methods they used, so we That fight is on, and, of course, little better. must fight in the political field, we are engaged in that fight. We are going to continue to try and I am quite sure when the chips to raise the standards of life off are down that we will do as good Recalls 1920's Anti-Unionism the American worker, and we art? in the political field as we have* Locals throughout the entire going, to continue to try to do done on the picket line or any country are making their con¬ something about unemployment other place. tributions, especially in the States which is a threat not only to tho Now, in connection with this, we where this thing is on the ballot trade union movement but to tho this year, and we are going to have another subject that comes nation itself. > ♦ v continue to fight just the same up to mind. That is the policy of the AFLPart of this anti-labor campaign as we have fought ih the past, just the same as we have fought against is predicated on the idea that la- CIO, and I am sure that this Inthe so-called American plan back bor must be curbed, that unions ternational Union which has ma do out the corresponding Intrinsic the world. There is no trade union Value of 530 is quite wide. It may —movement in the world that has Close not yet have been securely bridged made the progress, that has de446.91 by recent price advances. Inves- livered the goods, at it were, to its 445.23 Dec. gQ we have c0me to the conelusion ; that the things that we advocate for the good of the coun|ry must in the final analysis be? for the good of all the citizens off ^le country and our members in partiCular. 7 7 ' a^°tos,cit"that is try towe are America why make g°ing continue of actual earnings. Not until the 1957-1958 recession does the earn- Still, the gap between and Its Rise Above Market Value : they can set us back, they can hamstring us,/they can impede our progress by legislation. They did that through the TaitHartley Act, and they have don^ it through right-to-work laws ana they are continuing to try to give laws weaken. Culminations of Advance of D JIA .. movement, _ . „ .— _ . r The Commercial and Financial Chronicle xxm i i* the 3%% for 9 Continued from page a Government Debenture defaulted FHA bearing banker the a higher interest rate. Financing the Replacement Fleet bonds at interest rate of 4.40% an 4/10ths of 1% above the compar¬ able Government maturity which postponing its financing in is in line with the new issue pre¬ June when it was unhappy with mium shown on Moody's chart. a rate of approximately 3.75% An interest saving of Vi of 1% which the investment bankers felt would be necessary to sell the on a public issue of $10,000,000 same security at that time. Since 20-year bonds which has a sinking the financing of the replacement fund resulting in an average life fleet will be spread out over 10 of about 12 years, would amount to 15 years, a company should to approximately $300,000. This obtain a fairly average cross sec¬ saving is offset in part by the tion of available interest rates if substantially higher cost of selling it does the financing for each the public issue. The expenses of ship as it comes along at various a public issue of $10,000,000 would intervals during the 15 year probably run about $200,000 but well be reduced as the period rather than trying to out¬ may precedents are established and the guess money rates. large legal expenses incurred in ) A chart, based on information after furnished by Moody's Investors' Service, shows the variations in the yields on Aaa corporate bonds and U. S. Government Bonds over the last several years that newly and the fact issued corporate bonds interest rate Oif y2 of 1% over comparable corporate bonds that have been outstanding for some time. The generally carry Government an for selected Bond comparison is the 3*4% issue due which 1983-78 closest the is maturity Comparable to the recent Grace new true in the Title of issue The issue case XI Bonds. premium is also of newly issued Government Bonds Witness the as connection with clearing Administration time agencies the the for minimized. first time are offering in example given would have approximately $125,000 less. ment It market. draws a issued Oct. 8. In periods of rising both on preliminary count purchasers and ranged were over 400 that the amounts from $2,000 to $500,000. They included individuals, small prices, it is often necessary to pricC a new issue substantially insurance companies, small trust small above the then banks, pension going rate of accounts, traded securities of similar qual¬ funds, college funds and at least ity. This is due in part to the one State fund. fact that a new issue doesn't enjoy The bonds were given the high¬ known as seasoned a investors must be induced to sell an y<- to for the pay ... ., . ' , , Public < t of advantages which should be weighed by the prospective bor¬ in consultation least Aaa, by Moody's and leading investment service suggested the one advisory '^purchase '"of the its bonds accounts. with broader a .... offerings and private placements each have a number rower rating, at his issues. It to This public acceptance Fublic and Private Placements . est new 'of carrying the higher rate. one t bond old distribution is several indicated should lead to anticipated that funds and who others required by invest substantial a law or policy portion to of their funds in Government obliga¬ will be substantial buyers tions State's rate a Grace financing of 4Y\% compared with the historic rate of 5% (in a few cases, 4%%) for the over $235,000,000 of Title XI Insured Mortgages placed privately to up this time. A major reason for the differential of known % of Grace 1% is the and name its long established operating record for a large fleet with regular trade routes compared to the unestablished single ship operators that have XI previously sought Title financing. The other reason for the rate of differential is the lower approximately y4 to %ths of 1% normally commanded by public offering. that reasons a a The principal public offering normally commands a lower in¬ terest rate are the broader offer¬ ing the and 'resulting broader marketability factor which permit the investor to resell his bonds at any time. A trading market in bonds was day by established the Grace on the first of the large Govern¬ houses and they were traded today at 101 which means one ment bond a1 yield that over of 4.17%. I am advised the jvolume of trading was 100 bonds on Oct. 15 which indicates view U. S. of a obtained are from each Attorney General. The Attorney General gave an opinion last May that the Govern¬ recent carried well once ment The the relatively small of the original issue. The Interest rate of 4V4% was in size initial about private purchasers placement /v; generally Insurance the equiva¬ Government's obliga¬ tion fton its interest bearing securities. The Comptroller of the Currency also issued an opinion in August that bonds insured lent of was the under Title XI eligible for unlimited investment by National banks Title which XI investor intends to hold the bonds have issue is willing to sacrifice marketability for a higher interest rate. Our, experi- been possible, in because; of a. the holders -v • The investment- has an1 will - prepare \ / v banking - firhi experienced with staff-which the in effect the U. S. gave the status same Government large the number - Covering Forward Commit- (1) sophisticated bondholders' than it i is is possible in the placementto private firm commitment construction ease of to consents secure bondholders. a a - Role lenders, if management a private placement,;- on preparation of >ipubifc? goffering circular' if it'decidefKfo : ! public r°ute- Irivestfnerit > , R entered*; into for the tutional firomthe; decides f™^??r"idely a time is contract - obtain the at , ^vestme^ Banker, bankers closely' with work the r Many people have asked' about ^lrm s commercial bankers arid in!:, the functions and uses lofiihvest- tman^;.ln^tances:have worked 6ut ; ment bankers in co^porate-Kfi-hanr-f' combination financing programs * cial planning./ Some- thipk i 0f -involving both short-term loans ' bringing in an investment banker :rhy ;|he 7 commercial banksand only after the decisions have' been long-term loans by-institutional or costs. Commercial banks have" made, whether for .privatejplace--' Puhhc investors, -t'-> made many construction loans in ment or public offering. Naturally; Our experience prompts me to this field. Most of these banks as an investment banker*who has1: encourage, first; covering forward require that the borrower have a participated actively'in this-field,' commitments well in advance take-out commitment at the time my viewpoint may . be somewhat and before necessitv forces the of delivery of the ship which will) conditioned. Nevertheless; there; issue, and second, to do the fienable the company , to pay off are many definite advantages to naricial' planning early, taking the construction loan. We have taking investment bankers .unto advantage of the cooperative and' seen enough of the tightening of one's confidence at an early stage .confidential advice, available credit in 1956 and early 1957 arid of financial planning.U:.R .' : ? • through commercial: banks an'd ' again at the present time to inIf the bankers are' experienced experienced investment bankers.! •*' dicate that one is not always sure of the actual availability of the ^ '■ ' ' money, at realistic rates, when he Conttnwea from first .page < £ 4 , iri needs it, let alone the terms on *r t. •J'IV cast accurately the actual money ' - , which is be obtained. can Investors ' ' - (2) Different Classes of j S -S'-.-j'..:- • While the of the . issue V dogmatic statement praises ""two .variable .dividends, I have taken timely questions: (1) Whpt does' the period from Jan. 1, 1922,of money in the public the record actually// shpW? land; down to date, with rhore precise source a recent Grace for market Line public has class a indicated of security; (2) has there been-such'a fundamental change in the invest- which many investors consider the of the tion, well shipping industry. In addinot all borrowers are as known the as major sub- sidized operators. An institutional investor is able to turn provided by the-list make investigations of stocks the Standard • &^Poor's* 90Composite IqdeiO against Stock indeX c 8 11 a b solely on the Government. guarantee. A loan that may not run to or risk some which on that the there lender is , between Public Housing Author¬ a Title XI Bond is a ity Bond and must °f in of case default on the latter, the Government is obligated to pay the entire principal and interest to time the event lender in cash at default, whereas, of in of the local Government is obligated to con¬ tinue to pay to maturity. In case of a default on an FHA Mortgage the Government substitutes a hiSh-quality, non- pattern interest races of high the lender might be in the position of the 5% rate it That having to accept is to the price for than, rnore dividends. regular say, common stocks long-term as . ■ . ? , is in the era" new There may be 90% ratio, considerable logic bGt td'the notion that investors will not jong treat ture as virtual a growth in jn each case, is certainty dividends only a a fu- whidh, reasonable expectdiipn 01 a poieniiai real-' a Potential reaiizable .at an indeterminate future expectation of / date. ; since ^ . extravagant discounting requires the support' investor behavior or excessive speculative participation jn the market, its duration is al- most bound to be relatively short 2 yield the same as,' or less Tf js not snrnri«?rnff: that in the established-t i ,;r. fLl 1S not surprising mat in me record of earnings will be able ^an' Preferred stocks. t^Vhen this jast 36 years, the return on comto obtain long-term Title XI fi- kind of confidence nr.; optimism mon stocks was 90% or more of nancing in the private placement: does not prevail, the reverse sit- +hp rpfum nn nrpfprr^H may be operators that other with, well knowii, wjn an + ... Confidential of fidential memorandum by ■ , this relationship tween the valuation be- of fixed and • private placement ally prepared for incurring - dhe. .risks associated with variable common study Treatment Information a return offerto8.' stock payments. To Ste because of the low rate. the is a con- of time- Th-we four occasions, totaling 99 months, jn 1 See the aut-hor's v . article T. , "What Yield A°,„^ reasons 1955> behind ra(jQ this choice. are ratio now of (.omrnon raU° " C°mm° was less in the than fourth to oreferred ? C stimulating discussion of speculative influences in the present market, fil p'pn 15'16 ur^o^.Tthe' the We 0£ these periods, with the todayV see gener- investment which 90%; 2 For ^ re^t L Uati°n WiU be trUe « institutional'W?1 deI"and a boI\!^ although the large buyers that normally purchase private placements did not partic- In periods below or .well-assured, Now that Grace has established (3) in ... magic there ^ industn|l\ preferred ... . K fng.t0 bf in will-,pay as much ,ot toe an upiv^dirdc^10n» investors 0f irrational with single ship corporations and record of established earnings. ,as» 3%% Debenture for the Mortgage rather than pay the mortgagee in Thus, ,o of the later 1920rs. n0 have Public Housing Authority's inability to pay principal and interest the .mo „ £ant appraisal of the ' c^sThis pi ovides a . direct comparison of the price investors s . no a beginning+ but - not the extrava- the rate of return provided by^my case Housing Mortgages. The only substantial difference • (in ± this whether the ship can be operated maturity the equities representative a common of the less known operators to determine necessary have been marketed for a number of years such as Public anteed observations.; from of 1926. In the.; middle l920's, ment situation frorri^ those ye^rs common stocks typically provided in which the record, waff compiled>a return equal: to about 90% 6f that the lessons drifived from it the return on the group of highno longer apply? 'grade preferred stocks. This re; For a variety of reasons, ! have fleeted, presumably, confidence chosen to measure the rate of re- in common equal of a Government Bond, the public market, may not be adequate to meet all the requirements . Authority Bonds and FHA Guar¬ • borrower involved. paid over the years-Tor a enforce the guaranty, is less atr foliar 0f variable dividends with hoped that Title XI Bonds tractive and, therefore, requires a will compete successfully with higher interest rate. As indicatedpnee paid for a qollar O| fixed; certain other types of guaranteed above the market to date has dividend income. . Obviously, :if Government obligations which shown that the large institutional-they feel that the variations are the ou* Plar,s, in broad /outline and in' ; public It is the are goippJexity. the necessary background memo-1 of bond7 randum to form the-basis-for a If ;it;bf&6mes financial: decision. This memeence has been that Very few necessary to seek amehdments at. randum can be reshaped for use purchasers of private placements; a later date it is easier andTess either as a * confidential memo-5 have resold them at a later date, expensive to negotiate with $ few randum for presentation to instiand - obligations. that confidential, expertsounding boards .against which one can throw, the many •' Questions that arise in working fl^at have -been , are Bonds direct as bankers dealt with in other brjvate place- ments, have often been .able to work out terms that'.would-not . may : Investment money. market. operating ,problems Investment r o w e iv various situations until maturity and principles of which aPP^e<f t°a particular problem.; .^cy ^re in close touch with-the Maritime Administration end the whose to suit, f>eriepce m other types^of.financ- ; bankers who have had experience with the requirements -of >. the participations may range from $100,000 to $10,000,000. Generally, this class of cash. very active interest the peculiar of the b o r \ involves from 1 to 15 institutional are opinions able < of tlio Advantages of a Private Placement A of T»mi«*"«•£%a;'sitaation/They cab ••alsa e*otiatedTe^.:- v. '-S1V?_the benefit of -their exr A ; State Among the advantages of offering are: (1) Lower Interest Rate Obtain¬ Some knowledge P'e^-n<3Jelpespecially a Set -U£ tailored program placement ^ ■ the this class of security becomes better known and the necessary public objectives of Title XI Insurdistinguished from straight Merchant Marine. later on investment banker in the light of the particular business situation. a news- In a private placement, because of the limited number, of* piirGovernment loans has been to chasers, it is often possible to create public interest in the U. S.;.negotiate special terms'. to " meet It chasers of the Grace bonds is not interest rates and is offering publicity in the purchase of the bonds large and small investors who are upon delivery of the ship. This unable or unwilling to participate assures the ship operator that the in private placements. While a money will be available when he complete analysis of the pur¬ needs it and permits him to fore- indicates that there market and in part to the scarcity of money which means that some the use background f and ance as (2) Greater Source of Funds Generally speaking, the public market provides a larger source of capital than the private place¬ yet available what also of'their the benefit bor- the class of buyers who may ; /4V Grace's facilities. One of.•(4? a ship financing, they give you can ProJecie? operating figures. Many .Maritime Administration or otherco™pames object, .to public top Government agencies-; have received'beca"f® J* re<*ul^€d"'approved in particular instances of and magazines and estab- papers in the field of lenders giving background :in- offering tL Grace recent substantial lished services ,™bUc a necessary ments Well in Advance cost new declining bond other and A private recent spread of almost 1% on short-term Government Notes the various documents with the Mari¬ and rowerby presentation solely to Thursday, October 30, 1958 formation on the comp^y lnclud-r vvhat other cofripanies have done similar situations,: what :*he; : v / . Public interest is created in the product And the Investment Banker's Role the (3) Public Interest for institutional ..« a Graham's "The New Spec¬ in Common Stocks"?, The Ana¬ Journal, June, 1958, pp 17-21. Benjamin ulation lysts • ■« Volume Number 5790 188 . The Commercial and Financial Chronicle . . C1799)a 'tyC 35 i Stock returns just behooves under 80%. -It 'pened to look at' what us hap- after the previous three '}; "**'T y! v.? Such periods:?-~ (3t <4> Jun., 1957 To From '. On Extent. ' (21 1929 Jun., 84.7 1932 Feb.,. 1934 Mar., 1935 25.7 r:'. that equity money is reasonably Feb.," "1937 Mar.^1938 45.4 • generous (to date): Augr.v 1958 to -the present relationship reflecting the supply qf equity money yield 6 months to Sep., 1957 and priced, all things considered, there could persist a new and different ' >• otfier hand, the Sep., 1927 to Nov., 1929 and Sep-., demand : situation in the stock market has changed."The greater if corporate management is still not convinced -Decline in Stock *Duration " N • .■ Jan., -1930 to June, 1930 31 months May,. 1933 to Dec.,, 1934-19months Jun.-, 1935 to May, 1937^23 months Period (1> stpeks might again come close to rates on fixed-income securities. relative to the modest demand. availability of funds from genuine investors, not dependent on bank credit, is undeniably a new factor, Unless business organizations increase the equity portion of their financing programs, we have the basis for a new alignment of yields. While I believe that some Profit-sharing, stock purchase, and increase in equity financing lies era" savings plans are also swelling the •;v Fear of Inflation ahead, I cannot demonstrate that 1928r1929, the monetary, total of funds available. A poten-; Many * ■- qualified'f observers be¬ either the immediacy or the size inflation fears of 1933-1934, or the tial future, source would be the lieve that present yield relation¬ of such a change is going to en¬ "p:annecx" recovery 01 writing o£ variable annuity conships no longer have their former large greatly the demand for Such is the record. Whetaer th? counting oft the future Will same. it the be were not in he 19:7-1958 intimidated that dif-. not so we by the tracts this;: Financial 'intermediaries same time? Or is the situation ferent byT leading life insurance " the:;.comparties.%" r4}.;<?• extravagant;., dis- need dusty records of the dimming past? Tne answer to this question can ma- much common; .more stocks than 25% significance" because of that of inflation. provide far we hold; Even of ?all outstanding, but live in though from perfect of erosion their share is .gradually increasing?" of the Trusteed pension funds, for ex- stocks the fact against protection purchasing power dollar, it is believed that the best available hedge. ample,, owned about 2.15% of the Accordingly, one may not seri¬ terially aid in the solution of to- ' common stocks outstanding at the ously object to the necessity for day's investment problem. end of 1957, but by 1965 they couldpaying a premium in the form of a i A reasonable approach to find-; readily .own 5% of the total. In' ing the they the an age are lower immediate nn would for pro¬ return to the same period of time, mutual' tection fro»~ « hazard of indeter¬ princi- funds could increase their owner-;, minate ; seriousness. Stated ar pal arguments or reasons for be-fship frdm just over 3% to 6% or* otner waj-, u..c may observe that keving that :."this' time it's dif-;.7%. The continuity of this kind of be answer examination ferent." These appear of the seem if the fixed dividend return is ad¬ to- revolve/ buyirigr provides an underlyingjusted for loss in purchasing power around three principal ex plana-; strength to the market which may over the next decade, it proves to tions for the generally recognized? well *ericf to'-.tiarrow the range of be quite inadequate in real terms. fact that; corporate earning power fluctuations during recessions ofThere is probably no more com¬ is being valued today at avverythe JL957-1958 Variety? Such eviplicated problem than this ques¬ generous price: V;/?.; \ ,f;t>^?.:.!.^^cfences of;greater stability will, of (1) The long-term}course, "tend tb attract favorable . even more funds.to the equity markets. ?. • (2); The supply of and demaiid? Invcohtrast to this burgeoning for funds situation in the stock supply of} equity money is the market. : •}; -; V} sluggish demand for it. Net new v. (3) Fear of inflation. ;issues of stocks and securities con.; '' " . Avertible into stocks have increased : Outlook for Profits * "only moderately despite the ur-} An -optimistic view;.of the out^ gentdfthxphd fpr long-term capital, look for profits can be supported The most:coipmbn explanation's by the breadth and vigor of the ob.viobsly not,the whole story., It current business recovery and by is usually; said that the deductithe prospects for growth inherent .bility of interest payments for corin bur dynamic economy. The out- porate income tax purposes makes look is definitely favorable, yet debt forms of financing so much even; the optimists expect that less expensive than equity; Sink1959 profits may not exceed the ing fund flyments arc not deduct1957 : level. Adequate coverage, of ible and, other covenants may be current dividends, rather than sig- restrictive . on the flexibility of nificant increases, seems to be the financial management. High perreasonable expectation for next sonal incbrrie tax rates encourage year. Validation of the present equity:f.inancihg through retained level of stock prices would depend earnings/but the new institutional upon' the assumption that the holders have no such objection to profits, .• ......... .. ,, ... us . be a decade indeed.: prosperous projecting creating. /importance as mutual objectives and hopes into the dis-. fuuds and vpepsion trusts become tant future as though they were realities is neither more-active,^,,the field of equity new ;h0i? differ^ , v . ' • .: previous periods -of exPerhaps the principal reason for travagant discounting of the fu- the reluctance of corporate man-' _ erit from tU|*jE. In this respect, the present striking resemblance to all bears a agements to, sell equity securities is the /dilution" problem. In this probably widespread and deepseated than ever before. There more be an unwarranted assump- may fears a On the future. This is a familiar } sober,> realistic *" view of the enthusiasm facts does not, support for stocks at current tection tion ; prices as pro¬ against the kind of infla¬ have been having. But , we a practi¬ remain the only of investment available range of investors for this is not conclusive. As cal matter, stocks large to a area wide and At this (ie., more than 10%) above price paid for fixed dividends, differential Under existed the circumstances, how- one well this fact of life contributes impor¬ not interprets past experience in the light of present conditions, there is no adequate basis for concluding that stock prices are bound to collapse in the near ever, future. No doubt, In point of fact, one may are only at protracted period of high valuations for good stocks. We could be in the early stages of a major bull market argue that the beginning of we a previous periods of confidence and period of persistent pressure on tantly to the supply of funds in optimism; The unusual aspect of profit,Jjoarginsj it has been diffi- the equity markets.' the present sentiment is: that it cult to maintain the rate of return .