Full text of Commercial and Financial Chronicle : October 8, 1959, Vol. 190, No. 5888

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ESTABLISHED 1839

IUc. u. 8. Pat. Office

Volume 190

Number

5888

Editorial:

New

;,v".

'•/

Yprk_7, N. Y., Thursday, October 8.

some

sort

procedure/ the

"approved-if-no-one

member

nations

Bank and the International

endorsed the creation of

U. S. Economic

objects"

the

1929

World

Monetary Fund have
International Devel¬

was

Thirtieth
tion

the President
approved some such institution in

anniversary of "Black Friday" prompts examina¬
reasons

advanced

for return

severe

four
a

course,

let

Jacoby cautions we may expect temporary
set-backs from time to time and
prescribes program to im¬
prove our growth progress and economic

is not yet

the nations of the earth

Monetary Fund. The fact
than

the

stock market values

rather vaguely worded
concept is as yet
approved. Many troublesome details having to do
nature of

tions remain

the

new

agreed to by
Important differences concern¬

economic^

decline

and

that

lasted

the

none

further funds into

foreign countries is
Continued

sion

when

SECURITIES

NOW IN

afforded

the

reason

ferred
of

United

Municipal I

and

STATE

DEALERS

Expecting:

for

1929-32

expecting

Deep

Recession

deep

recession

that

INDUSTRIAL

CHEMICAL BANK

PUBLIC

serious

believe that

was

and

the

and

advanced

BONDS

Pessimists

consumer

for

durable

expecting

goods. A second
deep recession is the
on

page

in corporate

623

So.

State, Municipal

Burnham

and

MEMBERS NEW YORK ANO

15 BROAD STREET, NEW
CABLE:

Company

YORK 5, N.Y.

•

San

OF NEW YORK

Coast

014-1400

Bond Dept.

Inquiries Invited

Teletype: NY 1-708

TELETYPE NY I-E2S2

Exchange

Net

Active

Markets

Dealers,

T. L. Watson & Co.

Investment

Securities

Banks

New

York

New York

Stock Exchange

American

Stock

Commission

Orders

Canadian

CANADIAN

MEMBERS NEW YORK STOCK
BRIDGEPORT

•

PERTH AMBOY

BROADWAY
NEW YORK

for

california's
civic

improvement

DEPARTMENT

Goodbody

COMPANY

MunicipalBonds

—1

TO. MONT REAL AND TORONTO

NEW YORK 4, N. Y.

BANK

Executed On All

Teletype NY 1-2270
STREET

Chase Manhattan

BONDS & STOCKS

Invited

Exchanges

Exchange

the

Correspondent—Pershing & Co.

CANADIAN

securities
Inquiries

Southern

Brokers

canadian
Block

BROAD

DEPARTMENT

Maintained

and

1832

Members

BOND

Securities

ESTABLISHED

Bonds and Notes

Exchange

Diego, Santa Ana, Santa Monica
California

Distributor ;
-

Pacific

Exchange

Pasadena, Pomona, Redlands, Riverside,

AMERICAN STOCK EXCHANGES

CO-URNHAM

Stock

Encino, Glendale, Hollywood, Long Beach,

THE FIRST NATIONAL CITY BANK

New York 15

York

Offices in Ciaremont, Corona del Mar,

COMPANY

AM Broad Street

New

Members

UTILITY

Public Housing Agency

co,

Hope Street, Los Angeles IT,

Associate Member American Stock

IMMI DU'VHt'MDNT

has arrived

"secondary" contraction.

Continued

Lester, Ryons
Members

SECURITIES

3D ALL AS

"primary" down7

that the time

they discern "saturation" in the demand for

homes, autos,
reason

1948-49

World War II

registered with the SEC and poten¬
Section, starting: on page 32.

FOREIGN

NEW YORK

FIRST

the

generated during the war. Thus the
is interpreted as "primary" and that
"secondary" to World. War I. Some say

the recession of

for the

MUNICIPAL

and

RAILROAD

•

1921.

California

HAnqver 2-3700

Dealer

of strength¬

UNDERWRITERS
BROKERS

Underwriter

us assess future

some ways

demands

turn after

NeilH. Jacoby

Unitgd States back for almost

now

meas¬

and

Securities

TRUST

Finally, let

Housing,

State and

telephone:

deliberate stabilization

It required seven years merely to recover the

"Securities in Registration"

are

being advanced for expecting
analyze them carefully. Next,
structural changes in our econ¬

recession

reces¬

complete picture of issues
our

There

States which is often heard is that the U. S.
economy has had an historical pattern of behavior which
includes a so-called
"secondary" postwar depression.

REGISTRATION—Underwriters, dealers and investors
a

tial undertakings in

Government,

Public

the

our

decade.

securities

U. S.

the

sion of the 'Thirties set the

are

weakness

well.

consider the main

Readers

situation in the world requires that the aver¬
age annual growth rate be increased. The great depres¬

necessary.
page

Let

performs

economic charts claim to see a repetitive
pattern of economic behavior after major wars, such as
the Civil War and World War I. This
pattern includes a
."primary" short, sharp recession two or three years after
the end of the war, caused
by transition from military
civilian -piH^itettom and -raw-material
price adjust—
merits.
It also includes a "secondary" long and deep
depression 10 or 12 years after recovery from the "pri¬
mary" recession, caused mainly by saturation of de¬

States would be
disastrous. In the first place, it would
lower the average annual rate
of
growth of our economy at a time

new

pouring

Clearly, another prolonged

Congress which has

too enthusiastic about

signs

recession.

United
.

an.

some

econ¬

now

Reasons for

and

examining

sure

during the past 30 years and their probable effect
its capacity for sustained
growth. Then, we may

One

present U. S. economy and its powers
to resist a long and deep
depression.

institution is, however, one of the chief
sponsors
of the idea, but action
shown itself

for

alleged

usual would be
expected to con¬

liberally to the funds of

wave

SVa

production

lit-.is

America, the

most

•

occasion

be
are

coun¬

ening the forces of steady growth.

income in the U. S. economy in half
before it was over. The 30th Anni- 'i
versary of this debacle is no occasion

should be made and the terms under which
they
would be made are known to exist. The Chief
Executive of this United States of
as

the
free-market economy

developed since the enactment of

cumulative

that

cut

ing-thb spe^Sc tiaT5i^"bF tlre^"Type'

nation which

prestige throughout

our

the Employment Act of 1946.

Anniversary of the begin¬

were

factors; set in motion
years

institution's opera¬

be worked out and

member countries.

30th

suddenly erased in
liquidation; and the collapse of the
•stock market,
accompanied by other

that

reasons

review the automatic and
ures that have
been;

ning of the Great Depression of the 'Thirties. On
that
disastrous "Black Friday" in
October, 1929, billions of

with

is that nothing

and
of

economic prospects, and describe

This autumn marks the

the World Bank and

We must

severe

stability.

institution, which, of

power

performance

omy

tion measures. Dr.

existence, will or would have a billion dollars
capital subscribed in the same proportions among

tribute

infliction of

omies.

we: (1) are free of serious weak¬
(2) possess acquired resistance to a serious
decline;
and (3) have broken the Jink between
employment and consumer
spending with "deliberate" and "automatic" stabiliza¬

response apparently to complaints that the World
Bank was too reluctant to loosen its
purse strings
to all who wanted financial
assistance/^
/ ;
new

States

The

being closely compared by the peoples of other
tries with those of
centrally-planned authoritarian

nesses;

year j ago

In the second
place, a prolonged
S. economy would
irreparably dam¬

of the U.

United

age

world.

recession. Findings show

that the United
States
Secretary of the Treasury suggested and

The

Copy

1959

than

Cents

ground lost after 1929.
recession

the President

institution which itself special¬
izes in loans
private capital does not care to make.

Stability:

versus

By Dr. Neil 11. Jaeoby,* Dean, Graduate
Schoolsf Busi¬
ness
Administration, University of California. 1ms Angeles,
and former member
of the Council of Economic Advisors

opment Association to make loans to borrowers
unable to get funds from Us
parent organization,
the International Bank for
Reconstruction and

Development,

Price

AS WE SEE IT
By

1959

Poxeooj! Securities
(orporatioti

Co.

EXCHANdE

NORTH LA SALLE ST.
CHICAGO

Exchange Place, New York5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

MUNICIPAL BOND DEPARTMENT

Bank

America

n.t.a S. a.

San Francisco

Los

Angeles

The Commercial and Financial Chronicle

Thursday, October 8, 1959

(1474)

For

Banks, Brokers,

^The Security I Like Best

Dealers only

If it's Over-the-Counter

•

in the

Traders Say

Call "HANSEATIC"
advantages

solicitation of an offer to

Primary markets in

than 400

unlisted securities.
2. 39

years

Purolator Products Inc.

wire system.

private

—^

parable period in 1958.

of in¬
vesting have seemingly been dis¬
carded, leaving in its wake today's
market of relatively low yield -

Broader Coverage.

5. Fast,

dependable executions.

this

vailing

Corporation

BOSTON

ing

CHICAGO

•

.•

Wires

items

Steiner,Rouse & Co.

the head of

Purolator,

metal

the largest

the

Mobile, Ala.
Direct wires to our

Table

from

seen

amounted

STOCKS
For current information

million, about five times what it
was 10 years agp.
It is anticipated
that

Call

Richardson Co.

write

Yamaichi

pany's new product development
program there will be a signifi¬
cant increase in research expend¬
itures in the years to follow.

with the advent of the com¬

Securities Company
of New York, Inc.

tanks

Although
(see

Table

from

sales in 1958
were down 7%

1957

million,

Affiliate of

company

III)

record

sales

net

Yamaichi Securities Co., Ltd.

$37.8

in 1958 in¬
creased 8% to $1.6 million, one
significant segments of our econ¬ in the case of filters used in nu¬
of the best years in the company's
to
filtrating miomy—the automotive and aircraft clear reactors
In the decade 1949-1958
cronic particles from liquid or gas history.
industries
as well
as other in¬
company
sales rose 318%, from
dustries almost as varied as the streams.
$11.1
million 0 to
$35.3
million,
filters themselves.
A vast and expanding market
while
profits
increased
some
The leading customer of this 36 l)iat has been virtually untapped
1,500%. Sales for 1959 should ap¬
year-old company is the auto¬ lies in the important giant air¬
proach the $40 million level and
motive
industry, with Chrysler craft and missile industries.
with
improvement in the com¬
the largest single account.
While
The filtration of fuels and of pany's margins, I estimate earn¬
the automobile industry accounts
fluids in the complex hydraulic ings at about $4 per share.
for about 60% of Purolator sales,
control systems of airplanes and
Since 1952 the company's cur¬
the data in Table I shows two im¬
missiles is a vast new field in
rent
ratio has not been below
portant aspects of company sales which the
company has entered
three to one while stockholders'
when compared to the production
with zest. Practically all commer¬
equity has increased from $9.78
of motor vehicles.
cial transport and military planes
to $19.39 per share in 1958.
...Pirstr£ura
now flying,
a3 well 03 aueh jetsa
more
constant
rate irlian as tHe ^deihI
Considering Puro la tor's strong
707, Tlougras DC-8;
motor vehicle production, reflect¬ North American Aviation Rocket basic position, their broad diversi¬

Fischer & Porter Inc.

branch offices

JAPANESE

the

expenditures for en¬
and
research has
to
approximately
$1

gineering

in¬
Gerald Ray
feet in diameter. Uses of the com¬
dependent
pany's filters vary from filtering
producer of " •
:
liquid and air filters, is in .the po«-' 80,000 gallons per ,, minute,, under
sition to take advantage of two extreme range of temperatures as

A Continuing Interest in

New Orleans, La. - Birmingham, Ala,

chemical and

the

in the past several years

company's

pencil to those used
measuring many

can

that

are

eraser

with

NY 1-1557

HAnover 2-0700

gfeat portion
is to be closely

program

identified

cosmetic products,

smaller than

from

this

■—

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

nuclear industries.

pharmaceuticals, petro - chemicals
and petroleum.
The filters used
in these industries range in size

York Stock Exchange

Members New

^Members American Stock Exchange

opportunities, the company
a
year ago initiated a three-year
new
product development .pro¬
kets of

manufacturing of such

food,

filters

Purolator

used in the

this time.

Principal Cities

com¬

guise

Presently

possess¬
relative

attraction

SAN FRANCISCO

PHILADELPHIA
Private

still

Teletype NY 1-40

WOrth 4-2300

pre¬

influ¬
regard

8,
among
those stocks

New York 5

120 Broadway,

the

solely' dependent upon
of the auto manufac¬
turers, the company under ag¬
gressive and capable management
has
expanded their markets to
include a variety
of industries.
the

Exchange

Stock

Harry

gram/ to be financed directly out

was

pany

selling around

Member

Associate
American

Whereas in past years

P urolato r,

1920

Established

ence

Bought—Sold—Quoted

Harry P;
P.

—

of internal funds. "A

equi t i e s.
In

Foods

-—From

multiple

New York Hanseatic

Horizons
Missiles

Business

Widening

h i g h

Louisiana Securities

Gerald

Dallas,

and

tenets

time-tested

The

Inc.

President,

In all, Purolator
earnings for the six months
ending June 30, 1959, increased by
over 4Q%compared to the com-.
earnings.

Texas

Stock Exchange

Members New York

0-T-C experience.

3. Nationwide

Company, Dallas,

Sanders

Alabama &

Schaub,
Schaub,
■Inc., Newark, N. J. (Page 2)

and
sales

sales

company

—

Ray, of Sanders & Co.,
Texas. (Page 2)
Time,

increase

RAY

Products, Inc.

Purolator

be construed as an offer to sell, or
buy, any security referred to herein.)

of:
GERALD

for favoring a particular security.

(This is under no circumstance to
as

combined

the

For

forum in which, each

participate and give their reasons

Participants and

Their Selections

week, a different group of experts
investment and advisory field from all sections of the country

A continuous

v?7

This Week's

Forum

profits

Brokers

Investment Bankers

111 Broadway,

N.Y. 6 COrtlandt 7-5680

—

Stouffer Corp.

Keyes Fibre Co.

BOENNING & CO.
1914

Established

1529 Walnut Street

Philadelphia 2, Pa.
LO 8-0900
ATT Teletype PH 30

115 Broadway

New York 6, N.
CO 7-1200

ing the company's more lucrative Plane X-15, Lockheed Electra and
replacement business; and second, B-58 incorporate Purolator filters
the apparent underlying growth in in their fuel and
hydraulic sys¬
sales of over some 3,500 different tems.
Moreover, in the field of

MUTUAL.

SECURITIES

models

FUND OF BOSTON

Prospectus

that

axiomatic

Request

filters "that

industrial

the company has

these

1KELUER BROTHERS

HBO COURT STREET, BOSTON 9,

MAS*.

(Corner of Washington St.)

five

Telophono Richmond 2-2330

Research

Just

tion

million

units

looking forward to

' rh

Talk
•

nificant

optimistic

•

which

materially

•

produc¬

sweeping

technology of
rapidly. Puro¬

has

and research scientists in the

com¬

TABLE

Company Sales

vs.

■-

Purolator
Motor

Vehicle

Production

69.8

Installment Sales
Factoring (Notification

114.1

94.2

1954

$35.3
Engineering & Research
1.1
-Eng. & Research % of sales 3.1%

125.4

90.1

TABLE

Harry P. Schaub

NEW

Income Taxes (000)__

(000)
Share

♦Earnings

Per

Dividends

YORK 3, N.Y.

CHICAGO • DETROIT •

(000)

Net income

YORK

ORegon 7-3000

Sales

Per

BOSTON

for

1955

1954

$37.8
1.0

$33.7
1.1

$27.5

$23.5

0.7

0.5

3,3%

2.4%

2.2%

Corpora¬

ond

June

the

sec¬

Janu-

1958. There

400%

in the past 20 months

been

since

the last article appeared in

January 1958.
With my

background of nearly

forty years of activity in special
situations I now recognize con¬
siderable merit
Time

1956

1955

1954

2.16

2.67

2.60

1.60

3.57

2.27

0.70

$1.85

2.00

§2.50

$1.75

19o9.

$Plus 5%

stock dividend.

§PIus 10%

DIgby 4-2727

articles

about 235%
1956

*Based

Liquid

1955

ary

$25,011 $35,366 $37,884 $33,758 $27,550 $23,531
1,447
1,256
1,399
1,512
2,486
1,367
972
1,309
1,620
1,505
2,167
1,377

Months ended June 30, 1959.

June 30,

—

ap¬

Inc.

available

the stock of
today at a

price of around 64-65. This com¬
pany always had excellent man¬
agement under the control of in¬
fluential, capable, and experienced
leaders headed by Henry R. Luce
and ably assisted by

the active and

successful President, Roy E. Lary

Refined

Exports—Imports—Futures

appreciation of al¬
since June 1955 and

has

1957

—

1958

5, N. Y.

first

and

Company Operations
f1959

Inc.

STREET

are

tion—the

100

,2.7%

WALL

preciation in
price. My last

97.5 ,100

1957

____

■

opportu¬
nities avail¬

most

Sales

Exchanges

some

ply

(In Millions of Dollars)
1958

Stock

Pitts.

LOCUST ST., PHILA. 2, PA.

the
pe¬

riod there

1953

1958

(Associates)

1516

Hospital Sup¬
1954

1955

Engineering and Research Percent of Sales

James Talcott, Inc.

postwar

Phila.-Balto. Stock Exchange

American

Non-Notification)

221 FOURTH AVE,, NEW

have

Machinery

IVS4

prices

139.8

98.1

Boston

recommended

1956

146.5. 156.9

Sales

1957

1958

Inventories

POUN0EO

Although equity
increased
substan¬

temperature,
radioactivity.
To
the vast new mar-

Production

' -

Members:

privileged to present in this

Motor Vehicle

(1953=100)

Accounts Receivable

and

been

popular column.

two
.

ALBERTJaGAP!-AN&CQ»r

SUGAR

able

further

$6.00

share.

NEW YORK

This is the fourth article I have

pressure,

toxicity
and
capitalize upon

per

Dealers

tremes

should

Dividends paid sinca

1942, Currently about

Time, Inc.

tially

aggressive small-loan

chain.

Member National Association Security

pany's
modern
laboratories
in
Rahway, N. J.
Their work lies
in the development of filters that
can be adapted to perform under
conditions
characterized
by ex¬

sig¬

SCHAUB

President, Harry P. Schaub, Inc.
Newark, N. J.

ad¬

the

TABLE

[

making

lator, for example, employs a staff
of
over
one
hundred
engineers

1960 enthusi¬

taken

aviation,

We suggest Class "A" stock

LAMBORN & CO.,
P.

Talcott

has

revival

contribute

(Non-Notification)
•

filters

filtration advanced

based on the nation's
continuing economic health and
the introduction of "compact" cars.
Thus, the prime market for Puro¬
lator

Development

fields

automobile

and

are

vances,

astically

COMMERCIAL
FINANCING or
FACTORING

and

the

missiles

figures of something like six mil¬
lion.
Moreover,
Detroiters
are

For

commitments.
HARRY

Projections of 1959 automobile
production by the parent industry
has ranged from a conservative

CO., INC.

improving trend
of
sales and earnings, I believe the
shares selling at about 10 X 1959
estimated earnings and
yielding
3.6%
have
attraction
for
new

££

C'ATo

the

and

company's

success

earnings.'

are

operations

ulus, Terrier and Thor.

in broadening its
product mix, lend some degree of
stability to Purolator sales and

GENERAL DISTRIBUTORS

products

Bormarc, Ju¬

Atlas,

piter, Matador, Nike, Polaris, Reg-

replacement market and the com¬

pany's

Purolator

found

the

factors,

the

missiles,

It is

developed.

fication

EARN

607,761

stock dividend.

outstanding

Continued

pa-QQ

20-Year
35 Industrial
FOLDER

Stocks

ON REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N.

jTVolume 190

Number 5888

The Commercial and

Financial Chronicle

(1475)

I N DE~X

SEC and the uHot" Issue
By James C. Sargent,?

Commissioner, Securities and Exchange

U. S. Economic Stability: 1929

intimates action that

be taken

can

Page

SEC and

not identified in the
prospectus but who, nevertheless, act
designated underwriters in what is said to be a scheme to'raise

the

market

price

claims that in

of issues

such

cases

the securities rest in the

keep

real

marketed.

not

distribution is

Commissioner

hands of the bona fide

inveighs

against

Mr.

—Fred
Sound

inspection

pany

discusses contemplated investment

and

program;

outlines

proposed

various statutes administered

The

business

protecting

the

.—Saul

from

of great mutual concern and inter¬

tors

have

est

much greater

mem-

bers

North

Ameri¬

the

tors and

our

fine

and

problems
spheres of

ac¬

oargeut

sat

functioning of the capital markets.
properly

hend many of the problems which
at the present time we are facing,
it is essential that the significance
and

implications

the

illustration

"an

this

lowed

a moment
stocks listed

billion

years

1, 1929.
By the
1932, or some three
later, that aggregate value

$15 billion

billion.

$74

market

One

loss

lems

the

been

Activities

—Cyrus Eaton

had by that time
almost a complete stand¬

place

732
As

—Daniel

for

Threat

$134

disclosure

;

12
1#

permachem
corp.

Burr__.

speedry

•.

K. Andrews

chemicals

Purchasing-Power Bonds
21

Co.

alaska oil

cure"

should

'14

Statewide Bank Holding System for New York
Favored in

metropolitan

Study Prepared by Marcus Nadler and Jules Bogen

Everett J.

broadcasting

Automated Savings and
Mortgage

that

believe

basic atomics

Market Discussed by Morgan

"Survey''__Z_______:r_'___^_'rr--r__'_____

Operations Analyzed by

Livesey__,

25/

pro¬

50% Increase in Consumer Markets Forecast by Chase
Manhattan

area

Brief'

J.F.Reilly&Co.,Inc.

Regular Features
As

fol¬

Bank's "Business

Bank

See

and

(Editorial)

Insurance

Cover

Stocks—

;

prflle^n&...p.uhlt£„
Biisiaess Maifs Bookshelfrir__r—
ji—-__-r_ri_^r_^i——:~l

Pricing Technique

the

what

"hot"

one,

Century Chemical*

First Lumber Corp.*

have

issue

Dealer-Broker Investment Recommendations.

really serious prob¬
which we have lately

faced

Comings Events in the Investment Field.

of the

with

dubbed

to Our Own Common

Guaranty Trust

Einzig: "Economic Consequences of the British Election
Results"

oc¬

still.

By comparison to these fig¬

curring both under Regulation A
filings and under full registra¬

the value of all stocks listed

Electronic Research
13

Associates*

tion.

of June

lion.

30, 1959
all

changes

was

stocks

$298.8 bil¬

included,

a^e

value amounted

all

decides it

ex¬

this

There is

total

of that date to

statements

total

the

In fiscal 1958 there

such

913

$16.9

34%

some

tion statements filed
total

dollar

amount

was

workload

companies,

new,

many

sheer

promoters'

has

because of

Our

-r

Utility Securities

Now

Prospective

Securities Salesman's

gen¬

Direct Wires

.___

Offerings

Corner..

Chicago
Cleveland
Dallas
Los Angeles
Philadelphia

Registration

Security

inc.

40 Exchange Place, N.

Teletype NY 1-1825 & 1-4844

MACKIE,

HA 2-9000

Securities

San Francisco

St. Louis

the inherent

The Market

security, there is lit¬

but that immediately

The

the registration state¬
effectiveness,
there will
occur
a
trading market substan¬
tially higher than the public of¬
fering price set forth in the pro¬
spectus.
Oddly enough the only

exuberance,

Singer, Bean

Report

Railroad Securities

stock.-.

been

Reporter's

Public

The re-

the

Governments.

request

May..

ment's

the products

Bankers

Our

Reporter

Certified Industries*

Wilfred

following

small, untried
of which seem

to be little more than

market

because

tle question

porate Finance Division, but also
because it indicates that a greater
number

nature of the

Cor¬

our

make

erated

it is the numerical
which
generally
deter¬

only because
the

being at least.

either

$300 million less. These in¬
creased filings are significant not

mines

time

Activity....

...

Observations—A.

issue is

floating supply has thus been
restricted
and,
where there is
great
interest
in
the, security,

although the
sought

of the

^Prospectus

Funds

News About Banks and

market and

The

registra¬

some

figure

News—Carlisle Bargeron

to market.

maining 22% is then allotted to
trading houses which are prepared

filed

billion.

Thus in that one year there were
313

placed
at the prospectus price with se¬
lected purchasers who presumably
are expected to hold the stock for

filed during the 1959 fiscal year,
seeking a total dollar amount of

were

obviously

About 78%

30, 1959, there had
been 1,226 registration statements

seeking

Mutual

the company desires to offer
100,- /
shares of its common stock.

June

$16.6 billion.

wants

Indications of Current Business

000

$337.6 billion.
As

From Washington Ahead of the

For
example, a compara¬
tively new company or one which
has always been privately owned

the New York Stock Exchange

WHitehall- 4-6551'

Project^-Hon. C. Douglas Dillon

ures,

Trustee's Investment Policy

1959,

come

Dept.

10-

___

A Proposal for Issuance of Federal

in the

closely in this

Decries

had fallen

investors.

Sept.

middle

Telephone:

What Canadian-American Policies
Should There Be?
-

of prevention is worth

...thc-jjatexcsls-of..

the New Yogk-Steck-Exchange

"stood at'an aggregate value of $89

Insurance—Edward

increase in

should develop

pound

growth, let's recall for
of all

because

ounce

that the

value

statement

looking towards a more ef¬
fective
follow-up procedure in
which we
could
keep in closer
touch with sales techniques and
with possible manipulative
prac¬
tices.
Perhaps the old adage that

understood.

STREET, NEW YORK

There's No Competition Between
Mutual Funds and Life

gram

tremen¬

securities business

out

perhaps

dous, dynamic increase in activ¬
ities in the

1958.'

requiring

cerned

compre¬

WALL

be¬

offering circular^,
Reg. A, we think, seems to be
working fairly well. We are con¬

serious consequences in the proper

order

the facts

1956.

Obsolete Securities
99

—Guerry Snowden

certain mini¬
mal amount of information to be

occurred

device

Wall!

Things to Qome—Roger W. Babson

New Foreign Aid

effective.

against

millioh
Jollies

the collapse

boom

their

Reg. A filings for a total dol¬
value
of
$170 million were

made

today,
might

there

upon

lar

tivities, which

have

off

854

and

cull

must

filings following a
in these filings at¬

falling

each other's

■

number of

uranium

Klaman

•

noticeable

tendant

un¬

derstanding of

fi-

Regulation A field there

been

the

coopera¬

tion

the

become

has

But for t he

out

registration

allowed to

Commission.

exist

Modulated Waves
_

Considerations Determining

placed

who

obsoletes

upon our

burden

ferret

and

fore

Administra¬

inevitably

analysts

over

Securities

can

nancial

cash

Cobleigh

The Trend of

raise
speculative capital
public investors. These fac¬

for

wmmmmmmmmmrntL?

THE GANG's ALL HERE

—Daniel P. Loomis

soundness of the expanding finaneiai system in our country is one

ing

COWAHY

Labor and Congress Must Face
Rails' Competitive Realities

Scribner, Jr._

com¬

amendments

by the SEC.

C. Sargent

the Most Important Issue

Mortgage Banking's Direction Is Now at the
Turning Point

coming into the market seek¬

are
•

Profits Emanating From

—Ira

higher price.

other

unscrupulous practices;
details the tremendous increase in SEC's workload, requiring mors
personnel and higher fees;

"Hot" Issue—James

nor

public, in order to
a

the

Congress' Failure to Act

Sargent

completed,

significant supply off the market to induce

The

heretofore

Cover

against trading

houses
as

mmmmmmmmmmmmm ju«)

1959—Neil H. Jacoby

vs.

[iCHTinSTElia

Articles and News

Commission, Washington, D. C.
SEC spokesman

Continued

page

and

...

Security

You—By Wallace Streete

I Like

Best

...

•.

The State of Trade and Industry
The Tax-Exempt Bond

Washington

and

Market—Donald D. Mackey

Entron*

You

Extrudo Films*

Aurora Plastic*

/Column not available this week.

Pearson

Corporation

—

Published

For many years we

pDCCCDDCn

have

CTflPKC

FINANCIAL
■

■

Reg.

•

WILLIAM

Spencer Trask & Co.
'

•

Founded

1868

Park

V
4

BROAD

New

York

Stock

REctor

WILLIAM

Boston

Newark

Chicago

Schenectady

Patent

COMPANY,
New

2-9570

Reentered
ary

Office

York

Publishers

DANA

second-class

matter

tee

1942,

office

President

Subscriptions
.......

—

Glens Falls
Worcester

and

Other

city news,

otfices:

Chicago 3,

111.

135

bank

clearings,

etc.).
Ssuth

Febru¬
at

New

Canada,

Countries,

Members

per

$68.00

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per

Bank

$45.00

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St.,

per

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the

(Telephone STate 2-0613).

and

year,

per

year.

Record—Monthly,
(Foreign Postage extra).

account

the

fluctuations

of
exchange,
remittances
for
subscriptions
and
advertisements

be made In

New

York

Industries*

Oreclone Concentrating*
*Prospectus

fund*. ,l

1 Exchange

request

Co.

PL, Jersey City 2, N. J.

J, C. HE 2-8570

N. Y.DI 9-3424

Teletype JCY 119
Direct Wires to:

Quotation

.rate

foreigr.
must

Publications

View

Capper

States,

1959

Every Thursday (general news and ad-r
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
state

United

Territories
and
Pan-American Union, $65.00
Dominion

Vice-President

news,

post

Possessions,

Other

corporation

the

Subscription Rates

9576

SEIBERT,

25,

York, N. Y., under the Act of March 8, 1879.

N. Y.

MOItttl^SEY, Editor——

Thursday, October 8,

records,

Nashville

Place,

Company

CHRONICLE

Sea

Other

4, N. Y.

TELEPHONE HAnover 2-4300TELETYPE NY 1-5
Albany

DANA

GEORGE J.

Exchange

ST., NEW tORK

Weekly

CLAUDE

Members

Twice

The COMMERCIAL and

rnLrLllllLU 0 I UlllVj

specialized in

Washington, D. C..

Philadelphia

Salt Lake City

Denver

Albuquerque
San Francisco

Los Angeles

(1476)

growth of institutions as managers
of
the
individual's shareholding
stake. And this institutional see-

Observations...

tor, comprising

Berle
in:

Politi

c a

Economy,

AD O LF

vein,
the

by
A.

But

1930).

crual of power

taken

managers

York Group, InvestmehtiBankers
Association of America, will -be
today, Oct. 8 at the offices

the

to corpora¬
far greater

in the hands of the

who

owned

relatively

munity.
In

the minority

income

where

cases

holds that

its continuance

usually limited to a maximum

single generation.

Significant

Sources of Capital

cites the current
method of raising industrial capi¬
tal as another source of the in¬
author

The

rift

make

change

the

sale

option

approve

the

thus

rates
;

under

gains.

25%-ceiling

the

capital

significance of this
altered procedure and the counter
proposal, here and in other areas,

„

—

hands

jop

thc

Ia<

eluding the Chairmanship of New Thslilutional
York State's Liberal Party), and not the owners of the shares they

from

corporation President (American vote or otherwise protect.
with whom they never con¬
Molasses
Co.) singularly equips
bigness, along with
"Non-Statist Nationalization"
him with wisdom that is .sound
stockholder exploitation had like¬
both academically and by the tests
The result of the various ele¬
wise been vigorously treated by
of the market place.
ments now adds up to a situation
Justice Brandeis
in his "Other
Particularly interesting is the which Mr. Berle calls-"the nonPeople's Money"; by Veblen in
author's estimation of the degree statist nationalization of business."
"Absentee Ownership and Busi¬
and kinds of basic change that have With this status he has no fault
ness Enterprise," in Walter Lippoccurred in the nation's corporate to find. His assent he bases on the
mann's "Drift and Mastery," by
iife in the period intervening be¬ elimination of many of the for¬
Charles Evans Hughes in the Life
tween his first and second volumes
merly existing abuses as well as
Insurance Investigation of 1910, (i.e., from 1932 to 1959).
expulsion of the potential dangers
Over
the
and by Professor W. Z. Ripley's
quarter-century, he by social and securities legislation,
sees
a
widening of the gulf be¬ SEC regulation, higher standards
"Main Street and Wall Street" of
tween
ownership and control, of
accountancy,
and
a
rising
1927
vintage.
But these indict¬
which stems importantly from the standard of ethics. He concludes
ments
were
either limited
as
increase in the shareholding pop¬
that the future of the corporate

bracket

to the insurance area,
to the holding
fered from

len;

and Ripley

companies;

suf¬

muckrakery—by Veb¬

smacked

too

much

literary exercise—by Lippmann.

ulation—from 3 to 12-million.

discharge
Growth of the ownership-con¬ of their true trusteeship obliga¬
trol schism, and the insulation of tions by company and institutional
the

shareholder

from

will depend on the

investment managers.

TO INCENTIVE
The

corporate

from. the

owner-manager

diver¬

gence described
above could be
importantly
alleviated
by pro¬
viding
the
managers'
partici¬
pation in stock ownership. And a
practicable way of effecting such
joint ownership is derived from
using the stock option.
-

Unfortunately,
ference with

this

however, inter¬
corporate tech¬

nique, along with a determination
of tax policy, is now emphasized

Correspondents inprincipal cities
°

throughout the United States and Canada

UNDERWRITERS AND DISTRIBUTORS
OF

Robt. McEntse With

INVESTMENT SECURITIES

by introduction
of a suggested
change in the tax law on options.
This proposal / is being
activized
through H.R. 8Q66, a bi1! intro¬
duced in the House, which pro¬

—

& Co., Inc., 40
York City, dealUnited States Government,
McEntce

Adams,

Wall Street, New
in

municipal

and

state

nounced that

is
in

the

Robert

Dominick

York, American & Toronto Stock Exchanges

municipal

bonds,

"in the

case

income.
hands of
be treated
as

ordinary

individual,

property

NEW YORK

which

the remainder of
Hatcher's t£rm until

serving

an-

addition to the annual elec¬
of

by.laws of the Group,
As

mittee

PATERSON,
Tasch

business

Street

J. —Howard

engaging in
from

offices
the

under

securities

firm

Colt
of

highlight of the meeting,

Legislation- Com¬

name

Howard & Co.

not

questions in regard to

recent changes in the New York
securities law, Mr. McGee said.
announced Athat

also

Executive

resent

The

the

proposed

subject incentive

return tn

generally higher brackets of
on
ordinary income, has

tax

important

implications

both

Committee

would continue to server

Forms Pleasant Sees.
N. J.—Walter Pawlin
conducting a securities business
offices at 392 Broad Street
under the firm name of Pleasant
Securities Company.
Mr. Pawlin

Carl

Carlson,

arcl

Rhoades

from

Neal Fulkerson,

company

„

J. How-

Loeb,

Co., until 1961;

the

Group's

following members of ihe

Jr., Bankers Trust

until 1961; and John F.
.

.-„r

was

Curley, Paine, Webber,. Jackson

& Curtis, until I960.

formerly with R. G. Williams
Co., New York.

Specialists in Canadian Securities as Principal for
Brokers, 'Dealers and Financial Institutions

Grace Canadian Securities,
Members: New Ybrk Security

Dealers Association

New \7ork 4, N; Y.
NY 1-4722
-

Orders Executed at regular commission rates

through and confirmed by

asset."

the

information

provide

will

and answer

Forms Howard & Co.

annual

Oct. -8.

meeting will include the approval
,
the membership of amended

counsel for the

department.

the

Committee,

the

for

agenda

members of

and

officers

Executive

the

capital

change,

Chairman;' Lloyd B.

Co., Inc., as

Hatcher o. ^ bite, Weld^: Co., as
Vice-Chait mmi, and A. Halsey
^
£irs^
y
^an 0i
Treasurer. Proposed Executive
Committee members are: H. Lawfence Bogert., Jr. of Eas:manDilon Union Securities & Co with
"J11S
to e^P11re
2, Allen
DuBois of Werthei^^&^CY>.,

the firm

25 Broadway,

would

14 WALL STREET

Nominating Committee,; includes:
Edward Glassmeyer pf "Blyth &

HAnover 2-0433

that,

election of officers,

year's slate of officers, as
recommended
by
the "Group's
This

G. McEntce

with

associated

now

of stock

vides

such

„

options issued, or granted in w^ole
or
in part, for services rendered,
the
gain
therefrom
shall
be
treated

Dominick

and the annual

Such option shall, in the

Members New

jng, js being held in advance of
the Annual Dinner (Oct 14 at the
Waldorf- Astoria)
in qrder
to
transact necessary Group business

tion

Adams, McEntee &Gs.
ers

The meeting
- ;
-

1960.

NEWARK,

arising

problem

4 p.m.

Mr. McGee said that the meet-

Lloyd

PROPOSED THREAT

sparked by the tremendous

Group.

will start at

of the

man

ration,

company

participation, have, he maintains,
been

man

York, according; to an announcement by Cushman McGee,
0f R. W. Pressprich & Co., Chair-

New

beck ot The. First Boston Corpo¬

ful all around!

—

Brandeis to the.railrbkds, Hughes

of The First National City Trust
Company,
20
Exchange - Place,

%lo

seen,

fer." Corporate

E<Jword classmey<!r Lloyd a Ha,cher

•*

employment in the
men
they have never

•

its

-mm*.

the real

But

preciation realized on stock held
for longer than six months should
be taxed in the case of all holders

tion

„■

perhaps no stock. With provided from internal sources, is m a n i f e s t a t i o n of the longnamely, depreciation, and retained standing
need
to
reduce
the
the rights of the widely scattered
another fifth from existing high brackets levied on
ahd unorganized shareholder own¬ profits, and
short-term borrowing; and an ad¬
ordinary income, now reaching
ers
tending to be thus nullified,
both our cor¬
ditional
fifth
from
long-term 91%. (Even in the welfare state
Wilfred May
the community was enlightened by
porate
life,
bank borrowing. This leaves 20% of
India, the highest bracket is
Berle concerning the effect on the
and the reac¬
of the capital coming from "the
77%, with the capital gains tax,
tion thereto of the top veteran very lives of property owners and
outside."
Although this
sizable as with us, 25%). Whereas the tax
workers alike. Likewise, the book
authority in that area. Back in
"outside" sector of shareholders on
capital
gains
ought
to
be
1932,. the very eve of the advent brought home to the public the
would supposedly be able toyrius- eliminated
entirely (as in;. Engof the New Deal which he helped- tremendous impact on the inves¬
tor considerable voting strength,
land),
because
they
are
nonto
fashion, Mr. Berle, together tor's rights, ethical and legal, and
these "outsiders" holdings are in
recurring
and not ordinary inwith Gardiner C. Means, wrote a the contribution to greater specu¬
large, and growing part, in the come,
the move, is
on
in the
classic, THE MODERN CORPO¬ lation, by the transfer of control
hands of institutional entities./
Congress to transfer many of its
RATION AND PRIVATE PROP¬ from the widely scattered and un¬
Theoretically,^such concentra¬ varieties to the higher brackets
organized owners.
ERTY.
tion
of stock ownership
in the applicable to ordinary income.
That earlier work's highlighting
Now a New Look-See
hands of these professional fullThis is rendered feasible politi¬
of corporate bigness and absentee
time investment managers could
Mr.
Berle's versatility during
cally—in lieu of its reduction or
(or absentee-ed) ownership was
the following quarter century tre¬ go far to relieve the "shareholder
elimination
by the high tax
not the first airing of these trends.
in the levied on those industrials with
mendously heightens the interest impotence." They might
Woodrow Wilson back in 1910 in¬
future
invoke
inroads
on
the
in 4ws present re-look at the sub¬
ordinary income. Under the realiveighed against the spawning cor¬
ject of his earlier classic. His non¬ power now wielded by the busi¬ ties of the situation, the preierenporate system, describing it as "an
But the invest¬ tial 25% ceiling (on "Wall Street
stop
activity as law professor, ness managers.
arrangement by which hundreds
practicing Pine Street (New York) ment trustees seem to be chroni¬ profits") is considered too low
of thousands of men who would
attorney, diplomat (as Assistant cally unwilling to exercise full ratber than too high at the same
in days gone by have set up in
power
and
duties, time as 70, 80, or 91% is being
Secretary of State and later Am¬ shareholder
business for themselves, put their
bassador to Brazil), author, public particularly where there is con- levied
against ordinary income.
money into a single huge accumulittle

place over the
past quarter
century in

fully taxable as ordinary income,
the
profit constituting a charge
on. the
company, as is a
bonusabove salary. But subsequent ap¬

between

widening

higher
."

would

corporate managers and owners.
During
the
decade
1947 - 1956,
three-fifths of the capital require¬
ments of corporate industry were

creased

the

prescribed.

stockholder control does exist, the
author

ment would be treated as ordinary:

until

ment, the return received in any
manner under an option arrange¬

accentu¬

passive
and receptive
shareholding com¬

the

conduct of the

implications of the separation of
the ownership of our corporations
from
their control, with the ac¬

Uniquely it
depicts
the
change that
has

massive

43 % ,of

received

income accruing

tions

the

treat

along

impact was made by their clear
and striking demonstration of the

$3.7 5).

Co.,

came

beneficial ownership

ates'

bigness (estimating ;that
largest nonfinancial cor¬

porations

Jr.,
N. Y.:

Harcourt,
B

two

total

BERL E,
184 pp.,

1932

Means

developments in the corporate
system with both objectivity and
wisdom. In that vein they devoted
"considerable coverage, in a factual

in the financial
world is a vitally important book,
(POWER WITHOUT PROPERTY:
A New Development in American
Arrived

Newly

and

sold; and then only at capital
gain rates.
>':•/
Under
the
proposed
amend-

Then, too," the growth

ing rights.

PEOPLE'S MONEY''

the Annual Meeting of the New

taxed

Effort

Group

To Elect Officers

statute, the option is not
the optioned stock is

present

fund, and the insurance company
—all of them being in possession
of his stock certificates, and vot¬

Berle's First

A NEW LOOK AT "OTHER

the common trust
mutual

New York IBA

Today, if statutory provisions
are
complied
with
under
the

fund, the pension fund, the

MAY

WILFRED

BY A.

corporate

system and on
r

tax

our

finance.

Members: Principal

The

National

Slock Exchanges of Canada

Association

Security

Broadway. New York 4, N.

Dealen

Inc,

^--yolume 190

Number 583ft

The Commercial and Financial Chronicle

(1477)
rf
STEEL

PRODUCTION

EIJECTRIC OUTPUT,

RETAIL

TRADE

The Most Important Issue

PRODUCTION

BUSINESS

COMMODITY PRICE

now

the

midst

one

of the

greatest monetary

since William
out in

Nationwide Bank Clearings 12.0% Above 1958 Week;;

tion is

Bank
with
.

clearings

this

week

will" show

week

last year.

against
tive

Our

preliminary totals stand

$23,588,915,052 for the

Chicago

1959

York

•

1,168,000,000.:'
+

$11,942,030,007
1,271,394,248

1,270,788,435

_____________

Boston
For

1958

$13,874,005,338

-Philadelphia

Our compara¬

From

1,056,000,000

■

Amend to the steel strike

cam

This

national

thousands
•

„

-A

■

*??•'".

idled

many
more
steel mills
are

non-inflationary settlement.

gloomy fact is that supplies for the months

will be shorter than
semblance

some

any

order

now

ationary

are

weeks

telling their customers it will take from three to
before shipments of flat-rolled
products are normal.

But actual estimates

Although mills

from seven to nine weeks.

run

are

weeks after the

strike, it will be many more weeks before ship¬
ments resume pre-strike levels. This interval
depends on products,
with cold-rolled sheet
shipments the most

critical, the magazine

Scribner, Jr.

highest point

history,

/foreaSG^
fl16 ias!
"J0!-

an]?unf

of the Federal deficit for the fiscal.

Annual interest cost of

1959.

the

one-tenth

total

Federal

expenditures.
The national debt
is nearly one-third of all the debt
in

United

the

fixed

large financial

the :price

Congress

acted

public

States,

and

private.

was

promptly

In considering the weight of this

are

the

of-millions

actions

individuals

and V institutions

rather than those of the Treasury
or the Federal Reserve.
-

Today the eurrent pressure for
funds by businesses, state and mu¬
nicipal governments, home build¬
ers, and other borrowers makes
.

apparent,

and

Means

the House

Failure

committee

cti

Treasury, because of the 4*4%
ceiling, cannot sell new bonds of
more
than five years' maturity.
The
Treasury
must,
therefore,
borrow wholly on short-term se¬
curities. This is inflationary; un¬

taken

Congress to

Act

In August the President
by speckd message emphasized the ne-

cessity

enable

the

immediate

Treasury

its

Finally,

action

borrowing

the

last

der

properly

programs.

rush

conditions

consumers

—"jhe—question

The

magazine

also

points out that the ore situation is now
critical.
It has reached the point where some mills
may not be
able to produce at full
capacity in late winter months.
The
new

ore

situation, always serious, has been hit hard by two
factors: The East and Gulf Coast dock strike
cut delivery of

imported

ore

which is counted

Lakes ports, ore
are

shippers fear that

scattered all

the

over

ease

the

seamen

shortage.

At Great

the idled

ore

fleet

country and it will take valuable time

assemble crews.

will

be difficult to control shipments to ease
More likely, they are apt to pick up

needs first.

were

set

before

the strike.

has happened before, will be terrific
an effect on post-strike
shipments.
Furnace

repairs,

slow

startup,

and

But

will

user

ore

and

scrap,

shortage is likely to hamper shipments further.

Post Steel Strike Convalescence Will Be Painful

Oct. 5,

nicipal

painful than the strike itself.'
Continued

page

undersigned acted

refunding.

allow

Neither

than

the

could

with

sold

interest

financial advisor

cannot they be
The answer is obvious

edness

have operated since 1918, and one
not suited to current market con¬

declining interest rates which be¬
gan

in the

ditions

also

lies

also

people who

are

debt

reduction

these

the American

obligated for the

indebtedness.

Federal

reduction
must

When

tax

and

measure

all

Senate bills

contained

authority requested to lift the
present statutory-ceiling on m?.rketables,

for

ceiling under which

nor

to the

Treasury's heed

flexibility in its debt

ment activities.

obligations.

manage¬

Immediately after

Congress acted, Secretary Ander¬
What It Means

does

the

The

mean?

ernment

Federal
nation's

debt

States

United

the

son

management

tremendous

our

issued

the

following

state¬

marketable

new

secu¬

"Time

and

again

have

est

simply

borrowed

the

money.

price paid for
The period of

summer

inventories,

and
for

demand

loans

resulted.

falling
money

repaid,

credit
course

and

best

thing

Today
more

we have quite a different
Before the steel strike
people were at work than

ever

before

for

economy.

higher

wages.

history and at
Incomes are rising.

Continued

the

ANNOUNCE

THE

ELECTION

year

lion

rities.
of

ahead the Treasury
refinancing of $75 bil¬
maturing short-term secu¬
In some ways the volume

this

short-term debt is
a
as

debt.

factor in
the

Each

im¬

of
the

Treasury

THE

BOARD

AND

financing
the total

our

size

time

CHAIRMAN

Roy

Shurtleff

borrows—either for refunding op¬
erations

for

new

cash—it

significant event in the financial
The

markets.
quency

size

and

the

keting of
local

fre¬

THE

EXECUTIVE COMMITTEE

mar¬

corporate, state and
government securities.
new

In order

Co.

CHAIRMAN

of Federal borrowings tend

to interfere with the smooth

Leib

the

picture

F. Eberstadt

George

the year
of

portant

Crane Co.

bil¬

effectively to do its job
handling the public debt—and

effectively

doing

the

job

means

not

only providing the funds to

pay

the Government's bills when*

output.

fell off,

Interest rates of

refinancing maturities,
quite apart from the job of re¬
funding more than $20 billion in
short term bills. America's private

amounted

was

easier

were

30 corporations issued slightly under
$10 billion of new bonds and notes

1957

period of rising unemploy¬

ment, declining incomes, reduced
The

said

that the entire debt management

right

sold now?"

when it is understood that inter¬

declined.

ment:

Gov¬

largest

rities—$19 billion for cash and $50
billion

in connection with the sale of its assets and business to

less

4V4%, why

lion.

Company

years

the

nor

The Chapman Valve Manufacturing

two

rates

nearly tripled in the last 10
During that period it has
far more than the Federal
debt.
The "weight of this indebt¬
grown

faces

advance

would

while new securities is¬
sued by State and municipal gov¬

October 5,19:9

ago

which

intermediate

years.

ernments

The

debt

amendments

been- asked,-—-—
and
long-term

House

last

"Wji

This

governments.

bonds

;

has

billion

reopening of the steel mills imminent, a hard con¬
is ahead, "Steel," the
metalworking weekly, said on

This convalescence will be

mu¬

"If

ceiling rate on savings bonds. It
adopted
certain
technical

also

offered
by
President
single borrower.
In the calendar proposal
year 1958 the Treasury issued $69 Eisenhower in early Junej is the

•

over¬
increase in

the indebtedness of State and

What

shortages

States, don't

tremendous

undoubtedly have

widespread confusion as mills reopen—all dictate a fourth quarter
far below earlier expectations.
Furthermore, a rail ear

With

United

the

pressures, as

output

valescence

the

look

consider

Mills admit
the most critical

schedules that

and

businesses; and it creates
greater debt management

even

before

market

current

costly; it hurts

small

msforthe. future.—
be reprocessed. User
pipelines are also drained and what little
steel remains is out of balance and is of
little use until new ship¬
ments are in full flow.
%

however, that the additional authority requested would be diffi- heavy demands on a relatively
modest volume of savings and has
cult to secure. The matter was
The
debated at great length in the pushed up interest rates.

handle

immediately

money.

markets it responds-to

temporary -celling to $295 .billion.

existing debt at present rates
more
than $8V2 billion—more

than

shooting for full production within three

states.

its

ahead

Fred

States

-i

year

Mills

five

United

months, not-weeks.

Interest

—

the

are

that

expressed

high levels by

borrowed

asked, but raising the permanent
ceiling to $285 billion and the

indebt-

edness

de¬

view

institutions.

the request to increase the debt,
limit
not giving all that was

in, excess

The
.-

incorrectly

The

interest rates somehow
at

actions of the Federal

Reserve authorities.

rates

The

$290 billion.

time in the postwar period. Getting
the flow of shipments will take

in¬

savings

interest rates

•

paid for
In free credit
supply and
marketable Treasury bonds; and
(3) Increases in the temporary demand. This being the case, the
and permanent
public debt limits.. primary determinants of interest

But the

the level

also

(2) Removal of the 4%% inter¬
est rate ceiling on new issues of

debt which is

The magazine comments that the steel
supply crisis has been
many consumers. This is because of their support
of the steel
industry's stand for a

3.26%
on

sound manner."

termined by

'working tneirway bkek to fall productioriv

.soft-pedaledby

the

ceiling

Popular discussion of interest
is often clouded by misunderstanding of their nature in a
free market economy. Frequently
it has been incorrectly stated that

...

pressures, the
record Federal
icwuimcuatu

'"'".'V*

after

even

f 1

rate

bonds;

manage, with¬
out adding to

metalworking j weekly !says .that

workers :will, he

terest

t o

necessary

(1) Removal

addi¬
statu¬

tory authority

:Nob-Industry Layoffs

■

the

which

essential to the best

are

rates

growth.

three-point proposal
Congress. He requested:

granting

tional

not pre vent a eon tinned-spread-. ;!

sented

the -Treas¬

ury

jng of -layoffs thr
oughout;steel-usingiridustries,;+T!he Iron Age''
reports.

assure

the

was

+10.6

summary,.of bank clearings in U: S., refer to
the Statistical Edition of the
"Chronicle," issued .Mondays. For
this week's
summary, refer to page 47 of the Oct. 1 issue.;, V+?

Steel Strike End Would"Not) Curb

*o avoid inflation and

ones

journment

755,289,487 •%+ 6.3

802,998,604

flexible

—

+16.2
—
0.1

detailed

inflation,

Explains the Interest Rate

point of view of the they are due, but also
securing the
Treasury Department, the most money in a
noninflationary and
important piece of business which economical manner
the PresiCongress left unfinished upon ad- dent in June of this year
pre¬

summary for the leading banking centers this week follows:
Week Ended Oct. 3—

•

ant

granted, hand

affairs in

he says, the

$26,419,684,685

week in 1958.

same

our

possible handling of our financial

support of Governments. Once again,
people must become acquainted with the facts about
money and choose between artificially low interest rates, and result¬

Saturday, Oct. 3, clearings for
cities of the United States for which it is
possible to obtain
weekly clearings will be 12.0% above those of the corresponding

enacted to the best of

convinced
*

cannot resort to
open market

ended

week

inal
been

who the American

all

not

will
legisla¬

for those parts of our orig¬
proposal ,-which
have
not

press

against soft

case

Congress to lift the artificial ceiling rate on
Government bonds.'The Under Secretary shows what is
at-stake,,
saver is, where
Congress must act, and why we

.v:.

compared
Preliminary figures complied by the "Chronicle"
telegraphic advices from the chief cities of the country,

year ago.

based upon
indicate that for the

Administration's

money and the failure of

increase

the

are

proposed,
whateyer

"We shall, however, continue to

crises

Jennings Bryan's 1896 compaign, Mr. Scribner points

forceful review of

under

ability.

are

operate

INDEX

recommendations

our

enacted

By Fred C. Scrilmer, Jr.,* finder Secretary of the Treasury,
Treasury Department. Washington, D. C.-

FAILURES

This is still our

"The responsibility for enacting
legislation lies with the Congress.

FOOD PRICE INDEX
AUTO

American people.
firm position.

i-aiiure to act on

ress

CARLO ADINGS

Blyth 6,Co., Inc.

page

The Commercial and Financial Chronicle

Thursday, October 8, 1959

-(1478)

inordinate market

million

$26

The

In the

depression.

a y

Information/ where available, includes name of bor-

n e

of issue, maturity scale, and hour at which
bids will be opened.

rower> amount

County Michigan general ob-

v/ater bonds (1962Yield Index Reflects
1963)
was
purchased by a
Improved Market
group headed as follows; The
For these and other less ob- Northern Trust
Company,
vious reasons, the tax-exempt
First National iBank of Chiligation

The tax-exempt

bond market
buoyant as invest-

continues
ment

(buying of all types per-

Sists

and

broaden,

seems

from 3.58% to 3.51%. This
represents about one point in
erms 0 P in the secondary
'
Activity

priced relatively

when

high, and have been reduced

negligible balances or sold

;

within brief periods.

out

;

improved

municipal erably

market

sentiment

has

T h

sustained

denced bv

notes, as well as

2 billion 5%

other issues. Also

statements in respect to
Federal
cash

ing

_ 0_„

;

ket

bloc of

payments

m a y

were

frightening drain on governgold holdings.
Cmrefit Market oir

::
-

—.

■California (State)

.—

1978-1980
1980-1982
1978-1.980
1978-1979

3.90%
3.55%
3.60%

3%%

1974-1975

3%%
ZVz%

Gtd.:.

(State)

Pennsylvania (State)
Vermont (State)

Itid

3V2%
3%%
3%
3%

Highway Auth.,

New Jersey

Maturity

1978-1979
1977-1980
1978-1980
1980
1980

""""Kate

Connecticut (State)
New York

—

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

New Housing

Angeles, Calif.-Baltimore, Md.
Cincinnati, Ohio
New Orleans, La
:

3%%
3 *4%
ZVz%
3%%
31/4%
3%%

Los

Chicago, 111.

—.—
—-

—

Boston, Mass.

3.75%
3.45%(
3.45%

;

„

Beverly Hllls' Callf—

Norwalk>

Conn

2 665 00a

1960.1979

Noon.;

5,000,000

1961-1979

11:00 a.m.

4,375,000

________

1960-1988

1960-1984 b 11:00 a.m.

____

1979
1977
1977

RGbstown Ind. Sch. Dist., Texas___
Steelton Borough Authority, Pa.._

(as

Issue—

Co., Wash. PUD
7-1-2013
Chlcago-O'Hare Airport

Price

whole)

/.,

100

107

1-1-1974

104%

;

104%

(*)

4.52%

7-1-1962

103t/2

(*)

103l/2

-1/2

2,930,000 1960-1989 3:00 p.m.
18,000,000 1960-1974 Noon

Toll

1-1-1965

Indiana Toll

103%

1-1-1978

104%:

Mackinac
Maine

4.53%

10U/2

' +1/2

4.17%

.103

741%

4.93%
3.96%
■' ■

important

-li/4

4.50%

104

5-1-1962

*
103l/2

Pow°r

3.10%

(*)

100%

1031/2

1-1-1963

4.38%
1
4.71%

1-1-1970

a.!:10*,
3.45%

Tri-Oam

103

103i/2

6-1-1959

103

3.05%
3%
4

6-1-1959

3 86%

+l/2

3.97%

^ %

^ 72

103

83-

(*)

8H/2

104

7-1-1959

81%

4.02%
'

iirc With
ISgyrS TV IIll

general

9-1-1959

105

85i/2

+y2
.

1:00 p.m.

1960-1979

9:00 a.m.

„

Effective

™87°

department
the

firm's

660

Madison

will

;

City.

3,000,000

D-Calif.____'

new

1961-1983

1,300,000
2,500,000-

Pennsylvania General State Auth.
st.

Louis

County,

midtown

office,

Avenue,

New

1962-1986

1961-1979

2,100,000

Noon
-

(Thursday)

3,300,000 1960-19828:00 p.m.

District, N. J
XT

25,000,000

Mo.___
October 29

/rri

November 3 (Tuesday)

Cerritos Junior College Dist., Cal.

1960-1979

1,000,000

9:00 a.m.

/u/r

November 9 (Monday)

this

26,

9:00a.m.

;

October 28 (Wednesday)

...

located

21,150,000
/

15 Broad

October

October 27 (Tuesday)

of the nafunds sales depart-

ment.

4 48%

3.74%

1960-1989

1960-1984

manager

mutual

2:00 p.m.

4,255,000

1,000,000

Eastman Dillon Co.

3,064,000

1; //'•/
r

...

2,000,000

Enfield, Conn.__
'

■

9-1-1994

ll:00a,ra.

Hampton, Virginia

Storm art! Vio

1161320111

3.92%

Noon

1960-1988

Counties/

Calif.

District,

Street, New York City, members
Of the New York Stock Exchange,

+UA

86%

..
^

Union Securities & Co.,

Revenue

<•) Unchanged.

Oakland

mi-lto-l

2,100,000

Bear Creek Drainage, Dist., Mich.

£esSded\i7hgSStman Dil°I^ Camden

•

103i/2

7-1-1963

7-1-2004

Macomb and

416%

+1
,

2,700,000

Lake Worth, Fla

from

•

tional

Project, Calif.

Virginia Toll

October 22 (Thursday)

Dayt0R> Ohio

3 <>6%

85V2
■

Turnpike

1:00 p.m.

3.71%

10OV2

7-1-1960

7-1-1995

1961-1980

(*)

Pennsylvania Turnpike Authority

Richmond-Petersburg

1,650,000

1:00p.m.

...

Building Commission, Ky

851/,

Authority

6-1-1992

94
~

103

Thruway Authority

7-1-1994

nn.-

1960-1989

Hamilton, Ohio'

Ohio Turnpike Authority

3%%

5.13%

4-ll/4

80%

104

7^1-1958

1-1-2006

10:00 a.m.

3,080,000

bank

nationwide

•

(*)

'
-

1-1-1995

This

groups.

Noon

1979

»*'»«-')

Glendale Unified S.

10-1-1969

■IS? JT1988*-;u'V/
New York Power Authority
4.20%

higniy

attract at least two bids

5-1-1994

1:30 p.m.

1962-1981

20,000,000

Los Angeles County Flood Control

911%

Turnpike Authority

New York

this

obligation bonds. This
popular investment issue will

89l/2

■

1,490,000

;

___________

offering will attract much in- Oakland, Calif.
vestor interest.
The week's piaquemine, La.

1-1-1958

Port Authority
4%% 10-1-1998
New Jersey Turnpike Authority

York

same

108

1-1-1989

3.20%

i.ii

+u-

tor

long-term issue. On the
day the State of New

104

7-1-1960
.

Massachusetts

New

+l/2

103

Turnpike Authority

3.30%

received

1-1-1964

,7-1-1994
Bridge Authority

Massachusetts

•-

103

3:00 p.m.

1961-1979
|

only other important large
offering is $18 million City of
New
York
(1960-1974) gen-

-5.57%

-l/2-

J
~

eral

1-1-1994

5.73%-

-i/2

70
-

Highway

3%.% 1-1-1994
:
1-1-1962
Jacksonville, Fla. Exp.
41A% 7-1-1992 ...............
7-1-1967
Kansas Turnpike Authority
3%% 10-1-1994
v 10-1-1962
Kentucky Turnpike Authority
3.40%

+1/2— -4.19%

931/2

103

Highway

1-1-1998

4%%

(Friday)

District No. 14, N. Y
.
,
.
.
'
.
,
Kentucky State Property and

relatively scarce bond and the

Highway

1-1-1995

3%%
Illinois

:ii

U-J

Several bids will

flOC1 10OQ? feneJ
(1961-1988) bonds.

3.92%

5-1-1966

8:00 p.m.

T-__._2,000,000 1960-1979' Noofi

Montreal> Quebec

wil1 °«er i°r saie

4.30%

4-1-1962

Authority
4-1-1995
Grant Co., Wash. PUD No. 2
37/8% 11-1-2005
31/4%

No.

Collier County, Fla.

time

-,nr»o\

4.65%

Florida Turnpike

Illinois Toll

'•

Reg. Port
7-1-1995

1961-1999

<>Ct"ber 19 (Monday)

Calendar

m^tlanta,Z5gorgj,a

On Tuesday (10-13-59)

rated

from Prev. Week Maturity

Price

________

1,030,000

5 .

- -

this

11:00 a.m.

___

Snohomish County, Wash.______ % 1,600,000

"f*

10:00 a.m. -

1,000,000

October 16

Financing

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

RffZiSte'B 53S '

1-1-1978

1-1-1999

4%%
Chicago

No. 1

October 15 (Thursday)

the

cost

for

volume

Yield to

Net Changes

Offering

Call

First Callable Date

Chelan

•

Del.

Everett School District

(1970-1998).

approximate)

(Prices and yields are

8:00 p.m.

3.60% compete
On
3.40%
October 21 (Wednesday)
3.70% (10-14-59) the City and County
3.75% of Denver, Colorado, will
3.75% seek bids for $17,000,000 gen- California (State of)
7,500,000 1964-1983
eral obligation water bonds
tvt^v Sch°o1
ft
.0ftn
QQO

3.70%
3.55%
3.80%
3.90%
3.85%

7:30 p.m.
p.m.
7:30

795'000 1960-1974
1984

905,000

District, Fla.

Wilmington,

-i.on

107/1

Boardmau Local S. Dv Ohio______
1,890,000 1960-1979 2:00 p.m.
Hamilton Common S. D., Mich.__ 1,250,000 1960-1988 8:00 p.m.
Honolulu, Hawaii ---■—--—
3,400,000 1962-1979 3.00 p.m.
Wednesday Local Housing Authorities..
102,145,000 1960-1999 Noon

RELATED INFORMATION

DOLLAR BOND QUOTES AND

interest

€1

Moderate

year

~v-;-

8:00 p.m.