^Thus far we have not had wide¬ which could last for several years was generated in the fourth month earned pq'the equity without libanci even include an explosive spread public participation in the of recovery frpm the trough of the eral; use of the leverage provided preference for equities as a hedge phase before it runs its course. recession, instead of in- the late by borrowing.. Widespread confiagainst inflation. The savings sta¬ alttrn+atlyi1 stages of a protracted boom. Fur- dence in the outlook for business tistics clearly show that fixed possibility is that the market will th'ermore, this has happened just has calmed the fears regarding dollar thrift arrangements are ex¬ be characterized by greater soafter V corporate earning povver debt which existed in former peperiencing vigorous growth. The bnety in the months ahead. This proved about as vulnerable as riods. " Company attitudes have fear of inflation is obviously not would be the result of several eVer to an average swing of the been similar t0; investor sentiment uppermost in the minds of most possible influences. business cycle; in reflecting the belief that comfamilies, judging by their current (1) A greater volume of new The argument that present, mon stocks will sell substantially attitudes about incurring debt. equity financing. prices are justified by the favor- higher over the years. Why should Rather the inflation psychosis has (2) Increased recognition of the able business outlook so that we management dampen this bright been localized in the numerically sluggish trend of corporate profits. can ignore the lessons of experiprospect with a shower of new small investor group and in some (3) A subsidence of the more ence seem unimpressive. We can common shares? corporate managements. Will it irrational components of the presargue much more effectively that < But there is a point at which, all spread? Is the threat so real it ent inflation fears. the market is already liberally things considered, equity money is will become recognized widely by I happen to believe that this discounting: about all the improve- not high in price. Are we not close savers? Only time will tell, but shift to greater sobriety is the mCnt that can. reasonably be exto that point? If the growth in there are good grounds for believ¬ most likely outcome but obviously pected in the next several years, earnings is anything like the esti- ing that the current wave of infla¬ I do not know what will happen Surely, \v.e must find other mates of the optimists, the "dilu- tion fears will subside in the in¬ and my guess is no better than gronnds if we are to ignore past -lion" will be only temporary. It vestor group without being widely yours. ; experience with present yield re- may Well be,-therefore, that we communicated to others. laiionships. " shall see a gradual shift in corpoImplications for Portfolio This Time It's Different? ; : : rate financing toward a somewhat Management The Supply and Demand higher proportion of equity. Even What, then, can we conclude on Whatever you may conclude as . Situation . a modest change could completely the question of Whether this time to the outlook, there are some At one time or another in every accommodate the generous supply it's different? In facing today's bull market, there is talk of the of equity-money. Thus, while the investment problem should we re¬ fairly specific implications for to¬ scarcity of good stocks. Certainly present supply and demand situa- spect or ignore the warnings day's portfolio management poli¬ tHe situation has changed dras- tion favors firm and rising prices, which have been reliable in the cies. Common stocks are neither priced nor grisly tically since the early postwar; we are at or close to the point past? What is new and different attractively They are probably y^ars, during: which there was a where: the attractions of equity about today's investment environ¬ overvalued fully valued as best we can judge serious shortage of equity money financing are such as to induce a ment? The preceding discussion with our imperfect measuring de¬ because only a trickle of institu- more active demand for funds, may be summarized in these terms: vices. In a growing fund, such as tiqnal funds went to stocks. With * If this is a reasonable concluIn the first place, the supply and a pension trust in which orderly pension funds, and investment sion; we can logically expect an accumulation is possible, there 3 For a good brief discussion of this companies steadily enlarging* the end to the process of the upward scope of their participation, the revaluation of corporate earning subject, see "Some Observations on In¬ would appear to be no reason to flation", memorandum prepared by the hesitate about continuing a longmarket for equity capital has a power which started in late 1953. Economics Department of Bankers Trust range purchase program. In an plethora of funds at its disposal. The current return on common Company, Aug. 4, 1958. . , ^ pects a recognized already are in . The first public distribution pf stock of the Chock Full common O'^uts Corp., a restaurant chaip. V and coffee company,. was made on Qc^ through the offering 400,000 shares by an underwriting group headed by F. Eberstadt & H Wfls quickly oversubscribed and the books closed. : The the , .. .. .. which stock, of account was sold for William Black, President and founder of Chock Full O'Nuts Corp., was priced at $15 per share. None of the pro-v ceeds of the sale will go to the company. An additional offering was made by Mr. Black to em¬ ployees and officers of the com* ; pany. The company roasts, packs and distributes the Chock Full O'Nuts brand of coffee and operates a chain of 26 counter-service restaurants located? principally m *New York City. Two additional restaurants are : scheduled fop opening within the next month op long, nor is. it extreme. .*?We have recognized that both the supply of: funds and the fear of inflation are operating to continue two. this relationship. The possible capital growth and hedg¬ inflationary threat. has for ing against the unknown extent of the there greater consciousness of the fact that favorable pros¬ char- acteristic of all bull markets The A should be hand, there is different about the liberal discounting of the longer the ing onj this point. of in¬ program. In the appraisal <Uvidual securities, too, new or ally v risks now incurred in*, aggressive stock acquisition other nothing earnings. test the ability of corpo¬ improve real Certainly the record of the last few years is pot reassur¬ the greater buy and hold equities is likely to remain very strong. of rise in living costs increased of has been awareness Son aTtSthe Sbmty"oTcorporate current prices The: realization of managements to increase profits A168® prospects will not be so under these conditions, yet stocks JWh a reward for the decision are the only practical hedge for to purchase as it will be a mere most investors. The motivation to validation to the price paid, tion may liberal payout, This phenomenon of Secondly, the expectation of in- hopefully his and dampened an flation in the minds of investors is rate managements to policies. Likewise, ''>7capital gdinsfaxes must be ofde-5 very future. point, it is useful to return to the starting point of the an num.3 This would allow for yield relationships because they some years of comparatively sta¬ provide a tangible, specific yardble prices as well as years in stick for measuring the market's which the rate of increase could be appraisal of corporate earning substantially higher. < Considering power. Fof the relatively short the profits squeeze that this kind period of six months out of the of a cost-push inflation produces, last seventeen, the price of varieven this moderate pace of infla¬ able dividends has been materi- .. will current which is unlikely to exceed 1% or 2% per . 196C's near unlikely to persist for long periods of time. The plain fact that a dollar of income today is worth inflation are well grounded or appreciably more than a dollar grossly exaggerated. Without at¬ several years hence may be overtempting to review all of the fac¬ looked at times but not ignored tors here, it is my opinion that the indefinitely. preponderance of the evidence What May Happen? suggests that we have in store for of .whether tion outlook for corporate funds in the ^ personal trust, also, it se'em ' reasonable".to, buy' stocks, along with fixed income securities, in proportions appropriate to the fund. ; T This sounds like ''business as usual," a simple reaffirmation of the policies widely advocated during recent years. So it is, except that the warning flag is flying. The enthusiasm of this observer has been materially , of + individual motive power was the "new result's . Wotild madness of the n r , coffee is dis- company's tributed in the Nev^. York City metropolitan area and in 12 states ^as£ernv?ea ^ O Nuts has become the third largest-selling brand of coffee £ex<jJu<*j.n£ grocery chain brands) J? ^lve ^ears smce incep-», • °J?; u .. ^ The growth of the company has been financed out of retained 5ariiln^u a n0A^,' 110 dends have paid on the J01^11!011 directors intend to establish a policy of paj^ *ng quarterly dividends and to ■ u declare an initial dividend on the stock of 25 cents per payable December, 1958. Pthe ended Jul 31 common For 1958 total ^ of the net saleg were $24,634,177. Net income taxes for this period was after $1^13,076, equal to $1.64 per share on the common stock. The net saies for the previous fiscal year W€re $22,135,849. • " " . - ' « Pianicti i/irecion Geoffrey R. Mellor, a general m t inv^stment firm of W. C. Langley & Co., members of New York Stock Exchange, has been elected a director of ttie Western Development Co. of Dela¬ ware, Mr. it has been announced. Mellor also has been a di¬ rector of Missouri Kansas Pipeline 1937. Company since r ; _ Joins Herman Rousseau (Special to The financial WORCESTER, Pal.e has man Chronicle) — Albert staff of Her- Mass. joined' the Rousseau> g Flagg Street, With Jamieson Sc Co. (Special to The Financial Chronicle) MINNEAPOLIS, Minn. —Bruce E. Petterson has become con- nected with Jamieson & Company, First National Bank Building. 36 The Commercial and Financial Chronicle (1800) Continued from page and Responsibilities Free World Progress American laws. The worst exercised with immu¬ budget, and to stop further mone¬ nity in our country is presently that of labor unions. Besides, the tizing of government debt. Our country has already become labor unions do not hesitate to have recourse to intimidation, a high cost and high living coun¬ violence, blackmail to obtain their try which may well undermine "■ progressively our competitive 'goals. reduce to decide we labor bad of govern¬ monopoly expenditures, to balance the ment . Thursday, October 30, 1958 . organized labor: "If our free, com¬ ally conflicting trade policies. Our is not petitive institutions , 5 are to be pre¬ by the recent enactment of quotas on the" for a good and sound substitute experience arid imports of lead and zinc are a wisdom. But the best way for us unholy combination of predatory good example of our inconsistent to help under-developed countries gangsterism and crackpot social¬ actions.1 Yet we have made great is to liberalize international trade ism that is thriving and expand¬ advances from the pre-war regime and to prevent abnormal swings ing under labor's Congressional of stagnation and trade warfare. I in our business cycles. The sound¬ benevolence, then business has no believe that the largest number of est and most effective way of choice. It must do likewise (par¬ American businessment have fi¬ spreading well-being in the world ticipate actively in politics), or nally accepted the idea that we can and the benefits of technological throw in the towel." export only if we import. Unfor¬ progress occurring in the indus¬ tunately it took many tragic years trialized countries is freedom of Controlling Cyclical Amplitudes to reach this point of view. The international trade. intelligence, destruction from served as . ' ability in international trade. Un¬ til now most of the countries in inflated their the free world have the about to systems currency degress as ours. However, I believe that henceforth most of same compelled these countries will be Berates Business and Labor of our big businesses in this field is consid¬ erable. They set the pattern for the wages in the entire country. responsibility The shameful to see at times big It is and business unions labor big their monetary affairs discipline for the fol¬ agreeing on increases in wages followed immediately by increases lowing reasons: To avoid balance in prices. This is a conspiracy: of payment difficulties, and be¬ against the welfare of our nation.; cause their peoples have become The recent contracts between the weary of inflation. Should the automobile industry and - theEuropean countries decide to stop further monetizing of government United Auto Workers are hailed as non-inflationary, while imme¬ <lebt, our gold and currency are bound to be put in jeopardy if we diately after the signing of the con¬ continue to mismanage our mone-»! tracts it was stated in Detroit that to manage with greater consumer prices on medium and priced cars would increase ap¬ proximately:; $50 due to higher lary affairs. low Inflation Means No Protection It is unworthy of great a coun¬ costs. annual automatic increases The try like ours, which has made such- invaluable contributions to human, in wages and the cost of living escalators are especially pernicious progress and civilization, to be-* have all of a sudden as if our peo¬ to the welfare of our society be¬ blind or castrated. The' cause they protect a large segment Jack of will-power to reinstate the of our population against the con¬ dollar on a sound basis is a dis-; sequences of inflation. Farmers in their turn are also protected grace to our great nation. You and ple were against the evils of inflation by every day under the pen responsible individuals that in¬ the parity formula. Those who are flation has become unavoidable, hurt in the process are the nation and that we should protect the as a whole, and many segments of I read of value of savings and the pur¬ chasing power of our income by taking inflation as a fact of life. our " The truth is that playing with fire. The question is not whether you and I can protect ©urselves against the consequences of inflation. There is no way of protecting everyone against the consequences of inflation for the simple reason that inflation con¬ sists precisely of cheating some people for the benefit of others. The truth is we that are have we choose between inflation dom. We shall have shall rency or we The distrust in ment bonds has to free¬ sound a cur¬ being free cease men. or our govern¬ attained a dis¬ quieting stage. Secretary of the Treasury Anderson appealed the other day to the patriotism of the managers of trusts, pension funds, etc. to buy bonds. With all due respect to him, because I like him, I submit that this is not the remedy for right predica¬ present our population, including old per¬ sons, and people who save and our increases in productivity, inflationarjr pressures will still be released, since wage patterns will have been set for employees in industries where possible productivity in¬ creases creases are smaller or non-existent. acute. fairs in such a manner the purchasing government manage and bonds a sound investment. Let a sacred duty of Whether ers ours to how human shall we solve second successful operation of ciety is forces. the A free free a social consequences departed from funda¬ a us. the 1929 which consisted of free so¬ largest part of the benefit of in¬ in creases consumers, economy giving the productivity to all the while the smaller part followed by able deterrent of economic prog¬ ress and a great danger to our which breeding inflation and wcial a went of by busi¬ and economic a consider¬ system. i to increases in wages We have adopted abnormal are We have anti-monopoly laws against business, but unions have a strangle-hold on our economy because Bill Martin, in men are increases in increased detrimental to our a and policy our one of the most able country, that the best as ,.The Gulf Oil Corporation in recent letter to its a employees and shareholders had this to say about S. Summary Act by the welcome sign leadership However, forget how never Having outlined the four main in progress to stress the small minority represent¬ ing high tariff interests almost succeeded in destroying our trade " program. Tariffs are a difficult question for many businessmen to take bold a stand of group the free fered world that have should we su¬ said among portant than that of a sound dol¬ Fundamentally the; issue of sound currency is one of morality. There was a time when the: big lar. of the western world giving the small countries an example of good behavior. Unfor¬ tunately we can't say as much for suf¬ the policies of our governments We have foregone dis¬ cipline in monetary matters, just; prosperity. V in passing, I am not certain amount of aid a countries to that is more im¬ were as we have become accustomed to in tackling problems. We need to; deal with the issues confronting us—not piecemeal—but compre¬ the in use of expediency most of our need, and some assistance to speed economic de¬ perimposed a credit inflation right velopment in the so-called under¬ on the heels of a money inflation due to the monetizing of debt to developed countries. The process of economic growth in an under¬ finance the war. While it is true that the amplitude of the business developed country is a very com¬ cusable none almost unthinkable blow, nowadays. an to their unity and Be it have more once these conditions countries on, but if a businessmen had would conditions for economic in a free society, I wish necessary we this even year artificially over-stim¬ For instance, it is inex¬ opposed to ulated. hensively,; with all the earnestness they deserve and require. It is late, but not too late. It is still plex problem. It is very easy to my hope that our great, country cycle depends a great deal on cir¬ cumstances and fiscal and mone¬ squander money in. useless and; and nation will live up to its re¬ uneconomic projects. Dollar aid sponsibilities. r ' r-» . ; r v ' ' tary policies of the government, it true that the is nonetheless themselves nessmen can busi¬ make a Continued valuable contribution towards the from page 5 units, "Ward's operation of a steady economy. It would be for the best of our coun¬ try if at times we showed restraint. instance, I for one can find for a ; policy which makes it necessary to produce For excuse no and seven biles one a half million automo¬ year, producing commodities. The raw American recent recession has strongly affected those countries. It has created unsolvable prob¬ lems, and always, demands fo" as America, leaving aside the ill-will towards our country. I aid from simply to say that the mis¬ mean management of our economic af¬ fairs has considerable impact on the of rest the world cannot disregard. which we that of our good international relations that we manage our economic and monetary affairs the with powerful monopolistic in country. Now, in the a society is that free liberalize can trade we between the increase at peak. time when public interest in autos is at its a This trade weekly observed that only limited activity, seeing would week total an with General Motors plants United States production the past 69,599 estimated cars contrasted to 45,387 and 104,987 in the corresponding week year ago. With General Motors at full strength, output would be well over the 100,000 mark, "Ward's" added. However, boosting schedules during the week were Ford Motor Co., Chrysler Corp., Studebaker-Packard and American Motors. Most of Ford's plants functioned on Saturday, as did American Motors, Detroit Dodge, Plymouth in Evansville, Ind. and the in preceding week a Plymouth-Dodge in Newark, Del. ; ; "Ward's" estimated truck output the past week at 16,288 units . against last in 14,209 last week and 21,543 in the corresponding week In addition to Chevrolet's closedowns* Mack plants Jersey, Pennsylvania and New York were idle. Mack year. New bargaining for and the United Auto Workers are a new contract. Although building permit values in September fell moderately prior month, they exceeded those of a year ago for the ninth consecutive month, Dun & Bradstreet, Inc., states. At $585,from the 381,293, the total for 217 cities, including New York, was the highest for any September on record. This represented a decline of 7.9% from the revised $635,323,289 of August, but was up 11.6% over the $524,374,748 of September, 1957. City fell sharply in September. Permits issued in New York They were valued at $53,445,172, a drop of 48.6% from the $103,- 987,432 of August, but up 19.6% over the $44,690,851 of September year ago. a , Steel Output Scheduled to Dip tp 74.4% of Ingot Capacity This Week Mills will produce more week comparable Steelmaking continue will a steel this week than they did in the "Steel" magazine predicted on ago, year to operations, double pacing for increase automakers build up steel at a least rapid the industrial next few upturn, weeks as inventories to take care of needs caused shift operations of the standard of policy the consumer is practically always the forgotten man. Postwar Trade Record We can, not necessarily and however, be reasonably of our postwar record in Congressional policy. The free world is still seriously divided by trade barriers, and we still often pursue independent and occasion¬ bigger overtime work. As automotive orders, but ones. The metalworking weekly and for It is most regrettable that discussions on foreign trade proud enthusiastic burst of production in Novem¬ December and possibly January, accompanied by almost industry-wide overtime operations. Increased schedules are dic¬ tated by the current dearth of 1959 models in dealer showrooms "Ward's" predicted an ber and international trade living. in parts will hold output of automobiles for October to the 250,000 300,000-unit area, reported the statistical publication. However, to output increases, steelmakers will probably get more be stressed enough economic progress for Reports," stated on . by never how: important is Automotive Monday last. fourth condition for of economic prog¬ nations. It 488,000 of restraint labor unions we have at present our goal Friday last. ^ .. „ . . Month-long labor difficulties arid-subsequent shortages of key It is to the in¬ terest of our own country and prices, country should boom a wages, whole. U. this critical matter. large to prevent a slump is to pre¬ way vent mental policy of our industry adopted by our country before continued of a not fought vigorously for the entirely agree with the Chair¬ of the Federal Reserve Board, trade bill this year our nation and I should We have the Agreements man very ness are controlled. be can ress marketing policies will be far-reaching for our society. profits. by labor, cycles, but I feel confident enough to assert that the amplitudes of the ups and downs of the cycle of such and competition are the secret of economic progress and prosperity for all. Monopolies, either or enterprise system. I will not the causes of business into go the furthering play of market market free nomic for condition inherent to the operation of a are with and extension of the U. S. Congress was by the sheer force of necessity into more and more selfservice, which is based on preselling by advertising. The eco¬ freedom monetary problems confronting The tech¬ system enterprise system sur¬ vive depends to a very large ex¬ on enjoying recent four year Trade how to reduce its cost of distribution.' and wisdom. It can be done, but It may well push our distribution not with bad government and not and the free tent industries in tough problem of put the dollar on a sound basis because the international currency system of the free world has come to depend on the soundness of the dollar. The increases in wages to work¬ holding of nological progress creates for the good and retail field the repeat again that it has me become its af¬ to make as eco¬ coutptries with which we trade, fully consonant with in¬ anff^particularly for the countries The is to for society should prevent abnor¬ mal or exaggerated swings of the business cycle. I belong to those who believe that business cycles in such industries receive wage ers monies government condition third we and four million like government bonds. Unfortu¬ the next year. Neither is it wise to over-stimulate the appetite of nately those who are hurt instantly the consumers by low down pay¬ by the consequences of inflation ments and too easy credit terms have not enough political power. The idea that there must be an over a long time period. I am not principle against instalment annual increase in wages com¬ in provided they are made mensurate with the national aver¬ sales, with moderation in good times, age increase in productivity is bad economics and dangerous in the and provided we increase our ef¬ forts for instalment sales in times extreme. It should particularly concern people interested in the of recession. distribution of goods for the fol¬ Dangerous Swings Affect the lowing reasons: World Only highly mechanized indus¬ Too large swings of the business tries benefit from dramatic in¬ creases in productivity. If work¬ cycle are also dangerous for the investments interest fixed make As you know, for the first time, duty of the trustees of this year witnessed a majority of belonging to others is to the nation's workers employed in manage them as well as they pos¬ service industries; therefore the sibly know how, to preserve their problem has become even more purchasing power. The duty of the ment. The nomic progress in the free if that are stated that steelmaking operations expected to reach a peak of 85% of capacity during the fourth quarter. Last for the week s week, steel was produced at 75% of year. level. Operations advanced Production was about 1 capacity, a new high point above the previous 2,024,000 net tons of steel. During the corresponding week last year, output was 2,052,000 tons. Rates were up in six out of 12 steelmaking districts as follows: St. Louis at 96%, down 2.5 points; Chicago at 85, up 0.5 point; Cincinnati at 83, up 3.5 points; Wheeling at 83, up 1 point; Detroit at 82, no change; Cleveland at 80, up 0.5 point; Buffalo at 78, no change; Western district at 75, no change; Eastern district at 71, up 1 point; Pittsburgh at 69.5, up 2.5 points; Youngstown at 64, no change, and Birmingham at 63.5, down 2.5 points. Volume Number 5790 188 Steel consumers are . Moving higher in wholesale cost the past week were oats, hams, bellies, cheese, sugar, milk, tea, cocoa and hogs. On the down side were flour, corn, rye, butter, cottonseed oil, 'eggs and steers.'';/• " . % starting to look ahead as mills extend into the market for bigger tonnages. ' this year producers cash in on low costs. A broader range of products is being imported into a wider ordinated fence The important imports in 1957 were: Reinforcing bars, 340,0u0 tons; pipe and tubing, 150,000; round and flat wire, 5. 