Mich. i 2,000,000

School Dist

Jefferson Cons

Authority.

,1ftrjn

-■

^0^00010^0

—-

Beverly Hills> Caiif._

3.50% 3.40%
3.35% 3.25%
3.25% 3,125% during the years," will market
3.40% 3.25% $4,375,000 of general obliga-:
bonds. Many groups will
4.00% 3.85%

1959 —Index=3.51%

October 7,

- • *

group

Tho
New
Issue
———
continues relativaly
Asked

Represeiitative 'Serial Issues

—--

„

7:00P-™-

October 13 (Tuesday)

publicly

are proved

transactions

loss

Tax

becoming a prominent market factor as the year-end
nears, and the lower coupon

brought about to reduce the
ment

10_0

3,700,000 1960-1987

Garden City School Dlst„ Mich...

bonds. The of- rejection by the Port. The Chili Water Dist., New York____
very well taken. negotiation resulted in an im-* ^ew York City, N. Y.

interna- fering was

balance

tional

in„n

budget and by reports that a of California
closer

^nn

5'350'000 1960"1978

October 12 (Monday)
'

secondary mar- bidding for this issue the week
million State previous had resulted with a

Qfferecj -m

balanced

'
^

at 99 and
sell-out. Competitive

offered

^ Boston Corporation and
others headed a group which

by reassur-

obligations., e v irush To buy the

Treasury

_....

1:30p.m.
,r

headed/by
■
Company,
October 14 (Wednesday)
measured by The Blue List,
Drexel
&
Company,
Glore, champaign Co. Community
Forgan & Company and LadUnit S. D. No. 4, 111
1,585,000 1960-1978
$]7million
despite a few enburg, Thalmann & Com- Denver, Colo,
17,000,000 1970-1998
iarge sized issues floated dur- pany. It was negotiated at an Natchitoches Parish Water Works
ing September. On Monday, interest cost to the " Port of7 district
the Bankers Trust Company, about 4 37% The bonds were New Hampshire (State of)_______ -15,991,000 1960-1988

for

market

improved

1'153'0Q0 1961"1978
(Friday)

/0'"-'Volusia County Spec. Tax School
iW

Stuart

Halsey,

bu, by

able technical aapecta

The Street Float as 1989, to

been-weeks.

only by favor-

not

™

North Llttle Rock' Ark-

poration group and reports it
about
half
soid.
Late
last

'..C

—-—-—

October 9

broadened consid. Authority sold a $25 million
during the past few issue of ,$414% bonds, due

market

-—.

New Haven- Gonn

to the First rsoston y.or
to tne v irst Boston Cor-

1979)
iy ry)

October 8 (Thursdav)
—

Purchasing has
apparently market, which had undoubt- cago, and Goldman, Sachs &
surpassed the volume of re- edly swing too low, as trends
Company. This issue seemed
cent new issues.
New issue always do, has rallied to the
well taken by investors, with
financings have; been moder- extent that the Commercial
rponrtpfl
ho |onpp
(1 n.V.RQ)
ate in numbers and in vol- a n d
Financial
Chronicle's of abdht
$9 million
Pittsume.
These issues generally High Grade Serial Bond Inburgh, Pensylvania, sold an
Have been very well received, dex s h owe d improvement issue of $4.1 million (1960even

$1,000,000 or more for which specific sale dates have been set.

Marketings

Recent

MACKEY

DONALD

z^jteagia : larger issues scheduledthe bondsale of
for issues
following tabulations
list

Bond Market

The Tax-Exempt

-—

—

December 1 (Tuesday)

York

Columbus, Ohio

10,010,000

1962-1986

Noon

Volume 190

Number 5888

The Commercial and, Financial

Chronicle

(1479)

Zenith

Sound Profits Emanating
From Modulated Waves

much

Motorola

exciting

progress

and

reference

ments for

rently

certain

when

was

put

being
to

sound

had

you

radio

and

you

were

treated

and complete¬

acceptable

audio

enter¬

tainment.
were

happy

and

content

•with

the

perfec¬
tionists amohg
Ira

Cobleigh

sophisticated

musical

To them these sounds

from

home

sputterings and buzzings of radios,
seemed primitive.

through

sensitive,
projection.

out

tone

stereophonic

orchestral

section

products is achieved with¬
some

engineered

and

elegantly

for

Motorola attractive for FM as well
as
Fine Market performance.

Stromberg-Carlson is turning out
exquisite radio-phonographs

some

consoles

that

Magnavox
common
stock
is
on
NYSE, sells at 60, pays
$1.50 cash dividend with 5%

in stock extra paid April 15, 1959.
Six
stock
dividends
have
been

brass,
strings, percussion, etc.—but from
the right direction.
Stereophonic
—

paid since 1946.

garded

Stereo

are

masterpieces

Magnavox is

quality

million

are

electronic

Leib & Shurtleff
Named

The
&

by Blyth & Co.

board

Co.,

Equal progress

was

attained in

sonic

and

engineering,
product • pricing,
continues,1 in
1960,
its
leadership in popular priced FM
and

attractive

Granco

instruments.
An energetic adver¬
tising program has been launched

living

com¬

maximize

reception,
fidelity of sound,

and

lists at $4,800.
To

the

Stromberg-Carlson

profits

you must be

which is

equally impressive. For
year
ended June 30,
1959 sales were $3,070,486 up 38%
over
last year.
Net was 15c a
share
on
the
335,948
common
shares outstanding.
These trade
the

fiscal

General

over-the-counter

This

and paid a 5%

Dynamics
stockholder.
diversified equity sells on

NYSE

and

pays

dividend.
VA

yet

leading

FM radio

than these,

manufacturer

sets, is Granco Products,

Operating

the conviction

interesting speculative

sibilities
the

around

particularly

company's

rate and
in FM

stock dividend this
Granco common af¬

This

year.

fords

smaller company

the

Roy

pos¬

view

growth

unusual

its aggressive leadership

Sales

technology and sales.

These

Committee.

tive

trative

changes

Blyth

are

founders

banking

the

Frequency
realistic, driftfree and interference-proof recep¬
tion

introduced

was

years

Hawes,

units

equipped

fully

special
the

•

for

stereo

Zenith

sets

bass sounds

from

between.

for
(If

the

uct

The

has

company

San

Francisco.

areas

want

you

hear

There
radio

can

doubt

all

are

about

in the

direction of FM and stereo broad¬

year.

Zenith

reputation

NEW

maintain active

■

The

for

and

FM,

stereo

also

tion

has

and hi-fi radio
line, excels in
in ,sleek styling.

Frequency

Modula¬

station

WEFM in

of its own,
Station
Chicago. In addition to

receivers, substantial earnings are
derived
from
hearing aids, TV
sales,

A Federal Licensee Under the Small Business Investment Act of 1958

stems

broad

engineering and
It

TENNESSEE INVESTORS, INC.

en¬

COMMON STOCK

dramatic

tubes;

Zenith

and

($10. Par Value)

Price
■:

'■ ■'■I.

•

$12.50 Per Share

*■'

Tennessee

Investors, Inc., chartered in Tennessee with an authorized capital of $10,000,000 of
Common Stock, is a small business investment company authorized to provide equity capital,
long-term loans and advisory services to small business concerns.
r
in the

for

are

banks under the supervision of the Tennessee

banks

and

opinion of counsel these securities

eligible for purchase by national hanks and by
State Banking Department, and are eligible
purchase by Other member banks of the Federal Reserve System and non-member insured

state

the

surplus.

extent

permitted under applicable state law

to 1% of
".'••••

any

such bank's capital

has

pioneered in pay-as-you-see tele¬
vision

through

system.

its

Phonevision

Both Zenith products and

Copies of the Prospectus may be obtained from any of the undersigned
brokers only in states in ivhich such dealers or brokers are qualified to act
Prospectus

may

or
us

other dealers or
dealers in securi¬

be legally distributed.

trading markets in:

Miami, Florida

Established

1919

INCORPORATED

Direct

NEW YORK

Greenville
Wire

Co., Inc.

Fisher Hawes &

All

CHICAGO

Raleigh
Offices

Co., Inc.

Keystone Securities Corp.

King Merritt & Co., Inc.
Mitchell, Hutchins & Co.

Member Midwest Stock Exchange

Columbia

Securities, Inc.

Company, Inc.

W. N. Estes &

Request

Richmond
,

Jack M. Bass & Co.

Berry, Douglas & Fitzhugh, Inc.
Davidson &

R. S. Dickson & Company
CHARLOTTE

Lucien L. Bailey & Co.

Commercial

Rights and Common Stock

Survey Available

Atlanta

1959

advanced

First National Bank of Miami
Stock

500,000 Shares

ties and in ivhich the
We

any

October 7,

ISSUE

engineering, fine prod¬

acceptance

Zenith has

above

trends—they

1958 followed by

paid regular dividends since 1936.

"tweeter" range,
you should be a dog or a bird!)
And, of course, the foregoing are
.all
calculated
to
promote
high
fidelity of sound reproductions.
anything

offer to sell nor a solicitation of an offer to buy
offer is made only by the Prospectus.

com¬

rise
in earnings per share
(ad¬
justed for split) from $2.76 in 1957
to $4.10 in 1958 and an expected
$6 a share this year.
Zenith has

(down to 20

tonal

Corporation

this

for

electronic

cycles),
"tweeters"
for
high
pitched
sounds
(up
to
18,000
cycles, usually) and middle range
speakers

split

thusiasm

speakers—"woofers"—for

low

Radio

2-for-l split in
3-for-l

accurate

with

is neither

James N. Reddoch & Co.
Alfred D. Sharp

& Co.

;

Herman Bensdorf & Co.

Clark, Landstreet & Kirkpatrick, Inc.

Cumberland Securities Corp.

Bradley Currey & Co.

Elder & Co.
L. H.

Equitable Securities Corp.

Ghormley & Co.

^Investment Corp. of Fidelity

Fred A. Hahn Co.
'

Investment Securities Corp.

Leftwich and Ross

Mid-South Securities Co.

McDowell & Company

Webster, Gibson & Hale

Morrison & Co.
M. A. Saunders &

Southern Securities

New

offices

throughout the country. Its main
offices are at 14 Wall Street, New
York and in the Russ Building,

these securities. The

mon has been an
exciting market
performer having run up to a high
of 136% in 1959, and this after a

now

And
of
course,
receiving
and phonographs now come

translation

announcement

was

York, will continue as President.

Co.

ago.

broadcasting FM
and 15 million FM receiving sets
currently in use. To this improved
FM broadcasting has been added
stereophonic
sound,
using
two
sending microphones instead of
one.

This

handling systems developed in
conjunction with Eastman Kodak

Recently FM has expanded enor¬
mously with about 620 commer¬
cial stations

contracts,
and
long
profits expected from data-

range

with

investment

which

Francisco

San

Stewart

1914.

two of the orig¬

organization

established

adminis¬

taken

Mr. Leib and

Aug. 25.

Mr. Shurtleff

inal

were

death of Charles R-

result of the

with

equity

Shurtleft

refinement

Inc.
re¬

room

replete with the ultimate in
ponents

George C. Leib

radio."

tional'

Center, finished to
and Roy L. Shurtleff, San Fran¬
with, your own
Investors will be interested in
or salon,
This model, the. financial progress jat. Granco.: cisco, as Chairman of the Execu¬

blend

electronic

transmission.

Modulation

Blytli

has announced the
of ..George
Leib, New
Chairman of the Board

Inc.

election

York,

directors

orehestra-seat-atCarnegieHaHv
radio

antici¬

—

Music

match,

the

listed

brings to our ears
not only the authentic sounds from

each

radio, phonograph

cabineted.

which

sound

originally

above

sets, Granco pated for fiscal 1960.
Here, then, are some attractive
and quite diverse equities for con¬
some' notable
FM
"firsts"
a
sideration by those investors who
Tuner adapter at $19.95, the first
regard FM and stereo as dynamic
FM clock
radic, and the first AM- areas for
growth in
corporate
FM clock radio below
$50. There earning
power.
Entertainment
is also an elite line of self-con¬
electronic stocks, such as these,
tained stereophonic high fidelity have a
history of animated mar¬
consoles starting at $335. The FM ket performance.
j.
tuner miraculously adapts, in an
instant,
any
television,
phono¬
graph, tape recorder or Hi-Fi sys¬
tem for FM higlf fidelity
recep¬

Company

wholesalers,

finely

subtle

Finally

vouchsafed

Famous

for FM

has just launched its
exciting new
models for 1960.
These include

high

and directly
2,000 dealers under
a strict price-maintenance
policy.
Magnavox
FM
instruments
are

the speak¬

tribution of its

And then the

ers—more

year.

car

in the cabinet makers' art. There's

integrated, producing
cabin.ets,_ and its own
speakers, tuners and chassis. Dis¬

plastic disc, but
improved the accuracy of the
on

companies.

its

livered from each

home

portable units. Magnavox

and TV

were

highly

Long playing records were devel¬
oped, which not only provided
many more minutes of music de¬

experts got to work

these

Magnavox

60%

So something was done about it.

sound transmission.

earnings,
with
per
moving from $3.80 inpast $7.00 expected for

that the big future in radio is the
mass market

a
contemporary model in mahog¬ stressing the Full Melody advan¬
has
tages of .FM, and implementing
quality tele¬ any, walnut or limed oak, with
the opinion of Mr. Henry Fogel,
vision receivers, radios and high- AM-FM Stereo Tuner and Stereo
Granco President who says: "AM
fidelity phonographs.
Its radio Amplifier starting at $599.95; and
series of other fine pieces of —amplitude modulation radio—is
line products have stressed qual¬ a
almost a thing of the past—-before
ity and the more expensive con¬ musical furniture running up to a
French
Provincial Breakfront many years FM will be 'conven¬
sole units rather than the smaller

the phonograph, and the incidental

.■

all

The

gifted

ears.

producer

specialized

talented

with

well known but actually the

about

were

musicians, and

the basis of

$1.50, it is
its highest

radios MOT (NYSE
trading
symbol) is dominant in these and

radios in 1958, is Granco Products,
Inc.
We'll have something to say

-20's. But there

those

its

largest

Roaring

us,

paying

are

Less

type

reception

1959

net

1958,
this

accurate and descrip¬

(a division of General Dynamics).

this

standard

share
k

waves.

tions

exciting

105

rather

from

high of 130. Cur¬

castings.

(78 RPM) on
listen to a super¬

posted
rise

———

About 60% of radio sta¬ as well is a major manufacturer
now
home
and
stereocasting and of
portable
radio,
another 20% have plans to do so. phonograph,
The full.; stereo radio can
and TV sets, two- tion.
Accordingly, we propose
forth¬ way'mobile radio systems and deliver one program directly, and
with to touch upon some of those microwave
radio relay systems. another' program into a speaker
companies
whose
production is Motorola has specialized in port¬ wired 30 to 40 feet away in an¬
importantly beamed on FM and able radios and phonographs.
room.
It
contains
Its other
input
stereo high fidelity - instruments. •I960 line includes stereo hi-fi
sets, "jacks" for phonograph or tape
Among the larger companies, in and popularly
priced
AM - FM recorder • reception
through
its
this field are Magnavox, Zenith, stereo radios.
Popular products dual speaker system. In brilliant
Motorola and Stromberg-Carlson and
smart
merchandising make and functional styling, advanced

record

phonograph,

heterodyne

all

some

companies majoring in the electronic instru¬
tive

selling

with

stereophonies,

receiving and amplifying these

Time

has
to

them.

peacetime

the

(around 95) have

low of 57 y2

By Dr. Ira U. Cobleigh, Enterprise Economist

Tuning in

common

to recommend

Co., Inc.'
Millard & Co.

Rader, Wilder & Co.

Hugh Scott & Co.
Wiley Bros., Inc.

The Commercial unci

(1480)

Financial^QhroJlicle

Thursday, October,8, 1959^--

the

dieselization

stemmed

from

program.

Dealer-Broker

Union Pacific
major roads

the

Investment Recommendations

and Literature

TO SEND INTERESTED PARTIES THE FOLLOWING

able

—

Monthly Investment Letter

current Foreign

—

Letter.

Convertibles—A selection—A.

Kidder

7"T

Street/New York 5, N.• Y-.

1 Wall

Co., Inc.,

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment,

Japan

Expenditures

1959

for

and

brief

analyses

Mills Co., Iwaki
Cement Co. and a survey of the Steel Industry.
Japanese Stocks—Current Information — Yamaiehi Securities
Company of New York, Inc., Ill Broadway, New York 7,
Mitsubishi Heavy Industries, Nippon Flour

York.

New

N-A-XTRA

STEELS—Details

illustrated

technical

extra

high strength steels—

brochure—Great Lakes

Steel

Cor¬

poration, Dept. NSF-5, Detroit 29, Mich.
Natural Gas Distributors—Analysis with particular reference
to American Natural Gas, Brooklyn Union Gas, Equitable
Gas, Oklahoma Natural Gas, Peoples Gas Light & Coke and
Washington Gas Light—Thomson & McKinnon, 2 Broadway,
New York 4, N. Y."
Also available is a report on Electric
Utilities.

Scott & Co., 120 Broad¬
Also in the same circulan aj'£jflaia

Stocks—Analysis—Montgomery,

Oil

New York 5, N. Y.

way,

Aluminium Ltd. aiin CleXite Cbfp.

Ovcr-thc-Countcr Index—Folder showing an

up-to-date com¬

parison between the listed industrial stocks used in the DowJones Averages and the 85 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

have

Co., Ltd., 25 Adelaide St., W., Toronto, Canada.
ty.

Wis.

Chemical

Memorandum

—

Merrill

Lynch, Pierce, Fenner & Smith Incorporated, 70 Pine Street,
New York 5, N. Y.
Also available are memoranda on Fiberboard Paper Products, General Public Service Corp., North
American Aviation, United Fruit and U. S. Tobacco.

American

Investors

Corporation—Report—Searight,

Ahalt

O'Connor, Inc., 115 Broadway, New York 6, N. Y. Also avail¬
able is a report on United American Life Insurance Co.
American Investors Corporation — Report — DeWitt Conklin

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

Tor

Also avail-

Yacht Co., Inc.

Tool Research &

Lease Plan International

Cubic

Corporation

Long Mile Rubber

Hugh W. Long & Co., Inc.

Gas

Company

—

Analysis

—

Space Components

Leeds Travelwear, Inc.,

WaddeJI & Reed

•,

Sold

interest

for 1959
share reported

income

net

the $3.29

1958.

Co.

Calif.

Co., 640 South Spring Ittrget, Los Angeles 14.
Standard

Life

Insurance

Company—Study—Robert

€orr-2-14-~W^str--Se-vGnth..lStreet, Los Angeles 14,

IN INVESTMENT FIELD-

Oct.

N. Y. Also available

analyses of Ranco Incorporated and Firth
and

pany

(Philadelphia,

1959

Pa.)
Consumers Bankers Association

Corporation—Analysis—Shaskan

States

39th

Company,

Co.,

Group of Investment
Bankers Association annual fall
Ohio

meeting.
—

Turner-Poindexter & Co., 634

Street, New York 5, N. Y. Also available is a memorandum
on Utah Construction & Mining Co.

Chemical—Memorandum—Goodbody &

6, N. Y.

Co., 2

Oct.

Company

—

:<V'v

•

Analysis—Reynolds &

Co., 120 Broadway, New York 5, N. Y. Also available are
analyses of R. H. Macy & Co., Inc., Electric Storage Battery,
Oil Industry and a list of interesting Convertible Bonds.

(Miami Beach,

1959

25-28,
Fla.)

Bankers

American
-

Association

Annual Convention.
Oct. 30-31, 1959

(St. Louis, Mo.)
Invest¬
annual convention

Association of

National

Clubs

ment

Haupt & Co., Ill Broadway, New

Western Union Telegraph

(Cincinnati, Ohio)

Oct. 22, 1959

Street, Los Angeles 14, Calif. Also available is
an analysis of Interstate Bakeries Corp.
Texas Utilities Co.—Memorandum—J. A. Hogle & Co., 40 Wall

Hotel.

South Spring

Borax

Super¬

Banks annual
The
Diplomat

State

convention

York 5, N. Y.
Riley Stoker Corp.—Review—-Alkow & Co., Inc., 40 Exchange
Place, New York 5, N. Y.
—- Analysis

Association of

National

visors

Company—Analysis—Schweiekart

Tappan Company

the

tlie-Sea, Fla.)

Lauglilin—Memorandum—Hill, Darlington & Co., 40

63 Wall Street, New

(Hollywood-by-

1959

20-23,

Oct.

Street, New York 5, N. Y.
Hayes

convention

annual

Warwick Hotels

Broadway, New York 6, N. Y.
Pan American World Airways—Review—John H. Lewis & Co.,

14-17,

Oct.

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

Kelsey

Wal-

Astoria.

dorf

Exchange Place, New York 5, N. Y.
First National Bank of Miami—Survey—R. S. Dickson & Co.,

Wall

Investment
America^

Carpet Com¬

Jones

Group

39th annual dinner at the

Fireman

Iron

York

New

"Investment Letter" with data on
Manufacturing, and Detroit

monthly

the

Gypsum,

(New York City)

14, 1959

Bankers Association of

Company—Analysis—Hayden, Stone

Co., 25 Broad Street, New York 4,

are

•

Madison Avenue, New York 22, N. Y.

Hotel.

at the Sheraton Jefferson
Nov.

(Boca Raton, Fla.)

1-5, 1959

National Security Traders Asso¬
ciation
the
Nov.

Convention

Annual

(Minneapolis,

18, 1959

„

Twin City

Investment Women's
meeting at the

Club dinner and

Banks, Brokers and Dealers

Can Can Room,

^ALES

STEEL OF

ADR

Sold

Bought

Quoted

Nov. 29-Dec.

Hotel Dvckman.

4, 1959 (Bal Harbour,

Fla.)
Investment Bankers

Association
at
the

Convention

Annual

Americana Hotel.

Prospectus

Trustor.

oil

request

Singer & Co.

Hired Liaudcn Brocek & Co.
New

Yrfik Stock Exchange

American Stock Exchange
A

Trinity Place. New York 6, N. Y.

H An over 2-2100

Teletype: NY 1-376; 377: 378

Tel.:

LIBERTY

STREET,

BE 3-8880

Private Wire

•

Texas

NEW

,25th

Group
annual

Investment
America
at the

Sheraton

YORK

Teletype NY 1-4686

System to Canada

meeting

Dallas.

April 8. 1960

(New York City)

New/York Security Dealers As¬

sociation 34th annual dinner in
the

Grand

Ballroom

Hotel Biltmore.

—

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

MEMBERS:

Members New } ork Security Dealers Association

Boca Raton Club.

Minn.)

For

Bought

upon

William R.

Florida Palm-Aire

Branson Instruments

re-.

e r

depend

bring

and Temco Air¬

Heublem, Inc.

Exec u to ne

Data—Oppenheimer, Neu &

—

Broadway, New York 6, N. Y.

Eng.

will

sion

Corporation

Western Union—Report—Ira

Paddington Corporation

income

net

c a r r

Illinois Central common, on

e/• /j;
/
Corporation—Analysis—Purcell & Co., 50 Broad¬
way, New York 4, N. Y".
Castle & Cooke, Inc. — Analysis —► H. B. ShaiiTe^&r'Co., Inc.,
McKay Tower, Grand-4tapMs2T JMirt
Crane Carrier Industries—Report—A. J. Gabriel Co., Inc/ 625

York
ens

compared
with
the like 1958 date.

However, it is believed any deci¬

716,440 shares of

Calif.

-Net

generates
further
cash
from depreciation
which amounts to approximately

Borg Warner

financial institutions only-

sponsored

and the

Dr. H. J.

Labor Govern-

claim

could

once

ago most peo¬

of the

reasons

stand

factors. To follow,

course

before

dishonor

his long and intimate knowledge

why, though the

the
exercise
of
our
Britain.
A
judgment should be. uncluttered, few
weeks
by outside influences and irrele-.
•

LONDON -England — In order to
be able to write about the eco¬

sight

for the best
performance. I realize,

Market, sterling

price level in the event of

inflationary year—incomparably higher, in particular, if labor wins.

to* canny
best

strive

party's victory. Capitalizing

the

and

own

efforts

the London Stock

consequences

balance of payments, employment and the

committees whose
busy
schedules may prevent them from

■

are

have

.fairly advanced degree of

departments

up to p®si->;;
responsibility

ultimate
to

even

Wage

By Paul Einxig

progressing

tions
,

inflation
ment

the other hand, may

the

these; temptations "-

times.

many

for

trust

Ellis, Holyoke & Company

Goodbody & Co.

Newhard, Cook & Co.
J. Barth & Co.

Irving Lundhorg & Co.

J. Cliff Rahel & Co.

Bateman, Eichler & Co.

McCormick & Co.

William R. Staats & Co.

Brush, Slocumb & Co. Inc.

Caldwell Phillips Co.

Courts & Co.

Crowell, Weedon & (lo.

Davis, Skaggs & Co.

Fahnestock &,Co.

Robert Garrett & Sons

Halle & Stieglitz

T. C. Henderson & Co.* Inc.

Mitchuni, Jones & Teinpleton
Quail & Co., Inc.

Shunian, Agnew & Co.
Harold E. Wood & Company
October 7, 195Q.

The Ohio Company
The

J. J. B. Hilliard & Son

Pacific Northwest Company

Robinson-JIumphrey Company, Inc.

Smith, Polian & Co.

Sutro & Co.

Woodard-Elwood & Cofnpany

The Commercial and Financial Chronicle

(1486)

resolution

New Foreign

Aid Project

^hich

States has

introduced

his

Governor of

economic official urges consummation of

loans

easier

their

crease

"With few

exceptions, the industri¬

countries

alized

cessful in

stability.

infla¬

serious

have

tries

courageously
the

broad

meas¬

popularly

in which
they were
aided by sub-

•

the

Fund and

member

individual

coun¬

tries, including the United States.
has
very

been

the

factor

of these stabilization pro¬

degree to which
economic
development

the

grams

domestic
efforts

that

observation

our

significant

success

soundly conceived and
efficiently administered. Here is
an

are

in which the World Bank

area

should

and

can

play

increas¬

ingly active and useful role. Act

cordingly,

welcome

would

action both bv the Bank and bor-

countries

rowing

services

Bank's

the

that;

would

widely utilized than heretofore in
this respect.
«
"IDA"—The

President

States

our

lished,

have
of

desire

see

estab¬

International Development As¬
sociation. As all of you know, the

local

the

items

ment

projects which are to be
imported from a country whose
local
currency
is involved. The
total

rencies

there

would

structure,

capitali¬

other

aspects of this
proposed new institution. I will
not repeat these ideas here. They
in

will
the

any

be discussed by
Directors who, in

case

Executive

formulating

tions,

their

the

views

governments.
like

observations
role

the

all

IDA

The

member

the

Charter

substantial

the

examine

which

millions

hundreds

their

people live to¬
day, we cannot help but be struck
by this inescapable fact: If these
countries
their

are

Successful

efforts, they must have
to

cess

capital

from

trialized countries

that which

the

over

in
ac¬

indus¬

and above

them on normal

provided
The

Bank

down

itself

has

had

turn

desirable develop¬
ment projects which could fully
meet its ^technical
requirements
many

because—as

borrower

reserves

been
in

the

IDA
of

funds

fact

that

However, it

propriate
the

for

made

may

consider, for ex¬
ample, financing pilot projects in
fields

some
a

type

which

ductivity

rency
to be

overhead

contribute

and

financed

This

expenditures in
of the borrower

but

the

pro¬

development

not

area

the

States

;

has

continued to maintain

a
large out¬
capital to these, .areas for
development and assistance

flow of

both

purposes.

rencies

uses

the

mentioned

local

cur¬

earlier.

In
op¬

the

IDA to maintain the closest work¬

ing relationships with the repre¬
countries

the

of
so

less

developed
that its

ensure

bjank in meeting this

problem by providing funds con¬
tributed by member governments
which

can

terms,

including

lent

flexible

repayment

store

eral
of

states

body has called a 'tangled under¬
growth
of
past
cases,'
leaving
'much room for controversy and

This,

States

has

continued

provide

financing for imports into the less
developed areas from other in¬
dustrialized

countries

of the latter

many

are

whichu

now

position to finance themselves.
The

logic

of the situation

is,: I

think, clear, and we would hope
that other industrialized countries
in

position

methods of
term

development
in

Through
should

will

assistance

need

efforts

able

this

both?

capital.
kind

we.

meet

larger measure the nfeeds of the
less developed areas and contrib¬
ute

trade

better

and

♦From

balance

payments.
the
and*

has

Stock

ap¬

the

our

income

carefully

prescribed,

rules

limitations."

and

existing stop
explains what

ket" the
"the

"under

finds

its

development
needs in the best
ways possible.
Finally, we look upon the IDA as
proposal

flow
the
as

less
a

developed

substitute

sistance

the

increase

development

from

for
the

total

capital

"Historically, America's nation¬
free

market has

cred-

been

and

not

bilateral

as¬

areas

from

certain

industrialized

countries
It

our

"away at

based.

riers

There

are

the
Governors
of
the
Bank will take action to authorize
the Executive Directors to under¬
take
of

the

preparation

agreement.

complished

This

would

adoption

articles

Stock

Exchange,
announce
that Joseph M. Carminar
and John Inglessis are now
associated with them

as registered
representatives, in their main of¬
fice at 115 Broadway, New York
City.

Planning

(Special to The Financial Chronicle)

Samuel

Robbins is conducting a securities

business from offices at 9 Howard

name

Robbins

Planning Company. He
was
formerly
associated with
Hay den, Stone & Co.

interstate

trade

realized.

erected

the

Joins McDonald & Co.
(Special to The Financial Chronicle)

development

resources

The

taxes

state

out-

"In

have

and

states to tax interstate commerce,
have
real

created

the

"Congress,

possibility of a
pattern of

in the

breakdown

domestic trade

empowered

Constitution to regular

the

among

latedly to

the

commerce

states, has acted be¬
head off the potential
the

But

preventing
interstate

serving
states

has

McDonald

been

added

the

Company,
Union Commerce Building, mem¬

ac¬

bers

the

west

the

Stock

New York

Exchanges.

and

Mid¬

strangulation

the

while

commerce

the

right

raise

measures

the

pre¬

individual

revenues

they

court
state
Iowa

the

whose

only

activity

and- the

ders
was

delivery

maintain

with

office

goods,
sales

rented

salesmen

two

and

In another case covered

secretary.

by the same opinion, the state of

to tax a
manufac¬
turing valves and pipe fittings,
though its
principal office and
plant were in Alabama and its
only loqal
business
activity in
Georgia was the operation of a

Georgia
-

allowed
corporation

was

Delaware

staffed

and

serving

office

sales-service

who

devoted about

time

five

salesman,
third of his
a

soliciting orders in Geor¬

gia,

and a full-time secretary.
"Six members of the court con¬
in

these

decisions.

They
followed
but - thfe
dissenting justices contended that
it broke new ground by permit¬
ting for the first time state tax¬
ation, and
hence regulation, of
curred

held

that

their

position
precedents,

established

exclusively

interstate

commerce.

"A week
to
a

"Tangled
limits

Undergrowth"
an

individual

state's taxing power have been the

subject

years.

never

cases,

in
Minnesota,
aside from the solicitation of or¬

need.
Law

of the

manufacturer

business

states

in this country.

Court

Supreme

cement

ways

Now

the

tax claim by the
Minnesota
against
an

of '

source

set of

increasing

one

upheld

sought

revenue

quadrupling
more
than

expenditures

decided

enterprises.

the

this year.

steadily rising ex¬

sought to broaden their tax¬
ing jurisdiction over out-of-state
companies.
It was this attempt
that gave rise to two key cases

dis¬

But

have

states'
protect in¬

currently,
are
those
been multiplying in

business

regarded

needs have grown

revenue

sixfold since World War II—some

have

form

their

within

taxation.

debt

and

ex¬

most

states'

not

was

for

—with

have

increasingly

135

CLEVELAND, Ohio—Joseph H.
staff

War

Merely soliciting orders

state

basis

is:

than

Some

by states in the

industries.

"The

Thomas

Since

Broadened

establishments

tain

bar¬

Supreme Court decisions,
greatly broadening the power of

strong hope thsft the

meeting

Scope

borders.

Sheehan

Company, members of

firm

ori

erally taxed upon
companies that cwned prop¬
or maintained regular busi¬

developments

the

one

states gen¬
those out-of-

of applying it to out-of-state com¬

Two With Carreau

under

prevent

the

"Until recent years,

the principle on which the system

Street

other?

Tax

>vith an indispensable part in
promoting the growth and pros¬

"Pushed

Mass.

the states so
taxation

ited

extensive interstate business.

NEWTON,

out-

were

hand and unfair tax avoidance
the

penses,
states have
the income tax

Forms Robbins

but

ques¬

'substan¬
bring such a

company

multiple

internal

serious

used

York

activities

What

among

own

New

raised
vital

two

answer

gap

panies doing business within their
confines.
Logical though the un¬
lic relations
derlying principle may be, the red i r e c tor_for
the Exchange since 1950. He will "Snlt in practice has been a virtual
crazy
quilt of overlapping tax
function! "-as
Vice-President
in
liabilities for companies doing an
charge of public relations!

the

not

of-state

praises

danger.

the

14 years,

Carreau &

within

States

threatened

of-state

commerce.

activities'

'substantial

tions:

uniform

"Survey" points out that

United

John

such

legislation" tial' enough to
is needed company within a state's taxing
And
how
should
by way of a specific, uniform law. jurisdiction?
Commenting on how "Europe taxes on companies engaged in
works to achieve a common mar¬ interstate business be apportioned
the

turbing,

has bee«n pub¬

with

the

taxing state.
"This development

interstate

which

the

for

itself

limita¬

interference

years

did

tax

state

relations

staff

a
an

later another decision
principle to cover
out-of-state
companies
carrying

po¬

for

constitutional

state

extended

natural

Sheehan,

past

and

store

that

years, ago

the net income of

the

mote

Mc-

lic

few

of
their
police
powers.
Others have been devised to pro>-

Ed¬

T.
i

actual

the

tributable

Trust

ercise
an

ment

the

damages

interstate commerce, even though
the taxed income was partly at¬

recommending Con¬
gress enact, a law allowing states

been

ac¬

ward
r

tential

commonly

announce¬

tions

from

Guaranty

way

their

state

Ex¬

change,
cording to

its review

economy

tion

been

violate

commerce.

Morgan

in-state company did not of

perity of the nation's economy.
The system has worked well—so erty
ness
well, in fact, as to divert atten-"

Exchange

Vice-President

derived

than

state tax

extended

that Have been whittling

Of American
Sheehan

income

exercise

Company of New York concludes

wide

statement

The

world

by Mr. Dillon at
Annual Meeting of the World Bank
Fund, Washington, Sept. 30, 1959.

John

interstate

the

indispens¬
able power of taxation.'
"The
Supreme Court decided

Bank

taken, while they serve a stopgap
purpose, do not fully deal with
the basic problem, which is that of

important

the

right to tax out-of-state

companies

find, but

increasing their long-

countries

the states'

which

little

and

precise guides to the States in

September

fiasco.

most

confusion

not

regu¬

the

its

decisions

300 opinions on the
The result is what that

'some

the

income

maintain

of the

use

"substantial"

taxing state.

down

lar business establishments within

out

doing

subject.

that

borders.

recently liberalized

our

firms
or

gravest

growth,

for

the

property

the

reviews

taxing

out-of-state

own

economic

future

Supreme Court alone has handed

the tremendous

trade.

Guaranty Trust

"one

companies

the

bank

the

itself to the members of the Bank
and' that at our" present annual

to assist the

York

efforts will be directed to meeting

capital market—its loans
invariably meet high .finan¬
cial standards. The IDA is designed

private

within

cur¬

developing the pattern of its
erations, we would expect

sentatives

out-of-state

Morgan
as

and

commerce

steps already commenced by sev¬

result, the United

concept of the IDA will commend

must

interstate

their

United

the

considers

Court

likely

are

whereas

required, and this could be

of the

one

social

tax

New

harm

potential

points

President. Mr.

be ap¬
circumstances

some

IDA

income

prominent

market's pub¬

the IDA.

interstate

our

views with alarm

member of the

loans'

what

by a
exports of capital to. these areas,

nical standards of the World Bank

market

common

monthly newsletter, the "Morgan
Guaranty Survey," is a serious
harbinger, of what is to come and
results from this year's Supreme

Ihe

terms.

expect that the high tech¬

apply

own

reviewing

business

capacity

export to the less developed areas

k,
Exchange

deter¬

best

can

what

leave

discretion

itself

state

countries

industrialized

would

safely lent to
banking terms or
private enterprise.

can

its

and

which

the formidable

many

how

Bank.

interna¬

the

institution

World

problems which face the less* de¬
veloped countries in overcoming
tjie difficult economic conditions
in

however,

tional lending field.
.

has

increase

the

other,

pointed

Requires Discretion

measure

additional

the

IDA.

a
new
concept in
lending institutions.
important, therefore, that

anticipated

the

IDA

limi¬

are

would,

the

released

which

certain

make

recommenda¬

being asked to take into

are

account

recognized

are

international

ideas regarding

and

helpful

industrialized

S John Sheehan V.-P.

mine

desirable

might

world—surpluses
heavily concen¬

Other

whose

cur¬

tations on their uses. In any event,
deposits of local currencies would
hp made to the account of the TT)A
only after full agreement among
the IDA, the United States, and
the country whose local currency

would

zation

which

local

to the IDA is difficult to estimate

since

spent,

the

such

amount

outline

our

the

some

cases, to pay for
to JDA
develop-

i% appropriate

ber

costs

projects financed by the IDA or,

United States has provided mem¬

governments with

the

Sec¬

United

the

would

capital subscription of the United
States. .Our thought is 'that such
currencies might be used to meet

already

setting forth

Any

above

and

over

New Concept,

affiliate of the Bank,

as an

known

480.

large surpluses

American

Policy

Eisenhower and
behalf

stated

Aid

New

Anderson,

retary

Act,

IDA

the

course
.

International Monetary

con¬

Trade Develop¬

P. L.

available
C. Douglas Dillon

stantial financial support from

use,

been

the

situation

amounts of these currencies made

ures,

from

might

Assistance

and

ment

stabili¬

zation

aspect

Agricultural

our

with

problem

IDA

yet been accompanied
comparable increase in their

special

invite

one

our

That threat is shown to arise from the

This

foreign

has not

junction with its loans of conver¬
tible currencies, a certain amount
of the so-called "local currencies"
which
have
accumulated
under

of these coun¬

attacked

the

that

Certain

tion;

success

of the
proposal we have put forward for
an
IDA.
This is the suggestion
attention

faced

mean

worthwhile project.

would

of
the

amount

often

may

between

failure of

continued

marginal

funds

difference

coun¬

tries

part ijrr the currency
borrower. The availability

even

such

devel-

oped

States.

about

asks

threats"

posi¬

of gold
exchange
have
steadily increased.
An
important element in this
and

of the

suc¬

However,

the

many

been

achieving financial and

monetary
less

have

whole

countries

oilier

Urges

have

trated

industrialized countries to in¬
long-term assistance to countries in need of capital.

products abroad.

payments

United

matched

which

foreign currencies in its possession, as proceeds of sale of surplus
farm

the

elsewhere in the

fund's resources part of the

new

been

repayments to be acceptable in local

with

would add to the

Co.

of large deficits during
the past 18 months has, of course,

affiliate of the World Bank, it would make

terms,

currencies. U. S.

What

Inter¬

position

tion, to operate "multilatarally" in extension of loans to less devel¬
an

the

Monetary

international

tion

proposal for.new agency, named International Development Associa¬

oped countries. As

The Threat to Our Own Common Market

Fund, Secre¬
tary Anderson has commented on
the

Thursday, October 8, 1959

;.N

statement

national

the World Batik for the United Stales

State Department's ranking

U n i t e d
in the Pro¬

cedures Committee.

By Hon. C. Douglas Dillon,* Under Secretary of State, and Alter¬
nate

the

for at least
Because Congress has
litigation

exercised

its

power

over

later, the court refused
review a decision by the Lou¬

isiana

Supreme Court permitting
to tax the income of a

that state

Kentucky
which
sales

merely

did

distilling

not

even

office

had

sales

company
maintain a

Louisiana

but

representatives

soliciting orders from wholesalers
tax¬ and assisting the latter's salesmen
ation by the states, the courts have in arranging advertising displays
been left to develop the law on a in retail stores. By refusing to re¬
negative, case-by-case basis. The view the case, the court left open
interstate

commerce

comore-

hensive way, especially as to

Volume 190

Number 5888

.The Commercial and Financial Chronicle

(1487)
the

question

whether

an-

even

which

instances

ous

member

extreme version of the tax
out-of-state companies — one
levied on a
company not even

...

BY OWEN

coin

r«nir-A4'n

his

said

dealer

company

Public Service

rieri

Idaho^ UtohTtSftwSth0se StateS S 0U d
Idaho, Utah, and Tennessee—had
hanging

v?ntappd ^hetLla^lS„rt0^take a?"
rfotpntfa?

the

thf- SeLtp'l slw

^i^^

SmaU

Committee

nnr^

vdted

least

the

Congress to prohibit
taxation

And

income

derived

the

income

House

And

directs

hooding

does

evil

little,

the

effects

the

ramoant

the

•

...

that

out

these

Georeia

comoliP
nnint-

Frankfurter

^^fhore

relatively

rnThnrstinnc!' fn

tax

cpnpT'Gtp

each of these

made

defense
utJ-cuoc

iocated

apply to v","'-v*
out-of-

and atomic energy
also important; a
of vo^orui
nf Federal agencies and
qcfanniao onri
research organizations are
^bctRuii uigauiiauuua cue
in the area. Other aqtivi-

has

waoio ci

In
*"

uxvxxv,

lYinVP

the divers and variegated tax laws*

ITT

formerly

Co.
v.v.

The
xxx^

"The

times

<t»0

—it

for

mHoTJZi*

lo,

Sept

ios«

Santa Fe in July 1958, providing
for

10%
cfr,r.b-

about

j™

mortgage bonds,
debentures,
5%
preferred
anH

^7^

1«v>

iron

onwiviOYiir

tor

raised

lrRe fa:

^be

iarw
market,

over-counter

This

yolve large increases
accountinto, and
phernalia
to
meet

ing,

demands.

farflung
With

scheme

different
the

exceed

for

such

requirements

Customers Brokers

To Hold
On

Oct.

Customers

Meeting
the

Association

Brokers

will

historic

meeting at Schwartz

Restaurant,

This

p.m.

be in the form of

forum

the

taxes

yolume

business

Edmund
W.
Tabell, Walston &
Co., Inc.; Sidney B. Lurie, Josepbthai
&
Co.;" and Alan Cornell
Poole, Hemphill, Noyes & Co.
'
-

Jains McDaniel Lewis
(Special to The Financial Chronicle)

GREENSBORO, N. C. — Hal U,
Simpson has become connected
T*ri

4-T-*

T\/T/-» I'A nniol

onrin

JC*

with McDaniel Lewis & Co., Jefferson Building.
_

jetting
:

off

cut

source

facilities in

some

governmental

solution

sometimes

the.

the

Parts Greater Than Whole
-v"-'
.
*.

pay

state's

<trr.u~

revenue> and there is undeniable logjc jn the premise that a
COmpany with

several

it would

badly needed

and

costs.

that
-

;

The

proposed, of,
Government"

Federal

taxing

state

distribute

the

•

Proceeds among the states, would
increase the financial dependence

Ci? sequ®nJas of todays
„patchwork of state taxes were

•

illustrated

well
sional

at^ the CongresThe states

hearings.

use

yariety of formulas in computing

0f tbe states
sides

creating

extremely complicated problems of apportionment.
v-

the share of

they

*<■>■*

-tii

ness

-testified

ent

states,

that

his

company,
subject to levy in some 30 differ,

found

itself

the aggregate on more

taxed

than

150%

rules and limitations imposed

negotiated
in

ered

three
his

Colorado

states.

company,

$1.51

incurred

California,
taxable

passed

Another

South

paying

said
a

Carolina

administrative

that

tax

all

1958,

costs

approximately $15, in recognition
•

of which
rount

the state
5

cents.

allowed
In

the

dis-

case

tax

only

if the

office

rulings
Georgia

Danieo

Thn„

great trading center between North and

Federal and State income taxes. They are

South America, and

growing number of investors
high, degree of security com¬
bined with reasonable income yields.

It permits

latter
as

has
a

taxin^

the
the

cases,

a state

company

„tatp

taxing state.

upholds

of
or

start

Supreme

Thus
Court's

Minnesota
where

majntainpd

the

ssIps

and

but disallows the state's claim in

cents.

trade

representative of a
association told of numer-

the Louisiana
fice

was

case,

sales .offices,
where

a tropical resort of
beauty.
Twenty minutes from downtown San

rare

GOVERNMENT

Juan, International Airport is one of the
world's finest. Its' long "trade-wind run¬
way" accommodates even the largest and
fastest commercial jet planes. A dozen
American
and
foreign airlines already
serve

Puerto Rico.

Puerto

attracting

who seek

Rico's bonds

of-

maintained in the state."

P. 0. Box 4591

BANK

San Juan, Puerto Rico

Fiscal Agent

FOR

!«

exempt from

DEVELOPMENT
PUERTO

7
are

nffirP*

pani?s maintained

Cost

was 67 cents, the
$36. and the discount was

com-

Georgia the tax
was

out-of-state

business, such

place

warehouse

than a million passengers moved
through Puerto Rico's International Air¬
port in 1958. Nearly 39 million pounds of
air freight were also handled last year.
This ultra-modern airport, operated by
the Puerto Rico Ports Authority, reflects
the Commonwealth's swift evolution as a

makes

direction.

ac-

speed progress on the ground

Congress. The stopgap legislation
.,-

cepted in Connecticut, and deliv-

derived
from
interstate-;v
commerce, hut to do^so only under, , r
carefully prescribed, uniform

of its net income. Another pointed
already
out
that
under
present
laws
ax.

§ale

A more realistic course^ would
permit the states to tax^in-

a company's earnings'
entitled to tax. One wit- come

are

Washington,.^be- .".

the

market, including stocks to
buy or sell now. Speakers will be

neither practicable,

and

should

themselves, especially in the case
of small companies doing a smal
^tates-

in-'

wiU

stock

well

educational

commerce.

taxation

hold

arising from interstate busi-

equitable:

nor

may

state

Would

nesg

interstate

ban

come

complying

States

burden

in bookkeeplegal parathese
"ew

cost

the. taxing

the
-

The

in-

0I^y

facing Congress is to

burdening

will

-tilrt
the,

l'llnf

stock 59^1 about 3% (payout
yields
0nlv

for filing returns, different
draw
t o£ rules th t will
structures, different modes for
permU "the states t0 mept their
determining 'net income,' and dif—
revenue
needs
without
unduly
ferent, often conflicting, formulas,

apportionment.

56c

?n iQ^'a alr3n2'
!?ith nl^Pnt
aJtnrk7iSi
S S
J Vp
'
d^,di Th<5 price of the common
J S£« t<I
5?7h?Q SiSr
llA®'1® °? „rfil arn,!n??ov In'

tax

«0r>

48%

stock and 37%
common
stock
V\1
aIvm
/-if
a/ntiiItt
T nef
fbo
large' blocks of-equity. Last year the company
to the AEC installation at sold $11 million 4%% bonds pri-

J aILt/vutt

delivery

power

was

1958

1 SDlit in 1952) in the period
Deri***

?048U51. weJe

QOUD16Q*

A transmission line was completed between Albuquerque and

nlTPPTinD

task

paid

20c per mcf but
a new rate schedule is now becoming
effective
with
slightly
higher prices.
Compared with present gener-

net plant
rather

"tment

company
v.Uxx.jyUxV

^n;^rrous ating capability of 208,000 kw the

•

Balancing of Interests Required

o| 49 States, with their different

1111311

legal counsel, all to meet

Gas

declined

•

S1 th^ee Utmes aS Iarge 33 in lion. may average about $8'4 mil"
t'°n
reV<mUeS
CspltsllZ3tl0n fit X-)0C. 3X^ 1958

view of the Supreme Court s decisions' however, it will be surpris•
e
there
is not
widesnread
ing if.there is not a widespread
thllt
m0ve in that direction'

means

nuUber, of,

Union

6,000
in
190(5!
The
o,uuu
in
iyuu.
ine
company s
company's ye
yfear expenditures are estimated
electric customers iricrftaafid--25%—M. $10.5 million^ and the same
during 1949-58; electric revenue amount is scheduled for 1960; in
of $13-7
million in 1958 were the two following years construe-

the

sellin^acUvfttos alone.

basis of

itinninp

States

number
nnm'hor-

•

°M

^businessef'on°

tourist and res0rt center,
as is aiso Las Vegas.

^pff/rome^of

over

that thev will have to keen books
1
w
Xldvc
xveep xjuuiva,
make returns ' store records ' and
engage

city# is

conditions- As a practical matter,
only a few coriqnc up untl1 now
states offnvfc fr. tav
U„,,0

size coroorations UUXUg eXLiUSXVeCUipUXdUUiib doinc exclusive

]y interstate business spread

manufacture

flour, sawmill

taxes on lhe net 1"comJ. of ?usi- metals, gold and silver, etc.
company believes
it will need
ness concerns or franchise taxes
The
area
has
grown
very
300,000 kw by 1963 and 500,000
based on net income. These taxes rapidly, with the population of kw by 1970. Construction expenaggregate about a billion dollars Albuquerque
increasing
173%
ditures last year approximated
f year> U is^ficult to determine during 1940-50; the metropolitan $11 million, ah increase of nearly
w many .of tY}es.e state and local population is now estimated at $3 million over 1957, which had
m laws' in their Present- form, 238,000 cc%upared with only abodt seta record up to that time. This
can

moderate

the

cement,

products and machinery. Santa
Fe, the capital and second largest

thoiisands

are

small

ef-

ooinion

and

burden

Justice

ance

dissenting

Minnesota

cases >

One

his

The prospect of meet-

discussed bv Justice Frankin

includes

bricks,

"Approximately 36 states, the cotton growing, lumbering, proDistrict of Columbia, and at least duction of gas and oil, and mining

com-

taxation

furter

dustry

of local governmepts is a formid- ties in
s^e inciU(je irrigation
a
°ne"
farming, cattle and sheep raising,

\em-

fects

st,?^es and an mdefinite number

the

state

account

proper-.

querque with an estimated capability of 49,000 kw, which went
into operation early in March;
a second unit of the same size is
scheduled for completion at
Reeves late in 1960. Older units,
with combined capability of 158,000 kw, will now be used mainly
for reserve or standby. Generating
plants normally use gas as fuel,
Ax/hiph is purchased fmm finntViArn
rmrphnspH from Southern
which

^nH^i^itA^niimhpr

rase

to relieve interstate

merce

Louisiana

The testimony of .businessmen

vS Uv+
liability.

tbp

extreme^ consequences

The company's electric

by the Reeves Station at Albu-

tbrea1J tof inter&tate commerce, Electronics
r£f-ar
increased tax activities are

the

off

porarily

ings, percent earned

and surround- were also connected in 1958.

New Mexico> is the commercial
center for a large-area. Local in-

costs and endless possibil-

that the difficulty of
c°mPila?c? is probably as great

Committee to

nlierl

legislation

Percent

montti7nded

warning

and

the

•

U/he ^ong/esalonalbeal?"gsUe,"
infor?ed ;.dUxStl?J;
^Fa/lkf1lirter ®

1962.
from

follows:

num-

•

£si-

an interstate

study the problem and recommend
permanent legislation by July 1,
"^sidp

Earnings per share have shown
steady increase since 1953, as

-f£rL Tog^to

maintain

Committee

the Senate Finance

ing operations in the U. S. A

quoted

ties became completely integrated

£^7 Xatfon

out-of-state

not

Judiciary

Albuquerque, the fargest city in

places of. business within the state
boundaries.

the

new

character, -c]ericai

emergency

which

for

pinAs doing

seAuoVpresldent

study that the problem requires.
It provides that states shall not
firms

earnings

vLrs
the
and broader
ng vraS m*New M?X1C0: Itcals+°
b?sis! couldexpose comH*
**? watrer services in Santa

ous

designed to "freeze" the situation
and
give time for
the
careful

tax

ings.

yet.

also in¬

detachable recently

appear

from

mt^SZAtl-ummrfi '
Congress and

was

not

•

limit state

who

•'iiC^ci^e to^sess S° foV tfXK Las Vegas,^ Deming

introduced

were

Service

•

aeere

decisions

bills

Los Alamos.

1961, and 33% there¬
July 1, 1963. The war¬

hearings

the problems created

tc*

bublic

held

New

those

over

warrant

Increasv
Earnings
do interstate business is the threat months ended June 30 were $1.53, ber of new industrial loads were i2mos ended
June 30,
1959
$1.53
oi retroactive tax.liability.; One reflecting a gain of 24% over the obtained in 1958 and existing in- 12mosended
24%
1958
1.39
16
of the companies involved in the previous period; and share earn- dustrial customers in many cases Ca
1957
1.20
5
1
Supreme Court cases last winter ings have more than doubled increased the scope of their op1956
1.14
16
1955
--2
.98 '
was contesting a*sessUe^ run! Slnce 1953.
7
erations. One of these loads was
1954
.96
28
frorrY ? «tSo°<w» Tf
:
The company seryes. electricity a large cement plant to be. com1953
.75
*?tahng about $102,000. : • If other. to a population of approximately pleted in early 1959. Some 5,062
Despite the gain in share earn¬
?at<L gove™,me*?tsv encouraged 280,000 in Albuquerque, Santa Fe, new residential electric customers

rlvealed souJce ofS
inc

but

allthestates Mexico is developing into a "rapid augurated to the Ambrosia Lake
months to which the goods are sent, it,growth utility although the stock area, the center of one of the
7 se]ls at only about 20 times earn- largest uranium mining Ldmill«Als0

the

Company of New Mexico

Service Company of

rants became

^^d b^

detachable

June 30,

after

fteTe'lLation^With ^7.777 «'ith ^etax la™>
after

carried

ELY

buy
three
common
shares
at}
price of 31% from Oct. 1, 1959

700,000 sales yearly,
ranging from 35 cents to $2 each,

■*

ESSv

$5,--

about

makes

year

400,000 5.25% preferred stojk wa9
marketed. Each share of preferred

Reaction in Congress and else^
Where has made it clear that
the

nately and in April this

Public Utility. Securities

companies, in preparing California
tax returns, paid auditors' fees far
exceeding the amount of the tax,
having an office in the state—
including one fee of $749.50 for a
would ultimately be sustained.
return showing an operating loss
r
and hence no tax. A stamp and
Action by Congress
on

RICO

for the Puerto Rico Ports Authority

37 Wall Street
New York 5, N.

Financial Chronicle

The Commercial and

(1488)

•

;

•

The Market...and You

high-water

The Security I

mark.

Materials Issues

STREETE

WALLACE

materials

The

time but

sen.
dent

some

be in

would

Directors.

Board of

the

JU-

fffj'ir

specific per-share earnings
of 1959 were
being revised downward or
tossed away.
-A
'•
Pointing up the imponderables in the strike
tion

was

Steel

Acme

all

tho
thv.

timp
time

to show

best showing for the company

the

LaT

half

since 1951, and improvement
of some $2 over the previous
year's $6 profit. That obviously leaves plenty of room
for some more dividend largesse since the present indi-

too

be"n

stocks

were

good determination.

cated rate is $2 plus a year-

bit

back

by the market slide and

points

hieh •
o

day's high prices. This stock must
be considered an exception due to

its high current yield and with

growth and profitable operation.

under

Home." Increased

.~r—•-creases

raised

"Time

Coming Action of Steel Issues
n k
fori
ueDatca

•

the

continued

Roy E. Larsen, President, stated
in an address in March 1957, "The
curves that magazines, growth fol-

its

rates

March

All

nomics.

three

moving

are

Magazines such as pub-

July, and ahead

"Fortune"

J®59'

House & Home" in January, and lished by Time, Inc. are prepared

"Life's"

will

rates

increased

February 15, 1960 due to an inixfkoro tko Loct roKnnnri wmilrl
crease in their circulation base of
e oest rcDOuna wouia
c>500j000 They als0 proiect cir_
come once the steel strike was,
cuiation
of
.7,000,000
copies
a
market was
Deere which settled, there being near ag- week in the early sixties." As adIn the steels the debate

possibility

every

erations are being offset by in- lows are largely the curves of
in advertising r a t es. population, education and eco-

this year's
:

and "House
costs of op-

Illustrated,"

"sp0rts

currently at about

sh™ld. f}ot be considered overly
optimistic.
year by a
Most growth stocks do not prowith this vide a good yield based on to-

magazines in ad-

all

P~ted by Time, Inc.'s other publications — "Time," "Fortune,"

vears.

torced
i

is available

end extra which was 37/2
cents in the last declaration,
The September downturn
in

dozen

times earnings, the possibility of
Time, Inc. selling at 100 per share

in advertising revenues. Similar
increases in revenues may be ex-

doubled

about

earnings

parable stocks selling at- 15-20

year,s increased advertising budgets
wdl
show
another increase

good growth, its sales

ends on Oct. 31, indicate the

able

less than $6.00 and as high as
$7.00 per share. With other com-

publication,

principals

led

vertising revenues last
substantial margin and

able

was

company

Time»s

"Life"

mean-

n/is

nnmmnv

ac-

among the least affected in
the list and held their ground
with

of the split. In the

vear

post-

the

In the face of it,

steel

the

only this year was able to post
a
peak aboye that set in the

and

poning dividend action since
there were no third quarter '
earnings or any indication of
future profits for the directors
to ponder in deciding on a disbursement.

has been en an upgrade in its
profits picture for The last
f°ur years despite the recession. Preliminary estimates ol
hs fiscal year profit, which

the stock reach

mr«s«W5ss
with earnings estimated to be not

for the full year

see

m^mcrease m^e^rnmg.

cb,kf5uipT„, i„r

surprise the writer of

iUU1LtHCU
' " ■ tv'
Earnings for the first six months
ending June 30 were $3.09 per
share and there is every possi-

not

this article to

bit

Inc.,
AID'divisions
of
Time,
weighed heav- group shows more definite
more demand now that all the
particularly in the field of timber,
ily on the stock market this signs of having bottomed out.
emphasis in factories is on P«lp, Paper, folding cartons; heir
week with general irregular.
,
.
•
l
ownership and operations of teleity the pattern more times
Value ,n a Neglected Area trimming costs to offset high vision and radio stations in Min••/.> rieapolis. Indianapolis, Grand Rapthan not. For a change, ruWith all the uncertainties labor charges.,
*
*
?
ids and broadcasting stations in
mors
of a quick settlement *n some of, tub .key areas, the
were
impotent as :a rallying hunt wasi lor good value in
one,
force.
.
:
some of the neglected areas had a wide interest during ownersbip jn the new forty-eight
the days
when the prewar story Time & Life Building in
The steel shortage was put- such as the farm equipment
modernization fad was in high New York City are being operated
ting more and more of a pinch group. In this Deere & Go.
It
«nhc;iHprl
after
ihe with every assurance of current
It. ..ubsidep alter the ^
on
industrial
production to had hs staunch champions be- gear,
fitable
business for the
shares- were split in 1956 and luture
where most of the estimates cause, among other things, it

The steel strike

seem

substantially

Thomas J. Watson Jr., Presi- ah stock splits of the past few
of
International
Business years, their stock might easily
Machine,
Machines, was recently added to jump ten to twenty points. It
was recently

is-

„

for

favor

Like Best

the market action

Continued from page 2

Tru
that have

out

been

Demand

handling

another

are

sues

Thursday, October 8, 1959

discount frpm that

was

to meet* the demands of the better

better rewarded, and
alert citizen of the future.
A11 my experience points inevieducated,

tably to the conclusion that magageneral
zines will expand further in their
a bit by
Autos
vacillated
between sold a dozen points higher greement that there would be vertising receipts are the main influence and will get a corresa
of revenue,
for
share of adverhigh hopes for the new models when the general market tone at least A»,momentary celebra- source 70% of total accounting net pondingly largerand circulation.'
about
revenues,
tising revenues
Hon.
Alter
<

Vacillating Motors

aiso felt

and the threat that the strike

interfere

would

their level

with

It leaves it

better.

was

where

far

from

production. They pursued an being overvalued by the trauncertain

course,

conse-

-Tquentlyt The court-ruling permitting du Pont to continue
to hold

the 63 million shares

of General Motors,

losing only

power,
ended the
threat of million-share dump-

voting

ing on the market and
hailed, but the glee was

Movements
stock

the

various

were

sition

offer

technical

any

indications

what

comes

next.

.r,

Casualties Go On
the

were

casualties,

the

continuing

items

this

section

believed to

floor.

troubles

uiation will increase to well over

the earnings of $6.15 per
for 1957—the period just

200,000,000

;

item

bound

The steel strike also cast
something of a pall over the

contracts

the

ten

at approximately 4% per^annuin,
educational levels are bound to
continue to

Increased

move up very

educational

rapidly,

standards

and facilities and the improving
tastes of the consumer present to
publishers
challenge

of good magazines a
and
opportunity
for

its labor curring during 1959 reflects the substantial expansion even more
right through excellent results that this company significant than that of the post
is receiving from their investment war years.
Qtppl
hoc
The increase that many anabteel has boon and activity in Canada, Japan,
been
sinc^

run on

strike

the

within

and with incomes rising

years,

Diofrmi
iJetroi.t-

other

and

countries

Western

iysts

project

total

for

business

predictions of tightening up its operations Europe — as is also being evi- activity in the 1960's will be reyear-end dividend liberality and materially improving its denced in the operation of foreign fleeted for "Life" and their other
although the lists of candi- earning newer and is still not subsidiaries by many other of magazines, not only in circulation
dates for good action was still at fhp'Vrjd nf thp road since our lar^e u- s- corporations. / but also in advertising growth.
is
Another
management
"Life" and
it
adding oxygen equiplengthy, particularly in cases if is adrliro1 ovvupn pnnin publication recent expansion—the The suppliers haveofbeen jointly
of "Sports HlviStratedits
ment to its turnaces to ±ur- now
like New York Air Brake
ordy ^ve years old
has putting into effect an expansion
improvement program
where the current rate is one ther improve operations, shown impressive growth. The Quality
that had to be shaved during With its operations continu- action in June 1958 whereby that ^ cos^
:
W
hnn
the recession. In the case of ing, ' a saips .hop of a third Canada rescinded the 20% tax on A few points of activity along this
a saies
ot
tiiira advertising revenues of certain Ime are the new paper mill largely
N- Y. Air., the previous rate or more over last year is pro- magazines, including the Canada devoted to "Life' paper now in
0f $1,60* was dropped to $1.
jected and earnings, it is ex- edition of "Time," made it pos- its first year of operatiomat St.
But earnings for the first half pected wi]l improve to where sible for a reduction of advertis- Francisville,
Louisiana; their
of 1959 equalled the previous the indicated^Sl pavou^ this ing rates-thus placing "Time" in Springdale, Connecticut research
tne
.nd .cated
bt payout ttns
a more favorable competitive sitlaboratory is in the middle of a
annual dividend rate and ex- year, including an extra for uation.
4
$6,000,000 research program, and
ceeded the earnings for all of the year-end, will be covered
Dividend policy has been sat1958 with half a year's still three to four times over. This isfactory with every assurance of ?
niant
fnv
«Tifp"
This
will
*

the

would

go.

have found

addition

business,

the

When it

* ~

*
comes

are

yields the
largely in

the

petroleum the rails where investor dis-

oils

were

burdened with much

also

talk

their

oil

interest

has

lightenpositions.