140,000 and structural shapes, 80,000 tons. . : .i : "Steel's" composite on prime grades of steelmaking scrap held unchanged last week at $42.33 a gross ton for the third straight} week. Dealers are banking on higher steel operations to stimulate . soon. The * , /•- .. American '*■/.' and Iron . Steel Institute rate of steel companies will operating ■ . -7,7:-"-\Y' ; announced that the average -125.1% of steel . week beginning Oct. 27, 1958. equivalent to 2,009,000!' tons of ingot and steel castings (based ori averaged weekly production fcur 1947-49) as compared with an actual rate capacity the beginning Oct. 27, 1958 is equal to about 74.4% of the; utilizatiori' of the Jan. 1, 1958 annual capacity of149,742,570 net: tons compared with actual production of 75.1% V:r Output for the week the week before. general commodity price level last year. ' : •; . a moderate decline in flour the actual weekly production ' placed at 2,041,000rtons, or 127.1 %. ; . • * * \ - ^Index. of production is based on average were 77. weekly production for 1947-1949. .. . The amount of electric energy ' and distributed by the electric light industry for the week ended Saturday, Oct. 25, 1958 estimated at 12,174,000,000 kwh., according to the- Edison power was Electric For Institute; week the Output increased ended Oct. 25, moderately the past week. 1958 output increased by 126,- 000,000 kwh. above that of the previous week and was kwh. above that of the comparable,.1957 week and kwh. above that ;£f Ih^y^ek ended Oct. 27^.1956^ ^/ Car Loadings Rose 337,000,000 783,000,000 , Slightly in the Week Ended Oct. 18 1 9,630 cars, or corresponding week in 1956. Cotton - Improved Further Last Week but Makers Will Fall Far Short of October's Goal production for the week ended Oct. 24, 1958, according to "Ward's Automotive Reports," showed further im¬ provement, but car makers will fall far short of their October goal of 488,000 units. Labor difficulties and subsequent shortages of key parts will hold output of cars for October to the 250,000 to 300,000-unit area, it added. Last week's car output totaled 69,599 units and compared with 45,387 (revised) in the previous week. The past week's production total of cars and trucks amounted to 85,887 units, or an increase of 26,291 units above that of the previous week's Passenger car output, states "Ward's." Last week's car output rose above that of the previous week by 24,212 units, while truck output increased by 2,079 vehicles during the week. In the corresponding week last year 104,987 cars and 21,543 trucks were assembled. Last week the agency reported there were 16,288 trucks made in the United States. This compared with 14,209 in the previous week and 21,543 a year ago. Lumber \ Lumber shipments of 467 reporting mills in the week ended Oct. 18K 1958 were 0.9% below production, according to the "Na¬ tional Lumber Trade Barometer." In the same period new orders Unfilled orders amounted to 37% of stocks. Production was 7.2% above; shipments 5.4% above and new orders were 1.4% above the previous week and 6.7% were prices on the New York Cotton Exchange moved reflecting reports of favorable weather conditions Belt. Consumption of cotton by domestic mills September amounted to about 648,000 bales, somewhat than anticipated. Exports during the week ended last Tuesday were estimated at 50,000 bales, compared with 64,000 in the prior week and 117,000 in the comparable period last year. For the current season through Oct. 14, exports came to 660,000 bales as against 388,000 during the same time last season. during higher in 1957. Business Failures Declined Volume in Latest Week Recorded Trade Below the Like Period in 1957 industrial failures declined slightly to 275 in the week ended Oct. 23 from 288 in the preceding week, Dun Commercial and Casualties dipped lower than in the comparable week of last year when 281 occurred but they re¬ mained above the 267 in 1956. For the first time in six weeks, failures fell below their prewar level; the total was down 8% & Over Bradstreet, Inc., reports. from the 300 recorded in 1939. involving liabilities of $5,000 or more dipped to 233 last week and 239 a year ago. A mild decline also Casualties 226 from occurred among small failures, those with liabilities under $5,000, in the previous week but remained which were off to 49 from 55 slightly above the 42 of this size last year. Nineteen of the week's casualties had liabilities in excess of $100,000 as against 17 in the preceding week. Wholesale Food Price Index Moved Fractionally Higher the Past Week consecutive weeks of declines, the Dun & moved up fractionally last the 1958 low of a week earlier. On Oct 21 it stood at Following three Bradstreet wholesale food price index week from $6.25, up 0.3% from the $6.23 of the prior week than the $6.14 of a year ago. . . - and 1.8% higher of post Force the United States /*"'■;' ,c'' 7' >7 : Base Material Com¬ ■ • clutches, electro - mechanical and hydraulic units of various types, cargo and rescue winches, and in the manufacture of precision com¬ ponents find industrial gas burners. Similar Period a a addition, a division of the com¬ in the overhaul and repair of airborne and electronic Slight Gain pany engages Year Ago instruments. from Although consumer buying faltered somewhat last week the purpose of new tools, dies and special fixtures for the manufac¬ of new products and to in¬ crease production of present prod¬ gains in women's apparel and furniture offset de¬ men's apparel. Spot checks indicated that new passenger cars moved up again, but remained in below year ago. a *$' . of retail ended condition portions higher than a veal. by the following percentages: Middle Atlantic States +2 to East North Central +1 to +5%; West North Central, East air and of the plant in order to facilitate the maintenance spot estimates collected by Dun & Bradstreet, Inc., re¬ Regional estimates varied from the comparable 1957 levels of necessary precision tolerances required by the aircraft industry; and to increase working capital. ago, year modernize to ucts; trade in the period Wednesday of last week was unchanged to 4% on ture ' , dollar volume total The the sale of the above issue will be used for year-to-year volume net proceeds from The prior period, which included Columbus Day, total retail vol¬ ume was up slightly from the comparable period last year. Some the +6%; South South Atlantic, Moun¬ tain and Pacific Coast—-1 to -j-3% and New England States —2 Central and West South Central 0 to -f 4%; to -j-2%. Forest Laboratories . Buyers stepped their up purchases of men's Winter suits, Stock $2,50 a Share sportswear and furnishings the past week, boosting over-all men's apparel moderately over a year ago. Reflecting the high level of retail activity, volume in women's coats, dresses and sportswear Greenfield York, up substantially. stock fashion accessories matched that at . buying of food and new , produce and frozen foods were somewhat better during The call for poultry, meat and dairy products continued proceeds from the fi¬ other corporate purposes. Giving effect to the sale of the stock, there will be outstand¬ shares 326,000 ing out ah of authorized.issue of 500,000 shares. level of earlier weeks. There were some outstanding in¬ creases in the call for canned fish and fruit. Vegetables and interest to net products and for working capital products at wholesale remained at the the week. of Forest $2.50 per cents) Inc. at nancing will be used to pay out¬ standing notes, .to expand sales force_ and .promote company's high close 10 (par The lagged in Boston. The Co., share. appreciable rise in trading in industrial fabrics and man-made fibers during the week. The volume exceeded that of last year. Increased transactions in sateens and broadcloths offset slight declines in print cloths holding volume in cotton gray goods at the level of a week earlier. While interest in woolens and worsteds picked up in Philadelphia, sales Inc., New offering an 150,000 shares of capital Laboratories, high level. a & publicly are of issue Demand for women's suits and most of a week earlier. In preparation for Christmas, retailers increased their buying of women's blouses and sweaters. Interest in children's merchandise was sustained moved in fresh Mildly the Past Week and Air Air an In 17JB% below production. below the like week of acquiring is engaged in the business of engineering, designing and; manufacturing aircraft and missile accessories, including line¬ ar and rotary actuating units and systems, h o i s ts, gear boxes, Textile mills reported another Shipments Fell 0.9% Below Output of the Week Ended Oct. 18, 1958 Haydu Products, purpose The company Cotton the is mand down last week, in the Air Force. ! 1 : ; . Olmstead which clines in appliances and Automotive Output Car the buyers appreciably stepped up their purchases, prices remained close to those of the previous week. Cocoa expanded. - • production: facilities at Middletown, Pa.j in close proximity to prices moved up slightly at the end, of the week as transactions 1.4% above the preceding week. Loadings for the week ended Oct. 18, 1958 totaled 695,768 cars, a decrease of 31,044 cars, or 4.3% below the corresponding 1957 week, and a decrease of 132,973 cars, or 16% below the the a Loadings of revenue freight in the week ended Oct. 18, 1958 were during noticeable dip in prices. -The buying of rice was sus¬ Although coffee Showed Moderate Improvement In the Latest Week 7, Electric Output trading a Jersey, a subsidiary of the Bur¬ roughs Corp. In August 1956 the company's name was changed to Haydu Electronic Products, Inc. The company's executive offices, engineering. and principal manu¬ facturing facilities are located at 1426 West Front Street, Plainfield, N. J, The company also maintains high level with prices unchanged. Purchases of sugar steady holding prices even with-those of the prior week, tained at at the principal assets of a business known as Haydu Brothers of New harvested a record crop, soybean trading slack¬ prices dipped moderately.' Purchases of rye declined appreciably and prices turned moderately lower. Steady trading in rye held prices close to those of the preceding week. ' was com¬ share through Dec. per under the name Inc. for farmers a of company The company was incorporate^ in New Jersey on June 26, 1956 ' and ened the of 30, 1968. the comparable date shares into stock price of $5 helped grain prices during the week. The corn crop was esti¬ mated to be 2% above the record of 1948 and prices dipped sharply. 7 Corn trading was close to that of the prior week. Although com¬ mercial buying of wheat moved up at the beginning of the week, transactions lagged at the end of the period, accompanied by a weakenings in - prices. Export demand for wheat is expected to climb substantially in the coming weeks. 7 / < ; week and duction 1,901,000 tons. :A year ago, was convertible mon Record harvests and reports of favorable crop weather There the rate was * 118.3% and pro¬ ago in lower most • month For the like week a noticeably / 7' ' u Registered declined earlier and compared with 278.25. on week As *126.1% of capacity, arid 2,026,000 tons a week ago. of ■: for York, N. Y;, are offering of 6% convertible sub¬ debentures of Haydu Electronic Products, Inc. at par ($100 per debenture). The debentures dated Oct. 1, 3 958 and due Dec. 31, 1968, are stock, grains, steel scrap, flour and lard. The daily wholesale commodity price index fell to 276.71 on Oct. 22 from 278.00 a . • -buying Berry & Co. of Plainfield, N. J.f and New the latest week, with the most significant decreases in some live¬ Tonnagewise, . per Noticeable Declines in Latest Week v . total Wholesale Commodity Price Index ; staples and 13% of woven wire shipped in last year. were sum ..." country. More than half of the supply of barbed wire in the United States came from abroad last year. Nearly a quarter of the supply of nails and Debentures Offered $300,000 of the section of the price level. is 1,235,000 net tons against 1,153,702 tons in 1957. The outlook is for shipments to be up still more in 1959 as foreign for represents the pound of 31 raw foodstuffs and meats in general use and its chief func¬ tion is to show the general trend of food prices at the wholesale rising the magazine noted. "Steel's" estimate Steel imports are • index The ' 37 Haydn Electronic barley, Cold-rolled steel buyers are giving suppliers 45 days' notice of requirements instead of 30. They know that steel is going to get tighter as automakers, appliance manufac¬ .delivery promises. turers and other users come (1801) The Commercial and Financial Chronicle . . Forest Laboratories, Inc., incor¬ porated in Delaware on April . 11, 1956, is engaged primarily in the of developing, manufac¬ business that of the prior week. and selling various drug pharmaceutical products. It turing Department store sales on a country-wide basis as taken from the Federal Reserve Board's index for the week ended Oct., 18, 1958 advanced 6% above the like period last year. In the preced¬ ing week, Oct. 11, 1958 an increase of 4% was reported. For four weeks ended Oct 18, 1958, a gain of 3% was registered. period Jan. 1, 1958 to Oct. 18, 1958 no from that of the 1957 period. the the For change was recorded , York City a week ago, according to estimates by trade observers, would show an increase Retail trade sales volume in New 8% above the like period of 1957. week were noted in women's apparel as well as shoes and accessories. Men's wear and domestic goods and housewares also showed strength during the week. and also and imports cosmetic compounds preparations from a foreign for sale in this manufacturer country. . . company's principal office and plant is located at 838 Ster¬ ling Place, Brooklyn, N. Y. It also 'maintains a sales office at 527 The Madison Avenue, New York, N. Y. of 4 to Increases for the According to the Federal Reserve Board's index, department sales in New York City for the week ended Oct. 18, 1958 showed an increase of 14% from that of the like period last year. store John Muir to Admit On Nov. 7 Richard D. Foer will acquire a membership in the York Stock Exchange New and will be to partnership in John In the admitted ported. Muir & York City, members of the New York Stock Exchange. preceding week, Oct. 11, 1958 an increase of 5% was re¬ For the four weeks ended Oct. 18, 1958, an increase of 8% was noted. For the period Jan. 1, 1958 to Oct. 18, 1958 an inCv~-* " was registered above that of the corresponding period in 1957. / Co., 39 Broadway, New 38 The Commercial and Financial Chronicle (1802) Manhattan Bond Madison Fund's Fund to Be Rights Offering - . . Thursday, October 30, 1958 . Fundamental : Absorbs Private Fd. - Assets .of " ^Absorbed by By ROBERT R. RICH hattan Bond Fund, Inc. announced reorganiza¬ tion, recently submitted to share¬ holders, received a tremendous vote of approval at shareholders' that the fund's plan of meeting; The || -j—<i of directors of Man¬ if"ii the involving •. S^ertoS,' i^^^ttaue ^ fo favor the diversified Business Kecovery Stock program ." -*«J in the most recent common , . . , Cited by E. Rubin pur¬ sets of company "'are acquired by 1,286,619 addi- being one Stockholders was subscribed for damental Investors, Inc., a $470 Uhder * primary rights, with the nnlhon mutual fund. ; balance "substantially oversubAccording to a joint announceserlbed" through oversubscription ment by Hugh W. Long; President , r Irte^: Selected American added 16Und Shares, American Selected Quarter _ __ total mutual fund, reports plan, believes that these over-oriced i f Full-Fledged $12 million private a investment of the' nation's tional shares ottered Madison Fund largest common stock funds, Fun— Over 91 % of the "Diversified The board ci otu/9t/i isjC/it ▼ Sept $80jp75,3S8 ... Ro k I r a ;i(3«eia DL- increase of 33.9% on over assets ot r Inc., $59,805,980 at Dec. 31, 1957. Outstanding shares at Sept. 30 of k shares of the latter fund, was ap¬ 8,748,095 compare with 8,001,847 proved by holders of more than at Dec 85% of the outstanding shares 26 cents "Such a large vote," according to gains in January, net asset value Met „. •An application/ toil exemption ReDr;bIic Steel; Wm. Gage Brady, Jr., Chairman iwwwh Scarle; and Stauffer Chemical. In"owneA of both funds, "is exceedingly rare with f iQ57^^With St^arte; Stauffer^Ghemibal;fr®mi (<*). $7.47 at Dec. 31, 1957. With number of owners vv11"1 J!'*'*1; Dec' ? ' 1? ' t +i~ bus in any kind of corporate ballot¬ adjustment -tor reinvestment of creases in prior stock holdihgs ; Annnnnrfa- RpnHfv '• but in the mam, been filed with the Securities'and ing." this capital gain distribution, the chase of the fund's assets by Investment versified Fund, balanced fund in exchange for a . ^S ^tiortii22 L ®-feveitfr m The had reasons letter Mr. to for exchange the expired in been special a in ^viati^Co^ahi^CoS^^eSe- the Stocks shareholders, signed by irtfoTio and Hugh W. Long, President. They included: the loss of the purchasing power of bond income as a result of inflation; five largest industry holdings in the fact that dividends from a common stocks were steel 11.7%, bond fund do not qualify for the oil 11.2%, electric utility 7.4%, usual dividend exclusions or divi¬ electrical & electronics 6.8%, dends received credit under the metal (non-ferrous) 6.4%. Federal tax laws. Reflecting these Edward P. Rubin, President, refactors which are beyond the con¬ trol of the fund's management, ports to shareholders: "The nu¬ merous encouraging economic there had been a declining trend straws' we reported to you 111 in the number of Manhattan Bond midsummer appear now to have Fund's shareholders and its total turned into fullfledged business assets, which threatened econom¬ ical administration of the fund in recovery. As it became evident the third postwar recession might the future. prove as short and mild as its two Manhattan Bond Fund share¬ predecessors, common stock prices holders will be informed next worked upward. High grade week as to how to exchange their bond prices fell due in part, share certificates for certificates perhaps, to more general recogni¬ of Diversified Investment Fund, tion of inflationary risks. More¬ Ihc. The net asset value of the over, as business began to recover, Brady . . . shares of both funds at the close of business Oct. on will 23 be the basis for the exchange. Values $8.98 were ly resumed Diversified Investment Fund and per share for Manhattan Bond Fund; Cash will be paid in $0.42; lieu of fractional shares. to policies tional J tendencies. «These fight inflation sound dollar svmnathize Dresser; General made Oil. Reductions .wi/4i+iAnoi ex- t.hocf* price advances raxcn.dnge choree' wrii holdings of American Central Illinois Publie Service; Commonwealth Edi¬ son; National Dairy; Socony Mobil; and Standard Oil vestment and corporate purposes. On the new basis of 6,433,093 . (N. J.). , $19.40 share per yommission,, xne yrans- > of as Sept. R in effective time, Investors r„mm„v _ be that f*?™/ 30, - share- and! wi11 h„ the Hi„ wlU be dls- ; ■ . ' • . an- Investors Management Company, difficulty investing the funds profitably," Mr. Merkic Inc., one of the oldest investment supervisory organizations in ; the mutual fund field, whose business was established in 1924/ general securities market we ticipate new no ''There said. are situations valued always with under¬ unrecog¬ potential, even in the most advanced bull Tri-Gontineiital markets." T. Rowe Price Sb. Reports 21% Gain Value Gains 24% Of Bullock's Two Canadian Funds In Net Asset Value Growth Stock Investment assets of Tri-Con»ti- Fund, Inc. reported that total .asgets increased to $14,121,737 on nental Corporation, the nation's largest diversified closed-end in- T. Graham F. Towers, C.M.G., has elected Chairman of the been tn Fundamental „ will At The investments of Fundamental "Despite the high level of the Investors, Inc. are supervised by 1958. nized Towers Chairman , , , shares, net asset value of Madison Fund stock was approximately were in Natural Gas; Price Rowe Board of Directors of Cafiadian Sept. 30, 1958 from $9,436,114 on vestment company, increased to a Fund, Inc. and Canadian Invest- Dee: 31, 1957. During the first nine " record $361,870,390 at Sept. 30, it , impor- Who Combined assets of the two funds period 893 new stockholders subscribed to Fund shares. , ,. Mir. Towers is President of Brit- -; In hisreport*/Mr; Price noted ish Petroleum (Canada) ;Ltd., and the business recovery which has is a director of General Motors takeir place-sihe^ April of 1958. Corporation. He headed the Bank '-Since then, industrial production of Canada for.the first 20'yedrs a? measured by: the-Federal.Reexceed $150,000,000. are skentical of avoiding still further (Special to The financial Chronicle) offering: deducting ndnoae-'ita. preserve highly with Bank; continent of^he past^ years ^r ^T^n^can Form CHek Inv. Co. Invest—: Stores; Minnesota Mining; Ohio Edison; Republic Natural Gas; Royal Dutch; and Sunray-Mid- de¬ attempts and are theAfter om Foods; General Public Utilities; Lily Tulip Cup; May Department infin+innnrv + a - fr Associates . credit dele eliminated. wer-ft assets the Federal Reserve Board quick¬ These signed share fop per Cbmiiiiss November. . . accomplished its purpose/ ^GeSeSIScW^" P- °f jfSS' 26.9% value per share rose nine months. asset With many PKfSACOLA, Fla. — Click In¬ stock prices at new hiehs and some obvestment Cov, Inc. has been formed earnings lower with offices at 1206 North Palafox servers say stock prices are 'high' . of $20,313,439 in "the three months ended- and was $58,466,254 greater than the $303,413,142 re¬ ported at the" start of • the year, "Appreciatfon in "the market value just of investment "holdings was- the primary factor iri the sharp rise ® • of its existence. V serve Board Index has recovered in investment' assets/* according from 126 to 137, or more than to Mr. Randolph. New: funds yeHe succeed? the Hon. Charles A. probability half of the decline which had suiting from the exercise of warthat earnings of large, well-man- Dunning, P.C., Who died recently. taken place from;' the previous,.rants declined to a nominal $128,With Norm & Hirshberg aged American corporations in the Jrigh of 147/ The sharp recovery 880 in the third quarter. There past 10 years With J. I. Ferretl Inv. or (Special to The Financial Chronicle)1 longer have to date, He said, has resulted from were 6,85.7,549 shares of Tri-COntended to improve in quality. (Special to The Financial Chronicxe) ATLANTA, Ga.~James T. Sisk, strong consumer demand, cessa- tinental common stock Outstanding GRAND JUNCTION—Harry B. tion of inventory liquidation, in- at Sept. 30: the remaining warJr., is now with Norris & Hirsh- Judged on 5 or 10 year average berg; Inc., C. & S. National Bank earnings, or on strength of longterm Paming^ tmnd .fhi« Ferrell has joined the staff-of hi manufacturer's hew- rants were reduced to 1458,298 term earnings trend, this manageBuilding, members of the Midwest i?ont.AiT TnxVAc+tnonfc itoa- orders, higher government spendAssets pel- common share stood ment is convinced such reprerepre- Jane I. Ferrell Investments, 1129 Stock Exchange. ing ahd' especially a Sharp in- at $44.22 at Sept.30, upfrom.$41.30 Street tcr engage in a securities business. c, ,. ... Studies this management has conducted point to the . . . cVease , sentative stocks are not now Colorado Avenue. building and pub- three months; earlier and $36.42. at The outlook for the start of the year. The gain for the fourth quarter appears' bright the first nine fhonths of 1958 was With regard to the automobile in- about 21%. Assets per comiAbn dustry which has been the chief share, assuming the exercise of all drag on recovery, however, if s warrants, rose to $39.55 at Sept" 30 still too soon to tell'how well the from $37:12 at June 30 and $32.82 crease Lathrop, Herrick & Smith WTCHITA, name , of Clinger, has' Kans. Lathrop^ Inc., — been The firm Herrick Beacon changed to Herrick & Smith, Inc. in home lie .construction. & Get the facts Building, on Lathrop, public will accept the 1959 The -prevailing confidence that business wilt recover to new highs in litfGretlttf industry. * Brgfdd tv send you a free prospectus describing Atomrc Development Mutual Fund, Inc. This mation, conceniing the Franklin Custodian Funds. growth iir principal and income: . - , ' ' SocuriliaL Celine. Dopf C . • ■ infor- t i f - ue, t cmf. jdm sn&L. over 18 times that while this increase reflected earning s—the gain in the market- value of com- stock investments* it also resuited from purchases of coramo stocks on balance* using proceed from the sale of fixed-ineom securities. He added Biat third mon favored- equities, o Under the circumstances* prices companies whieh seemed Ekely t seem to be discounting an opti- participate in cyclical- beeiness, re mistic projection .of .earnings sey-_covery and that consideration 51s eral "years hence.- Consequently, was giverfcfo common stocks whic we consider it prudent to continue- seemed tec be reasonably priced i the. conservative in v- es.tm en t relation fq long-term prospects, i rhwii «tar# n> w. now 1958 investments i Please send me, without obligation, the Prospectus and other NAME of Quarter changes in common stoc FRANKLIN CVSTOMAN FUNDS, INC. •4 Writ StTMt Nnr York 9, M. T. of companies active in the atomic fleWwith the ohjectfve-oIposaWe .common xxp 82.8% added. VfewHf fMHosmoiethaii 75 hoidingsof stacks selected from among those made bighest price/earnings^ ratio since 1929. They are selling at 14 to 10 times previous peak earnings-The popularity of growth, stocks has forced prices of many favorite issues to excessive - heights, he / . are estimated seeking; possible growth and income through investment in Amer¬ ican stockholdings 1959, indices Find out now about this series1 of Mutual Funds terly report reveals that and the inflationary- investment assets at the end of th minded public have forced com- first nine- months as- compared morr stock averages to a new allwith 75.1% at the beginning of the time high. Representative stock year. Mr. Randolph brought pu FUNDS ATOMIC at Dec. 31, 1957. Tri-Continental's Sept. 30 quar- models. policy of keeping a. substantial /• New: common stock holding portion of the ^ portfolio, in higher added iii the tltfrd quarter wer yirfding ^ bonds and othet dbHar •shares of PfeabOc^jr CoafCd^Texa obtigatibris." v I^aiSlHc CoaT Oft.:Cb^'Geifera , F; ?' Volume 188 Number 5790 . . . The Commercial and Financial Chronicle 39 ^(1803) y{ /Motors Corp.; Lockheed Aircraft Gbrp; / Westinghoiise Corp.; E lectr i c City Steel Co.; Granite Allied Chemical Corp. and Dresser. Warns FIFCoiifideiil oil f. / Against Inflation Theory in Drug Industry Our Industries, Inc. :r ^ The Twenty-third Annual Re¬ Investment positions were elim¬ port of Financial Industrial Fund, inated by the sale of shares of A review of general economic Inc., shows that on Aug. 31, 1958, Aluminium, Ltd.; United States and market conditions through FIF assets exceeded $101 million. Rubber Co ; Chemical Corn Ex-'/ The monetary authorities continued to keep the pressure on supply of credit when they authorized tb^ Banks to increase the discount rate last week from 2% to 2%%. This move to bring the discount rate ip line interest notes and the This one-year increase of more than $26 million alone exceeds the total assets reported by FIF Manhattan. thc^third/quarter of 1958 is given inUhe'/Values iii Industries" study; Bank; Chase Bank/ First National City Bank; of- Distributors Group, Inc., na¬ Hanover Bank; B. F. Goodrich four years ago. Co. /and Columbus &/ Southern tional/ sponsor of the 21 mutual funds,, comprising Group Secufi- : in commenting Ohio Electric Co, Principal de-1 Federal only Co: and National Fuel GaS Co? U. S. and exists in securities markets, according to the report. The rise of market; "averages" conceals "hundreds of/ good quality stocks, especially in Foreign Share Values to on (eight there times are as now, people many in our as net asset value on 1958 of - average state),.• ! " • /'/ // "./• /: During the recent quarter, FIF (with 60,000 shareholders) ex¬ pressed its confidence in the long- :$36.66 per"Share-on the outstand¬ ing .! 3,310,815 shares of/ common stock. '•/ This // •, //" t value on Dec. 31, 1957 of $103,-' 456,893, equal to $31.25 per share and net asset value of $115,410,679 or $34.86 per share on Sept. 30, oc ca s against* • over-optimism. total be used now selecting investment securities.' Because of the dustries wide range of in¬ which in the mutual funds FIF full 1957. , a dividend of $1.15 per share from which 88.9 cents came from capital gain. / The corporation's common stock paid r holdings at. Sept. 30, 1958 repre¬ sented total invested assets "in the following approximate percent¬ using in their efforts contain, if not retard, the inflation psychology which has devel¬ oped, because of the fear of the future purchasing power of the monetary unit. ' ' ' \ ' •11 A The latest Washington, No modestly than in the recent weighs on the one hand the risks while tobaccos continue in of 'less-valuable'- dollars against an established upward trend and the risks of fluctuating values and merchandising stocks still / Offer /income characteristic of his com¬ attractive values that prompted mon stock investments. Yet, he an earlier study's calling attention realizes past higher rates of return was very And in time the member banks would most likely have taken full advantage of the privilege. great. / ; G, P. S, Share Assets Record / Net the assets Street To $6.09 $30,182,661,, equivalent - to $6.09 per share oil 4,956,528 shares werp. of common stock outstanding. The report states that on Sept. 30 a ypar ago the asset value was $5.03 and points out that a comparison of these include two the asset values jear-end should distribution of 14 cents per net gain on share from realized investments. At Sept. 30, 1957, the net assets 917,066. " : The $24,- were report .also compares/the 1958 value of $6.09 per share with that of $4.02 at Dec. Sept. 30, 31, 1957 and $5.61 at June 30, 1958. % ' Principal purchases for the quar¬ ter included initial investments of shares of Joy Manufacturing; Re¬ public Steel and vestments , of addition shares of to in¬ Houston Lighting-& Power; Idaho Power; Tampa Electric; Transcontinental Gas Pipe Line; and U. S. Steel. Eliminated from the portfolio was the corporation's investments in Aluminium Ltd.; Arkansas Louisir ana , . At Gas and Standard Sept. 30, 1958, Packaging. holdings of Utility common stocks represented 50% of tptal net assets; natural gas transmission and distribution of Fund, the open Mutual of from the 8,072,964 at Dec. compared $9,045,386 asset value three stood at $12.52 at Sept. 30, up from $10.79 at the start of 1958 and $12.04 at June 30. "During the past three months," the chairman noted, "val¬ ues of common -assets'8%. . an increase of improved markedly, but this gain offset to some extent by lower bond and preferred stock prices." Common stocks made up 54.8% of the Fund's net assets at Sept. 30. This was up from 52.1% three months earlier and 48.7% at the beginning of the year., Mr./Ran¬ dolph said that "the common stock of the- portfolio has/In¬ creased primarily as a conse¬ the rise iri common stock prices and the decline in prices for fixed-income securities which have taken place. There has been no basic change," he stated, "in. Whitehall Fund's policy of operating with a portfolio bal¬ anced about evenly between quence of fixed-income securities and mon com¬ stocks." Within the stock cate¬ established by the purchase of shares of Standard (Ohio) and Allied Chemical. Common stock investment positions were eliminated* in Arizona Public Oil U. S. Rubber. of its year-end care the desire on colossal flop. high Central Bank rate, and it is still not sense that most other Central Bank rates symbol a are. ; r increase in also penalty rate in the It is, however, the sign of what the monetary authorities think about the : they are trying to do in the battle or =$7.74; Axe-Houghton Stock Fund, $3:28 to $3.88; Axe Science out to be true over $10.52; ./Axe -Templeton Growth Fund.of Gapad^,.$18.91 to $25.24. -/ The total and share values of Fund for B tember 30 do not include net 29 profits cents a. cents and a a a Sep¬ distri¬ share dividend from of 6 share from income which paid October 24 to share¬ holders of record September 26. were c The number of shareholders for the five funds the rose more nine-month 89,163 to 97,462, than 9% period—from ; Also, the impeding Income Founclation Fund The the has opened Reports unrealized appreciation in of Income Foundation value Fund's portfolio securities over was $600,425 as of Aug. There were 2,927,690 shares of the Fund outstanding, with total net assets of $6,932,016. their cost 29, 1958. Common stock changes in a Bonding & Insurance; Mead John¬ son & Co; Merck & Co; MinnegPr olis-Honeywell Regulator: Jfah* tional Cash Register: National Life & Accident Ins. Co. of Louis¬ ville; Peoples First National Rank & Trust; (Chas.) ' Pfeer and Southwest Gas Producing. •5 • _ y *. - f ' u - • v r First California Branch the portfolio during the period May 20-Aug. 29 were as follows: PASADENA, Calif —First Cal¬ ifornia Company has opened a branch office at 595 East Colorado American Airlines; Street under the management of Tobacco; Consumers George R. Liddle. Power; Island Creek Coal; Motorola; Ohio Edison; Reynolds Atlas Adds to Staff Tobacco and Southern Co. Additions: American Eliminations: Aluminum Co. of (Special to The Financial CH*om<3JE) LOS ANGELES, Calif .—James American Home Prod¬ ucts; Commonwealth Gas; Com¬ W; Odom and Lawrence Pleener monwealth Life Ins.; Dow Chemi¬ have been added to the staff of cal; Ford Motor; General Crude Oil: General Motors; Gulf Oil; Atlas Securities Inc., 6505 WilsWre America; / QGEANSIDE, Calif.—Norman C. Company period of time, then the policy of "comfort¬ doubt be continued. be carried out successfully. ' Norman Roberts Branch Roberts a Treasury financing will most likely mean that the money market will be supplied wtih funds so that the Government operation will Electronics Corporation, $9.06 to of continue Axe-Hough - to bution It is evident that if the forces of inflation able restraint" will no reports ton Fund A, from $4.78 to $5,36; Axe-Houghton Fund B, from $6.73 Axe-Houghton - strength, there will be higher interest rates and tighter credit conditions. For the moment, at least, it seems as though the inflation psychology is not gaining in momentum and if this turns the asset value of its shares, as follows: / trend of interest fates, and what According to preliminary fig¬ ures, the total was $158,680,285 on September 30 as against $128,513,978 last December 31. All five funds participated in the advance. Each of the funds - does not make it a to gain an , / the part of Warning From the Central Bank than $30 gory of investments, new positions were a with inflation. in common and to take The increase in the discount rate to 2V>% 23.5% in total net assets was content more was evident that the Central before the Government went in the new money was by $30 Million or raised operation by the Treasury, unless it during the first three quarters of stock investments T2%;/ oil and natural: gas-produce tiori 11%'; miscellaneous industrial -19%; arid cash arid other current Service*, Brooklyn Union Gas, and . port be the monetary authorities to make it The five mutual funds sponsored by Axe Securities Corporation re¬ million to market to obtain 1958. with months ago. Per share 31 and other or to be held off until sometime in the future. The CenBank rate could not be raised in the middle of a financing tral Axe Fund's Assets Rise the help clear the decks for the maturities, progress." t record a done to was coming financing of the Treasury. It Broad Funds, $9,683,849 at Sept. 30. Francis F. Randolph, chairman and president, reported that this was a gain of almost 20% reached General Public Service Corporalion/ closed-end investment com¬ pany,-reports that its net assets at market "value on Sept. 30, 1958, fund Group High Whitehall of balanced rates last week Bank rate had Whitehall's Net i/ , Prelude to Treasury Borrowing bringing into line of the discount rate with The money , material at Bank rate and invest these funds at that wealth in the form of ago. our they are still not large. Nonetheless, with the at the low level of 2%, the temptation to borrow the Federal Reserve Banks at the depressed Central discount rate money ages: enrich , but in spite of this . to them several months more security* Therefore, it is not expected that there will be any appreciable pick-up in discounts and advances with the Federal Reserve Banks. Borrowings from the Central Banks have been on the increase, of action soundly diversified ownership' in¬ pil, 43%: chemical and drug, Concerning securities in indus¬ terests—s\jich as those acquired 17%; metal , and mining, 12%; tries noted for their cyclical price through Financial Industrial Fund, manufacturing and miscellaneous, actions, the report finds "excel¬ Inc. and other mutual funds— 7.50%; electric utility, 2.25%; nat¬ lent values and generous yields", characteristically keeps pace with ural gas, 1.50%; and merchandis¬ in railroad bonds at price levels the future progress of the welling,- 1.50%. U.- S. Government relatively deflated in comparison known business enterprises which obligations amounted to 14.37%; with rail stocks. serve our growing requirements cash and receivables, .88% and for new and better products and Other-investments, .15%. services—all of which combine to was a leaves it below the yield which is available in the 91-day Treasury obligation. However, the 2%% discount rate is relatively close to the return which is available in the shortest Government guarantees his ultimate estate. He more increase, according to spokesmen in technical correction aimed at bringing the Cen¬ in line with rates in general in the money market. The discount rate usually does not remain below the bill rate for long, yet this recent upping of the Central Bank rate still "carving out his course "Technical Correction" discount rate tral Bank rate number of years with which .own success. • procedure it used when margin requirements to 70%. It was only a short time after the to . he has to work in / Pattern carrying equities (from 50% to 70%) was put effect that the Central Bank rate was upped. When margins recently went from 70% to 90%, it was likewise followed in about a week's time by the current increase in the discount rate. T|ie raising of margin requirements and the discount rate is part of q pattern which the monetary authorities are assets.-/Major industry , was same / - a in included chemicals, electronics, 7.1 %; and util¬ 13.3 % < ' raised from 50% increase in cost of were ities, 9.1%, In his letter to FIF sharehold¬ ers, President Charles F, Smith comments, "The investor—our fi¬ nancial planner of today—realizes -that his destiny is not wrapped up in the events of a few months, but, instead, rides the tide of the 21 Group invest, the report comments on their prospects. In the group of indus¬ 1957. /:•■•//'• * "u//'v V./:/ : tries'* : generally identified with / During the first three, quarters growth, it finas petroleum stocks pf / the current year dividends Offering : excellent quality and amounting to $1.20 per share were value. In ./the group/; noted for paid, of which 75 cents per share their relative stability of principal represented payments from net and income, both food and utili¬ realized capital gain. On Dec. 27, ties stocks are expected to advance Securities pretty much the investments , v: The Federal Reserve Board in allowing the Federal Reserve to increase the discount rate from 2% to 2*6% followed & Co.r As of Aug. 31, 1958, • investments in/the drug in¬ dustry- accounted for 4.4% of the warning It urges a ' Banks and.Pfizer in the stock ions that " "extreme care" in with"a net asset compares market; ' Following are Sept. 30,' "inflation sentiment" $121,362,554, equivalent to a The action last week in raising the Central Bank rate from 2% to 2%% will probably not bring about an immediate increase in other borrowing rates, unless the money market is further tight¬ ened by the powers that be, and .a sharp and more than seasonal demand for loanable funds develops. The credit limiting measures of the monetary authorities appear to be in a neutral area, for the time being. * " : ' long depressed industries, that; term growth potential of the drug far below/their high prices of industry by making initial pur¬ chases Of Bristol-Myers Co.; Eli recent years." "/*■/*/''/ + / United States arid Foreign Se¬ •"-"/ Recalling its warning earlier in Lilly & Co.; McKesson & Robbins curities Corp., closed-end, invest-; tlie/year against over-pessimisiri, Co.; Merck & Co.; Norwich Pharmerit company,/ reports an indi¬ the study suggests that current macal Go.; Parke/ Davis & Co.; cated month, and interest rates. the $.11.86 from $31.25;/ . by the Treasury early $12,000,000,000 refunding operation the end of November. Nevertheless, a rising Central Bank rate, whether ahead or behind the other money rates, does not forecast lower next will grow by more than 30 million rate average ■}^,"vl ■.> /> •//. A. similar/ disparity Reserve with the other open market money rates was taken in advance of some $3,000,000,000 of new money raising the long-term outlook for our: economy in the creases in holdings' 'were irv shares" lies^inc!/^/////,,:!: //v "/It notes .that The Federal Re/ 1958 Annual Report, the Fund's Of Iowa-Illinois Gas & /Electric* serve Board index, of over-allv management estimates gross na¬ Co.; / Rochester Gas & f Electric production has risen to a point tional product will increase by Corp ; / Illinois Power Co.; San only 7% below its all-time peak, 48% during the next ten years to Diego Gas & Electric Co.; Minne¬ but-finds many basic industries $634 billion / and our population apolis-Honeywell Regulator Co.;/ lagging behind this Schering Corp.: Guaranty Trust' Governments on By JOHN T. CHIPPENDALE, JK. . change - Reporter Stock Purchases V ' ■■: ' blanch office at 60? Third Street under the management of John E. J#yffprsnn Lucas. Standard Life Ins.: 40 '■ The Commercial and Financial Chronicle (1804) i ■■ . . . Thursday, October 30,1950 . * INDICATES Securities Acme United Life Instance Co., Atlanta, Ga. stock (par $1) being offered for subscription by common stockholders shares for each two shares held ©f record June 30, 1958: rights expire on Nov. 17. Price —$0.25 per share to shareholders, and $7.50 for any un¬ subscribed shares. Proceeds—For working capital and at the rate of three new Underwriter—None. (N, Y.j American-Caribbean Oil Co. shares of common stock (par 200). Price—To be supplied by amendment. Proceeds — To discharge current liabilities and to drill ten wells. Un¬ derwriters—To be named by amendment, v Feb. 28 filed 500,000 ^ Bridgehampton Road Races Corp. (letter of notification) 15,000 shares of common stock (par $1) to be offered for subscription by stock¬ holders of record Nov. 1, 1958 on the basis of one new share for each four shares held; unsubscribed shares will be offered to current creditors in payment of all or part of claims, at-the rate of one share for each $4 of claims discharged; lights to expire about two weeks after mailing of offer. Price—$4 per share. Proceeds— To pay current creditors. Address — P. O. Box-506, Bridgehampton Road, L. I., N. Y. Underwriter—None. Oct. 23 it Bullock Fund, Ltd., New York 24 Oct. shares 3^ American International Bowling Corp. 28 filed 770,000 shares of common stock (par 10 cents). Price—$3 per share. Proceeds—To acquire and manage bowling alleys. Underwriter—Netherlands Se¬ curities Co., Inc., New York. ; .. filed' (by of amendment) capital stock (par $1). Proceeds—For investment. additional 750,000 Price — At market. an ; - 7 Oct. American Mutual Investment Co., Inc. capital stock. Price—$10.20 share. Proceeds—For investment in first trust notes, second trust notes and construction loans. Company may develop shopping centers and build or purchase office buildings. Office — 900 Woodward Bldg., Washington, D. C. Underwriter — None. Sheldon Magazine, 1201 Highland Drive, Silver Spring, Md., is President. Dec. 17 filed 490,000 shares of per American TelemaS! Service, Inc. Feb. 17 filed 375,000 shares of common stock (par $1) Frice—$4 per share. Proceeds—To purchase equipment and supplies and for working capital and other corporate purposes. Office—Salt Lake City, Utah Underwriter Amos Treat & Co., Inc., of New York. Change in Name —Formerly United States Telemail Service, Inc. • Ampal-American Israel Corp., New York 10-year discount convertible debentures, series E. Price—61.027% of principal amount, payable in cash or in State of Israel Independence Issue or Development Issue bonds. Proceeds—For develop¬ ment and expansion of agricultural, industrial and com¬ mercial enterprises in Israel. Underwriter—None. State¬ Aug. 8 filed $3,289,100 of ment effective Oct. 21. - Angelica Uniform Co., St. Louis, Mo. Opt. 6 filed 150,000 shares of outstanding common stock. Frice—To be supplied by jamendment (expected at $10 per share). Proceeds — To selling stockholders. Under¬ writers-—Scherck, Richter Co., and Dempsey-Tegeler & Co., both of St. Louis. Mo. Offering — Expected this ^ writer—None. / it Cedco Electronics, Inc., Erie, Pa* 7, (letter of notification) 99,900 shares of common stock (par 10 cents). Price—$3 per share. Proceeds— ^ Central Electric & Gas Co., Lincoln, Neb. Oct. 28 filed $2,000,000 of convertible subordinated deben¬ tures due 1973 and 20,000 shares of cumulative preferred stock ($50 stated value per share). Price—For preferred stock, $50. per share; and for debentures, to be supplied by amendment. Proceeds—To repay bank loans, for investments and for construction program. Underwriters —Paine, Webber, Jackson & Curtis and Stone & Webster Securities Corp., both of New York. / • • Chemirad Corp., East Brunswick, N. J. (11/5) ; Arvida Corp., Miami, Fla. (11/18-21) Oct. 28 filed 2,500,000 shares of class A-common stock June 30 ' . ■; ; .; •,?. ■ ;■• ■' 1 *v v Anita Cobre U. S. A., Inc., <par $1). Price—To be supplied by amendment (expected to be approximately $11 per share). Proceeds—Together with other funds, will foe used for development of the company's properties and for working capital. Under¬ writers—Carl M. Loeb, Rhoades & Co. and Dominick & Dominick, both of New York. -Automation Instruments, Inc. Oct. 7 (letter of notification) $250,000 of 6% 15-year convertible sinking fund debentures to be offered for subscription by stockholders of record Oct. 1, 1958. Un¬ subscribed shares to public. Price—90% of face amount (in denominations of $100, $500 and $1,000 each). Pro¬ ceeds—To retire notes payable to bank and others and for working capital. Office—401 E. Green Street, Pasa¬ dena, Calif. Underwriter—None. ... , v. . - Autosurance Co. of America Oct. 16 filed 250,000 shares of common stock (par $2.50). Frice—$5 per share. Proceeds—To increase capital and surplus. Office—Atlanta, Ga. Underwriter—None. Bankers Fidelity Life Insurance Co. Fel>. 28 filed 258,740 shares of common stock (par $1) ©f which 125,000 ; shares are to be offered publicly .and 133,740 shares to employees pursuant to stock purchase options. Price—To public, $6 per share. Proceeds—For expansion and other corporate purposes. Office —At¬ Cinematic II Productions, Inc. (letter of notification) 300,000 shares of common {par 10 cents). PricS^-$l per share. Proceeds— For working capital. Office — 937 Acequia Madre Rd. Santa Fe, N. M. Underwriter—Watson & Co., Santa Fe stock N. M. O Clary Corp. Aug. 27 (letter of notification). 75,000 shares of common stock (par $1) being offered for subscription by common stockholders of record Oct. 15, 1958 on the basis of one new share for each 12 shares held (with an oversubscrip¬ tion privilege); rights to expire on Nov. 7. Price—$4 per share. Proceeds—For working capital. Office—408 Junipero St., San Gabriel, Calif. Underwriter—None, Clute Corp. Underwriter—None. , Bankers Management Corp. (11/14) 10 filed 400,000 shares of common stock Feb. (par 25 cents.) Price—$1 per share. Proceeds—To reduce out¬ standing indebtedness and for working capital. OfficeHouston, Texas. Underwriter McDonald, Holman & — Co., Inc., New York. Aug. 21 (letter of notification) 300,000 shares of common stock (par one cent). Price—$1 per share. Proceeds—To pay additional costs of construction; and for retirement of obligations and working capital. Office — c/o John Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter —Lowell, Murphy & Co., Inc., Denver, Colo. April 14 filed 8,934 shares of common stock. Price—At ($100 per share). Proceeds—For general corporate Underwriter ville, Ky — Bankers i ■■ Bond Co., Louis¬ Bowling Corp. of America (11/3-7) Sept, 11 filed 450,000 units, each consisting of one share (par 10 cents) and two common stock warrants, one warrant to' expire 18 months from the date thereof, exercisable at $3.25 per share, and one warrant to expire 30 months from the date thereof, exercisable at $3.50 per share. Price—$3 per unit. Pro¬ ceeds—For working capital. Underwriter—Charles Plohn purchase & Co., New York. Colonial Aircraft Corp., Sanford, Me. (11/10-14) 8 filed 346,492 shares of common stock (par 10 cents). Price—75 cents per share. Proceeds^—To reduce loans, make certain capital improvements and for work¬ ing capital. Underwriter—Mallory Securities, Inc., New York. - • of common stock / f Oct. 123 filed 111,489 ; shares ofcommon stock .(par $1.33 Is ). Price—To be supplied by amendment. Proceeds; —To. selling stockholders. Underwritcrs-7-Kuhn, Loeb <& Co., New; York, and A. C. Allyn & Co., Inc., Chicago, I1L Co^umero-'Fowar^Cbi" Aug; 29 filed 150,000 shares of preferred stock-(no par). Price—To be supplied by amendment Proeeeds-^To- re¬ pay short-term bank loans and for. (expansion and im¬ provement of service facilities. Underwriter — Morgan Stanley & Co., New York. Offering—Postponed indef¬ initely. J. •; 7 , -/ .\\f-.TiV 7, " '•/ 7 Counselors . Feb. Research Fund, Inc.,. St. Louis# Mo. 100,000 shares Of capital stock; (par one Price—At market. 7 Proceeds—For? investment. filed 5 cent). Underwriter — Counselors. Research Sales Corp.; SL Robert H. Green, is President. Louis. Cryogenic Engineering Co. Sept. 22 (letter of notification) 150,000 shares of class A common stock (par 10 cents). Price—$2 per share. Pro^ ceeds — For repayment of loan; purchase of plant and office equipment; raw. materials and supplies; and for working capital, etc. Office—U. W. National Bank Bldg;# 1740 Broadway, Denver, Colo. Underwriter—L. A. Huey^ Denver, Colo. Voting Trusts, Havana, Cuba. March 31 filed 767,838 units of voting trust certificates, each certificate, representing the ownership of one share of common stock (par one-half cent) in each of 24 Cuban companies. Price — To be supplied by amend* ment. Proceeds—For capital expenditures, exploration costs and other corporate purposes. Underwriter—None. Derson Mines Ltd. - June 5 filed 350,000 shares of common stock; Price—$1 share. Proceeds—For new equipment, repayment of loan, acquisition of properties under option, and other corporate purposes. Office—Toronto, Canada, and Em* porium, Pa. Underwriter—None. per Dow Chemical Co., Midland, Mich. Sept. 11 filed 175,000 shares of common stock (par $5) being offered to employees of the company, its subsidi¬ aries, and certain associated companies at $55.75 per share; subscriptions will be accepted from Oct. 13 through Oct. 31. By a separate registration statement the company plans to offer 12,500 additional: shares of the said stock to employees of Dow Corning Corp., a 50% owned subsidiary of the corporation. • Eastern Stainless Steel Corp. Oct. 6 filed $5,123,600 of 5% convertible subordinated initially to amount of debentures due Nov. 15, 1973, being offered stockholders on the basis of $100 principal debentures for each 14 shares of common stock held on Oct. 28,1958; rights to expire on Nov. 12. Price—At 100% of principal amount (flat). Proceeds — Together with other funds, will be used to retire approximately $4,000,000 of 4V2% notes, to increase plant facilities, and to finance additional inventories; Underwriter—Hornblower & Weeks, New York. it Electronics Communications, Inc. (11/17-21) 100,000 shares of common stock (par $1). Price—To be supplied by amendment. Proceeds^—For working capital and general corporate purposes. Office— St. Petersburg, Fla, Underwriter—Laird & Co., Corp., , New York. ' Ethodont Laboratories* Berkeley, Calif. Feb. 20 filed 300,000 shares of common stock. . Kt par expense Price— ($5 per share). Proceeds—To cover operating during the development period of the corpora* Mom Underwriter—None. Exploration Service Co., Ltd., Far Hills, N. J. Aug, 11 this company and Amkirk Petroleum Corp. (latter of Fort Worth, Texas) filed $400,000 of working interests (non-producing in Sinu Valley Project), to be offered for sale in $12,500 units (of which $8,000 Is pay¬ able in cash and $4,500 is to be represented by promis¬ notes). Proceeds—Exploration .Service Co. to ac¬ quire 80% interest in a certaio concession from Amklrk and for exploration program. Underwriter—Cador, Inc., Far Hills, N. J. sory Oct. par purposes ^ Coleman Engineering Co., Inc. filed $1,000,000 of 6% sinking fund debentures 'due 1973, with' warrants (a- warrant to purchase 30 common shares will be attached to each $500 principal amount of debentures or a total of 60,000 shares, and will be issued without the payment of additional con¬ sideration therefor). Price—100% of principal amount. Proceeds—To retire short-term borrowings; for antici¬ pated increases in inventory; and for. additions to work¬ ing capital for general corporate purposes. Underwriters —Wilson, Johnson & Higgins, San Francisco, Calif, and Lester, Ryons & Co., Los Angeles, Calif. Oct. 27 • Bankers Southern, Inc. , / ....(ii/io«ri4);\v-:.r.7/ v: Oct. 24 filed - lanta, Ga -• it Consolidated Foods Corp., Chicago, III. Cuban-Venezuelan Oil Inc. Sept. 9 filed 4,000,000 shares of common stock (par 10 cents), represented by voting trust certificates, of which 3,530,000 shares are to be offered to the public and the remaining 470,000 shares have been issued to nine per¬ sons, who may sell such shares at the market. Price—60 cents per share. Proceeds —For construction of racing plant and acquisition of equipment. Office—Charles-r town, W. Va. Underwriter—None. Phoenix, Ariz. Sept. 30, 1957, filed 85,000 shares of common stock. Frice—At par ($3.75 per share). Proceeds—For invest¬ ment in subsidiary and working capital. Underwriter— Selected Securities, Inc., Phoenix, Ariz. week. Refining Corp* vv •/ 16,1957 filed $25,000,000 of first mortgage bonds due Sept. 1, 1968, $20,000,00 of subordinated debentures due^ Oct. 1, 1968" and 3,000,000 shares Jf common stock to be! offered in units as follows: $l,00tr of bonds and 48 shares: of stock and $100 of debentures nine shares of stock. Price—To be supplied by ameiwinent. Proceeds — To> construct refinery* Underwriter—Lehman.Brothers, New York. Offering—indefinite. ; •*. '/r / , Charles Town Racing Association, Sept. 25 filed 165,830 shares of common stock (par 10 cents) to be offered for subscription by holders of com¬ mon stock of Cary Chemicals Inc. of record Oct. 31, 1958 at the rate of one shard for every four shares of Cary Chemicals common stock held; (with an oversubscription privilege); rights to expire on Nov. 25, 1958. Price—$2 per share. Proceeds—For expansion program. Under¬ writers — Lee Higginson Corp. and P. W. Brooks & Co., Inc., both of New York. • REVISED Commerce Oil Oct. 16 For general corporate purposes. Underwriter—Herbert Perry & Co., 70 Wall St., New York, N. Y. ITEMS Dec. Carrtone Laboratories, Inc., Metairie (New Orleans), La. July 2 filed 600,000 shares of common stock (par 10 cents). Price—$5 per share. Proceeds—For expansion, working capital and other corporate purposes. Under¬ ADDITIONS SINCE PREVIOUS ISSUK • in June 30 filed 315.000 shares of common general corporate purposes; ; Columbia Gas System, Inc. (11/6) 10 filed $25,000,000 of«debentures, Oct. series K, due Gas Co. and for construction program. Underwriter—To be determined by competitive bidding. Probable bidders: 1983. Proceeds—For acquisition of Gulf Interstate Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Merrill Lynch, J Pierce, Fenner & Smith and White, Weld & Co. (jointly). Bids-r-Tentatively expected to be received by company up to noon (EST) on Nov. 6, Federal. Commercial Corp. May 21 (letter of notification) 300,000 shares of common dock (par 10 cents). Price—50 cents per share. Pre¬ eeeds—To make loans, etc. Office — 80 Wall St., New York, N, Y. Underwriter—Dumont Securities Corp., New York, N. Y. Federal Pacific Electric Co. Oct 10 filed 70,000 shares of . stock (par $1). portion of the 111,910 shares pre¬ viously issued or set aside for issue in connection with recent acquisitions. Price—To be supplied by amend¬ ment. Proceeds—To selling stockholders. Underwriter These shares —None. are a common . Volume 188 Number 5790 . The Commercial and Financial Chronicle . . (1805) ★ Fluorspar Corp. of America Price To be supplied by amendment. Proceeds— To pay short-term bank loans and for additional invest¬ ments in domestic subsidiaries. Clearing Agent—Merrill Oct. 14 (letter of notification) 133,333 shares of common stock (par 25 cents). Price—$2.25 per share. Proceeds— For mining expenses, Office—4334 S. E. 74th Ave., Port¬ land 6, Ore.r Underwriter — Ross — Lynch, Pierce, Fenner & Smith, New York. Securities Inc., New i Gray Manufacturing Co., Hartford, Conn. Oct. Oct. Fremont VaUBy Inn Aug. 6 (letter of notification) 300,000 shares of common stock. Priced—At par ($1 per share). Proceeds—To erect : ceeds—For reduction of notes. Freeport, L. I., N. Y. and operate an activities building, comprising a restau¬ rant, cocktail lounge and coffee shop. Office—3938 Wilshire Blvd., Los .Angeles, Calif. Underwriter—Oscar G. Werner & Co., Pasadena, Calif. : Office—65 Pro-1 . . , 24 filed 75,000 shares of common stock (par 20 Price—To be supplied by amendment. Proceeds '—To purchase additional equipment and tooling for Proceeds—Fomcquisition of stock Of -National .Missile <St Electronics Carp^ additional working capital and other corporate purposes. Underwriter—Willis E. Burnside St Co., Inc., New York. >/.;v'/Y •; V,v •' • . ; . .sion nf operations and /::/(. i I: ★ Grand Union Co. • Oct. General Aniline & Film Corp., NowYork USTfUeiGBJU dares of common A stock (ne par) and 1£37,SOO shares of common Batock (par $1) Proceeds—To lhe Attorney General of the United, fitatas 29 filed organizers, incorporators, 'management* directors. Piiee $10 per share. Proceeds—For working capital^ and general corporate purposes. Under¬ 187,534 shares of stock outstanding , termined (par $5) 80% common stock > acceptance by " at of the DOtstanding Sunrise shares.' • GeneraM^iWic -Utilities Corp. (41/3) Oct" ! fited a mnximum 539,000 shares of common stock -jpar $5) to be offered tor subscription by common stockholders at therale of ^ new-share for each 20 shares- one X held on OcC M; 1958; rights to expire Nov. 21/195& on Great Amarican NaaRy Curp^ N. -V. Aug. 18 Bled 484,000. shares of class A stock (par • M) cents). Of thisstock, the company proposes to offer 400^000 shares and certain selling stockholders 40^000 shares, toe remaining 44,000 shares being subject to option to be offered for the account of the underwriters Hamilton Corp. (1/060)000) shares of common stock (par 23 cents). Price—$2 per share. Ptaeecds-^To acquire funds to test drill, explore, and develop oil and gas properties. . Underwriter—None, r [The registration includes an ad588,000 common shares issuable upon exercise 1,176,000 options rights previously offered (Oct. 19^ 1 ditional of 1957); -which - rights ) entitle the original J purchaser thereof to purchase one-half share of stock at 50 cental share at Hanna . t ,-V, ?, f ■ I \\ ' ' "T V • ' ■ ' 1 >" ' ' ~ *'■ V ' -s ■ , »•" • J£' ,. October 30 (Thursday) .• T'J' Chicago &Narth Western Ryw^JEquip. Trust Ctfs. : .(Bids - ; ■ - - ' ' CDT)'$1,875,000 -noMi October 31 ; Kentucky -Co. and ^ » Scherck, .{Milton X>.- Blauner . Richter Co., Inc.) Tenney Engineering, Co.) & Bank _ V;* the expiration of •; * ' vWovambar ■% ; r - r<Bids noon . .