These funds have been whit-

automatically make it

candidate

pro-

so
g' Kansas
Cly Southern, which main~

tahied its $4 rate

ever

since

added

dpnd
dend

divi-

imnrnvpmpiit

have

TLp

The

improvement.
been

holding

the

but that

year's high price

only represents

point -improvement

year's low.
a

tling down their oil holdings it was established in 1956,
which
have been
their big
pays out less than half of con-

for

shares
around

been

investment company

„

Strike Repercussions

oversupply and sporadic price high returns

ing

statistics indicate that U. S. pop-

surpass

woe

sagging into new low
ground despite the fact that
they have been well depressed
earlier this year and at times to
were

over

carnings from all sources should

,x-

Oil
Oils

skeptlthe trend of stock
ot

widespread

largely
meaningless, leaving them
still comfortably above
the
September lows, but in no poaverages

cism

however,

plenty

was

1957-1958 so-called
yardsticks. Further- prices until there is some eas- Pr^or ,t°
mbr% jf offers an abhyp-gypr* ing in the tight money mar- 1 ecession.
,
°
a
,f Advertising,,. revenues for the
ket wnich, apparently, wont
international
editions of "Time"
age yield that could be revised
come before spring,. One issue
and "Life" for the fifst half of
upward swiftly if the comthat was favored a bit widely 1959 were up 14% over the first
pany adheres to its traditional
TWrnit m^l
d mprlinm- half of 1958. During the full year
wdb ueuuit oiew,
a meuium
pattern ®f paying out around
Qf 1958 such revenues increased
45 percent of the net income, Size proaucer DUt not as a re- 4 5The additional increase oc-

mo-

quickly".

there

ditional

was

mentary and died out rather

that,

at a

modest

from

This

over

seems

p$^
Svmint thatrani Jfl-om
A«urlin^
to $1.001
pei^ share. Assuming the

th»

1959 to be not less than $3.50 and
up

the There

marginal

acreage

treating

ad-

FaSgon^vfeH of~64 BO"/1

ditional value and assuring them

few comparable

p^per^equfreme^te11'ove/40

are

but

food fad^stocks

appraisal of the shift with

high-cost,

Tvp ih^ir

to $4,00 per share, the stock

10-

to be

raise eastern printed copies from
one million to tw0 million per
week with intended advantages
Qf speed and distribution. The
continuation of their long range

u n u s u a

g™.;me

Inc

®rietrnTn!r™S19f7e®^
prospects
for ™

ex®L3on s!ouW

doeg

business

take care

of the fast growing, large class of
well educsted consumeris whose
interests and tastes inevitably

ever since "War
II, and solidated earnings which gives producer to s well-integrsted directly with the consuming oubpresumably the selling is still it plenty of shelter. Its re- supplier strategically located lie it is to the interest of the comto serve the auto and appli-lead them,to seek "formation-.going on. All the talk and ,turn is better than 5%. Yet
ance
industries currently so selling at a level where it may be the kind of information that on y
the new lows
being posted the shares cf this quality road
advisable to have a stock split magazines can supply,
nu
made
market
opinion defi- have-never since approached
ry ior steel supplies.
(which invariably increases marA financial writer stated early
[The views expressed in this article ket activity in stocks when
a,
jn July
"If you take 'Time' to
mtely cautious when it comes the peak of above 92 reached do not necessarily at

stake

any

the

will

oils,

situation

that

probably persist until the

1956 and

available

lately have been
some

15"

points

They

with
are

those

time coin•

the "Chronicle."
presented as those of the

author only.]

stock split is imminent) it is pos-

sible that
Time, Inc.

the
may

Directors of the
take such favor-

a61e action. If so,

and

based on

„■

„

1J++i«

put ,a llttle

-t

vnur

in-

Llf/ ,ln y°Ur

vesting, you might increase you
'Fortune'."

Number 5888

The Commercial and Financial Chronicle

"So U.S. Steel is investing $670
An

American

soon

»be

new

homes
not

baby is born
200 million.

over

new

mention

every

And

schools and

million in us"

every day—4,000,000 a year. Our population will
population grows, our production must grow. We'll need millions of
hospitals
new highways to cany 75 million motor vehicles by 1970

eight seconds—11,000
our

countless

appliances and' conveniences that haven't even been invented yet!
No
temporary setbdck can stop the growing needs of our population. That's why U. S. Steel is proceeding
with projects requiring further expenditures of $670 mi]]ion to provide more and better steels for tomorrow's
i.

citizens. This is

the

wav

we've demonstrated

our

faith in the future.

USS is

registered trademark

United States Steel

The Commercial and Financial Chronicle

(1490)

There's No Competition Between
Mutual Funds and Life Insurance
By Edward B. Burr, C. L. U.,*

Chairman, Insurance Relations

Committee, National Association of Investment Companies;

Insurance

uses

Burr
tacks

I which]

funds

mutual

even

salesman.

qualified

are

3L.ife

insurance

business

substantial

forms

thrift-minded

cient

per-

services

people.

for

it¬

unto

other

the

its

the

Dwells

in¬

because
state

probably

mutua

own

institution

Because each institu

that
nh-

ruhorwricp

cant

Pe0Ple

tain.

Much^ wider...public owner

serviees-4hey

want.

not stop

Is this surprising?

Tslnr chnnld

]iv

Not

hp surnrisin?

really- 1X01 snouia it oe surprising

m8anagemeAt

deplore this kind of

rPCruif;ne

•

their

living

not

are

logical source of mutual fund

But

the

jbe

grandchildren. We are

and working today, and
life insurance and mutual
funds, in their relationship to each
other, are riding over some of the
rough spots on the road to a more
brilliant, more harmonious future.
I regularly read the trade jourliving

life

full

business

insurance

them

blame

time

to
We

for

getting
disturbeci by recruiting efforts of
^ind.

Wcmo

■

irf

nmnd?wnulH

disturbed by Proposais that would
||PP^ L
*§tl^0r ° rnH" f
„

institutions161 °have wdtten^and

Ixcep^ecuHUero^Zt^l fundS

relations

Are we in favor of dual licensing?

acted

have

think

Pnr>h

for

spokesman

public

fnr

each

seen

inrhistrv

indus fyall the cominformed

nronmonte

arguments
into:
e ,
and
downright dishonest-that have been used .by

petitive

uninformed

consider

some

Are

No.

accusa¬

stay in your

indus-

two

two.

aside

But

from

supervision,

mutual
funds are also thoroughly policed
by multiple agencies at the Federal level.
The second reason this clichecharge is so silly is that so many
life insurance company officials
.

agents serve as directors of
mutual funds— and vice versa,
Can the man who
levels this
charge at the fund business really
mean it, when so many of us occupy responsible positions in the

and

insurance

business, too?

miiuence

cinna1c

whn

mn+nn|

riln

P-m. s

•

these

arguments and some of the problems we have in common.
Let's
look at the nature of the apparent

Actually,

portfolio

our

.tual

funds

Who

competitive are muand
life
insurance?
competitor to

the greater

the

business—life intelevision sets? Which

fund

surance

jectives of most funds

bans
,

the sellmg level-

are

first,

products, mutual .agreement.

How useful is a, mu-

about

how

much

mutual

they

funds?

know
would

creating an mime- kke to consider some of the stock
diate estate
or
in guaranteeing criticisms writers and speakers in
dollar-sure
income for
widows, the insurance business level at

orphans

retired people? How
provid-

useful is life insurance in

the mutual funds.

Every business

is the victim of such cliche criti-

either of

meets

all

have

atitute

for

the

do-all

the

planning?

These products are not

Neither is

needs

our

realm of financial

tive.

this

adequate subother.
There are
,

important, exclusive uses for each
modern family and business

behalf

the

life

them

the

Dow_Jones

sion,

we have adopted and enforce
vigorously a Statement of Policy,
part of which states:

"It will be considered

Stock Average or the Standard
and Poor's 500 Stock Average is a

comparison of apples and oranges.
stiH ^/^"

cbche-

can

ine taci

gamble in stocks

rr„pnt

witness the .re ent run-up rn
can't gamble diversification fund
with a mutual
—the
wide
a
in

mutual fund eiiminates any
f

«amhlpr's

^ofts
f

Here

risk
we

ha?e

vocabMiarv

chance

eamhlpr's

ment

confiscate

vonr

ra«?h

—"they"
when

to decline ta zero. Does

words

anyone

!?etieve that this will ever happen?
never has. But if it did, does
an3'ona believe that any life insuranc® contract would be vvorth
as mHc/1 as
Papcr on which it
1S Prmted?
v

•

.ac?yertlsmf promotion and

charge you interest involved
they lend you your own

—"they"

in most life contracts

fl muc™

money;

terrific

profits -would have to

aid

han the smAU In-

vpStnr_nnCiriii^

make

company

type

same

strictions

under

the

of investment

limitations

re¬

is operated under

fiduciary

-rda

pay

if he

tal

similar

obligations

the
S.

local

has

such

United

States.

This is

limited

ment

Companies adopted

Statement. .of
of

code

which

the

ethics,

NA.L.U.

the

right

has

real

"Association

Neither

headed

that

the

indiscriminate
surrender

val¬

company

several

are

books,

bro¬

chures, and reprints of published
in

now

circulation

securities dealers
to

purchase

are

which

that

being asked
this

support

proposition by misstatements, mis¬
interpretation of facts, and dan¬
gerous and unqualified generali¬
ties.

Dealers

being encour¬
aged to use some of this material
together with recommended form
of

are

and advertising as a method

increasing securities sales.

Statement of Policy on investment

sales literature
of

use

"Much

this

the

and

the

for

ord

each

N.A.L.U.'s

—

remarkable

dealing

individuals

who

outstanding.
has
punitive

its

business

own

the Joint Statement

The

record

these

Principles.
committees

should become the record of
every
element of both businesses.
There

are,

short,

instrumentalities

effective

which

they encounter the dis¬

honest,
other

either

unethical

business.

business

seller

Don't,

can,re¬

material.

difficulty

into

the

oneself

gutter

without

oversimplify the

actu¬

either of
a

job

statements about cash

under life

issued

bene¬

insurance

policies
level premium basis.

"Representations to customers,
part of an overall general sales
approach by a securities dealer,

that

ordinary life insurance

"miserable

existing
should
ceeds

have

investment"

cash
be

used

to
or

and

purchase

values

the

pro¬

do, and

surance

each

has

the

end

1958

was

eliminating
only

Only 12 million people own any
common
stocks; this includes 2
million people who own mutual
Private ownership of busi¬

and

industry is the indispen¬
ingredient of capitalism. If

sable

wish

capitalism,
got to

preserve

mutual

have

funds

equity capitalists.

Encourage

Capitalists

Why?

Because

traditional

the

sources

equity capital—the ex¬
wealthy families — are
drying up and disappearing under
the
burden
of
taxes
which, in
many instances, have become con¬
fiscatory.
Why else do we need
more
capitalists?
Because we're
tremely

in the
midst of too capital-de¬
manding explosions which are so

overwhelming
aren't

that

explosion and
logical explosion.
How

can

either of

often

they
the

observed:

even

lation

the

our

popu¬

techno¬

businesses

afford the time required to attack
the other when our responsibili¬
ties and opportunities are growing
at such a fantastic rate?
Consider

population.

Columbus

When

dis¬

America, total world pop¬

ulation

was

500

took

million.

300 years—until 1815 for this
increase by 500 million to a

over

population

But

doubled

again

can

results,

now

I, it

that
was

t's

happening?

From 1933 to 1950, a period which
included the most ravaging war
in history, a war in which millions
of

people

perished, in this 17
population increased
by 500 million people. In short,
the world is growing at a rate of
one billion
people every 35 years.
Every 35 years we are adding to

years, world

world

population

people

America
U.

mutual

other securities

undesirable

that

and

surrender

realized

most

dirty,
big

We both have too

us.

only scratched the surface. Aver¬
age family ownership of life in¬

This

resulted, among other things,

surrender values and death

fits

getting

dirty.

We can't afford to become

billion. In the next hundred years,

with

basis of life insurance.

erroneous

the

urged

field men in each business, start
throwing mud back; one can't get

efforts

can

I've

at the end of World War

has

field

personnel
turn when

2 billion.

with

indulge in irresponsible at¬
on the other, in violation of

tacks

this published material stems from
arial

rec¬

effectively

covered

"Serious violations of the SEC's

company
sult from

both,

Ben
Salinger and
of which I am Chair¬

man—has built

of certain pub¬

use

other securities.

articles,

are

unfairly at¬
ordinary life insurance and

investment

and

Governors

The record of

—

committee

but

powers,

Need

members

material

"There

Committee

pro¬

into proceeds for the purchase

ues

sort

N.A.I.C. Committee is

make

powers — recently
mulgated this statement:

recommends

Joint

—

Trustees

Board

enforcement

ness

fine,

can mean a

punitive

against

an¬

revision

studying.

now

are

Principles

Board

N.A.I.C.

our

funds.

this Commission."

N.A.S.D.—which

warned

outgrowth of

other effort. In 1954, with N.A.L.U.,
the National Association of Invest¬

$7,260.

restricted

com¬

savings

do business Or both.

lished

the

across

compa¬

registration and

Our

tacks

the

Violation of this

call,

are

insurance

and

file with

loss

to,

office

D.—there

and creditor coverage, it was

authorities

bank

fund shares
were

gutter; go

write
N.

$11,009;

reZjrob?
the

?
in al^dout;.lt awards the
dealer for his services and covers

value^y COnflSCate 70Ur ^

materially

misleading hereafter for sales lit¬

insurance 7"

business:

"thev"

competi-

important starts
with the

Working

area.

Securities and Exchange Commis¬

unlike the averages^and compar-ng

the

NA.I.C.'s,

have made

Does

the years.

over

by its statement of policy

investors an opportunity to cisms.
Still another cliche criticism of
participate in the risks and pos,
mutual funds—"The sales charge
sible rewards of owning equity
Cliches Used by Both Groups
is 8%—too high." I still blink in
shares in an expanding national
WeI1 do , remember some of the surprise whenever I hear this. The
and world economy?
.
cliehe critici3ms i used to answer 8r? ??y? aI1 'he distribution.costs
ing

that

is
people on their life insurance^—to twist away valuable
cash
values, options and other
benefits policyholders have built
to sell mutual funds

way

unsell

nies, except to the extent that

almost to lose everything—to be wiped
are
in out—the equity value of American corporate wealth would have

with—

make-up of the statistical averages. In short, the funds are quite

insurance

deal

by education or by rule—

the life insurance industry and its this cliche of "gambling" in muservices is no less high than theirs, tual funds on the basis of simple
letters
In long range family financial logic. For a hiufdal fdM investor

But

fund

best

quite

discuss— to a better understanding of each
ing life insurance; my respect for other's business. But let's consider

There is no point in

funds and life insurance, competitive at all?

either

big job

and

out

conversion of cash

ing - that possible competition
lies. Here we must both focus our

larger competitor—mutual planning, life
funds or automobiles?
always comes

tual

ferret

have

specific and, in their specifics,
differ dramatically from the

sales management and field sell-

is your

Are these two

people

entthings tcTyou

how

business

The f^LisJhaL
the investment policies and ob-

competition between our two busi- careful attention because it is here «jnvp(?tmpnt »
"cnorolafion"
nnd
nesses and the quality of some of
we have the greatest pontact with «gambiing» mean entirely differthe selling that is taking place in the most important judge to whose
and to us
We
each.
jurisdiction we are subject—the ought t° t
{ understand each
Their Competitiveness
insuring and investing public.
other's language—It's a first step
Just

two-way street.^ We. in the secu¬

rities

Pr®tty unskilled, they cant even
outperform the stock averages,

is that you

oui

Policy

nothing I have said suggest
that I think this is anything but

nrZ

fnnHc

but

trie liie agent,

con¬

except

plane.

Statement

Mutual's

thlv in't P^n

!,rjttv

agent

tbe

any

„7e

on auai licensing i wi singles out
&
„
mutual funds as a "contaminating losing ail your money,
infiuence»

out

ban

reputable

too

business

erature—

singles

j licensing that

any

its

or
interpre¬
being violated, don't go

tations
into

the

important,

of these rules

one

plaint is warranted, observe the
quick effective action.
Or, if one prefers, N.A.L.U. has
a committee, too, to which one can

—

Stopping the Dirt
If

in¬

Another favorite cliche criti"(g)(1) To represent or imply that
cism of mutual funds goes like
shares of an investment com¬
this
"More than 1,000 mutual
pany are similar to or as safe
funds failed in 1929 and shortly
as
government bonds^insurthereafter."
ance
annuities, savings
ac¬
-p^e fact is that only five mucounts or
life
insurance, or
have the fixed income, prin¬
tual fudds existed in 1929;
failed None failed in the 30s and
cipal, o r any other features
" 1
u
'
10 my knowledge, none has ever
of a debt security.
"(2) To represent or imply that
failed in history,
Annfhpr
PiiphP_"ThP
nrnfpc;the management of an invest¬

Mutual tuncts are ail right it you
want to gamble in stocks and risk

opposed to

?eh0 such
a™ opposed to

Stort

effort to sell against the otne
Let

these

state-level

rieht

the

resnect

devote

agents

not

today

tave

this

securities

"7-i-

too

because

the highest ethical

are

the

life

and

Let

make

mine.

surance

duct

,'V. 7

in America is too big,

dishonest

public interest and to

name

mu¬

turn.

funds

the

good

business."

tual

ft€^^-^^qf-tigme""Wftc^~txr-requiiie that^aM>^y~-good

time of our

manager

tQ the securities sales manager to

the irresistible force of the public

"trayirrg

sales

learn that such canvasslng 1S not
insurance and appreciated by life insurance cominevitable and all
panieS) general agents and manintra-mural scrap- agers
We - too
in mutual fund

the world will

ping in

dual licensing,

and

inter

otherwise ob

salesmen.
rp

agents in the mind

securjties

asked

been

life

both

mutual funds

our

have

Lhe insurance

most

the

views

B. Burr

Edward

provides benefits and services

ship

are so closely or so thoroughthe irresponsible few who have
ly regulated in the public interest the
misguided philosophy that the

life

too? I'd
little detail,

like here to go into a

■

Dual Licensing

Sales managers compete,

your

Why?

stature

of the public;
..

They

will

deserved

its

and

preserve

■

grandchildren
too,

can

industry is to

the minds

grandchildren
surely

It is here

develop; it is
character of

friction

will

■and

cus-

that the highest

maintain

destroy the
other. My

surance.

find

salesmen

.fund

mutual

each

capac¬

life

From time to time insurance

selling and service is required of
the field men in' each industry if

own

competi-

are

that

I believe,

ity,

people

here

desire

has the

sales

But

tomer at the same time.

neither

and

com¬

tion pretty silly. First, government

themselves seeking the same

for

are

without validity;
dishonest;, they

racketeers to enter

and

prosperity

They

agencies make it pretty tough for

tive.
tive.

self; neither
depends upon

are

often

factors

Two
—_

complementary, not competi-

are

criticisms

cliche

these

more—

financial planning and these uses tries

busi-

Each

suffi¬

ness

mutual

exists;

Each

exist.

and

effort

legalized racket."

business

funds

few.

One cliche—"Mutual

pleads each has too big a job to do as it is;

other;

shouldn't be used:

not competitive." Mr.

complementary,

are

industry is doing to stop irresponsible at¬

each

and writers level at mutual funds.

rebuts cliches critical of mutual funds; and discusses the problem
of fair dual licensing in opposing sale of both life insurance and

—

cliches

they

what

uninformed

these

uses

are

more—many

Thursday, October 8, 1959

both to
J the

;v-

•

are

funds ; w,h i c h,
in. recent
months, have spread rampantly
undermine customer confidence in throughout the life insurance bus¬
iness.
They should stop.
They
life insurance.
should stop, if for no other rea¬
I
deplore
equally
the
cliche
son, because they are uninformed
criticisms life insurance speakers
who

dishonest

they

the

in the securities business

anyone

mon,

details

There

I have spoken out loudly against

Here

adequate substitute for the other," and each has "important, exclu¬
sive

stocks.
.

respective products are not competitive, "neither is an

maker their

mortality try to diversify among individual
''"

mutual funds' spokesman and peace¬

assured by

are

men

outdated

Executive Vice-President, The One W illiam Street Fund, Inc.,
"•''■•v.' New Y.ork City
■ 1 ■;

using

table.'

too.

twice

existed

was

106

1920,

time

discovered.

S.' population
In

many

the

million.

had
In

is
a

exploding
population

1950

had

Volume 190

to, 152 million.

grown

Number 5388

estimated

that

million.

What

insurance!*

market

The Commercial and

214

1980, 260

year

What

By 1970 it

it-will

million, and by the

for

cash

the

and

material

$17,800,000- of

equipment already

for.

Northern

Gas

Co.,

technological

directly and through subsidiaries,
owns,
operates and maintains a
pipeline system of approximately
i 1,967 miles of main, lateral, dis¬
tribution
and
gathering
lines
through which it., transmits na¬
tural
gas
purchased principally

one

from the Texas

mutual funds!
And
us!

what

responsibility

feed,

clothe,

for

shelter

and

provide ever-increasing standards
of living for this
exploding popu¬
lation

requires

greater

even

explosion than the
taking place. We in life
insurance and mutual funds aren't
now

ton and

the

Panhandle, Hugo-

30,

1959;

the

paid for.

Natural

(1491)

For

use

and

life

market

$60,400,000

Financial Chronicle

months

company

operating

amounted

910,548

and

330,953

preferred

tion

of the

stock,

766,000

1959

funded

8,262,722 shares of
par

progress is
in

the

those

in
to

ness

ourselves

increasing

people ip

business

insurance

sell

products
of

life

finance

nology

The

New

York

Association

Security

will

annual dinner oh
in

the

hold

Dealers

their

34th

Friday, April 8,

Grand

Ball

Room

JACKSONVILLE, N. C
Brick

have

joined

Bechard

debt;

preferred

628,675

common

and

stock,

$10.

Ltd.

of Brown
of Norfolk,

Virginia.

La Hue Adds
David Silbert

$230,-

stock;

staff

the

Co.,

Clyde
Spence

—

the Hotel Biltmore.

subsidi¬

was:

William

and

Opens

(Special to The Financiai/Chronjcle)

bert

RIVERDALE, N. Y.—David Sil¬
has opened
offices at 3635
Johnson-Avenue to engage in a

Omholt

pany,

ST.

Minn. —Arthur

PAUL,
has

been

added

Pioneer-Endicott Arcade.

and

busi¬

and

our

numbers

increasing amounts
increasing tech¬

the '

which

essential

maintaining and increasing living
standards for

ing

rapidly increas¬

our

population.

Can
But

do it? Of

course

can.

not

nearly so effectively, I
submit, if we permit ourselves to
losg sight of the real goals and be
diverted

into

the

dead-end

paths
bickering. ;

of inter-intra-mural

Do you suppose that those who
will have taken our places in bus¬

iness 20

30 years

hence will be

thai this current

aware

tive

problem
problem that

seems

tant

some

few

today to

als

business?

each

competi¬

existed—this

ever

all-impor¬
individu¬

course,

they wont. History records mat¬
of moment, not matters of a

ters

moment.
Will

•

generation

our successors a

hence

worried

censing?

Will

about

li¬

dual

they spring into

frenzy when "variable-annuity" is
mentioned?; I say No. They'll be
in the midst of providing everenlarged services and benefits to
an

ever-enlarging population.

Earlier

said

that

each

industries is sufficient
—that

neither

depends

the

itself

unto

the

other for its prosperity or for sureach

has

bility to
each

tremendous

responsi¬
Is it not clear that

serve.

his job

better if we
understand the other, respect the
can

other

sell

and

our
own
product
Is it not clear that if

positively?
start

thinking and acting this

way now, we will earn for our¬
selves
the
right to
participate

in the better insured, bet¬

sooner

ter

invested,

bigger,

pros¬

lies

right

world which
around the corner?
perous

address

*An

Agent's

Forum

vention

Life

by Mr. Burr before the
of the 70th Annual Con¬

the

National

Underwriters,

Sept. 22,

1959.

Association

Philadelphia,
""

Pa.,

Northern Natl Gas Go.
Issue Oversubscribed
&

Blyth
on

Co., Inc.

subscription
of

shares
Co.

and associates
quick over¬
issue of 200,000

6 offered

Oct.

Northern

5.60%

Natural

cumulative

Gas

preferred

stock, par $100. at par.
The
at

new

stock

redeemable

ranging from

prices

redeemed

$115
or

per-

before

Sept. 30, 1964 to $100 if redeemed
on

and

after

Oct.

each

case,

accrued

sinking

1976, plus,
dividends.
for the new

fund

the company is to make
provision on or before Sept. 1,
series,

The

earthmoving industry is one of many that are benefiting

from the extra high,

year thereafter for the re¬
demption at $100 per share, plus

strength steels created by National Steel's

continuing research.

1963

and

before

Sept.

each

dividends of 8,000 shares

accrued

the

Net
the

new

proceeds from

new

preferred

the

stock

sale

will

of
be

applied toward the cost of the
company's 1959 construction pro¬
gram,
the
repayment
of
bank
loans
incurred for construction,
the purchase of securities to be
issued
by subsidiary companies
for their costs of construction and

for other

struction
company

1959

are

the-

powerful earthmoving behemoths

advances into their
For here

are

can

operating conditions. The readily formable, easily welded

steels. The steels that
Want

equipment.

heat-treated steels that make

possible lighter weight construction without sacrifice in strength.
The steels that make it possible to design for increased payload

NATIONAL STEEL CORPORATION,

are

N-A-XTRA.

facts

oil

N-A-XTRA steels?

build major new

For details

the extra high strength,

with¬

heavy loading and impact and retain their toughness under

extreme

Steel division's
N-A-XTRA steels, the designers and manufacturers of

Now, for example, through our Great Lakes
series of

series.

without increasing dead weight. The steels that can easily
stand

how the N-A-XTRA steels

advances into your

technical

brochure.

can

help

products, too; send for

our

Write

Great

Lakes

you to

new,

Steel

build new
illustrated

Corporation■,

;

Great Lakes Steel Corporation

Department NSF-5, Detroit 29, Michigan.

GRANT BUILDING, PITTSBURGH/PA. Major divisions: Weirton Steel Company

•

corporate purposes. Con¬

expenditures

and

its

subsidiaries

estimated

the
in

require

Midwest Steel

Corporation

•

Stran-Steel Corporation

•

Enamelstrip Corporation

•

The Hanna Furnace Corporation

•

C.
the

Investment Com¬

staff of La Hue

It is up to

money.

securities
the

Dakota.

{Special to The Financial Chronicle)

Announce 34th Dinner

securities business.

points in Kansas, Nebraska, Iowa,
South

With Brown, Bechard

Security Dealers

capitaliza¬

and

company

aries at July 31,

Minnesota

and

1960

Giving effect to the sale of the
new

perhaps. But we are the moneyraisers; and the secret ingredient

$16,-

income of $15,565,824 for the cal¬
endar year 1958,
"""

Hansford, Texas area gas
Basin

operating
$138,627,831 and net

fields

Permian

compared, with

revenues

technologists; the researchers,
scientists, analysts and dreamers,

the

June

$146,-

income

net

the

and

ended

revenues

National Steel Products Company

(1492)

The Commercial and Financial Chronicle

What Canadian-American

purchase peace and friendship other commodity for which there
profligate
expenditures
for is a world-wide demand has in-

armaments,

Policies Should There Be?
Railway and Steep Rock Iron Mines, Ltd.
assails tight money policy and

supply and

money

devaluation of gold;

and (4)

Equally outspoken

Canada of the pressing interna¬

Mr. Eaton's claims of

are

condition" said to result from

our

materials.

"faltering financial

our

Industrialist urges that we cast off our crushing tax load by

her

neighbor goes broke

that

are

and

May

official

attention

monetary,

nomic
(all

breaking burden of record peace¬
time
budgets that
include
$40

and
that

affect

the

retical

that

theo¬

wnere

had
Marx, had

with

Then

con¬

attempting

even

based

Tight Money

well

overhalf

century

Cyrus Eaton

t&ctive

participation
mining and banking

industry,

first

the

role of money in mining.

dustry both

crucial

The in¬

and gener-

consumes

etes vast

sums of mtSney. At Steep
Kttck,"~Ior instance,. expenditures
lior development, production and
transportation, including the $60,000,000 investment of our Inland
Steel friends in their mine, are

now

the

over

Outlays

$300,000,000-mark.,

comparable scale

on a

being made by other mining
panies all over Canada, so

are

familiar with the end-

are

less debate that goes on in leading
industrial nations
of
the
world
cver

est

the supply of money, interrates
and
related
questions,

This subject, as it relates to Great

United

and

blinder the leadership of Lord Radcliffe in blueprinting the British

funds

their

own

posal or, if they enter the

markets,

command

vorable rates.

the

most

less opinionated

ally

and

tone than generthe super-au-

characterizes

thoritative

dicta

professional
Do

temperate

the
solitary
theoretician,

economic

Economists

number

knrf

even

was

their

feelings. I cannot rerecalling however, a
three-day conference that I helped
from

know

Nova

mortgage

dian
dian

second mortgage in order to buy

house this

have

waited

summer.

build

If he could
a

house for

can

ran

Dollar

together America

leading

ments

nJSed

infiuen-

f" tQ\u

economics
universities

Each

econo-

nadian
the

the

dollai'

have

premium on
include
the

with

causes of the present
Canadian

currency

Canadian

Govern-

as high Canadian

sup-

con-

for

dollars will cost the

mining industry
$100 million,

alone

ther

been

done

well

interest rates,

the

bidding

Canadian dollars.
a

saying,

what

perhaps less obvious

for
_

but

in-

aPnncfw'

Canada

deciare

her

tertYJ ^
)Y0U d.

waivered

has

never

the

across

American

voiced

the

complaint
capital

that

American
Canada.

Canada

her vast natural
become

the

advanced

broke,

nor

should

by and acquiesce

that are relentlessly pushing her
American neighbor along the path
to bankruptcy or destruction.
A
forceful stand on Canada's part

Washington

and

the

American

turn

the Canadian and

now

for

moment

to
the
special hardship case of
Canada's gold mining industry, a
direct victim of American govern-

unwise postwar for-

eign policy that has futilely sought

every

ef¬

taking place in the world's

Golden

Futifre

Lies

Within

Canada's Grasp

Having

sounded these somber
warning, I should like to

notes of

conclude

by reaffirming my faith
golden future that lies
the grasp of Canada and

from Great

within

vian

her able and energetic people. By

Britain, the Scandinacountries, Holland, France,
Belgium and Germany, but not to

wise management of her veritable
""
~
*
treasure

the exclusion of the United States.
In

the

have

cans

chial in

past,

been

somewhat

ening influence

paro¬

ideologies

putting most of their for-

world

stabilitv

provincial

American

respect

for £anada

tors

natural

re¬

leav¬

the conflicting
have kept the

that

turmoil,

Canada

has

power to take her
Place among the: happiest

the character of her DeoDle

' Jhe

and

influenced^v CanJda^Lrox- within her

been
and

trove

and by exercise of

sources,

true, Ameri¬

bas
I

and

for U

I only wish I could return to Regina after another half century to

affection
S

their horizons

marvelous

*Front

16th

begin with, rapid modern
transportation has made close
neighbors of most nations of the
In the second

the

see

that

advances

will have been made.

inves-

world.

most enlightened of nations,

federal

wjse dimin-

look

broaden

her

governments

talk

Mr.

Mines

Saskatchewan,

place, almost

Sept.

before

Eaton

Conference

annual

Ministers

the

14,

the

Provincial

Canada,

Regina,

1959.

Bostic Concrete Gc. Inc.

^f&Ze'ZetLmTn^to d^elo"^
ita/naturaler Jurrces and°o Indu°- Securities Now Offered
trialize
as rapidly as
possible. Few
backward lands, save Tibet remain

with

will

Syle

to poverty,
ignorance and superstition.

Co.,

Oct.

cling

half

City,

New-York

publicly offered on be¬
Bostic Concrete Co., Inc.,

$250,000 of convertible debentures
due

July 1, 1969, 10,000 shares of
A
common
stock
(limited
voting rights—par $1) and warclass

India aptly illustrates the

Not

too

Sreaf

decades

many

change.
ago, her

rants to

Tagore told me emphatically that India was happy in
P°ef

dustnal intrusion to

te,u°r

disturb

know-how. Delegations of
ment

officials

nessmen

class
able

nass

and

the

back

and

busi-

forth

purchase 40,000 shares of
stock

common

Jan.

being

are

These securities

offered

only

20 shares of class A

and

warrants

shares
at

class

common

to
A

nrice of $600

(exercisthrough

1961,

units

$500 convertible debenture,

one

govern-

private

from

Jul Dec. 31, 1962).

antient .ways-

stock

purchase
80
stock,

common
ner

unit

J rLpvmPnfnf nntlf

fnr

nav-

repayment of notes, for p y
income taxes and
for working capital and general

"essmen Pass back a"d forth be- ment of accrued

of Brazil, Venezuela, Peru, Chile

corporate purposes;
The corporation

July 8,

and countless other countries. Like

Canada> manY of them

fayette

with

huge

and

rich

are blessed
reserves

and

are

provide.
I
would, in fact, urge Canada to en-

tains, although the price of

product of

that

an¬

of the miracles

laboratories.

will

tween India

Let

many

other nation need to make
fort to learn

industrial

technical considerations raised by
and"the United
monetary experts, the Canadian States almost every week.
authorities ought to take imrne-^—What holds for India is also true

American dollars.

an uncanny

only of Canada but of

Today the statesmen and industnalists of- India are feverishly
against
American
foreign folly engaged in a superhuman endeavwould
carry full weight with or to attract American capital and

public. At the same time, in order
to stop
present severe exchange
losses, as well as to meet the many

mate¬

raw

new products and
The statesmen not

methods.

new

deny that she will have to call on
outside capital to accomplish the
job. I, for one, think it will take
far more money
than American
or

sale

hoarding

tendency to find

nation of her ambition, no one can

can

fullest

the

available
rials. Science displays

into

and

than

abundantly

develop

resources

prudence

rather

much

too

coming

natural

Like Omar

the

frequently

the United States in 1934 still ob-

ruin.

coveries of modern science dictate

Capital?

consider

*he road to utter

down

up
for her manufactures.
Meanwhile, the spectacular dis¬

open

per¬

Should Canada Close the Door to

and pushes her frontiers north¬
ward, an expanding market will

haps I am as well able to take the
objective view as anyone else.

Let

So-

As Canada's population increases

love

border,

££1^ chr°mmm' m WOrld

markets.

his native land, while spending
1T,uch of his time in his adopted

country

establish

nrinS
b kr?own tbat she
prepared
to sell iron ore, as well as ma1}-

Sson *0* Canada"
in

and

vleT

.nougni wn°se strong anti Ajner
wko

markets

have already mentioned, the

competition

else will seize Can-

relationships with her customers,
Along with the other countries I

utterly impossible. Still

fulHanswer.6"^

someone

acja's

jnl
tT^steb
a,dras.; c

delivery

wiSe,

complete
economic
from
the
United

independence

^an"aliand technical assistance to
bring their iron ore and other

straight

with the rest of the world. Other-

one might conclude that
would be well advised to

mental policy. The arbitrary and
fixed.price established for gold by

♦

»,

wberever transportation costs will

been

e" creasingly urgent factor in the
IaqA fit Iff•?
jriPtK)n disparity between the two counJf
" c,™ £ il And' aLas> tries' dollars is America's falterevery other ing financial condition, the sorry
man s
remedy led
i^iiPd

:fcytamcatehwa

permit
have

in the inane international policies

Canadian securities fur- parity between

sharpens

view, of

Competition for American Capital

Canada cannot afford to let her

Most if re-

plies of money and credit,

accounting

best customer go
she sit supinely

sound,

contrasted

dollar.

brunt of the

Urges Forceful Canadian Policy

strength of the Ca-

American

products

another weakness in the economic
is

mining industry^ ished, but

the6most SIt ?n?phty >°-f Amerie?" inYes" dia!f ?tePs to establish official

professed to know exactly

should

may '

all of his
He sells most

cover

Canadian

chief

in American

Canadian

Rpnefirial'

to
to

and

al¬
most $1 billion or 40% of the
total,
far ahead of products of forests
and farms. Mining exports
fog. the
full year, mostly to the ^United
States, will probably exceed -*$2
billion, so that, accepting payment

safe mort-

were famous ment's policy of restricting
had

Most

DJ?,oL'

what

JUi of them
of them

the

;
Paradoxical-as

fabric

long overdue change.

Cana¬

close to $2.5 billion, with min-

ing

men.

on a

farmer

premium

pays

Canadian

bears the

to outside

realize 14%

Canadian

sequent loss. Canadian exports for
the first six months of this year

governments. I
dyed-in-the-wool capitalist,

The

lumberman,

dollars
dollars

The

his growing family, he still would
have been obliged to pay 6%. The
cost of money to a similarly situ-

money

United

operating expenses.
of his product to the American
market
for
discount
American
dollars, and stoically absorbs the
difference.

Scotia

14%

and

Snnnf th^Th
of the de- quently cited
pression of the Thirties, to
bring
mists.

at home and

Canada do about

can

the

plenty.

fisherman

forced to contract for 8%

first

pitiable.

engineer

young
who

theoretical
reluctant to

tkoin

hurt

frain

private

Since

miner,

—

economists, and I

persuaded

States

business,

own

Gov-

States
is
Canada's best customer, the weakness of the American dollar costs

fa-

plight of the individual is

Denies Premium

the

How does all of this affect Can-

selves hamstrung.

have enjoyed the warm friend¬

ship of

United

investments, both

it?

Ever

Agree?

investors
would
have
than ample funds for essen-

Canada

®a^e*

Theoretical

the

ada and what

and

nuclear

wipe mankind

taxes.

could

its

smaller borrowers that find them¬

The

the

dis-

newer

It is the

investors

money

men

her

Weakness of the American Dollar

prospered, but I believe there is
much to recommend the Soviet
policy of an abundant money suppi yand low interest rates.
The
investor is not likely to put his
money into Canadian mining when

into

her

abroad,

handicap to fhe giant„established
corporations, which either have

unanimous
more

vanity

will

"will

piunged

the

of nine
less diverse views,

she

t£e

the

who subscribes enthusiastically to
the system under which I have

"bindings

American

and is distinctly
mining industry,
The policy poses not so much,, of
to

cut

America

the

monetary and credit system. Since
the
Radcliffe
Report represents

adopts

that

mind

States,

harmful

the

leaders

Canada

and

military

ernment

self-righteousness

drastic

Britain, is given considerable, at-^ated young man building a house
tention in the monumental report in the Soviet
Union, by contrast,
lately issued by a commission that is 2%. The Soviet Union charges
has spent better than two years the same 2% rate when it loans

the

tial

com¬

that
official monetary policies play a
decisive part in the development
cf this great industry.
Many

brake

can

ter'ways-fis-

mend

international

statesmen

governmental authorities, is not helpful to the general

Mining?
look

and

economies

What Is the Role of Money

Hurts Mining

policy of tight money and high interest rates, influenced by central
banks

Let

™dedto

,.ai

States

for imme¬
adoption by
the United
States are (1) a slashing reduction
in
armament
expenditures,
(2)
abandonment of foreign military
establishments and
(3) elimina¬
tion of foreign aid to enable (4) a

Against this background, I humbly state that I believe an official

United

The policies that
cry

read their books.

and

implements

diate

references

off the map.

that Carnegie, Rockefel¬
had all done pretty
without consulting the the¬

oreticians

defense

holocaust

happy

the

either

Ford

and

annum
.

oeacetime deficit in historv

Unless

Marx,

take.

can

myself

per

ever used, would annrall. Despite the crushing

WOrst

thought
well

....

?tetes- Since the economies of the

two^ most famous
the
profession,
Karl

billion
,

QmithnnH
Smith and

economists

own

clusions

history's

consoled

ler

„

camelut Sfl"; mSHIfw
J billion more than it took in,- the tertwin^eT'such^aXrTs

help reflecting

not

so-called

hilate

long since provided the classic il¬
lustration of the diametrically op¬
posite positions
that theoretical

econo¬

opinions,

ctoor

same

I could

$50

„

which, if

great

evermore

practitioners

Un¬

tbe
the

AHann
Adam

mists, I am not
going to argue
my position. I
shall simply
state

"heard

but

went."

industry,

this time.

Khayyam,
ment

fus] to bankruptcy or destruction,"

eco¬

but mining in
particular, in
my opinion, at
*

billion
for

parity between the two countries' dollars.

briefly

fiscal

considerations

forceful stand before

result of "inane international policies

relentlessly pushing
establish

call

some

And he advises Canada to take

wheels in motion for

slashing armament outlays, abandoning foreign bases and eliminating

loreign aid.

major cus-

investor,

defense and foreign poli¬

national

well

(3) disagrees with arguments against

warns

tional competition for capital and the folly of hoarding raw

cies.

low

(2) finds Canadian dollar's premium and U. S. dollar's

weakness costs Canada plenty;

become

will
as

prefers, instead, Soviet policy of abundant
interest rate;

States
tomer

military

(1)

Thursday, October 8, 1959

establish- creased in the intervening 25 years
*
;
\
V
ments on foreign soil and foreign of
prosperity and .inflation. The;
Should Canada HoardyH^r Raw
aid.
Starting with the Korean result is that gold must be proMaterials?
war, the image of Uncle Sam has duced at a loss or be
^subsidized
Thjg brjngs us to thfi companion
been undergoing a subtle but
by the government of the country
compiajnt 0f some Canadians that
steady change from the dignified where the mines are located.
I
,w
...
their raw materials should not be
portrait
of a ^responsible world have
familiarized
myself
with
exp0rted
j
think that Canada
citizen to a crude caricature of tne
many
theoretical arguments
sbouid move forward to upbuild
the proverbial
drunken sailor against a rise in the price of gold.
aV ranTdfv as "nnssquandering his money in practi- Despite all the theories, I cannot
J1... . order to fabricate a maxically every port on and off the persuade myself that it is equiSeven Seas.
table or sensible to prolong artiintQ £inished goods.
As long as
ficial conditions that discriminate
What Ails the American
sbe bas a surpius 0f irQn ore and
;
against a particular industry. Here
other mineral resources, however,
Economy?
again, a forceful and resourceful
she will serve her own highest in¬
The American taxpayer is al¬
presentation
of
Canada's
case
terest
by selling them abroad
ready groaning under the back- could set the

By Cyrus Eaton,* Chairman of the Board of Chesapeake and Ohio

American-Canadian industrialist:

iron

ore.

They want American fi-

nancial and technical assistance to

resources

then

hope

into

that

the

The
on

State

ness

present

Pipe

name

Co.,

was

La¬

Inc.

adopted

The corporation

formed to engage

organized

Louisiana

Concrete

May 21, 1958.

was

1947, under the laws

in the busi-

manufacturing

concrete

production,

products, including concfete pipe,

the

and

United

ready-mix

concrete.

'
,

Volume 190

Number 5888

The Commercial and Financial Chronicle

(1493)

[ I

would provide the investor with pared by making certain artificial rise, if inflation had
prot^tion against lnfiation^assumptions:^ that each type is the dollar amount

rODOSQl TOT iSSUSnCGOT iGuGrSl

during the life of the instrument,
they would protect his principal

-Power

professor

Federally
avers

issued

finds

timely

purchasing-power

they provide

bonds

stabilizing effect

increase savings.

review

the

cost

relationship;

interest;

and

curb

restore

stock-bond

estate

real

of the

success

rising price level;

traditional

speculation

types.

no.

setbacks

economy

longer

it is

inps
send prices tumhlin?:
tumbling,
widely believed that the

n°w

long-run trend
must

ward.

the price

level

and

Sny ffiSF
timo

yield

cLhal

equities.

cap tai.

cannot

yield

is ' needed
for the

pected

c e n

ex¬

degree

Andrews

re-

contro-

about the need to raise the

versy

rate

ceiling on government bonds
if the Treasury is to market longterm
issues
term, issues

sideration

could

savings

for

many

protected

the present trend

reverse

lead

propensity

sueeessfullv.
successfully,

no
no

concon

have

seems

been

given to the fact that bonds could

bonds were guargiven
such
a
guarantee, the government would

2
z

bond
ponds,

Gf
01

dollars ,
ooiiars,

vary

would
wouio

be
oe

Purchasing

tlhP^ovLnmin1? to
government

imim

itg

would be determined in Novem-

power

Qwn

actions

other

enough

large®

oar

The

might be sold at such

'bey

for

suited
to

wou <^

endowment

implement

range

In
par

teed
fGGt

other

funds

very

would

litical

irresponsibility.

warning

against

po-

implications of such purchasing-power
bonds might
be
very far-reaching in providing a
stabilizing effect on the economy.
The existence of a safe investment

threatened

not

inflation

dangers

the

help

would

to restore the traditional

relation¬

between

mon

stock and that of high qual¬

ity

com¬

might help to curb
excesses in the
real

bonds. It

speculative

estate and common stock markets

by siphoning off some of the de¬
mand for equities, which are now
thought of as the only protection
capital against the threat of
inflation.

probability that such bonds
be

would

popular

very

could

that the first issue, if a very

only,

long

the

npfnGt„ai ^trpam

With

fixed
no

purchasing-power
bonds
introduced on a small

to prove drasti¬
cally unsettling. In the course of
time, as the economy became ad¬
so

justed

not

the

idea,

issues

might become very large without

upsetting

any

Pension
tutional
tracted

applecarts.

funds

and

investors
such

the

would

bonds.

companies might use them
for offering annuities

basis

reliable
power to

day

at-

Insurance
a

protecting purchasing
the holder than present-

"variable

annuities"

which

dollar-amount

fluctuate

with

the

ups

stock

market, not necessarily with

and

downs

only
the

against

inflation

public fear

present

would

perpetuity

guarantee

nuity

our-

™

comna

chasing-power bonds should come
into actual existence, and in
amounts large enough eventually

for

stantly rising cost of living might
very well prove contrary to fact.

only be guessed that bids
$10 annuity, for example,

Ira

the economy, such a ccn-

Haupf Branch

In San Francisco

perpetuities could be expected to

com-

to exert their hypothetical influence

Ira
?T
FRANCISCO, Calif.
Hai^t & J^., members of the New
an¬
York Stock Exchange, Tiafe
nounced the

.opening of a branch
Montgomery Street,
Francisco, Cal.
Edward J.

office

San

Meyers
the

new

315

Resident

office

Manager

which

OVER-THE-COUNTER-MARKET

an¬

of fixed purchasing power.

Type 1 bonds, being the easiest
of all

least

from

administer and

differing
issues,
most po-'

conventional

would probably be the
litically palatable of all four types.
These

securities

marketable coupon issues
that the redemption price

would

chasing

would

fixed

power,

amount

not

fixed

NATIONAL

SECURITY

TRADERS

ASSOCIATION,

INC

pur¬
num¬

ber of dollars. The number of dol{.be

bond,

holder,

the

would

face

DICTUM

receive

value

MEUM

PACTUM

the

modified by any change

that had

occurred

the

dex. If the index had

BLS

in¬

doubled be¬

THE

OFFICIAL

N.S.T.A.

CONVENTION

NUMBER

AND

tween issuance and

maturity dates
the bond, the holder would re¬

ceive
the

200%

bond

the

upon

face

value

redemption.

Treasury
bonds

such

lowed to

high

for

principal

would

the

very

could

Type
were

might be

by the

bonds

vestors

inflation

occur

sated ,for
such

refinancing

low

undoubtedly

terms

al-

yield

THE

SILVER

ANNIVERSARY

WILL

BE PUBLISHED

BY THE "CHRONICLE" NOVEMBER

26th, PLEASE RUSH YOUR ADVERTISING SPACE RESERVA¬

TION FOR A PREFERRED POSITION.

In-

bid
their

purchasing

power.

Type 2 bonds would be much
popular, - for
though
they

less

FEATURING

compen-

command.

protection

YEAR-BOOK

The

CLOSING DATE FOR COPY IS

will

spe-

cialize in municipal and corporate
bonds.

which

perpetual

and

chaslnS P°wer. With no comparable precedent as a guide m estimati.nS what investors might be
wUUhg to pay for.such an annuity,
it can

they

In the

a con-

"^.present puonc iear oi it, as
it, as
uS tt u
c aiM*
?
^arke^spur"

SYMBOL OF INTEGRITY

preferred stock
or
British consols in having no ma*
turity date—in other words, it

obvious disadvantage to the

other insti¬

payments

non-callable

wouid

scale,

interest

Type 3 might protect
principal and the inter¬
est stream. Type 4 might resemble
the

|arg

Type 2
purchasing

the

mnnpv

stantly rising price level has been
assumed, but only to illustrate the
potentialities of the bonds as a

Treasury

bidTfnr

premium

above

the bonds would have no redemp- protection

J. ?•

purchasing

kinri

and

both

rity markets a sudden jolt. For this
should

best

qUDerior

principal.

the

power

large one, might give other secureason

the

protect

except

The

can

"wnnld^Yn0^-

having

present

mean

might

would

yield

ship

issues in

bonds

thev

definite maturity dates. Type 1
might guarantee the purchasing
power

The

medium

present Federal

turity

e r m s

In the above discussion

Instead

P<in
in

money

debt> unlike the marketabl| pur.
cbas,ng power bonds described

and

planning.

value.

are,

guaranteed in terms of purchasing
power, they would thus defeat the
objectlve
of
demonetizing
the

ideally

b®

no^er" Sirine*

offering such an issue, no
value should be stated, since

tion

are

upon
demand
and
paying interest, but also guaran¬

wjsbed^establish

first three types would resemble

bon^

redeemable

finger constantly pointing to
the impact of governmental policy
on
the price level, and, as such,

de-

that they pay interest.
Purchasing-power savings bonds,
then, would be two degrees supe¬
rior
to
money,
being not only

„s

oThfr

degree superior to

one
itself in

her in regard to an issue that had as to produce a zero or even neg¬
might range from a low price of
been marketed in a previous No- ative yield—for who knows how
$500, or 2% yield, to a high of
foe
under
constant
pressure
to vember. The October index num- much investors might be willing
$1,000 or 1% yield. The Treasury
prevent inflation which would in- ber would be compared with the to pay for such protection? Such
might then accept only the very
crease the dollar cost of servicing
year earlier number. There would a yield might result, especially, on
highest if they were sufficient;
the debt.
v
be some bookkeeping saving to a long-term issue with a relatively
or progressively lower bids could
Such
purchasing-power bonds the Treasury if interest payments high nominal rate. Assume a 20also be afTpmen as nereimmcu by
accepted,
determined
could be geared to the Bureau of were made only once a year.
year issue >at 5%.-Demand, might
'.-amount
of' cash needed or
Labor Statistics cost^4iving-'4n»~~z;
-.■—rzrw——be so ■ strong that- the winning
^
L.
dex.
dex, inasmuch as - that index is Types of Purchasing Power Bonds bj^s for eacb $1000 par might be
inasmuch as' that index is
the most accurate gauge presently
The Treasury could issue as $2000, which would mean that the
For any given year the amount
existing to measure changes in many as four major types of pur- Treasury would receive immedithe cost of living. If the index chasing
power
bonds,
offering ately as much, in terms of pur- of ifiterest, like that of Type 2
rose,
dollar amounts needed to various degrees and kinds of pur- chasing power, as it would even¬ and 3
bonds, would fluctuate in
service the debt would
increase chasing-power protection to the tually repay, including interestdollars with any change in the inby ~a determinable and
visible investor, and differing somewhat a zero yield!
The open market price of
extent. This would have the effect in
ease
of administration.
The
The
three types of fixed-ma- dex.
of

mir

cash balances, because they

fact,

the

Type 4 bonds, purchasing-

P0.1,'

rather

ConcePivabfy

thpsp

demanchor ^ash^Th

holders

sefl

issue

a mere token rate of
interest. But all savings bonds can
substitute «t least in part for cash

power perpetuities,
would offer
annually, the greatest theoretical advantages
Assume, for example, an increase in administering the debt. They
in thevprice level of 1% yearly would
permanently relieve "the
during the life\pf a}20-year 2% Treasury from any future refibond of $1,000 fhee^value.
The nancing problems, and debt in this
first check the holder would re- form would be1 permanently de~
be'
deceive would be for $20.20, the fifth monetized unless bought back by
would
be
for
$21.02, the tenth the government in the open mar$22.10, the fifteenth $23.22, and ket. From the investment viewthe twentieth $24.40, plus redemp¬

the

variations

determine by demand for cash. They

reiating

vailing rate of interest, as is true
of all long-term marketable issues*

price level.

registered
so
that
interest
checks, determined as to amount
by
the
price
index,
could
be
to

interest

also with any changes in the
pre-

given issue. What it might cost in

mailed

price leveL
The market price would fluctuate

soon as the bids were in for any

and
and

to numbers

couoons
coupons
r

occurred, for

the

What these bonds would , cost
the Treasury would be known in be issued at

practicable. Therefore, they should

undoubtedly be marketed at a very |be made once a year. For example,
purchas- the change in the cost of living

power of the
anteed.
Having

Tvoe
type

with

ulld

terms

For
ror

rise

Sfestmenrneeds

than

would

Type 1: $400 interest,
chasing-power bonds might be
principal; Type 2, $444.80 vised and
to fit
sn
interest, $1,000 principal; Type 3,
Savings
$444.80 interest, $1,220 principal.

:ssues,
floated
by
having
the tion of principal only at par.
Treasury ask for bids, and, after
Type 3 bonds, offering all the
issuance,
probably
would
be special features of the first two,
quoted on a flat basis. To serve would undoubtedly be the most
their purpose of protecting income
attractive to investors of all the
or
principal or both, these issues stipulated - maturity purchasingshould necessarily be non-callable, power
bonds.
The - demand f
though always, of course, pur- these bonds which would guaranchasable on the open market by tee the purchasing power of both
the Treasury or the Federal Re- interest and
principal might be so
serve
System. Calculations con- great that an interest rate of 1%
face
cerning the cost of living could
vahiewould
be
hieh

low rate of interest if the

ing

ments

par

effect

adverse

any

The bonds would be marketable

sate

the

plans

consumption by lowering taxes.

of inflation.
In

and

power,

counteract

rate

c o m p e n

course,

on.Jhe part of the pub-in
lie—in wnicn case
which
a
responsive
and responsible fiscal policy could

think

higher

pnnrsp

death benefits to

over-save

desirable, for
a

also,

retirement

and

low

many

purchasing

lar

issued

alcn

would

with far greater certainty. In fact,
these bonds might prove so popu-

federal

presently

wnnlri

enabled to gear

comcorn-

bond

$1,220

Mriod

20-year 2%

follows:

types

....

individuals

explain

bonds

nanips
panies

ifver

with assured income

the cost of living. Insurance

and

up¬

This

helps
why

the

existing

Since

presently

value, and that during
the life of each the price level
rose 1% each year. Then, total interest payments and redemption
price for each type would be as

would be fixed merely in
terms of dollars, not in terms of
purchasing power. But this type,
probably requiring a somewhat
higher yield than the other types,

thg economy; and perhaps,

Moreover, Dr. Andrews hopes the

gradual introduction of such issues would halt
lower

ity

advantages

various

than

$1000

issues do. Like conventional bonds,
their redemption price at matur-

By Dr. Daniel K. Andrews, Assistant Professor, College of
Commerce, University of Illinois, Navy Pier, Chicago, III.
Illinois

issued

OCTOBER 22nd.

■

(1494)

investments were in

United Serv. Planning
FT.

WORTH,

Central

of United Services Invest¬
Association; 3327 Winthrop,
has been changed to United Serv¬
narrije

Texas, Utilities,
South
West Corp.,

and

ROBERT

Tucson

RICH

able

Prospects for Pioneers

for

contractual program

boundless faith in

they do.

the future of Canada.

Vance and Shelley

brother fund

then

and

is the

thesis of these

in recent

way

that Canada

years

months ended

for the nine

September 30, 1959

Over the last

in 1952.

Product has

seven

grown

which'

Taking their statistics from estimates

natural gas production, 790% ;
If

Canada

income, 150%; population,
and oil production, 670%,.

General Fund has

the
on

60%;

New York

belated

that

upsurge

the nation

did

gas

for

in the

every

U. S.

other

and

five people, compared

with

Similar per capita disparities

for

one

three

Series is the

estate

Vance

and

Shelley

their report,* "but

surely

night follows day.

And

as many

for

ported

Natural

net

assets

from

477,032, equal to $8.37

per

$32,share,

that

A mutual fund

Send

stocks.

investing iu "growth"

for

free

booklet-pros¬
pectus by mailing this ad to

and

Aug. 31, 1959. During the recently
completed year, dividends from

Bank

net

CALVIN

BULLOCK, LTD.

Established

income

declined

18% per

NEW YORK 6

Nemours

capital gains increased to 25£

per-

the

from

20g

per

Eliminated

The

the

Southwest

and

made

National

Texas

Gulf

Pro¬

common

96.32%>

was

stock

the

invested
close

portfolio

were

ings

were

industry hold¬
electric
utilities,

29.72 %>;

McGee

gas

Oil

vertible

the period. Largest

from

Industries

4Vz %

preferential

con¬

preferred.

has

impor¬

oil and gas, 22.69% and
distribution and transmission,
11.85%.
Biggest
common
stock

out

their

feel

pay

the

which

compelled

year

made

date

within
is

they

that

make

prompt payments."

influences

investors

fund

investing

There

National GroVtli Iiiyestinent Plan

stocks

and

make

clear

prospective

investor that 50% of
his first nine payments are
being
taken out as sales commission. In
order

the

assure

understanding

tion

with

the

Planholders
and

terms

31.

Aug.

holdings
tronics

and

ally accounted more than 3% of
were International Business

condi¬

contractual plan vyifli

Equity

group

Foil

Planholder

investing pristocks

common

selected for

dissatisfied
amount

and

refund

the

total

of his

initial payment at
any time within 30 days after the

aided by these procedures

acquire

thousands

who

will

their

will

satisfied

obtain

the

accumulations

period of years."

Plans

will

securities

New
the

Armour

future income.

This jidverlisenicnt Shall not constitute

dealer for

•

solicitation in

•

prospectus of iVrite to

Check

any

•

Cenco

Co.,

of $25, $50, $100, $250,
$1,000 respectively. An

and

equal

five

required

monthly

initially to

Owens-Illinois

Prentice-Hall,
Standard
Packaging, Stanley Warner and
Unilever

inated

were

Securities

Co. "A'\
Champlin Oil

Rubber

Armstrong

Atlantic

Refining,

Refining, Colorado Interstate
Gas, Fibreboard Paper Products,
Kerr
McGee
Oil
Industries,
Mansfield

Land
Tire

Exploration,

Rubber, Martin

Co., New Hampshire Ball Bear¬
ings, Northwest Airlines, Phila-

Affiliated

Fund

qualification

Prospectus mid descriptive literature available

Common

Stock Investment Fund

of this Fund
possible long-term
capital and
growth for its shareholders.

Investment

Wellington Fund

ADDRESS

CITY

Fund

elim¬

Anderson-Pritchard

objectives

income

□

Instru¬

Glass,

un-

are

□ Wellington Equity

were

America,

Factor (Max) & Co. "A",
Mining & Manufactur¬

ing", National Lead,

Louisiana

$500

one

NAME

during

months

Co.

Minnesota

$2,500. $5,000,
$10,000, $25,000, $50,000'and $100,000
calling. for
equal
monthly

payments

offer

state in which such would he

lauftd prior to registration
v

Wellington Company, Inc.
Philadelphia 3, l'a.
cp

American

added

three

latest

ments,

and

growth of capital and

Ash your investment

Trailer

Aluminum

Oil,

available

?'B", Caterpillar Tractor,

National Growtli. Storl\S Series

possible long-

National Securities & Researcli Corporation
120

Broadway, New Tori 5, N. Y.

Machine & Foundry.

letter is sent to him

Co.

Fruehauf

offering to cancel the Plan if he is

amount

accumulation of shares of

term

"vyitlioiif

creditor lile.insurance lor (lie

Fowl
marily in

Chemical, U.

Machines, Allied

payments

14.8%;

chemicals,

were

consumer

assets

satisfac¬

and

of assets last

tions of the Plan, upon
acceptance
of
the
application from a new

denominations

profit possibilities.

95.3%
May 31 to 96.4%0 on
Predominant industry

goods,
10.8%;
elec¬
missiles, 8.2%, and
amusement and recreation, 7.8%.
Common stocks which individu^

over

income

common

Certificate

principal and current in¬
common

propor¬

stock investments, up from

benefits

for

slight

enlargement

his comments, Mr.
added, "Every precau¬
tion is being taken in the Pros¬
pectus, sales literature and Plan

Planholders

and in

was

tionate

Continuing

bonds and preferred stocks

come

5,900.

Simonson

selected for conservation of

selected

5.4%

increased

stockholders

Inc.,
6.5%

period, shares outstanding gained
3.4%'td: 964;350 and llie number ■

is
its

days

Fund,
assets

$11,795,538 and its assets per
share 3% to $12.23. Over the same

compelling

another

net

can-

payment

its-total

boosted

lished by Empire Trust Company,
It
is
my
hope that

pleasure in announcing flie

Plan.

Capital

Fidelity

31,

Custodian.

We fake

that
serve

National

new

months ended Aug.

In the three

continue

will

monthly

plan, will

Investment

Growth

for

Trustee

Custodian for the

high

first

payments

protection

acted

contractual

first

payments. Also knowing that in¬
surance

held
Empire

established

investors

charge

two

that he has con¬
to
the
present
Trust
Company,

post

-—

time.

Plan has been accepted and estab¬

a balanced

May of 1930. Mr. Simonson was
company at that

tinuously

compulsory

been

full

fund

Jefferson Lake Sulphur and Kerr

Address.

commitments

ducing.

21% per share in fiscal
but dividends from realized

previous year.

Name

Houston
Eastern

Freeport

Association, Texas National Bank
of
Houston, E. I. du Pont de

share from

ONE WALT ST.,

increased

1958,

1894

Gas,
Texas

President of the

other bene¬

force

Sulphur
Soeony Mobil Oil. There were

$38,805,007, equal to $9.67 per
share, over the fiscal year ended

numerous

when

sales

then

holdings in Arkan¬

Gas,
Transmission,

for

children's

place emphasis

due

Louisiana

National Securities
& Re¬
Corporation which intro¬
the first contractual plan

not

were

need

retirement,

and

celled

Reduced

Investment

people to
education,
fund for

R^jiort

Growth

particular interest as it
the re-entry into the field
of

marks

and

fits.