(Bids . U EST) November 7 Hanna 1 . , T. I. M. - (Blyth <Sc Co., underwritten) December 9 Read & <fc Co. Co. . November 10 (Bids $50,000,000 Texas Power & to be December 18 --Bonds (Bids Foods Corp Equip. Trust Ctfs. $6,450,000 (Kuhn, Loeb & Co. and A. C. Allyn & Co.. Inc.) -(Kuhn, Loeb & Co.) 100,000 November 12 (Bids noon shares November 14 Holman <fc November 17 Electronics . ., ■' & Co., Corp) Michigan Bell Montana Power $5,310,000 (Bids Common Co., Inc.) $400,000 Panama Common shares (Tuesday) Arvida Corp (Carl M. Class A Common Loeb, Rhoades & Co. and Dominick) $27,500,000 Co Dominick & for one 10 shares subscription share of of by stockholders convertible common stock preference held on or on the basis stock about for each,; 1, Nov. + Stockholders will have 45 days in which to exer-~ the rights. Price — At par. Proceeds —To repay' debts, acquisition of investments, and for general pur¬ Address—P. O. Box-348, Albany, N. Y. Under¬ ^Heli-Coil Corp., Danbury, Conn. 24 filed (11/18) $1,300,000 of convertible debentures due 1, 1973 and 180,000 shares of common stock (par $1). Price—To be supplied by amendment. Proceeds— For working capital and other corporate purposes. Busi-1 Underwriter—W. C. Lang¬ Bonds to be Invited) $20,000,000 (Republic of) (Lehman Brothers) $16,700,000 to be Invited) Bonds $8,000,000 Southwestern Bell Telephone Co (Bids to be Invited) $110,000,000 Utah Power & Light Co. (Bids to be Invited) Debentures Bonds $20,000,000 Hoaglantf A Dodgo Drilling Co., Inc. shares of capital stock. Price—$10: share. Proceeds—To be used in part for the ex¬ ploration of mines and development and operation of mines and in payment of indebtedness. Office—Tucson, per Ariz. Bonds Bonds Pennsylvania Power Co common (pai' $1), ■ Price—$5 per share. Proceeds—For payment of past due accounts and loans and general > working capital. Office — 35-10 Astoria Blvd., L. I. C. 3, N. Y. Underwriter—Albion Securities Co., Suite 1512, 11 Broadway, New York 4, N. Y. June 12 filed 27,000 Debentures $40,000,000 Co Moore-McCormack Lines, Inc. (Bids November 18 $10,000,000 (Kuhn, Loeb & Co. and Lehman Brothers) $24,000,000 (Monday) 100,000 Telephone (Bids to be invited) (Friday) Communications, Inc (Laird $17,000,000 Bonds (Bids to be invited) Equip. Trust Ctfs. Bankers Management Corp (McDonald, Bonds (Bids to be invited) (Thursday) -(Bids to be received) November Preferred Laclede Gas Co 13 Development Corp. (11/1) of notification) ' 22,820 shares of non¬ convertible preference stock (par $12) to be (letter stock (Morgan Stanley & Co.) $15,000,000 Gulf States Utilities Co $2,610,000 Norfolk & Western Ry. 23 Oct. 22 Postponed Financing Common (Wednesday) CST) Nov. 21. Heliogen Products, Inc. (letter of notification) 28,800 shares of 111,489 shares. Equip. Trust Ctfs. on ness—Manufacturer of tools. Consumers Power Co Illinois Central RR share for each new expire ley & Co., New York. Common Tishman Realty & Construction Co., Inc. filed Nov. (Thursday) to be received) j Heartland Oct. Oct. $12,500,000 Norfolk & Western Ry Common . writer—None. (Tuesday) invited) . poses. Light Co (Bids and Halsey, $30,000,000 , 10 shares then held; rights* Price—$42.50 per share. Pro¬ ceeds—To become part of the general funds of the com¬ pany and will be applied toward the cost of the com¬ pany's construction program. Underwriter—None. : ; one cise .XMallory Securities, Inc.) $259,869 Consolidated of voting Bonds . filed of . ; Price—To Co., Ltd. 84,700 shares of common stock (par $20) being offered for subscription by holders of its outstand¬ ing common stock of record Oct. 15, 1958, at the rate 8 offered (Wednesday) to be invited) 9 , $70,000,000 shares held. Light Co. I - ; 149,633 shares of common stock (par $25) being offered for subscription by common stockholders of record Oct. 21, 1958 at the rate of one new share for each 10 shares held; rights to expire on Nov. K17, 1958. Price—$56 per share. Proceeds—To repay bank loans and for construction program. Underwriters—Putnam 8s Co., Hartford, Conn.; Chas. W. Scrantpn & Co., New Haven, Conn.; and The First Boston Corp., New York. 1 / 260,000 shares December 16 shares (Monday) / -!-Cc>iimion (Tuesday) share for each 3.45 one Hartford Electric will -Bonds (Bids to be received) • 1958. Inc. Inc.) ■; Telephone & Telegraph Co.—Debens. December 10 Bonds '; > $50,000,000 Philadelphia Electric Co 313,038 / / : 1 -.-..-—-Common Inc.) of Oct. Oct (Tuasday)./; 1^; E., Inc._ • share for each 16 shares of the parent's stock held. G Hawaiian Electric . . (May be Merrill Lynch, Pierce, Fenner & Smith) 700,060 «hazai $20,000,000 Colonial Aircraft Corp , shares Public Service Electric & Gas Co . (Friday) ; (Tuooday)'' Pacific Gas & Electric Co.— Minins Co., Clavaland, Ohio (tt/7) pany is now known, as Hanna Coal & Ore Corp. . /—-./ Common stockholders—not .Stuart Son) 206,446 com¬ be supplied by amendment. Proceeds—To reduce bank indebtedness. Underwriter—None. Present Name—Com¬ j (Offering to stockholders—underwritten by Blyth & Co., Inc.' '•; * ;and The First Boston Corp.) 110,000 shares ' ' Bonds Natural Gas Pipeline Co. of America (Dillon, & . Southern Bell ' Mining Co (Offering to , Debentures EST) $25,000,000 a.m. - (Thursday) Indiana & Michigan Electric Co : \ .Common (Offering, to stockholders of Cary Chemicals Inc.—underwritten by Lee Higginton'Corp. and P. W. Brooks & Co., Inc.) $331,660 Columbia Gas System, Inc Hilliard December 2 ,... Chemirad -Corp. o after ; holders of the latter.' Of the total, 181,606 shares are to parent at the rath of rate Union l., , , remaining 131,432 shares are to be offered to the minority shareholders of the mining company at the ' .Common , • Eastman Dillon, $10,000,000 (Bids to be invited) Navaiuber 5 (Wednesday) ',v". and J. J. B. Common / and ■ . '. (Offering ^tO stockholders—underwritten by Domlnick & V. Dominick) .'$289,135 - •; -. be offered td shareholder^ of the one Debentures Co.) .*i v.V.? />£■ November 25 , (Tuesday) tJ. S. Polymeric Chemicals, Inc 1 Co. Securities & ; . months : The Chicago & North Western Ry.__-Equip. Trust Ctfs. : ; ' : (Bids to be invited) $1,875,000 v / Tucson Gas, Electric Light & Power Co.—Common .Common . November-4 & $80^000,000 Corp. " 13 offering.] Oct. 17 filed 313,038 shares of common stock to be offered for 'subscription by company's shareholders (other than the M. A. Hanna Co., the parent), and by the stock- - , (Offering to stockholders—underwritten by Blyth Ss Co., Inc. (Offering to etockholders-^underwritten by William R. Staats. '. "J-.: Co.)- '101,933.. shares '•»,-v .be.Invited) Kentucky Utilities Co.__^ . 25,000 shares to / ,;••>/November 24. (Monday) $2,587,500 .Common Co.,- Inc.) , Langley & Co.). 180,000 shares Lemon % ■' V $500,900 Inc.____ 'i(Mflton I* -Blauner Valley National C. (Bids (Johnston, Common Debentures & Common State Loan & Finance • Bonds Sf " Pacific Telephone & Telegraph Co.-£^^D(d»cnftBres agent is Merrill Lynch, 530,000 shares Tenney Engineering, Inc , y Common : -Pierce,.Penner & Smith) (The •« >v 'i ••••* Heli-Coil Corp...Debentures r V-. / (W. C. Langley & Co.) $1,300,000 /V Heli-Coil Corp. $1,350,000 Kentucky Jockey Club, Inc . '• ;» Common fcCharles Plohn .& Co.) . General Public Utilities Corp. •' ( Offertog 4©-^stockholders—clearing / • • (W. Bowling Corp. of America— •. /. r •. (Offering to stockholders—underwritten by Stone &; Webster Securities':,corp.) $2,478^64 Bonds November 3 (Monday) y : t'f* t ^ Common v:-k (Woodcockv Hess, MoyerCoo Inc.; Stroud; • and Butcher &.ShfnerdX 75,,000 shares,4? . " Lynch, Pierce, Fenner and Smith; Paine, -Wtebber, Jackson & Curtis;. Smith, Barney & Co.; White, Weld &> ;• f. Co.-ead F. JSheKstadt & Co.) $9,000,000 s 1 G-L Electronics Co., Inc. ; t, - (Friday) (Metrlli: . * ; '*■ /-.> General Public Service Co Grace Line. :Ihc.—r.-i--. i ; •> bidden; Oil & Gas Oct. 22 filed mencement «of such > Probable Lynch, Pierce, Fenner & Smith and White, Weld & Col (jointly); Stone & Webster Securities Corp.; and Salo¬ per ■4,^4-.^ bidding. poned.-'-— fttoe—To be supplied by amendment. ?Proceed»^-Fai working capital and~ other corporate purposes. Underwriters—Joseph Mandell Co. mid Louis L. Rogers Cq% both of .New York,, on a best efforts basis. ::: • competitive mon Bros.: & Hutzler arid0Eastman Dillon/ Union Se¬ curities & Co. (jointly); Bids^-Had been expected to bo received on. Sept. 15, but has been indefinitely post¬ least l'r.~, - ? by Halseyi Stuart & Co. Inc;; Ltoman Brothers; Merrffft Corp. at the rate of one share Union stock for each 2.409 shares of Sunrise The offer is * subject to stock. ■ . ' redeem and retire $17,-000,000 principal amount of 4%^b first mortgage bonds due 1987. Underwriter—To be de- of Grand Underwrtter-rTo he determinedby competitive bidding Probable bidders! Blytk A Co., Inc^ and The Fint Boaton ^Corp. (jOtatly iLKuhiuLoeb f. A- • Co.;. Brothers, and G10re, Forgan A Co. (jointly). TTWf 1hl been scheduled to ke received up to 3:45 pjn. (EDT) on vlfay 13atRoom654,161 IndianaAve., N. 'W., Washing¬ ton 25, D. CU/bat kidding lias been postponed.v . Utilities Co. .Aug. 14 ffied 417(909)900 of first mortgage bonds, serleer A, due 1968. 'proceeds—Together with cash on hand, ta r..;ri':\*:n common /.' . . Gutf Gtataa ' yZ, to be offered in exchange for of Sunrise Supermarkets Jan. 14, writer—None. Underwriters—. /; \'I •«nd/or Woodcock, Hess, Moyer & Co., Inc., Stroud & Co., Inc., and Butcher, & .Sherrerd, all of Philadelphia, Pa., and four other firms. , . other purposes. ;*Z " " warrant * to the, company's magnetic laminations program; to discharge short-term bank loans; and for working capital; expan- . Un¬ purposes. Guardian Insurance Corp., Baltimore, Md. Aug. 16/4957, filed 300,000! shares of common stock, at which 200,000 shares are to be publicly offered and the remaining100,060 shares reserved for issuance upon •«seise cif warrants which are to be sold at 25 cents pes cents). Sept. 29 fUed5Q0,0()0 shares of common stock/(par 18 cents), of which 106*000 shares are to be sold for the account of selhngrtockhfllders. Price—$2.25 per share. Price—To be supplied by amend¬ Proceeds—For general corporate derwriter—None. • /■•-. Albany Ave., Underwriter-—None. common ment. com¬ ★ €14- Electronics Co.j Inc., Camden, N., 4. (14/18)i Get. subscription by each four shares held. (letter of notification) 300,900 shares of stock (par one cent)/ Price—$1 per share." X < filed 90,218 shares of capital stock (par $5). to stockholders5 of record Nov. 25, 1958 at the rate of one new share toir j 23 mon 28 be offered for -A- Gibraltar Amusements, Ltd. York, N. Y. 41 Underwriter—None. Indiana & Michigan Electric Co. (-11/6) Sept. 26 filed $20,000,000 of first mortgage bonds due Nov. 1, 1988. Proceeds—To retire bank loans used for construction program. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Securities & Co.; The First Boston Corp.; Harriman Ripley & Co. Inc. Bids— Expected to be received up to 11 a.m. (EST) on Nov. 6. Continued on page 42 > The Commercial and Financial Chronicle 42 . 1958 Thursday, October 30, •< $11.50 to public. Washington, D. C. of common stock (par one Proceeds—To develop and Industrial Minerals Corp., July 24 filed 600,000 shares cant). Price—$1 per share. operate graphite and mica properties in Alabama. derwriters—Dearborn & Co. and Carr-Rigdom & both of Washington, D. C., on a best effqrts Industro Transistor Corp. Un¬ Co., Underwriter—None. & Waltham, Mass. Martin ($.1/3-7) $U2.50 f>er -unit). Proceeds — For completion of La tenia plant, and for general corporate purposes. derwriters— The Kentucky Co., Louisville, Ky., < the Un¬ and Members "in the 18 Proceeds—To refund $10,000,000 4%% drilling, exploration and development of oil and properties. Underwriter—None. Stop order proceed¬ ings instituted by SEC on Oct. 6. Montana — Underwriter—To be determined by competi¬ tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman Brothers, Merrill Lynch, Pierce, Fenner & Smith and BefaSholdt Gardner (jointly); Eastman Dillon, Union Securities & Co.; Stone & Webster Securities Corp. Bids —Had been expected to be received up to 11 a.m. (EDT) on Ju|y 6, but offering has been postponed indefinitely. Montana ; Libbey-Owens-Ford Glass Co. Oct. 24 filed 2L858 shares of (common stock (par $10) for sale to employees holding series N options granted pursuant to the -company's Employee Stock Option Plan. Uf« Insurance Securities Corp. Msxtih 28 filed 1,000,000 shares of capital stock (par $1). Price—$5 per share. Proceeds—To acquire stock control *<young, aggressive and expanding life and other in¬ companies and related companies and then to operate such companies as subsidiaries." Underwriter— First Maine Corp.. Portland, Me. Oct. 28 filed £922,500 of 5%% subordinated convertible debenture <due Dec. T, 1970,to be offered in exchange on the basis ©f jequal principal amounts for the out¬ standing *3% convertible subordinated income notes due 1967 of the Calidyne Co., Inc., a subsidiary. The com¬ pany will offer to purchase at face -value Calidyne notes from those stockholders who desire to sell their notes for cash, .at a price equal to 100% of their prin¬ cipal .amount. . long Island Casualty Insurance Co. Sept. 29 filed 100,000 shares of capital stock (par $2.50) be offered for subscription by holders of the comwW* tPKsaently .outstanding 55,975 shares. Price—$6 per snare. Proceeds-—To beadded to capital funds. Office aty/L. I., N. Y. Underwriter—None. to mingo Plaza, - Price—To be related to the current market of Montana. price on the New York Stock Exchange. Proceeds—To¬ gether with other funds, to carry on the company's con¬ struction program through 1959. Manager-Dealers — Smith, Barney & Co., Kidder, Peabody & Co. and Blyth & Co., Inc. Offering—Expected this Fall. Motion • Picture Investors Inc. July 11 filed 200,000 shares of common stock (par $1), Price—$10.75 per share. Proceeds—For investment. Of¬ Bldg., Kansas City, Mo. Un¬ fice—1000 Power & Light derwriter—None. National Beryl A Mining Corp., Estes Park, Colo. May 16 (letter of notification) 2,916,800 shares of non¬ assessable common stock (par one cent). Price—10 cents per share. Proceeds—For .mining expenses. Underwriter —Birkenmayer & Co., Denver, Colo. stock. (letter of notification) 50,000 shares of common Price—At par (50 cents per share). and procure persons to implement To train the projected plan of development Office—1406 Pearl St., Western Securities Co., Boulder, Colo. Boulder, Colo.- Proceeds— and carry and operation. Underwriter- Natural Gas Pipeline Co. of America (11/7) of first mortgage pipeline bonds, 1, 1978. Price—To be supplied by amendment. Proceeds—Tx> reduce bank loans, incurred for the com¬ pany's expansion program. Underwriters—Dillon, Read & Co. Inc. and Halsey, Stuart & Co. Inc., both of New Oct. 16 filed $30,000,000 due Nov. York. Nayfor Engineering & Research Corp. } ■ • 23, 1958,Pvhich were not held on that date persons^who were stockholders on March 16, 1057* "eligible' shares" iri: connection with, offer made to stockholders in May,>1958;; (5) 29,577 record May by and which*were not an common into ^shares which ' the latter debentures are convertible; and 25,800 common shares, to be issued to Linden &Co. Proceeds—For general corporate purposes, including'payments to Denver Research Institute, for testing otf rthOjcpmpany's; process for. the production of shale oil. .Underwriter—None. - ' -r the O. T. C. Enterprises Inc. ^letter of notification) 23,200 shares of com¬ mon class B stock (par $1). Price—$5 per share. Pro¬ ceeds—For completion of plant plans; land; construe-* March tiori St., 6 and operating-expenses. * Office—2502 N. Baltimore 18, Md. Underwriter—Burnett Sparks, Md. Calvert & Co., 'V 'r —" ^ Pacific Telephone & Telegraph Co. (1J/J8) Oct. 24 filed $80,000,000 of 32-year debentures due Nov. 1, 1990. - Proceeds — To repay advances from American Telephone & Telegraph Co;, the parent. Underwriter—• To be determined by competitive bidding. Probable bid¬ ders: Halsey, Stuart & Co. Inc.; Morgan .Stanley Bids—Expected to be received on Nov. 18. & Co. - Co. 1,594,604 shares of common stock to be subscription by holders of outstanding com¬ mon and preferred stock on the basis of one new share for each eight common or -preferred shares held. Price Oct. filed 24 offered for Proceeds—To repay advances Telephone & Telegraph Co. Underwriter —Af par ($100 per share). from American Control—Of the 832,000 shares of —None. stock (par $100) 6% preferred stock and 11,936,835 shares of common (par $100) outstanding as of Oct: 24, 1958, there were owned by the American Telephone & Telegraph Co. 648,957 • preferred shares and 10,790,943 common shares. Panama (Republic of) v Oct. 9 filed $16,700,000 of external secured bonds of 1-958 to mature April i; 1988. Price — To be supplied by amendment. Proceeds — To retire certain outstanding debt and for Panama's feeder road program. Under¬ writer—Lehman Brothers,' New York. porarily postponed; - - r. i'. Inc., Pasadena, Calif. writer—Investors - stock "(par $1). investment. Under¬ Investments Corp., Pasadena, 'Calif. market. Price—At Offering—Tem¬ :• May 19 filed 20,800 shares of common Proceeds—For PeninSiiUir Metal Products Corp. (leftel of notification) 10,000 shares of common (par $l)r Price—At market (not to exceed an ag¬ gregate of $100,008). Proceeds—To a selling stockholder. Office—1365 Jarvis, Ferndale, Mich. Underwriter—Wjn. C. Roney & Co., Detroit, Mich. ; Oct." 6 stock Pen n-Texas .Corp. 1,488,438 shares of common stock (par $1) being offered for subscription by common stockhold¬ ers at the rate of one new share for each three shares held as of Oct. 15,1958; rights to expire on Oct. 31, 1958. Sept. 25 filed Pricp—$5 At par banks, Morse Robert per H. from Fair¬ & Co.; Underwriter—Bear, Steams & Co., share. Proceeds—To be used to buy Morse, Sr., 297,231 common shares of Sept. 29 (letter of notification) 300,000 shares of cumu¬ lative voting and non-assessable common stock. Price— ($1 per share). Proceeds—For organizational ex¬ 11 Fla-; dencirig 1;' options'/to1 purchase common shares, • which, warrants^arfe'-^CfCisahle'' at 88Hcents per share (esti¬ mated prodecds,^ $522.650) ;- ' (2) •' 297,17T"shares, to; be offered to* 'holder^ Of ^outstanding S1/* % convertible' *'debenture!"'" dtifeI OCt. 3l/ 1964 at the; conversion price of 66% cents/jcM^r Share' (ho cash proceeds to the company) ;x (3 > 351*363 '-common shares, issuable - upon- Conversion of outstanding 4/2% convertible debentures at the con¬ version "price of'$2 per share (no cash proceeds to the company); (4) $59,155; of -4%% convertible debentures to be'offered' to ^certain"stockholders of the'company of Peckman Plan Fund, National Educators Finance Corp. June 4 Hialeab, l^iale^h; Fla. * Pacific Telephone & Telegraph July 1 filed 100,000 shares of common stock (no par) stock will be offered only to bona fide residents out ilieg dlectronics, Inc. Power Go. The of surance Power Co. July 1 filed $20,000,000 of first mortgage bonds due 1988. Prbceeds Together with other funds, to be used to repay $15,500,000 in batik loans and tq carry on the company's construction program through 1959. Under¬ writer—To be determined by competitive bidding. Prob¬ able bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.; Merrill Lynch, Pierce, Fenner & Smith, and Stone & Webster Securities Corp. (jointly); White, Weld & Co.; Eastman Dillon, Union Securities & Co.; Kidder Peabody & Co., Smith, Barney & Co. and Blyth & Co., Inc. (jointly). Bids—Had been expected to be received up to noon (EDT) on Aug. 26 at Room 2033, Two Rector St., New York, N. Y., but company on Aug. 22 again decided to defer sale pending improvement in market conditions. bonds due efforts basis. Lake City, Utah gas first mortgage bonds Laughtin Alloy Steel Co., Inc. Aug. 28 filed $500,000 of 6% subordinated callable de¬ bentures due June 30,1968, and 150,000 shares of common stock (par 10 cents) to be offered in units of $100 of debentures and 30 common shares.-Price—-$100 per unit. Paaoeeds—Together with a $175,000 mortgage loan from the American Brake Shoe Co., will be used to meet ex¬ penditures in acquiring latter .company's South San Francisco foundry and for working capital. Offices—Las Vegas, Nev,, and .South San Francisco, Calif. Underwriter —-Sam Watson -Co., Inc., Little Rock, Ark., on a best ; —For *. of first mortgage j ; ' working1 capital."* Office—11.' Flamingo Plaza, Underwriter— Henry & Associates, Inc., -X — Minerals Consolidated, Inc., Salt Laclode Gas Co. June I1 Fla. i Aug. 29 filed 1,000,000 units, each consisting of one share of common stock (par 10 cents) and two warrants to pur¬ chase one common share. Price—$1 per unit: Proceeds ^keystone Custodian Funds, Inc. Oct. 27 filed <by amendment) an additional 1,000,000 shares of Keystone Custodian Fund Certificates of Participation, series K-l (par $1). Price—At 'market. Pro¬ 1063. Underwriter—None. Underwriter—None. Land Co., Kern County Gunal A Water Co., Victoria Land & Cattle Co. and Bequillas Cattle Co. - Francisco, Calif. San (letter of notification) 159,395 shares of common stock (par 25 cents) to be offered for subscription by stockholders of record Oet./15, 1958 on the basis of one new share for each five shares held; rights to expire Dec. 15, 1958. Unsubscribed shares may be offered to one or more persons selected by the board of directors. Price—$1.40 per share. Proceeds—To reduce bank loan; to increase working capital and for general corporate purposes. Office—617 W. 7th Street, Los Angeles,'Calif. County -■ *A ; - ic Oil Shale Corp., Beverly Hills, Calif. Merchants Petroleum Co. iKg «hares which may be purchased under the plan. Memberships in the plan are to be offered to eligible ceeds—For investment. ■/"' Oak Ridge, lnc. Oct. 8 company's Employee Investment and Profit-Sharing Pfem, together with 4,000 ahares of common stock, being the estimated maximum number of presently outstand- Kern Proceeds—For "investment; ket. Baltimore, Md. — Scherck, Richler XJo., St. Xouis, Mo. of Interests Of ' * it Northeast Investors Trust, Boston, Mass. Oct. 27 filed (by amendment) an additional 100,000 shares of beneficial interest (par $1). Price — At mar¬ 'C Sept. 4 (letter-of notification) 100,000 shares of common stock (par '$f)V Price — $3 per share. Proceeds — For St., ^kwn ^ounty land Co. 24 filed £100,000 Co., — ★ Mercantile Acceptance Corp. Oct. 14 (letter of notification) $29,000 of 12-year 5%% capital debentures. Price—90% of lace amount: Pro¬ ceeds For working capital. Office — 333 Montgomery Rd„ (S otf which will not be separately transferable from the io twhich they pertain -prior to Dec. 1, 1959). Price —To be supplied by amendment (reported to be about due 1982. New York 38; N. Y. Underwriter Co., Inc., New York 5, N. Y. : ' way, sinking fund debentures, due July 1, 1978. Proceeds — Working capital and general corporate purposes. Price—To be supplied by amend¬ ment. Underwriter—Smith, Barney & Co., N. Y. Offer¬ ing, which was expected on July 2, has been postponed. Issue to remain in registration. bonds filed Fund, Inc., St. Paul, Minn. Broad-1 Greenfield administrative expenses./Office—150 corporate June 11 filed $25,000,000 of Sept 26 filed $2^300,000 of 6% first mortgage bonds due 1978, and 230,000 shares -of common stock (par $1) to be offered in limits ©f $100 of bonds and 10 common shares euoptayees of For Heller E. Mairs & Power Underwriter—None. Jockey Club, Inc. notification) 300,000 shares of common' (par 10 cents). Price—$1 per share. Proceeds— acquisition of additional gas and oil interests and' Price—$5 Proceeds—To reduce current indebtedness to & Co. Underwriter—Plymouth Bond Share Corp., Miami, Fla. V ' share. National Bank Bldg., St. Paul, Minn. plant site. Office—1605 Trapelo and Reillv, Hoffman & % r Exploration Co. Northwest Gas & Oil Aug. 6 filed 40,000 shares of common stock. Price—At market. Proceeds—For investment. Office—1002 First Sept. 15 (letter of notification) 9,340 shares of common stock (par $1) to be offered for subscription by common stockholders on basis of one share for each 12 shares held. Unsubscribed shares to be sold to certain stock¬ holders. The offering will be made sometime in October. ptf©e_$30 per share. Proceeds — For working capital Underwriters N. Y. York, New St., Aug. 22 (letter of Walter Underwriter—None. and acquisition of a 42nd E. stock per Jtek Corp. Oct. - Inc., Miami, Fla. Oct. 6 filed 100,000 shares of common stock. Investment Corp. of Florida Oct. 9 (letter of notification) 55,555 shares of common stock (par two cents). Price—$4.50 per share. Proceeds —For capital account and paid-in surplus. Office—At¬ lantic Federal Building, 1750 E. Sunrise Boulevard, Ft. • KautugKy unit; —122 Pearson, Murphy & Co., Inc. Co., Inc., both of New York. M. C. A. Credit Co., ■r Lauderdale, Fla. Price—$1 share. Proceeds — For the acquisition of properties option and for various geological expenses, test drilling, purchase of equipment, and other similar pur¬ poses. Offices—Wilmington, Del,, and Emporium, Pa. under (N. Y.) of com¬ Proceeds complete a two - way telecommunication mobile for test equioment and for working capital. Office —To per 150,000 shares of common filed ^ Northeast Telecommunications, Inc. (Jet. 20 (letter ol notification) 300,000 shares stock (par 10 cents). Price—$1 per share. mon Sept. 29 filed 350,000 shares of common stock. basis. Houston, Co., Inc* Houston, Tex. Mining Corp. LuHoc stock (par 10 cents). Price—To be related to the market price. Pro¬ ceeds—For working capital and to enlarge research and development department. Underwriter — S. D. Fuller A Co., New York. Offering—Being held in abeyance. ffeb. 28 working capital. Office—931 San Jacinto Bldg., Tex. Underwriter—T. J. Campbell Investment share to stockholders; Proceeds—$328,300 to redeem outstand¬ ing 5% sinking fund debentures and $189,200 to reduce short term bank loans. Office—Los Angeles, Calif. Un¬ derwriter—Quincy Cass Associates, Los Angeles, Calif. fund debentures. Price—$10.50 per 41 Continued from page i . . (1C06) MfMO shares of capital stock, to be offered suhpenptioa by holders ©f outstanding stock, on a rate basis. Any shares not so gold will bo offered on ap^atichaage basis to holders of outstanding 5% sinking PIP New York. writer—Waldren & 2s*' for penses and first three months' fice—1250 Wilshire Blvd., Los Aug. 1 filed $8,000,000 of first mortgage bonds due 1988. Proceeds—Td redeem a like amount of 5% first mort¬ operational expenses. Of¬ Angeles 17, Calif. Under¬ Co., San Francisco 4, Calif. Nadow Oil Tool Co. Pennsylvania Power Co. TJnderwriter—To be determined May 5 gage' bonds, due' 1987. stock (par one cent). by competitive bidding. Probable bidders: Halsey, & Co. Inc.; Kidder, Peabody & Co.; White Weld pay (letter of notification) 150,000 shares of common Price—$2 per share. Proceeds—To loan; to acquire fishing tools for leasing; and for Stuart & Co.; Volume 188 Number 5790 . The Commercial and Financial Chronicle . . Equitable Securities Corp., and Shields & Co. (jointly): Lehman, Brothers, Eastman Dillon; Union-, Securities & Co., Salomon -Bros. & Hutzler and- Ladenburg, Thalmann & Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith and Dean Witter & Co. (jointly). Bids — Tentatively had been expected to, be received up to 11 a.m. (EDT, on Aug! 27 but company on Aug. 22 decided to defei sale pending improvement in market conditions,,~A ■ ★ Perkin-Elmer Corp. ?v AA:1 V< •A'-" Oct. 22 (letter of notification) 8,115 shares Of common stock (par SI) to be offered to employees pursuant to Employee Stock Purchase Plan; Through'payrdfLtieduc- ' lions// Price—$20.19 per share. Proceeds—For working capital.h:Office ■ Main — Ave., wrder—None.A. A? Norwalk,. Conn. Plainview Country Club, Ine. (10/31-11/4) Sept. 29 (letter of notification) 300,000 sharespf common stock (par 10 cents);-Price—$1 per share. Proceeds—To acquire land and for construction of swimming pools and lockers and other uses. Office—Plainview, Long Island. New York. Underwriter—Sano & Co., New York, N. Y. de Leon Trotting Association, Inc. Aug. 7 filed 400,000 shares of common Stock (par ont cent) Price—$1.50 per share. Proceeds—To pay current liabilities; for new construction and working capital Office—Bayard,, Fla.* Underwriter—-Robert L. Fermar. Co., Inc., Miami, Fla. ^ -A. > Prairie-Fibreboard Ltd.-. // A;^A/Ao ^ Aug. 18 filed 209,993 shares "of purpose. Office ^Saskatoon, Saskatchewan Underwriter-^Allied Securities Ltd., and United Securities, Ltd., both of Saskatoon, Cariada. . / * • Preferred Risk Life Insurance Co. Sept. 8 filed 250,000 shares of common stock (par $1) Price—$4 per share. Proceeds—To increase capital and surplus. Office—Colorado Springs, ; Colo. Underwriter , , —None. •.•'•"V?• A , ' Financial Corp. ; : ' i' 7'7 A June 26 filed $1,000,000 of 15-year 6% series A sinking fund debentures due 1973, to be offered in denominations of $500 and $1,000. Price—At work '■'• fng capital and general corporate purposes. Underwriter Israel Corp.. New York, on a "best efforts —Rassco Offering—Expected late this Relur year. Corp. Octi 16 (letter of notification) 150,000 shares of common (par five cents). Price — $2 pef sare. Proceeds — For inventories and working capital. Office—1007 South, 21st Avenue, Hollywood. Fla. UnderwriterAName to be 'stock supplied by amendment. shares and 1, terms the of amendment). bentures are stock common be supplied by amendment. Proceeds—For working capital. Underwriter Citrus Securities Co r Orlando,.FlaJ'. ;V. *; v* * — " Reynolds Engineering & Supply, lncv Aug. 22 (letter of notification) 60,000 shares of commoi stpek (par $1). Price — $5 per share. Proceeds Foj working capital. Office—2118 N- Charles St., Baltimore 18, Md. Underwriter—L. L. Bost Co.. Baltimore, Md ' Petroleum Ltd., Alberta, June 26 filed 1,998,716 shares of Canada ; : '" stock (par $1/ to be sold .on behalf o1 common Of this stock, 1,174,716 sharew are the company and 824,000 shares for the account of cei tain selling stockholders- The company proposes to offc the 1,174,716 shares for subscription by its shareholder? the rate of (with an one new share for each oversubscription three shares helc privilege). The subscriptio; period -will be for 30 days following issuance of sub¬ scription rights. Price—To be supplied by amendment Proceeds—To pay off demand note, to pay other, indebt¬ edness, and the balance if any will be added to working capital. - Underwriter — Pacific Securities Ltd.; Van¬ couver, Canada. * A . ■—To stock. repay Colo. cipal amount. Price—At par ($1 share). per a* ★ Ross Mortgage & Investment Co., Inc; Oct. 16 (letter of notification) $218,525 repurchase guar¬ antee agreements with mortgage or deed of trust notes. Proceeds—For general funds of the company to be used for continued purchase and sale of real estate and deed St., of N. trust W., A""/ \ notes. Office—Investment Washingtoii,/D.fC... Under¬ ' * ' ' ,,\A7* 'A ' ; Routb Robbins Investment Corp. 7A. Seph 22 filed $1,000,000 of 10-year 6% cumulative con¬ vertible debentures and. 99,998 shares of common stock Price—Of debentures, at par (in units of $100 each) and of and stock, $1 per share. Proceeds — For investments working capital. Office—Alexandria, Va. Under¬ writer—None. * . ' * ~ A * Rural Telephone Co., Knox, Pa.. Sept. 29 (letter of notification) 3,000 shares of common (par ; $10) to be- offered to stockholders on the basis of one new share for each three shares held; rights will expire on Oct. 31, 1958. Price—$20 per share. Pro¬ ceeds—For installation, construction and. working cap¬ Underwriter—None. -Scientific-Atlanta, 7lncA ■ : ^ " jSept. 11 (letter of notification) 6,500 shares of common stock 1967 (the supplied of the by de¬ new Tishman Realty & Construction Co., Inc. to — For at general (11/10-14) Oct. Hotel presently (par $1). Price 100,000 outstanding shares of To be supplied by selling stockholders. Under¬ writer—Kuhn, Loeb & Co., New York. 'A stock — Proceeds—To .. Trans Caribbean Airways, Inc. (N. Y.) Oct. 6 filed $1,100,000 of 5%% convertible subordinated debentures, due Oct. 1, 1968. Price—100% of pirncjpal best efforts basis. a Co. filed 17 common amendment. 100%: of prin¬ corporate pur¬ Proceeds—To be added to the general funds of amount. , the company to replenish working capital expended ih Aug. 19 (letter of notification) $250,000 of 6% convertible debentures due Sept. 15, 1963 to be offered for subscrip¬ tion by common stockholders on a pro rata basis. Price— the Underwriter—None. acquisition bf aircraft. • • Shop Rite Foods, Inc., Albuquerque, N. Mex. Sept. 25 filed 35,383 shares of common stock (par $5) being offered for subscription by stockholders at the rate + Trice Oil & Gas Co., Longview, Texas Oct. 24 filed $4,400,000 of Participations in the com¬ pany's 1959 Oil & Gas Exploration Programs 5901,15902, 5903 and 5904, to be offered in minimum units of $5,000: Proceeds—To be used for acquisition and exploration of undeveloped oil and gas properties. Underwriter^ of None. At par. Proceeds—For working capital. Office — 3172 North Sheridan Rd., Chicago 14, 111. Underwriter—None one new share for each four shares held of record Oct. 21, 1958, rights to expire on Nov. 10. Price—$11,50 Proceeds—For equipment, merchandise suid^gen¬ Underwriters—First Southwest Co., Dallas, Texas; and Miner, Mee & Co., Albuquerque, ' ' . , . . ' .'. A " Newark, N. J. Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4,000 shares of 6% preferred stock (par $100) and;48,000 shares of common stock (par $1) to be offered In unite share. New Mexico. " Triton Corp., per . of $8,000.,pf debentures, 20 shares of preferred stock and; shares of common stock. Price—$10,240 per unit. acquire, own and operate interests in pro¬ ducing oil and gas properties.. Underwriter—Nohe. Off fice—11 Commerce Street, Newark, N. J. Timothy H. 240 Simplicity Pattern Co. Inc., N. Y. Aug. 15 filed 42,500 shares of common stock (par $1) Price—At the market or at a- price within a range not less than the bid price and not higher than the asking price quoted, on the New York Stock Exchange at the Proceeds—To Tungsten Mountain Mining Co. Aug. 11 (letter of notification) 100,000 shares o£ com¬ mon stock (par $1). Price—$1.50 per share. Proceeds— To extinguish present indebtedness, increase reserve for contingencies and working capital. Office—511 Securi¬ ties Bldg., Seattle 1, Wash. Underwriter—H. P. Pratt & Co., 807 SQge Bl^, Seattle 4, Whsh'.A A '"A' time offering. time to foregoing (par 50 cents) being offered for subscription by stockholders of record Sept. 10, 1958 on the common The shares will also be offered from such Exchange at a price within the Proceeds—To go to Joseph M. Shapiro, stockholder. Underwriter — Lee Higginson on range. the, selling Corp. New York. Offering—Indefinitely postponed. State stock Life, Health A Accident Insurance Co. (letter of notification) 50,000 shares of common (par $1). Price—$5 per share. Proceeds—To be invested in stocks and bonds and to acquire other life insurance companies. Address—P. O. Box 678, Gulfport, Miss. Underwriter—Gates, Carter & Co., Gulfport, Mis* ★ State Loan & Finance Corp., Washington, ... (11/18) ... p. C. Dunn is President. A Union Finance Corp., Tampa, A f Fla. Sept. 26 filed $500,000 of 6% 20-year sinking fynd con* vertible capital debentures due Oct. 15, 1978, Price — Proceeds—To be added to the 100% and accrued interest. general funds of the company and initially used to re¬ bank duce loans and short term Underwriter— notes. . Oct. 27 filed $10,000,000 debentures due chase class A of sinking fund subordinated 1978, with 1958 series warrants to common stock. pur¬ Price—To be supplied by amendment., Proceeds—To redeem and retire all of the outstanding 5% 10-year sinking fund subordinated de¬ bentures, due April 1, 1960. and all of the outstanding 5% seven-year sinking fund subordinated debentures, due. April 1,1960; the balance will be added to the com¬ pany's general funds to and short-term notes of be used to the reduce bank company. loans Underwriters— Johnston, Lemon & Co., Washington, D. C.; and East¬ man Dillon, Union Securities & Co., New York. ; Strategic Minerals Corp. of America, Dallas, Tex $2,000,000 of first lien mortgage 6% bond 975,000 shares of common stock (par 10 cents). Prim —For bonds, 95% of princmal amount; and for stock $? March 31 filed and share. Proceeds—To erect and operate one or mort Soul h west Shares, Inc.. Austin, Texas. Super Food Services, Inc., Chicago, III. Oct. 28 filed 110,000 shares of preferred stock, first series, and 110,000 warrants/ first series, to purchase a like number of common shares to be offered in units of one preferred share and able at one warrant (warrants are exercis¬ $2.50 per common share). Beil & Hough, Inc., St. Petersburg, Fla. pected this week. • Price—$20 per unit. Sept. purchase 6,347 common shares to holders of class A cap¬ stock, if converted to common shares on or before purchase 6,000 shares are being given to Central Illinois Securities Corp., which has subscribed to 25,000 of the units being offered. A total of 42,356 common shares are being offered to class A capital shareholders in exchange for said class A shares on a share for share basis.] • Tertnoy Engineering, Inc., New York (11/3) 25,000 shares of common stock (par 10 cents) and $500,000 of 6% convertible subordinated debentures due Nov. 1, 1968. Price—To be supplied by amendment. Proceeds — To retire outstanding bank loans, to cancel notes and for general corporate purposes. Underwriter —Milton D. Blauner & Co., Inc., New York. Thomas Paint Products Co. May 26 (letter of notification) 1,250 shares of common stock (par $10) and $37,500 of 6% serial subordinated series 1958, to be offered in units of one share of stock and $50 principal amount of debentures to be offered to stockholders on the basis of one unft for 30,000 shares 6% of price of outstanding preferred stock and for expansion Office — Room 938, Merchandise Mart, Chicago 54, 111, Underwriter — Eastman; Dillon, Union Securities & Co., Inc., Chicago, 111. OfferingExpected this week. ■ , , United Employees Insurance Co. April 16 filed 2,000,000 shares of common stock (par $5)« Price — $10 per share. Proceeds — For acquisition efl operating properties, real and/or personal, including office furniture, fixtures, equipment and office space, faf lease or purchase. Office — Wilmington, Del. Unas*writer—None. Myrl L. McKee of Portland, Ore., I« President. Oct. 24 A- r Merchants & Manufacturers, Inc., York New filed $500,000 of interests in the company's Employees Stock Purchase Plan for 1959, together with said The registration statement also includes an addi¬ 119,335 common shares, which may be optioned 75,000 common shares which may be issued under plan. tional stricted Dec. 31, 1958; and warrants to of notification) and working capital. 111. debentures (letter 26 or ital A.'" cumulative convertible preferred stock, 1958 series. Price —At par ($10 per share). Proceeds—To pay redemption Proceeds—To purchase outstanding shares of F. N. John¬ son Co. Underwriter—W. H. Tegtmeyer & Co., Chicago, [In addition, the company is offering warrants to Offering—Ex¬ United Cities Gas Co. it United Oct. 2 filed stock ital; Proceeds Sheridan-Belmont Proceed* outstanding indebtedness. Office—Littleton B. Ford Co., Windover Road Bldg., 1511 K. writer—None.'" offered be due March poses, including the financing of the cost of any acquisi¬ tions and new construction. Underwriter—Sheraton Se¬ per Underwriter—R. and $4,000,000 in exchange chemical .processing plants using the Bruce - Williami Process to beneficiate manganese ores. Underwriter- Memphis, Tenn. mortgage additional offers will be offered for public sale . Rocky Mountain Quarter Racing Association Oct; 31, 1957 (letter of notification) 300,000 shares common be ■ > Tip Top Oil & Gas Co., Salt Lake City, Utah ) \pril 15 filed 220,000 shares of common stock, of which iOO,000 shares are to be publicly offered. Price—$5 per/ »hare Proceeds—To drill two new. wells and for general'' •orporate purposes. Underwriter — Andersen-Randolph & Co., Inc., Salt Lake City, Utah offering — at of notification \ 27,272 shares of 70-cenl preferred stock (par $5) and 27,272 sharea of common stock (par 10 cents) to be offered in unite jf one share to each class of stock Price—$11 per unit Proceeds —For working capital Office — 111 E. Main St.; Morristown, Tenn. Underwriter—Valley Securities ^orp., Morristown, Tenn proposes to offer $8,exchange for outstanding in exchange offers are to An additional, $1,009,000 to 'A7' "A March 25 (letter company employees "at price equal to 95% of principal amount. The remaining $12,000,000 of debentures, plus any part of the $12,000,000 hot taken pursuant to the exchange an . Corp., Orlando, Fla. y Sept. 22 filed 100,000 shares of class-A Richwelf an Underwriter— Ga ;' cumulative company debentures outstanding 434% convertible debentures 1967, and 5% ^debentures..due March 1, July 9 Remo Price—To for W., Atlanta A Timeplan Finance Corp. ★ Sheraton Corp. of America ^ $26,500,000 of 7V2% capital income sinking The St., S None. Oct. 24 filed debentures. Whitehall 543 • Insurance Co. Worth, Tex: Underwriter—Kay & Co., Inc., Hous¬ / 7A "■ fund ars time of Proceeds—-For par. • Fort ton, (500 of the shares owned being offered to the Presideni oi the company). Price— $60 per unit. Proceeds—For working capital. Office— eral corporate purposes; Rassco basis. each two shares of stock Sept. 26 (letter of notification) 3,567 shares of common stock (par $1). Price—$18.75 per share. Proceeds—To go to a selling stockholder; Office—400 W. Vickery Blvd., common residents of the United States "only in the State of North Dakota."" Price —$3 per share. Proceeds — For con¬ Canada. Ga. Underwriter—None. Service Life curities Corp., Boston, Mass, on 7A stock (par $1.50; to be offered for sale to residents of Canada in the Prov¬ inces of Manitoba, Saskatchewan and Alberta and tc struction Atlanta 9, common • Ponce basis of one new share for each 20 shares held; rights tc expire Nov:14y'1958V " Price—$5 per share. Proceeds— For working capital. Office—2162 Piedmont Road, N. E.t 000.000 of the A',•••■■ 7' A\. ■ Under- (1807)7 are fore available for purchase on options issued hereto¬ under the company's' Executive Employees Re¬ Stock Option Plan. United Security Life & Accident Insurance Ce. Aug. 22 filed 120,000 shares of class A common stock. Price—$3 per share. Proceeds—To provide the reserves required to be held in life and accident insurance poli¬ cies, and to pay the necessary expenses in producing insurance. Edmond M. Office—Louisville, Ky. Smith, is President. Underwriter—None. it U. S. Polymeric Chemicals, Inc. (11/4) (letter of notification) 26,285 shares of common stock (par 50 cents) to be offered for subscription fey stockholders of record Nov. 3, 1958 on the basis of four new shares for each 13 shares held; rights will expire on Nov. 24, 1958. Price—$11 per share. Proceed*—For equipment, bank loan and for working capital, OffioO— P. O. Box 546, Canal & Ludlow Sts., Stamford^ Conn. Underwriter—Dominick & Dominick, New York. Oct. 22 Uranium Corp. of America, Portland, Ore. April 30,1957 filed 1,250,000 shares of common stock (par 16 cents). Price—To be suDDlied by amendment {«$- Continued on tktcte 44 , Financial Chronicle The Commercial and Continued jrom page 43 purposes. Graham : Proceeds—For exploration pected to be $1 per share). Underwriter—To be named by amendment. Albert Griswold of Portland, Ore., is Pres¬ ident. (letter of notification) 900,000 shares of com Price—At par (10 cents per share). Proceedt April 11 stock. mon —For Office—305 Main St., Park City mining expenses. Underwriter—Walter Sondrup & Co., Salt Lakr. City, Utah. . .T,'-" • yt' -V: Utah. Y. Co., Inc., Rochester, N. - Co. Utah Power & Light filed $20,000,000 of first mortgage Proceeds—To redeem $15,000,000 of 26 1988. bonds, 5*4% series due 1987, to repay gage bank borrowings, and the borrowings under a bank $4,000,000 of balance together with further agreement and cash generated forward the con¬ struction program of the company and its subsidiaries amounting to approximately $43,000,000 for the period 1958-1960. Underwriter—To be determined by competi¬ tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly); White, Weld & Co. and Stone & Webster Securities Corp. (jointly); Salomon Brothers & Hutzler; Kidder, Peabody & Co.; Eastman Dillon, Union Securities & Co., and Smith, Barney & Co. (jointly). Bids—Were to have been received in Room 2033, 2 Rector Street, New York, N. Y., up to noon (EDT) on Sept. 9, but were postponed on Sept. 3. Bids will now be received on such day sub¬ sequent to Sept. 22, 1958 but not later than Nov. 25, 1958 in as the business will be used to carry . ^Chicago & North Western Ry. are expected to be received shall be designated by company. Weingarten Markets Realty Co. Sept. 19 filed $1,600,000 of 6% sinking fund debentures, due Nov. 1, 1978, and 50,000 shares of common stock (par $1). The offering of the common stock is subject to the right of certain stockholders of record Oct. 20, 1958 to subscribe on or before Oct. 30, 1958 for a total of 7,042 shares at the rate of one new share for each four shares held."*'[Stockholders Who have right to subsfcrlbe for re¬ maining 42,958 shares have waived such right.] Price— 100% and accrued interest for debentures and $8 per share for stock. Proceeds—To discharge bank loans and other indebtedness, and the balance will be used for further property acquisitions and development and other regular corporate Beissner & Underwriter — Moroney, Offering—Made on Oct. purposes. Co., Houston, Texas. (11/25) by the 25 Nov. on for the purchase from it of $1,875,000 addi¬ tional equipment trust certificates to mature in 15 equal annual instalments. Probable bidders: Halsey, Stuart Co. Inc.; Salomon Bros. & Hutzler. Aug. 25 it was reported that the company may issue and $25,000,000 of preferred stock. Underwriters—May be The First Boston Corp. and Glore Forgan & Co., both of New York. Offering—Expected late in 1958 or during the first three months of 1959. (Kingdom of) Sept. 2 it was reported that an issue of between $20,000000 to $30,000,000 may possibly be placed on the Ameri¬ Underwriter—Kuhn, Loeb & Co., market this year. can Equitable Gas Co. July 18 it was announced that the company expects later in the year to issue and sell additional securities, prob¬ ably preferred stock, to secure approximately $5,000,000 of additional funds. Proceeds—Together with $7,000,000 from private sale of 4Vz% bonds, to repay short-term bank loans and for construction program. Underwriter! —May be The First Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch, Pierce, Fenner & Smith; and White, Weld & Co., all of New York. First City Sept. 19 National Bank announced Bank plans to offer to its it was stockholders of record Oct. 2, 1958 the right to for 125,000 additional shares of capital stock subscribe (par $20) Carolina Western Telephone Co. 89,391 shares of common stock being of¬ fered for subscription by holders of outstanding com¬ June mon 6 filed stock at the rate of held chares one new share for each three 26; rights to expire on Oct. 31. Price At par ($5 per share). Proceeds — To be ap¬ plied to the payment of $700,000 of short-term bank loans incurred in carrying forward the company's con¬ on Sept. — struction and conversion program. Statement effective Sept. 26. ■' Underwriter—None . . _ . Wilier Color Television System, Inc. April 2 (letter of notification) 72,035 shares of common stock (par $1) of which 10,000 are to be offered to stock* holders at $2 per share and the remaining 62,035 sharei •re to be publicly offered at $3 each. Proceeds *— For fin era 1 corporate Underwriter purposes. Office—151 Adell Avenue^ onkers, N. Y. Edwin Jefferson, 39 -— Broadway, New York 6, N. Y., . 10 shares held. the basis of one new share for each Oct. it 27 Dec,; 2 to additional was announced approve a plan stock common $27 stockholders to will 290,000 offer vote shares on of (par $10) to stockholders of Dec. per Fort Worth, Texas. Price—$375 per common share and $1,000 debenture. Proceeds — To develop property and per build certain facilities. Underwriter—None. Bahamas. (11/18) yt General Public Service Corp. Oct. 28 directors the Acme Steel approved a proposal file to may Son, Louisville, Ky. • by a bank) on a more perma¬ be done through equity or con¬ Office—75 Pitts St., Bos¬ ''',■ Lorillard - - ■ ' •": ■;v; 'v ■; Co. (P.) Sept. 17 company announced it plans to- offer its stock¬ subscribe for approximately 363,000 additional shares of common stock on the basis of one new share for each eight shares held. Proceeds — For holders the right to corporate purposes. Underwriters— Lehman Smith, Barney & Co., both of New York. Registration—Expected about Nov. 5.' general Brothers and / Master Fund, Jan. 27 it Inc., Fairfield, Catif. announced this newly organized invest¬ was nlans to offer to bona fide residents of ment company capital stock (par $1). Price California 10,081 shares of • a Grace Line (10/31) Inc. Pierce, Fenner & Smith; Pane, Webber, Jackson & Cur¬ tis; Smith Barney & Co.; White, Weld & Co., and F. Eberstadt & Co., all of New York. Great Atlantic A Pacific Tea Co. Feb. 19 It Was reported a secondary offering of common voting stock is expected this year. Underwriters — May include: Blyth & Co., Inc.; Lehman Brothers and Smith, Barney & Co. •• •> were by to vote an on Proceeds—For investment. pire additional for expansion purposes. Webster Securities Corp., New equipment for trust < ^ " 8&%. :*• ' Nov. 10. Price—$41 per share. capital and surplus. Proceeds—To in¬ plans to sell $40,000,000 of Proceeds—To redeem a like amount 4%% debentures due November, 1992. Underwriter —To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & of Bids—Had Co. been tentatively the pone on to be re¬ Sept. 16, but on Aug. conditions. 4 '•*' : ; Inc. announced it plans to issue on or $3,200,000 of first preferred mort¬ gage bonds. May be placed privately. Proceeds — To repay bank loans and for working capital. Midwestern Gas Transmission Co. March 24 it was announced that this subsidiary of Tennessee Gas Transmission Co. has applied to the Fed¬ eral Power Commission for permission to issue firstmortgage bonds, unsecured notes and 'common'Stock. ; Proceeds—To build pipe line system- to cost about $111,000,000. •••;• Underwriters — Stone & Webster Securities Corp. and White Weld & Co., both of New York. / 28, company before Dec. 31, 1958 Montana-Dakota IWIHify: Co. was announced the company plans to issue , March 24 it 12,285 shares of and Underwriter York. — purchase sell an amount hf Vfirst undetermined mortgage (about $10,000,000) in the latter part of this year or in early 1959. Proceeds — To repay bank .loans. Underwriter^—To be determined by competilivebidding. Probable bidders: Halsey, Stuart & Co. Inc^Slyth & Co., bonds tec.; Merrill Lynch, Pierce, Fenner & Smith, and Kidder, Peabody & Co., Inc., (jointly); and Blair & Co., Inc. Stone & Moore-McCormack Lines, Inc.; and government insured bonds secured by a first preferred ship mortgage on the liners S. S. Brasil and S. S. Argentina. Underwriters—Kuhn, Loeb & Co. and Lehman Brothers, both Of New York. - Offering — Postponed because of uncertain market conditions. '. r March 24 it was announced eompany plans to issue aril $24,000,000 of Offering — Expected Narda Ultrasonics Corp., N. Y. Sept. 8 it was reported that the company plans a regis¬ tered secondary offering of 60,000 shares of common (11/12) certificates scheduled 26 it was voted to post¬ this refunding program because of present market ceived Heufolein, Inc. / Aug. 25 it was reported that the company plans early registration of 400,000 shares of common stock; of which 100,000 shares are to be sold for the account of selling stockholders. Proceeds—For expansion. Underwriter— 12 ?; Michigan Bell Telephone Co. due Oct. 1, 1983. Proceeds—To¬ gether with other funds, will be used to pay bank debt, Nov. on crease proposal to increase capital stock (par $10) which would be offered for sub-, scription by stockholders on a pro rata basis, with an additional subscription privilege^ Stockholders will also vote on authorizing issuance and sale of $900,000 5*4% on less an underwriting discount of March Company plans to issue $9,000,000 of government insured bonds secured by first preferred ship mortgages on the new "Santa Paula." Underwriters — Merrill Lynch, and ;, Midland Enterprises, Bids will be received by the company up to noon was announced that the company plans addi¬ tional financing this year, in the form of common stock, This ton, Mass. York. A-Illinois Central RR. Co. Underwriters—Blyth & Co., Inc., vertible debenture financing. sometime in November. March 21 it Dec. 8. 34-year debentures. registration statement with the SEC covering an offer additional shares of common stock for sub¬ scription to common stockholders of record on or about Nov. 18, 1958 on the basis of one new share for each two shares held (with an oversubscription privilege). Underwriter—Stone & Webster Securities Corp., New Glore, Forgan & Co., New York. Prospective Offerings on Laboratory for Electronics, Inc. July 3, Henry W. Harding, President, announced that the directors are currently considering refinancing $790,000 of outstanding notes ($658,750 held by a principal first mortgage bonds, ^ World Wide Helicopters Ltd. Oct. 28 filed American depositary receipts for 212,158 chares of ordinary (common) stock (together with a like number of the shares). Price—To be supplied by amend¬ ment.' Proceeds—To selling stockholders. Underwriter— Blair & Co., Incorporated, New York. Office — Nassau, expire New York and J. J. B. Hilliard & Aug. 12 directors approved authorized: capital $25) to Merchants Bank of New 2, 1958 on a one-for-eight basis. Price— share. Proceeds—To increase capital and sur¬ plus. Underwriters—Equitable Securities Corp., Dallas, Texas, and Merrill Lynch, Pierce, Fenner & Smith, record Oct. Concord Ltd. ing of 206,446 additional shares of common stock (par .$10) to stockholders of record about Nov. 21 on the basis of one new share for each 10 shares, held; rights York -:/vV.L; Oct. 14 stockholders approved, among other things^ an offering of 6,000 shares of. additional capital stock (par $12.50) to stockholders of record Oqt. 15 on the basis of one new share for each eight shares held; rights to ex¬ Haverhill Gas ■ Co. filed $500,000 of debentures due 1991 (non in¬ bearing) and 800 shares of common stock (par to be offered to members of this club and of Utilities Ce. (11/24) reported that the company plans an offer-- ^ First National Bank in Dallas, Texas (12/2) Oct. 20 stockholders 27 Kentucky —$10 per shar ★ Wilmington Country Club, Wilmington, DeL terest it was $10,000,000 of first mortgage bonds due Price—$40 per share. Proceeds—To increase capital and surplus. Office—931 Main St, Houston 1, Tex. of 2,478,264 20. and 1988 Pro¬ ceeds—For construction program. Underwriter—-To be determined by competitive bidding. Probable bidders; * Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,' Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld & Co.; Blyth & Co.. Inc.; Equitable Securities Corp •; 14 Feb. nent basis. ' ' Light Co. announced company plans to issue Power & Kansas stockholder and $131,250 New York. Co. (jointly). & Co., and Goldman Sachs & gan • sell Denmark Lynch, Pierce, Fenner & - Smith (jointly); Lehman Brothers; Eastman Dillon, Union Securities & Co. and Securities Corp. (jointly); Glore, For¬ Oct. 27 it was Commonwealth Edison Co. Thursday, October 30, 1958 Stone & Webster sell company on • * Bids bonds due first mort¬ West Madi- tificates, dated Oct. 15, 1958, to mature in 15 equal annual instalments. Probable bidders: Halsey, Stuart & Co. Inc.; ; shares of capitiu Proceeds — Foi development of oil and gas lands. Office—574 Jefferson Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt (10/30) Chicago 6, 111., up to noon (CDT) on Oct. 30 for purchase from it of $1,875,000 equipment trust cer¬ the & York, Inc. Utah Oil Co. of New May 6 (letter of notification) 300,000 atock. Price — At par ($1 per share). June Chicago & North Western Ry. Bids will be received by the company at 400 sin St., Salomon Bros. & Hutzler. Utah Minerals Co. & . . ;<1808) §4 from it maturing of (CST) $2,610,000 semi-annually 5 stock (par 10 cents). Proceeds — To selling stockholder. Business—Manufacture of ultrasonic equipment. Control —The company is controlled by Narda Microwave Corp., (may Michael G. Kletz & Co.). Underwriter—To be named at a later date preferred stock, or a combination of the two, including bank loans. Proceeds—For expansion program, work¬ from June N. Y. bidders: be Milton D. Blauner & Co. and ing capital and inventories. Hutzler. Inc. and Austria July 15 it the Underwriters—Blyth & Co., Merrill Lynch, Pierce. Fenner & Smith. (Republic of) was announced issuance and sale of that the country contemplate! $30,000,000 bonds. Proceeds—For electric power projects and other improvements. writer—May be Kuhn, Loeb & Co., New York. tug"- Expected in October or early November. Under¬ Offer- Bank of New York Oct. 21 stockholders of record that date subscribe were given the or ©f$100.par each eight shares held. Price—$225 per share. Proceeds ---To increase capital and surplus. Underwriter—Morgan Stanley & Uo., New York. : Now York State Japan (Empire of) Aug. 20 it was stated that an issue of between $30,000,000 and $50,000,000 of bonds may soon be publicly offered on the American market. Proceeds—For public works projects, etc. Underwriter—The First Boston Corp., New York. Kansas Gas & Electric Co. March 31, G. before Nov. 14 for 30,000 shares capital stock iri the Tatio of one new share for on 1, 1959 to Dec. 1, 1973, inclusive. Probable Halsey, Stuart & Co. Inc.; Salomon Bros. & W. Evans, Chairman, announced that com¬ plans to sell some bonds originally scheduled for mid-year. The proposed sale was subsequently deferred pany until late 1958 or early 1959. Proceeds—About $8,000,000 Underwriter—To be determined by competitive bidding. Probable bidders: Halsey Stuart & Co. Inc.; Kidder, Peabody & Co., and Merrill for construction program. March 7 it was Electric and Gas Co. announced that approximately $7,500,000 from additional financing will be required for construc¬ expenditures for the balance of this year. The man¬ agement intends to negotiate a new line of credit with a group of banks and expects to sell equity securities later this year or in early 1959, depending upon prevailing market conditions. Underwriter—For any common stock: The First Boston Corp., New York. tion Norfolk & Western Ry. Bids will be received this (11/13) (12/18) Fall by the company for the purchase from it of $11,760,000 equipment trust cates due from l-to-15 years, Co. certifi¬ viz: Nov. 13, $5,310,000; and 18, $6,450,000. Probable bidders: Halsey, Stuart & Inc., Salomon Bros. & Hutzler. - , Dec. Volume 188 Number 5790 . . . The Commercial and Financial Chronicle (1809) Northern Illinois Gas Co. June 10 it. was announced company will sell late this $10,000:000 mortgage bonds but on Sept. 12 it was stated that immediate financing will not be necessary. Underwriter—To be determined by competitive bidding.' Probable'bidders: Halsey, Stuart & Co. Inc.; First Boston Corp.; Glore, Forgan & Co.; Blyth & Co., Inc. year * Pacific Gas & Electric Co. Oct. 20 it sale of announced was (12/2) that the $50,000,000 first refunding mortgage bonds. ceeds—To retire bank loans Underwriter—To gram. be for and Pro¬ by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc. and The First Boston Corp. (jointly); Blyth & Co., Inc. Bids—Expected to be received on Dec. 2. Philadelphia Electric Co. Oct. 21 it be used announced was bank to finance that loans. plans company program and be determined Underwriter—To early 21. to repay by com¬ an of one For proposed shares held. share for: each 21 new Proceeds— : /../I -:' share of one of record on York, and Bank of America National Trust & Savings Association. The Chase Manhattan Bank will be the fiscal agent for the credit. The amount of the new financing involved is in the neighborhood of Dec. 16. " 1 $250,- y-;. 