Canada^

sas

create

of time

economic

travel

hold, nowhere in the free world today is growth potential more
clearly and measureablv apparent than in

Celebrating the first decade of its
operation, Texas Fund Inc. re¬

will

Plan is

time

old-age

responsible authori¬

asset

net

duced

provide

things," point out
history of the

deductions,
at

historic point of view,

National

the

tant

ties

The Mutual Fluids

From

clear
to
us,"
that compulsory
form of
equity

pletion of payments, is

the

would

distribu¬

value.

basis.

inflation, combined with insur¬
protection on the life of the
investor which can assure com¬

persons

additional

partial offset to future

specified

alter

tions,

ance

economic development of the world the latter follows the former
as

Growth

only fund in
be offered

period

for

remain

who

reinvest all

continue

will

that
a

may

Custodian

the

with

become

over

may

exist in steel capacity

two different

which

has

because
are

million.

contractual

areas.

"Potential and realization

$460

his

permitting

assets

additional

ments

mutual funds

combined

investment

maturity until
after World War II and has only recently entered its period of
high mass consumption.
And even despite the relatively slow
growth of its population, Canada has big consumer markets still
to be tapped.
Canadian auto registrations last year amounted to
one

novel

period of seven years after pay¬
have
been
completed by

$70

Under

Planholder

the

accumulate

of the National

one

Simonson,
savings in the

reach

not

approximately

Series of

group

"It

industries, it can be forgiven. Some 24%
of the fund's assets fall into this
bracket, while such other key
Canadian industries as mining and forest products account for
much less. Still, the statistics are telling. Canada is in its pioneer¬
ing phase. There are plenty of possibilities ahead.
As Vance and Shelley make clear, the reason for Canada's

5, N. Y.

said

emphasized oil and natural

t.o the exclusion of other

44 Wall Street,

The

have

Stocks

Royal Commission, Vance and Shelley report these
the 1958-1980 period: Gross Na¬

estimated percentage gains over
tional
Product, 140%; national

scientific de¬
fund currently

newer

million and is

excess

How about the future?

Gordon

assets

Securities

170%.

of the

feature,

has

by 43%, its national income has gained 33%
and its population has increased 20%.
Even more striking is the
growth of natural gas production, up 250%, and oil production,
up

Available upon request

the nation's Gross National

years,

net

in
velopments.

engaged

value.

asset

tion given to corporations actively

back

Henry J.

death

the

payments would be made for an
eight year period.
During this
National
Growth
Stocks
Series, time all income and capital gain
distributions
would
be
auto¬
a
mutual
fund
composed
of a
diversified",group
of
securities matically reinvested, after speci-.
deductions,
in: shares
of
selected
for
long-term
growth tied
of capital with special considera¬ National Growth Stocks Series at

this side of the border.

managers

men

of the Planholder.
Under
terms
of
the
National;
Growth Investment Plan monthly

Jr., President of Na¬
tional,
Securities
&
Research
Corporation. The
plan provides
for
monthly
investments
in

has not only come
but, with the opening of the St. Law¬
rence Seaway and the continued
development of the nation's vast
resources, is facing q bright new era.
In Canada General, Fund's
annual report for the" fiscal year ended Aug.
31, Vance and Shelley
show .just how far Canada has come since the fund was
organized

long

the unpaid
the event

pay

of the Plan in

balance

Simonson

are

will

ance,

Series

Stocks

announced Oct. 6 by

was

is understandable-that

chairman and president, respec¬
tively, of Canada General Fund Limited, which is headquartered
in Toronto.
As fundmen close to the Canadian scene, they have
a strong pitch
to make for Canadian securities both "to U. S. in¬
vestors

Growth

of shares

accumulation

the

Invest¬

Growth

National

Henry T. Vance and William F. Shelley are men who have almost

Report

jointly by John Hancock
M u t u a 1
Life
Insurance
and
Columbian National Life Insur¬
written

The

inc.

insurance,

the

amount

The

Power.

ment Plan, a

LazakdFund,

up
to $25,000 in those
permitting such coverage.

ranging
states

Planning Association, Inc.

Tiie

life insurance will be avail¬
on
Plans in denominations

and

Light

Electric

Gas,

creditors'

Optional

Plan.

group

and

Service

Public

Southwestern

ment

ices

start

Texaco, Gulf

States /Utilities,

Texas—The firm

Prospectus

upon

request

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta

—

Los Angeles

Volume

190

delphia
and

Nurriber 5888

& f

Reading,

The Commercial and

Skelly

Oil

Statewide Bank

Superior Oil.

The

One

which

William

last

July

Street

absorbed

William
shares.

traded

already been

distributed

badly needed and, yet,
identity of local banks. New York University economists also

retains

undue concentration of

aver

avoided by

132,-

have

larcus

erated's shareholders.

Nadler

and

by Dr.

Jules

Dr.

"Economic Changes and
Banking Legislation in New York
Bogen,

Price

companies,

Growth

Stock

dollar

one

Inc.

value .for each

par

Oct.

Stockholders"

approved
an
iricrease
in
authorized
capital stock of the
fund from 2,000,000 to 10,000,000

fund, increased its total
assets its total net assets by

14%

had

preferred

ceivable.

53.97%

in cash and

Largest

retail

with

holding

are

«The record of the bank holding
company

Administration, New

arises,

need

been

form of organization has
favorable

quite

of at least

five-year

ex-

University, and financed by York State.
by Marine Midland
"(VI) Bank holding companies
Corporation. The authois write of wouj(j
best serve the requirements

grant given

ioq/
and

resultant

Dan King

■

°f the state's
to

operate

if permitted

economy

statewide

basis,

postwar

leaves

en<^e

the

industry

with

underwriting losses, the
companies go to the state supervisory

profit. margins piling up they
uounce^iate l eductions,
Having
ness

established the
growth one, we

an-

finance, 5.42%.

After

posed

_of New York."

wishes.
The

fund

is also offering two
reversionary trust which,

forms of

permit the investor in
bracket
taxes

trust

ways

reduce

giving

for

not

his

than

Their conclusions
Pnmiiniinn

«fT\

years,

go
to
his
children); ■> a school,
church, charity or other organiza¬
tion, or to a person dr persons in

low tax bracket.

tho

the end

2
S

the

years,

trust

returns

vestor

principal

together

full

with

the

aaaptauon

income thereafter.

intn
in

panKing

in¬

all

Vnrt

HicfnVtc

namper

the

TNpI

f!}
g
JWmla
® nnvfnr1 nf
^
xo an
c
as
g

hnrn'

ni-nfnnnHiii-

Hanirino-

The

tne

Kncinoce

cV,;fio

rUr

*be details.

During

recent

months,

Chemistry

Shares,

Inc.

available

has

Nucle¬

will

calculate

the

gain to the shareholder. This, it
is

emphasized, should be on a
ten-year basis. The gain has two
components, the increase in the
equity or liquidating value in the
decade, plus the cash dividends
disbursed in the period—of course
with appropriate adjustments for
capital changes. This total ten-

Electronics

&
made

its

European

investors

through banks in West Germany,
M. Templeton, President of
the fund, has announced.

John

Over vthe

ended

its

Aug.

nine-month
period
31, the ..fund boosted

net

and

assets

76%

its

assets

per

$13.88.

The

contractual

$6,121,808

number

31%

the

tional

gained

sharply, rising from a total value
of $12,381,936 to $17,117,300 durihg the latest nine months.

The

Board

announced

two

the

Inc.

election

has
of,

members

These
addi-

for

highly-trained
personnel

and

asset management

In-

management

crciing competHfo„ gfrom otJ"r
™

financial

institutions

solution

makes

the

problems

these

urgent

the

commercial

for

banking.

«/tttT
"(III)

adapted
nomie
_

through

•

Commercial banking has
itself

changed /bco-

conditions
a

series

degree

of mergers

that

has reduced the number of banks
the

state

banks

Governors

Exchange,

need

for

'and

re¬

changes

that

have

resulted

regional'
much

done

solve the banking problems of the

ihey serve.
Creation of regional banks has been hampered,

Elected

general partner, T. A. Richardson
&

Co.

^ -

commercial

Commpdity

Exchange,

Incfw is

the

marketplace for futures trad¬
ing in copper, lead, tin, zinc, hides,
and burlap.

rubber

self

banking to

adapt

rhanPPq
changes

future

hnund tn hernr in

that
that

thAtafp'c
States

tn,-

foi

it-

avail-

made

people and to business

enterprises throughout the

state

Ralph Gish V.-P. of
North American Sees.

earlier

Gregory Opens

SHREVEPORT, La.
Gregory is conducting

—

Louis M.

securities

provide
state's
are

(1)

revision

business from offices at 1706 Cen¬

trict lines

tenary Boulevard.

tion -of

discussed to

flexibility

for the
banking structure.
These
more

and

bank

of banking

(2)

dis-

the authoriza-

holding

companies

and

ten-

ten-year
ratio

expense

the profit

mar-

elected
^orth

wide divergence among companies. For
example for the first half of this
year the combined loss and exquite

other

writing
among

Building!

earned

invest

and

funds

managed

ment

exposure

out.

work

exposure

companies

relatively

pitB'

rtp

same

? importance
analysis.

factor

the

in a prafit mar§irl

Underwriting

Ameri

Surety

of this factor

a Vice-

Company
Russ

pense ratio
company as

Pf iodJ/Urnwd

Secuntiei

can

large

is
that

an-

Under-

carry

amount

Nf)Hh

AND

BANK

Ampri-

B. Gish

Ralph

Mr.

Gish, who heads

Analyst

London

1957

/ V-T"pnrnmnnwVamThp
vice-president in ism.
u

and' one-half years
department

Before

over

of the

con--

ratic*

all

business

things

movement

we-

consider
investment incomct

period and change in the*

stock

carriers,

practically

income

from

investments is the source of alt
cash dividends, it is obvious tha£
the

companies that do the bes>
of increasing investment im¬
come will be better able to in¬
crease dividends more frequently,
Considerable importance may bt*
ascribed to a company's ability
to increase investment income att

job

rapid rate than the averabe because of its connotation ar>

a more

to management,
as to the change in the value oj?
assets

term

long

at each yearly

hajf

yearly statement date insurance
companies adjust their
marketable assets—bonds, stocks.
mortgages, real estate, etc., to thci
market. Some services include in.
this total figikre profits and losses
or

on securities | sold. If we go back
far enough j we can get pronounced differences. One study

writer was for twenty
period that then took m
all sorts of business harassment*
war,
postwar
inflation,
Korea,
by

the

years,

etc.

And

showed

one

of stock.-*
appreciation

group

average

higher in the valuation,
Price changes of these
groups

The stocks

tests

same

two*

of stock were, respectively

52% and 223%.

„

that excelled in all

the

were

high

grades

tha*

gave us the best showing as long--

term

media.

office

under

the

Commercia?.

East

110

direction

Gordon

Toll,

Dempsey-Tegeler Branch
ANAHEIM, Calif. — DempseyTegeler
&
Co.
has
opened
a
branch office at 222$ West Center

,STtree,f;
lhe management o1,'
Harold U' ThomaSBANK
and

INSURANCE

STREET, S.W.I

ST. JAMES'S SQUARE, S.W.I

Tl ^

m the
Wells

Nairobi; Ins

Dept.: 54 Parliament

St.; Travel Dept.? 13 St. James's Sq.|-In-™
come

STOCKS

Bankers to the Government ini aden, kenya,
uganda,

Elsaesser

George G. Elsaesser, member of
the New York Stock Exchange,

zanzibar

somaliland

Branches

in:

—

Quoted

tanganyhca,

norraernmand
'

Members New York Stock Exchapje

American Stock Exchange

120 BROADWAY, NEW YORK 5, N.

lndia, Pakistan, ceylon, burma, kenya,

•

Sold

Laird, Bissell & Meeds
Members

protectorate

Sept. 28 at the age

Bought

Tax Depts.: 54 Parliament St. &.

13 St. James's Sq.

George G
vjeorge

Security Assoc. Branch
SANFORD, Fla. — Security Ass0CiateSj jnc bas opened a branch

Trustee Depts.: 13 St. James's Sq.; Govt.

Bank

away

end

two

E.C.3

peioie
VcTved

passed
of 53.

long period

Branches

54 PARLIAMENT

1951 and was made an Assistant
vfrc-Prp<;idpnt

two

vestment

Office:

BISIIOPSGATE, LONDON,

the investment department, joined
commonweaith

GRINDLAYS

LIMITED

Head

t c

over

one company maintains a
siderably
lower
expense

Amaloamating National Bank of India Ltd.
and Grindlays Bank Ltd.

Invest-

can

Where,

ences.

un¬

premium reserve to capital
(policyholder's
surplus).

NATIONAL

'
~

. -f

The ten-year average expense*
rati0 merits attention. To a great
extent a company does not haven
the measure of control over its:
ioss potential that it does over
expenses. Losses involve at times.;
force majeur, and other influ-

greatest

writ-

of 123%, while another was 183%

can

Seaboard

this week. He
V?" ^as

Pl.esident

whose

companies

are not comparable,

profit margin. On the other hand

meetings
tgs

here

Two proposals have been
i
+%

and

the

for as profitable a
SAN FRANCISCO, Calif.—DirecInsurance Company
tors of the Commonwealth group of North America usually is, was
of mutual fUnds elected Ralph B. 102.1% indicating a loss margin
Gish a Vice-President of the funds in underwriting rather than a

analytical

studied

company's

loss

95.0%,

averages

There

Far/0

widely

combined

L. M.

analysis

year

gin is 5%.

are

enonecon

part

words,

servjce wjn be

able to the

arft

omy.

'^(IV)

service,

such

were:

s!Cr cri1ne7d0r1wni
mitf it incieasingly difficult
in^roo Jnotv difficult
make

the

some

underwriting profit margin,
This profit margin is the difference between the combined loss
and expense ratio of a given unit,
and 100%, the difference being
averaged over the decade. In other

areas

to full trading
however, particularly in the New
the exchange.
York metropolitan area
by reHenry U. Harris,
Jr., general partner, Harris Up- d
district lines drawn in l934
193
A d
And
ham &
Co.; George A. Hunter,
new

privileges

between

rather than in the form of banking organizatiori that is adopted.
Statewide holding company sys*ems competing with branch and
unit banks. in each area would
Provide the best assurance that

by almost two-fifths

since 1946. Mergers have
in
the
development of

Trading Privileges
Commodity

caoital

century.-

erowine

for skilled

Comex Elects Two to

economic

quarter

past

include

10-year

programs

the

differences

^ew York."

for commercial banks

sult

banking

ings

value of assets.

analyst

The

"The public and business are top grade stocks in the field and
most interested in securing ade- the secondaries.
Quate, efficient, competitive and
Probably the most important

namie economy

"(II) Major problems have aris¬

onics,

concentration of control.

continuous

nol?r
iimf

with the income from the trust to

■

are:

income

property

less

Conclusions
-

high tax

undue

compare

have

busi-

papKing cnanges.
Inclusion of New York'City banks
considering several pro- would result in stronger holding
of providing adequate, company systems with large staffs
A
new
and
revised
"Living
competitive
and
con- that will provide a wide variety
Trust with a Spendthrift Clause" efficient,
tinuous banking service, the two 0f
specialized services to all areas
has been made available to share¬
holders of The Income Fund of leading economists conclude, in the state. The quality and scope
"Statewide holding company sys- of
banking services will be broadBoston, Inc.,; who wish to create
terns competing with branch and ened
by the development of sev- year gain may be reduced to an
such trusts for their children and
unit banks in each
area
would eral
strong
holding
other beneficiaries. The trust is
companies annual average, and this annual
provide the best assurance that competing keenly with each other, average may be related to both
designed to protect both principal
such service will be made availWidening of stock ownership and the
and income from possible attach¬
price
and
the
liquidating
able to the people and to business state
and
Federal
regulation value at the start of the ten-year
ment by any creditor, assures the
enterprises throughout the state would provide safeguards against period. This will bring out sharp
donor that it will accomplish his
banks and

Conservatively operated
cornpanies as a general rule keep exposure
low.
Also, a low ratio
makes it possible for a company

than a competitor in the samo
authorities for relief, and apply field of writings it well may behave the condition redressed, the direct effect of managerial
And when the supervisory au-„Ability and hot be fortuitous.
thorities see high underwritingi
When we moye Qver tQ tfa
.

New

York

re¬

petroleum,
6.06% and

trade,

released Oct. 5.
made under the

I1*; 9r.a?uat.e

Business

stock

common

were

was

has
study

aasRlce.s

its

been

The

stocks,

2.20%

commitments

9.36%;

State,"

stocks, 25.66%
18.17%
in

common

bonds and

the

affiliated

banking

new

the

in position to comvigorously and effectively, causing rival institutions
to improve their services also.

pete

Dr. Jules I. Bogen

Nadler

Marcus

Aug. 31. As of that

date, the fund
assets

$34,469,406

establish

where

companies

balanced

months ended

rpciiitinf*

Stocks

^-and-out? are pot the same as to expand writings if it is deemed
2,.,e companies.
to be prudent. This 1 exposureFirst, it is well to work on the material should not be used to

'Dasls

nrnhioms

this

confine

economte

Banks

net

ness,

banking

facilities
Co.,

"(V) The bank holding company form of organization would
provide a solution for many of

ices

shares.

Securities

areas

entire state.

Let

Insurance

fire-casualty busigroup's accounting

have

Nation-Wide

large

serve

—

stock

outstanding at the close of

business

would

look for?

efforts

our

insurance

perience and preferably one of
banks would remain autonomous l"en
ycaifc"
*s Realise the
entities, but their capital, man- insurance
business being deli1 agement and
other
problems nitely a growth line of business,
would be solved by their joining alW jpri<:
experience is largely
| holding company systems.
meaningless. In most cases rates
I
"A holding company,can pro1
,e a
ai
f.s are es~
vide capital needed by its affiltablished on a four-to-five year
iated banks to expand their serv- span* Thus, when a rate experi-

will distribute two shares of stock

that
the

the

does

analyst

from

T.. Rowe
Fund,

What

the

In order to bring the offering
price of its stock more closely in
line with that of, other similar

investment

This Week

control, via the holding company, can be

widened stock ownership and State and Federal regulation.

business research study

Fe<

B. WALLACE

provides a stronger banking service

ing;

Holding

Street

These

BY ARTHUR

Bogeii upholds extension of holding
company principle on the grounds that it is superior to branch-bank¬

ofr Delaware,
For
the
$1,759,919
assets
of
Federated,
524

Bank and Insurance Stocks

Study by Messrs. Nadler and

Corp.

One

Holding System for

the

assets of The Virginia
and
Delaware
Corp., has pur¬
chased another personal holding

Federated

(1495)

New York Favored

Fund,

$1,037,000

company,

Financial* Chronicle

^anzmar, Uganda,

southern Rhodesia
^

Telephone: BArclay 7-3500
Bell

Teletype

1-1248-49

Specialists in Bank Stocks

(1496)

The Commercial and Financial Chronicle

News About

from

NEW OFFICERS, ETC,

Banking Depart¬
its capital stock

1 $3,100,000

620,000

REVISED

State

increase

consisting
the

value

par

of $5 each, to

CAPITALIZA TIONS

$3,320,000 consisting
664,000 shares of the Same par

Mr.

given "approval by the

was

ment

BRANCHES

NEW

Y.,

New York

CONSOLIDATIONS

value.

has

Dana

with

been

of America since

1922 and

SOCIETY

bank

new

branch

opened

was

temporary quarters in Woodside, Queens, Oct. 5 when The Total
First National
York

City Bank of New

establishes

at 53-11

its

Broadway

81st

branch

Northern

near

the

electronic

use

equip¬

Last

spring First National City
branch

Rego Park

trailer

pending

the

until

formerly

was

the

bank's

ready for

market

building is

new

at Northern

occupancy

THE

MARINE

pro¬

complete

right

banking
service
to
these
growing

Total

away

ager

banks

Govt,

the

branch.

new

the

bank

for

has

years,

much of his career having been
spent with the branch organiza¬
tion in Queens.

Grady
in

Company

and

New

President.

has

been

York,

was

program

Assistant

since

1956.

1948
Vice-

Sit

BANK

Cash

holdings

80,212,279
discounts

profits.-

Cash

holdings

continue
ecutive
ment

senior

account

ex¬

handling personal invest-,

accounts.

41,067,986

3,726,804

BANK

Manufacturers
New York,

ace

Trust

due

and

banks

Innes

sistant

joined

Secretary
is

Innes

the

bank

appointed

was

assigned

Brooklyn Trust

1955.

the

As¬

Mr.

TRUST

COMPANY,

Deposits

CHASE

—

33,130,603

33.13L688

90,152,703

profits..

1,863,528

ft-

Bradford,

June 30, '59

Total

resources. 7,933, 205,171

Deposits
Cash

6,967, 501,097

______

banks—

Govt,

1,860,342,192

1,902,792,164

se-

holdings 1,237,780,494 1,379,789,639

cur.

Loans

discts. 3,851,400,230 3,770,838,031

Undivid.

profits

86,116,870

CHEMICAL

CORN
OF

79,478,104

BANK

June 30, '59

Total

Cash

3,449.509,100
3,049,723,114

due

and

from

4,140. 956,972

Undivid.

discts.

875,695,457

New

473,971,195

2,169,068,481, 1,635,685,623
62,997,138

■

52,068,653

GUARANTY

COMPANY

OF NEW YORK

Sept. 30, '59

June 30,

'59

Total

resources

Deposits
Cash

Loans

760,514,724

holdings
&

Undivid.

609,118,431

703,831,645

discts. 2,024,044,161

1,984,116,036
91.803,971

94,851,812

profits
*

BANKERS

rector

Yrust

President

elected

was

the

and

1936.

Dec.

Di¬

company

TRUST COMPANY

Sept. 30, '59

new york
June

30, '59
$

Total

resources

Deposits
Cash

3.006,165,989

2,633,503,928 2,656,615,528

and

due

banks—

from

3,029,684.981

Govt,

812,730,461

770,186,655

10,

1951,

retired

was

the

Dec.

31,

Loans

401,217,445

505.481,163

discts.

1,558,205.493

1,524.439.154

profits

78,095,723

74.229,225

Undivid.

Mr.

Loan

Trust

Chicago,

Sept.

with

Pullman

Sept., 1957. For 37

years

tinental

Illinois

certificate

Chicago,

Illinois,

Bank

capital

stock

Bank,

them

The

Union

Manhattan,

itst

common
$175,000
to

from

$350,000 effective Sept. 25, (Num¬
ber

shares,

outstanding:—17,500

value

par

$20).

stock

elected

was

America,

Francisco,

Mr.

Baker

heads

the

Bank

Calif.

Los Angeles

metropolitan district for the busi¬
*

:'fi

Bank

State

Bank

Y.,

Sept.

given

was

Albany,

approval

by the New York

State

Department to increase
capital stock from $5,033,700

its

San

Francisco,

Calif.,

selection of three officers for

the

new

Senior

post

Vice-

was announced Sept. 15
by S. Clark Beise, President.

New

title

official

com¬

National

Tacoma,

the

capital

stock

common

value

par

$12.50

each.

Board,

consisting of 503,370 shares of the
par value of $10 each, to $6,633,-

Expands Facilities
NEW

ORLEANS,

Labouisse, Friedrichs and
Company, New Orleans invest¬
ment banking house and member
Exchange,

have announced the formal open¬

cated

offices lo¬

new

Carondelet

211

expanded

quar¬

entirely new type, of
electric sfock quotation board, the
an

kind

its

the

sales

the New York Stock Ex¬

change

and the American Stock
Exchange. The board will have

The

legibility. 7-"

State

value.

board

second

Department

increase its capital stock from

each,

265,844

consisting
the

par,

value

260,369
of $25

$6,646,100' consisting
shares

the

same

of
par

Value.

reached

which

Carondelet

main

private

from

the

this

the

Maritime

floor

offices

partners

may

reception lobby

Street

elevators

Building. „On
the

means

Vice-President Keath

also_

are

and

the

re¬

search, municipal and trading de¬

located

For the convenience of

the

floor

ground

The

four

Presidents
man

and

Executive

new

together

of the

Board

with

Street.

Vice-

Chair¬

Jesse W.

Tapp,

basement

full-size

the

firm

has

for

the

Mohawk

the

island

Partners

the

who is

Durand,

succeeds

returning

new

Authority.

Executive Director has

development program for many
In addition to serving as

years.

Controller

for

Economic

the

firm

John

Howard,

the President Roland Pierotti

the

The

bank's

..newly

Corporation

Managing

appointed
are

and

com¬

Com¬

Senior

R. J.

Barbieri,
Bank Relations,

was

are

Division

Commonwealth's

the

Planning Board.
graduate of-both the Univer¬

sity of Puerto Rico and the Uni¬
versity of Chicago, Mr. GonzalezRamos

last

Puerto

represented

year

Labouisse,
G. Shelby

founded

Trust

Company
Valley, Utica,

1946

Planning

Inter-American

the

1950.

Mr.
1925

Carver
and

joined the bank in

following

extensive

With

Mr.

Diaz-Hernandez, newly ap¬

Puerto

vious

tration

EDA's

headed

since

Rico

this

Economic

Development

in San

Danielson

Inc.,

bilities

administrative
at

quarters.

the

Los

responsi¬

Angeles head¬

Washington

with

merly with

5856

Road.

Walton

the

Adminis¬
was

with both the Economic Stabiliza¬

tion Administration and the Gov¬
of

ernor

Rico's

Puerto

Office

Statistics. Mr. Diaz-Hernandez

of
co-

authored "Gross Product of Puerto

Rico,

1945-1946,"

"Net

Income

also

wrote

Puerto

Rican

and.

of the

Economy, 1946-1948."

He holds

ministration

in Business Ad¬

Degree

the

from

Wharton
an

hon¬

graduate from the Univer¬

orary

Phillips

North

was

addition

promotion,

enue

producing

include

Port
for¬

& Co., Inc.

and

Industrial

Rum

other

EDA rev¬

programs

Tourism

keting.

and

the

Mar¬

H. J. Steele Go.

Pittsburgh

Haines

Wis. —John

now

Pre¬

with

Juan, lectured at the

PITTSBURGH,

(Special to The Financial Chronicle)

Securities,

Rums

1957.

served

University of Puerto Rico and

Phillips Sees,

MILWAUKEE/

Lima,

Association

Peru.

Howard, Labouisse, Friedrichs &
Co. and merged with Weil & Co.
in

annual

Rico at the second

meeting

Alvin

Nolan

Browning, Loans in South¬
ern California, and D. C. Suther¬
land, Loans.

De¬

velopment Administration, he has
been Chief of the Capital Budget

sity of Puerto Rico.

the

and

the

vault

bank

custody of securities.

Executive

Vice-President, H. M.
Bardt, W. J. Braunschweiger and
Lloyd Mazzera, and Assistant to

the

plant

than, one-quarter

visitors

School of Business and is

branch experience assumed senior

Midland

wart.

lending
Marine

high for Puerto Rican rum

new

velopment,

located

room

floor

for

records

new

Master's

prise

Sept. 28 by'^me New

Banking

136

pointed Director of Industrial De¬

Vice-Presidents

$6,509,225

million
a

three

Rico:

affiliates,

color bars and large numerals for
maximum

approval
to

Puerto

A feature of the

ters

The firin

campaign which last fiscal year

established

Street.

Chairman.

par

been associated with Puerto Rico's

La. —Howard,

Weil,

ing of the firm's

Executive Director, he will direct

The

mittee of which President Beise is

consisting of 663,370 shares of
same

Los Angeles and Miami.

cago,

of the Puerto Rico Ports

Security Trust
Cchnpany of
Rochester, New York, w^s given

the

marketing promotion. Puerto

to Puerto Rico to become Director

Howard, Weil Firm

Walter
H.
Weil, Jr.,
Friedrichs, Paul T.'Westervelt, F.
Hunter
Collins, Jr., Thomas C.
Holmes, Jr. and Forres M. Collins.

700

development

Rico maintains "Bootstrap" head¬

Rafael

Vice-President, highest customers the securities receipt
office next to the and delivery department and the
and
Chairman
of
the bookkeeping department will be

were

four

industry, rum/ tourism

programs:

sales

bank

President

include

operations

York, and branch offices in Chi¬

with

Washington,

Common¬

stateside

Washington,

of-

with

island

the

oversee

wealth's

quarters at 666 Fifth Avenue, New

$5,525,062.50. The
effected under the

and
of

appointments to the post of partments.

Executive

will

Mr.

into

$5,600,062.50, divided into 448,-

005

the

Appointment of four Executive

and

$100,000,

was

charter

development department.

ness

the

South,
which will reflect instantaneously

Vice-President

San

merger

Bank

Washington,

stock

mon

first

Baker

Controller in
Gonzalez-Ramos

EDA

Juan,

which

of the New York Stock

increased

Kansas,

office

the

San

and

con¬

dividend

stock

National

Direc¬

Diaz-Hernandez as
Industrial
Develop¬

since

Vice-President.
*1*

issued

was

curity State Bank, Everett, Wash¬

National

Director

Executive

Illinois.,

Bank

and

tor

Comptroller of the Currency ap¬
proving and making effective, as
of
Sept. 18, the merger of Se¬

27,

Delaney, 68, had been

nected

since

in the U. S.: Juan Gon¬

program

zalez-Ramos

Formerly
Merger

Senior

Sept.

away

years

America

of
*

Washington,

Pullman

ment.

National

value $20).

than

Bank

been

1947.

Tacoma,

stock

Juan Gonzalez-RamosJ. F. Diaz-Hernandez

Carver, Frank M. Dana, Louis will have access from Varieties
B. Luridborg and Samuel B. Ste¬ Alley as well as from Carondelet

se-

holdings

with

and

has

cur.

for

shares outstanding—

Bank,

passed

March

Vice-Chairman

Board.

York

banker

President

Bradford

963,890,933

se-

Sutherland

Vice-President

banks..

Govt,

cur,

3,334,011,968

due

and

from
U.

012,579 4,044,999,163
3,823/

—3,135,!
975,338

Mr.

the New

York

TRUST

capital

Delaney,

with the

career

from

1926, most of it
Los Angeles headquarters.

in¬

111.,

$800,000 by a
dividend, effective Sept. 24.
par

the

Browning's
dates

America,

came

Banking
MORGAN

Francisco.

bank

Trust Company in 1919 and
in 1927 he joined the old Farmers
Loan
and Trust
Company as a

Bradford

805,415,697

532,689,008

profits

Bank

se-

holdings

Loans

City

1956.

banks—

Govt,

cur.

the

for¬

Company,

Trust

elected

3,610, 441,881

resources

Deposits

Bank

40,000 shares,

heads

and

and Bank Relations
department at the head office in

elevator from the

1934

YORK

$600,000

1915

Vic e-P residents for Bank of

Mr.

Sept, 30, '59.

Vice-

and

now the First National City
Company, died Oct. 6 at the
age of 67

EXCHANGE

NEW

retired

Board

York,

7,134,234,194

National

common

Trust

due

and

from
U.

8,053,250,556

the

President

Farmers

its

George

since

Corporation

ington, Everett, Washington, with

1,832,296

Undivided

Mr. Barbieri has Been with the

bank

Waukegan,

87,235,9.71

NEW YORK

Sept 30, '59

28,876,052

security

Chairman
BANK

Citizens

Waukegan,

discounts

<fc

Lindsay

MANHATTAN

YORK

NEW

:____24,853,500

Govt,

Direc¬

152,992,890 152,380,843
136,149,382 136,726,745

holdings
Loans

•!»

BANK

from

due

and

the

Chairman of the
*

uni¬

since

common

Senior

NATIONAL

resources—__

mer

THE

2,430,198

Sept. 30,'59 June 30/5.9
Total

to that he had been with, the Con¬
47,301,451
83,079,176

87,736,876
2,710,871

profits—

Bank's

Office.

24,142,023

47,292,796

STERLING

banks

and

security

Cash

Mr.

19,416,545

discounts

THE

171,842,128
152,418,228

Tazwell

Board

board.-

Savings

June 30,'59

an¬

from

_____—

U. S. Govt,

Company,

Flanigan, Chairman of the

YORK

145,054,658

is announced by Hor¬

Board.

1935

NEW

Vir¬

Copley,
Jr.,
and

member

General

tors, will act

Consultant

NORTH

169,675,877

resources....

Deposits

Loans

Assistant Vice-President of

Sept. 30/59

Cash

bank's

Mitchell,
Redford.

charge

••t

AMERICA,

Total

Walter

from

coun¬

Rich¬
of

President,

3,241,723

COMMERCIAL

Appointment of Gordon W. Innes
an

86,045,038

profits..

Undivided

51,377,722

87,478,382

•__

South
Bank

Clarence

are

Bank

for

Carington, III,

stock

1949

America

sel

Mr.

been

Directors, on

of The

(Number of

holdings

42,220,213

security

discounts

re¬

will

They

The

Francisco,

bank

Vice-President

San

have

created

Oct.

Herbert

new

the

versity development.
Mr. Stewart was general

•/

Bank

nounced

from

181,081,322

49,898,803

Govt,

Loans

from

due

and

died

Richmond, Va., Herbert C.

creased

banks

board

177,023,799

Deposits

newly

201,328,349 206,930,69s

resources....

Bank

mond

NEW YORK

$
Total

serve

BANK

Mr. Wiedeman joined the bank in
1937
and
became
&n
Assistant

6,748,679

7,140,770
*

NATIONAL

Sept. 30/59 June 30,'59

portfolios of institutional accounts.

1954r

98,492,7.70

287,991,950 271,021,788

GRACE

Thomas

security

165,085,632

from

due

Govt,

577,237.321
503,635,296

127,692,588

and

banks
U,

businessmen

named

542,891,063

Vice-President of

National

Three

Moseley,

June 30/59

468,243,639

resources

Deposits

main in charge of the investment

Vice-President

YORK

NEW

Total

Bradley Beach,. New Jersey,
Oct. 3 at the age of 68.

the

San

olfice
to

1947.

ginia,

sf:

Sept. 30/59

Undivided

will

13,899,092

di¬

Trust

Hoyt
Ammidon,
Grady joined the

Mr.

training

President

Vice-

States

116,640,271
303,547,045

14,719,057

profits

Frank

investment

United

announced

bank's

the

elected

were

Presidents

vision

and

117,889,013

discounts

Undivided

Wiedeman

193,622,894

315,173,833

—

Undivided

Loans

Frank,

651,902,658

security.

man¬

175,404,117

First

the

90,580,783

discounts 221,977,200 220,319,947.
profits—
1,754,825
1,6.24,979

Undivided

Alvah Woolley,

"565,108,610 577,488,908

i" holdings

Loans

42,114,192

94,249,026

from

due

and

THE

Williams

the

been with

CO.

638,407,734

resources

Deposits

neighborhoods.
John

TRUST

YORK

•Cash

42,261,893

security

MIDLAND

NEW

Loans

instances

27,873,421

two

Stanford University where he was

holdings

Sept. 30/59 June 30,'59

ters

both

29,328,343

958,089,426

Boulevard and 51st St. next year.
The reason for temporary quar¬

vide

discts.

profits

Undivid.

comple¬

a permanent
quarters. The
Woodside branch will be located

what

Loans

head
came

__—— _

Govt,

named

Mr. Lundborg, executive officer
business relationships at the

376,468,634 373,440,156

banks
U.

from

due

and

Develop¬
(EDA) has
top officials for 'its
Bootstrap" promotion

for

Deposits

470,618,970
412,635,951
868,306,530

se-

tion of
in

387,998,390
377,118,915

banks__
Govt,

S.
cur.

Economic

Rico's

Administration

ment

"Operation

414,538,.142 409,402,760

resources^

Cash

holdings

from

Total

•

due

BANK

OHIO

In Promotion Drive
Puerto

ment.

Sept. 30/59 June 30/59

1,885,675,541

1,639,294,060 1,677,146,752

and

Cash

Boulevard.

opened

1,869,377,489

resources

Deposits

NATIONAL

CLEVELAND,

June 30, '59

Sept. 30, '59

Puerto Rico Names

cur¬

operating procedures, he has for
the
past 10 years been closely
identified with the bank's, move

YORK

NEW

COMPANY,

trust

irving

•*

Bank

coordinator of the bank's
activities.
A
specialist in bank

into

../'.

■

Thursday, October 8, 1959

rently

'
•

Steele

Bank

Co.

Pa.—Steele,

(formerly

Co.),

First

Fauset,

National

Building, has announced the

change of the firm
Steele
of the

name

to H. J.

Co. and the continuation

firm's

business.

Volume

190

Number 5888".

The Commercial and Financial Chronicle

Automated Savings and

tronics, small banks in

Mortgage

Operations

radius

Dime

100-mile radius of

Forty
tellers,
entering
savings
deposit transactions at the same
all

can

transactions
the

complete

their

seconds,

tronic

instal¬

lations,
35th

"The

annual

national
vent i

con¬

o n*

NAB AC,

Associ

1960, when the

Institution

be in¬
stalled at the Union.Dime Savings
Bank in New York City, is to be
functioning one month after that;
and the third, scheduled for' The
Society for Savings in. Hartford,

the

Newark, N. J., will have the first.

dele¬

gates

savings will
reality in this country,

he added, in June
Howard
Savings

com¬

puter

The

tion

for Bank

system,

secpnd

Au¬

J. Live¬

President, The Dime Savings
of
Brooklyn, "that speeds

improving all the time."

was

tages

and

line"

and

follows:

for

savings

bank

differences

the

"Under

line'

'on

being posted, the memory storage
in

system such
Howard

the

computer is brought up to
date automatically, the balance is

checked, and the account searched
for a
'hold' condition.
Further,

'no
transmitted automatically

tion

window

operation is not

inte¬

gral part of the computer opera¬
tion.
The passbook is posted at
the
window.
Later,
through
cards,

paper
some

vice, balances
brought up
is figured, and
are

Mr.

tapes,
punched
other input de¬
in the computer
to date, interest

on."

described

Livesey

specifi¬

cally the system devised by Telethe

fected

system

reservations in
rail

which

Corporation,

use

per¬

for ' travel
by major air,

steamship companies.
about
signatures?" Mr.

and

"How

"The Teleregister

Livesey asked.

Corporation
has
developed
an
reproducing in each pass¬
book
a
'scrambled'
signature
which can be reacPonly through

idea of

special apparatus at the teller's

window.
"This
the

has obtained
the supervisory

procedure

approval

authorities

submitted
ufactured

whom

has

been

is now being man¬

...

the LeFebure Cor¬
the 'scrambling' can
bank to bank so that

poration
vary from
.

bank's

one

will

not

bank's

sig¬

apparatus
another

'unscramble'

natures."

"will

pointed

Livesey

mortgage operations
dled

through

the

out

can

same

that

be han¬
computer

"A complete file for 8,000

system.

mortgages

carried

can

single 2,400 foot reel . . . the
computer is capable of accepting

rors

to
.

it pass

that

mortgages, totaLmpnthly

"on

line"

<2%|hours."
for
Livesey

compm&rs,

banks,

Mr.

pointed out that computer service

agreements

center

worked

out

cessful, with

and

could

had proven suc¬

many

systems,

Mr,

will

not

persist in

Livesey

said

treasury

here, Mr. L

y sa

the nature of an off-line
.

additional

will

lion is

Addi-

will

refund

reiuna

Reserve
rveserve
in

Investors, Inc.

offered

$12.50

public

its

Oct.

sale

500,000

stock

common

sold

by more than 30 security
dealers throughout Tennessee and
surrounding states and New York,

including
firms

stock

many

operating
The

basis-

Government
^overimieni;

and
ana

new

raising

money

restrictive
money
conditions will prevail.

credit

and

The

concerned

Best

in its October
raising
operation

money

went

Exchange

the money

with

the

intermediate-term

Commission
and
Blue Sky
Division of

the

sector

short-term

the
area,
when
they
offered $2
billion o f tax
anticipation bins due June 22,

other states where

the deaiers may offer the stock.

The

tp
Tennessee

with

market,

well

Aug.

authorized capital of

use

obligations

and

short-term

with

long

due

the Treasury will be coming into
the market,
th

,15,

yiejd

high

available

now

which

short-term

intermediate-term

and

Governments

that money which would
ordinarily be available for invest-

means

ment

long-term

Governments

being put to work in the first
issues.
A Treasury
note

named

CrZr<FZ n? Aug C9ft1 1958 1960months$2notes due0f 4 years due in 4
a!?J 28 iSw 10
and
billion

•

Possible Investments

desirable and

Treasury

beennew

and

not-+be or
a

deposits

Purchasing
power.
This
is a
favorable development as fa* as
the economy and the Treasury is

New 5% Note Well Received

cleared for sale by the Securities

Tennessee

that therG
further increase

Then

aecounts.

further,

exchange
national

have

with

This would

shift in deposits

De a sni" in deposits, lnis wouia

refundings, no change in mone- date as it is possible to sell so
tary policy is looked for.
Until that there will be longer in¬
tbe inflationary pressure subsides tervals between the times when

The stock will

announced.

Bank
oaiix

tment

ment's

share, Lee Davis, Presi-

dent,
be

for

the 245-day bills are

January of 1960, new money will middle-term
government
issues
again have to be obtained, after with yields which are attractive
which the Treasury will be out to
buyers
indicates
that
the
of
the
market
for a
period of Treasury is able to raise its funds
time, aside from refunding opera- without resort to the long-term
tions.
;
or'capital market. To be sure, it
Even
in face
of the Govern- is
always desirable to put out

Com. Slock Offered
shares

the public,

held by

the balance owned by the Federal

op-

Tenti. Investors Inc.

well

raised.

Treacnrv

;Le ^onev market
market
money

Tennessee

note

i° me extent xnaitne o /o note

+•

TRM-

To the extent that the

has

^ears and 10 months

prior

call

date

the

and

best

rate

The

line"

"on

leases

also

system

re¬

permits
flexibility
of
layout
and
"will
undoubtedly
revolutionize bank
costly floor

of the

architecture
The

space,

future."

$10,-

1964. The tax bills were definitely

credit

°0°,000 of $1() Par value common
Discussed

expected by the financial district,
on the
other hand the 5%

particular attraction for investors.

stock, being the first in Tennessee* while
to be organized under the Small notes
Business
It

Investment

first

the

also

Act

and

1958.

disadvantages, Mr. Livesey
include

stallations,
of rental

the high

cost

purchase, the periph¬
eral equipment, the high cost of
labor Wservice such a system, the
inability
to
handle
exceptions
not at all, the lack

visual

records

disadvantage for
bank business.
the

processing,
bank

in the savings
we" are only

have no savings
experience upon

draw.

licensed in the nation
which is organized with the statecompany

added

are

"dual"

said,

Livesey

Mr.

except

machines

that all electronics

but

drum

are

storage.

coping with the high cost of

computer installations,

listed

sey

"where

these

areas

electronic

Mr. Live¬
as
those

data

proc¬

essing system will present a real
for savings: machinery
purchased, office equipment pur¬
chased; earnings list on monies
invested in such machinery and

potential

rented,
over

time), stationery and miscellane¬
supplies, telephones and space.

ous

"But

tions

about

what

auaUfy for

ajso

opera¬

your

computer will stabilize capital
expenditures and personnel re¬

quirements
.

expanding

costs

especially
permits a new

economy,

construction

present

branch offices

new

since the computer

lower

the

much

value

re¬

ceiving timely reports that permit
decision-making
based
on
live
facts?

Additionally,
three

two,

the'Federal

oroceeds of the

The

usage

even

why

can't
you

five

funds

needed

would

one-year

part of the package

Shay, Bait. Mgr. for
Goldman, Sachs & Go.
BALTIMORE,
has

been

the Baltimore

Livesey
is

Banks

said that because
problem to elec-

Shay

Md.—David

appointed

manager

office of Goldman,

1^7 wit^aT^ong^a
io^pb

1°

iblp

circumstances,

existing
therefore the

Mr.

maturity

Ju ,inriZ

until

and

the

Maryland
Casualty Co.,
serving in the
company's in¬

means

aPPeal to investors as this rate

in order

Treasurer

completely un¬
expected by the financial district.
The 5%
note definitely has had
was

Shay
recently

Assistant

was

of the 1964 note

use

di¬

vestment

its^ lendfng operatfons is the highest return that has
aTso e/iibfe to Lrrow from been paid by the Treasury since

toexpand

Bis

has toad!

years

an^ doubt but.

of the

loans to small busi¬
nesses to supplement bank credit.
The corporation may borrow ad-

vision. " Prior
to that he

was

government for re-lending
As a Federal licensee
this private
corporation will be
subject to the regulations of the

rne iyzus-

InGovSennor Buford" EUingtofof

City.
agaip used by the Treasury in its
A
1951
graduate of the Uninew money raising- which means
that the commercial banks acted versity of Pennsylvania's Wharas underwriters for the new issues ton School of Finance and Corn-

the

purposes.

iatioi^
state

overah

assist

exoansion
expansion,
banks

toto

signed
signed

to'

last

^ law last

purchase

stock

extent

same

th«

Tennessee

State
state

to peimit

permit

nSl

teram!

banks

the

firet

state banks to instate banks to in

directly in this program.

the

not

the

buyer

whjch relieved
this job. Also,

Qn|rs

has

likely

short-term

the

Coast

the

indicates

that

Stanley L. Miller has become as-

continue

sociated with Truman, W^asserman

sector

the

money

Inc., 70 Pine Street, New
City. . Mr. Miller was formerly with the Federal Reserve
Bank of Hew York and the Em-

for

Governments

foreseeable future, which

Truman, Wasserman

probably

pressure

strong

market.

will
this
~

Co.,

All

Addition

According to

Money

Supply

sizable

buyers

institutions

oMhe

SWtXK

and still is very important pur-

.
.

chases of this issue by

individuals

Vice-President

(the small investor) with an im-

Allyn and Company In-

portant amount of the latter funds
coming out of savings banks and

corporated, with headquarters in
City, passed away Sept.
27 at the age of 79.
New York

newspaper

turned

commercial banks with savings
deposits. The return of 5% is still
ir

United

the

friend restates

for

Tvnat,

rehabilitation, led Merrill,Lyncn
to seek out Lt. Shay on his
ff

and °"er bim ms

securities

release

fi st iob in the

business.

reports, net only

were

Trust Company.
Allan lJ. Converse

taught in U. S. economic
corporation finance, and

York

himsei£

Th0 course that he

history,
not been and there is
investto be any shortage of ing, when publicized in a West

Treasury

there

pire

Smith in New

Shay

wjth thg uItimate invest0r merce, he served as a platoon
eventually obtaining either the leader with the 65th Infantry
Regiment in the Korean conflict,
Shay was captured and imtions- The 245"day tax anticipa- prisoned by the Chinese comtion biI1' being a discount obliga- munists. While a POW, he helped
tion- puts the setting of the yield organize a school for fellow pris-

ill

Slanley Miller Willi

David

was

^uLol»/foftle biIls or notes when they are discapltaf and surplus to th! posed of by the deposit institu"

bank's

vest

Lynch, Pierce,
Fenner

account

loan

and

York

companies

sp.t

tax

Short-

Sector

Term

The

busfness
law

with Merrill
Continues

Pressure

lesis-

sponsored

who

Tennessee

distance

nearly

However, there never has been Sachs & Co., 300 St, Paul Place,
it has been
what the .Treasury
announced.

hcense

sall

long-term

Allan D. Converse,

basis?"

Smaller

Mr.

Treasury

along with

Come

obligation,

being offered will give the
corporation a capital and surplus
of $6,2
million for the purpose
of
purchasing
investments
in
small
corporations and making

join forces and share the expense
of a computer system upon a pro¬
rata

for

with

bit

deal> and in this way would connew money raising to the
near-term end of money market,

fine its

the next 10 years, when

over

that the

experts

participation
of
a
group
of
independent
banks.
Forty-two banks and 20 Individuals purchased the initial 29,000

ditional

time"

factor,

"final

Since

computer

"Down

also

and

doorstep to electronic data

which

were

efficiently,
of

1964

SUrprise.
It
had
been
the
opinion of most money market

in¬

noted, of "on line" computer

due

available

SBI

only

wide

firms already.

approach to "on line" savings

bank

errors

Pointing out that RCA also had
an

and

equipment, will not
the important fact

Disadvantages

type

For

er¬

error

record."

the

mortgage and policy of the bank.
It is estimated that for a portfolio

smaller

this

undetected.
controls

code,

one

human

10,000

necessarily

checking

let

Livesey

than

furthermore,

built into the

levels

of 25,000

make

will not

Mr.

electronic computer,

every

payments of odd amounts and au¬
tomatically applying them in ac¬
cordance with the terms of the

processing time will be

reliability,

not

error

communica¬

and^

equipment,
machinery
personnel (regular, part

Operations

Mortgage
Mr.

Institution,

the

noted that

line' system, the

'of

punched

Savings

equipment."

window for entry in the passbook.
"Under

L "

sav-

f^ne^ndTSIa^nNov^mb^ "iS t0 U'Umate .in(Yeftors' th.ere
wLn $2 bfufon to $T bUlion T ("0t be.any there will only
inflationary im!
*
0 *
H?.
plications since

will be installed

machines

teller

„

interest and any
book' entries,, are

unposted

any

use

led

their data processor "will be able
to be expanded to handle a mil¬

sys¬

window

the

Trpacnrv

tbp

investors.

taken

+imp

eSuinned comptercente? for all about $9 billion of debt which
theT?ecorrand reDo?t work by comes due the middle of NovemofInIBM 70? Alf of the ber' °f this total,-about $3.8 bil-

declaration that with

the

devoutly

This observation

of "on¬ lion accounts and 145,000 mort¬
computer gages, with additional file drums,

line"

"off

machines are
an integral part of the
computer
installation.
As the passbook is
tem,

him
a

goals

are

disadvantages

defined

and

the; advan¬

discussing

installations

sunrort

that available

above

in not only savings banks (dewith posits) but also the return which

of
01

companies^

who

much

very

was

nroiect
project

the
tne

weu

Th.6np„t

inin-

arp

Springfield, Phoenix

work done

second."

detail
aeian

in
in

Aetna

and

raising

operation,

successful

be£ng

similar automaMr. Livesey also

insurance

Hartford

project.

three

who

old

vpar«?

described
aescrioea

JR.

™

be desired."

Bank
are

tion

which

said the speaker, Everett
sey,

inn

Governments

CHIPPENDALE,

rw! the short-term issue and the is obtainable in Government
1 g?
Mutual intermediate-term obligation ings bonds.

both

Company,

ing together, in

tellers, and in expe¬
diting service to the public—both

J. Livesey

Everett

ad d,"

may

than

money

first

very

d the M ddletown

Assurance

pressure

?ra;

Ponn^ptin^i^

i
biggest advantages of such
eration involving tremendous volsystems, Mr. Livesey explained,
ume.
"are in relieving the strain and:

Boston

eti

m e

the

after

The

Control
and Operation

their

month

one

dit,

learned

SI oulj+vfo
Ba

Tbe

y a venture of the' Treasury

Mi^tHiptnwn'
w

"On line" computer

become

elec¬

cur¬

fan

be ac¬
balances, not

and

fitov

system out of equipment
rently in existence.

JOHN

would

computers

4nd-that mort-

only information fed

numbers

count

their approach is to develop such

with

of "on

use

line"

the

central computer.

Our Reporter on

com¬

realistic objection

He also discusses arrangements that can accommodate

smaller banks within

100-mile

central

use

not

was

because

computer installations for savings accounts and mortgage

operations.

instant,

tion"

Savings President explains the advantages of "on line" auto-

_——mated

could

puter, that "confidential informa¬

Discussed by Bank Head

(1497)

3°°

founded

«S?fSS ofSt£lount7'slZt-

mg investment

banking h

In addition to Baltimore,

,
Gold-

man,

Sachs & Co. has offices

New

York,

Boston,
ct

Chicago,

t n„ic

Alhanv

Philadelphia St. Louis, Albany,
Buffalo and Detroit.

The Commercial and Financial Chronicle

(1498)

otherwise feared to tread
tic

affairs.

all too

are

large part of

very

common

What

will

future

must disclose.

bring forth, therefore, the future

——: —•*

Approval of the general idea by the Bank and the
Fund would, however, seem to make this ah appropriate
time

for

wish

at least two

from

have

older

common sense

does

with

not

fully self-supporting.

Continued from first page

Government to Foot Bills

real

been the

case

Product

stock

with the two older Bretton Woods institu¬

the

reason

for the current demand for the

new

ing private loans to private enterprises which it would not
think it wise to make direct? The second is: Is it

wise

ever

thus to

mingle charity with business—to denominate these
to the needy as "loans" and thus lay the
basis for later dispute and ill-will when the funds are not
repaid when due? We made enormous "loans" to our
Contributions

and

1940

prewar

United

States

are

...

lower

...

recent market setback. Since

direct

stocks

ownership

has

million

doubled

through

funds

1953,

common

from

—-

indirect

stocks

sion

6Vz

million stockholders

—and

ownership

mutual

has

and

pen-

multiplied

many

times. Some pessimists argue that
the
speculative boom
in stocks
real

resembles

estate

which

cumulative

that of

only be liquidated
drop
in
equity

can

drastic

values

will

produce

downturn

the

A third

peeling

reason

ex-

Arguments
Deep

economic

Took the Dollar Sign OJ'f

;

through use of
the so-called lend-lease
arrangement "took the dollar sign
off" much larger grants in aid. Even the modest
hopes
that we held of ever
getting any large part of these funds
back have met with disappointment. A large part of our
the^facm of outright gifts and was
transfers" is.

believe, the

polite term. Some of this was clearly required on humani¬
tarian grounds. A
good deal of its rehabilitated industry
abroad in a way to provide American
producers with
severe
competition which otherwise might not have arisen.
Some of it
may
then
1

purely political generosity—which may or
not Have been warranted in the circumstances
existing.

4This

ous

was

long continued outpouring of

parts of the world has

many minds,
since for one
on

now

our

funds to vari¬

raised serious doubts in

in and out of Congress. This is the
reason

true

another—doubtless this generosity

part is partly responsible—our so-called balance
of payments has been
unsatisfactory for a good while past,
our

and has caused
to

some

observers who

are

not well informed

raise

questions about the place of the dollar among
world currencies.
It is perhaps natural
enough, politi¬
cians
and even human
beings — being what they are,
that ways and means should be
sought by which these
—

contributions of
too

heavily

ours

upon

could be effected without

the current budget.

to resort to such methods in

ters.
ous

our

weighing
We have long had

domestic financial mat¬

"Insurance," "guarantees" direct and through vari¬
to encourage private
capital to go where it

devices

for
the

Unlike

omists

cannot

fjdence in

changes

deep

con-

any

of nprindir

Basic

reGession.

the

-structure

the

processes

have

nredirtion

the worid

since

and

economy
1929

have

,,!r.

the

stocks

speculative

pose

boom

threat

in
the

today

today.

While home mortgage and consumer debt has quintupled since
1946> we must retail 'that family
incomes,

assets,

and

equities

homes have grown proportionately* Sixty percent of American
families live in homes they own,
ancl half of these homes are free
.

of mortgage debt. Moreover,
nearly 40% of all home mortgage
loans

VA-guaranteed or FHA-

are

insured—55 billion of the 144 bilhon outstanding. With currently
low default and delinquency ratios
mortgage debt, there appears
no danger in this quarter.

serious

Short-term

consumer

debt is.

currently equal to about
V/z
months, of consumer disposable

recession is the stability of the economy? Judged
expansion
of
credit, by the usual criteria, such as. income. But consumer liquid asparticularly
consumer
credit.- price-earnings ratios; the relation sets amount to four times their
Some observers point out that the

private debt of
the American people has risen by

and

public

gross

and

I| and the end of last year

Even

billion

242

pessimists,
in

crease

billion,

902

dangerous, say
is the live-fold

short-term

istock

yields

the growth

index versus

debt and in home mortgage

some

through

the

profits, but

debt,

unemployment
could
cumulative declines in

markets,

the

The

:the

homes

market.

fourth

reference

and

thrown

often
of the

which

made

dollar

in the

the

loss of gold, and

world

gold

which may precipitate

shortage

liquidity
orisis. It is pointed out that since
1957, United States exports have
been falling and our imports have
been
rising.
In
the
first
five
months

1959, commercial .ex6% lower, but comimports were 16% higher
than in the corresponding months
of 1958. Pessimists say that inflation of costs and prices at home
is pricing U. S. business out of
world
markets.
During the 18month period ending last July 1
the U. S. monetary gold stock has
dropped by $2.6 billion — from
$22.9 billion to $20.2 billion. Some
argue that this indicates weaken-.
ing confidence in the dollar, that4
ports

were

mercial

foreigners
some

term

are

likely to withdraw
billion of shortthey hold in the

of the $16.8

balances

United States, and this could lead
to a drastic

shrinkage

of domestic

future

cause
as

much inflation

expect,
is

decline

likely

when

pectations

question

abate.

from the United States betoken a

deterioration of the dollar and a

likely to have

threat to our stability? I believe
that the gold outflow of the past
18 months is due to special, and

stock buyers

stock

prices
inflationary exThe important

whether

such

do-

cline would produce a cumulative

decay
sumer

ment

of public confidence, conexpenditure and employas

did

the

1929

years

1932.

I conclude that the answer to
this question is negative. In the
first

place,

market

Does the recent outflow of gold

expected

not

are

Current

only disgrowth in

short-term liabilities, and threefourths of all American families
hold some liquid assets.; With
moderate default and delinquency
ratios, the quality- of-consumer
credit also appears to be sound.

price^Jeyel. Be-

future rise in the

major weakness of

our

forthcoming

automo-

arid

economy

deterioration
world

and

foreclosed

are

not

are

counting

generate
biles

market today

high.

sales and

income,
income

steady
consumer
interruption
of

prices

yields,

growth in GNP,

stock

in-

potentially dangerous.
Being
predicated on steady employment
and

stock

bond

in the stock price

the

consumer

In World War II President Roosevelt

basis

predictions.

of'GNP

,90%

unsound

The pessimists aver that this debt
,

and

a
as

world,
the
economic
world
changes radically in
its
structure and processes. That is
why astronomers can confidently
piedict
the
return
of
Haley's
comet every 76 years
but econ-

—from

dis_

natural

undoubtedly

for

ickl

satisfactory

American

certainly very few—now ever even think of the possibility
of settlement, although these debts were the subject of
much bitter controversy during the inter-war
period.

great postwar expansion has
financed mainly by a rise
the "debt .of state and local

been

advanced

can

accrued

•

for

Recession

serious recession

the

War II has been very slow, about

governments,businesses,

still

debt,

Government

However, its increase since World

setback. Historical analogy

—Doe,

advanced for

people worry about the rise

Federal

of the alleged pattern of
secondary" postwar recession
an
argument
for
expecting

avand jn

may

households.
Nevertheless, total
United States d6bt has risen Jess
since 1929 than. has_ GtfP. Our

believe

return

expansion

arguments

expecting

severe

the ag¬

calmly examine each of

four

economy,

necessary

most

produc-;

tion and employment.

Let

2.2 billions a year on the average,

Expecting

now

the" yield of
high-grade bonds than at almost
..i
-4
any time in
history, despite the

Analysis

War

are

kind

expansion of output and
employment can only occur with
an
expansion of debt arid credit.

possibly to devaluation

273% since the outbreak of World

interest,

place, we should recall that

our

gregate

dollar.

Allies in World War I. For the most

part they, along with
the books, and no one—or

The
-

has

gone

stocks

earnings and
in relation to

yield

the

setback

allegedly

public debts of govern¬
ments or in the private debt of
businesses and households. Today

Pose

their

the

National

has

average

Common

1929, and

questions therefore must arise concerning this
newly projected undertaking. The jirst is: Is it the part of
wisdom in the long run for the more solvent governments
of the world to expand further this practice of guarantee¬

our

1959

credit and

stocks

Gross

the

price

357%..

institution.

Two

real

106%, consumer prices have
108%, and the composite

risen

substantial part of the funds now outstand¬
ing in loans to borrowers from the World Bank were, as"
is well known, provided by private buyers of the bonds of
the Bank, but no one supposes that funds in these amounts
could have been obtained on any sort of workable basis
from private investors had they not known full well that
in one way or another, directly or indirectly, the credit of
the member governments—particularly, of course, of the
United Stales—stood behind the obligations of the Bank.
In point of fact the Bank has operated rather more care¬
fully and conservatively--—and on paper at least success¬
fully—than many had expected, which doubtless is in part

the

risen

tions. A very
"

estate.

base,

Obviously, it is the .member governments which are
expected to furnish at least a largo part of the required
funds -and to assume the risks entailed—as, of course, has

boom

severe
market.

rise in debt and con¬
credit. Does this threaten
economic
stability?
In the

first

Stability:

versus

fairly

turn now to the

dangerous

1929

cumulative decline,

sumer

dispatch render these peoples

U S. Economic

speculative
\

Let

occur

seemed to be the order of the day—a

the stock

One of them is that

This

general frame of mind with which this movement for a
"softer" lending institution seems hardly consistent.
:

reasonable

economy

even

ourselves about the nature of the efforts we make to solve
them. And we may add that no solution will be real which

the

aspects of the situation.

thrown into

feel confident concerning

conclude that the
would not be

these reasons, I
U.

misquote the scriptures,
likely to gain by deceiving

globe depended upon a return to some¬
thing approaching conventional practices of financial pru¬
dence. So many countries whose currencies had appeared
almost hopeless have in the past few years led themselves
at least partly out of the wilderness by getting their own
financial house in order, that a world wide revival ol
nations

spending was
unimpaired and the mutual funds
actually gained new money from
investors in this period. For all

the poor will
long be with us, to
and the other is that we are not

this gained, or seemed to gain, wide approval
groups which at the same meetings appeared to
become convinced that the financial salvation of all

proposal

could answer, but

to¬

Index

Industrial

day. Yet consumer

try to conquer the world. Precisely how these
problems could be best met and solved is a question we

general observations on the whole broad

some

Dow-Jones

existence to

question of placing large funds mto the hands of bor¬
rowers who can not (or will noty
satisfy the private investor as to their credit worthiness, ft is odd that such a

mount

figures of the national debt at all.
There can be no question' that these so-called back¬
ward areas present problems, the more so since so large a
part of the world has become acutely conscious of their
poverty and since the Communists have seized upon their

from first page

the

16%—-which was tantaa 115-point drop in the

dropped

Wises from such devices and does not show in the official
Continued

1959

Thursday, October 8,

During the last half of 1957, the
Composite
Stock, Price - Index

domes¬

our

true national debt

our

stock

present

cash market and

not

temporary, causes,- and
does nop herald a collapse of the

probably
dollar.

that

The

essential

facts

are

surplus of commercial U. S.
exports has continued, but in re¬
duced amounts. Meanwhile U. S.
a

investment abroad and foreign aid
has

gone

very

high rate.