000,000, The purpose is to restore government balances which have been reduced by the repayment of excessive an ., „. . „ short term obligations previously incurred. Virginian < common for stock about Nov. or 25, each 1958. 10 ferred share..; shares held March 28 it Oct. it 27 that reported was long-term financing. some interim loan obtained in the company is planning — To replace an * bout Proceeds connection with the Wisconsin purchase1 from Gulf States Land & Industries, and approximately $1,200,000 of first mortgage retire bonds blower & 1960. due Underwriter Weeks,, New /York. . May — ' ' " be Aug. 26 it Co. and Shields Horn- - Office tions. • 197 Underwriter—None. Auburn Ave., J " The run To rests with the New York Court (expected within two months). preme the Petroleum Research Fund of State Su¬ rities American debentures to be dated Dec. 1, 1958. Proceeds Underwriter—To be deter¬ by <*>mpetitive bidding. Probable bidders: Halsey, Stuart & Go. Inc.; Morgan Stanley & Co. Bids—Tenta¬ tively scheduled to be received on or about Dec. 9. Reg¬ istration—Expected in mid-November. mined announced that a public offering of stock will be made following reincorporation stock split, Proceeds —To selling stockholders. Underwriter—Morgan Stan¬ ley & Co., New York. was of this company in State of Delaware and 25-for-l Southern Colorado Power Co. stockholders authorized an additional 100,000 shares of preferred stock (par $50). UnderwritersStone & Webster Securities Corp. and Paine, Webbert 9 * Jackson & Curtis. Valley National Bank, Phoenix, Ariz. Oct. ' rates of shares July 10 it was announced Missouri Public Service Com¬ mission authorized the company to issue $110,000,000 of it 28 Oct. 30 on Southwestern Bell Telephone Co. common announced was on banks nized little been has will stockholders at the years recog¬ a rate of one vote maturity of five to this operation. share for new seven ries of Co.. and justment of such is 1% as a Holiday Cuts Offerings short- Presumably the Election Day holiday, on Tuesday, has served whole. about the at their to cut into the roster of the accepted xk of banks which marked charge to members porate week. for sequence are the privilege of borrowing. There has not been any disposition on . Things are looking somewhat advantage market the at moment and em¬ phasis appears to be on the side of resistance for a change. True the market, including U. S. Gov¬ suffers recur¬ ernment securities, that had latest Proceeds—For con¬ Underwriter—To be determined by a at a Four With Columbine yield of around in adjustment the temptation. The Keen ; Treasury's Task market observers are sanguine just now about the forthcoming Treasury "But the big difference at this operations than they were a fort¬ time is found in the fact that night ago. It had been feared the these spells are less frequent and raising of some $3 billion of new less severe than was the case a money, plus the refinancing of brief time back. In short, there about $12 billion of maturing appears to be underlying demand debts, might prove burdensome. for securities which fit well into institutional portfolios. And noted at the that market are time, it is issues coming to new being accorded con¬ more involved, develops it rates without a money whimper. Pre¬ sumably the latest move in mark¬ ing UP ceuter ! bank ; rediscount Meanwhile raising of the wise be it is new handled felt that the cash dan like¬ without undue strain:"The disposition now is to look for the money managers to one was - reported DENVER, Colo.—George K. Bluh, Lloyd Dahnke, Jack P. Dusapin and Delray O. Petersen are Joins Thomson, McKinnon Securities Corporation, 621 Seven¬ teenth Street. now ■ (Special to The Financial Chronicle) CHICAGO, Ill.-James W. Fitz¬ gerald has joined the staff of Thomson & McKinnon, 231 South La Salle Street. He was formerly DENVER, with Paul H. Davis & Co. curities Joins Fulton Reid Real Busy Day (Special to The Financial Chronicle) Underwriting bankers and their day CLEVELAND, Ohio —Betty J. Jackson has joined the staff of seven Fulton had a busy Reid & .Co., Inc., Union Building, members of the Midwest Stock Exchange. Commerce the sponsoring groups, particularly Join R. J. Le where the issues had been worked (Special to The Financial Chronicle) up via negotiation company between and its bankers. the '■ Vesque BEVERLY HILLS, Calif.—Her¬ H. Howey, Jr., Thomas J, bert Largest of the day's offerings, James and Robert M. Kealhofer a negotiated deal, was Inter¬ are now connected with Russell national Harvester Credit Corp.'s J. LeVesque & Assoiciates, 321 $50 million of 21-year, 4%%, se¬ South Beverly Drive. and Columbine Colo. —Rupert J. Hernandez and George L. Simons have joined the staff of Ideal Se¬ bonds. associates with Join Ideal Securities Corlies & Booker to Admit Thursday,unless there is a ; \ change in present plans, will find On Nov. 1, John Fraser Horn, Columbia Gas Systems opening member of the New York Stock bids for $25 million of debentures Exchange, will become a partner while Indiana & Michigan Elec¬ in the Exchange member firm of tric Co. looks over banking tenders Corlies & Booker, 11 Wall Street, for its issue of $20 million of New York City." " "."V". distributor affiliated (Spcciul to The Financial Chronicle) " , (Special to The Financial Chiionicle) especially well spoken for in ad¬ vance of the opening of the books. ated route. And, it was observed, investor interest was of a nature to cheer recapitulation of fac¬ siderably better reception, what prices and yields more to the rolling over the balance will he eased accordingly. liking of investment interests. -■ development in the field of bonds, due to reach Friday via the negoti¬ that tors a with The market has taken the latest new on since the Federal Reserve System owns about $8 billion of the $12 on billion maturing debt, the task of ■ of yesterday what with some issues involving upward of $170 million reaching market. But same lion market This : in the cards. Largest of these is Natural Gas , larger spread force, but the naturally will the remove somewhat ring periods of nervousness. of been cor¬ Pipeline Co. of America's $30 mil¬ the part of member banks to take better in ;the seasoned investment new offerings on tap for next Only three issues of con¬ Hutzler competitive bidding. Probable bidders: Halsey, Stuart & * Inc.; Estabrook & Co. and Coffin & Burr, Inc. (jointly); Kidder, Peabody & Co. and White, Weld & Co. (jointly). Offering—Expected this Fall. A debentures marketed 4.68%. ad¬ spread between such rates now up an rates to term money rates The than more & $5,000,000 first mortgage bonds. . as Bros. American Co. price of 99^ for on & struction program. (11/3) stockholders Salomon and Worcester Gas Light Co. common 2%% at several Federal try for to Reserve that Co. Loeb "Aug. 18 it was reported that the company plans the sale proposal to offer an additional 101,933 stock (par $5) for subscription by a Corp. company (jointly); Securities Corp. (jointly). (2) For any preferred stock—Merrill Lynch, Pierce, Fenner & Smith; Salomon Bros. & Hutzler and Eastman Dillon, Union Securities & Co., (jointly); Leh¬ man Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); The First Boston Corp.; White, Weld <£» Co.; Kidder, Peabody & Co. Ar Upjohn Co., -Kalamazoo, Mich. Oct. 28 it & Kuhn Society. Underwriters—Expected to be Leh¬ man Brothers/Smith, Barney & Co. and Merrill Lynch, Pierce, Fenner & Smith, all of, New York. Offering— Expected in November. of 35-year was announced on. Underwriter—To be determined by com¬ petitive bidding. Probable bidders: (1). For any bonds— Halsey, Stuart & Co. Inc.; White Weld & Co.; The First Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch* Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬ Chemical —For construction program. until decided Proceeds— the Corp. Offering—Not expeeted early in 1959. plans to sell ?baut $12,500,000 of new securities in the last half of the cur¬ rent year. The type. of securities has not yet been between $50,000,000 and $60,000,000.' Approval transaction (jointly); Boston Wisconsin Public Service was reported that an issue of common stock be offered to the public, the proceeds Of which the Light Go. was 1958 or March 4 it Aug. 13 it of /- _ / soon First late in & Co. may N. E., Atlanta, Ga. i Southern Bell Telephone & Telegraph Co. (12/9) Sept. 22 directors authorized the issuance of $70,000,000 May common will ability will offer additional common stock to its share¬ holders in the near future. Proceeds—To expand opera¬ » Barney & Co. and Robert W. Baird & Co., Inc. (jointly^; Equitable Securities Corp. and Eastman Dillon, Union Securities & Co. (jointly); White, Weld & Co., Kidder, Peabody & Co. and Salomon Bros. & Hutzler ^ v plans to market company Universal Oil Products Co. = Power iA announced that company plans to issue $10,000,000 of first mortgage bonds. Pnrrrhdn To retire bank loans and for construction program. Un¬ derwriter — To be determined by .competitive' bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Smith. (jointly); Lehman Bros.; Merrill Lynch. Pierce, Fenner & Smith. « r announced that the company in all prob- was $30,000,000 of March 17 it stock in the latter part of 1959, but this financ¬ ing may be put off until June, 1959: Proceeds—For con¬ struction program. Underwriter—May be determined by competitive bidding. Probable bidders: White, Weld & Southeastern Fidelity Fire Insurance Co. \ announced , and Sell this year or in the first quarter of of properties to Union Electric Co., St. Louis, Mo. was • Proeeeds-r-To be & jk South Coast Corp. , Dealer-Manager—Harriman Ripley & Co. Inc.;: New York. program. Underwriters—Blyth Co., Inc. and The First Boston Corp. [At the same time, an offering of not in excess of 11,000 shaies of common stock will be made to employees of the com¬ pany pursuant to an employees': instalment: purchase plan.] ; •••• |; (12/2) Sept. 22 it-was reported that the company plans offering.. 700,000 additional shares of common stock, and plans to apply to the State Public Utility Commission seeking exemption from competitive bidding. Underwriter—May be Merrill Lynch, Pierce, Fenner & Smith. Public Service Electric A Gas Co. : . By.' Aug. 26 the directors approved a proposal to exchange 2,795,500 shares of 6% cumulative preferred stock (pa* $10> for $32,148,250 new 6%: subordinated income sink¬ ing fund debentures to mature Aug. T, 2008 on the basie of $11.50 principal amount of debentures for each pre¬ construction for used ' .... on (12/2) reported that was of general corporate purposes. Underwriter —*• Kuhn, & Co., New York;Registration—Expected early November.: Inc. Bank, The First National City Bank of New Board, announced that the directors have authorized a rights offering of 110,000 shares of common stock to stockholders through subscription warrants on the basis Loeb in E. The Chase Manhattan are 4-Tucson Gas, Electric Light & Power Co.;(11/25) Oct. 29, J. R. Snider, President and Chairman of the that directors are con¬ offering to common stockholders additional 173,616 shares of common stock at rate of M. r corporation announced a in cooperation with the two investment banking firms and a syndicate of commercial banks in the United States, Canada and the United Kingdom. The three institution which are to head this syndicate government offering of 260,000 shares of common stock is planned. Business—Trucking con¬ cern. Underwriter—Blyth & Co., Inc., New York and San Francisco, Calif. ; •./,.. a / ^ ^ Polaroid Corp. sidering I. Oct. 27 it petitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. and Drexel & Co. (jointly); The First Boston Corp.; White^ Weld & Co. Bids—Expected to be received oh Dec. 10. Oct.: 27 (12/16) was Bids—Expected to be received T. held Nov. 21. Venezuela (jointly); Kuhn, Loeb & Co., Blyth & to., Inc., Peabody & Co. and Merrill Lynch, Pierce, Fenner & Smith (jointly); White, Weld & Co.; Lehman Brothers. Registration Tentatively planned for Nov. Proceeds—To construction on (Government of) J;/ ^ i\s}-■■. July 1 the Government announced that Kuhn, Loeb A Co. and Kidder, Peabody & Co., both of New York, have been selected as financial advisors to develop a financial program for the country. As a first step in the pro¬ gram a short-term credit is being negotiated between the — registration of $50,000,000 28-year bonds. shares of record Oct. 30, 1958; rights to Price—$35 per share.: Underwriter r —William R. Staats & Co., Los Angeles, Calif. Kidder, (12/10) 15 expire Hutzler ' • each reported that the company plans to issue and sell $12,500,000 of first mortgage bonds due 1988. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Securities & Co. and Salomon Bros. & construction pro¬ determined * Texas Power & Light Co. Oct. 20 it plans the company 35-year debentures, Proceeds — To reiund outstanding $100,000,000 4%% debentures.: Underwriter—To be de¬ termined by competitive bidding. Probable bidders; Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Of¬ fering—Has been postponed." Bids had been expected about Sept. 30, 1958. , Company, 2185 Broadway. Chronicle The Commercial and Financial 46 . . Thursday, October 30, 19§8 . (1810) production and other figures for The following statistical tabulations cover Indications of Current latest week week Business Activity Latest Equivalent to— ingots and castings , ,4 , gallons each) Crude average (bbls. of 6,892,585 Oct. 17 it output Kerosene output (bbls.)— —— Distillate fuel oil output (bbls.) Residual fuel oil output (bbls.) Gasoline at—- (bbls.) Kerosene ~ fuel oil t' ) 7,861,000 28,010,000 27,736,000 2,001,000 12,310,000 1,794,000 12,101,000 6,613,000 6,896,000 7,513,000 Nonhousekeeping Industrial 31,520,000 , 161,341,000 68,020,000 17 : - ,35,012,000 149,461,000 173,785,000 68,893,000 58,823,000 68,996,000 Revenue ENGINEERING CIVIL CONSTRUCTION NEWS-RECORD: Social * BUREAU OF RUNES): Bituminous coal and lignite (tons) Pennsylvania anthracite (tons) ; RESERVE 472,000 VT *8,715,000 457,000 8,425,000 519,000 - at 136 6.196c 6.196C 5.967C $66.41 $66.41 $66.42 $66.41 $42.83 27.300c 20.100c 28.975c 25.800c Utilities Public Industrials Group Group ,.U. S. Government 13.000c 11.000c 12.800c 12.800c 10.800c 11.500c 11.500c 10.500c All 10.500c Oct. 28 10.000c 11.000c 11.000c 24.700c 24.700c 24.700c Average corporate Jet. 28 —--— — 96.125c 92.500c 1 - Baa i.— „ - Railroad Group ——— Utilities Public Industrials Group . Group MOODY'S COMMODITY INDEX-——- — 28 Jet. 28 Oct. 28 ——-—Oct. 28 —— —Oct. 28 Oct. 28 Oct. 28 Production (tons) Percentage 88.46 East 89.92 90.06 98.78 94.71 94.26 93.08 92.64 89.78 89.92 89.23 83.53 83.15 TRANSACTIONS ROUND-LOT 88.13 88.27 88.81 91.05 89.64 89.37 92.64 92.06 3.57 4.42 4.41 4.43 4.11 4.09 4.20 4.20 !... 4.44 4.43 4.91 4.90 4.93 4.56 4.55 4.54 4.44 4.46 4.25 4.23 4.27 389.4 390.2 392.5 384.2 Total 433,785 466,878 446,577 467,232 MEM¬ Other Total Other transactions Initiated off Total Other Total 346,400 244,890 83,860 129,770 875,004 575,570 _)Ct. 1,089,957 1,004,774 659,430 4,173,795 3,932,189 2,425,210 : — 367,950 427,700 771,180 686,920 420,350 sales 3,660,567 2,123,950 4,431,747 sales by dealers Number of shares Dollar N. Y. -Oct. short sales- Customers' Customers' Dollar 1,639,940 1,624,854 1,038,465 Jet. 6,105 6,252 5,334 1,033,131 value — $75,079,964 1,618,602 $75,586,968 -Oct. 546,710 543,880 336,310 546,710 543,880 336310 -505,310 445,170 1,633,835 - •hort shares—Total of sales . Other sales. Jet. .Jet. Round-lot purchases by dealers— Number of shares Net 771,129 . ■ , Net 10,159 760.970 $34,748,451 . 4 325,190 " -- Other sales Tstal Jet. jet. . sales ..... , PRICES, NEW SERIES- ■U. S. DEPT. 7___ ; 153,070 153^070 commodities 22.637 24,225 27^71 33.595 35,834 45,490 77— ! . of 545,380 AH •■■modities other than fane . . . 'tfure. one-half cent a pound. «■«. 240.8 97.1 103.1! 63.6 63.5 64.0- 33.8 __ -33.7 !__7. 43.6 . 9.1 56.4 * ; . ' - , 31.8 .» 26.5 y , 31.8 56.3 ' 26.7 / 6 94 *31.8 31.9 7' for 32.9 9.0 - - 40 48.0 , - • 21.5 . • in-' special 6.8 7___ __7_; .v • 7.0 - ! 6.7! 336.6 *342.0 338.9 August: * (barrels)" > 7 EARNINGS - 31,675,000- 21,406,000 6 *29;833,000 34.139.090 3? *>"1 n"*0 35 365 000 27,889,000 30,647.000 20,018,000 95 90 104 .7 $834,789,583 $779,494,514 $931,117 ,006 7. 629,886,592 627,385,091 ; 7 — CLA$S'l ROADS (AS- operating expenses 93,036,746. 77,000,-000 34,000,000 6,711,484 railway Piieratiflg income Before charges income after charges (estimated) 7 MANUFACTURERS 8,317,705 Shipments ' . 80,000,000 ' ASSOCIATION, „ j t.. - ( - - :_ 7_I i 6,732,679 i --^,626,747 -7,800,709 " 6.367,899 ' *15,500,667 15,535,224 : 1,136,645 — -45,348.234 7_7 __1_7_7__l_. :: .1,068.884 1—7—ii Inventory 919,Ml 2,905,858 ,3,114,255 :__*_— - 1,205,980 :4ii'6.75o; 1,255,497 " Production ; "702,265,956. J.08,801,411 , (16,434,686 74,753,448 51,639,492" : - V.3fl28,949- , 905,900 19,330,320 20,236,220 858,740 554,170 535,110 18,799,540 11,766,890 19,658,280 12,321,060 .» 8.Q02.150 8,53"/,260 Productkm 7 : ^ Inventory Passenger Motorcycle, Truck Biis and Inner 118.6 118.8 118.9 1111? * Tubes (Number of)— _ - C f ^ ■ . t 92.1 110.1 iSS 105.0 105,1 104.9 110.0 80.8 _Oct. 21 126.0 126.1 126.6 |63,123 1 I - : r' 3.465,795/ 3.682,817 3;305,328 2,389,695 - '7,664,108 Shipments 7,680,282 ■ 3,134,192 5,965,804 3,331,264 -" Inventory _l_ Tread Rubber (Camelback)— 91.7 91.3 "640,504 652,631 ' .* 109.9 ' Shipments (pounds) Production . ! 125.6 * " ' 275,981 ~ 279,907 ... 644,209 246,b99: 274,947 266,113 .__ - CIncludes 835,600 barrels of foreign cruie runs. § Based on new annual capacity of 140,743,570 tons against Jan. A, 1991 basis OI 133,459.150 tons, t Number w orders wv repoi tedsihce_ maou^c ^on -• WUB. lj iwj oasis of of not ox tPrime Western Zinc sold on delivered basis at centers where freight from East St.- Lewis exceeds -»v $352.1 "232.2 .. (BUREAU OF MINES)— 'Shipments jet. 21 _Qct. 21 and foods. $358.8 97.4 . Tractor-Implement Tires (NUhfber of)— OF _ Moats -i'15" 238.4 . - : dividends ____-_7__ —7 .58,820- 255 - k . payments— jontribution 282,372f 49,478 $355.6 „ totali._-_7_ 7— and 180,313 215 v —1—77. income 341,407-1 7 230,046 ; 47.425 ; receipts, ■ 131.345 ' . • UNITElJ STATES labor income7— transfer 179,585 7_771*'' Inventory. i7_7_7_> .,7—__7—7 Truck and Bus Tires (Number ofh-^r ;■. • r ' ■< _Oet. 21 foods. • FROM OF Production 1 7 _Oct. 21 products. PrtHtsssJ .90,132 7 coaches IN TIIE Shipments - Farm 3,220,216' 78,391 , . .-i! Production AS 2,809.287 68,618 INC.—Month of August: - TOTAL ROUND-LOT STOCK gALBg ON THE N. Y. STOCK EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS FOR ACCOUNT OF MEMBERS (SHARES): Total rotmd-lot sales— Short sales Oct. 145,608'» 130.498 130,943 2,835,681 . August: RUBBER • .Oct. 76,459: * Passenger'Tires (Numoer of)— sales. 167,213 • .. income. employees' Total Round-lot sales by dealers— Number 526,609 129,855 SOCLiTJON OF AMERICAN RRs,)—Month $51,682,100 $45,813,508 Jet. 733,023 86,877,397 jet., other sales— 603,068 809,160 ___7__ Capacity used (per cent)_ of 1,169,208 1,024,107 $46,827,523 $76,923,218 644,028 900,236 V "Total operating revenues. " value $1,247,096 721,439 .7! FACTORY " SALES salary and Month 1,783,230 2,544,300 1,530,617 $72,642,126 $1,621,G75 939,015 _2__7 Shipments from mills (barrels )_x Stocks, (at end of month—barrels) « - - MINES)— 7, ounces)_. motor personal RAILROAD 1,604,009 Odd-lot purchases by dealers (customers' sales)— Number of orders—Customers' total sales— OF i •«. VEHICLE Production STOCK , c 72,289.031. ,■ 491,168,447- 619.464,813 $1,348,121 -- - Total nonagricultural income COMMISSION: (customers' purchases)—t 43,205,835 409,106 ounces), fine PORTLAND CEMENT . DEALERS AND SPECIALISTS ON — SECURITIES EXCHANGE fine surance 1,430,890 -Oct. 3,410,664 4,097,584 EXCHANGE 104,770,856 120,681,539 of COMMERCE)—Month August (in billion^); „ Less . 352,340 -Jet. STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT (BUREAU Personal, interest 1,628,230 -Oct. Odd-lot $563,457,478 103,987,432 547,604,857 Proprietory and rental income—7 . 59,750 _ sales sales 104,331,109 $724,235,669 • : __ . (in Other 345,490 517,270 167,950 160,215,945 $651,592,289 _7__ (in abort tons! Total 202,490 389,500 872,145 17,683,379 ___-i 7__7 municipal-^-'—1;——7 Number of , transactions for account of members— purchases. Short ; 42,400 .Oct. sales round-lot Total 43,100 ct. 42.129,864 35,202,075 $33,990,357! • 1,110,640 765,790 Other sales Total Total and Month — 1,495,370 Jet. . 37,250,830 __i_ (in short tons) Total — <79,381,380 ___!7!_______!__7 Commodity producing industries^ Distributing industnes'__77_7_—'.7 Service industries =7—. Govei'nment ___! ..7! 1 the floor— sales construction 860,450 786,759 118,323.349 44 CONSTRUCTION—EN¬ NEWS-RECORD 1,201,980 686,190 122,054,015 ! 40,918,850 .ill!ii_„ ! Number of passenger cars, Number -of motor trucks— , 202,890 699,500 123,215,009 City Wage 398,530 661,200 64,178,226 ... 250,190 922,007 purchases— Short ; 1,079,850 675,880 /ct. _ 160,066,771 PLANTS. IN U. S.—AUTOMOBILE MANU- ; FACTURERS' ASSN.—Month of September: Total number of, vehicles' —7777 r— 77 7*^ ' jet. sales $25,783,464 110,880,048 293,390 floor— sales 11- $22,667,711 1,509,410 64,000 622,190 15 39,559,602 ... Jet. 16 • - & :_ construction (in ol' , 103 ' : SPECIALISTS: _ 103 7 States (DEPARTMENT in which registered- — 50 ,v" 51 102 32,254,320 118,482,908 Zinc 109.66 38,300 Total purchases 52 51 ' 76*'- 50 DUN — l; PERSONAL INCOME 2,077,360 2,642,290 on the 108.69 2,469,550 493,150 1,913,470 2,406,620 126 79 , Copper (in short tons)___._——__7!7_—— ' 564,930 131 79 ■ _J_l_l United States':' * 2,535,860 *130 .' V CITIES—Month City S. Silver 98 OF 607 Mine production of recoverable metals in the 308,059 108.69 138- 675 122,034,982 OUTPUT Gold 254,914 108.60 43 120 685 Month of June: '' ' 95 Oct. 24 46 ' 260,256 Oct. 18 Oct. 18 30" ; 54 164,793,868 INC.—315 construction METAL 5.01 311,174 Jet. Initiated U. Federal 4.47 95 purchases Other transactions ■>* *.r 296,458 -— 56 261 1 34 'r 43 71 VALUATION Lead ' 36 257 -v! 43 *.* 7_. New York State 4.28 52* 416}' ' . 3 *125 2 United Private 4.34 . ; ; development— ENGINEERING Total 4.50 . V . 34 ,135 - 2,——________7 GINEERING 4.12 4.23 308,795 BERS, EXCEPT ODD-LOT DEALERS AND Transactions of specialists in stocks enterprisesij.il' and September (000's omitted): 7,, 4.58 4.43 4.12 4.42 19-1.497 422 ■ 7-,-«*«•• )i«"*'258 • 4.47 95 i— 1425^ 7 7.7 public York CIVIL 3.72 3.62 - .* 17 71 2 Public ' 87! 432 1,588 Atlantic Outside 87.72 314,445 ACCOUNT FOR !77-__2 Central New ' , 18 : 7_T72i——_!7 systems_7_777_7__—7!_7">2 PERMIT Total 82.15 87.99 92.35 37, 77 ' _li—77_!7!7..111' 91.91 89.64 83.40 .<■, 34 451 73 Central West 94.26 89.78 159' 556 1,606 Mountain 89.23 94.41 283,024 Unfilled orders •,' Z_. Pacific 4 Oct. 18 OIL, PAINT AND DRUG REPORTER PRICE INDEX— 1949 AVERAGE = 109, ; 16! 1751 ..74 buildings.-.*!-— 7_7_l South Central 86.25 87.94' -————Oct. 18 of activity (tons) at end of period —— 77 Atlantic MOTOR NATIONAL PAPERBOARD ASSOCIATION: Orders received (tons) — 51- 562' : 455 . — England South 91.125c aT _ZZZZZZZ-ZZZIZIZZZZZIZZZZZZZIZZZZZZZZZZZZZZZZZ-ZZ Jet! A ■■V 43; August: Middle 26.000c 96.375c • 162 565 ■: : other New 13.300c 10.000c 3.60 ' X ^2 servicell'—J7_—7 and water Conservation 13.500c AVERAGES: Bonds 81: 29 ' 22 .• - _i_J—_ii7 _7_1 ; Public -service* ' YIELD DAILY BOND MOODY'S and Sewer 22.375c 13.000c jct- 28 Jet- 28 Jet. 28 jet. 28 Group . 42 33 ... 26.400c 29.950c It / . 7-12! nonresidential BUILDING 27.375c Jet. 28 43 -v —7 Military facilities Highways $35.33 $43.17 $42.50 88.11 :■" ' Other 93.08 Railroad 225 53 52 36 Water 'Jet- "ZZZZZZZZZZZZZZZZZZZZ 149! 52 53 , 2277-2 const ruction Sewer 00 - 79 !• V 7_. Educational 281 -Oct. 22 DAILY AVERAGES: U. s. Government Bonds—,— Average corporate — Baa -7 Administrative '. 208 oi vT . ■248 80 • !; ._"_77_7——_L_i — Hospital and institutional——_^_7. 288 MOODY'S BOND PRICES r utilities Industrial 9.862,000 499,000 ; 275 Jet. 22 (primary pig. 99%) tin (New York) at v J 73 __/' .2—1 construction buildings l__. Nonresidential buildings 11,787,000 Jet- 22 Aluminum ,■!: 322 147 252 ■ —i.-—'/v„'-2 Trp24 Residential ' 12.342,000 Jet. 22 Jet. 22 (delivered) at Zinc (East St. Louis) at— Aa Public of at 316 *169 recreatioimlrr!__!;;.;_—v BRADSTREET, York) at (St. Louis) at Straits - 16,398,000 12,048,000 Jet. 22 (New 179 * 3T6" -w 12,174,000 tZinc ■ - ... QUOTATIONS): (E. & M. J. 840 ; 293 ,148 ■ ,,: Telephone and telegraph—t: Other public utilities ———2^ 772.1" X-'*' ■ All other private—1 .7, —_77l_-7__",—X , 129,548,000 216,180,000 147 Jet.21 ->ct. 21 Electrolytic copper— Domestic refinery at Export refinery - 213,612,000 146 , steel (per lb.) METAL PRICES 112,155,000 8,530,000 Jet. 25 DUN & Jet. 23 — (per gross ton) steel (per gross ton) Lead 30,596,000 Oct. 18 Pig iron Lead 16,758,000 COMPOSITE PRICES: AGE Scrap 246,776,000 ,120,849,000 135,955,000 119,197,000 -145,946,000 $248,110,000 6.196c INDUSTRIAL) (COMMERCIAL AND BRADSTREET, INC. — — FAILURES Farm $359,558,000 147,613,000 Jet. 18 Jet, lb —- EDISON ELECTRIC INSTITUTE: Electric output (in 000 kwh.) Finished .,..606,672 $370,670,000 123,894,000 $251,425,000 103,812,000 '* SALES INDEX—FEDERAL AVERAGE = 100 DEPARTMENT STORE SYSTEM—1947-4!) 557,921," 569,817 26,764,000 „ Jet. 2.1 Jee- — i.— 743 ;168 • __ Miscellaneous, Public OUTPUT (U. S. COAL 686,138 695,768 563,777 oci. H Jet. 2.1 construction Public construction— State and municipal ' 18 n. !_ _v—: '_i— and Railroad - private IRON !' 726,812 667,277 ENGINEERING — L construction 6. U. Total 47; 374 * ASSOCIATION OF Revenue 51 ,.,'174 ——2 Hospital and institutional— ' AMERICAN RAILROADS: freight loaded (number of cars)—.—• freight received from connections (no. of cars)—Oct. 51 . ; —— , 387 742 ____y i buildings Educational - 1,190 3,185 i 371 — - 1,611 1,280 $4,682 1 Other nonresidential buildings—/>-•; Religiousi I 1-12. !• 7 1,718 1,320 buildings and warehouses u* •! ?• Stores, restaurants, and ^rages!/l___/: ^ 3,215 1,742 _ ___ Commercial 179,263,000 $4,803 ;3,229 i . Office 173,158,000 30,011,000 Ago - $4,835 +j;: ______ alterations——_ and Nonresidential Month : Year ' OF _ : buildings (nonfarm)J. dwelling units Additions " 172,914,000 13,364,000 158,742,000 170,361,000 • Jet. 17 Oct. 17 (bbls.) at (bbls.) at Distillate fuel oil Residual -7,604,000 12,704,000 6,838,000 ^ terminals, in transit, in pipe linesunfinished gasoline (bbls.) at__ Oct.17 and Finished 7,723,000 27,636,000 2,262,000 12,292,000 2,452.000 Jet. it refineries, bulk Stocks at DEPT. construction New 6,746,815 25,991,000 °ct- 17 — 7,087,085 fi 7,613,000 \l 7--—- 6,873,785 Previous of September (in millions): construction—. new Private . stills—daily average (bbls.) to runs 2,041,000 1,901,000 Total S. of that dates are as Month ♦»«- CONSTRUCTION—U. BUILDING either for the are Latest 79.7 70.4 *2,026,000 S2,009,000 of quotations, cases Residential AMERICAN PETROLEUM INSTITUTE: Crude oil and condensate output—daily 42 o Nov. in or, Ago Ago *75.1 that date, on Year LABOR—Month (net tons) Steel month ended Week §74.4 Nov. 2 Dates shown in first column month available. Month Previous Week AMERICAN IRON AND STEEL INSTITUTE: Indicated Steel operations (per cent capacity). or or (pounds) 41,622,000 39,154,000 43,621,000 31,988,000 " *38,569,000 *30^71000 * r Inventory ZINC OXIDE (pounds) (BUREAU • OF r-.et August: Ploauetidh (short - tons J* Shipments (short MINES). • ^*4,466,000 **41,055,000 25,115.000 •Month ' tons)— Stocks at cad of month (short tons). 14,427 --15MH3 14,038 14,830 21,606 21^11 - . v 15,442 45.389 *8,727 Volume 188 Number 5790 . The Commercial and Financial Chronicle . . ' (miy • , question which is thd negotiations^, surface in not shown on Robert L. Ferman Adds and which might come as a block, is which management and company will come up as the control. m dividend* Nemca MIAMI, Fla.—Jack Buchsbaum has become connected with Robert L. Ferman & Company* Building. Birmingham, Aim, October Ainsley I95B The Board of Directors this da# ttrhffd •>, quarterly dividend of thirty centifr(3flMl per share on. the outstandmg ComnwftSteck a Walston Miami Branch Dividends and Merger The past few weeks the have seen interesting developments in some declarations of dividends by Probably one of the most important actions taken was t£taf" by*~tfce ^eijnsylvania Rail¬ road. This road preserve^; its un¬ broken record of having paid'Sr dividend for each year since 1848, or 111 years. This is the longest dividend paying record of any railroads* company listed on Stock Exchange. It is ment the New York interesting to note the with made the com¬ official an¬ nouncement of the declaration. stated that was the income have held ber of yeans. true of the depend many from this the stock a on and source over It num¬ This is particularly along the line of railroad- holders Many have been stockholders for years and in fact the stock has been held within "family"' a and generation payment to was on from generation. declared This passed even though earnings for the full year probably will not be sufficient to the payment. Indications are cover that for the full year the road will show only a small "net income on the It . pointed was that the road *'* f stock, common out, however, continues its pro¬ of debt- retirement, -despite gram deficits during mosfcQf the months this year. For the full year, dotal amount of to' be debt retired is expected to " approximate " some $29,000,000. Even with do w earn¬ ings, Pennsylvania is; likely, Ito continue gram^ its debt On the - reduction In the long be of benefit ; • run, pro¬ this wilt the stockholders. to hand other New York Central; "second only to the Penn¬ sylvania, is not expected to-pay any dividends this. year. have eash been down Earnings sharply and the nancial seem to justify any divi¬ dend payment. This brings into focus the current talks between the ; two. merger. roads of a possible It is thought in financial of to due earning power financial condition. Further in the direction facilities such for nounced are of the and moves — Walston & Co., Inc. has opened a branch office at 245 Southeast First Street, under the management of O'Brien. X. James York an¬ V. L. Norwood Harbor, CLEARWATER, Fla. J. Battles is & Stautz. Admit to particularly hour in view in wages scheduled of the in¬ of seven cents Nov. for an Another declaration of great in¬ was the action by the Board Directors cific in of making the a subject to dend, approval, plus quarterly dividend. This could have the significance of bringing closer the merger of which ern has been under time. some a larger number of shares outstand¬ ing, Northern Pacific would be in a better position on an exchange of stock for out a new share for: each As J proposed of In any event, that the roads will be basis consolidate to it on ST. liam PETERSBURG, R. Chase and Northerji ing, closely watched in well as- railroad is. now DIVIDEND NOTICES Dividend GRIFFIN,/ ^1 able 2% on the SOUTHERN a 1 NATURAL common stock, pay¬ November 28, 1958,. to stock¬ on Notice 1 i Common Stnek on The Board of Directors has declared common holders of record November GAD COMPANY ■ ' ■ • 5 10, 1958. Seelaus, Secretary-Treasurer 'a,. Birmingham, Alabama • i * ' • U" 5 October 23, 1958 Common Stock Di vidondNo; 79 ' A regular quarterlV1 cHvb cents1 per share J lend1 of 50 AMERICAN A ff Hud eon and POWER COMPANY INC. ($.75) (Canadian) declared Ill CHOICH STREET, NEW YORK 7, N.Y. at York Common Stock shareholders of record at a H. W. a, Balcogyen% end _ f ber 28> 1958. H. K McHENRY, ; Vice President ancPSecretary. November 14, 1958, L 1 Dated! October 25,1958. * U> to Tht Singer the Executive Vice President October 24, pay.' fl»uuuMuuuuiiuuuuuuuuuBuuuunruragWu«Mi close of business November 10, 1958. \' financial on the for December 10,1958 payment be¬ cents share has been Capital Stock of this J. F; McCARTHY, Treasurer. this day, declared a quarterly dividend of 25 cents per share the seventy-five per otr able December 12, 19501^ stockholders of. record at the. close of business off NoveW- S shareholders of record at the close to of business meeting held a the on declare# J Natural* Gas Company, Company, payable December 15, 1958, The Board of Directors of the Company, of Common Stock of Southerrt' 76! Kay Mining Smelting Co., Limited Dividend A has been j [DIVIDEND NO. FOREIGN the as re- ■ " on are M. E. R. Henry Dividend Pacific- circles Fla.—Wil¬ stock dividend of oetter Pennsylvania- New entittedf reported* records date; . • " and the Class "B" Of the Great Northern. The stockholders Secretary-Treasurer affiliated cles,:it is thought, will further improve the operating efficiency Central in located in tin elates and Ontario Goodbody & Co., 218 Beach Drive, North. operations, which in railroad cir~ Great Northern situations in 17 cities, l; date for determi¬ nw This notice is- given to correct error Secretary Manuiacturinpi plant* Staff to with any of some to Staff of cer¬ December such. payment. FISCHER! & POTTER COMPANY appears a nation shareholders of record at the to close of business Nov. 6,1958. Goodbody Adds Northern has the better operating results. Company* payable Nov. 25*. 1958, ; Great course, 1958. There is shares oft the after or West. company. 'Counter,, of a common than more share the oil on Goodbody & Co.,, 419 12th Street, In this manner, its stockholders would be in a'better position to capitalize on its large land holding with its production of oil and natural gas. new tificates seventy-five cent8-175cVper share redemption* o£ entire* surrender of share Heaton has become affiliated with company, with¬ having to demand one issue upon, BRADENTON, Fla.—Donald W. con¬ With OnOct. 23; 1958,-the Board of a dividend of (Special to The Financial Chronicle) Northern Pacific and Great North¬ sideration for dividend1 is payable; only in. cOBfr nection with Difectora declared r.g. hengst, 20% stock divi¬ Interstate Com¬ regular : - Goodbody Adds Northern Pa¬ Commission merce the JOHN W. BRENNAN, Secretary & Itwsmvr , DIVIDENO MV. ISO DENVER, Colo.—John F. Peverley has become connected with Liberty Investment Company, 511 terest of remain* Open*. Woo dull Industries preferred stock CMVEtMMff 1KONIO (Special to The Financial Chronicle) 16th Street. 1. will r EATOV ^o crease books transfer United States Pipe Deringer Inc., 1442 Gulf-to-Bay substantial savings in roads. as Francis — with now DIVIDEND NOTICES of the costs, Company, payable December 13$. WW, on December 1/1058. stockholders of record V. Lee Norwood & Co., 20 Ex¬ This could result of activities would go a long way in bringing down operating of this to The Place, New York City, a number change major" cities served'by both members of the New York Stock It is agreed that terminal Exchange, on Nov. 17 will admit costs, especially for the Eastern Walter V. Cook partnership. carriers, is a heavy burden, on earnings because of switching and Joins Liberty Inv. handling of traffic. Coordination -in Deringer & Stautz (Special to The Financial ChroMiCEE) Boulevard. probable indication of future yail strong pos--: sibility of some' coordinationt of: mergers, many of which now are One duplicate facilities but not of a fi¬ under -consideration. big circles that there is F. eliminating recently as New anticipated. With MIAMI, Fla. consolidation difference position at the present time does not Prospects Secretary 1958. Manufacturing Company The Board of Directors has declared Southerir a quarterly dividend of fifty-five cents per share payable on December 12, 1958 to stockholders of 14. record at the close of business on November Railway 1958. D. October 28, H. ALEXANDER, Secretary 1958. Company DIVIDEND NOTICE: DIVIDEND NOTICE '* New York, October 28, 1958. 600 FIFTH AVENUE National NEW YORK 20, N.Y. A dividend of Distillers COMMON m and value of STOCK No* 112 < clared 25$ On October 22, 1958 a regu¬ cember Directors* has quarterly a per share Common on quarterly dividend of 75 share was declared the Corporation's Com¬ mon Stock, payable Decem¬ ber 15, 1958 to stockholders dividend of Stock, payable on record at the- close of business 1958*. • J. J. MAHER, Secretory. , of record at the close of busi¬ De¬ on ness on November 15, 1958. November TO, 1958. SINCLAIR <\ The transfer books will not dote. TheUnite#Ce« ' 4-r . v r |70<f per the Common Stock. wifKoub per \ November 14, on the outstanding of ers cents per de- oir 1/1958^ t<r stockholders of record* " par j, value of Southern Roilwoy Company- hO» today been declared- out of the surplus of net profits of the Company for the fiscch year ended December 3t, 1957/ poy« able December 15, 1958, to stockholds lar NOTICE DIVIDEND , Company of the share has today beeir A dividend of seventy cents' share Corporation of per business November 14,1958. Chemical Board $20 declared, payable December 15, 1V58V to stockholders of record at the-close of DIVIDEND The l'A% (23r<)*per iftortT 3,000,000' shares oft Preferred^Stock* on of Southern. Railway "• October PAUt C. 23/ T^S JAMESON A Great Name in Oil Mmpruvunieivf ( Treasurer Company DIVIDEND NOTICE A V, T :' fc k -W: t- J&rVv- -ft* • A i JV .. regular bees* v.. L,' * - _ J ** *•- Tobacco Company, to the.. payable fafgash - stockholders of record af.tbof close of business November October 28, 1958 ©A. T. Co. - ; Harry - A COMMON AND PREFERRED DIVIDENDS The Board of Directors hat declared December 1, on December 18, etockholdere of jrecend November 28, 18582- American 10, 1958. Checks will be mailed/ h.-: 10581 to r dividend of On^ I^arJSLOO) per share has dedfcajrei upon the Common Stoekr par declare* payable RUBBER COMPANY 213TH COMMON DIVIDEND , ow value $13.50 per shares has* been i? tr quarterly dividend1 of 55e peY' •ham GOODALL - yard quarterly dividend of $.125 per share on ah Common Stock outstanding and regular semi -annuat dividend of $2.50 per share on the 5% Preferred Stock, both payable November 15,1958 to stock¬ holders of record afthedose of business November 1,1958. Vice President end Treasurer a B. GL BOSCH October 28,1958 - - ,ltn " ' "n"" ' quarterly dividend o#$L.<SH3£ ehaire on.the 4%%. Preferredi Stock has been declared, payable January' 1, 1059 to stockhofifers of record November 1 Secretary A Treasurer - per 28,. 10581 J. H. Macnknzte, Treasurer ...• Philadelphia, October 28j 1058k •• The Commercial and Financial Chronicle 48 , .Thursday, October 30, 1958 (1812) ices, etc.)—Robert F. Warner, Incorporated, 17 East 45th St., New York 17, N. Y. (paper)."^ BUSINESS BUZZ Process Due Joseph Lazar Industrial Rela¬ of —Institute Railroads-^ the on Revised Edition — tions, 100 Business Administra¬ tion-Economics Building, Uni" that the probably will take several more years of "education," and a greater threat to the free enter¬ prise system, to get business¬ men to start politicking at the but level, precinct these headaches of * Department The < : keep money ^iri to. pay the bills of Uncle Sam. At this time of Treasury the 1 For this reason, management are work¬ j percentage standpoint is negli¬ ;i ing operations that are coming gible. Yet, more and more are ; j up. ' trying to elect the best quali¬ j The Democrats — many of fied candidate, regardless of the them are New Dealers and a time. > number from a V ing. ! ^ . .. - maintaining that labor is supporting candi¬ dates" of both major parties. That is certainly correct as far as it goes, but the facts are Labor, leaders are ' • the number of Republican candidates probably could be counted on two hands, House, ; while of t { "I Vice-Presi¬ and President in statements, speaks only for Northern wing of the party, although theoretically he is supposed to be talking for the whole party. going to take a licking Nov. instance the predictions that the Democrats will t capture a Senate 12 majority of from 8 to seats, and up to as Perhaps the paramount ques¬ tion of the hour is: What kind , „ j what kind of of Democrats and Republicans are going to fill the Governorship seats and the Senate and House seats in state various the and Washington Not All Alike . There are Democrats who are each other in political philosophy, just as is there a wide chasm ginia and Senator Hubert H. Humphrey of Minnesota wear the Democratic label and sit on the same side of the aisle, but they have little in common in their political philosophy. In the Republican camp, for in¬ There I with say of New York is far removed as of Nevada as the East is from the West.1' . ^ • * 1 For . j all practical purposes same Senator and * Belong to the Senator Byrd Malone should same party.. • alignment of the two major parties. How that can be done with success, is an unanswered Question. Treasury's Headaches I Traditionally,, are" the press. , „ free The the V j Democrats spenders records . of in the Conlast not say so of j Meantime, business Mountain that' the will State of Jefferson and Jackson. - Republican emerge ; that i f > , ; take a big ! will ! perhaps the story that from it will be the fact for all practical hard-hitting ; be ' _ Republicans < now and 1960 ap¬ uncontrolled deficit spending and perhaps inflation. . J- \ particular, believe i to decide whom for purposes Vice-President Philip M. Talbot, of the Chairman of tthe Board the "sleeper" state for the party licking, delegates to and the country are in sound the labor monopoly, r United i to j Chamber of of "Commerce States, and some the other men are concurring publicly in Vice-President Nix¬ on's recent speech when he told business , , the "Chronicle's" own views.] n o fh i Fact — projects major companies of utilities—Electric Public Information Program, 2 West 45th Street, New York 36, N. Y.—Available in quantities of 10 at $2.50 for 10- • : ; ■ ' *' ' groups • of Industrial Relations, Univer¬ sity of California, Business Ad¬ ministration-Economics Bldg., 24, Calif., $1.75. Los Angeles Airline Traffic and Financial Data Quarterly Review — Air Transport Association of Amer¬ — 1000 Connecticut Avenue, N. W., Washington 6, D. C. (paper). Walter Credits and Acceptances— Ward Edition—Wilbert Fourth The Ronald Press Company, 15 East 26th Street, New York 10, N. Y. and Henry Harfield — of Public Employ¬ U. S. Department of Compendium ment —• Commerce, Bureau of the Cen¬ sus—U. S. Government Printing Office, Washington 25, D. C., $5. Defense We Can Afford—James F. Development Avenue, New York 711 Fifth 22, N. Y. (paper), 50£. — J. Gregory & Threat — 5, N. Y. (paper), $10.00. Selection, Training and Compen¬ sation < of Overseas Managers— Business Fourth N. Y. This (cloth), $7.00.' Leason Sons, 72 Wall Street, New York ica, Bank Economic Russian Is International, 200 Avenue, New York 3, (paper), $36.00. '[ i Japan illustrated \ 1959 — annual Lavishly Japan on containing articles, color photo¬ graphs and black and white photographs on ^ Japanese art, industry politics,_ etc., $6.50 per copy; in special cedarwood box, $7.25 — Asahi Shimbun, Tokyo, Japan — Foreign Subscription Agency: Japan Publications Trading Co., Ltd., Central P. O. Box 722, Tokyo, Japan. Distinguished Resorts, 1958-1959 (including rates, serv Digest of have prepared Richard M. Nixon will become can i all on Companies a Report comparing and evaluating the spokesman for the Republi: on Projects Energy sheets or nomic n g (paper), undertaken by power Brownlee—Committee for Eco¬ men: achieve by standing on the sidelines wring¬ ing. your hands and wondering why someone doesn't do some¬ thing about a problem that di¬ "You C. Nuclear role a Conserva¬ Raleigh, request. of Department Right to Work Laws:. A Study in Conflict—Paul Sultan—Institute publicly, is Mr. Nixon. Between 5 the N. not coincide with a personal choice, while he would J party. - - - (Mjp.- Nixon^ who is not afraid i to| J Studebaker-Packard responsible fov President Eisenr speak out, is probably hower taking the stump and lashing out at "radical" Demo¬ crats in the closing days of this campaign. It : has beenMr. -f j | • : Congress^ which they con,trolled iielp to support that argument j But' they had a great amount | ot Republican support. It is wrant the Democrats next week. Some If is their candidate for President, Mr. Eisenhower's they Democrats, and Chairman Butler j Boiled down to the hard, cold facts is a great need for re¬ J up ■r . ; may or may and over again that it be \ J he out probably have the convention traditional state of Vermont to politi¬ cal camp, just as series whole 1; Senator Humphrey and Senator Javits belong in the a 1 t on parently the most important do¬ mestic issues facing Congress immediately. at Green j and of Indus- tion and Development, Although he probably will over will any stake. One is will the Republicans lose their ; here from inee. important Republican questions stance, Senator Jacob K. Javits from Senator George W. Malone are or lie will "Sleeper" State the in Republican ranks. For instance, Senator Harry F. Byrd of Vir¬ Rockefeller [This column is intended to refleet the "behind the scene" inter! pretation from the nation's Capital ■ in naming the Republican nom¬ miles apart from their lina ! ; , substan¬ tial following, or whether there will be any third party move¬ ment? It is entirely too early,, party —* trial Development—North Caro¬ ; when election, etc. Laws; North Carolina—Survey affects you." "lame duck" chief executive. keen over the big third Legislatures. every ernment substantial influence, of course, interest is stakes from '* New York to California, the ; question arises in the Nation's -j Capital: Will there be a "third j party" in the 1960 Presidential ; election? No one can say at this j time whether there will be a'" eral 40 seats in the House. many as 1 . almost : President Eisenhower will have the Nov. 4 gen¬ before Even Tax of Chicago Press, Ellis Avenue, Chicago 37, 111., $1.75 (one year's subscrip¬ tion $6.00). > Nowadays, problem of gov¬ you. should land but . ■ affects rectly William F. Knowcapture the Cali¬ j fornia governorship, Mr. Nixon will be the quarterback for the ' Republicans until the 1960 Re¬ [ publican National Convention. ernorship, t and speeches his For are • Even if Nelson B. tee, who comes from Indiana, are convinced that the Republicans are of the Commit- National Democratic t under Contributions Income 5750 should win the New York gov¬ Paul Butler, Chairman ! Right or wrong, there appears to be no doubt that a great 4. the going up!" Economic An¬ University 1. dent. of and Costs Research Returns; alysis drop in this stock—my hair¬ (Northern- Wing). Mr. Nixon has hurt the Demo¬ From a national standpoint, {•.■ crats, not only in the current the Northern Democrats are campaign, but in past campaigns. completely in control and will j Nixon to Lead name the next party nominees ; ' v' ■ ■ / for "experts" the dresser assured me it was Democrats . the can't understand Exchange Floating a System; the toicking for GOP? of under Republicans are probably . closer together in Congress than rthe Southern Democrats and the management are discovering belatedly that they are suffering because of their failure in the past to get out, roll: up their sleeves and do a little doorbell ringing of their own. There are many people in this country unsold on the profit majority 1958, ^ ; and Southern Democrats The Business and system. containing arti¬ cles on Monetary Reforms and Monetary Equilibrium; Econo¬ mies of Scale in Financial Enterprises; A Theory of Foreign-Exchange Speculation Northern Wing Controls if not one. Econemy, Political" of October, Social '» the of in Embassy Journal .*■ with bigger working majorities than they had before, But it will not be easy sailing for them. The party is badly divided on the national level, and the breach may widen. Democratic members of the 200 control continue will ably Section the U. S., 610 Fifth Avenue, Nqw York 20, N. Y. (paper). f Russell-type—prob- B. and Vitality of Coal Mining Indus¬ try—Economic French Congress, supporting probably is labor Richard ! Mar-f seilles-Algiers; . , the at Cable Telephone the French good many of them are of the Senator Byrd and Senator . marine v * . political label he may be wear¬ _ j articles on Brussels World Exposition; Sub- j ;■ However, the . Technical Pavilion French the { ing for the first ' Bulletin—Including ; the Treasury been have officials — and Economic French working overtime in preparation of the big refunding and new financ- and ness paper — Bank Merger, etc. tax flows not too much into the Treasury. year, representing busi¬ sallis-Osake-Pankki, Finland to fighting is toeing made in that direction in the Nov. 4 general election. Many people \ days. autumn is step a full just Helsinki, including articles on Development.of-Fin^r land's Foreigi* Tfdde after 4he Devaluation; Butter as an Agri¬ cultural Problem in Finland; *. big spending, Treasury Department is J ; the of ; because It — < Review—Kan- Economic Finnish C. D. WASHINGTON, Los / California, of versity Angeles 24; Calif., $1.25. r- Botany Mills . Copies on request Nixon who. has sparked, the Republicans, and it is going fto be the Vice-President that Republicans everywhere will be looking to for guidance. ; : LEANER t W. Investment Securities ' II Post Offict Sqvart, ,; [The higherups in the ■ Demo- Telephone cratic party do not like the Vice- lUbbard 2-1090 President. One reason -is that ; i ! Boston 9, Mast, E" ~ -"V Teletype MB Volume 188 Number 5790 . . . The Commercial and Financial Chronicle PICTORIAL 1 Corporate Bond Traders Club of New York Dick Abbe, Shearson, Hammill A Co.; Herb Fitzpatrick, Dick City Bank Farmers Trust Company; J. C. Blockley, Ed Uhler, R. S. Dickson A Co., Inc.; Frank A Merle-Smith; Barney Harris, Upham A Co. Welch, R. S. Dickson A Co., Inc.; Stan Dawson-Smith, Cruttenden, Podesta A Co. Tom Dick Miller, McPhee, Drexel A Co.; Ed Bauman, Lee Rand A Co.; Bill Midgley, New Company; jerry Ayers, Bear, Stearns A Co. Albert Rossner, Company; Goodbody Tom Neil Brady, Blyth A Co., Inc.; Marks A Co.; Frank Orlando, Good body Feeley, Good body A Co. York Life Insurance Murray, Bankers Trust Company; Ralph Albanese, Bankers William Cunningham, Bankers Trust Company Weeden A Co.; James Trust Ginnity, Frank J. Becherer, A Irving Co.; Trust Allan Philip George Yook, Lazard Freres A Co.; Charles Zingrraf, Co.; Ed Pereyra, Kidder, Peaibody A Co. Laurence M. A Harry Hair, Guaranty T.ust Company; Ed Nielsen, Lazard Freres & Co.; Arnold J. Wechsler, Ogden, Wechsler A Co. Company; George Bernauer, Bank of New Co.; Bill Doherty, Fahnestock A Co. York; Allan Kadell, Kadell A Byrne, Van Alstyne, Noel A Co.; H. C. Ballou, Shearson, Hammill A Co.; Gordon Equitable Securities Corporation/ Edwin A. Clarke, Singer, Deane A Scribner Phillips, 2 The Commercial and Financial Chronicle PICTORIAL . . . Thursday, October 30, 1958 26th Annual Dinner AI Moore, New York Hanseatic Corporation, Boston: New York; Walter Kane, Shearson, Hammill Louis John Ohlandt, New York Hanseatic Corporation, A Co.; John Reilly, C. H. Walker A Co. H. Rand, Cowen A Co.; Charles M. Kaeppel, Eastman Union Securities A Co.; Hal Murphy, Commercial A Financial Charles Walsh, First Dillon, Charles Weigel, W. E. Hutton A Co.; Art Sachtleben, American Securities Corporation; Schneider, Burnham A Company; Ray Pyle, Schoellkopf, Hutton A Pomeroy, Inc. Boston Corporation; Ed Bauman, Lee Rand A Co.; Jim Crane, Co.; Ed Whiting, Carl M. Loeb, Rhoades A Co. Van Alstyne, Louis Voikomer, Stone A Webster Securities Corporation; Vincent J. Mellin, Eastman Dillon, Union Securities A Co.; Daniel J. Conroy, Jr., Morgan Stanley A Co.; Henry Kuipers, Lord, Abbett A Co. Robert Rosenfeld, Stern, Lauer A Co.; Richard Schiffman, Stem, Lauer A Co.; William Fleckner, Merrill Lynch, Pierce, Fenner A Smith; Bob Towbin, Asiel A Co. Bill Madden, Freeman A Co.; George Nelson, George Nelson Co.; Charles O'Brien Murphy; III, Pearson, Murphy A Co. Chronicle Dan Fay, Goldman, Noel A Sachs A Mabon (Jock Duffy, Michael Co.; A Dave Fitzgerald, L. F. Rothschild A Co.; Joseph C. Nugent, Co.; Elliott Bliss, Morgan Stanley A Co. Vilas A Hickey; Walter Huke, H. Hants A Co.; John Meyers, Gordon Graves A Co.; Vincp Shea, Glare, Forgan A Co. Number 5790 Volume 188 . . . The Commercial and Financial Chronicle PICTORIAL 8 October 17, 1958 at Hotel Roosevelt •Herb Joe Stern, L. F. Rothschild A Co.; Frank Moran, Vilas A H'ickey;' Ricky Company; Paul Bruehl, Shields A Company Hayes, Gregory A Sons; Jack Barker, Lee ration; Bob Brearley, Wood, Gundy A , Higginson Co., Inc. Corpo- Goodman, Shields A Bache A Co.; George Watson, Parrish A Co.; Jim Sebold, Coffin A Burr, corporated; Joe Scheidecker, Coffin A Burr, Incorporated Kidder, Peabody A Co.; George M. Becker, Kidder, Peabody A Co.; Dick Williams, Kidder, Peabody A Co.; Sam Weinberg, S. Weinberg, Grossman A Co.; Reilly, Equitable Securities Corporation; Everett Rubien, Dean Witter A Co.; Eastman Dillon, Union Securities A Co.; Joe Farrelt, Gregory A Sons; Herb Wilson, J. P. Morgan A Co., Inc. Aal, Vin Hurley, Bache A Co.; Bill Boothe, Co. Burns Bros. A Denton, Inc.; Eddie Elkan, Cowen A Richard Wigton, Jack Jerry Bill Salisbury, Les Barbier, G. A. Saxton A Co., Inc.; Harry Gunn, G. A. Saxton A Co., Inc.; Walter 'Johnson, G. A. Saxton A Co., Inc. In- Bill McGovern, Blyth A Co., Inc.; Jack Barker, Lee Higginson Corporation; John Gahan, Schoellkopf, v Hutton A Pomeroy, Inc.; Eddie Elkan, Cowen A Co. Jim Philadelphia; William H. Steen, First Boston Mundy, Suplee, Yeat man, Mosley Co., Inc. "erb Firs poration, New York; Herb Tietjen, First Boston Corporation, New York; Bud Hardy, First Boston Corporation, Philadelphia — - - - - Cor¬ 4 PICTORIAL The Commercial and Financial Chronicle in . . . Thursday, October 30, 1958 Group's History 1 'C.-3? %. % Wm :iM: 't- f| t 11 % 1 1 I w f m w II t / % ! c> . i Dick Dunham, John Fitzgerald, First Boston Corporation/ Nick Witte, First Boston Corporation; Kean, Taylor A Co.; Ransom Berneburg, Wood, Gundy A Co., Inc. Estabrook Leoni W. A C. Pitfield Co.; Albert A Co., Inc.; Charles H. Rossner, Weeden A Co. Jann, Frank Andy Mulligan, Beyfuss, Good body A Co.; Lou Zwahl, Larkin, Goodbody A Co. Tuzo, Tricontinenttd Corporation; Lee J. Rand, Lee Rand A Co.; Sy Fabricant, Wertheim A Co.; Stephen, Vilas A Hickey Meyers, Gordon Graves A Co.; Paul Lane, Kidder, Peabody A Co.; Herb Fitzpatrick, Merle-Smith; Frank J. Ron an, New York Hans eatic Corporation Mabon A A1 Co. Tom Dorfman, Goldman, Sachs A Co.; Frank Verian, Merrill Lynch, Pierce, Fenner A Smith; Joseph Cabbie, Burns Bros. A Denton, Inc.; F. W. Robson, McLeod, Young, Weir, Incorporated Francis J. Bill Ray Wildey, Baker, Weeks A Co.; Weeks Leo Richard, A Dick A Tisch, Fitzgerald A Company; Ed Kelly, Carl M. Loeb, Rhoades A Co.; Stanley Roggenburg, Roggenburg A Co. Rollie Gunther, Baker, Weeks A Co.; Co.; Harold G. Kelly, Vilas A Hickey Clarence Nelson, Baker , Hcdsey, Stuart A Co.; John McCormack, F. S. Smithers A Co.; George Brounoff, Co.; Vic Garbe, Morgan Stanley A Co.; Richard Walker, Vilas A Hickey Lee Rand A