Most of the decline in U. S. exports has been in raw materials
and semi-manufactured goods
which

have

come

into

less

de-

credit market. Stock market
credit forms only 1,1.5% of the
market value of shares tjsted on,,
the New York Stock Exchange—
$4.5 billion in a total of 276 billions* At the peak in 1929, stock
market credit comprised nearly
25%
of
the
market
value
of
shares listed on the New York
Stock Exchange—16 billion out of
67 billion. Margin requirements
today are 90% "against 52/2% in
1929. Forced liquidation of stocks
as a result of the wiping-out of

mand abroad because of a pause
during 1958 in European business

much

short-term balances in the U. S.
by $iy> billion since the beginning of 1958. The outflow of gold
will probably decline and cease
as the level of domestic money
rates rises closer to foreign rates,
and
as
foreign
discrimination

Postwar capital investment has increased the competitive power of foreign countries,* and they have chosen to
strengthen their currencies by
acquiring a larger gold base. This
redistribution of gold reserves
strengthens the free world and
essentially has meant an exchange
by the United States of unproducfive gold for profitable investmerits abroad. There is no evimargins during a decline is there- dence of loss of confidence in the
fore absent. Moreover, the de- dollar by
foreigners, for they
mand for stocks has acquired a have actually incre a s e d their
broader base

than

ever

had in thg past. Pension and investment funds exert a strong and
continuing
demand
for
stocks
which is a stabilizing force. /It
should also be pointed out that
the

confidence

vestors

has

American

in-

expansion.

survived^—againstJJnited States exports are
substantial setback in the market, removed. Our government should
recently

27.

(1499)

make

now

removal

goods

determined drive for

the

barrier

imposed

foreign countries.
Nevertheless,
we
should
maintain
a
steady fight against
further
cost

and

should

domestic

our

structure.

im-

cost-reducing

production
and
through
tax
reform

marketing
other

maintain

price

foster

provements
and

inflation

means

the

order

prestige of the dol-

lar.
regard to the fear
world's
monetary
gold

that

reserves

inadequate to
maintain
stable
price levels in
an expanding world
economy and
face

world

"liquidity crisis,"

believe this is not

condition
time to

and

there

Structural

Changes

Favoring

omy

strength is that the U. S.
is

1929

institu-

in the

Sustained

Econ-

Growth

founded.

This

argument

are

un-

against

severe

positive

the

since

1929

negative

expecting a
More important

recession.

the

that
States'

argument

the

—

United

small

1929

acquired

structural

believe, from: An explosion of
population, a revolution in the

distribution of income and wealth
a

new

age

nolcgl fnd
world

science

tech-

and

environment

expansion and competition

with"ComWnism:"Let us''briefly
the

note

impact

tural

changes
growth of our

these

struc-

the

future

upon

economy.

our

with'a

demanded

our

economy as

survival.

Today,

in such

gaged
will

high performthe price

our

adoption

spur

economy

policies

foster rapid

are

en-

struggle, and

constantly

improve

it
to

the

by
that

will

growth.
•

Act

or2

Slo lnn!

since

World

War

II.

Ear^

lier marriages, more children

per

^Structural and enviionmental
chA?ges._*n.„^„ 5° .°:^_.fve

*■

■

fast

to£ay about 2 /2 time^
it increased
,t"

during the

Thirties. Our country experienced
an
increase of about one million

people

Per

during

year

inprpneparoiinH

♦

the

family

new

increase

r a

Thirties

the

id ly.

the

of American

Thil

nmiaPv
annually.

because

will

Durmg

number

mnnnn
million

one
one

know,

formations

This

young

people

J°riara!f?a^v Inrm^

w
here today. A large family forma-

tion will create vast
for

homes

auto*

new

and

has

lgress

built

for automatically stabilizing takehome income in
the

face

re-

du,ced

unemployment,
such
as
progressive income taxes, unem-o

"automatic

faWprice

result

well

these

Another

strength

consumer

goods.

structural

the

far

element

greater

dif-

fusion of income and wealth, aris-

ing

mainly

education

and

people.

from

and

the

greater mobil-

opportunities

Nearly

spread

open

three out of five

American families

nual

incomes

compared

today have an$4,000 or more,

with\one of the five

acti0ns
ment

the

Federal

have

broken

quarters of all American families

today possess some liquid assets,
as against a minute percentage in
This

1940.

wider

distribution

income and wealth has made

expenditure

surner

than

formerly

family expenditures
in

the. face

con-

stable

Today,

was.

sustained

are

temporary

A. third

structural

stability is the

factor

the

emphasis on
science
and technology.
We can
measure
this by noting that in
1940

scientific

research

and

de-

velopment outlays-were $1 billion
a

year

and in 1958 they amounted

billion.

Scientific

and development

research

activity is growing more than
twice as fast as
the U. S. economy
Edward Teller
has pointed out that three-quar-

help

when

did

not

...

becoming

Negative

State and

local governments

are

must

you

late,

are

Here

letter, signed by the
firm, that I dictated

cashier of

come

1
+uio
as this

thing as important

stabilize

consumer expenditure.

?Xmg and spendlng Policies with
those of the Federal Government

Thinking

rpuovo

„7v,r,

our

bought

who

account

new

firm:
"Dear Mrs. Customer:
"We are returning the check of
Mr. L. Jones, of the B. & B. Ap-

pliance' Corp. Inc., Chicago, in
payment of 300 shares of Blasted
Rock Products Class A preferred
stock, bought in the

name

Larry

and Josie Smith,
"It will be
haye

cbeck

necessary for us
from Mr smith

to
on

his personal checking account
rather than on the account of a
corporation, because the

latter is

contrary to -standard business
practices conducted by the majority of firms who are members of
the National Association of Secu-

„

worry

Ibout'o^menTor d^hVerv oTthe
fourth business
wait

the interests of stable economic

^{withstanding

the

opportunity that exists for improving the
stability of our economy, a review
0f

during

progress

the

should convince

years

viewthe 30

oast

that

thAnniversary o?

the onset of the Great Depression
with

the

confidence

rather

than mis-

giving.

Convention

Act

has

taught

the need for counter-cyclical tax-

Remington, Inc.

examPle- taxes were cut ln the formed
face

Federal

and

speed

the

deficit

private

return

o?-

order

demand

Con-

and

123

of Oct. 19, with offices

South

firm

new

Broad

wiU be

The

Street.

members 0f the

this

that

Officers will be Arleigh P

Hess

xiei5S'

ueiicit oi Chairman of the Board; Freeman

would

Grant, President; William M.
Hess, Vice-President and Treas-

urer;

James A. Grant, Helena J. S.

recession.

deliberate stabilization action

and

the

Federal

Government

cycles appears
comparison of the busi-

from

ness

downturns

that

occcurred

Employment
the

occurred

ment

Act of 1946-

since

1929-32 lasted 43

accompanied

Act-of

downturns

bave

Messrs. Hess and Remington are
officers of Woodcock, Hess, Moyer
&

Co.,

Thomas

Inc.,
is

with

also

which

S?!}1

il vn?wan^

f0mer

The

lasted

t0^0^l

compellingsalef Argument6here

wh^f
wny

not
not

sav
say,

that you
nnr

"Mr
ivir.
are

Smith
bmitn,

I
I

am
am

that

aware

hucinnoo

and James Grant

man

the

Employ-

The decline of

months and

reduction

decline

Grant

Co,

Mr.

are

Free-

officers

Inc.

the rules and regulations that have

Dale Hill With Boettcher

bSt

1937-38

7.5%

reduction

by a 4% eut
expenditure.
the

three

personal
In sharp

consumer

contrast,
post-Employment Act

recessions

have
averaged
11
months of decline, have been accompanied by a 4% reduction in

employment, by less than one-half
f

/o
personal
age

reduction
,

disnosable

spo

income, and by an aver-

increase of

one-third of

ftf

tradfl

anH

standing of Proper form of

pay¬

ment.

returning a check
endorsed
in the amount of
«We

$1,000®,

by Josie Smith> which is the check
of Sillson Properties. This check
}

personal check of

J0Sl6 SlTIltil, Itl OrdCP-tO

COniOEEIl

to standard rules and practices,
«WJ,i

niuoco

Wi+n

P+leaSf' <and this is
important) .nstruct us m check in
a letter
new

vour

£Si

fhea«

receive your confirmation. If
are going to be out of town
the day we make a trade, please
let me know and I will obtain the
amount due from our cashier and

you

telephone it to you so that you
send us a check the day the
trade is consummated. In this way
we are going to give you the most
efficient service possible."
Any
client that won't appreciate the
sound business procedure involved
in that request should be suspect,
can

™QVWlotl*

;

" \s n0\ always Possible to
educate customers regarding the
and acceptable form
payment (by check) that is
L'toLiQ

of
"

Pr°Per

«ood

fre

existing

now

business

ae-1
M:„1o

(as

wefl

nrocedure)

cheeks

some

be accepted

was

months, was" accompanied by a 10% cut in employ-

datp

established
to
protect not \
y0U.
only our customers. but this will
this will oeromnanvin?
onlv our customers,

tfons

(Special to the financial Chronicle)

aftpr

alase asttifwe"are aUowed

onnnrrlincf

There

that should

not

in payment of securi-

£a"sing you this mconvenienoe
am .sure that ^ wlU want

\°n

the established rules> and by

necessity
Pration

must also

we
"Thanking

for

von

so.
coon-

vour

remain

eratlon». Yours
we remain,

truly,

very

"Blank & Co.
"James R. Cashman (Cashier)"
*

P.S.—Your cashier will

give you
the rules pertaining to payment
by check, what is acceptable and
what

Other

not.

information

"rding

information needed for
new accounts
(N.Y.S.E.)

opening

be obtained from the "Manual
be obtained irom tne "Manual

can
can

for ReSistered Representatives"
available from the "Association of
stock Exchange Firms" 25 Broad
Street,

New

York

■ppof>rvp

The

'vour

district

and

regula.

wsa

cash

Federal Reserve mwill send VOU
your district
Wasbineton

has become associated with Boett- accounts and people do not think
che; and Company, Thatcher twice about the legal aspects nor
Building He was formerly head the liabilities uponithe broker that
of Dale R- Hill and Company.
are involved -Whenthis' kaPPe"s'

tions pertaining to Regulation T,

rur.rsL.u,
PUEBLO,

uoio.—uaie
Colo.—Dale

n.
R.

nni
Hill

Lies
ties

umi
that

die
are

purchased

puiciidscu

sol-

vent' well managed^efficient firm
=

davs

such

seven days due to this misunder-

business witha

wvviia <x

—

associated.

that

employment of 31%, in disposable
personal income of 50%, and in
personal consumer expenditure of
50%.

cash accounts that is.four business

the

with

j94g

business

moderate

after

3 completely

as Promptly as possible so that
this payment will not be in violation of time limit for Payment in

Mary J°nes'and

Compensa- Harden, Irvin Holden, and Charles
policy is no longer a f. Case, Vice-Presidents; Clifford
controversial or partisan issue.
q. Remington, Vice-President and
i
believe that convincing evi- Secretary; and Gilbert B. Thomas,
dence of the power of automatic Assistant Treasurer.

prolong a
tory fiscal

'seventh

•

inis

al-

can

ProsPeidty- New York Stock Exchange.

reCognized

was

the National

years

Employment

the

You

XT^aleSf^latfonshio

sure

*^"address by Dr. Jacoby before_the

tradi

till

day

+T.Q#1a »

me traae*

growth

Govern-'

of disposable personal income, and

new

order

alTTlTTeTVl "o'f ^ ^ ,9W"
Twelve
of
To Form Hess, Grant &
in administering the

experience

ment,

inter-

ruptions of jobs and income.

that

ulu^11 lIlc u#u,\«umer Finance Association, Seattle, Wash., been

employment.

iri ; before

1940, measured ^n dollars of constant
purchasingr^-power.
Three-

checks

nnnrlnpf

and

for

deliberate

demand

*—J

compensation^ e 1 a l"4*

security Payments, and

la^vyx to.
supports.

nomm^m?tv fanffi'tie« Tf h!ni"?12 bllll0n.and dld not raiSe taxes
th^Tnppf Jr Of 1i "fatntatw."
to reduce that defieit because it
specier
oi
a
..amianon
tne

times

are

This

Powers to ~ J
—
adjust current tax pay-

jn ^be fiscax year 1959 the Feddemands iPrni Government ran a
deficit of

annlianee*

growth.

the problem of coordinating their

meltt^rtbf
^,al1 of lts P°wers to steady
maintain
high employment
and
employmt

Durinl

today
ing decade of the 60's the number

per year

would be wise

There

ask for deliveries that

rrv,—

rrii 11 ion

21/,

1929-

depression-proof,

are
afraid to
made another deep depression im- almost as important as the Fed- are af™ld to ask their customers rjties Dealers and the New York
ask their
probable. Public policies adopted eral Government in the amount J® mail their checks „L
Stock Exchange.
since I^Em^ymenl Act ™ of goods and services,that they
"Please have Mr. Smith, send
.®EE
a
cusalso, ruled out deep depres- purchase
and we need to study are others who will tell
his check for the amount of $9,000

ployment

nonula^n tndaVahmif1^/ Time-

population

changes in
demand.
For. with regulations they are doing
example, our experience with the business with an established, firm
boorn in automobile credit and that honors the proper rules of
sales during 1955 demonstrates conducting t h i s business. You
*bat consumer credit terms can won t have to explain it. I am
become excessively loose and can referring to cash accounts but the
f°rm an unstabilizing factor in same principle holds true with
the economy. Hence, Federal margin accounts. If your firm has
P°wers to control the terms ofta policy of maintaining margins at
consumer credit on a standby
a
basis would serve the interests of a»
(n<ow 25% of market on reg?u
ifyj ~^e
need
glve thk how vln
th!ipLm?
the Federal executive broader this before ^
gress

growth,

growth nf the TTnifpH States popuof thp United

cumula-

and

that

ments within limits fixed by Con-

1946

raIea^yncriLboe?nmthrarratP0£oaf S'SeY sT Economy "devices
lation

now

Put You

On the Defensive

nnon

uuiiim
Economic outuiuzaiiuii Under the
Stabilization uiiucr uic

Employment

The Customer Doesn't Want

°cal

country was not faced
global ideological struggle

which

elements of resistance to deep re¬
cession.
The primary factors are
I

for

and

our

has

economy

markets

services

and

Today
the
world
is
moving ahead rapidly and offers
expanding markets for both
In

fears

faced

investors.

ance

the

that

States

that was either
growing slowly and

offered

goods

serious

weaknesses, and
of
the
pessimists

United

economy

stagnant

Our analysis has shown that the
U. S. economy today is free of
;

the

world

—

and there is only one way few stocks and who obviously sent
requires to do it. Explain to your customer unacceptable checks. There is no
Primarily tax reforms, measures that there are rules that must be apology implied, instead, a courtefor more adequate competition, followed and that it is to theii- ous explanation of facts. The next
regulation of labor unions, and advantage to do business with a time the customer will know beta new Policy for agriculture. Be- reputable firm that sticks to the ter. When she telephoned me in
y°nd this> we would be wise to "book." They will understand this receipt of the letter I told her why
strengthen the powers of the Fed- anyway —they will know that it, was important to "go by the
eral executive to deal with cycli- when they are asked to comply book," both to her and to our

economic

expansion and Soviet competition.
In

DUTTON

to strengthen the basic forces of time,

world

Nevertheless,

of "

economy

environment

our

factor

prolonged

collapse

1932.

recessions.

which

financial

which caused

structural "

BY JOHN

States

backs in its long-run expansion,
But never again will our economy
suffer

final

United

pauses

tive

adequate

ence

the

will continue to experiand temporary set-

economy

ment opportunities
A

Assuredly,

former periodic dearth of invest-

readjust-

Strengthening the Economy
For the Future

ings of the people.
This is the
basic reason why interest rates
are rising.
It has banished the

tions.

Securities Salesman's Corner

are

necessary

make

in\our

ments

imminent

personal consumption expendi-

ture.

alive today! Scientific
research and development is ereating new products, processes, and
needs
for
capital more rapidly
than they can be met by the sav-

tory

the

becoming

are

produced in its recorded his-

severe

ters of all the scientists the world

S.~ has

R, W. Newton Opens

itl [moortant

chronica)

(8pKiai to

book"

LITTLETON, Colo—Ralph W.
Newton, Jr. is engaging in a se-

rule'with

customer.

eurities
^785

business

from

offices

Shepperd Street.

F. A. Stinson

Opens

(Special to The Financial Chronicle)

LEBANON, 111.— Frederick A.
Stinson^ is conducting a securities
business from offices at 1007 College Driv^

obtain

"hv the

dseiustsav "that's the

all

the

reliable firms"

cooperation

and
your

Remember, he will

crnndwill

goodwill

business

involved

vour

involved in your
relationship.

the

rules

margin requirements, etc.
Once
your customers know
the rules,
they wiu cooperate. Spend some

time explaining proper procedure

to new accounts. The best time

'?^0trtkla 15 when you have the

first trade,

ap-

preciate sound practice on your
part, you are not asking for any
favors, this is the right way to do
business so do it right. With that
attitude, you can educate your
CUstomers and add to the prestige
customers and aaq to tne presuge

^ P®rlinan Op
RIDGEWOOD,

—

Irving

perlman is conducting a securities
business

press
name

from

Avenue
of

Company.,

ofiices at

under

Perlman

799 Cy-

the
—

firm

Investment
J.i.

U.jJ

The Commercial and Financial Chronicle

(1500)

at year end

SEC and the
Continued
real

the

market at between

It is

$10
belief that such

our

pattern
eneomtwo public offering prices
the prospectus price available to only the selected custompasses

—one,

and two, the price or series of
prices not disclosed in the prospectus but established by the
trading houses, which
are
not
Identified in the prospectus, for
the remainder of the offering.

«rs

Certainly

appears that this
distribution
procedure

wh ole
makes

$11.

mockery of the existing

prospectus

Securities

the

1933 and of the rules

Act

promulgated

Securities

the

under

require-

disclosure

ments

Exchange

-Washington,

D. C. promot
which, although never filed with
i*10 SEC,^was employing a p spectus identical in
orm
which had compliedI c 1Ple*°ly with oui
ii..g
qui
nients, even to the ext nt or
t
011 lts lrot!JL PaSC the . fa)in
a
language, These^sccu dies av
not been approved, or.
W- tlie
n-or
sion passed upon the acOuiacy o«
adequacy cu tne.
.3
representation^ to the co t c y .
a erimmal offense.
Tllu.
l\~.
ga,iy harepieserited
a
u>
^

manipulative practices in the

over-the-counter
Let

market.

elucidate:

there

disclosure in the prospectus to the
that the prospective offer-

well

appreciation

from

their

000.
or

excess

end

companies have assets of
billion.

in the filial
specific limita¬
replaced
by Section
which
provides that the

14(b)

Commission is authorized to make

and

and the
President of the Gettysburg Col¬

and

lege;

•

There

are,

...

many

course,

other cases which I could cite to
you
to establish the presence
within the securities field of unscrupulous promoters. 1 am sure
you are all thoroughly conversant
with many of our problems; I.aril
equally certain that you all recogn^ze that the investment banking
business has. within it many men

size

policies of

t'Stf ilv S 'i-lH

fllc United _States months,
A

investigation

study and

effects

been dead for six

However,

were

over

version of the Act

tions

Member of JLongiess, jhohao
J1? iact neY- J-S
rfnir-ii in
a

$150,000,dozen

some

are

companies with assets in
of this figure. Two open-

exceeded

assets

Today there

the

investment

investment companies

securities markets; on con¬
of
control of wealth

industry and

companies in
which investment companies arc
interested, to determine whether
any
further substantial increase
in size creates any problem in¬
volving the protection of investors
or the public interest, and, if so,
to

recommendations

make

the

Congress for remedial legislation.
Pursuant to this mandate, about
a

Commission

the

ago

year

ranged

have

the

ar¬

Wharton

School of Finance and Commerce
conduct

been completed and the

being sold have not
in,the

hands

securities
to rest

come

bona

not

has

fide

mem-

bers of the public.
Furthermore,
adequate disclosure would require
them to explain in the prospectus
how they determined the price at
which they proposed to offer the
security and the method they pro ¬
pose to use to distribute- their al¬
I

might also point out that the
distribution
pattern en its face
veems

the

duct

violate

1934

Rule

which

Act

prohibits trading.by
in

lerested

10
in

essence

person

distribution

B-6

have upon the industry

may

whole,

as a
g

fiscal

1958.

ferred

fiscal

1959

the Department of

United

and

re¬

Jus¬

States Attorneys

throughout the country 45 new
criminal references. This represented

the

largest

number

criminal referrals in the past
entire Commission's history.

The

45 referrals also are to be comrepresentations as to mar- Pared with the total referrals in
price where that price is -the past two fiscal years which
made, created or controlled by the numbered 41. In 1959, while we
broker
or
dealer.
In
addition, made 1,471 broker dealer inspec-

naires

have

been

them.

most

the

from

should
on

Section

anti-fraud

Securities Act

the
the

17(a)

the anti-man-

and

lions against 1,452 in 1958, we
found 2,070 indicated violations of
either

the

SEC

statutes

its

ipulative Section 10(b)
of the
Exchange Act and of other rules
promulgated
thereunder.

rules. The Commission's securilies violations file contains -the
names of 09,013 persons against

An indication of the tremendous

whom Federal or State action has
been taken ill connection with se-

workload

which

have

been

experiencing in the last few years
Is the fact that during the 25 year
history of our Commission there
have

been

15,000 -registration-

statements filed for
value

these

dollar

yet 4b of
of the dollar

filings and Vi

amount have

total

billion,

$161

occurred

during the

last six years.
I suppose

it is perfectly natural

securities business

scrupulous
men

fraud

horde of

artists,

and swindlers whose

un-

curities

violations.

keeping

these latter records current, we
added during 1959 items of information concerning 9,576 persons

including 3,450

previously

persons

identified

not

these

records.

As of the end of June,
there were 4.907 brokers and
dealers registered with our Commission. There are 4,913 NASD

year.

"con'"

only in-

field

the

Investment

might

say

Company

that

the

tre-

terest is making a few "bucks''for mendous
growth in the investthem selves
by
any
scheme
ornt
c o m p a n
y
industry
has
artifice to defraud that their fer- continued

unabated, and

tile minds
You

but

Federal

can

would

conjure

even^ had

District

Court

believe

into

go
in

Okla-

tioma City to obtain an injunction

against a
celestially
ambitious
promoter who was continuing a
distribution
credulous

securities

public

among

investors

of the

close of the past fiscal year, there

up.

scarcely

were

512

registered

investment

companies with total assets estimated

The

in,
rate

excess

$20

progress

which

indicates,

a preliminary report
phases of the study early

fiscal

The

will
cover such subjects as changes in
portfolio distributions, changing
rates of growth of the investment
year.

study

industry,
investment
companies' market operations, and

sentatives

being

are

supplement
the

the

planned

data

growth
can
be
appreciated
by
comparing
this
amount
with
comparable
ones
representing the total assets of
registered investment companies

ment

filed

the

under

act, is delinquent.
The Trust Indenture Act of 1939

annum.

disclosed

not

was

the

prospectus nor was stockholder
approval obtained for it as re¬

Section 15 of the In¬
Company Act. The Fund
followed the practice of distribu¬
ting fixed amounts of capital gains
quired

vestment

project

investment

company

plates

this

the

field

inspection
contem¬

program

periodic inspection of all

active

management companies for
purpose
of ascertaining any

the

deviation
of

from

the

requirements

the

statute.
As
originally
there would be a twoyear cycle of inspections.
Due to
a
shortage of personnel and the

planned!,

increased

regular
work, it has proved impossible to

effect
of

than

inspections.

fortunate

derived

pressure

since

from

minor

This

number

most

agement.

they inspections

have made, indicates a need for
review, in the field, of the opera¬
tions of these companies to bring
them
into
compliance with re¬
quirements of the Act. In some

have found most serious
violations. During the last year
14

inspections
pared with 6

were

for

made,

the

to our Legislative

now

Chairman

Gadsby, last year at
Mexico City, I might say that it
was introduced into Congress dur¬

Only three of the amendments
proposed by the Commission to
the Investment Company Act of
1940 were met with any opposi¬
tion:

amendment which

the

one,

fund;"

"balanced

two,

the amendment designed to insure
there

that

directors

investment

board

every

com¬

a certain minimum number
"independent" directors—that

pany

the recent session. Hearings is,

ing

not connected with the
investment advisor,
or
principal underwriter for the
it appears likely that they may
fund; and three, the amendment
take some action on the proposals
designed to remove the exemption
at the next session.
for a company which is subject to
the
regulation of the Interstate
Discusses Proposed Amendments
Commerce Commission, which is
In general, our proposed amend¬ found to be primarily engaged in
have

held

been

sional

ments
1933

the Congres¬

the

Securities

Act

clarify
the jurisdictional basis of the civil
liability provisions of the statute:
designed

are

(2)

extend

civil

liability to

(1)

to:

criminal

and

documents tiled

with

the Commission pursuant to Com¬
mission

rules

connection

with

exempt

from $300,000

section

3(b)

the

statute

(Reg.

A); and

(4) make it clear that
showing of past, violations is

sufficient basis for .injunctive re¬
lief and that aiders and abettors

may

responsible

administrative
The

the

civil

and

proceedings.

proposed

amendments

Securities

Exchange Act of
comparable
changes with respect to injunctive
relief and liability of aiders and
1934

would

abettors. In

make

addition, changes are

proposed which would:
violation

bezzle

moneys

trusted to the
member

this

(1)

act

make

em¬

securities

en¬

care of an exchange
registered broker or

dealer; (2) clarify and strengthen
the statutory provisions relating
to manipulation and to financial
responsibility
of
brokers
and
dealers; (3)' authorize the Com¬
mission

rule

borrowing,
of

clear

and

(4)

the

make

anj-fraud
statute;

are

relating to
registration

authorize

tration

the

Commission

withdraw

by the

revise the provisions
broker
and
dealer
in several respects:

(5)

suspend

covered

provisions

the

regis¬
exchange

securities

registration of
persons engaged
in the business
of advising others with respect to
securities
and
prohibits certain
activities by registered investment
advisers. The proposed changes in
this statute would, first, expand
the bases of disqualification of a
registrant because of prior mis¬
conduct;
second,
authorize
the
Commission
by rule to require
the keeping of books and records
and the filing of reports; third,
permit periodic examinations of
registrants'
books
and
records;
fourth, empower the Commission
by rule to define and prescribe
means reasonably designed to pre¬
vent
fraudulent
practices; fifth,

the

vise the

registration; (7) clarify
authority
to
security from exchange
there

rule

for

order

provisions relating to the

postponement of effectiveness and
the
withdrawal
of
applications
for

registration. There has been
or
no
objection
by
any
segment of the regulated industry
little

ment

Advisers

Invest¬

the

Act,

Counselors' Association

being

these

proposed

entire

agreement with
amendments.

Increased

There

ently
of

the Invest¬

the amendments to

ment

Fees

other bills

two

are

pres¬

the House
Representatives which I would
pending

before

like to discuss. These

which

would

are

increase

the bills
the

fees

charged

for registration of new
issues of securities under the 1933
Act

increase

would

and

charges

made

for

the

sales

the

national securities exchanges from

original

liability

Commission; and sixth, re¬

would

trading where

criminal

extend

Commission's

the

for

wilful violation of

when the exchange has ceased to
the
requirements
of
its
the

Act

Advisers

Investment

The

provides

meet

suspend

investment

company.

tjhajt attempts to purchase

business

the

lending
by
a

securities

dealer:

sell securities

(6)

regulate

holding

customers'

broker

persons

management,

and

Committees concerned

as com¬

preceding

'•

fund,"

Turning

Program which was discussed

un¬

experience,

our

of 1933.

required that an investment com¬
quarterly,
which
resulted
in
pany state as a matter of funda¬
excessive portfolio turnover arid
mental policy, which cannot be
represented a deviation from its
changed
without
approval
of
stated
policy of capital growth.
stockholders, its stated investment
The company is presently in the
objective, or characteristic, such
process cf reorganizing its man¬
as
a
"growth
fund,"
"income

major

This

and

meaningful.

Commission

program.

obtained

questionnaires

Another

1/500

the

The

1/100

apply this

over-the-counter
for

reason

and

of 1%

charge to

sales

market.

desiring

mention these two bills is because
of

the serious budgetary

problem
yeah. For the current fiscal year
failure to' comply with the act with which we are presently con¬
24 inspections are planned, and and
where
otherwise necessary fronted by reason of the .tre¬
for 1961, 94, which will put the
in the public
interest; (8) prohibit mendous increase of activities in
program on' an estimated 8-year
trading in the over-the-counter all areas of the capital markets.
cycle.
market for limited periods where Believe me we have been literally
Cites Managed

billion,

periodic report
registered companies or report
"insiders" of such companies,

per

company

cases, we

j
I

been received

have

some

this

School

from

assets

offerings;
(3)
increase
to $500,000 the size
may
be ex-that substantial data have been ob¬ hT^iOTfeltiigs which
from registration under
tained and are being processed. Wcr empted

report has recently

make the study

violations

165

companies
and
60
companies, and com¬
pleted replies have been received

Hole 15 C 1-8 which in effect pro-

closed-end

bibits

may

sent

open-end

kct

there

V-a

each day that any

investment required

with the Fund
which they received compen¬

of portfolio turnover rates. Personal
17 interviews with company repre¬

in-*years and the fifth highest in the
and

Pennsylvania
fact-finding survey in
connection with various aspects of
this problem. Detailed question¬

from

Sumc ^scrupulous Promoters
Bet me say that this latter typo
has kept us very busy during the
kisl year.
We instituted
11!
broker dealer revocation proceedings in fiscal 1959 against 57 i:i
tice

lotments.

for

centration

of the University of

distribution

had

junction proceeding instituted by
the Commission; (10) provide for
a
civil
monetary forfeiture for

average requires that debt securities pub¬
Instead of licly offered for sale to the public
performing the services required must be issued under an indenture
The question of the. size of in¬ of
them, they entered into an meeting certain statutory require¬
dividual
investment
companies arrangement with an analyst as¬ ments and standards for investor
was
considered
by Congress in sociated with a New York Stock protection
and has been duly
enacting the Investment Company Exchange firm under which he qualified with the Commission.
Act of
1940. As originally
pro¬ managed the portfolio and
was The amendments to this act are
posed the Act would have pro¬ compensated by way of "commis¬ designed primarily to conform the
vided that investment companies sions
on
brokerage business in act to the amendments recom¬
could
make
no
further sales
if portfolio securities. This arrange¬ mended as to the Securities Act

of the highest integrity and honor,

the

Fund

advisory contract
sation

Unfortunately there are others
whose moral fiber lacks character
and strength and whose basic desire is to serve a personal and
greedy interest without any considcration for the effect their con-

the

Thursday, October 8, 1959

Company's Size

the

underwriters"

prospectus.

because

stop order was entered suspending

net

Investment

Although these tradxng houses argue that they are
under no obligation to furnish a
prospectus before consummating
a sale,
it seems to me that they
are
in fact subject to Section 5

named

•

portfolio securities.

Board of

effect

ing is to be marketed at two or
more
different offering prices in
the primary distribution, nor is
ihere
any
disclosure that the
trading houses which bought at
the prospectus price actually are
performing an underwriting tunction and, if they are, they should
accordingly
be. identified
and

size of individual companies, due
to the sales of additional shares

Act of 1934 and intended to prevent

subsequently more fully de¬
veloped at a public hearing, a

were

distribution

billion, and in 1956 of. $14.0

S5.6

spectus_ said for take-oil from
Space, Maryland, .on Dec. 15, 19. .),
101 a ,ri-pT
.• the
moon. Paienthetically I might tell you that i
prospectus there uasinemiou
/
ir when
to which stock was allotted cotild be purchased for $5.
retail
price immediately
\
r c£se

establish
and

in 1941 of $2.5 billion,
billion, in 1951 -of

S3.8

billion. This phenomenal growth the registration of this company's
corporate venture which proposal
.in
the
industry
has
resulted securities under the Securities Act
distribution
occurs1'*0 he building a flying _saucei
primarily from the increase in the of 1933. In that case, the sponsors
trading houses at which vvas scheduled—so the pro-

public

houses

1946

ffrom page 3

through
the
prices which seem to reflect the
highest
price
the
market
will
bear!
Following such a distribuuon pattern, corporate issuers will
bring their stock out at a $5 initial
offering price and trading

Issue

Hot

The need for such

Funds

inspection

the

public

tection

is made crystal clear by
the flagrant violation of the Act

(9)

uncovered in the

broker

program

interest
investors

provide

that

has

and

been

the

pro¬

requires:

Managed

Funds. On the basis of facts which

dealer

insolvent

judicated

may

bankrupt

be
an

ad¬
in¬

the

tremendous

workload
we

case

swamped

pressure
under which
have been operating. If we are

going
to
be
effective
as
Agency in protecting public
vestors in all

areas

where

in¬
are

Volume 190

Number

5888

The Commercial and Financial Chronicle

charged

with

primary duties by
administer, it is
going to be essential that we seek
the

statutes

substantial

increase

overall budgetary

our

requirements.

In my

judgment, the additional
problem could be fairly and
logically answered if these two

cost

bills

could

into

enacted

law.

In addition to assisting this Com-

mission

obtaining

fondsthev

essential

thf f is

tor

would

»tr st. -was

Treasury for

the cost which
has budgeted. I am
you
all recognize that

Agency
that

the

utilize

modern

provide maximum

sure

the

techniques

service for his

principals.
Competition will be
vigorous, however, and the small
firm may be hard-pressed to keep

SEC is the

Agency of the Federal
Government which attempts to

protect the soundness of our ex- up with the efficiencies of operapanding financial system. Unless tion mhei ent in large-scale enterintegrity and the honesty oi pi]ie.
market can be pre(3) Developing new arrangethat public investors ments with investors. The chalwill continue to haVe faith and lenge you face in meeting current
confidence in the functions of problems of investors strikes at

the

capital

served

zj&s#

As of today

either

value

many

numbers

being sold in

are

the-counter market
mate

fmthe
can Telatoday. It is the SEC as the "in- need for immediate mortgage desecurities vestal* watchdog" and as "Uncle liveries? One possibility for faster
in dollar Sam's
police force" which
is delivery of completed loans is to
the over- charged with the duty of protect- assume d-rec ly Part of the re-

no one

that

It is

our

these'bills

estito

were

become

law, the percentage of
our
total budget recoverable by
by
the Treasury would increase from
34.6%
to
approximately
54%
While these recoverable iunas are
1C Uicse lecoveiauie
c
funds
not usable by the Agency

the fact
that they would leimbuise the

-j—

vestment

opportunities beckoning,

may not provide as ready an outlet for your loans as previously.
Moreover

the

flows

into

hardly

volume

savings
institutions,

these

static factor, places basic
limits on their investing capacity,
You are directly
vulnerable to
shifting investment policies of
these

institutions.

You

vul-

are

nerable also to the

changing availability of short-term funds from
commercial
banks.
Indeed, few
institutions are as
directly dependent on the availability of
short-term

both
f,

long-term

and
1

funds

mortgage bankers.

are

Can These

Challenges

lag between investor commitments

if70^0 m-i\T^ df

protobK1
ing

than

dtoest after

enough

full breakfast

challenges

eafier

than

suggesting

answers'

date their business among fewer
servicers. This would permit cen-

trahzed record keeping, less audit
w°rk. and generally lower home
office costs. Larger firms may
result from the steady growth of
one firm or from the merging of
two or mora firms. An lnterestme
two or more firms. An interesting

opment

the
the

nossihle
possible

nationwide

develdevel-

branch

There

delays
A?

and
-1

-I

particularly

funds.

„o..ibiltle. U

some

do so in the hope that
they will provoke thought, disand
eventually
better
eussion,

are

way

FHA ^egulat'ons ia ™.et'.

Th's buestion of capitalization
of,cTrsc' a maJ<!r consideratl0n ,today' Many lnves'ors; a?
•

!?•

answers

lenges.
tion

all

the

other

chal-

Fundamentally,

can

competionly by continu-

be met

^rst£

knowledgeable

men

aboutmOTt-

been

anxious
anxious

meet

competition and grow in size that
they have been trading dollars
and

have

not

had

enough net
profit to leave in the business to
increase capital in reasonable proportion to the volume of business
done and obligations outstanding.
One thing that protects some
businesses from irresponsible and

ing to provide a useful service at
least as efficiently as your competitors. If this is not done, for
one reason or
another, mortgage inexperienced competition is the
banking as we know the industry l'amount of capital required.
It
today will not survive. There is could be a good thing for the inno standing still.
You either move dustry itself to require growth of
forward with the times or give capital in proportion to size of
way to others who will.
*
activity as well as to provide furThe challenges raised by your ther protection that the investor
.

competitors are, in the last analysis, based upon improved efficiency or new techniques of operation.
If
you .rise
to
these
challenges, your competition will
be met. I did not say eliminated,
This

neither

sirable.

expected

But the

threat

nor

de-

posed

savings and loan associations and
commercial
ther

into

banks

your

of cutting furbusiness will be

thwarted.

(2)

„

Weeding

out

inefficient

If it is a valid
assumption that your industry is
faced with increasing competition
and is, at the same time, passing
from the "rapid growth stage" of
development
to
what
may
be
mortgage servicers.

characterized

the

"shakeout

stage," then we may see a weeding out of inefficient servicers,

pand capital relative to volume of

posi-

tion. Thus, the need lor greater
capital-is again apparent. Reinforced by additional capital, it is
only .one furtherjstep—-but a giant
one—to assume more of the underwriting risk by carrying mortgages
thiough to completion and building up some uncommitted inven-

tory. Admittedly such a market
position introduces^ new risks to
mortgage banking but nsk-takmg
is a cornerstone

larger

firms

place for the smaller, efficient
servicer, well capitalized, and able

competitive

and

In'a
New

mortgage

aiso

and'state
to

ought

insurance commissioners

somewhat provisions

liberalize

of conventional mortgage lending

specified (Conditions,

under

hrnaHer

tvne.

directed

insurance companies

the

Pan

„

Perhaps these ldeas aPPear
bV radlc^a£d impoSSlb1^ to
« not these
1

mnvt

flmxTO

era Of*

frnrn

^enston® Cds^e xSSfknSSf W''W
Sr "

tenttol t™es of investors

explo?Id

^e/°ba„ier*P
frapfinn

Legal
^ve .prevented

their

these^

mnrf

barriers

ai'e

actl0n a?e baS|C t0 -y°Ur co"tl.nuec'

market en"

vtonnment3 changlng

vlr°nment-

Expanston into other areas oi
activity,
lelated
to
morfg

banking is also suggested by

hardly insuperable and the potennan^e instructive Youi
amount of mortease funds is
war,d can be instluctlve- ^our
tial amount of ^mortgage funds is predecess0rs were widely diver-

^at Mto be

™fous tyj^

^£j

tion.

There

nhciiDltu

mortgages; credit

unions

have

over

less than 20% in mortgages.

Perhaps the broadest and most
challenging investor group that
awaits your exploration are in-

Omir

mirront

their current nnroharoc
purchases

^,,+..7.7.

renf

dence

FNMA

lessened

cur-

depen-

would

will

still

basic

XLiy,y,^.

LI1C11

v;.

the

life

business

and

other

tivity

*ting thaf
apain

nattprn

0nly

after

the

It.

^7.7.7,k„

lTr.7lo7.nl

7-.7V7T7

nnnn-

is provided by new Federal regulations

«n„7v,h+iv,«

iv,^i„;ri.7r,ic.

permitting individuals to
participate in FHA-insured mortgage
loans.
A
few
mortgage
bankers have already begun to

mor'tgage investments^ open up this market and it shows
your services and fa- promise of developing further.

raxwrvs

m increasingly.
,„a „„„„„ bn.Ine.s
IalT1 f"Hy aware that many new based principally on syndication
tec'hn'?ucs haYe ub?fn developed of loans and equity investments

pnnpilldine

the

investor

with

funds

availability of mortgages. The
nf

«„t;.nf]hv

pnmmitinpntc "

three

years

he has built up an
of nearly 1,000 indi-

active

file

virfuai

invo<;tor«?

of'^ware- rnnualvolume
U iorms of
ware annual volume
bodS1"gld ^To^ong^rniWor
variotB

forms

•

to improve
P°sltlon a"d assume
underwriting risk.

5?01; ga^e.,
r caP
P}ore

i caPltal. ,1S' ,ndeed' increased
theil tae n.„
uncommitted inY. 1°rj£ w
be .7S,s?ne an in"
financing will become more
£ea5! y available without the
iurthe.r collateral of firm investor
,

,commitments,

sideration, however,

for

the

re-

not

the

suggesting

originating

busfness
business

WOuld

"tpCf°^Cv^J ug't oT naraOTapb
Itonreface ofinvmono*r°m toe preface of my mo
LLaw rnmmnipi" This nrefa

n,,

written

?L, j.
...
Goldsmith,

Ravmond

hv
f
of

one

nation's,
nation's

th„
the

inSJiinl anthlitiprnn
ieauing duulullllt-b UII

savines and
SdVlUgb CIXJLC

mt^mlrh'arip^^'^as

fob

xinanciai inte] meaidries, is us aui
lows:

"Will

mortgage

companies re-

main essentially an ancillary institution and originating and serv-

for institutional,
government-insureo1
and guaranteed home mortgages,
using short-term bank credit to
carry
a
temporary inventory of
ice

organization
in

investors

atoeadv

f„

snoken

for by

Fs5a®V,s?,V

St'J'SU'SSiJ

Piior In
insurance.

mortgage

ac-

reverSe

you

but t

youi

aervicing that it should always be
your dominant source of income
Greater
penetration
than
you
have already made into
related
activities—real estate investment

investors

introduction

I£ mortgage bankers do not dehance your value and thwart out- veiop the opportunities in this
side competition. The fact is that market, I believe other instituf mortgage bankers are unable tions wilI. i have been impressed

flow

"I,

tangential.

are

types

institutional

tion

cilities for investors would en-

the

servicing in-

blood

QQme

„

i.a:„v,^

market shifts favored

Broadening

,.7^11

as'well

7.7.77,7ic.ni77.v77.

acquisitions based*
commitments. Their

LJACiJ.

including unincorpo- and sales, land development, genrated businesses. -In the early eral insurance consumer financhistory of mortgage banking in- jng — will permit you to rolK
dividuals
provided
your
main better with the punches dealt by
source of investment funds. They changing economic and financial
gave up their pre-eminent posi-. timef.
" "
—-

federal mortgage insurance. Now
trepreneurship.
once again, I believe, individuals
The advantages of having an may offer you a promising new
inventory of mortgages ready for market, as they become increasimmediate delivery are obvious, ingly
investment-minded.
One
investors would look to you for incentive for mortgage investment
future

T(
Today,

inpnmo

+hoir

dividuals

of American en-

may find it increasingly^ards can be great.
difficult to satisfy investors. Size
^4) Broadening the horizons of
of operations alone, does not nec- mortgage
hanking.
There
are
essarily mean quality.
many
facets to the last general
In brief, then, the period ahead
challenge I posed concerning a
may
see
some
weeding out of broadened area of market operamortgage servicers.
It may be tions. Broadening may be achieved
characterized by the emergence of through extending your area of

business,

less

nnera1.?on

vipw

adarrtpd

have over $3 billion m assets and

their capital

Several of the larger mortgage
companies have already been able
to assume more of the underObviously size alone is no guai*-" writing risk and operate with inantee of capital adequacy
In fact, ventory available for immediate
as
Mr.
Keesler
points out too delivery. There is some evidence
rapid growth may be a basic cause that-others are moving increasof inadequate capital. The shakeingly in this direction. The techout
period,
therefore,
may
be niques of this kind of operation
characterized as well by a firming ^or institutions having little capiUp
of capital positions.
Those
are admittedly not easy. They
firms unable or unwilling to exdeserve the most thoughtful con-

expansionary environment inefficient operations will hot be easily
hidden; investors will insist upon

tvne

business

responsibility they will need

to strengthen

is entitled to and, in fact, is paying for."
+1

operating
over
a
wider geographic area, and having a strengthened capital posi-

-hould

mt"'Sm '"""lo™"'U

^ Sn1f^^™ieS
have

(1) Meeting outside competition,
The answer to this basic challenge
IS
in
a
sense
a
complex of the

The

banking

billion in assets and only
8% in mortgages; fraternal orders

commitments

of such a development so dong -as. fmmede-

you now, I

answers.

tions.

their

make

own

service,

will

wssslr&ssr jas&'aarsss sitarxttTtt
Im.
In

by all types of business organiza-

Reduced

11_X*

cancellations

--Obviously, for mortgage bankers

But the exodus of marginal firms
from your industry will only
serve to strengthen it. —
Maximum efficiency through
improved techniques, increased
mechanization of operations, and
new services to investors, may be
achieved most readily by larger
sJze firms. Some investors may
find it advantageous to consoli-

Pos-

and

faced

one

trust

" the minimum capital requirement

alwavf'much

whether

important in attracting new types
of investors such as pension and

expanded

and

mortgage banking.

thtol nf'cthlrc

decision

convincing
.

about „ 2%
in mortgages; fire
nnrl
mnfino
inenrmtofl
casualty and marine insurance
companies have close to $25 bil}ion in assets and less than 1%

uncertain.

■

'^,1 C^,au" re§ulatory obstacles in the

i77^rtbaV^7

The

—

sneculation
speculation

Met?

otfered-aTthis point and final deftom of
>'eal estate" activities in ad
livery will be reduced and, per- *aacls»K
^
iSS dition to mortgage banking. ServOiKM haps'mwe^ impoVtant, wiir be less $60,$75 billion in assets with only ~ ™a™nly
minor part of

iantic City, Sept. 10, 1959.

improved

life companies and savings banks

continue

bow mucb t0 broaden is

When

address by Mr. Sargent r..fo7e
a?nual convention of the North

~>"7

page

loan

somewhat easier to judge and the

....

Mortgage Banking's Direction
Is Now at the Turning
Continued from

initiating

completion^dme will^e
c
p etion time will be

1iamic and expanding activities

7*7

lor

commitments to builders.

we cannot hope to do the job in
lhls Period of tremendously dy-

"A.
^

siDility

th® financial markets. Unless
we can be put in sufficient funds,

have decided

specialized type of operation.

nanrlincf

-•'7.

.■

ally foretell how

already broadened in one direc- originate and service sound loans
tion, others in both. Still others 0f equal liberality Some of your

EfSfiSSSS assr&f sar.2 BSRSrrSSs

slieeoitr^r^hi-counirbrnai! tt^coW wM!* w™cing SiiTof toel^and
ket

(1501)

broaden into a more diversified
and independent type of institu-

mortgage

handling,

deaier and underwriter

mortgages of all types, placing;

well asr
'
institutional investors, and carryehmbmg rapidly.
ing a general inventory of unNew investors will broaden op- committed mortgages for saleV
portunities to expand your type Are they likely, as well, by ex
0f operations as well. Markets for pansion or amalgamation, to in pjjA and VA loans will be ex- crease their general real estate?
panded. More importantly, per- 'operations blurring further the?
haps, your ability to compete in distinction between mortgage?
conventional loan markets may companies and real estate investbe improved. It is difficult now, ment, brokerage, and development
as you weil know, to compete companies? Finally, will they reagainst savings and loan associa- main within their generally loca?
tions in originating conventional spheres of operation, or will many
loans. These institutions can make Gf them develop, as a few have,
80 and 90% loans, while life in- jnto organizations working to a
surance companies — your main considerable
extent
through
purchasers—are limited generally branch offices on a regional ox
to
much lower loan-to-value even a nationwide scale?"
I
ratios. Mutual savings oanks, of - Q0idsmith concluded this para
course, are generally precluded
,
b
writing that: "Klamart
from buying conventional loans in .g ^.Qo carefui a student to propose
national markets. What about the apSwers to such speculative ques—
possibility then of developing a tjons
» of course, this was:
conventional loan business among jus^ a Polite way of saying thail
individuals and other types of jQaman d0esn't know the answers
investors not limited by law' to and is too timid to attempt tc
such restrictive terms of lending. deai with the questions raised,
Perhaps package deals can be well, Klaman still doesn't know
arranged
for
participations
in the answers but he has at leasf
FHA and conventional loans. If atteihpted to deal with some of
Federal and " State supervisory the cbanenges. In the final analyauthorities are persuaded that 80
"the answers car
and 90% conventional loans are
'
thesafe for savings and loan associa- be provided only by you,
tions and, in New York, for young men of mortgage banking
mutual savings banks — under ——Klaman before tW
certain specified conditions, of 46^n^Jeaf convention of the Mort-

operations within the mortgage
banking field—that is by developing new types of investors and
mortgages—or by expanding into
related real estate and construe- course, — cannot you convince
tion activities. Many of you have other investors of your ability to

them Wltb individual

^nnrsp
.,

?age

Bankers

Association

New York City, Sept. 22,

1959.

America,

The Commercial and Financial Chronicle

(1502)

Aurora Plasties

Corp.

Continued
1

headed
Oct. 6
offered to quick oversubscription
225,000 shares of Aurora Plastics
Corp. common stock (par $1) at
$7.25
per
share. Of the 225,000
shares, 150,000 are being offered
underwriting

for

the

and

account

75,000

fered

for

selling

Co.,

the

tons
«

loans

bank

general

corporate

anticipated

•

are based on the weekly survey of 34 metro¬
conducted by the ATA Research Department.
The
report reflects tonnage handled at over 400 truck terminals of
common
carriers of general freight throughout the country.

plastic

coppercraft

kits,

line

tooling

sets, electronic model, kits, plastic
toys and related items,
in the

Lumber
>

United

States,

South

plant

and

located in West

Island,
Net

Its

Europe.

offices

executive

and

England,

Canada,

America

are

mills, unfilled orders
current

the

Hempstead, Long

sales

for

months

six

the

ending June 30, 1959, totaled $2,296,640 as compared to $2,326,288 for the like period in 1958.
Net earnings for the six month
period to June 30, 1959 amounted
to

$182,330

902

for

1958.

the

comparable period in
calendar year end¬

has

company

Sept.

been

29,

1959

Directors declared

closely held.
the Board of

initial divi¬

dend of 5 cents per share payable
Dec.

1959

15,

record

Nov.

stockholders

11, 1959.

The

above;

Iron

and

Commercial

Institute

Banks

will

lion

used

Oct.

20,

refund

$164 mil¬

bonds

1%%

maturing

1959.

Liabilities

With E. I. Hagen
PORTLAND,
Howe has

Oreg.

become

—

Richard

affiliated

concerns

net tons.

Tolls

the

month

Estimated

for

percentage

ago

was

the

operating rate

*20.4%

this

week's

(based

The

weekly production

has

been

ap¬

Treasurer
of
Alkow & Co., Inc., 50 Broadway,
members of the New York Stock

was

placed

A year

1,933,000

tons,

—_

KINSTON,

McCullers is

now

steel

—

Charles

Taylor Investment Company, 1105
Priental Avenue.

excess

$100,000,

with

compared

in three

lower

decline

of the

from

industry and trade groups.

in wholesaling,

100

from

retailing, and to 38 from 60 in construction, while increases

the

in manufacturing,

to 46 from 39, and in commercial

South Atlantic,

States.

walkout

and

other

labor troubles

steel walkout and other labor trouble.
statistical service said cumulative '60

threaten

and

Studebaker-Packard, and that
volume to 105,000 in October.
building continues on schedule,

the

plans

had

Corvair

been

and

were

with

most

Falcon

Chevrolet

factories

distributed by the electric light

and power industry for the week ended
Saturday, Oct. 3, was
estimated at 13,234,000,000 kwh., according to the Edison Electric
Institute.
Output increased by 356,000,000 kwh. above that of

the

previous week's total of 12,878,000,000 kwh. and showed a
gain of 1,123,000,000 kwh., or 9.3% above that of the comparable
week.

Loadings Down 12.8% From 1958 Week

Loading of revenue freight for the week ended Sept. 26, 1959,
totaled 587,079 cars, the Association of American Railroads an¬
This

was

decrease of 86,301

corresponding week in

1958, and

12.8% below the
of 152,187 cars or

cars or

decrease

below the Corresponding week in 1957.

The current level was down 0.3% from the prior
$5.93 and 6.2% below the year ago $6.30.

raw

food stuffs and

meats in general use.

It is not

cost-of-

Its chief function is to show the general trend of

food prices at the

Wholesale

wholesale level.

Commodity Price Index Declines from
Week Earlier

sugar, butter, hogs, cotton, and steel
held the general commodity price slightly below that of a
week earlier. The Daily Wholesale Commodity Price Index com¬
piled by Dun & Bradstreet, Inc., stood at 277.01 (1930-32 = 100)
Lower

•

prices

lard,

scrap

on
on

plants,

27, 1956.

were flour, corn, rye, oats,
bellies, cheese, and milk. ■ Lower in price were wheat,
butter, cottonseed oil, eggs, potatoes, steers and hogs.
The Index represents the sum total of the price per pound of

week, but below planned levels.
Production for last week totaled 91,341 cars and
22,781 trucks.

20.6%

year ago

the

living index.

said the September count included
56,449 economy
almost evenly divided between the Big Three plus American

nounced.

pre¬

barley,

model

working four days because of the steel strike and Chrysler Corp.
3V2 days due to labor trouble at its Twinsburg,-* Ohio,
stamping
plant, was held to 104,309 cars and 91,341 trucks—up from last

1958

declines

12 from 32,

Higher in wholesale cost this week

"Ward's"

car

year-to-year

Atlantic Region, down to

South

Wholesale Food Price Index, compiled by Dun & Bradstreet, Inc., fell fractionally this week to hit a new low for 1959.
At $5.91 on Sept. 29, it was at the.lowest level since the $5.89 of

October Auto Output

The

cars,

considerable

Wholesale Food Price Index Hits New 1959 Low

"Ward's" said the auto plants operated at 95% of
planned
output in September by building 258,157 cars, but may attain only
50% of the 640,000 completions scheduled for October because
of the

in the

most

Region, down to 12 from 25. Failures were above
East North Central States, up to 44 from 42,
unchanged at 8 in the West North Central States.
in

weekly production

average

The

tral

March

Car

connected with

liabilities

earlier.

were

was

week's

Joins Taylor Staff

(Special to The Financial Chronicle)

the

in the
Pacific Region, down to 51 from 76 and in the West South Cen¬

ago

Electric Output 9.3% Above 1958 Week

connected with Goodbody
Co., 217 South Church Street.

182

car

The amount of electric
energy

are now

The most significant decreases were
Pacific, and West South Central Regions.
contrast, casualties edged up in, the West North Central and
East South Central States.
Failures were below a year ago in all
regions except for the East North Central and West North Cen¬

cut

Two With Goodbody
CHARLOTTE, N. C. —Burton S.
-pavis III and Allen D. Moore, Jr.

incurred

curred from the prior week.

forecast

Exchange.

(Special to The Financial Chronicle)

of prewar 1939.
$5,000 or more were

The

Production

Assistant

the

output to 50% of the scheduled record level and seri¬
ously impair 1960 model dealer sampling, "Ward's Automotive
reports" said on Oct. 2.

October

small

Brotman

Brad-

up to 22 from 17.
Year-to-year declines occurred in all
industry and-trade groUps, most noticeably in retailing,
manufacturing and wholesaling.
In seven of the nine major geographic regions, declines oc¬

1947-49 weekly

and production 327,000 tons.

Labor Strife to Halve Scheduled

double

Phineas

week

service,

for 1947-49.

Motors

pointed

had

week

vailed

actual

Building.

Now Asst. Treasurer

There

12.9%.

E. I. Hagen & Co., American Bank
^

in the

Dun

failures, compared with 247 in the prior week and 245 a
Smaller failures, those involving liabilities under $5,000
rose to
42 from 35 in the previous week, but were moderately
below the 56 of the similar 1958 week.
Eighteen of the failing

tral

with

224

year ago.

production
—July 6 to Oct. 1—-totaled 276,675 cars, or fewer than eight per
dealer, with GM Corp. taking 55.1%, Ford Motor 18.8%, Chrysler
Corp.
12.9%, American Motors 7.3% and Studebaker-Packard
Corp. 5.9%.

(Special to The Financial Chronicle)

week's

633,670
is

*Index of production is based

of¬

are

fell

earlier, reported

Being Offered

Federal Land

similar period

the

industry began Wednesday, July 15.]
Actual output for the week beginning Sept. 28 was equal to
12.8% of the utilization of the Jan. 1, 1959 annual capacity of 147,-

the

fering today, Oct. 8, a new issue
of approximately $164 million of
5% bonds dated Oct. 20, 1959 and
maturing Jan. 5, 1960. Priced at
par, the new issue is being of¬
fered
through
John
T.
Knox,
Fiscal
Agent and a nationwide
selling group of securities dealers.
Proceeds
from
the
financing

week

Inc.
Casualties were noticeably below a year ago when
occurred, and were down moderately from the 261 of the
similar 1957 week.
There was a decline of 20% from the 279 of,

*120.3%.

Bonds

282

301

occurred

that

failures

industrial

and

from

Dip in Latest Week

street,

economy

announced

Oct.

ended

12.9% of Capacity

Steel

Business Failures

136 in

American

Compared with the corre¬

orders were 8.9% above.

new

1958 production of reporting mills was 2.3%
below; shipments were 16.1% below; and new orders were 10.0%
below.
.-.'.'C.
'

is out *
quarter still shapes

year-to-date, shipments of reporting identical mills
production; new orders were 0.5% above pro¬

above

sponding week in

steel

The

1.2%

Compared with the previous week ended Sept. 19, 1959, pro¬
mills was 2.4% above; shipments were 1.2%.

year.

but

Output Based

equivalent to 18 days' production at
stocks were equivalent to 42 days'

duction of reporting

But the number

that the half trillion dollar

concerned,

gross

duction.

operating rate of the steel companies will average *22.7% of steel
capacity for the week beginning Oct. 5,'"equivalent to 365,000
tons of ingot and steel castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual rate of 22.5%
of
capacity and 362,000 tons.a week ago. [ED. NOTE: A strike in the

production)

Federal Land Banks

Steel

the

For

1959

were

and

rate,

the

For
were

the fourth
up as the best quarter in history.
Steel users, once assured of
new supplies in the
reasonably near future, will go ahead full
steam with what they have.
Last week, steelmaking operations climbed to 13% of capacity,
two-tenths of a point above the previous week's revised rate.
Output was about 368,000 ingot tons.
as

compared to $161,-

ing Dec. 31, 1958, net sales totaled
$4,681,857 and net earnings for
the same period totaled $305,104.
All
outstanding stock of the
On

far

means

production for the

below

7.6%

were

production.

Before the strike, it was
generally believed that 1959 production would equal or exceed
the record 117 million tons poured in 1955.
*
The strike

Barometer

Trade

1959. In the same week new orders of these'
mills were 6.3% below production. Unfilled orders of reporting
mills amounted to 38% of gross stocks. For reporting softwood

amount to $4,343,200,000
($853,200,000, lost sales ($2,478,-

to hit 95 million tons this

shipments

week ended Sept. 26,

000,000), other losses ($472,000,000), and tax losses to U. S. ($540,000,000).
Add
the indirect losses, and
the total could easily reach
$6.5 billion.
Lost steel production amounts to 23,497,300 ingot tons through
today. If the mills reopen by Oct. 15, look for steel ingot pro¬
duction

Shipments Down 16.1% From 1958 Week
of 466 mills reporting -to the National

Lumber

extensive

an.

hobby

areas

Lumber

laid off among steel users is growing.
Direct losses through Oct. 5 will

Aurora
sells

tonnage

—mostly in coal mining and railroad industries.

stock

and

truck
of the

These findings

politan

the 500,000 steelworkers who struck, another esti¬
175,000 have been laid off as a direct result of the strike

through lost steelworkers wages
1950,

tons.

heavy

mated

stockholders.

million

Besides

purposes.

manufactures

declared.

offered for the account of selling

Organized

million, to

in the week ended Sept. 26, was
7.5% ahead
corresponding week of 1958, the American
Trucking Associations, Inc., announced.
Truck tonnage was 1%
ahead of that of the previous week of this year.

poststrike demand and active ex¬
y
;
The steel stoppage—the strike that nobody wanted—is the
most expensive in the industry's history, the metalworking weekly

will receive no part
of the proceeds from the sale of

Plastics

because

The company

the 75,000 shares of common

minimum

working

ports.

17, 1959. The balance of approxi¬
mately $261,000 will be utilized
for

Week

Intercity Truck Tonnage 7.5% Above 1958
Intercity

Many stocks are out .of balance.

Getting in an adequate supply of iron ore for the winter will
require all the ingenuity that shippers can exercise. They have
lost three months' shipments out of the heart of the iron ore season.
With iron ore supplies limited, steelmakers may increase the
percentage of scrap in their melts. Last week,' "Steel's composite
on No. 1 heavy melting grade jumped $2 a gross ton to $43.
The
composite has risen $4.50 in the last 30 days over August's average

Dec.

due

the average, six weeks from the time

better of their shipping capacity.

materials.

the sale of
being offered
by the company will be approxi¬
mately $936,000 of which approxi¬
mately $150,000 will be used for
the purchase of additional equip¬
ment, and approximately $225,000
for the purchase of additional in¬
ventories
of
raw
material, and
$300,000 for the repayment of

short-term

Starting up the mills takes time. Steelmen have to repair
which deteriorated during the long walkout and gradu¬
ally bring ovens and furnaces back to producing temperatures.
Production men will be on the spot in allocating semifinished

proceeds

150,000

Industry

facilities

of¬

certain

stockholders.
from

Net

the

in the week of Sept. 26, were 8,839 cars or 1.5%
preceding week.
It is estimated that about 165,000
additional cars would have been loaded in the current week if
there had been no steel strike.
Based on these week-to-week
estimates the cumulative less is now approximately 1,665,000 cars,

During this period, there will be one of the greatest scrambles
by steel consumers for mill products that this country has ever
seen.
Inventories have fallen from a record high of 26 million

company,

being

are

account

need,

of settlement to hit 90%

1959

Thursday, October 8,

the

above

5 ;

page

Steel mills will

group

Burnham and

from

Loadings

The State of Trade and

Offer Oversubscribed

October 5, compared with 277.23 in
the corresponding date a year ago.

the prior week and 278.64

Despite fears that the strike of dock workers on the Atlantic
and Gulf coasts would hurt export trade, most grain .prices edged
up in the latest week.
Wheat prices moved up moderately as
supplies were light and domestic buying expanded. There was a
slight gain in rye prices as stocks in some markets were limited
and purchases were sustained at high levels.
Delayed harvesting, limited supplies, and increased buying
boosted corn prices noticeably during the week.
A moderate rise
in oats prices occurred, reflecting a rise in activity. There was a
marked rise in soybeans prices as harvesting was slowed up by
unfavorable weather conditions.

ciably higher than
The

Trading in soybeans

was appre¬

week earlier.

pier tie-up encouraged trading in sugar somewhat, but
prices slipped below the prior week. Flour prices were un¬
changed, but transactions moved up moderately; sizable exports
of flour to Indonesia are expected shortly.
Rice wholesalers reported a marked rise in both domestic
buying and buying for export this week, and prices remained at
prior week levels. Negotiations were pending for sales of sizable
quantities of rice to Indonesia, India, and Japan. The buying of
coffee remained close to a week earlier and prices were steady.
Following gains made at the beginning of the week, cocoa prices

Volume

190

Number 5883

The Commercial and

fell at the end of the period.
level of the preceding week.

Cocoa trading

was

Financial Chronicle

sustained at the

and the

Congress' Failure

Although hog receipts in Chicago moved up during the week,
trading was sluggish and prices were down somewhat. Trans¬
actions in steers dipped somewhat on lower saleable
supplies;
prices remained at prior week levels. There was a moderate dip
in lamb prices as volume
slipped somewhat.
.

Prices

the

New

York

(1503)

Cotton

Exchange dipped at the
end of the week and finished
fractionally lower than a week
earlier.
For the current season through September 25 the Com¬
modity Credit Corporation reported that it purchased about
798,000 bales of the 1959 crop.
•
v

Although hot humid weather in many areas discouraged con¬
buying in the week ended Sept. 30, over-all retail trade was
moderately over a year ago. The effects of the steel strike

blamed by some retailers for declines from last year in sales

were

big-ticket appliances, but purchases of apparel, furniture, and
floor coverings showed moderate increases. Scattered
reports indi¬
cate that sales of new
passenger cars dipped from a week earlier,
but marked gains over last year were sustained.
The total dollar volume of retail trade in the week ended this

Wednesday

was

to 6%

higher than

year

ago,

according to

spot estimates collected by Dun & Bradstreet, Inc.
Regional esti¬
varied from the comparable 1958 levels by the
following
percentages: Mountain and Pacific Coast +6 to +10; East North
Central +3 to +7; South Atlantic +2 to
+6; Middle Atlantic and

mates

West North Central +1 to +5; New England and West South Cen¬
tral 0 to +4; East South Central —2 to +2.

While the hot weather Curtailed volume from the prior week
in women's Fall and Winter coats and
suits, purchases of sports¬
and

dresses

were
sustained at high levels holding over-all
appgrel moderately over last year.
The buying
of men's topcoats and suits remained close to a
year ago, but the

wear

sales of women's

call

for

furnishings and sportswear was up appreciably;
There
were
substantial year-to-year gains in children's clothing, espe¬
cially girls' sweaters and skirts and boys' jackets and sports shirts.
Except for

slight year-to-year increase in purchases of tele¬
vision sets, appliance sales were down
moderately. Furniture sales
slipped from the prior week, but appreciable gains over last year

Continued from page 5

fourths

Except for

debt

affected by

the
strike, output is expanding

steel

nearly

have

areas

sector --of
our
We now have a heavy
every

economy.
demand

for credit.

moved

Interest

rates

response

somewhat.

than

are

wholesalers

reported

slight rise in trading in canned
goods this week, after several weeks of sluggish activity. Although
the call for flour, eggs, sugar, and poultry was down
somewhat,
a

butter, and cheese expanded somewhat.

appliance production, wholesale volume in laundry equip¬
ment, refrigerators, lamps, and television sets moved up notice¬
ably during the week. Furniture sales remained close to the prior
week; best-sellers were case goods, bedroom sets, and upholstered
ags on

chairs.

Despite higher prices on some items, wholesalers were
pleased with volume at the National Hardware Show in New York
City; substantial gains over a year ago occurred in sales of bar-

becue

goods, power

marked

rise

There

was

and

coats

the

call

for

aluminum

furniture.

While

linens

occurred purchases of floor
unchanged.
appreciable dip in re-orders for women's Fall

suits

and

mowers,

coverings and draperies

were

this week in

of the

Fall

and

suits

sluggish, while the call
for furnishings and sportswear was
steady.
Overall trading in
men's apparel was close to a year
ago.
The buying of children's
clothing suitable for Christmas selling moved up moderately from
/the prior week and slight year-to-year gains occurred.
Most

textile

Transactions

mills

reported

woolens

and

decline

in trading this week.
slipped and bookings in

worsteds

were sluggish..
Except for some scattered orders for
broadcloths, volume in cotton gray goods fell appre¬
ciably from the preceding week.
There was a slight decline in

lawns

and

purchases of industrial fabrics

and

man-made

fibers

during the
week. Incoming orders at mid-Atlantic
dyeing and finishing plants
picked up slightly.

Nationwide Department Store Sales Up 7% for

September 26 Week
Department store sales
f

the

country-wide basis

Federal Reserve Board's Index

increased

above

for

the

week

taken from

ended

Sept.' 26,
the preceding

the

like period last year.
In
increase of 16% was reported. For the four
weeks ended Sept. 26 an 8% increase was
registered and for Jan. 1
to Sept. 26 a 7% increase was noted.

week, for Sept. 19,

1
.

According to the Federal Reserve System department store
sales in New York City for the week ended
Sept. 26 increased 8%

the like period

over
,

lower

secure

June:

responsible government,
the choice between high levels of

20% increase

was

last

shown.

gain

over

the

period

same

Sept. 26 showed

In the preceding week Sept. 19 a
For the four weeks ended
Sept. 26 a. 5%

year.

1958

was

recorded

and

Jan.

increase.

opposed

low

interest

rates

is actually no choice at all. Stated

differently, high interest rates
not

end

they

are

themselves; rather

the usual accompaniment

are

the active

credit

demands that

characterize expansion in produc¬
tion

employment
Finds the

Thus

the

between

vigorous, growing economy. The
choice, it seems to me, is obvious.
The Treasury,

unable to spread
borrowing at competitive rates

interest among short, interme¬
diate and long-term obligations, is
forced

now

market.

Babson, Kaye in NYC

Managers of the Florida branch
of the

firm

ment

gather

world-wide
Bache

the

invest¬

Co.

Americana

will

Babson
an

office

York

Kaye
32

Co.

has

into
for two

place,

Broadway, Yonkers, N. Y., being

meetings will

Thursday,

Saturday, Qct. 10.

the

In the

long-term bond is

only

few steps away from being
money.
It can be sold easily in
a

the

branch.

Arthur Marx
Arthur
Asiel

Marx,
&

Co.,

limited partner in
New
York
City,

passed away Sept. 29.

the

same

undertaken

ing

and

frequently

and

and services, or
simply wait a few
weeks until it matures,

days

demand

goods

cash

from

the

Treasury,

spend the proceeds.

make

much

larger

banks
part

Treas¬

securities than they do for
long-term issues. When banks buy
securities they create in the proc¬
ess new deposits, and this adds to
ury

the money supply.
when

An expanding
during a period

supply,

money

pressures

economic

re¬

intensifying,
adds
inflationary forces.
The handling of our $290 billion
debt in a manner which is clearly
and decisively inflationary is bad
enough, but that's not all.
Sole
reliance on short-term borrowing
is
costly today, because interest
sources

are

momentum to

most

securities

years' maturity

those

would

that

all

borrowing

interest rates in that

of the market.'
the

The fact

short-term market

is
al¬

ready overcrowded, reflecting the
impact of record credit demands
on

the

least, would not be a desirable ar¬
The Congress has in
put the Treasury in this
same sort of position.
effect

It has been alleged that the re¬
of the 41/4% ceiling would

moval

raise interest rates:
not the case.

that

the

under

raise

both

issues.

here

and

abroad

addition

being

inflation¬

and

con¬

small

interest

rates

Those

invest

who

investors

fixed-dollar

obligations—rather than in stocks
demand
higher
interest
rates to compensate for their ex¬
pectation of a shrinking purchas¬
ing power of the future repay¬

—will

ments of

principal and interest.

Interest

rates

determined

are

Those

moving

the

who

that

feel

re¬

4*4%

ceiling would
raise rates need only look to the
market
for
shorter-term
issues,
where no ceiling
applies. For ex¬

ample, Treasury 91-day bill rates
i«

competitive

have
the busi¬

market

moved up and down with

cycle—up to almost 2/2% in

ness

1953, down to five-eighths of 1%
year later; up to 3%% in 1957,
five-eighths of 1% in mid-

down to

1958,

and

the

around

from

than

4%
has

again to over
5-year rate

Even

now.

the last 5

within

The

refusal

Congress to

act

area—despite the clear-cut
pressing need for action—is

effect

renewal

the

old

conflict between the advocates
soft

rates

pegged

and

money

who

those

versus

solidly for sound

interest

debt

the

least inflationary
actually work for
lower—not higher—interest rates.

would

convinced

are

borrowing

that

area

us—short-term,

and

the

was

open

intermediate,

long-term—we could be bor¬

rowing

some

each

these

spreading our indebtedness,
taking advantage of the funds
areas,

available in these
better

less

areas

job and, it
than

cost

quired

pay

ceiling which
kept in effect.
These

and

will

doing

well be,

may

re¬

because
of
the Congress

the

has

technical matters; but
matters of the, greatest

are

they are
importance
people.

the

American

special

to
August 25, the Presi¬
pointed to the debt manage¬
ment proposals as the most im¬
portant issue to come before the

Congress

message

dent

Congress

during the

session

just

ended.

are

the

now

in the midst of

greatest

since

the

one

monetary debates

campaign

days

Williams Jennings Bryan. In .1896
the

people of this country voted
for sound money and a stable cur¬
rency. Once again, apparently, the
must

acquainted

with

the facts about money.
They must
choose between artificially low in¬

terest rates created by soft
money,
and the inflation that
results, or
the flexible interest rates that
essential

stand

avoided

healthy,

This Adminis¬

the

are

inflation

and

growth

long-lasting,

and

re¬

warding.

tration is dedicated to the propo¬
sition
firm

that

sound

foundation

fective

which

the
ef¬

there

program
believe that

based.

fundamental

capable

duty

the

financial

power

dollars

savings

American people.

the

to 7 use

its
to protect the
of the billions

powers

purchasing

ines¬

and

part

Government

Federal

is
an

money

anti-inflationary

must

the

*An address by Mr. Scribner before the
136th
Quarterly
Meeting
of
the
New
England Council, Pike, N. H., Sept. 18,
1959.

Chapman Valve
Mfg. Co. Sells Assets
To Crane Co.
It

announced

was

Identifies the American Saver

Eberstadt

nancial

American

The

saver

not

member/of
a
special
interest
group; he is the man who owns
one
of the 22,000,000 accounts in
mutual savings banks, one of the
25,000,000 accounts in savings and
loan

associations,

one

Valve

advisor

Oct.

Co.
to

5, that

acted

The

fi¬

Chapman

Manufacturing Co. in

con¬

the

nection

with

the

sale

latter's assets and business to the
Crane Co.

Richard H. Sprayregen

the

37,000,000 savings accounts in

Richard

commercial

the

banks.

one

40,000,000 Americans who

the

He is

with

112,000,000
life

own

of the

one

savings

insurance

that the

one

will

fixed

not

power

his

assurance

whittled

softest

the

Sprayregen,

Campbell, Robbins

(Special to The Financial Chronicle)

PORTLAND,

Oreg.

—

printing

staffs

Campbell & Robbins, Inc., U. S.
National Bank Building.

are

Foster & Marshall Adds

away

money

is,

press money—

the Continental currency

Revolutionary ~War

Donald L.

White has been added to the
of

(Special to The Financial

kind

partner

of the

wages

inflation.

The

entitled
which

Joins

are

purchasing
in

dollars

who

Sprayregen & Co., New York
City, passed away Sept. 24 at the
age of 38 following a long illness.

the

benefici¬
aries
of
non-insured
pension
plans. He may also be a man who,
when his employment contract is
14,000,000

such

three-

the

way,

and flex¬

money

ible interest rates,.

removal

ceiling on new issues of
long-term Treasury bonds, by permitting the Treasury to manage

people

years.

in this

of course,

almost

Consequently,
4*4%

by the effect of changing market
forces.

credit. Thus, the

money

up.

contributes

Nothing
strongly to forcing
upward as fear of

seek

for

rises and the
supply subsides. Interest rates go

future

Currently

demand

whole

businesses,
Treasury financing wholly in the
short-term range can only add to
problems of debt manage¬

rowers

the

serve

future value of the dollar.

settled,

costly, and unfair to private

ment.

ceiling could
apprehension

present
increasing

form

Refinancing Headache

sumers

The inflationary as¬

Savings Bonds.

has to borrow exclusively

This is simply

pects of debt management policy

of consumers, small
and other short-term
This
overcrowding

get pinched, so long as the Treas¬

ary,

refinance

rangement.

somebody is going to

part

short-term

forced

mortgage, if he could, each
time it came due, and under what¬
ever conditions might be prevail¬
ing at that time. This, to say the

higher

segment of the market tends

drive

one

that

confinement'of

part

down—in

puts out in this way is a
high-powered
dollar,
providing
the basis for a $6 growth in the
money supply. Such action would
spawn the very inflation that ul¬
timately
shoots 7 interest
rates
through the ceiling. Fear of in¬
flation discourages investors from
buying bonds; it encourages bor¬

less

are

longer-term issues.
It is only common sense that the

rates

that was done dur¬
after * World
War
II.

way

Every dollar that the Federal Re¬

and

commercial

market for short-term

one

interest

comparable

can

Secondly,

than

keep

greater amounts.

than

fluctuated

for

the holder

the

highly

inflationary practice of supporting

spend

and

turn to the discredited and

the prices of Government bonds—»

market, at or about its re¬
demption pride, to obtain funds to

short-term borrowers such

clients, it has
yesterday.
The

Oct. 8 and will be terminated

evening of

continued

open

short-term

reasons.

investment instrument, but a
short-term
Treasury security is

City. This will be the firm's

main office, the office at 222 North

announced

its

New

Hotel,

been

the

all

true

ury

opened

Broadway,

Miami Beach, for a three-day ses¬
sion devoted to discussions on im¬

proving service

crowd

This adds to inflationary

pressures

means

offices

borrowing

first

who advocate

many

the short-term debt will
grow, and
future refundings of
maturing issues will have to be

into

piled

area,

want

levels of rates that characterize

businesses,

Meeting

years.

debt

inflation.

Choice Obvious

choice

the

income."

and

abnormally
low
interest
rates
spawned by recession and unem¬
ployment and the somewhat high¬

borrowers.

Bache Sales

public

five

within

are

what is in essence the same thing.
These people believe that the Fed¬
eral Reserve System should re¬

this

business activity and employment
as

rates

one,

was

carpet wool

•

Treasury Anderson testified

"For

most

wholesale markets, with many
blaming warmer weather for much of the lag. Interest
dresses and sportswear matched that of a week earlier.

Volume in men's topcoats

said, "Well, let's
conditions."

believe, wishes to

wholesalers

1957

With buyers becoming concerned over the effect of steel short-

interest rates through bringing on
another
recession.
As
Secretary

its

volume in fresh meat,

and
the
price of
has inevitably increased.

It has been
back

goods.

lenders

money

products offset declines in canned goods, frozen foods, and baked
Food

marketable

the

The situation
that might
buyers than sellers and the
product is one of universal appeal, be faced by an individual with a
prices will
inevitably increase. mortgage on his home that ma¬
Now, there are more borrowers- tured every two or three years—
there

When

Consumer buying of food products remained close to the
pre¬
ceding week. Gains in fresh produce, fresh meat, and some dairy

matures

today is an outright
printing press money.

one

advocate of

demand.

occurred, especially in living room chairs and bedroom sets. There
was a substantial gain from
the similar 1958 week in volume in
floor coverings.
While interest in linens and draperies was down

"greenbacks" of the Civil

But there

sumer

to Act on

The Most Important Issue

this

Retail Trade Up Over Year Ago

War.

days

Chronicle)

PORTLAND,, Oreg. —William
Markham
Foster

joined the staff of
Marshall,Southwest

has

The Commercial and Financial

(1504)

Chronicle

Thursday, October 8, 1959

* INDICATES

ADDITIONS

SINCE- PREVIOUS
•

•

Abbott-Warner Co., Inc.
(letter of notification)
stock (no par).
Price—$2.70

• American

Aug. 12

62,500 shares of

common

per share.
Proceeds—To
prepare estimates and to submit bids, as a prime con¬
tractor on specialized construction
projects. Office—123
Denick Ave.,
Youngstown, Ohio. Underwriter—Strathmore

Securities, Inc., 605 Park Bldg., Pittsburgh 22, Pa.

Acme Missiles

& Construction

Corp.

(10/12)
July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for
public sale
Jor the account of the
company, and 50,000 shares will be
offered for the accounts of the
present holders thereof.
Price—$6 per share. Proceeds—For general corporate
purposes, including additional personhel, office space,
-equipment, and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
Road, Oceanside, L. I., N. Y.
Underwriter— Myron A.
Lomasney & Co., New York.
;
"

•^Aeronautical Electronics, Inc.
Sept. 21 (letter of notification) 78,350 shares of

common,

(par $1) to be offered for subscription by stock¬
holders of record Oct. 1, 1959 for one full share but not
in excess of five shares.
Rights expire 30 days after of¬

fering.

Price—To be supplied by amendment. Proceeds
—For construction,
purchase of inventory and additional
working capital. Office—Raleigh-Durham Airport, P. O.
Box 6527,
Raleigh, N. C. Underwriter—None.
.

Aircraft

Dynamics International Corp.
Sept. 25 (letter of notification) 100,000 shares of. com¬
mon stock (par 10
cents). Price—$3 per share. Proceeds
—For general corporate purposes.
Office—229 S. StateStreet, Dover, Del. Underwriter—Aviation investors of

America, Inc., 666 Fifth Avenue, New York 19, N. Y.
Airtronics

International Corp. of Florida

Aug. 31 (letter of notification) 109,090 shares of common
stock (par 10 cents).
Price—$2.75 per share.
Proceeds
—To be used to pay off loan and increase working cap¬
ital.

Office—Fort

Price—Tobe supplied by amendment.
Proceeds—Will go to sell¬
ing stockholder, Electric Bond & Share Co. which upon
completion of the offering will hold 52.3% of the total
outstanding stock of American & Foreign Power Co.
Underwriters
Boston

Lauderdale, Fla. Underwriter—Frank
Beach, Fla.

B. Bareman, Ltd., Palm

Lazard

—

Freres

Co.

The

and

Corp., both of New York.

First

it American Heritage Life Insurance Co. (10/28)
Oct 5 filed 360,000 shares of common stock (par $1).
These shares will be exchanged for 57,492 of the 57,500
shares of the outstanding stock of Reliable Insurance
Co.
The new shares will be subsequently, offered to
the public.
Office—218 West Adams Street, Jackson¬
ville, Fla.
Underwriters—Merrill Lynch, Pierce, Fenner
&
Smith Inc., New York,
and Pierce, Garrison,
Wulbern, Inc., Jacksonville, Fla.
Investors

American
June

stock

•

Foreign Power Co., Inc.
shares of common stock.

Oct. 7 filed 225,000

filed

Syndicate,

600,000 shares of

Inc.
stock

common

(par

cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in units consisting
of 3 shares of common ($1 each) and 1 share of pre¬
ferred

($9).

struction

Price—$12 per unit.
Proceeds—For con¬
related expenditures.
Office—513 Inter¬

and

national Trade Mart, New

Orleans, La.
Underwriter—
New Orleans, La. The SEC
had scheduled a hearing, to begin on Sept. 2, which will
determine whether a stop order will be issued suspend¬
ing the offering.
Lindsay

•

Securities Corp.,

American

Motorists

Sept. 22 filed 166,666% shares of Capital stock (par $3),
to be offered to holders of outstanding shares of such
stock of record Oct. 26, 1959, in the ratio of one new
share for each eight shares then held; rights to expire
on or about Nov. 27. Price—$12 per share/ Proceeds—To
raise

the ratio

capacity,
4750

ol its capital stock, surplus, and surplus
premium writings, to inci'ease underwriting

reserve

American

Alaska

for

and

general

Sheridan Road,

corporate

purposes.

Office

—

Chicago, 111. Underwriter—None.
Life

Service

Insurance

Co.

Consolidated Oil Co., Inc.
17 filed 3,000,000 shares of commpn stock (par
five cents).
Price—$2.50 per share. Proceeds—For fur¬
ther development and exploration of the oil and gas po¬

Sept. 14 filed 375,000£?hares of common stock, of which
300,000 shares are to be publicly offered. Price—$3.50
per share.
Proceeds—For general corporate purposes,

tential

including, possibly, the acquisition of similarly engaged

Sept.

the

company's Alaska properties. Office—80
Wall St., New York.
Underwriter—To be supplied by

amendment,

Offering—Expected

about

six

eight

Co., Washington, D. C.

weeks.
•

Alaska

Mines

Metals

companies. Office—113 Northeast 23rd Street, Oklahoma
City, Okla.
Underwriter-—First Investment Planning

•

Inc.

filed

108,144 shares of class A stock (par $1)
limited voting, being offered for subscription by holders
of outstanding class A and class B stock
(par $1), at

ot 6% debentures due 1962 issued
by
Minerals Ltd.; the company's parent

the rate

class

and

DeCoursey-Brewis

(payment for the
thares by such debenture holders
may
be made by
-delivery of debentures at par plus interest with premium
for Canadian exchange rate).
Purchasers will receive
^common stock purchase warrants on all
shares purchased
for cash

rate of

one

for the 6%

debentures of the parent at the
for each five shares purchased.
Price—$1.25

per share. Proceeds—For general corporate purposes and
working capital.
Office—423 Fourth Ave., Anchorage,
Alaska.
Underwriter
To be named by amendment.
Statement was withdrawn on Sept. 30.
—

Alliance

Tire

Rubber Co.

Ltd.

Sept. 9 filed 100,000 shares of class A stock.
Price—$12.60
share, payable either in cash or in bonds issued
by

per

the State of Israel.

Proceeds—For expansion. -Office—
Agent — Harry E. Brager

Hadera, Israel.
Washington, D. C.
•

Allied

Associates,

Small

additional share for each four shares of

class

rights to expire
ceeds—To

Oct.

added

stock

12.
the

held

Sept.

18,

1959;

Price—$30 per share Pro¬
fwfids of the com¬

general

Office—542 North Meridan St., Indianapolis, Inc.
Underwriter—City Securities Corp., Indianapolis,: Ina
pany

Ampal-American Israel Corp.
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3?000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬
pected sometime during September.

Anglo Murmont Mining Corp., Ltd.
Sept. 1 filed 250,000 shares of common
—Initial
used

Business Investment
Corp.
Sept. 29 filed 100,000 shares of common stock
(par $8)
Price—$11 per share. Proceeds—To be used to
provide
equity capita] and long-term loans to small

one

stock.

Price

price of 40 cents per share. Proceeds—To be
pay for exploration and development of mines

Albert,

Office—Washington,

Underwriter—To

• American Boatbuilding Corp.^
Sept. 29 (letter of notification) 100,000 shares of com¬
mon stock (par 15
cents). Price—$3 per share. Proceeds
•—For additional
working capital, to pay off a notei and
for expanding and
improving the boat building business.
Office—Division Street,
Warwick, R. I. UnderwriterFrank P. Hunt &
Co., Inc:, Rochester, N. Y.
American Educational Life Insurance
Co.
(10 19-23)
h.

working capital. Office—
Saskatchewan, Canada.
Underwriter —

(nori-voting), to be
four

stock.

class

Price—$25

per

stock

unit.

and

offered

one

Proceeds—For

in
of

units

class

general

cor-

porate purposes.
Office—Nashville, Tenn. UnderwriterStandard Securities
Corp., Third National Bank Bldg.,

.Nashville, Tenn.

American

Electric Power
Co., Inc. (10/14)Sept. 9 filed 1,200,000 shares of common stock
(par $10).
Proceeds—To be applied to the retirement
of $52,000,000
of outstanding bank
notes, due Nov. 25, 1959, with any
remaining balance to be used for general corporate
pur¬
poses.
Office—30 Church Street, New York
City. Un¬
derwriter—To be determined by competitive
bidding.
Probable bidders: Blyth &
Co., Inc. and Goldman, Sachs
& Co. (jointly); Eastman
Dillon, Union Securities & Co.
and The First Boston Corp.
(jointly). Bids—Expected
to be received up to 3:45 p.m.

(EDT)

Oct. 14.

Anodyne, Inc., Bayside, L. I„ N. Y.

(10/15)

Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—For
expansion and general corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New York, N. Y.

writers
Mitchum, Jones & Templeton, Los Angeles,
Calif., and Walston & Co., Ific., New York. Offering—

Expected in about 30 days.

Anthony Pools, Inc.
Sept.

filed

200,000

—"

—

outstanding

common

stock.

Price—To be supplied by .amendment. Proceeds
selling stockholders. Office—5871 Firestone Boule¬
vard, South Gate, Calif.
Underwriter — Marron, Edens,
Sloss & Co., Inc., New York.
'
....

—To

Aug. 28 filed 400,000 shares of common stock.
Price—
To be supplied by amendment.
Proceeds—For invest¬
ment in common stocks.
Office—301 W. 11th Street,
Kansas City, Mo. Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc.
••
;
★ Audio-Dynamics Corp.
,%/%
Sept. 23 (letter of notification) 200,000 shares of

Sept. 8 (letter of notification) 241,200 shares of 5% cu¬
convertible preferred stock to be offered for
subscription by common stockholders at the rate of two
preferred shares for each three shares of common stock
mulative

chase

Price—At par ($1 per share).

inventory,

capital.

new

Proceeds—To pur¬

tools, construction and for working
E.
Firestone
Boulevard, South

Office—5871

Gate, Calif.

Underwriter—None.

ic Architectural Plastics Corp.
Sept. 30 (letter of notification) 260,686 shares of com¬
mon
stock (par $1) to be offered for
subscription by
stockholders and then to the public. Of the total shares
to be offered, 103,430 shares are under options and sub¬
scriptions. Price—$1.25 per share. Proceeds—For relocat¬
ing and improving manufacturing plant; advertising, ad¬
ditional

inventories

and

River Rd., Eugene, Ore.

Co., Inc., Portland, Ore.

working

common

stock
(par $1). Price—$1.50 per share.. Proceeds—To
purchase stores and equipment and for working capital
Office—Cafrilz Building, Suite 915-16, 1625 Eye.Street,
N. W., Washington, D. C.
Underwriter-%Balough & Co.,

Inc,, Washington, D. C.

,'/4 47'"'";7-- :-4-U-''7/

Australian Grazing & Pastoral Ce.,.Lt<L
Jan, 13 filed 4,000,000 shares of common stock.

Price—
share). Proceeds-^To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.
Office
1301 Avenue L, Cisco, Texas.
Underwriter —
(56J/4

par

cents per

—

None.

is President.-

Robert Kamon

ic Baker

Oil

Tools, Inc.
Oct. 7 filed 550,000 shares of common stock. PriceTo
be
supplied by amendment. Proceeds—To selling
stockholders.
Business
Company*»■ designs,
manufac¬
tures, and distributes a broad line of specialized tools
and equipment used throughout the world in drilling.
Underwriters—Lehma?i Brothers, New York, and Lester
Ryons & Co., Los Angeles Calif.
—

B. M. Harrison Electrosonics, Inc.
Sept. 25 filed 133,000 shares of common stock (no par),
Price—$3 per share.
Proceeds—For general corporate
purposes, including the reduction of indebtedness and
the provision of funds to assist the company's expansion

the

Mass.

civilian

market.

Underwriter—G.

Office

Nov.

—

Everett

Newton

Parks

Highlands,

Co., Inc., 52
Offering—Expected prior to

Broadway, New York City.
13.

Bank Stock Corp.

of Milwaukee
605,000 shares of common stock, to be
exchange for common stock of Marshall
& Ilsley Bank and the capital shares of the Northern
Bank, on the basis of two of the issuing company's shares

Sept.

filed

offered

for each such

Marshall & Ilsley share, and 10% of the
issuing company's shares for each such Northern Bank
share.

ing

The exchange offer is conditioned upon the issu¬

company

acquiring by exchange not less than 80%

of the outstanding shares of the other banks, which are
also located in Milwaukee, and has been approved by
the Federal Reserve Board

the condition that the

ex¬

change take place by Dec. 3, 1959.
The exchange offer
will expire on Nov.
13, unless extended. Office—721
North Water

St., Milwaukee, Wis.

Management Corp.
Sept. 10 (letter of notification) 300.000 shares of common
stock (par 25 cents).
Price—$1 per share.. Proceeds—
For working capital. Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark,
I N.

Offering—Expected in about 60 days. *

" 4

Bankers Preferred Life Insurance Co.;
Jan. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Colo.

expenses
pany.

Underwriter—Ringsby

Underwriters,

Inc.,

Denver

Bartell Broadcasting Corp.
Sept. 17 (letter of notification) 54,545 shares of capital
stock (par $1). Price—$5.50 per share. Proceeds—For
working capital and to finance expanded operations of
the company. Office—730 Fifth Ave., New York, N. Y.
Underwriter—W.
N. Y.

Anthony Powercraft

held.

Associations Investment Fund

Colo.

fhed 3,800,000 shares of class A
common stock
(par $1), (voting), and 950,000 shares of class B common

present holders thereof. Price—To be sup¬
plied by amendment.
Proceeds—For general corporate
purposes, including the provision of funds for the ex¬
pansion of Cortez Chemicals Co., a subsidiary, the addi¬
tion to working capital of the issuing company, and the
partial liquidation of its unfunded indebtedness. Office—
734 East Southern Pacific Drive, Phoenix, Ariz. Under¬

None.

business

concerns.

be supplied by amendment.

(10/21)

Bankers

and rest of the funds will be added to general funds of
the company and used for

Prince

Co.

counts of the

into

American States Insurance Co.

Aug.

1,431,200 shares of common stock (par $1),
of which 1,000,000 shares are to be offered
publicly and
421,200 shares are to be reserved for sale to'Vthe holders

Feb. 25 filed

Chemical

Fertilizer

ISSUE

REVISED

Sept. 24 filed 100,000 shares of common stock (par $2.50)
of which 75,000 shares are to be offered for the account
of the issuing company, and 25,000 shares for the ac¬

Co.

Insurance

Arizona

ITEMS

capital.

Office—1355

Underwriter—Zilka, Smither &

•

W. Schroeder & Co., Inc., New York,
Offering—Expected during the middle part of Oct.

Barton's

Candy Corp.

Sept. 28 filed 175,000 shares of common stock
of which

150.000 shares

are

to be

(par $1),

publicly offered. Price

—To be supplied by amendment.

Proceeds—For general
corporate purposes, including the financing of accounts re¬
ceivable, the provision of funds for new machinery and
equipment, for construction of new stores and improve¬
ments of present outlets, and for working capital^ Office.
—80 DeKalb Avenue, Brooklyn, N. Y.
Underwriter—
D. H. Blair & Co.
Offering—Expected in three to six
weeks.
Jfc

Sacir

nf j

In#*

1,200,000 shares of com¬
cents per share.
mining expenses. Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex,
Underwriter
Hyder, Rosenthal & Co.. Albuquerque,
N. Mex. Letter became effective on Sept. 21.*
j
April 9

mon

(letter of notification)

stock

(par

Proceeds—For

—

cents).

Price—25

Volume

•

190

Number 5888

The Commercial and Financial Chronicle

BBM

Photocopy Manufacturing
(10/12-16) v ;•

•

Corp.

Aug. 27 (letter of notification) 100,000 shares of capital
stock (par five Cents). Price—$3 per share. Proceeds—
For general:corporate purposes. -Office—42 W. 15th
St.,
New York, N. Y. Underwriter—Myron A.
Lomasney &
Co., New York. N. Y.
Beckman

Instruments, Inc.
Sept. 25 filed 117,559 shares of common stock, issuable
upon exercise
of options granted and to be granted
under the company's Restricted Stock Option Plan. Of¬
fice—2500 Fullerton Road, Fullerton, Calif.
Berens iteai Estate Investment Corp.
July 31 filed $1,200,000 of 6%% debentures,

due 1069,
80,000 shares of common stock (par $5). Price—$500
per unit, each unit to consist of $300 of debentures and

and

20 shares of

ital.

Proceeds—For working cap¬

stock.

common

Office—1722 L Street N. W., Washington, D. C.

derwriter—Berens Securities Corp., same address.

•;

Un¬

Vv.

(1505)

•
Beverages Bottling Corp.
July 6 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds-—
For construction or purchase of additional facilities foi
the manufacture, warehousing and distribution of bever-~

construction

thereon, and for the manufacture

stallation

necessary

ages.

Texas.

Office—800 St. Anns Avenue, Bronx, N. Y.

derwriter—Financial

tln-

Procedures, Inc. (10/13-16)
100,000 shares of common^ stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
expansion and additional working capital. Office—Los
Angeles, Calif. Underwriter—Shields & Co., New York.

held.
For

•

Roiling Mills, Inc.
Sept. 14 filed $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due Oct. 1, 1974, and 210,000
shares of common stock ($2.50 par), to be offered in
$50 principal amount of debentures

stock.

common

Price

—

and

Boston

V-

October 8

(Thursday )

Pantasote

(Auchincloss,

Parker & Redpath)

$1,200,000

Manchester Bank of St: Louis (Mo.)
v

Common

(Offering to.stockholders—underwritten by G. H. Walker & Co.)
' '

;

five

supplied by

45,000

;

—....

<S«hweickart

Simon
(J. S.

Hardware

Co.)

(J.

debt.

Office—182

;

Inc.)

•

MCA, Inc.

Co.

BBM

Co.)

Common

$1,200,060.

Photocopy Manufacturing Corp
(Myron

Lomasney

Co.)

Common

$300,000

Biochemical Procedures, Inc.—

•

(Shields

Camloc

Fastener
(Van

Dow

Co.;

Co.)

Corp.)

(Milton

Co.,

Inc.)

50,000

Common

Co.,

Inc.)

Treat

Lomasney

Inc.

Co.,

Co.)

..Common
Dallas

and

Rupe

Sons,

Inc.

Co.,

and

Gas

Wasserman

Oil

..Common
120,000 shares

."fe

Co.;

Brothers)

$550,000

.Common

(Lehman Brothers)

5,500

(Bids

(Bids 3.45 p.m. EDT)

(Kidder,

invited)

$50,000,000

Deane & Scribner)

October

Anodyne, Inc.

.Common

Co.,

$300,000

Inc.)

Chadbourn

Gotham, Inc

Daitch

Dickson

(R.

Dairies,

Crystal

(Hirsch

Electro-Sonic

(Blair

Gold Medal

Sherman

Industries,
(Blair

(Bids

Northern

& Co.,

Co.,

...Bonds
..Common

Inc.;

(Merrill

85,000

(Wednesday)

Pierce,

Lynch,

Pierce,

Garrison,

Fenner

Wulbern,

<Sr

Inc.)

Smith,

Inc.

invited)

Bonds

$20,000,000

Therm-O-Disc, Inc.
(Goldman,

Sachs

(Goldman,

'Wisconsin

and

McDonald

Co.)

121,057

■

(Thursday)
.Common

a.m.

190,000

Co.)

Service

(BidSril

..Bonds

EST)

$8,000,000

November

Common
shares

Preferred

(Paine,

Acceptance

$600,000

(Wednesday)

Corp.

Debentures

Webber, Jackson & Curtis and Eastman
Union Securities & Co.)

November 17

Dillon,

$10,000,000

(Tuesday)

$20,000,000

American Telephone & Telegraph Co.
16

October

(Bids

(Friday)

200,000

Corp.)

October 19

(Monday)

Montreal

(City of)

Corp.)

(No

4,750,000 shares

Canada.—

underwriting)

Key Co....

—Debentures

(C. E. Unterberg,

$20,000,000
...

Common

Towbin Cq.) 200,600 shares

(Tuesday)

Gulf States Utilities Co.
11

a.m.

Co-Ply, Inc.

Price
Proceeds—To purchase the
mill and related facilities of Durable Plywood Co. for
$690,000, with the balance to be used for working capi¬
tal. Office—Calpella, Calif. Underwriter—The offering
is to be made by Ramond Benjamin Robbins, one of the
nine promoters, the list of which also includes Harry
Ernest Holt, of Eureka, Calif., President of the company.
Sept. 14 filed 140 shares of voting common stock.

—At par

•

($5,000 per share).

Camloc

Fastener

Corp.

(19/12-16)

—

Office-—22

Bonds

shares of common stock, to be
reserved for issuance upon the exercise of warrants is¬
sued by the company in 1953. These warrants entitle the
holders thereof to purchashe, on or before Dec. 1, 1960,

(Tuesday)

Invited)

December 8
Louisiana Ga"

stock (par $2).

$9 per share. Proceeds •— To selling stockholder/
Spring Valley Road, Paramus, N. J. Under¬
writer—Van Alstyne, Noel & Co., New York.

Price

$16,600,000

EST)

Consolidated Edison Co. of New York, Inc.
/Bids

(subject to

Bonds

December 1

•

National

Debens.

$250,000,000

received)

November

(Bids

American Educational Life Insurance Co...Common
(Standard Securities

Sept. 11 filed 150,500 shares of common

Union Fire Insurance Co——Common
(Offering to stockholders—Underwritten by The First

^—National

Boston

-v

•

California Mutual

..Common
& Co.)

rights to expire on or about Nov.
approval). Price—$64 per share.

California Metals Corp.
July 27 filed 2,500,000 shares of common stock. Price—
At pair (20 cents per share). Proceeds—For construction
of a-pilot plant; for measuring ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah. Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.

(Monday)

(Myron A. Lomasney

General

shares
•

Sachs

Public

Common

Co.

Corp.

supplied by amendment. Proceeds—To repay indebted¬
ness, purchase new transport equipment, and for work¬
ing capital. Address—P. O. Box 5073, Sacramento, Calif.
Underwriter—Kidder, Peabody & Co., New York.

and

360,000 shares

Puget Sound Power & Light Co
(Bids

Liquid Gas Corp. (19/26-30)
Sept. 16 filed 100,000 shares of common stock (par $1), of
which 55,000 shares are to be offered for the account of
the issuing company, and 45,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holder thereof (of which latter amount 2,000
shares will be sold to certain employees). Price—To be

$20,000,000

Casualty Co

Weld

issued

California

Co..

invited 1

Industries

None.

(Tuesday)

Common

Inc.)

$500,000

Co.;

may

Proceeds—For
general corporate purposes, including working capital.
Office—20 Valley St., Endwell,
N. Y. Underwriter—
SEC

Common

November 2

Natural Gas Co..
(Blyth

Interstate Fire &

$300,000

300,000

190,953

but

Cadre

held;

$375,000

.Common

Inc.)

Malkan

Florida Power & Light

..Common

400.000

Common

Ccrp.;

Dynex, Inc.

Inc
Co.)

Inc.)

C">.)

James

Co.,

•

North

——...

.Debentures

Insul-Cup Corp. of America
(The

(Arnold

•vr*

$3,500,000

Inc..

Co..

Fitch,

Studios, Inc

$2,500,000

Inc.—
Co.)

Laboratories,

(L.

Guerdon

Co.)

Barret,

Securities

Aetna

Corp., Far Hills, N. J.

Sept. 25 filed 17,532 shares of common stock (par $5),
to be offered to holders of such stock of record Oct. 23,
on the basis of one
new share for each
8 shares then

Common

Manufacturing Co

Debentures
&

and

Production

Sept. 23.
Common

____

33,333 shares

Inc.;

and

October

'
-

Co.,

Co.

.Bonds

—...

Inc

Inc.

commission in connection
Price—At par
exchange for "property interests." Agent—Dewey &
Grady Inc;, Far Hills, N. J. on a "best efforts" basis for
the class A stock only. 1 Statement became effective on

100,000 shares

—

Co.,

(Monday)
Co.)

Chemical

with the distribution of the class ^ stock.

Foster Grant Co., Inc.—

(Thursday)

.....Common

Lyon

Cador

salfe,

$12,000,000

Corp

Bzura

18 filed 1,500,000 shares of class A stock (par $1)
and 225,000 shares of class B stock (60c par).
The 225,000 shares of class B stock are not being offered for

Common

——

Gleich

75,000

——

(Ross,

Gas

Corp., Atlanta, Ga.

Aug.

♦

American Heritage Life Insurance Co.—.Common

...Bonds

Thrift Drug Co. of Pennsylvania.

Bonds

Co.„

$150,000

invited;

Peabodv

Common

Philadelphia Electric Co.——

(Singer,

Common

1,200,000 shares

Corp

$15,000,000

$8,000,000

(Thursday)

Inc.;

(Midland Securities Co..

October 28

(Goldman, Sachs & Co. and R. S. Dickson & Co., Inc.)
100,000 shares

Liquid

(Wednesday)

Electric Power Co

(Bids

Co.)

EDT)

October.26
California

(White,

October 14

Inc.)

Preferred

___

Electric

a.m.

October 27

^—.Debentures

(Lehman

Shoe

Corp

<fe

(Darius

600,000

Common

Rochester Gas & Electric Corp...

Frantz

Recovery Corp..

Butler's

Read

October

Co.)

(Tuesday)

Recovery Corp

American

Chemical Co

Templeton and Walston & Co..

if Campbell Chibougamau Mines

050.000.000

(Tuesday)
—

(Bids to be invited)

]

(10/9)
first mortgage bonds,
due 1979 and 240,000 shares of common stock (par 25
cents), to be offered in units consisting of $500 prin¬
cipal amount of bonds and 50 shares of common stock.
Price—$500 per unit. Proceeds—To be used for placing
a
new plant in operation in Fieldsboro, N. J.
Office—
Broadway and Clark Streets, Keyport, N. J. Underwriter
—P. W. Brooks & Co., Inc., New York,

$450,000

Electronics Funding Corp..

Common

Lemon

Oil

•

(Wednesday)

Massachusetts

Enflo Corp.

Corp.—

(Johnston,

Co.)

Aug. 12 filed $2,400,000 of §Vz%

Class A

...

Transmission

(Bids

Common

Corp. of America

Virginia

DIT-MGO, Inc.

Truman,

(Bear, Stearns & Co.)

First

Debentures

-;.V

.Common

Lomasney

(Dillon,

Western

(D.

October

Common

135,000

100,000 shares

Inc.)

$300,000

Colonial

Corp

Jones

$300,000

—

(Mitchum,

$300,000

Tassette, Inc,

;

(10/14)
(par $1),
of which, 40,000 shares will be sold for the company's
account and 60,000 shares for the account of certain
selling stockholders. Price—To be supplied by amend¬
ment. Proceeds—For additional working capital. Under¬
writers—Goldman, Sachs & Co., New York; and R. S.
Dickson & Co., Inc., Charlotte, N. Car.

$70,000,000

Inc

Arizona Fertilizer &

Common

200,000

(Amos

York Research

—

Murphy

invited)

$500,000

Common

Airmotive

Pierce

(Rauscher,

Ginger Ale,

Co.——.—Common

Corp.

(Myron A.

Southwest

Sept. 16 filed 100,000 shares of common stock

(Baker, Sinvmds & Co., Inc. and William J. Mericka & Co., Inc.)
$750,000

..Debentures

Radio Frequency Co., Inc
*

282,760

Vernors

Texas
/

Co._

Co.i

Porce-Alume, Inc.
(Pearson,

Butler's Shoe

$1,000,000

Utilities, Inc

Miller & Co.; 90,000 shares

Blauner

$300,000

$000,000

Instrument

Microwave

Debentures

(Baker, S monds & Co., Inc. and William J. Mericka & Co., Inc.)

..Common

Co.;

Miller

(Hayden,

Electrical
(Hayden,

Narda

Common

..Common

Hickok Electrical Instrument
Hickok

"Bank Building, Baltimore 2, Md,

85,000,000

Co.)

October 21

120,000 shares

Inc.—

(Dunne

Co.)

Haupt &

(Myron A.

Corp.—

Philadelphia

Telephone & Telegraph Co.__Debs.'

(Bids

$1,354,500

___

Gateway Airlines,
.

Boston, Mass. Un¬
Corp., New York.

stop and additional working capital. Office—C/o Garr
D'. Burch, at 707 Grattan Road, Martinsville, Va.
Underwriter—Maryland Securities Co., Inc., Old Town

.Common
Noel

Philadelphia

Gulf

100,000

(Offering to employees;
(First

Common

Cprp

Alstyne,

Chemical

First

Tremont St.,

land

(Tuesday)

(Jaffae. Leverton, Reiner Co.;
Vernors Ginger Ale, Inc.—

(Monday)

Lomasney

(Ira

Bell

Common

Acme Missiles & Construction Corp
A.

of America..

Southern

400.000

October 12

(Myron

(Laird

Servo Corp.

Southern

$450,000

... ——

Brothers;

(Lehman

■*.

Common
Malkan

—Common

....

Communications, Inc.-_.—__Debentnres

Bonds

—.

$2,400,000.

....

(Arnold

Brooks & Co.,

(P.

Central Corp.

Sept. 25 (letter of ontification) 120,000 shares of class A
common stock
(par five cents). Price—$2.50 per share.
Proceeds—For building and equipping stations and truck

York & Co. and Mason Brothers)

October 20
Electronic

(P. W. Brooks & Co., Inc.). 240,000• shares'"

$800,000

(Friday)

/Bzura Chemical Co., Inc.——
.

First Boston

Burch Oil Co.

Debentures

York & CO. and Mason Brothers)

StTauss & Co.;

$340,000

Co.___—

Strauss & Co.;

Simon Hardware Co

October 9

Texas

Sept. 24 filed $1,500,000 of co-ownership participations
an oil and gas exploration fund. Price—-The minimum
participations will be $10,000. Proceeds—To conduct oil
and gas exploration activities. Office—3510 Prudential
Plaza, Chicago, 111. *i

Co.
:
—.Debentures
/
(Blair & Co., Inc.) $2,700,000
Electronics Manufacturing Corp
Common

Shell

.Bzura Chemical Co., Inc—-—____...Common

Co.

Breiler & Curran Oil Co.

$0,000

purposes.
Office —1609
Underwriter—None.

Sept. 4 filed 271,553 shares of common stock (par,$25)
being offered for subscription by holders of outstanding
common stock of record
Sept. 25, 1959, at the rate of
one new share for each ten shares held; rights to expire
on
Oct. 13, 1959 (with an
oversubscription privilege).
Price—$56.75 per share. Proceeds—To reduce short-term

CALENDAR

supplied by amendment. Proceeds—

corporate

Edison

Columbia Gas System Inc..,—
-^—Debentures
]
* . (Bids 11 a.m. EDT>- $25,000,000
<
'
Crowley's Milk Co., Inc.———
.——Common
/

of land and
and in¬

Rolling Mills, Inc.

Price—To be

general

derwriter—The

ISSUE

purchase

Street, El Paso, Texas.

Border Steel

the

Sept. 14 filed 226,380 shares of common stock, to be of¬
fered for subscription to stockholders of record
Aug. 31„
1959, on the basis of 49 new shares for each share then

Biochemical

Border Steel

Sept. 9 filed

units

Proceeds—For

equipment. Office—1609 Texas
Street, El_ Paso, Texas,_ Underwriters—First Southwest'~
Co., Dallas, Texas, and Harold S. Stewart & Co., El Paso-

Management, Inc., 11 Broadway,
Offering—Expected any day.

New York, N. Y.
•

amendment.

bank

NEW

.Bonds

$6,000,000

Sept.

filed

Ltd.

350,000

Continued on page 34

The Commercial and Financial Chronicle

(1506)

Continued

from

upon

each

warrant

page

of $4

payment

held.

City Discount & Loan Co.
July 30 (letter of notification) 120,000 shares of common
stock (no par). Price — $2.50 per share. Proceeds — For
working capital. Office—1005 Northeast Broadway, Port¬
land, Ore. Underwriter—R. G. Williams & Co., Inc., New
York, N. Y. has withdrawn as underwriter.

share, one share of stock for
Office—55 Yonge Street, Toronto,
per

Canada.

-A Canadian International Growth Fund Ltd.,
Oct. 1 filed (by amendment) 500,000 additional shares of
common
stock.
Price—rAt market.
Proceeds—For in¬
vestment.

Distributors^

—Bear, Stearns & Co., New York.

Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
—-To be supplied by amendment. Proceeds—For invest¬
ment in the securities of companies engaged

Columbia

shares of common stock, of which 46,U80 shares are to be offered for subscription by com¬
mon stockholders at the rate of one new share for each
The remaining 2,000 shares are being
a selling stockholder. Price—To
amendment. Proceeds—For general cor¬
porate purposes including the repayment of outstanding
bank loans in the amount of $425,000, the provision of
funds for
the 1959-60 construction program, and for

four shares held.

Plans With Insurance.

St., Wilmington,
be determined by competitive

above

the

-about

Oct.

about Oct.
30.

Proceeds—For

Broad

11.

St., New

York City.

share, which is equal to the price

debentures

are

convertible

into

(formerly Peck & Harvey Mfg.

(letter of notification) 100,000 shares of
stock (par 50 cents).
Price—$3 per share.

com¬

Pro¬

Avenue, Chicago 45, 111.
Underwriter—Sim¬
Co., New York, N. Y.
Offering—Expected in

(letter of notification) 2,000 shares of preferred
stock to be offered for subscription by stockholders and
the company's subscribers; unsubscribed shares to the
-public. Price—At par ($25 per share). Proceeds—To in¬
stall a dial exchange at East Vassalboro, Maine; to con¬
struct a cable; to repay notes, etc. Underwriter—None.
Aug. 7

Acceptance Corp.

June 29 filed $600,000 of series F 6% five-year subor¬
dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,

holders

from

time

thereof

the

over-the-counter

time. Price—To be

the

market

price at the time of sale. Proceeds—For general
purposes, including working capital. Underwriter—None.
'
corporate

■—_

Cornbelt

ceeds may also

nated

Del.

year.

Part of

the^ pro¬

be used to retire outstanding subordi¬

debentures

not

exchanged.

Underwriter—None.

Office—Georgetown,

Regina.

Crescent Petroleum Corp.,

Tulsa, Okla.
~ >•. 4: .
Way 26 filed 48,460 shares of 5% convertible pfd. stock
.$25 par) and 12,559 shares of common ($1 par), 34,460
(hares of the preferred and 9,059 shares of common are
.ssuable upon, the exercise of stock options granted when
he assets of Norbute Corp. Were acquired on Aug. 6,
Underwriter—None.

1958.

>•

•.:

Crusader Oil &>Gas

Corp., Pass Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
841,613 shares will; be offered on a one-for-one basis to
stockholders of record rMay 15, 1959.
The remaining
858,387 shares will bq offered publicly by the under¬
on a "best efforts" basis.
Price—To be supplied
amendment. Proceeds—For repayment of notes and
(or working capital. Underwriter — To be supplied by
amendment.
.
: y :

writer

•

Daitch

Crystal Dairies, Inc. (10/15) Sept. 15 filed $3,500,000 of 5%% convertible subordi¬
nated debentures, due Oct. 1, 1979. Price — At 100% of
principal amount. Proceeds—-For working capital.
Of¬
fice—Bronx, New York. Underwriter—Hirsch & Co.,
New York.
•
Dayton Aviation Radio & Equipment Corp.
Sept. 28 filed 201,050 shares of common stock, of which
190,871 shares are to be offered to holders of outstanding

stock
for

of the record date

each

shares then

four

the basis of

held.

one

Price—$1.50

new

per

share.

finance government

Proceeds—To

contracts, reduce ac¬
payable, and increase working capital.
Office—
Highway, Troy, Ohio.

counts

South Dixie

Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50).
Price—$10 per share. Proceeds—For general corporate

including salaries,

purposes,

establishment

the

of branch

cars,

promotion, inventory,

offices,

expenses incidental
obtaining permission to do business in other states,
and the establishment of a contingency reserve.
Office
—1420 East 18th Avenue, Denver, Colo.
Underwriter—

None.
•
Digitronics Corp.
Sept. 25 filed 65,877 shares of capital stock (par 10 cents)

offered

such stock

Proceeds

the

holders

the

basis

Price

—

held.

of
To

one

of| outstanding shares of
new

share for each

supplied

five

amendment.

For

general "corporate purposes. Office —
Albertson, L. I., N. Y. Underwriter—Granbery, Marache
& Co., New York City.
Offering—Expected in October.
•

—

Dubert's

centers

Leasing & Development Corp.

and

super-market under existing purchase
for working capital.
Name Changed —
Company formerly known as Dilbert's Properties, Inc.
Office—93-02 151st Street,
Jamaica, N. Y. Underwriter—
Ira Haiipt & Co., New York.
•

and

DIT-MCO,

Inc.

(10/26-30)
33,333 shares of common stock (no par
stated value).
Price — To be supplied by
amendment. Proceeds—For general
corporate purposes,
Sept.

filed

value,

including working

capital and the reduction of shortborrowings. Office—911 Broadway, Kansas
City, Mo.
Underwriters—Midland Securities Co., Inc.,
and Barret, Fitch, North &
Co., Inc., both of Kansas
City, Mo. The number of shares actually offered Will

Freeport, III.
Sept. 29 filed 200,000 shares of common stock to
offered
for
subscription by. common stockholders
record

Sept. 15, 1959, at the rate of four

for each
be

10 shares then held.

offered

new

of
shares

Unsubscribed shares may

publicly. Price—$4 per share. Proceeds—
capital and surplus.
Underwriter—None,

increase

but brokers and dealers who join in the distribution will
receive commission of 40 cents per share.

it Cornbelt Life Co.
^
Sept. 29 filed 100,000 shares of
one

common

stock, to be of¬

stockholders of record Sept. 15 on the basis of
share8 for each share then held.
Price—$4.50 per

fered

Proceeds—To

credited to

stated

capital and

•
Cracker Barrel Supermarkets, Inc.
Sept. 25 (letter of notification) 120,000 shares of common
stock (par 10 cents). Price—$2.50 per share. Proceeds—
For general corporate purposes.
Office—84-16 Astoria
Blvd., Queens, L. I., N. Y, Underwriter—Diran, Norman
& Co., New York. Offering—Expected in early Novem¬

ber.

-v

■

bank

total

the price
$500,000.

per

share.

The offering is expected

•

Cantor

Goldman

Builders, Inc., with the balance to
working capital. Office—29A Sayre Woods
Shopping Center, Madison Township, P. O. Parlin, N. J.
Underwriter—Lee Higginson
Corp., New York.
be

Insurance Co.,

paid-in surplus. Office—12, North Galena Avenue, Freeport, 111. Underwriter—None.

one

St., Regina, Saskatchewan, Canada.
Cumberland
Securities
Ltd., also of

Diversified
Communities, Inc.
Sept. 25 filed 467,200 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For ac¬
quisition of Hope Homes, Inc., Browntown Water Co. and

the

so long
offering.
offering.

short-term notes due within

,—

sale

share.

there are bonds remaining unsold in this
No bonds will be reserved for this exchange
Price—100% of principal amount. Proceeds—
To increase or maintain the working capital of the com¬
pany but will be initially applied to the reduction of

Underwriter

term

at face value, on the maturity dates of those securities
as

Office—2100 Scarth

depend

market

Sept. 28

China Telephone Co^, South China, Maine

...

Mining Corp. Ltd. > ;
".
April 17 filed 260,009 shares of common stock. Price—80 cents per share.
Proceeds—For exploation progam.

of previously-issued options. These shares, together with
the remaining 2,055,000 shares, may be offered for public

Statement effective
,
r •

writer—None.

Proceeds—For working capital.

Ave., Cocoanut Grove, Miami, F^a.
V
;

Cree

oontracts

Co., Inc., New York.

Cordillera Mining Co., Grand Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital stock, of which
2,179,800 shares are to be offered solely to the holders

accu¬

^Charter Oak Life Insurance Co.
(letter of notification) 116,064 shares of com¬
mon stock
(par $1) to be offered to present and future
foundation policyholders of the company. Price—$2 per
share. Proceeds—For surplus and working capital. Of¬
fice—411
N. Central Avenue, Phoenix, Ariz.
Under¬

amount.

Grand

bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon stock
(pair one cent) to be offered in units consist¬
ing of $50 principal amount of debentures and 12 shares
of common stock. Price—$51.20
per unit. Proceeds—For
repayment of notes; to develop and construct shopping

Western

additional $40,000,000

Programs for the

face

Office—3208

June 11 filed $4,400,000 of 20-year 5%% convertible de¬

mons

Citizens'

offered.

the debenture

late October.
an

Price—At

common

mon

mulation of shares of Institutional Growth Fund. Office

Sept.

publicly

ceeds—To pay bank loans and loans to stockholders and
others and for working capital.
Office—5642-50 North

•

—

per

Co.)

"Variable Investment Plan"

the

Copymation, Inc.

St., Charlotte, N. C. Underwriter—R. S. Dickson & Co.

which

debenture holders and

be offered

Sept. 23

working capital and the acquisition of shares of the out¬
standing common stock of Davenport Hosiery Mills, Inc.,
of Chattanooga, Tenn. Office — 2417 North Davidson

Chaiming Service Corp.
Sept. 9 filed (by amendment)

shares to

Guba. Underwriter—H. Kook

15,

respectively,

For the

—

standing shares on the American Stock Exchange at the
.time of the offering. Proceeds — For general corporate
purposes.
Office—Calle 23, No. 956, Vedado, Havana,

1959; rights to expire on or
Price—To be supplied by amendment,
general corporate purposes, including

Charlotte.

Hoijsyp, Inc.
(letter of notification) $200,000 of debenture notes
$100,000 will be 5-Vear 7%, and $100,000 will
10-year 8%, to be offered in multiples of $500 each.

which

stock; for the shares to be offered to the underwriter, $1
per share; for the shares to be offered to the public, the
price will be related to the current price of the out¬

Gotham, Inc. (10/15)
Sept. 28 filed $2,500,000 of 6% convertible subordinated
debentures, due 1974, with warrants to purchase 200,000
shares of common stock, to be offered for subscription
by holders of its common stock at the rate of $100 of
debentures, with an attached warrant to purchase 10
held

York.

subscribed for by the

underwriter,

holders, 75 cents

Chadbourn

common

not

Price

100

New

Development Corp.
Aug. 28 filed 448,000 shares of common stock, of which
198,000 shares are to be offered to holders of the issuing
company's 6% convertible debentures, and 100,000 shares
are to be offered to the underwriter, with the remaining
150,000 shares, in addition to those shares described

unsubscribed shares until Oct.

each

Bros.,

Consolidated

3, 1959.

for

stock.

writer—Vermilye

Underwriter—None. Bley Stein, Presi¬

cash

common

bank note; and for machinery and equipment.
Office—73 Sunnyside Avenue, Stamford, Conn.
Under¬
prepay

Century Properties, Los Angeles, Calif.
Aug. 5 (letter of notification) 33,880 shares of common
stock (par $1), being offered for subscription by stock¬
holders of record Sept. 1, 1959 on the basis of one new
share for each 10 shares held; rights to expire bn Oct. 1,
1959.
Price—$4 per share.
Proceeds—To reduce bank
loans.
Office—1758 South La Cienega Boulevard, Los

for

Pfice—$4 per share. Proceeds—For working capital; to

ly)?"'Bids—Tentatively expected to be received up to
10:30 a.m. (Chicago time) on Oct. 29.

1960.

Conetta Manufacturing Co.
Sept. 28 filed 100,000 shares of class A

bidding. Probable bidders: Blyth & Co.,1 Inc., and Harriman Ripley &Co., Inc. (jointly); Lehman Brothers and
Lazard Freres & Co.,(jointly); The First Boston Corp.
and Merrill Lynch, Pierce, Fenner & Smith Inc. (joint¬

common

—

Dec. 16,1957 filed $25,000,000 of first mortgage bonds du*
Sept. 1, 1968, $20,000,00 of subordinated debentures du«
Dct. 1, 1968 and 3, *000,000 shares of common stock to b«
jffered in units as follows: $1,000 of bonds and 48 share*
>f stock and $100 of debentures and nine shares of stock
Price—To be supplied by amenument.
Proceeds — Tc
instruct refinery. Underwriter—Lehman Brothers, New
fork. Offering—Indefinite.

(10/29)

Texas Utilities Co. Office—902 Market

•

Jan.

before

Commerce Oil Refining Corp.

Sept. 21 filed 350,000 shares of common stock (par $5).
Proceeds—To prepay and discharge bank borrowings in
the amount of $3,200,000, and to purchase during 1959-60
additional shares of common stock of Public Service Co.
of Oklahoma, Southwestern Electric Power Co., and West

any

Office—15 East.40th Street, New
None. Offering — Expected some

ment.

—

dent, will be offered

Investment

for

^Columbian Financial Development Co., Inc.
Oct. 6 filed (by amendment) an additional $10,000,000
of Systematic Investment Plans. Proceeds—For invest¬

loans. Office—1315 Dixwell Ave., Hamden, Conn.
Underwriter
Arnold Malkan & Co., Inc., New York.

Angeles, Calif.

Underwriter

York.

time

repay

Underwriters—To

Plans

Aug. 3 filed 150,000 shares of common stock (par 10c)
price—$3 per share. Proceeds—For manufacturing and
sales facilities and working capital, of subsidiaries; to

Del.

Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans and Systematic Investment

(10/9)

and South West Corp.

$1,000,000

Shares in American Industry, of which $500,000 was for

working capital. Office—Stiles Lane, New Haven, Conn.
Underwriter—Putnam & Co., NewHaven/Conri.Offer¬

Central

•?'<.*.:

Financial Development Co.

filed

Aug.

be supplied by

Corp.

(10/8)

—

Columbian

•

sold for the account of

Central

Inc.

Proceeds—For 1959 construction program. a-UnTo be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co. (jointly); Morgan Stanley & Co. Bids—Expected to
be received up to 11 a.m. (New York Time) on Oct. 8
at the office of the company, 120 East 41st Street, New
York. ' '
.',!
' V: / ? ' s "
•'

Oct. 2 filed 48,080

*•

System,

1, 1984.

dervvriter

Co.

ing—Expected sometime in November.

Gas

Sept. 11 filed $25,000,000 of series N debentures due Oct.

directly or

indirectly in the life insurance business. Office—15 Wil¬
liam Street, New York. Underwriter—Capital Sponsors,
Inc., New York. Offering—Expected in late October.
4- Carwin

expansion. Office—Woodbury, Tenn. Underwriter
1 V-

future

Capital Shares, Inc.

;

it Credit

(10/13-16)

America

the company, and 60,000 shares for account of a selling
stockholder.
Price — To be supplied by amendment.
Proceeds—For working capital to finance current and

Proceeds
Office—Harbourtpn, N. J.
Under¬

Growth

writer—Capital

Corp.

filed 120,000 shares of common stock (par $1),
which 60,000 shares are to be offered for account of

Growth Securities, Inc.
Oct. 6 filed 1,000,000 shares of capital stock.
if Capital

7—For investment.

Colonial

•

Sept. 3

Thursday, October 8, 1959

Oct. 1

Underwriter—None.

Office—Montreal, Canada.

used

•
Docley Aircraft Corp.
Aug. 14 filed 506,250 shares of common stock (par one
cent), of which 375,000 shares are to be publicly offered.
Price—$2 per share. Proceeds—To repay loans; to pay

the

$80,000 balance due on the company's purchase of
complete rights to the MAC-145 aircraft; and for
working capital, including expenses for advertising. Of¬
fice— 1Q5 West Adams
St, Chicago,_ 111. Underwriter—
Mallory Securities, Inc., New York, has withdrawn as
the

underwriter.
•

Dow

Statement

Chemical

was

withdrawn

Sept. 25.

Co.

(10/12)
Sept. 3 filed 120,000 shares of common stock to be offered
for sale to employees of
company and certain of its
subsidiary and associated companies. Subscriptions will
be accepted from Oct. 12
share.
Drake

Associates

through Oct. 30. Price—$68

per

Aug. 20 filed $5,905,000 of limited partnership interests.
Puce—$10,000 for each of 590% units. Proceeds—To buy
the Hotel

Drake, located at 56th St.

and Park Ave., New

Volume

190

Number

The Commercial and

5888

Financial Chronicle

•
Paradyne Electronics Corp.
York, from Webb & Knapp, Inc. Office—60 East 42nd St.,
New York. Agents—Domax Securities Corp., and Peter I.
Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to be publicly offered.
Feinberg Securities Corp.[, both of New York. 1™
—
Price—$5 per share.
Proceeds—For general corporate
Drexelbrook Associates
purposes, including plant expansion, improvement and
May 22 filed $2,000,000 of partnership interests, to be
equipment.
Office — 744 Broad St., Newark, N. J.
offered in units. Price—$10,000 per unit.
Proceeds—To
Underwriters
Netherlands Securities Co., Inc. (han¬
be
used
for
various
acquisitions.
Office — Broad &
dling the bo^k^) and Herbert Young & Co., Inc. (jointly);
Chestnut Streets, Philadelphia. Pa. Underwriter—None.
Morris Cohon & Co.; Schrijver & Co.; Richard Bruce &
Durrazzo Products, Inc.
Co., Inc., all of New York.
Offering—Expected in a
Aug. 26 (letter of notification) 2,500 shares of common
couple of weeks.
stock Xo► be
offered for subscription by stockholders.
Fidelity Investment Corp., Phoenix, Ariz.
Price—At par ($10 per share). Proceeds—For additional ./
June 29 filed 1,799,186 shares of class A common
stock,
improvement and for the purchase of machinery and
of which 1,700,000 shares are to be offered publicly, and
equipment. Office—2593 Highway 55, St. Paul 18, Minn.
the remaining 99,1.86 shares have been subscribed for
Underwriter—None.
r

t—

1
*

in consideration for services rendered in
•
Dynex, Inc. (11/2)
Aug. 6 filed 120,000 shares

stock

common

(par

an incentive to management.1 The company
agreed to Issue to the organizers 200,000 shares of
class B common stock; and 100,000 class B shares have

cents). Price—$5 per share. Proceeds—For general corporate purposes, including product research, the purchase of new equipment, and expansion. Office — 123

Eileen Way, Syosset, L. I., N. Y.

has

been set aside for issuance to keep personnel other than
the organizers. Price—To public, $3 per share. Proceeds

Underwriter—Myron A. V —To be applied to pay interest due on properties and to
purchase new properties and for working capital. Under¬
V ;

Lomasney & Co., New York.
ESA

writer—None.

Mutual

Fund, Inc.
June 29 filed 2,000,000 shares of capital stock. Price—To
be supplied by amendment.' Proceeds—For investment.
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter-—ESA Distributors, Inch, Washington,
D. C.
Office—1028 Connecticut Avenue, N. W., Wash¬
ington, D. C. •/'/, /•'.■"■' •
;• ^
/■"

;

★ Eaton Manufacturing Co.
Oct. 2 filed 276,434 shares Of

Financial Industrial

Price—At market.

/
-

•

will

capital stock

investment.

Office—

be sold for the company's

account. Price — To be
by amendment. Proceeds—To prepay the re¬
maining balance of and accrued interest on an outstand¬
ing term loan. Underwriter—William R. Staats & Co.,

Los

Angeles and San Francisco, Calif.

First

Northern-Olive

Investment

the amount of $25
purchase price of
cents, and for a public relations and publicity program.
Office—Hotel Troy Building, Troy, New York.-.
Underwriter—John R. Boland & Co., Inc., New York.
Offering—Expected during the next two months.

companies, numbered "second" through "eighth."
Price—$10,084 to $10,698 per unit. Proceeds—To purchase

land in Arizona. Office—1802 North Central

Ave., Phoe¬

nix, Ariz. Underwriter—O'Malley Securities Co.. Phoe¬
nix.
First

Philadelphia Corp. (10/12-16)
Aug. 21 (letter of notification) 100,000 shares of class A
common stock (par 10 cents). Price—$3 per share (gross
30 cents per share to brokers selling 2,500 shares or less,
and 45 cents per share to those brokers selling more than
2,500 shares). Proceeds—For working capital; general
corporate
purposes
and to
develop dealer relations.
Business

A broker-dealer firm formed to underwrite

•».

new security issues; Office—4(TExchange
Place, New York 5, N. Y. Underwriter—First Philadel¬

phia Corp., New York, N. Y.

purposes.
.

Broad

•

Laboratories,

Inc.

rate

For

Communications,

Inc.

•

New

York, N. Y. /

Oct.
due

.....

porate purposes.
ers—d.
New
•

Gleich

Office—Maple Shade, N. J.- Underwrit¬
Aetna Securities Corp., both of

Co..&

York.,

Ennis

Business

•'/

*•/;

Forms^ Inc.

•

'/"/

"•f

(10/19-23)

shares of common stock (par $2.50)
to be publicly offered for the
5,000 shares are to be
offered by the company to its employees, and 167,490
shares, representing outstanding stock, are to be offered
for the accounts of the present holders thereof. Price—
To be supplied by amendment.
Proceeds—For general
corporate purposes, including expansion and the pur¬
chase of equipment.
Office—214 West Knox St., Ennis,
Texas.
Underwriter—Kidder, Peabody & Co. Offering
—Expected in October.
V
Sept. 25 filed 217,490

of the issuing company,

then

held;

Price—$5 per share.

and expansion. Office
Underwriter—None.

—

475-79

to 3.600 shares of the
National

Nov.

(10/27)
mortgage

bonds,

series

competitive bidding. Probable bidders: Halsey,
Co. Inc.;' Merrill Lynch, Pierce, Fenner &

Smith Inc.

and Kidder, Peabody & Co. (jointly); Blyth
Co., Inc., and Lehman Brothers (jointly); White, Weld
& Co., and The First Boston Corp.
Bids—Expected to
be received up to 11:30 a.m. (EST), Oct. 27.
&

Foster Grant

•

Co., Inc.

(10/29)

Sept. 25 filed 190,000 shares of common stock (par $1)
of which 100,000 shares are to be sold for the account
of the issuing company, and 90,000 shares are to be sold
for the accounts of the present holders thereof. Price—
To

be supplied

To provide
funds for construction. Office—Leominster, Mass. Un¬
derwriter—Goldman, Sachs & Co., New York.
Foundation

by amendment/Proceeds

Balanced

Fund,

—

Inc.

June 18 filed

100,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment. Office—
418 Union

St., Nashville, Tenn. Investment Adviser—J.

C. Bradford & Co., Nashville, Tenn.

Distributor—Capital

Planning Services, Inc.
Foundation Stock
June 18 filed

Price—At

Fund, Inc.

100,000 shares of common stock (par $1).
Proceeds—For investment. Office—

market.

increase

York.

★ General Acceptance Corp. (11/4)/
$10,000,000 of subordinated debentures, with
purchase of common stock, to be offered
in units consisting of a $1,000 debenture and one common
stock purchase warrant.
Price — To be supplied by
amendment. Proceeds—For general corporate purposes.
Office—1105 Hamilton St., Allentown, Pa.
Underwriters
—Paine, Webber, Jackson & Curtis, and Eastman Dillon,
Union Securities & Co., both of New York. - - •
—
• General Finance
Corp.
Sept. 11 filed 150,000 shares of common stock. Price—$3
per share. Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment
and supplies.
Office — Santurce, Puerto Rico.
Under-"
writer—Caribbean Securities Co., Inc., Avenida Condado
609, Sahturce, Puerto Rico.

Inc. (10/12-16)
14 filed $1,500,000 of 6*/2% debentures, due Oct.

1, 1969, and 270,000 shares of common stock, to be of¬
fered in units of $100 principal amount of debentures
by

common stock.
Price—To be supplied
Proceeds—For general corporate pur¬
including the reduction of indebtedness and the

18 shares of

and

amendment.

poses,

purchase and installation of machinery and equipment.
Address
P. O. Box 8169, New Orleans, La.
Under¬
writers—H. M. Byllesby & Co., Inc., Chicago, 111.; How¬
ard, Weil, Labouisse, Friedrichs and Co., New
La., and Mason-Hagan, Inc., Richmond, Va.
.

Orleans,

General Underwriters Inc.

April 6 (letter of notification) 225,000 shares of com¬
mon capital stock
(par 25 cents).
Of the total, 195,000
shares are to be offered for the account of the company
and 30,000 shares for a selling stockholder. Price—$1 per
share/ Proceeds—For furniture inventory and improved

merchandising methods, to finance the real estate depart¬
ment and insurance policy loans. Office—211-215 Pine

St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,
Inc., Pine Bluff, Ark. Offering—Expected any day.
•

Industries, Inc.
(letter of notification) 200,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—For additional plant, equipment, retirement of
outstanding notes and payables and working capital.
Office—337 E. Diamond Avenue, 17th & Hayes Street,
Gennaro

Aug. 28
mon

stock

Hazelton, Pa. Underwriter—Reilly, Hoffman & Co., Inc.,
New York, N. Y. Offering—Expected today (Oct. 8).

the account of the company and
offered for the

Price—To

78,572 shares

are

to be

accounts of certain selling stockholders.

be supplied by

amendment. Proceeds

—

working capital. Underwriter—Schwabacher & Co.,
Francisco and Los Angeles, Calif.

For

San

Corp.
shares of common stock (par one
cent), and 50,000 common stock purchase warrants. Of
the shares 400,000 will be sold for the account of the
company; 110,000 by certain stockholders; 12,500 for the
underwriter; and the remaining 50,000 shades are pur¬
chasable upon exercise of the warrants. Price—$1.25 per
share, Proceeds—For repayment of debt; purchase of
equipment and facilities and other general corporate
purposes. Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name
Change — Formerly Eastern Packing Corp.
Offering —
Expected in late November.
Gold

Medal

Gold Medal

Sept.

Packing

18 filed 572,500

Studios, Inc.

(10/26-30)

18 filed 500,000 shares of common stock

(par 10

Proceeds—For general cor¬
porate purposes, including the purchase of additional
studio equipment, investing in properties in the enter¬
tainment field, and the provision of funds for a down
payment on another building or buildings. Office—807
E. 175th Street, New York, N. Y.
Underwriter—Arnold
Malkan & Co., Inc., New York.
cents).

•

Price—$1

per

Great American

share.

Publications, Inc.

Aug. 11 filed 260,000 shares of common stock (par 10
cents) of which 195,000 shares are to be publicly of¬
fered on a best effects basis. Price—At market. Pro¬
ceeds — For working capital.
Office — New York.
Underwriter—Mortimer B. Burnside & Co., Inc., New

Offering—Expected in the latter part of Novem¬

418 Union

St., Nashville, Tenn. Investment Adviser— J.
Co., Nashville, Tenn. Distributor—Capital
Planning Services, Inc.

York.

C. Bradford &

ber.

•

31 filed 120,000 shares of common
Price—To be supplied by amendment.

(10/26-30)
Sept, 11 filed 190,953 outstanding shares of common
stock. Price—To be supplied by amendment. Proceeds—
To selling stockholders. Business—Company is engaged

None.

the

June

Co.
April 21 filed $1,000,000 of Variable Annuity Policies.
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts. Proceeds—For investment, etc. Office—2480
16th* Street, N. W., Washington, D. C.
Underwriter—
Equity Annuity Life Insurance

parts, and equipment, the retirement of debt, and
of working capital. Office — MacArthur
Field, Islip, L. I., N. Y. Underwriter—Dunne & Co., New

spare

•

Power & Light Co.
filed $20,000,000 of first

Stuart *&

of which 45,000 shares are

account

about Dec. 2.

reserves

Purcellville

mined by

•

• Enflo Corp. (10/26-30)
Sept. 30 filed 125,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—For general cor¬

four

1989. Proceeds—To help finance the com¬
pany's construction program. Underwriter—To be deter¬

N.'.Y... Underwriter—Darius Inc.,
-V-/,.
'
'V
ZLi

each

★ Florida

Office—c/o Darius Inc., 90 Broad

to the company.
Street, New York, 4,

on or

for

ington, D. C.

(letter of notification) 75,000 shares of common
(par 10 cents)/ Price—$2 per- share. Proceeds—

stock

at the

common capital stock
Bank, Purcellville, Loudon
County, Va., for the approximate sum of $772,000 from
J. R. Trammell & Co. Office—2924 Columbia Pike, Ar¬
lington, Va. Underwriter—Johnston, Lemon & Co., Wash¬

Sept. 15
To go

stock,

of The

For general

(10/22)

common,

First

purchase

purchase of additional equipment. Office—1501
72nd St., North, St. Petersburg. Fla. Underwriter—Laird
& Co., Corp., Wilmington, Del.
.
Corp.

•
Gateway Airlines, Inc.,
(10/12-16)
Aug. 31 filed 400,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For general
corporate purposes, including the purchase of airplanes,

repay
indebtedness, make additional investments
★ Gertsch Products, Inc.
the common capital stock of subsidiary banks
andy^—Sept. 24 filed 107,143 shares of capital stock (without
subject to the approval of the Federal Reserve System,
par value), of which 28,571 shares are being offered for

the

Funding

Office—Elizabeth, N. J.

corporate purpose^, including the repayment of out¬
standing indeotedness, thej completion of construction,

Electronics

investment.

Fyr-Fyter Co.
Aug. 12 (letter of notification) 3,300 shares of 6% cumu¬
lative preferred stock.
Price—At par ($30 per share).
Proceeds—To go to selling stockholders. Office—2 West
46th St., New York 36, N. Y. Underwriter—None. Offer¬
ing—Expected any day.

Sept. 15, 1974 (With warrants for purchase of 20 shares
of common stock for each $1,000 of debentures). Price—

and

new

shareholders of record'Oct.

Virginia Corp. (10/13)
filed 600,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Proceeds

(1C/20)

—

one

company

Sept.

Aug. 28 filed $5,000,000 of subordinated debentures, due

supplied by amendment. Proceeds

158,236

common

Statement effective Oct. 6.

Insurance Co.

Broadway, Gary, Ind.

machinery; [or development and research and for
working capital. /Office — 35—54 Thirty-sixtn St., Long
Island City, N. ,Y.
Underwriterf-L. D. Sherman & Co.,
New York', N.

To be

filed

rights to expire

and

Electronic

offered to

(10/15)
Aug. 14 (letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share. Proceeds—
To retire outstanding bank loan: to increase inventories:
for sales and promotional activities; to improve production facilities and to acquire new and improved tools

•

First United Life

—Sent.

St., New York.

Electro-Sonic

distribute

and

* Electronics Development, Inc.
Sept. 25 filed 115,459 shares of common stock (par 10c).
Price—$3.50 per share. Proceeds—^or general corporate

Office—Gill and West College Streets, State
College, Pa. Underwriter—First Broad Street Corp., 50

For

—

•

ECon-O-Veyor Corp. (10/12-16)
Sept, 18 (letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For advertising and promotion; new equipment, and
general corporate purposes. Office—224 Glen Cove Ave¬
nue, Glen Cove, N. Y.
Underwriter—Plymouth Securities Corp., New York, N/Y.
*.*'»-■«»

;

★ Fundamental Investors, Inc.
—
Oct.
1
filed
(by amendment) an additional 5,000,000
of capital stock.
Price—At market. Proceeds—

Sept.

Olive
.

hardware, primarily overhead type garage
hardware. Office—301 West 3rd St.,
Sterling, IlL
Underwriter—Blair & Co., Inc., New York.

General Flooring Co.,
Co.

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other Northern-

common

supplied

thru ways, parkways and highways in
of such breakdown insurance for the

Fund, Inc.

Proceeds—For

• First Financial Corp. of the West
Sept. 28 filed 120,000 shares of capital stock (without
par value), of which 100,000 shares are to be offered for
the account of the selling stockholders, and
20,000 shares

P. Corp.
Aug. 31 filed 160,000 shares of capital stock (par 10c),/
of which 100,000 shares are to be publicly offered. Price
:—$2.50 per share. Proceeds — To provide funds for the
purchase of vending machines which will be used to
distribute automobile breakdown insurance policies on

Income

shares of

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.

common

builders'

door

warrants for the

950

stock, issuable
upon the exercise of stock options under the company's '
Restricted Stock Option Plan. Office—739 East
140th
St., Cleveland, Ohio.

Oct. 2 filed

■

July 22 filed 1,000,000.

organizing the

company as

(1507)

Frantz

the

Manufacturing

Co.

design, development, production and distribution

•

Great Lakes

Bowling Corp.

stock (par $1).,
Proceeds—For
general corporate purposes, including the development
of
bowling lanes, bars, .and restaurants on various
Aug

Continued

page

The Commercial and Financial Chronicle

(1508)

rate purposes

Continued from page 35

Michigan properties. Office—6336 Woodward Ave., De¬
troit," Mich. Underwriter—Straus, Blosser & McDowelU
Chicago, 111.
•

A Griffin Steel & Supply Co.
-Sept. 22 (letter of notification) 50,000 shares of capital
otock (no par).
Price—50 cents per share. Proceeds—
For working capital.
Office—625 Williams Street, Bakersfield, Calif. Underwriter—Bailey & Co., Fresno, Calii.
Growth Fund of

America, Inc.
-Feb. 4 filed 250,000 shares of common stock (par 10
cents).
Price—At market.
Proceeds—For investment
Office —1825 Connecticut Avenue, Washington, D. C
'Investment
Advisor
Investment
Advisory
Service,
—

"Washington, D. C.
Underwriter—Investment
Associates, Inc., Washington, D. C,

Manage¬

ment

offered

and

change for

motion" and

—Cody, Wyoming.

and in the preparation of the concentrate
enfranchising cf bottlers, the local and national pro¬
advertising of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur¬
vis & Co. and Amos C. Sudler & Co., both of Denver
Colo.
•

Cement

Ideal

Co.

675,000 shares of capital stock.
These
shares are being exchanged for all (but not less than
80%) of the common stock (par $1), of the Volunteer
Portland Cement Co., in the ratio of 3% shares of Ideai
stock for each share of Volunteer stock.
The exchange
period was to have expired Oct. 2, 1959. No extension,
however, will be made beyond Dec. 1, 1959, unless 80%
or more of the outstanding shares of the common stock
July

filed

Volunteer

tendered

are

before

said

date.

New

holders

Thursday, October 8, 1959

the

Israeli

Joint

Underwriter—Bear,

debentures (in denominations of $1,000).
with 100 warrants to
buy one share of class A common stock (par $10). The
sight to purchase class A common stock by way of war¬
rants will terminate Dec. 31, 1969. Price—90% without

linking fund

3Sach debenture may be purchased

Proceeds—For investment

warrants.

*725

Failing Bldg., Portland 4, Ore.

purposes.

Office—

Industries, Inc. (10/15)
Aug. 21 filed 400,000 shares of class A common stock (no
•par). Price—To be supplied by amendment. Proceeds—
To reduce bank indebtedness by $3,500,000, and to pay

notes. Office—3762 South Van Dyke Road.

Marlett, Mich. Underwriter—Blair & Co., Inc., New York.
9

Harnischfeger Corp.

Aug. 28 filed 200,000 shares of common stock (par $10).
be related to the market price of outstanding
shares on the American Stock Exchange at the time of
iPrice—To

the offering.- Proceeds — In part to repay outstanding
xinsecured short-term bank loans, expected to approxi¬

$4,000,000, with the balance to be used for

mate

Office

purposes.

—

Milwaukee, Wis,
York.
Offering—Indefinitely

postponed

New

due

conditions.

market
9

general

4400 W. National Ave.,
Underwriter—The First Boston Corp.,

corporate

Hawaiian

Telephone Co.

Sept. 11 filed 287,321 shares of common stock (par $10),

of such

common

stock has been

may

• Income Fund of Boston, Inc.
(by amendment) 1,310,243 additional shares

Oct. 1 filed

of common stock.

vestment.

Price—At

market' Proceeds—For in¬

•

Industrial Leasing Corp.

(letter

convertible

subordinated

$200,000

debentures

($1,000 denomination) and
$50,000 subordinated convertible 6% debentures ($500
denomination). Price—100% of principal amount. Pro¬
ceeds—For working capital. Office—522 S. W. 5th Ave¬

Portland 4, Ore.

nue,

Underwriter—May & Co., Port¬

land, Ore.

.;V'V

Industrial Vinyls, Inc.
Aug. 20 filed 200,000 shares of common stock (par 10
cents). Price—$2.50 per share.
Proceeds—For the pur¬
chase of machinery and equipment to expand the com¬
pany's facilities for handling thermoplastics, to reduce
current bank
poses

Stearns & Co.,

ceeds—For
York

general
corporate
piyposes.
Office—New
Underwriter—None.
* ■*:,

City.

if Jetronic Industries, Inc.
Sept. 23 (letter of notification) 5,460 shares of common
stock (par 10 rents). Price—At the market oil the Amer¬
ican Stock

Exchange.

Office—Main

holders.
Pa.

Proceeds—To go to selling stock¬
& Cotton Streets, Philadelphia,

Underwriter—None.
:

■

;

1960 Oil Associates

Jocelyn-Varn

Sept. 28 filed 100 units of oil and gas exploration agree¬
ments.

Price—$20,000 per unit. Proceeds—For locating,
developing, and administering oil and gas producing
properties.
Office—310 KFH Building, Wichita, Kan.
Underwriter—None.
/
^
.

if Kayser-Roth Corp.
(11/10) •>
,
V ' /
Oct. 5 filed 375,000 shares of outstanding common stock
(par $1). Price—To be related to the market price at the

notification)

ex¬

Office

Israel Development Corp.
Sept. 22 filed 200,000 shares of common stock (par $25).
Price—$27.50 per share, payable in cash or State of Israel
Independence Issue or Development Issue bonds. * Pro¬

tendered

continue its exchange.;Office
—500 Denver National Bank Building, 821 17th Street,
Denver, Colo. Statement effective Sept. 1.
.-

June/1
•—-

Guerdon

off $2,500,000

or more

Ideal, at its discretion,

Underwriter—None.

Guaranty Insurance Agency, Inc.
See, Mortgage Guaranty Insurance Corp., below,
®

80%

York.

Guarantee Mortgage, Inc.
Aug. 14 (letter of notification) $100,000 of 10-year 6%

V,.

Venture

25% interest in such venture.

borrowings, and for general corporate pur¬
including the addition of working capital. Office—

5511

N. W. 37th Ave., Miami, Fla. Underwriters — The
Robinson-Humphrey Co., Inc., Atlanta, Ga., and Clisby &
Co., Macon, Ga.
Inland Western Loan & Finance Corp.
Sept. 24 filed $1,000,000 of 6% capital debentures. Price
—To be supplied
by amendment.
Proceeds—To dis¬
charge loans from banks and from the Commercial Life

offering begins. Proceeds—To. Harrison Factors

time the

selling stockholder. Office—425 Fifth Ave.,
Underwriter—Hemphill, Noyes & Co., New

the

Corp.,

York.

New

York.

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares of common stock, of which
Kentucky Finance Co., Inc. will offer its stockholders 51,000 shares.
Price—Of 30,717 shares, $115 each; and of
shares, $116 each. Proceeds—To selling- stock¬
Office—Anchorage, Ky, Underwriter—None.

51,000

holders.

Kilroy (W. S.) 1960 Co.
8 filed $3,500,000 of Participating Interests under
Participant Agreements in the company's 1960 Oil and
Gas Exploration Program, to be offered in amounts of
$25,000 or more. Proceeds—Acquisition of undeveloped
oil and gas properties. Office—2306 Bank of the South¬
west Bldg., Houston Texas.
Underwriter—None.

June

Kittanning Telephone Co.,

Kittanning, Pa.

Aug. 24 filed 14,000 shares of common stock, to be of¬
fered

by subscription to holders of outstanding common
stock on the basis of approximately 0.212 new shares for
each share held. Price—$25 per share.
Proceeds—In

of which 261,201 shares were offered to holders of out¬
standing stock of record Sept. 18,,jl959, on the basis of
one
new
share for each seven shares then held, and

Insurance

Co.; to furnish operating capital for subsidi¬

aries;

already existing ones. Office—10202 North 19th Ave.,
Phoenix, Ariz.
Underwriter—The underwriters, if any,

part to repay a bank loan in the amount of $450,000 rep¬

:26,120 shares are being offered for subscription by em¬
ployees.
Any shares not subscribed for by employees
will be offered to stockholders under an oversubscrip¬

will be named

provement, and

Oct. 23. Price —
$17.75 per share.
Proceeds—To be applied toward the
cost of the company's construction program, the pay¬
ment of $5,300,000 of bank loans obtained for such pro¬
gram, and the refunding of debentures and preferred
tion

privilege; rights will expire on

Office—1130 Alakea Street.

shares.

Underwriter—None,

Heliogen Products, Inc.
22, 1958 (letter of notification) 28,800 shares ot
stock (par $1). Price—$5 per share. Proceeds—
IFor payment of past due accounts and loans and general
working capital.
Office—35-10 Astoria Blvd., L. I. C
3, N. Y. Underwriter—Albion Securities Co., 11 Broad¬
way, New York 4, N. Y.
♦Oct.

common

Hemisphere Gas & Oil Corp.
April 27 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share).
Proceeds—
For development ol oil and gas properties. Office—702
American Bank Building, Portland 5, Ore. Underwriter
—D. Earle Hensley Co., Inc., 4444 California Avenue,
Seattle, Wash.
Hickerson

Bros.

Co., Denver, Colo.

Hickok Electrical Instrument Co. (10/12-16)
-Sept. 9 filed $500,000 of convertible subordinated deben¬

tures, due 1974, together with 100,000 shares of class A
capital stock, of which 90,000 shares are to be
publicly offered, and 10,000 shares offered to employees.

unsubscribed

will

offered

public.)
Price—For the debentures; at 100% of principal amount.
For the stock; to be supplied by amendment. Proceeds—
For

retirement

bank

loans, for the construction of
laboratories, and for working capital. Office—Cleveland,
Ohio. Underwriter—Hayden, Miller & Co., Cleveland,
Ohio.
•

Sept. 29

Hotels

Corp.
filed $30,000,000 of subordinated sinking fund

debentures due 1984. with warrants for

purchase of 360,000 common shares. Price—To be supplied by amendment.
iProceeds
For capitaf expenditures, Office — Chicago.
111.
Underwriters—Carl M. Loeb, Rhoades & Co., and
Merrill Lynch, Pierce, Fenner & Smith Inc. Offering—
Expected during latter part of October.
—

Hycon Manufacturing Co.
Aug. 28 filed 126,316 shares of

common

stock,

which

issued to Avco Corp. oh Dec: 8, 1958, at $2,375 per
sshares, and which \\ ill now be publicly offered by Avco.
were

Price—To

the

prices prevailing in the
over-the-counter market at the time, or times, the stock
is sold.
Office—1030 South Arroyo Parkway. Pasadena.
Cailf. Underwriters—The offering will be made through
registered brokers and dealers who are NASD members.
I C
June 29

filed

600,000 shares of common stock (par $1).
Proceeds—To further the corpo¬

branches

by amendment.

stock

mon

(par

cent).

one

amendment.

Office—1938

Park

Price—To

of com¬
supplied by

general corporate nurposes.
Avenue, New York City, N. Y. Un¬

derwriter—The James

Co., 12 E. 41st Street, New York.

it Intercontinental Motels, Ltd.
Oct. 7 filed 13$,000 shares of common stock (par 10c).
Price—$3 per share. Proceeds—To be added to working
capital in order to enable company to exercise options
motels

and/or

Underwriter

Va.

parcels of land. Office—Martinsville.
G. Everett Parks & Co., Inc., 52

—

Broadway,

New

the

City.

Offering—Expected

Resorts, Ltd.
Sept. 10 filed 99,000 shares of common stock (par $3) to
be offered first to stockholders on the basis of one new
share for each four

shares held

rights to expire

Nov. 30.

Underwriter—None.

Inc.

Glass,

—

gether with funds to be received froma $2,000,000 bank
loan and a $6,000,000 long-term loan from an institutional
investor, will be applied in part to repayment of all of the
company's outstanding indebtedness, and the balance
of the
proceeds wili be used to provide machinery,
equipment and working capital fcr a proposed new
plant ill the southeastern part of the United States, and
for
general corporate purposes. Underwriter—Smith,

York!

Barney & Co., New
Lee Telephone

Co.

(letter of notification) 20,888 shares of common
(par $10) being offered to stockholders of record
Sept. 19, 1959 on the basis of one new share for each 9^4
shares then held; rights to expire Oct. 15.
Price — $14

Sept. 8

Inter-Island

of record

Oct.

10,

1959;

Price—To be supplied by

Proceeds—For construction of a new hotel

amendment.

expansion.

(10/26-30)
J '■
Sept. 23 filed 200,000 shares of capital stock (par $6.25).
Price
To be supplied by amendment. Proceeds — To¬

before

November.

end

York

resenting funds acquired for general modernization, im¬

Knox

Proceeds—For

stock

Proceeds—To be used to curtail short-term
E. Church St., Martinsville, Va.

share.

per

bank loans. Office—127

Underwriter—None.

Kalapaki Bay, on the Island of Kauai. Office—305
Royal Hawaiian Avenue, Honolulu, Hawaii. Underwriter

Lenahan Aluminum Window Corp.

July

—None.

filed 157,494 shares of common stock, to be
initially to stockholders on the basis of one
for each two shares owned (with a 15-day

offered

Washington, D. C.
Dec. 29 filed $5,000,000 of notes (series B, $500,000. tw<
International

Bank,

3% per unit; series C. $1,000,000. four-year 4% p*
unit; and series D, $3,500,000, 6-year, 5% per unit). Pr»«*.

year,

amount.
Proceeds—For workini
Underwriter—Johnston. Lemon & Co., Wast
Ington, D. C. Offering—Indefinitely postponed.
of principal

—100%

new

Price

standby).

International

Tuna

Bond &

(letter

common

stock

Proceeds—For

Interstate

Fire

Casualty Co.

(10/27)

of common stock (par $5).
amendment.
Proceeds—For
expansion. Office — 501 Livingston Bldg., Bloomington,
111. Underwriter—While, Weld & Co., Inc., New York.
17 filed 85,000 shares

Sept.

Corp., Miami, Fla.

Electric

Lenkurt

Co.

filed 10,000 outstanding shares of class B com¬
mon stock. Price—$83.31 per share. Proceeds—To selling
stockholder. Office — 1105 County Road, San Carlos,
Aug. 31

Corp.

of notification) 175,000 shares of class
(par 50 cents).
Price — $1 per shar*
equipment and working capital. Offic
—Pascagoula. Miss. Underwriter—Gates, Carter & Co
Gulfpoi't, Miss.

Aug.

$4 per share to stockholders; $5 to

—

public. Proceeds—For inventory and for working capi¬
tal.
Office—Jacksonville, Fla.
Underwriter—Plymouth

capital.

supplied by

Underwriter—None.

Calif.

Life

Insurance Co. of Florida

Sept. 28 filed 203,476 shares of common stock. Price—
$4.50 per share. Proceeds—For expansion. Office—2546
S.

Bond
•

8th
&

Street, Miami, Fla.
Corp., Miami.

Underwriter—Plymouth

Share
Inc.

MCA.

(10/9)

the

Sept. 8 filed 400,000 shares of common stock (no par).
amendment. Proceeds—To re¬
duce
short-term
bank indebtedness and for working

Trust. Price—$2,600 per certificate. Proceeds—To supply
the cash necessary to purchase the land at 1809-15 H

capital. Business—Engaged in the production and distri¬
bution of filmed series for television, etc. Underwriter—

St., N,

W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both

Lehman Brothers, New

of "Washington, D. C., and Swesnick & Blum Securities
Corp.
1
;
•

cents

Investment Trust for the Federal Bar

Aug.

filed

500

Beneficial

Trust

3ldg.

Certificates

Price—To be supplied by

Irando

Oil & Exploration, Ltd.
April 24 filed 225.000 shares of common stock. Price—90
cents per

ration

share. Proceeds-^-To defray the costs of explo¬
development of properties and for the ac¬
of other properties: also for other corporate
Office—1950 Broad St., Regina, Sask., Can

and

quisition
purposes

Underwriter

Inc.

Price—-$2.50 per share.

subsidiaries

Insul-Cup Corp. of America (10/15)
Sept. 18 (letter of notification) 300,000 shares

Price—To

Hilton

new

•

common

{Any

establish

Truck

Co., Inc.
March 11 (letter of notification) 285,000 shares of com
mon stock.
Price—At par ($1 per share). Proceeds—T*
pay existing liabilities; for additional equipment;
an'
:for working capital.
Office—East Tenth Street, P. C
©ox 68, Great Eend, Kan.
Underwriter—Birkenmaye
&

and

—

Laird T&

Rumball, Regina, Sask.,

Can

filed

13,500.000

common

stock,

York.

Oils Ltd.

May li filed 390,000 shares of common stock.

Price—60

share.
Proceeds — For exploration, develop¬
ment and acquisitions. Office—5 Cobbold Block, Saska-=
toon, Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities Ltd., Regina, Saskatchewan, Canada.
per

Madison

Gas

Electric

Co.

Sept. 15 filed 82,000 shares of common stock (par $16), to
be offered for subscription by the
common

-five

stock

shares held

the

purposes.

holders of outstanding
new share for each

basis of one'
about

Oct. 5.

Price—To be

sup¬

Proceeds—For general corporate
Office—Madison. Wis. Underwriter—None.

plied by amendment.

if Israel American Oil Co.
Oct.

Volume 190

Number 5838

The Commercial and Financial Chronicle

Magnuson Properties, Inc.
29 filed j500,000 shares of class A common stock
on Aug. 24 to 150,000 shares of 6V2% cumu¬
lative convertible preferred
stock, par $10), and 150,000
skates of class A common stock, par $1, with common
*;"

use
its proceeds for additional working capital.
Office—(of both firn^s) 606 West Wisconsin Ave., Mil¬

will

June

(amended

one

share of such

common

stock at

ic Murry's Steaks, Inc.
Sept. 17 (letter of notification) $250,000 of debenture
bonds maturing in five years to be offered in units as
follows: $100 units to bear 6% interest; $500 and $1,000

initial

units to bear 8% interest.

price of-$11

per share. Price—For preferred, at par; and
for. class A, $10.10 per share. Proceeds—$291,099 is to
be expended during the period enciing Aug.

funds

company and
used for general
purposes. Office—20 S. E. 3rd Ave., Miami,
Underwriter—Blair & Co. Inc., New York. Offering
—Expected this Fall.

June

share.

Proceeds—For

general

Underwriter—None.

Sept. 1 (letter of notification) 75,000 shares of

Proceeds

$675,000, which

Mid-America Minerals, Inc.

Valley Water Co. '
(letter of notification) $125,000 of 5%% first
mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost oi*
construction of the water supply and distribution sys¬

bank loan

the

tem; to pay the cost of a new 12 inch well to increase,
the company's supply of water; and to pay the costs an<?
expenses of financing.
Office—330 Main St., Mantua,,
N. J.
Underwriter
Bache & Co., Philadelphia, Pa.
Offering—Expected in mid-October.
—

• Oil, Gas & Minerals, Inc.
April 2 filed 260,000 shares of common stock (par 35
cents. Price—$2 per share.
Proceeds—To retire bank

includ¬

amount

Mass.

was

debentures. Office

Underwriter

loans and for investment purposes. Office—513 Interna¬
tional Trade Mart, New Orleans, La.
Underwriter —

—

mine whether

^ National Dairy Products Corp.
2 filed 300,000 shares of common stock, to be of¬

the

Oct.

company's Employee Stock
Option Plan. Office—260 Madison Ave., New York.

—

Industrial

Minerals

Ltd.

150,000 shares of common stock (no par).
per share,
Proceeds — To retire indebt¬

ceeds

edness for construction of

plant and for other liabilities,
used for operating capital.
Office
Regina, Saskatchewan, Canada. Underwriter—
Laird & Rumball Ltd., Regina, Saskatchewan, Canada.
the

and

remainder

will

Office—Mid-America Bank
Underwriter—None.

Minerals, Inc.
$1,875,000 of Participations

Oil and
Gas Fund.
Pi ice—150 units will be offered at $10,000
each, and 150 units will be offered at $2,500 each. Pro¬
in

ceeds—To facilitate the completion of oil and gas wells.
Office — 500
Mid-Amerioa Bank Building,
Oklahoma

Okla.

Underwriters—The offering will be made
on a
"best efforts" basis by the issuing company and
Midamco, Inc., its subsidiary.
Mobile Credit Corp.
June 8 filed 15,000 shares of common stock to be offered
for sale in Michigan and Pennsylvania. Price—$10 per

Proceeds—To provide additional working capital
the purchase of vendors' interests in conditional

share.

sales contracts and other like evidences of indebtedness.

Mich.

Under¬

Montreal

None.

Palestine Economic Corp.
Sept. 28 filed 124,000 shares of common stock. Price$25 per share, payable in cash, State of Israel bonds at
par, or both. Proceeds—For general corporate purpose#
bearing on the further development of industry anc?
agriculture in Israel. Office—18 East 41st Street, New

National Life & Casualty Insurance Co.
filed 250,000 shares of common capital

York.

stock
company's life
insurance policies issued on or prior to Dec. 31, 1955,
and to certain employees. Price—$4.44 per share. Pro¬
ceeds—To increase capital and surplus.
Office—2300
North

Central

holders

Avenue,

certain

Phoenix,

None.

National

...

Munsey Co.

;

Ariz.

„>.f

Sept. 28 filed 293 limited partnership interests. Price—
$5,000 per unit. Proceeds—To purchase land and erect
buildings thereon. Office—535 Fifth Avenue, New York
City. Underwriter—Tenney Securities Corp.

+ New England Fund
Sept. 30 filed (by amendment)

an. additional 200,000
shares of beneficial interest in the Fund. Price—At mar¬
ket.

Aug. 7 filed 2,612,430 shares of common capital stock to
be issued pursuant to options held by Marine Drilling;
Inc. Latter company will, in turn, offer its stockholder#
rights to purchase two shares of Pan-Alaska common, a£
20 cefits a share, for each share of Marine Drilling stock.
Marine Drilling also plans to sell 250,000 shares of thev
680,000 shares of Pan-Alaska it now owns. Underwriter

Underwriter—
.

Proceeds—For investment.

Office—Boston, Mass.

Underwriter—None.

Pan-Alaska Corp.

(City of) Canada (10/19)
• National
Union Fire Insurance Co.
(Pittsburgh,
Sept. 25 filed $20,000,000 of sinking fund debentures for
tr
Pa.)
(10/16)
public works, due 1079. Price — To be supplied by
Sept. 24 filed 200,000 shares of capital stock (par $5)
amendment.
Proceeds — To repay interim borrowings
to be offered for subscription by stockholders of record
incurred by the City for various public works projects.
Oct. 16, 1959, on the basis of one additional share of
Underwriter—To be determined by competitive bidding.
capital stock for each three shares then held; rights to
Probable bidders: Smith, Barney & Co. and Dominion
expire on Nov. 16. Price—To be supplied by amendment.
Securities Corp. (jointly); Shields & Co., Halsey, Stuart
Proceeds-—To increase capital and surplus. Underwriter
& Co. Inc. and Salomon Brothers & Hutzler (jointly);
—The First Boston Corp., New York.
Lehman Brothers, White, Weld & Co., Eastman Dillon,
-Union Securities & Co. and Blyth
Nationwide Auto Leasing System, Inc.
Inc. (jointly).
Bids—Expected to be received up to 12:30 p.m. (EDT)
July 16 (letter of notification) 142,500 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—
in Montreal.
For financing of leased cars and for general corporate
Mortgage Guaranty Insurance Corp.
purposes. Underwriter—Investment Bankers of America,
Sept. 23 filed 40,000 shares of common stock (par $10) in
Inc., Washington, D. C.
a joint registration
with Guaranty Insurance Agency,
Inc., which filed 10,000 shares of its own common stock
(par $5). Price—$115 per unit of four shares of Mortgage
common and on<£ share of Guaranty common. Proceeds—
Mortgage will use its proceeds fo rexpansion; Guaranty

Sept. 23 (letter of notification) 10,000 shares of common
(par $1)'to be offered to key employees and those;
of its subsidiaries. Rights expire on Oct. 26, 1959. Price
—$10 per share. Proceeds—For working capital. Office
—400 W. Madison Street, Chicago, 111.
Underwriter—

March 25

including the

corporate purposes,

stock

Co., New York.

offered

For general

if Oliver Corp.

(par 50 cents) of which 75,000 shares are to be sold for
the account of the issuing company and 125,000 shares
for the account of selling stockholders. Price—To be sup¬
plied by amendment. Proceeds—For general corporate
purposes, including the purchase from Grant Ave. Realty
Corp., at seller's cost, about 6.25 acres of Cleveland land,
on
which a building is being constructed which will
house the issuing company's executive offices and Cleve¬
land operations. Underwriter—C. E. Unterberg, Towbin

—

acquisition and development of properties for secondary
oil recovery purposes. Office—405 Lexington Ave., New
York City.
Underwriter—Lehman Brothers, New York..

• National
Key Co., Cleveland, Ohio (10/19-23)
Sept. 17 filed 200,000 shares of class A common stock

offering.

Oil Recovery Corp. (10/13)
Sept. 15 filed $550,000 of 6% convertible subordinated
debentures, due 1974, and 5,500 shares of common stocky
to be offered in units of $500 of debentures and 5 shares*
of stock. Price—To be supplied by amendment. Pro¬

fered for sale pursuant to the

National

New Orleans, La. The SEC
begin on Sept. 2, to deter¬
stop order should be issued suspending

Assets Investment Co., Inc.,
had scheduled a hearing, to

ditions.

Aug. 4 filed
Price
$1

—

Mid-America

Oak

June

incurred to retire certain 5% con¬
61 Sherman St., Maiden,
White, Weld & Co., New York.
This offering has been postponed due to market con¬

vertible

$921,852 of Working Interests and Over¬
riding Royalty-Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬

Office—11746 Appleton Avenue, Detroit,
writer—None. Statement effective Aug. 3.

the costs and expenses of financing. Office*
St., Mantua, N. J. Underwriter—Bache &
Philadelphia, Pa. Offering—Expected in mid-Oct

Co.,

National Co., Inc.
Aug. 28 filed 200,000 shares of common stock (par $1)
of which 150,000 shares are to be offered for the account
of the company and 50,000 shares for the account of the
present holder therebf. Price—To be supplied by amend¬

retirement

and to pay
—330 Main

stock.

ing the

Oct.

Valley Sewerage Co.;
30 (letter of notification) $145,000 of 5%% firsb
mortgage bonds series of 1958. Price—At par. Proceedh;
—To repay to Oak Valley, Inc. a portion of the cost oii
construction of sewerage collection and disposal system

Office—1030

ment. Proceeds—For general corporate purposes,

due

Oak

amended.

couple of weeks.

June 22 filed

for

anHJadditional working capital.

debentures

June

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
For new equipment, inventory and working capital. Ad¬
dress—P. O. Box 1658, Lakeland, Fla.
Underwriter—
R. F. Campeau Co., Inc., Detroit, Mich. Statement to be

■

City,

reserved

Inc.,, New York. Offer¬
early November.

stock

April 20

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,000 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto, Calif. Underwriter
—None. Financial Adviser—Hill, Richards & Co., Inc.,
Los Angeles, Calif.

filed

stock

common

$250,000 of 7% sub¬
1969 with common,
purchase warrants- entitling the holders of the
warrants to purchase 25,000 shares of common stock
(par
10 cents).
Price—$1,020 per $1,000 debenturewith warrant for purchase of 100 shares of common stock
attached. Proceeds—For working capital.
Office—Min¬
neapolis, Minn. Underwriter—Woodard-Elwood & Co^
Minneapolis, Minn.
ordinated

additional 10,000
for issuance to key
an

National Citrus Corp.

if Metropolitan Telecommunications Corp.
Sept. 28 (letter of notification) 99,933 shares of common
(par 10 cents). Price—$3 per share. Proceeds—
For working capital.
Office—964 Dean St., Brooklyn,
N. Y. Underwriter—Lee Co., New York, N. Y. Offering
—Expected in late October.

mon

if Nu-Line Industries, Inc.
Sept. 28 (letter of notification)

S.ixth West Street, Salt Lake City, Utah. Under¬
writers-Peters, Writer & Christensen, Denver, Colo.

stock

Sept.

ing—Expected in late October

South

Inc., New York, N. Y. Offering—

ment in oil and gas lands.
Bldg., Oklahoma City, Okla.

The statement also includes

machines

• Metallurgical
Processing Corp., Westbury, N. Y.
Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
retire debts; to acquire new equipment for processing
metals and to expand its overall capacity; to move its
facilities and new equipment into a new building and for
further development and expansion. Underwriter—Neth¬

shares for each five shares*

per

N. Y. Underwriter—Alkow & Co.,

stock

Sept. 25 (letter of notification) 80,000 shares of common
stock (par $1).
Price—$2.50 per share. Proceeds—For
building qrrcqmpany property, purchase of new vending

Evans & Co., Kansas City, Mo.

Expected in

common

^ National Beverages, Inc.

For

erlands Securities Co.,

50,000 shares of

common

working capital. Office — 940
Riato Bldg., Kansas City, Mo. Underwriter—McDonald
—

loans. Underwriter—Milton D. Blauner & Co., Inc., New
York.

stock (par value 10 cents) and $100,000 of 6% five-year
convertible debentures in denominations of $100, $500
and $1,000 each.- Price—For the common stock, $2 per

Price—$2

Northern Properties, Inc.
Sept. 8 filed 150,000 shares of common stock (par $2.50)*
Price—$5 per share. Proceeds—To acquire and develop
various properties in New York State. Office—Hartsdalej.

employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank

Mercantile Credit Corp.

share.

filed

corporate purposes,
Office—4383

new

share. Proceeds—To reduce indebt¬
balance, if any, to be used as working
capital. Office—Matthews, N. C. Underwriter—One orr
more
security dealers will be offered any shares not?
subscribed for at $2 per share.

(10/12-16)

share.

Price —$10

Including expansion and working capital.
Bandini Boulevard.

held.

(par 10
cents) and 50,000 warrants to be offered in units, con¬
sisting of brie share of common stock with attached
warrant entitling the holder to purchase one additional

Oct. 1 filed 301,177 shares of common stock
(pgr $1), to
be offered to holders of such stock on the basis of one

per

Underwriter—None.

Microwave Corp.

Narda

if Mayfair Markets

shares then held.

stock in the ratio of two
edness with the

New York.

each five

Price—At parr Proceeds—To

N. A. Building Associates
Sept. 4 filed $2,120,000 of Participations in Partnership
Interests in Associates. Price—$10,000 per unit. Proceeds
—To supply the cash and incidental expenses necessary
to the purchase of the National Association Building,
25 West 43rd St., New York. Office—60 East 42iid St.,

corporate

share for

Telephone Co.
Sept. 4 filed 576,405 shares of common capital stock, tobe offered for subscription by holders of outstanding

None.

the

Underwriter—None.

North Carolina

working capital. Office
Avenue, Alexandria, Va. Underwriter—

Swann

—403

Fla.

new

Kan.

retire short-term loans and for

31, 1960 for
mortgage payments and releases; $465,000 will be paid
on notes acquired
by members of the Magnuson family
in the transfers of subsidiaries and
properties to the
company; $106,000 will be used to close certain options
and purchase contracts covering lands in the MelbourneCape Canaveral area; the balance will be added to the
general

if Northeastern Gas, Inc.
Sept. 28 (letter of notification) 7,863 shares of common
stock.
Price—At par ($25 per share).
Proceeds—For*
working capital. Office—2018 S. Oliver Street, Wichita,

waukee, Wis.
.

stock purchase warrants. Each share of class A common
stock carries one warrant entitling the registered holder
to purchase

(1509) "3?

—Any stock not subscribed for by holders of Marine*
Drilling will be publicly offered by Crerie Co., Houston,
'

Clark, Landstreet & Kirkpatrick, Inc.,
ville, Tenn., at a price of 20 cents ja share.

Texas and

Pantasote Co.

Nash¬

(10/19-23)

Aug. 28 filed $2,700,000 of 6% subordinated
debentures, due Oct. 1, 1974 (with warrants

sinking fund
attached en¬

titling the holder to purchase 50* shares of common stock
of the issuing company for each $500 of debentures).
Price
100% and accrued interest.
Proceeds — For
—

construction, equipping, and placing in operation of v,
new plant, with the balance to be used for general cor¬
porate purposes. Office—26 Jefferson St., Passaic, N. J.
Underwriter—Blair & Co. Inc., New York.
*

Participating Annuity Life Insurance Co.
$2,000,000 of variable annuity policies. Pro¬
For investment. Office — Hathcock Building^

June 4 filed
ceeds

—

Fayetteville, Ark.

Underwriter—None.

Pathe News, Inc.

Sept. 17 filed 400,000 shares of common stock
^ents) with warrants to purchase an additional

(par 10

100,000

Continued on page

The Commercial and Financial Chronicle

(1510)

Continued from page 37
shares

common

$3.25

share, with warrants.

share.

per

$3.75 per
corporate

Price

Proceeds—For general

purposes, including the addition of working capital, the
reduction of indebtedness, and
the provision of the

$173,000 cash required upon the exercise of an option to
purchase the building at 245-249 W. 55th St., New York.
Office—245 W. 55th St., New York. Underwriter—Chauncey, Walden, Harris & Freed, Inc., New York.
Offering
—Expected in about 30 days.
V
Psckman Plan Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1)
Price—At market.
Proceeds—For investment.
Under-

writer—Investors Investments Corp., Pasadena, Calif.
•
Philadelphia Electric Co. (10/14)
Sept. 17 filed $50,000,000 of first and refunding mortgage
bonds, series due Oct. 1, 1989. Proceeds—For expansion

program. Underwriter—To be determined by competitive

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Kidder, Peabody & Co., East¬
man
Dillon, Union Securities & Co., Merrill Lynch,
Pierce, Fenner & Smith Inc., and White, Weld & Co.
(jointly); The First Boston Corp. Bids—Expected to be

received up to neon (EDT)

Photo-Marker Corp.
Sept. 14 (letter of notification) 50,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For acquisition of a coating plant; establishment of
eight
branch

loans, due Jan. 1, 1960, incurred to finance construction,
which bank loans are expected to aggregate about $23,000,000 at the time of such sale. Underwriter — To be
determined by competitive bidding. Probable bidders:

Halsey, Stuart & Co. Inc., and Lehman Bros, (jointly);
Merrill Lynch, Pierce, Fenner & Smith Inc.; Stone &
Webster Securities Corp.; The First Boston Corp. and

Barney & Co. (jointly). Bids—Expected to be
received up to noon (EST) on Oct. 28, at 90 Broad St.,
19th Floor, New York, N. Y.
z

offices; moving to larger quarters and fur¬

ther research. Office—153 W. 36th St., New York

18, N. Y.
Edens, Sloss & Co., Inc., New
York, N. Y., and First Albany Corp., Albany, N. Y. Of¬
fering—Expected shortly.

Underwriters—Marron,

cated

near

leased

West

from

Palm

Beach.

International

formed Minneapolis real

options to
Minn.

renew.

—

three

Properties,

have

Inc.,

been

newly-

estate firm, for 15 years, with

Office

Underwriter

These

Baker

Bldg., Minneapolis,
Craig-Hallum, Inc., Minneapolis,
—

Minn.

Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock (par $1),
of which

55,000 shares are to be offered first to stock¬
holders of record Aug. 31, 1959, and 45,000 shares (mini¬
mum) are to be offered to the public, which will also be
offered any shares unsubscribed for by said stockholders.

Price—$5

per

share. Proceeds

—

For general

corporate

purposes, possibly including the enabling of the issuing
company to make application;fdr: licenses to conduct its
insurance business in States other than Illinois, the sole

State in which it is presently licensed. Office—222
Adams St., Chicago, 111. Underwriter—None.

if Pine Street Fund, Inc.
2 filed 300,000 additional

Oct.

At market.

York

Proceeds

—

For

common

investment.

shares.
Office

Price—
—

New

Planholders

Institute, Inc.
Sept. 11 filed $2,000,000 of Selected Plans.

Proceeds—
Office—26 Broadway, N. Y. C. Under¬
as underwriter.

writer—The issuing company will serve

if Plastic Applicators, Inc.
Oct. 1 filed $1,000,000 of convertible subordinated sink¬
ing fund debentures, due 1969.
Price—At
100%
of
principal amount. Proceeds—For general corporate pur¬
poses. Office—7020 Katy Road, Houston, Texas. Under¬
writer—A.

Edwards

Sons, St. Louis, Mo.

•

Porce-Alume, Inc.
(10/12-16)
Aug. 3 (letter of notification) 300,000

shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For expansion. Office—Alliance, Ohio. UnderwriterPearson, Murphy & Co., Inc., New York. Offering —
Expected in early October.
mon

July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds — For general corpo¬
—

rate purposes. Office—1202
writer—John G. Cravin &

Myrtle St., Erie, Pa. Under¬
Co., New York.

Offering—

if Radar Design Corp.
Sept. 29 (letter of notification) 60,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To go to
the company. Office—104 Pickard Dr., Syracuse 11, N. Y.

Electronics Corp.

Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
vertible sinking fund debentures, series II, due Oct. 15,
1969, and 120,000 shares of class A stock (par 10 cents).
For debentures, 100% of principal amount; for

Price

—

stock, $5 per share. Proceeds—To acquire Radiant Lamp
Corp., of Newark, N. J., with the balance to be used as
working capital. Office—40 Washington Place, Kearney,
N. J.
Underwriter—Amos Treat & Co., Inc., New York.
Offering—Expected sometime in November,
Radiation Dynamics,

Inc., Westbury, N. Y.
The com¬
to offer to its stockholders the right to

Sept. 8 filed 25,000 shares of common stock.
proposes

pany

11,325 shares at, $10 per share, with war¬
equal number of common shares at
share, on the basis of one new share for each

rants to purchase an

$12.50 per

four shares held.

Hayden Stone & Co. has agreed to

pur¬

chase 2,500 shares for its own
efforts to place 11,175 shares

account and to use its best
with certain^ selected in¬
vestors at $10 per share, with warrants to purchase an
equal number of shares at $12.50 per share. Proceeds—
For working capital. Office—1800 Shames Drive, Westbury, L. I., N. Y.
Underwriter—Hayden, Stone & Co.,
York.

New

stock

• Powell River
Co., Ltd.
Aug. 20 filed 4,500,000 ordinary sharps (no par) to be
offered, following a two-for-one stock split in September
to holders of record of, and in exchange for outstand¬
ing class A and class B shares of MacMillan & Bloedel,
Ltd., on the basis of seven shares of Powell River stock

tor three shares of MacMillan & Bloedel
stock, whether
class A or class B. Thereafter, the name of the

Radio City

Products Co., Inc.
Aug. 17 (letter of notification) 100,000 shares of com¬
mon stock (par 25 cents). Price—$3 per share. Proceeds
—For machinery and electronic test equipment, envi¬
ronmental testing equipment, placing accounts payable
on discount basis, retiring trade note?,.retiring loans outstandingj research and develdpmeht and for working
capital. Office — Centre & Glendale Sts., Easton, Pa,
•

Radio

Frequency Company, Inc.
(10/12-16)
(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mass.
Underwriter—Myron A. Lomasney & Co., New York.
Aug.

Raub Electronics Research Corp.
July 15 filed 165,000 shares of common stock (par $1),
subsequently reduced by amendment to 115,500 shares,
of which 100,000 shares will be offered to the public.
Price—$8.50 per share. Proceeds—For general corporate
purposes.
Office—1029 Vermont Avenue, N. W., Wash¬

ington, D. C. Underwriter—Weil & Co., Washington, D. C.
Raymond Service, Inc.
Sept. 3 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For machinery and equipment; retiring current indebt¬
edness; a sales development program and working capi¬
tal.
Office—36-40 37th Street, Long Island City, L. I.,
N. Y.
Underwriter—The James Co., New York, N. Y.
Offering—Expected any day.

Reaisite, Inc.
July 28 filed 200,000 shares of class A stock. Priced— $3
per share.
Proceeds—To pay off mortgages and for
working capital. Office—Jamaica. L. I., N. Y. Under¬
writer—Robert L. Ferman &

Co., Miami, Fla. Offering—

Expected in about three weeks.
•

March

Rek-O-Kut Co., Inc.
Sept. 25 filed 214,000 shares of common stock, of which
142,666 shares are to be offered for the account of the
issuing company and 71,334 shares are to be offered for
the accounts of the present holders thereof.
Price —
$3.50 per share. Proceeds — For general corporate pur¬
poses, including the repayment of indebtedness and for
tooling and production. Office—38-19 108th St., Corona,
L. I., N. Y. Underwriter—D*. A. Lomasney & Co., New
York. Offering—Expecteid in three to four weeks.

eights acquired in connection with life insurance policies

June 29 filed 1,250,000 unit shares of capital stock

issuing
would be changed to MacMillan, Bloedel &
Powell River, Ltd.
Office — 1204 Standard Bldg., Van¬
couver, B. C., Canada. Dealer-Managers—White, Weld &
Co., Wood, Gundy & Co., Inc., and Greenshields & Co.,
All of New York; and Wood, Gundy &
Co., Ltd., and
Greenshields & Co., Inc., of Canada. Statement is ex¬
pected to become effective today (Oct. 8).

oompany

Producers Fire & Casualty Co., Mesa, Ariz.
31 filed 400,000 shares of common stock to be
offered for subscription by holders of stock purchase

issued by Dependable Life Insurance Co. and to certain

Agents and brokers of Producers Fire & Casualty Co.
Price—$5 per share.
Proceeds—For working capital.
.Underwriter—None.

if Professional Acceptance Corp.
Sept. 21 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
working capital.
Office —1489 S. Broadway, Denver,
Colo.

Underwriter—None.

Professional

Finance

Co.

Sept. 22

(letter of notification) 125,000 shares of com.mon stock (par 10 cents). Price—$1 per share. Proceeds
—For working capital. Office—c/o Charles E.
Coleman,
Pres., 3300 West Grand Ave., Littleton, Colo. Under¬
writer—The issue will be underwritten by R. W. Newton

^Secretary-Treasurer.

stock for each share of

stock of Brooks and two shares of common
stock of Ritter for each share of common stock of
Brooks.
The exchange offer is being made by Ritter in
accordance with its agreement with Brooks and certain
of its
stockholders who own an aggregate of 18,805
of

its

outstanding

stock,

common

approxi¬

62.5% of such stock, and who have agreed to
accept the exchange offer upon effectiveness of the reg¬
mately

istration statement.
Rochester Gas & Electric Corp.

(10/22)

mortgage bonds, series
E, due 1989. Proceeds—For general corporate purposes,
including the repayment of loans incurred to finance
construction, which amounted to $10,950,000 at Sept. 21,
Underwriter—To be determined by competitive bidding,
Probable bidders: Kidder, Peabody & Co.; White, Weld
& Co.; Shields & Co. Bids—Expected to be received on
Sept. 25 filed $12,000,000 of first

■::v
ipr

Rondout Corp.

Sept. 4 filed 155,000 shares

i
of common stock, of which

140,0,00 shares are to be publicly offered.

Price—$3.50

&§re.

Proceeds—To buy the capital stock of Rond¬
iMper Mills, Inc., and to purchase notes of said
company, currently held by Arrowsmith Paper Corp.,
witbiAe balance to be used for general corporate purposl^ihcluding working capital. Office—785 Park Ave.,
Newark, the address of the corporation as given in
the ministration statement, is the home address of Leif
B. N&ritrand, President of the issuing company.
Pur¬
suant
the contemplated merger of Rondout Paper
Mill$Sinc. into Rondout Corp., it is anticipated that
RoridMt Corp., as the surviving company, will conduct
its bft&hess from 41 E. 42nd St., New York, the present
offic^Sof Rondout Paper Mills, Inc. Underwriters —
SandMhl & Co., Inc., Newark, N. J.; and S. B. Cantor ■Co., New York. Offering—Expected sometime in October^
per
out

Underwriter—None.
Radiant Lamp &

share of Ritter preferred

one

preferred

Oct. 22..

Expected in October.

Thursday, October 8, 1959

Roto-American

Corp.

.■

Aug. 28 (letter of notification) 80,000 shares of common
stock. Price—$3.75 per share. Proceeds—To redeem prer
common
stock outstanding held by Roto
wholly-owned subsidiary; for the purchase of
new tooling to expand production;
for working capital
and general corporate purposes. Office—93 Worth St.,
New York, N. Y. Underwriter—Morris Cohon & Co., New
York, N. Y. Offering—Expected any day.

and

ferred

Bag,

Roulette Records, Inc.

Aug. 27 filed 330,000 shares of common stock (one
of which 300,000 shares are to be publicly offered.

cent),

Price
Proceeds—For general corporate pur¬
including moving to new quarters and installing

—$3.50

per

share.

poses,
executive offices and sound studio

facilities therein, acjquiring technical equipment and machinery, and adding
to
working capital. -Office — 659 10th Avenue, New
York. Underwriter—Chauncey, Walden, Harris & Freed,
Inc., 580 Fifth Avenue, New York. Offering—Expected
in

three

four weeks.

Underwriter—None.

City. Underwriter—None.

For investment.

Rad-O-Lite, Inc.

•

Pik-Quik, Inc.
Sept. 17 filed 500,000 shares of common stock (par $1).
Price—$3.50 per share. Proceeds—To place in operation
80 food markets in Florida, three of which will be lo¬

Smith,

•

Oct. 14.

•

new

•
Puget Sound Power & Light Co.
(10/28)
Sept. 21 filed $20,000,000 of first mortgage bonds, series
due Nov. 1, 1989. Proceeds—To repay outstanding bank

Republic Resources & Development Corp.
(par
Philippine centavo). Price—$2 per unit of 200 shares.
Proceeds—To be used in the company's oil exploration
program for the purchase of oil exploration and drilling
equipment, supplies and materials; to contract with U. S.
geophysical contractors for technical services; and to
pay its pro rata shares of the dollar exploration
ex¬
penses under dls agreement with three other companies
for joint exploration of concessions held in the Philip¬
pines. Office—410 Rosario St., Binondo, Manila, Philip¬
pines. Underwriter—John G. Cravin & Co., Inc., New
one

York.

Ritter

(P. J.) Co., Bridgeton, N. J.
stock, non-cumu¬
lative, voting, (par $100) and 60,018 shares of common
June 18 filed 4,827 shares of preferred
stock
and

(no par) to be offered to the holders of preferred
stock of Brooks Foods, Inc., at the rate

common

Yftuberoid

Co.

„

Sept. 28 filed 290,000 shares of capital stock, which were
given in exchange for all the assets of Mastic Tile Corp.
of

America

Sept.

30.

Office—South Bound

Brook,

Sofrierset County, N. J.

if St. Paul Ammonia Products, Inc.
2 filed $1,249,849 of 10-year 6% convertible sub¬
ordinated debentures, due Dec. 1, 1969, to be offered for
subscription by common stockholders on the basis of
$10 principal amount of debentures for each 10 shares
held. Price—At 100% of principal amount: Proceeds—
For inventory accumulation with the balance, estimated
at $125,000, to be added to working capital. Office—
South St. Paul, Minn. Underwriter—White, Weld & Co.,
New York. Offering—Expected late in October.
Oct.

Samson Convertible Securities

Fund, Inc.

July 15 filed 200,000 shares of common siock. Price—To
be supplied by amendment.
Proceeds—For investment.
Office—23 Hazelton Circle, Briarcliff Manor, N. Y. Gen¬
eral Distributor—Samson Associates, Inc. Offering—Ex«pected in late October.
■if San Diego Gas & Electric Co.
1
Oct. 6, 1959 filed 500,000 shares of common stock, to be
offered
for subscription
by common stockholders on
the basis of one new share for each eight shares held
of record Nov. 4.
Price—To be supplied by amend¬
ment.
Proceeds—To reimburse treasury funds of the
company.
Office —San Diego, Calif.
Underwriter —
Blyth & Co., Inc., New York and San Francisco.
Scaico

Controls, Inc.
(leter of ^'notification) 240,000 shares of com¬
mon
stock (par 10 cents). Price—$1.25 per share. Pro¬
ceeds—For research and development; increaese of plant
facilities; sales and training program; sales promotion
and for general corporate purposes. Office—P. O. Box
41, 450 Cooper St., Delanco, N. J. Underwriter—Albion
Securities Co., Inc., 11 Broadway, New York 4, N. Y.
Sept.

Service

Life

Insurance

Co.

Aug. 25 filed 25,000 outstanding shares of common stock
(par $1). Price — $20 per share. Proceeds — To selling
stockholder. Office—400 West Vickery Blvd., Fort Worth,
Texas. Underwriter—Kay and Company, Inc., Houston,
Texas.
Servo Corp. of America
(10/20-23)
Sept. 11 filed $1,000,000 of eonv. subord. debens. due.,a
Oct. 1,1974. Price—-100% of principal amount. Proceeds—$300,000 for working capital; $300,000 for increased de¬
velopment and research, with particular attention to
civilian products; $200,000 for plant relocation and con¬
solidation at the Hicksville, N. Y., site and for expansion
of equipment; $100,000 for sales promotion and related
activities; and $100,000 for general corporate purposes!
Office—20-20 Jericho Turnpike, New Hyde Park, L. L,
N. YZX'nderwriter—Ira Haupt & Co., New York.

Volume

190

Number 5888

The Commercial and Financial Chronicle

Shelbourne Realty & Construction Corp.

148,500 shares of class A
(par 10 cents). Price—$2 per share. Pro¬
ceeds—For working" capital.
Office—15
William St.,
New York
5, N. Y. Underwriters—C. H. Abraham & Co.,
Inc., B. Fennekohl & Co., and Louis L. Rogers Co., all
of

New

stock

officials, who are
10% commission to

Third Avenue, New York. Underwriters—Paine, Webber,
Jackson & Curtis, and Halsey, Stuart & Co. Inc., both

company
pay

dealers in connection with the sale of their shares;

York, N. Y. and Maryland Securities Co.,- Inc.,
Electronics

Sylvania Electric Products, Inc.
Sept. 1 filed $25,000,000 of sinking fund debentures, due
Sept. I, 1984. Price — To be supplied by amendment.
Proceeds—To be applied to indebtedness.
Office—730

Underwriter—None, but the
making the offering, may

Baltimore, Md. Offering—Expected in October.
Shell

Southern

Manufacturing Corp.

Southern

England Telephone Co.

(letter of notification) 95,000 shares of capital
(par 10 cents); Price-—$1.50 per share. Proceeds—
To purchase and install manufacturing equipment; con¬
trol

of the

Sept. 8
stock

and

capital.

test

equipment; advertising and

for working
Un¬
Inc., Denver,

Office—17 Jutland Road, Toronto; Canada.

derwriter—Peters, Writer & Christensen,
Colorado.

• Shopping Centers Corp.
Oct. 1 filed 269,230 shares of common stock,
which

are

oh the

one

new

87,322 of
Oct. 15

share for each five shares then

held, -and 112,678 of which are to be publicly offered.
Price—To stockholders, $10 per share; to the public, $15
per share.
(The remaining 69,230 shares are to provide
for conversion of $692,300 of outstanding 6%
deben¬
tures.)
Proceeds—For general funds.
Office—201 Bes¬

Building, Pittsburgh, Pa. Underwriter—The com¬
pany President, Akiba Zilberberg, is underwriting the
issue on a best efforts basis, for which he is to receive
a
10% commission.1; Mr. .Zilberberg is also a principal

semer

Development ana Investment
of the aforementioned debentures.

officer

owner

Corp.,

Tower

Simon Hardware Co.

•

(10/19-23)

Sept. 14 filed $800,000 of 7% sinking

fund subordinated

debentures, due Sept. 30, 1971, and 80,000 shares of com¬
mon
stock
(no par), to be offered in units of $1,000
principal amount of debentures and 100 shares of com¬
mon

stock,
The

1960.
of

one

transferable only as units until March 31,
securities will also be offered in half-units

stock.

$500 debenture and 50 shares of common

amendment.
Proceeds—To
open one or more additional retail stores in Northern f
California, with the balance to be used for general
corporate purposes. Office — 800 Broadway, Oakland,
Calif. Underwriters—J. S. Strauss & Co., and York &
Co., both of San Francisco, Calif., and Mason Brothers,
Price—To

supplied

Oakland, Calif.
Sire Plan of Tarrytown, Inc.
July 13 filed $900,000 10-year 6% debentures and 18,000
shares of $3 cumulative, non-callable, participating pre¬
ferred stock (par $10). Price—$100 per unit consisting
of one $50 debenture and one share of preferred stock.
The minimum sale is expected to be five units. Proceeds
-—For

general corporate purposes incidental to the ac¬
quisition of land and buildings in Tarrytown, N. Y., and
alterations and construction therepn. Office—115 Cham¬
bers

Street, New York City. Underwriter—Sire
Portfolios, Inc., 115 Chambers Street, New York
Offering—Expected in October.

Plan
City.

Skaggs Leasing Corp.
June 4 (letter of notification) 240,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
general corporate purposes.
Underwriter—Harrison S.
Brothers & Co., Salt Lake City, Utah.
Skiatron Electronics & Television Corp.

directors in January

1958; 30,000 common shares arejto
Arthur Levey for sale by brokers.
Proceeds—For working capital. Office—New York City.
Underwriter—None. No. public offering is planned.
be offered by owner

• Sottile, Inc.
(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),
of which 1,543,000 shares are to be issued and sold for
the account of the company, and 457,000 shares, repre¬
senting outstanding stock, to be sold for the accounts
of certain selling stockholders. Price—To be supplied by

amendment.
stock

seven

Proceeds—To

retire

70%

the

common

outstanding at the date of the stock offering; to
in the .capital stocks of six of the company's
bank subsidiaries; to repay a bank loan of $6,400,-

000; to add to working capital; to retire certain longterm indebtedness; and to develop citrus groves. Office
—250

South

East First Street.

Miami. Fla.

Underwriter

—Bear, Stearns &

Co., New York. Offering—Indefinite.

•

Telephone

Southern

Bell

Telegraph

Airmotive

Co.

(10/20)

ton

Oct. 20 at

room

a.m.

(EDT)

2315, 195 Broadway, New York N. Y.

Southern Frontier Finance Co.

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working

for working capital.

and

expenses

Office—

Road, Waltham, Mass.
Underwriter — David
Co., Inc., New York. Offering—Expected any

day.

Tassette, Inc. (10/12-16)
Aug. 26 (letter of notification) 100,000 shares of class A
stock (par 10 cents). Price—$3 per share. Proceeds—
For purchase of furniture and fixtures, selling, adver¬
tising and other working capital. Office—170 Atlantic

St., Stamford, Conn. Underwriters—Amos Treat & Co.,
Inc. and Truman, Wasserman & Co., both of New York,
N. Y.

Tennessee Gas Transmission Co.

Gas Common for 2.75 shares of East Tennessee common.

supplied by amendment. Proceeds—Together with
funds, will be used for general corporate purposes,
including the addition of working capital, and the pro¬
viding of funds for adding to jet-engine overhaul facil¬
ities, including the purchase of shop equipment and
special tooling required for this purpose. Office—7515

present holders thereof.

To be

other

Lemmon

Ave., Dallas, Tex. Underwriters — Rauscher,
Pierce & Co., Inc. and Dallas Rupe & Son, Inc., both of
Dallas, Tex.
Span America Boat Co., Inc.
Sept. 9 (letter of notification) 175,000 shares of common
stock (par 25 cents). Price—$1 per share. Proceeds—To
purchase raw materials; for sales program and working
capital.

Address—Exposition

Underwriter
New York.

Park, Fort Dodge,
R. A.
Holman & Co., Inc., New
Offering—Expected in October.
—

Iowa.
York,

(Delaware) Inc.
of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF

Sports Arenas

Nov.

filed

$2,000,000

Pinspotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand two present establishments by increasing the
number of alley beds by eight at Yorktown Heights and
by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on leaseholds, telephones and utilities; and
$395,000 for working capital. Underwriter—None. Stoporder proceedings instituted by SEC.

Natural Gas Co.

par)

the basis of

Tennessee

and

one

shall have

cancelled.

East

share of Tennessee

been purchased or

Tennessee

presently

negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the redemption of the 5.20%

cumula¬

tive preferred stock. Exchange offer will expire on Nov.

16, 1959, unless otherwise extended; Office—Tennessee
Bldg., Houston, Texas.
Dealer-Managers — Stone &
Webster Securities Corp., and White, Weld & Co., both
of

New

York.

Statement

effective

Oct.

★ Tex-Tube, Inc.
Oct. 6 filed 150,000. shares of common stock, of which
100,000 shares are to be offered for the account of the
issuing company and 50,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holders thereof. Price — To be supplied by
amendment. Proceeds
To discharge bank loans, for
capital improvements, and to increase working funds.
Office—1503 North Post Road, Houston, Texas.
Under¬
—

writer—Moroney, Beissner & Co., Houston.
Texas Gas Transmission Corp.
(10/21)
Sept. 28 filed 150,000 shares of convertible second pre¬
ferred stock (par $100). This issue will carry a dividend
not to exceed 5J/2%.
Price—To be supplied by amend¬
ment.
Proceeds
For expansion and construction pro¬
*

—

gram.

(Delaware) Inc.
Nov. 18 filed 461,950 shares of common stock (par one
cent). Price—At the market (but in no event less than
$6 per share). Proceeds—To selling stockholders. Office
—33 Great Neck Road, Great Neck, N. Y.
Underwriter
—None. Stop order proceedings instituted by SEC.

East

redeemed

Underwriter—Dillon, Read & Co. Inc., New York.

Sports Arenas

★ Texas General Corp.
Sept. 30 filed 500 shares of class A stock. Price—At par
($500 per share). Proceeds—For general corporate pur¬
poses relating to exploring for oil and drilling on sites.
Office—320 Broadway, New York, N. Y. Underwriter—
None.

• Standard Beryllium Corp.
Sept. 3 (letter of notification) 150,000 shares of common
stock, (par one cent).
Price—$1.50 per share. Proceeds

—For

working capital and general corporate purposes.
St., New York 17, N. Y. Underwriter
—R. G. Williams & Co., Inc., New York, N. Y. Offering
—Expected any day.

Office—150 E. 43rd

Oct. 5 filed $500,000

tures,

due

amount.

Oct. 1,

of convertible subordinated deben¬

1974.

Proceeds—For

Price — At 100% of principal
general corporate purposes, in¬

cluding the purchase and installation of a modern paint
plant, and the purchase and installation of new tube mill
equipment. Office—4019 Medford St., Los Angeles, Calif.
Underwriter—John Keenan & Co., Inc., Los Angeles.Steak'n Shake, Inc.

shares of common stock, to be of¬
fered by subscription by common stockholders of record
Sept. 15, 1959, on the basis of one new share for each
9 shares then held. Price—$4.62 Vz per share. Proceeds—
Aug. 24 filed 65,505

general corporate purposes, including the developing
building
sites.
Office—1700 West Washington St., Bloomington,
For

of three drive-in restaurants on company-owned
111.

Underwriter—White

Texmar

Realty Co., New York
$1,819,000 of limited partnership interests
Price—At par ($5,000 per unit); Pro¬
ceeds—To be used to pay for properties. Underwriters
—Lifton Securities, Inc. and Hechler-Weingrow Secu¬
1 filed

Sept.
in

the

company.

rities, Inc., both of 375 Park Avenue, New York, N. Y.
Therm-O-Disc, Inc. (10/28)
Sept. 25 filed 121,057 shares of outstanding common
stock (par $1).
Price—To be supplied by amendment.
Proceeds — To selling stockholders.
Office — Route 13,
Mansfield, O. Underwriters—Goldman, Sachs & Co., of
New York, and McDonald
&Co. of Cleveland, O.
Thrift Drug Co.

Sept.

Co., St. Louis, Mo. Offering

—Expected in early October.

Stelling Development Corp.
(letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—
For mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

of Pennsylvania

supplied

supplied by amendment. Proceeds—For payment
of bank loans; for payment of a noteL_fpr: jyorking
capital; for expenditures by Strategic-Udy Metallurgical
& Chemical Processes Ltd., which owns and operates
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategic's principal subsidiary,
a

other direct subsidiary, Strategic-Udy Pro¬
cesses, Inc., which owns and operates a, laboratory at
Niagara Falls, N. Y.; as working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.
and

by its

Lunt &

Co., Buffalo, N. Y.; and Allen & Co., New York.

amendment.

retire bank indebtedness and assist in the

Proceeds—To
opening of 15

drug stores in 1959-60. Office—16th and Mary Sts.,
Pittsburgh, Pa. Underwriter—Singer, Deane & Scribner,
Pittsburgh, Pa.
new

Tower's Marts, Inc.
Aug. 28 filed 300,000 shares of class
(par 10 cents). Price—$3 per share.
duce indebtedness by about $300,000,
to be added to working capital of the

subsidiaries.
Conn.

Office—210

Underwriters—To

June 8

Strategic Materials Corp.
shares of common stock (par $1), to
for subscription by common stockholders at
the rate of one new share for each five shares held. Price

(10/14)
(par $1).

14 filed 75,000 shares of common stock

Price—To

—To be

Co. Bids—Expected to be received up to

Price-

Telegraph. Co., the issuer's parent company,
expected to approximate $64,000,000 at the
time the proceeds are received, and which were incurred
mainly for property additions and improvements. Office
—67 Edgewood Ave., S. E., Atlanta, Ga. Underwriter—
To
be
determined by competitive
bidding. Probable
bidders: Halsey, Stuart & Co., Inc.; Morgan Stanley &
&

certain
Jones

for the accounts of the

June 29 filed 368,571

are

Aug. 21 filed 473,167 shares of common stock (par $5),
being exchanged for, common stock of "East Tennessee

be offered

phone

offering has been deferred due to

Sept. 18 filed 200,000 shares of common stock (par $1), of
which 100,000 shares are to be offered for the account of
the issuing company, and 100,000 shares are to be offered

Sept. 25 filed $70,000,000 of 35-year debens., due Oct. 1,
1994. Proceeds—To renay loans from American Tele¬
which

for

•

(10/12-16)/

ic State Industries

Aug. 18 filed 172,242 shares of common stock (par 10
cents), of this stock, 128,500 shares were issued or are to
be issued pursuant to warrants issued in 1956; 13,742
shares are to be issued to various persons in lieu of cash
for services rendered, pursuant to authorization of the

Invest

outstanding stock) which are expected to approxi¬
mate $20,000,000, and the balance, if any, to be used for
general corporate purposes. Office—227 Church St., New
Haven, Conn. Underwriter—None.
Southwest

to be offered to stockholders of record

basis of

This

Tang Industries, Inc.
May 25 filed 110,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To purchase ma¬
chinery and equipment; for research and development;

Barnes

Aug. 24 filed 688,885 shares of common stock (par $25),
being offered for subscription to stockholders of record
Sept. 8, 1959, in the ratio of one new share for each 10
shares then held; rights to expire on Oct. 9, 1959. Price
—$35 per share. Proceeds — To repay advances from
American Telephone & Telegraph Co. (owner of 21.3%

Ltd.

York.

conditions.

•

New

—

Chemical

New

market

Gulf

Utilities, Inc. (10/20-23)
Aug. 24 filed 135,000 shares of common stock (par 5c).
Price—To
be supplied
by amendment. Proceeds—For
general corporate purposes, including expansion. Office—7630 Biscayne Blvd., Miami, Fla. Underwriter—Jaffee,
Leverton, Reiner Co., New York.

(10/19-23)
Aug. 28 filed 170,000 shares of common stock (par 10
cents). Price—$2 per share. Proceeds—For general cor¬
porate purposes, including the repayment of indebted¬
ness, the purchase of equipment, and for working cap¬
ital.
Office
112 State St., Westbury, L. I., N. Y/
Underwriter—Schweickart & Co., New York.
Shield

capital and to be used for the purchase of receivables
covering the installment financing of consumer prod¬
ucts or other types of financing in which the company
may engage. Office — 615 Hillsboro St., Raleigh, N. C.

Sept. 17 (letter of notification)
common

(15U)

A common stock
Proceeds—To re¬
with the balance
company and its
East Main Street, Rockville,
be supplied by amendment.

★ Town Enterprises, Inc.
Sept. 30 filed 200,000 shares of class A common stock,
(par 50 cents). Price—To be supplied by amendment.
Proceeds—For expansion, and for the reduction of in¬
debtedness. Office—902 Orange Street, Wilmington, Del.
Underwriter— Johnston,
Lemon
& Co., Washington,
D. C. Offering—Expected sometime in October.
Transcon

Petroleum &

Development Corp.,

Mangum, Okla.
(letter of notification) 300,000 shares of com*'
mon stock.
Price—At par ($1 per snare).- Proceeds—
March 20
For

development of oil properties.

Investment Planning
•

Underwriter—First

Co., Washington, D. C.

Inc.
1,900,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For salvage op¬
erations.
Office—1500 Massachusetts Avenue, N.
Treasure

June

Hunters,

4 filed

Washington, D. C. Underwriter—None. Statement
tive Sept. 28.
Continued

effec¬

page

The Commercial and Financial Chronicle

(1512)

Continued from

page

Vita-Plus

★ 1960 Trice Oil and Gas Co.
Oct. 2 filed
$5,500,000 of participations jn Programs
6001-4. Price—$5,000 per unit. Proceeds—For acquisition
and development of undeveloped oil and gas properties.
Office—Long view, Texas. Underwriter—None.
•
Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds — For investment.
Office—South Main Street, Qreenville. S. C
Under¬
—

writer—To be supplied by
tive Sept., 25.

amflbdrneait. Statement effec¬
•

Employees

Insurance

April 16 filed 2,000,000 shares of
Price

$10

—

per

share.

Co.

stock (par $5)
For acquisition ol

common

Proceeds

—^

Operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office space, bj
lease

purchase.

writer—None.

Office

Myrl

Wilmington, Dei. Under¬
McKee of Portland, Ore., i»
—

President.

U. S. Home & Development Corp.
Sept. 3 (letter of notification) 99,933 shares of class A
capital stock (par 10 cents). Price—$3 per share. Pro¬
ceeds
For construction of real estate developments.
—

Office

—

52 Neil

Underwriter

Ave., Lakewood, N. J.

—

Sandkuhl & Co., Inc., 1180 Raymond Blvd., RaymondCommerce Bldg., Newark 2, N. J. Offering—Expected in
October.
United Tourist Enterprises, Inc.
Jan. 28 filed 4,500,000 shares of class A common

stock
{par 50 cents). Price — $2 per share. Proceeds — For
development arid construction of a "Western Village"

and

for construction of

Grand

Estes Hotel arid

Con¬

vention

Hall, to be constructed in the immediate vicinity
of Estes Park Chalet, located in Larimer County, Colo.
Office
330 South 39th Street, Boulder, Colo.
Under¬
writer—Mid-West Securities Corp., Littleton, Colo.
—

United

Utilities, Inc.
Sept. 2 filed 229,606 shares of common stock (par $10)
Joeing offered for subscription on or about Sept. 29, 1959
in the ratio of one new share for each 10 shares
held;
rights to expire on or about Oct. 13. Price—$29.50 per
share.

Proceeds

—

For

construction

program.

Under¬

writer—Kidder, Peabody & Co., New York.
Universal

Container Corporation

Sept. 25 filed

167,500 shares of common stock (par 10
cents), of which 150,000 shares are to be publicly offered.
JPrice—$4 per share. Proceeds — For general corporate

purposes, including provision Of funds for the purchase
of the assets of a similarly engaged enterprise, working

capital, new equipment, and expansion. Office—Louis¬
ville, Ky.
Underwriter—Michael G. Kletz & Co., New
'York.
Offering—Expected in early November.
Universal

Finance Corp.

July 13 (letter of notification) 10,000 shares of common
(par 15 cents). Price—$5 per share. Proceeds—
JFor general operating funds. Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas National Corp.,
San Antonio, Tex.
•

Urethane

Corp. (10/26-11/1)
—' =—
Sept. 25 filed 170,000 shares of class A capital stock and
170,000 shares of common stock, to be offered in units

1989.

Proceeds—-To

publicity, advertising, business promotion and initiation
of a program of national distribution and for working
capital. Office—373 Herzl St., Brooklyn, N. Y. Underwriter—Caldwell Co., New York, N. Y.
>

loans, to reimburse treasury, and for additions and im¬

•

Vulcan Materials Co.,

cut

Co., both of Washington, D. C.

Wellington Electronics, Inc.
May 6 filed 240,000 shares of common stock (par 75
cents.
Price—$6 per share. Proceeds—For repayment
of a bank note; to complete the automation of the etched
foil production plant at Englewood, N. J.; for manu¬
facture of machines to be leased to capacitor manufac¬
turers; and for working capital. Office—65 HoneckJSt.,
Englewood. N. J. Underwriters—Amos'Treat & Co., Inc.,
and
Truman, Wasserman & Co., both of New York
Statement effective July 8.
,

Western Wood Fiber Co.

(piar $10)
40,000 shares of preferred stock (par $25). Price —
Proceeds—For construction and equipment oi
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—

and

par.

None.
Natural

Gas

To be

one

common

share.

addi¬

tional

per

unit. Proceeds—For

general

corporate

purposes, including the purchase of supplies, machinery,
.and equipment, and the leasing of a Los
Angeles plant
for manufacturing purposes. Office—235

Montgomery St.,
Francisco, Calif. Underwriters—Wilson, Johnson &
Higgins of San Francisco, and Evans, MacCormack &

San

Co., of Los Angeles.
Val Vista

Investment Co., Phoenix, Ariz.
80 investment contracts
(partnership in¬
terests) to be offered in units. Price—$5,378.39 per unit.
^Proceeds—For investment.
June

filed

curities Co.

Underwriter—O'Malley Se¬

Statement effective Aug. 11.

Variable Annuity Life Insurance Co. of America

April 21 filed $4,000,000 of Variable Annuity Policies.
IPrlce—No less than $120 a year for annual
premium
contracts and no less than $1,500 for
single premium
conU cts.
Proceeds—For investment, etc. Office—1832
M Street, N. W., Washington, D. C. Underwrite!*—None.
Vernors Ginger Ale, Inc.
(10/20)
Sept. 15 filed $750,000 of 6^% sinking fund debentures,
■due Oct. 1, 1974, with common stock
purchase warrants
attached, and 282,760 shares of common stock. Price—
The

debentures are to be offered at 100% of
principal
amount plus accrued interest. The
price of the common
shares will be $7 per share. Proceeds—-From the sale of
the

debentures, to redeem preferred stock and for use as
working capital; from the sale of the common stock^To

the Estate of James

Vernor, deceased, the selli&g sfockWoodward Avenue, Detroit, Mich.
Underwriters—Baker, Simonds & Co., Inc., of Detroit,
and Wm. J. Mericka & Co.,
Inc., of Cleveland, Ohio.
Victoria Raceway
jholder.

Office—4501

May 25 filed

1,000,000 shares of common stock (par $2
In Canadian funds). Price—$4.50 per share. Proceeds—
To construct and operate

a facing plant; and for work¬
ing capital and other corporate purposes. Office—Notre
King Street, Winnipeg, Canada. Under.writer—Original underwriter has withdrawn.

JDame Avenue at

applied, together with moneys in the sinking fund
of the issuing company, to the redemption of the out¬
standing 6% 20-year debenture bonds at their redemp¬
tion

price of 103% of their principal amount. OfficeMaple and 3rd Streets, Panama City, Fla.
Underwriter

—Beil & Hough, Inc., St. Petersburg, Fla.

Western Heritage Life Insurance Co.
Aug. 26 filed 500,000 shares of. common stock. Price—
$2 per share.- Proceeds—For general corporate purposes.

Office—533 East McDowell Road, Phoenix, Ariz. Under¬
Some of the shares may be sold by sales¬

writer—None.
men

employed by the company,

dealers.
per

share,

by registered broker17%, or 34 cents

commission not to exceed
may

be paid to sellers of such shares.

curities

and Lee Higginson Corp. (jointly); The
Corp. and White, Weld & Co. (jointly);
Blyth & Co., Inc., Bids—Expected to be received up to
11 a. m. (EDT) ori Oct. 21 at the office of the
company,
201

Corp.

Boston

Devonshire

St., Boston, Mass.

filed TOO,000

fered for
new

shares of common stock, to be of¬
subscription by stockholders at the rate of one

share for each share held. Price—To be supplied by
Proceeds — For working capital. Office—

amendment.

Cleveland, Ohio. Underwriters—McDonald &
Ball, Burge & Kraus, both of Cleveland, Ohio.
Wilson Brothers

Co., and

—'

Aug. 31 filed 261,752 shares of common stock, to be
exchanged for the common stock of Virginia IrOn, Coal
and

Coke Co.

the basis of

one

share of Wilson

for five shares of Virginia common.
Madison Ave., New York.

mon

ceeds—For mining expenses.

Office—N olde/Sot^Didg.,

Lander, Wyo. Underwriter—C. A.

%
a

Bensoife^^q^fiM^ ^

Pittsburgh,.Pa.'

_•_/!••

(iO/20-k~;7
Aug. 10 filed 150,000 shares of class A stock "(p$r/$!)£'
Price—$3 per share. Proceeds — For general, corporate
purposes, including the discharge of various indebted- ness and the purchase ^nd installation of new equipment;
•

York Research Cor|i.

for the establishment of

new

testing laboratory;

Office—Stamford, Conn. Underwriter—Myron A. Lomas¬
ney & Co., New York.

ive
American Gypsum Co.

reported that the company will register
securities later this year. Proceeds—For
construction of a gypsum products plant in Albuquer¬
July 15 it

was

debt and equity

que,

New Mexico, and for working

capital. Office—Al-

Underwriters—Jack M. Bass & Co.,
"T^aslwille^Tenn., and Quinn & Co., Albuquerque, N. M,
American Jet School, Inc., Lansing, Mich.
Aug. 31 it was announced that the corporation plans to
issue and sell 100,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to a national one, and
introduction of new courses and resident study schools.
Business
In correspondence school business. Office—
1609 Kalamazoo St., Lansing, Mich. Underwriter — In
buquerque, N. M.

—

York

named

early

Offering-

October.

American Telephone &

Telegraph Co.

(11/17)

Aug. 19 the directors authorized a new issue of $250,000,000 of debentures. Proceeds—To be used for the ^im¬
provement and expansion of Bell Telephone services.
Underwriters—To be determined by competitive bidding.
Probable bidders: The First Boston Corp. and Halsey,
Stuart & Co. Inc. (jointly); Morgan Stanley & Co. and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
received

Nov. 17.

Atlantic

City Electric Co.
Aug. 3 it was reported that the directors are contemplat¬
ing the issuance and sale of a small amount of common
stock, after a three-for-two stock split. Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬
curities & Co.; and Smith, Barney & Co., both of New
York.*
Offering—Expected during the latter part of
this year.
Bell

—

-—

- —

-----

Telephone Co. of Pennsylvania

plans the

$30,000,000 of debentures dated Dec. 1, 1959."
To replace short - term borrowings used to
finance construction. Underwriter—-To be determined by
sale

Proceeds

—

competitive bidding. Probable biddefs: TIalsey, Stuart &
Co. Inc.; The First Boston Corp.; Morgan Stanley & Co.;
White, Weld & Co. and Eastman Dillon, Union Securi¬
ties & Co. (jointly).
Benson

June

Manufacturing Co., Kansas City, Mo.
announced that the company contem¬

was

offering of $4,500,000 of common stock.
Pro¬
and additional working
Capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
and beer barrels, aluminum curtain wall sections for the
building industry and other proprietary products. Un¬
derwriter—S. D. Fuller & Co., New York.
Registration
—Expected sometime in October.
plates

ceeds— For expansion program

Western-Reserve Life Assurance Co.
Oct.

Sept. 11 (letter Of notification) 10,000,000, i
stock. Price—At par (three^ cents perj$hfpel.>^o-

mon

Sept. 25 it was announced that the company

Western Massachusetts Electric Co. (10721)
Sept. 23 filed $8,000,000 of first mortgage bonds, series
D, due Oct. 1, 1989. Proceeds—To pay outstanding bank
lOaftg; Underwrite^—'To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Eastman Dillon, Union Securities & Co.; Equitable Se¬
First

contract to

Planned for mid-October.

Co.

JPrice—$5.05

class A share and

Proceeds—$300,000 will be used for payment!
purchase shares of International Fidelity.
for capitalization of- a fird
''
ance company; $500,000 for capitalization of a title l^sur-^ \
ance company; $500,000 for additional capttel cbhlrlbution to Great Plains Development Co.; and: $300,000 .*<£■'
an additional capital contribution to Great; Plains. Mdrt* r
share.

per

New

West Florida

share; and the addi-;

Insurance Co.; $325,000

and

^Washington Planning Corp.
1 (letter of notification) 24,286 shares of new class
A stock (par 10 cents). Price—$3 per-share. Proceeds—
To go to the company. Office—52 Broadway, New York
4, N. Y. Underwriter—Heft, Kahn & Infante, Hempstead,
N. Y. Offering—Expected in late October.
Oct.

Wyoming Corp.
1958, filed 1,449,307 shares of common- stock. Of
1,199,307 are subject to partially completed

Underwriter—None.

Ave., N. W. Washington, D. C. Underwriters—Amer¬
Diversified MutuaL Securities, Inc. and Gildar &

shares are to be offered initially, to share-:
holders of record Nov, 1, 1958, in the ratio of one new
share for each 2.33 shares held on that date. Price—$4

Research Associates
July 28 filed $1,065/100 of participations in partnership
interests. Proceeds—To purchase land
Waltham Engineering and Research
Mass., and for expenses connected
fice—49 W. 32nd Street, New York 1, N. Y. Underwriter
—The First Republic Underwriters Corp., same address.
The offering is expected in September.
>

ican

(EST) on Oct. 29.

tional 250,000

and

Washington Mortgage and Development Co., Inc.
Sept. 29 filed 100,000 shares of common stock (par 10c)
Price—$5 per share. Proceeds—For investment in mort¬
gage notes secured by real estate. Office—1028 Connecti¬

7---

11 a.m.

subscrioticns at $2, $3.33 and $4 per

of the purchase price to be paid for W. E.
and for Wegco Equipment Rentals,

Ala.

-./'•>

these shares

Sons

Engineering

(jointly).

•

Co.

Office—Mountain Brook,

Waltham

White, Weld & Co.

Nov. 17

Sept. 15 filed 230,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—The stock will

hie.

retire-short-term bank d

porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook, Ala. Statement
became effective on July 20.

and

series
1, 1989. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &,
Co. Inc.; White, Weld & Co.; Kidder, Peabody & Co.;
The First Boston Corp.; Kuhn, Loeb & Co. and American Securities Corp.
Bids—Expected to be received up

6*6% cumulative preferred
560,000 shares of common stock, to be offered
to the stockholders of Ralph E. Mills Co., Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange
for all the outstanding capital stock of these three cor¬

constitute part

used

Nov.

due

Inc.

170,000 shares of common stock will be offered
to the founders of the company and to the underwriters.,

one

Co. and

June 29 filed 10,000 shares of

Materials

★ Wisconsin Public Service Corp. (10/29)
Oct. 1 fried $8,000,000 of first mortgage bonds,

stock and

Vulcan

filed $3,000,000

provements.
Underwriter—To be determined, by competitive bidding. Probable'bidders: Halsey. Stuart & Cor
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc. and
Salomon Bros. & Hutzler (jointly); Kidder, Peabody &

Volaircraft, Inc.
Sept. 17 (letter of notification) 108,260 shares of common
stock
(no par). Price—$1 per share. Proceeds—For
expenses in manufacturing a low cost airplane. Office—
Aliquippa-Hopetyell Airport, Aliquippa, Pa. Underwriter
—None.
7:- ■

Aug. 31 filed $837,200 of 7xk% 30-year subordinated in¬
come debentures and warrants to purchase
25,116 shares
of class A common stock ($1 par). Price—$100 per unit
consisting of one $100 debenture and a warrant to pur¬
chase three shares of class A common stock. Proceeds—

<>f

Michigan Power Co., Milwaukee, Wis.
of first mortgage bonds due

March 5 filed 100,000 shares of common stock

«tock

Thursday, October 8, 1959

Sept.

Graham

Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For

■

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
of 7% first mortgage convertible bonds* to be offered
in denominations of $500 and $1,000 each. Price—100%
of principal amount. Proceeds—For construction, instal¬
lation of machinery and equipment and working capital.
Office—511 Securities Building, Seattle 1, Wash. Under¬
writer—H. P. Pratt & Co., Seattle 4, Wash.
United

Wisconsin

Beverage Co., Inc.

Office

com¬

—

180

Bridgeport Gas Co.
Sept. 9 it was announced that stockholders will be askea
on
Oct. 27 to approve the issuance of about $1,100,009
in new common stock to stockholders in the ratio of one
new share for each seven shares held.
Proceeds — To
reimburse

the

expenditures.

company's treasury for expansion and
Underwriter—Previous financing was ar-

Volume 190

Number

The Commercial and Financial Chronicle

5888

(1513)

ranged

through Smith, Ramsey & Co., Ifc., Bridgeport,

tions^ Business—Radio broadcasting. Office—130
Shepard St., Lansing, Mich.
Underwriter—In New York to

Conn..'V

be named in

Brooklyn Union Gas Co.
Aug. 19 it was reported that the company is contem¬
plating some additional equity financing, the form it will
"t&ke will be decided on shortly. Proceeds—For construc¬
tion program. Offering—Expected before the end of the
"

year.

•

October."

Dec. 29 it

House,

Stearns

Proceeds

company

—

build

chain

coffee

Consolidated Edison Co. of New York Inc.

reported that the company plans the is¬
$50,000,000 first and refunding mort¬
Proceeds
For construction expenditures.

was

Underwriter—-To be determined

by competitive bidding,
Halsey, Stuart & Co. Inc.; Morgan
"Stanley & Co.; The First Boston Corp. Bids—Expected
bidders:

ti> be received

Dec. 1.

Co.

Consolidated Natural Gas

May

James Comerford, President, announced that
plans later in year to issue and sell $20,000,000
if market conditions are favorable.
Proceeds—For investments, improvements, etc.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp. (jointly); White, Weld
•& Co. and Paine/ Webber, Jackson & Curtis (jointly).
19,

company

of debenture bonds,

ceived
•

Dallas Power &

types has

not as yet been deter¬

National

Underwriter—To be determined by competitive

Oct.

Probable bidders: (1) For bonds: Halsey, Stu¬
art & Co. Inc.; The First Boston Corp.; Salomon Bros.
& Hutzler; Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,
Union Securities & Co.; Blair & Co., Inrc. and Baxter &
Go.
(jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Iuc. and Merrill Lynch, Pierce, Fenner & Smith
Inc. (jointly); Salomon Bros. & Hutzler; Equitable Se¬
curities Corp.; Eastman Dillon, Union Securities & Co.;
Lehman Brothers; Blair & Co. Inc.; The First Boston

Offering—Expected sometime this

the

ing the issuance of
dinated convertible

—

share.

each

four

Proceeds—To increase

held.

Price—$40

capital and surplus.

issue

company

New-Era

common

plans the is¬

gears.

and sale of $16,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
bidders:

thers; Stone & Webster Securities Corp. Bids—Expected
aim. (EST) on Nov. 24.

to be received up to 11

Aug. 3 it was reported company received approval from
the Territorial Public Utilities Commission to issue about

$4,500,000 of new bonds.

privately.

Last bond issues

were

placed

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
sell 100,000 shares of common stock (par 10 cents). Price
—$3 per share.

Proceeds—For acquisition of radio sta¬

June 9 it

Gas

lar to the 1958

Co.

to borrow from banks to tide

Boston

Corp.

and

Glore,

Under¬

Forgan

Co., both of New York.
Piedmont Natural

Sept. 25

Gas

announced

sale

first

Office—Houston, Texas.

Pipe

Aug. 25 it was
company expects to
issue and sell $40,000,000 to $50,000,000 of new securi¬
ties, probably in units. Proceeds—-To build a pipe line
from West Texas to the Arizona-California

derwriters—Lehman Brothers and Merrill

border.

Un¬

Lynch, Pierce,

Radio

Corp.
'
reported that the company is contem¬
plating the issuance and sale of some additional com¬
10

was

mon
stock.
Underwriters—Lee Higginson Corp., NewYork; and Straus, Blosser & McDowell, Chicago, 111.

Sept.

shareholders approved the issuance of 150,000

of new convertible preferred stock, of which an
initial series of 43,200 shares will be issued in exchange
for all the outstanding stock of five corporations own¬

ing

12,000

land

Hillsborough County, Fla.
value of $100 per share
and a dividend rate of 4V2% annually.
The shares will
be convertible into common stock starting two years
after their date of issuance at an initial conversion jjrice
of $22 per share, with the conversion price to increase
$1 per share per year thereafter. Office—Jacksonville,
acres

The initial series will have

par

Velvex

Mid-City Parking Center
was reported that $1,015,000 of partnership
participations will be registered in the immediate future
with the Attorney General of the State of New York,
for offering to New York State residents only. Price—
$2,500 per unit. Proceeds—To purchase the property at
8th Avenue and 44th St., New York City. UnderwriterFirst Republic Underwriters, 49 W. 32nd St., New York
1, N. Y. Offering—Expected any day.
it

Sept. 22

Sept.

17 it

issue and

County Electric Cot

was

announced

(12/7)

that this company plans to

sell

$7,500,000 of first mortgage bonds, series
E, due 1989. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; Blyth & Co., Inc., and
White, Weld & Co. (jointly): Merrill Lynch, Pierce, Fen¬
ner
&
Smith Inc.; The First Boston Corp.; Coffin &

Burr, Inc.
World

Bids—Expected to be received on Dec. 7.
Fidelity

Life Insurance

Co.

reported that the company plans to use
its best efforts to register 5,000,000 shares of common
stock with the SEC. Price—$1
per share, Office—314

Aug. 17 it

was

First National Bank Bldg., Colorado Springs,

Colo.

Yellow Transit Freight

Co.,

Inc.

that

this

contem¬
the issuance of about $3,500,000 of convertible
preferred stock later this Fall.
The terms and exact
timing of the offering have not as yet been set. Proceeds
—To finance construction program. Underwriter—White,
Weld & Co., New York.
plates

was

the

Line Co.
reported that this

Worcester

Proceeds—For construction program.
First

with

the company over the year-end, as it has done in the last
writers—The

1960

common

Fla.

announced

offering,

and preferred stock. Pro¬
raise permanent funds for the financing of

Trav-ler

company plans to
cumulative preferred

that the company before the
end of the year, expects either to sell
$10,000,000 to $15,000,000 of straight, non-convertible preferred stock simi¬
was

twice

Trans western

Sept.

this

Business—Manufacturer of mufflers and

Illinois

market

its 1960 expansion program.

two years.

Hawaiian Telephone Co.

Underwriter—Mortimer B. Burnside & Co., Inc.,

Northern

plans

^ Universal Marion Corp.

Corporation, Rochester, Mich.

stock.

Co., Houston, Tex.

future of

near

Fenner & Smith Inc., both of New York.

was

New York.

Halsey,

Stuart & Co. Inc.; Merrill
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co.
(jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Lehman Bro¬

50 shares

reported that this company contemplates
the early registration of
approximately 200,000 shares of

suance

Probable

that

announced

Expected in the

block

—

ceeds—To

of*

(12/9)

and

Sept. 1 it

(11/24)

reported that the

basis

—Olympia, Wash. Underwriter—Financing in past has
been handled by Blyth & Co., Inc.

was

of
for

sell 100,000 shares of
(par $100). Underwriter—To be determined by
competitive bidding. Probable bidders: Lehman Broth¬
ers; Equitable Securities Corp.; Kidder, Peabody & Co.;
Lee Higginson Corp., and
White, Weld & Co. (jointly):
Merrill Lynch, Pierce, Fenner & Smith
Inc., and Eastman
Dillon, Union Securities & Co. (jointly). Bids—
Expected to be received on Dec. 9.

600,000 shares to the number of common shares cur¬
rently outstanding. Proceeds—To qssist in the financing
of the recently acquired Booth-Kelly Lumber Co. Office

Aug. 20 it

offered

stock

Georgia-Pacific Corp.
^
r
Aug. 19 it was reported that the company plans to reg¬
ister about $15,000,000 of convertible debentures or pre¬
ferred stock, conversion of which
would add about

Co.

ber.

was

Beissner

stock.

mortgage bonds, and

Corp., Kidder, Peabody & Co., Lee Higginson
White, Weld & Co. (jointly); Blyth & Co.,
Bids—Expected to be received sometime in Decem¬

stockholders of this

Transcontinental Gas Pipe Line Corp.
29 it was announced that the company

Corp. and

that the

come

rities

derwriter—None.

t Gulf States Utilities

Offering
common

Underwriter —'To be determined by
competitive bidding. Probable bidders: Lehman Brothers;
Merrill Lynch, Pierce, Fenner & Smith Inc. and
Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬

Sept.

announced

was

150,000 shares
working
capital.

State, within 30 days.

cur¬

been

■"

Underwriter—Moroney,

Lansing, Mich.

England Power Co.

have

company have authorized an additional
of
common
stock.
Proceeds—For

company

New

issues

Tex-Tube, Inc.
Aug. 28 it

ital expenditures.

Un¬

program.

underwriting. Last rights offering was underwritten
by Stone & Webster Securities Corp., New York.

England Telephone & Telegraph Co.
Aug. 19 it was reported that the company will issue and
sell $10,000,000 of preferred stock.
Proceeds—For cap¬

per

Proceeds—To repay bank loans incurred for
construction

ated

New

Inc.

22, S. C. McMeekin, President, announced plana
approximately $8,000,000 of bonds in December,

company is planning
$7,000,000 of additional common stock,
probably in the form of a rights offering and a negoti¬

expansion and working capital. Office—130
Shepard St., Lansing, Mich. Underwriter—To be named

First National Bank of Miami, Fla.
Sept. 14 it was announced stockholders have approved
a proposed offering to stockholders of 150,000 additional
shares of capital stock (par $10) on the basis of one

Underwriters—

ceeds—For

year.

cleaners.

Tampa Electric Co.
Sept. 14 it was reported that the

the

later in New York

vacuum

placed privately.

plans to register in
a lew days an issue of
100,000 shares of common stock
(par 10c). Price—To Be supplied by amendment. Pro¬

Manufactures

sell

rent

—

(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Offering—Expected later this

for

the sale of about

approximately $5,000,000

National Mail Order
Co.,
5 it was announced

■

Sept.

debentures

...

•

South Carolina Electric & Gas Co.

1959.

Inc.

Oct.

on ,Sept.
29 approved a proposal .tQxi;
present 3,000,000 shares of common stock
now authorized to
4,000,000 shares. Proceeds—For gen¬
eral corporate purposes. Underwriter
Stern Brothers
& Co., Kansas City, Mo.

Securities Corp. (jointly).

sale

—

June

Stockholders

increase

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co. (jointly); White, Weld
& Co.: The First Boston Corp. and Glore, Forgan & Co.

new

and

subordinated

•

V"..

reported that the company is considering

was

issuance

held.

determined

Hess,

Co.

Kidder, Peabody & Co., New York, and McDonald & Co.,
Cleveland, Ohio.
' Y 1
/
V

by present stockholders on the
$100 principal amount of debentures for each

Fall.

Underwriter

ness

(Mo.)

subscription

company is contemplat¬
undetermined amount of subor-

debentures.

Bellas

convertible

Duquesne Light Co.
Aug. 3 it was reported that the
+

•

Louis

Fetzer

Sept. 14 it was reported that the company plans early
registration, of 100,000 shares of common stock. Busi¬

capital and surplus. Underwriter—G. H. Walker &
Co.,
St. Louis, Mo.
Offering—Expected today (Oct. 8).

bidding.

Corp.

to stockholders of record on or about
Oet. 8, 1959; rights
to expire oil or about Oct. 22.
Proceeds—To increase

Light Co.

about Dec.

\ /

Scott

(par $10) outstanding, if approved, would be
payable on or about Nov. 2. An offering of 45,000 shares
of additional common stock
(par $10) would be issued

reported that the company contemplates
the issuance and sale of about $20,000,000 of senior se¬
mined.

Indiana.

(12/8)

stock

mon

was

curities, but type

this company; plans : a
stock
offering, part of: which will be sold for
company's account and part of which will be sold
for the account of certain
selling stockholders. Under¬
writer—Indianapolis Bond & Share Corp., Indianapolis,
-

the

Aug. 19 it was reported that the bank's stockholders will
vote on Oct. 6 to
approve a 2-for-l stock split of its
75,000 outstanding shares of common stock (par
$20),
a 3li% stick dividend oh the
150,000 shares of new com¬

Cyprus Mines Corp.
;
July 15 it was reported that approximately 1,000,000
shares of a secondary issue common stock will be regFenner & Smith Inc., New York. Y
Aug. 3 it

Manchester Bank of St.

;;Y y-y

(Howard W.) & Co.
it was reported that

common

Sept. 14 it was reported that this wholly-owned sub¬
sidiary of Louisiana Power & Light Co. is contemplating
the issuance and sale of
$6,000,000 of first mortgage bonds
having a maturity of no longer than 25 years and per¬
haps as short as 16 years.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; White, Weld &
Co., Blyth & Co., Inc.,
and Shields & Co.
(jointly); Merrill Lynch, Pierce, Fen¬
ner & Smith
Inc., Kidder, Peabody & Co. and Harrinaan
.Ripley & Co. Inc. (jointly); Salomon Bros. &
Hutzler,
Eastman Dillon, Union Securities &
Co. and Equitable
Securities Corp. (jointly); The First Boston
Corp. and
Glore, Forgan & Co. (jointly). Bids—Expected to be re¬

(12/1)

and sale of

gage bonds.

Sept.

was

Louisiana Gas Service Co.

York.

Sams

writer—Cruttenden, Podesta & Co., Chicago, 111. Offer¬
ing—Expected in the early part of November.

Office — 1500 Clifton Ave., Lansing, Mich.
Underwriter—In New York to be named in early Octo¬
ber. Offering—Planned for mid-October.
v

©rateable

New

reported that the company plans a regu¬
lation "A" filing of about 80,000
shares of class A com¬
mon
stock. Proceeds—To
selling stockholders.
Under¬

purposes.

July 30 it

(jointly); Lehman Brothers and Bear.
(jointly).
Bids—Expected later in the
YY'; V
.V" ,Y

....

Underwriter

Ryder System Inc.
Aug. 3 it was reported that the company plans issuance
this Fall of an additional
75,000 shares of present com¬
mon stock
(par $5), or 150,000 shares of new common
stock (par $2.50).
The ICC has approved the proposed
two-for-one stock split. Underwriter—Blyth &
Co., Inc.,

Co.

Sept. 21 it

houses, establish commissaries and for general corporate

suance

Proceeds—To increase capital and surplus.
G. Becker & Co.
Inc., Chicago, 111.

—A.

Lindberg Steel Treating Co.

—$3

share.

year.

sell 100,000 shares of common
per

was

Weld & Co.

Lansing, Mich.

Inc.,

announced

which will be sold for the account of the
company and
for the account of certain selling stockholders.

part

construction

Securities

plans to issue and
stock (par 10 cents). Price

was

■

and Shields & Co.
(jointly); Kuhn, Loeb &
Co., Salomon Bros. & Hutzler and Eastman, Dillon, UnioD

\vill be changed to Buckingham Freight Lines.

Coffee

reported that the company plans to issue
$20,000,000 of first mortgage bonds. Proceeds—
program.' Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston
Corp. and Blyth &
Co., Inc. (jointly); Equitable Securities Corp.; White,
For

istered in the Fall. Underwriter—Merrill Lynch, Pierce.
111. .Price—$10 per share.
New Name—The company's

Aug. 31 it

City Power & Light Co.

and sell

Buckingham Transportation, Inc.
July 17 the company sought ICC approval for the is¬
suance of 250,000 shares of class A common stock (par
$1). Underwriter—Cruttenden, Podesta & Co., Chicago,

name

Reserve Insurance Co., Chicago,- III.
Sept. 14 it was reported that the company plans early
registration of 110,837 shares of common stock, part of

....

early October. Offering—Planned for mid-,

Kansas

company

Lines, Inc.
Sept. 1 it was announced that subject to ICC approval,
it is planned to offer 206,000 shares of common stock,
of which, 100,000 shares will be for the company's ac¬
count and the remaining 106,000 shares for the account
of certain selling stockholders.
Proceeds—For working
capital.

Underwriter—Blyth & Co.. Inc., New York.

fering—Expected

sometime in October.

Of¬

The Commercial and Financial Chronicle

(1514)

The following statistical tabulations

Indications of Current

latest week
week

Business Activity
IRON

Equivalent to—
Steel

Crude
42

castings

and

ingots

AMERICAN

•

and

„

(net tons)

condensate

gallons each)
.———
runs to stills—daily average
(bbls.)—:

i
(bbls.)——

output

Kerosene

output

(bbls.)

fuel oil

Distillate

1,933,000

LABOR—Month

Total

'•5ep;'

6,822,675

6,765,275

7,09.9,785

New

8,362,000

7,639,000

Additions

29,192,000

30,162,000

27,758,000

1,954,000

1,817,000

2,121,000

12,326,000

12,854,000

12,475,000

6,333,000

6,082,000

6,338,000

180,782,000

183,082,000

32,486,000

31,044,000

30,942,000

170,253,000

159,541,000

153,633,000

59,398,000

58,167,000

56,449,000

Industrial

■,

173,481,000

69,595,000

„=

587,079

freight loaded (number of cars)—
.Sept. 26
Revenue freight received from connections (no. of cars)— Sept. 26
Revenue

CIVIL

CONSTRUCTION

ENGINEERING

—

Total U.

construction

Public

—

496,059

;

548,820

Social

673,380

491,278

568,913

and lignite

$410,700,000

$490,100,000

226,800,000

332,800,000

183,900,000

157,300,000

120,000,000

121,700,000

139,800,000

329,677,000
252.040,000

62,200,000

105,600,000

7,780,000
379,000

145

17,500,000

77,637.000

158

7,320,000

Public

483,000

DUN

—

13,234,000

12,878,000

13,759,000

224

282

308

301

Pig iron

(per gross ton)

(per gross ton)———.—

Electrolytic

copper—

Lead

(New

Lead

(St.

tZinc

York)

Louis)

(delivered)

tin

at—

MOODY'S
U.

~epJ"

BOND

Conservation

$42.50

$41.17

$43.50

26.100c:

28.700c

25 800c

13.000c

11.312c

12.800c

li 112c

12.000c

11.500c

10.500c

11.500c

11.000c

10.000c

24.700c

102.375c

103.000c

94.625c

81.86

81.61

81.48

83.79

85.07

87.72

87.86

89.09

—

85.33

86.78

92.50

83.66

83.40

84 30

89.51

6
6
6

79.13

80.57

82.65

82.90

84.30

82.77

82.65

84.30

78.78

Public

(Jroup

Utilities

Group
Industrials Group

corporate—

85.98

86.78

4.37

4.36

4.88

Sales

(average

4.44

4.14

Unfilled

(tons)

4.65

4.24

4.84

4.45

4.91

All

5 26

5.14

4.93

Durable

4.84

4.56

4.96

4.97

4.84

4.50

4.71

4.65

4.2r?

379.2

379.0

386.3

389.0

314,041

309,620

Employment
.

AVERAGE

323,961
96

All

502,306

546,998

507,415

423,901

110.45

TRANSACTIONS

ACCOUNT

FOR

108.99

110.36

108.92

Sept. 11

1,805,520

1,797,350

2,405,330

LIFE

275,690

sales

Sept. 11

1,531,020

1,481,820

2,064,160,

1,524,420

Sept. 11

1,706,390

1,721,910

2,339,850

Sept. 11
Sept. 11
Sept. 11

348,150

292,770

321,400

939.015

463,000

540,600

809.160

129,855

NEW

176,700

20,258,000

20,300,000

17,613,000

17,501,000

17,541,000

8,817,000

8,020,000

8,070,000

440.9

401.6

403.5

11,200:

22,000

32.500

322,320

238,200

339,210

477,880

Sept. 11

377,220

249,400

361,210

FED¬

FEDERAL

YORK—1947-49

August:

seasonally

104

102

100

105

133

138

137

12,195,000

12,447,000

11,645,000

adjusted

the floor—

PAYROLLS—U.

DEPT.

SERIES—Month

(production

workers)

6,705,000
(1947-49

7,167,000

6,339,000

5,490,000

5,280,000

5,306,000

Avge.=100)—
98.6

Average

100)

100.6

94.1

165.2

170.2

150.0

16,175,000

(1947-49

—

of employees in
industries—

manufac¬

PURCHASES

INSURANCE

omitted):

8,571,000
6,891,000

INSTITUTE

—

Month

—

15,462,000

9,526,000

6,892,000

$4,047

LIFE

16,418,000

9,073,000
7,102,000

;

goods

INSURANCE

August

'•

$4,248

$3,778

541,

588

703

822

$5,475

$5,492

$5,188

Other

sales

Total

transactions Initiated

Other

Total

Short

Sept. 11

sales

Total

Sept. 11

76,120

92,530

620,046

85,630

677,929

ttThree

158,770

sales

785,275

652,075

705,455

877,805

737,705

864,225

2,658,300

2,619.010

3,346.776

3,220,189

Sept. 11

305,890

343,320

383,320

EXCHANGE

sales
of

Number
Dollar

—

SECURITIES

dealers

EXCHANGE

(customers'

value

2,634 905

2,505,295

3,055,445

2,707.755

2,940,795

2,849,115

3,438,765

3,332,815

Zinc

Customers'

1,395.209

1,490,405

1,886,071

1,333,254

$70,337,916

$77,055,016

$102,677,211

$63,732,858

Sept. 11

1.095,506

1,169,135

1,520,490

1.426.379

Sept. 11
Sept. 11
Sept. 11

other sales

value

by dealers—
of shares—Total sales

Short

19,943

13,620

15,619

5.892

Sept. 11

sales

Other

sales

EXCHANGE AND

FOR ACCOUNT
Total

round-lot

SALES

ROUND-LOT

1,155,515

1,504,871

1,420,487

Antimony

$59,816,569

$83,237,138

$64,937,244

Antimony
Platinum,

256,150

320,430

381,580

479,400

STOCK

MEMBERS

38L580'

479,466

Cobalt,

716,360

406.080

Aluminum

480,830

Sept. 11

.Sept. 11

WHOLESALE PRICES, NEW SERIES
(1947-49

—

167.110

517.590

10.999,690

11.482.210

13.937,700

15,535,020

11,480,520

11,949,320

14,455.290

16,317,780

'•

U. S. DEPT. OF

.Sept. 29

219.2

119.6

119.3

118.8

87.6

91.9

Sept. 29

86.9

88.9

.Sept. 29

106.8

107.4

—

foods-

other

than farm

and

foods

Total

102.327c

93.975c

$35,000

$35.000

$223,810

$229,381

$238,200

32.590c

29.000c

29.500c

$77,000
ton

lots)

$77,000

$59,720

$1.20000

carrying
net

customers

margin
debit

banks

free

listed

108.4

Market

126.0

Member

borrowings
Member borrowings
TiDomestic

five

freight from East
~tAverage
London

tons

St.

daily

Metal

$24,700

35.250c

74.000c

$2.25

$3,425,000

$3,528,000

S3,152.000

accounts—

balances.,

customers

111.1

96.7

$24,700

35.250c

—

omitted):

value

106.7

128.3

$26,800

$24,700

pig

EXCHANGE—

(000's

listed

99.8

$2.00000

$26,800

128.3

$1.75000

aver¬

pound)—

value

98.2

Not avail.

$2.25

primary

$1.52600

$1(30000

$1.75000

weighted

$1.20000

$1.30000

—:

(per

hand and in

128.3

88.673c
75.881d

$2.80328

Laredo

grade

extended

Sept. 29

figure.
^Includes 930,000 barrels of foreign crude
runs,
§Based on new annual capacity of 147,623,670 tons
as of Jan. 1, 1959, as against Jan. 1, 1958 basis of
140,742,570 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan.
tPrime Western Zinc sold on delivered basis at centers
where freight from East St. Louis exceeds
one-half cent a pound.

91.399c
78.844d

$2.80950

102.435c

pound)

Market

Revised

91.399C

Laredo

ingot

pound)

firms

Sept. 29

Meats

£65.389

78.898d

ounce)

(per

customers'

Credit
Cash

£83.972

£84.991

10.000c

$2.80370

deliver

grade

STOCK

Aug.

Total

products

commodities

Member

100):

commodities

Processed

long ton)

pound)

(per

YORK

£65.031

•A

$26,800

grade

99%

ingot

NEW

10.500c

£85.297

£86.071

lots)—

99%

Bismuth

782.760

Commodity Group—
Farm

97%

(per

Aluminum,

gppt.

11.500c

bulk

(per

pound,

Magnesium
/

£71.855

11.000c

74.000c

320.430

600,300

age

£73.153

11.334c

11.834c

—

10.672c
£70.523

£72.088

ton)

Louis

(per

10.872c

12.086c

£72.163

boxed

pound)',

(small

557,180

TRANSACTIONS

£209.426

12.286c

£70.722

"Nickel
-■

£231.463

12.800c

ounce)

(per

pound),

refined

(per

256,150

(SHARES):
ts>:

sales

—

long

St.

(per-ounce)

(per

Cadmium

STOCK

Total sales

LABOR

York

(per

Cadmium

sales—

Short sales
Other

THE

£230.438

(per ounce, U. S. price)
Quicksilver (per flask of 76 pounds)
^Antimony, New York, boxed——

Sept. 11

dealers— Number of shares

STOCK

25.489c
£209.313

Sterling Exchange—

London

Sept. 11

ROUND-LOT

(per

three months

New

1,075.563

26.081c

28.270c

£232.838

13.000c

ton)—

pound)—

Sterling Exchange
(check)
Tin, New York Straits

Sept. 11

Round-lot purchases by
TOTAL

long

(per

London

London,

and

$55,862,299
.

29.893c

28.015c-

Gold

Round-lot sales
Number

31.018c

£230.375

ton)—'

(per

pound)—East

Silver,

Sept. 11

short sales

Dollar

pound)——

pound)
long

York

months,
(per

ttZinc.
Silver

Sept. 11
;

(per
(per

(per

London

New

Silver,

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

QUOTATIONS)—

§§Zinc, prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)

COMMISSION

—

refinery

prompt

months,

ttThree

purchases)—t

Common, East St. Louis (per pound)
ttLondon, prompt (per long ton)

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS
AND
SPECIALISTS ON N. Y. STOCK
Odd-lot

refinery

Common,

625,060

Sept. 11
Sept. 11

sales

(E,

Lead—

781,065

857,185

Sept. 11

sales

Other

Exports

transactions for account of members—

purchases

Short

528,890,

Sept. 11

round-lot

Total

504,630

Sept. 11

sales

Total

Domestic

ttLondon,

sales

Other

PRICES

Sept.:

Copper-

the floor—

purchases

Total

Total
METAL

—

107

887

510,380

sales

20,635,000

541

534,110

54,400

initiated off

purohases

Short

409,106

717,300

1,958.210

Total

$1,348,121

777,700

„

Group

433.790

240,090

—

$1,495,000

961,000

SECOND

DISTRICT

number

Nondurable

2,008,150

175,370

sales

COMMERCE):

SALES

indexes

(000,000's

Sept. 11

Other transactions

Month

—

Ordinary

sales

Total

Industrial

Other

All

manufacturing
Durable goods

MEM¬

Short

All

goods

indexes

turing

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
specialists in stocks in which registered—

purchases-

EN¬

—

All

Transactions of
Total

104

—

manufacturing

ROUND-LOT

105

——

manufacturing

Payroll

308,455

-Oct

100

.All

288,837

327,749

Sept. 26

of period

81 '

goods

Estimated

295,039

336,246

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

611

133

114,000

daily),

Nondurable

Sept. 26

at end

660
135

577,000

manufacturing

4.95

Sept. 26

(tons)

730

$1,538,000

LABOR—REVISED

4.97

Sept. 26

activity.

orders

129

August:

4.76

ASSOCIATION:

(tons)

Percentage of

159

143

:2,

(DEPT.

EMPLOYMENT AND

4.78
4.48

4.76

Orders received
Production

55
43

2—

monthly), unadjusted
daily), unadjusted-

(average

Oct.

INDEX

PAPERBOARD

51
43

omitted).

STORE

Oct.

—

38?

Oct;

'Public Utilities Group
Industrials Group
COMMODITY

—

:—

5.29

MOODY'S

37
259

150

municipal

Oct.

—

430

—

NEWS-RECORD

(average

4.88

4.53

Oct.

Group

408

245

•

;

CONSTRUCTION

RESERVE

4.57

Oct.

—

17,j

3.63

4.39

NATIONAL

;

—

Average=100—Month
Sales

92.06

4(34

Oct.
—

Railroad

—

buildings

development

RESERVE BANK

87.99
88.81

Sales

—

and

ERAL

83.15

■

85.98

Oct.

U. S. Government Bonds

Aaa

construction

DEPARTMENT

MOODY'S BOND YIELD DAILY AVERAGES:

Average

service

Spinning spindles in place on Aug. 29
Spinning spindles active on Aug. 29Active spindle hours (000's omitted)
Aug. 29
Active spindle hrs. for spindles in place Aug.

93.97

OctOct.
Oct.

Railroad

1,540

405

„—

and

COTTON SPINNING

89.64

and

Louis

mean

Exchange.

1,103.000

309,519,664

237,508.464

106,135,307

110.165,431

487,000

527,000

341,335

2,315,000

2,316,000

1,882,916

issues-

collateral

but

exceeds

and

1,079,000

balances

Govt.

other

332,000

1,035.000

bonds

383,000

104,879,730

credit

153,000

374,000

304,568,809

154,000

bid

less
0.5c.
and

^Increase

than

carload

"F.o.b.
ask

all

Fort

quotations
stocks.

396

construction

Federal

87.8)

Oct.

9ct-

369

1,626

239

construction

State

institutional

(000's

Private

——

public

September

24.700c

102.750c

°ct-

—»—■

corporate—„—

other

Public

375

service, enterprises-

170
491

——il;—

ENGINEERING

Total

AVERAGES:

DAILY

PRICES

31.300c

13.000c

12.000c

~ept. 30
Sept. 30

99.5%) at

30.975c
27.375c

Oct.

Aaa
A

$66.49

All

185-

478

$66.41

12.500c

Sept. 30

189
492

1,692

$66.41

12.800c

™

fepr o£

S. Government Bonds

Average

;

Public

27,675c

Sept. 30

York)

——

Sewer

GINEERING

(New

Sewer and water systems

6.196c

13.000c

Sept. 30

(East St. Louis) at
Aluminum (primary pig.

—

buildings

and

6.196c

31.150c

Sept. 30

Zinc

Straits

.'«

•

refinery

Export

53
52-

—

Military facilities

CIVIL

refinery

Domestic

„'

$43.17

———Sept..29

172

i—

buildings

6.196c

J. QUOTATIONS):

construction

$66.41

-fep^'on

——

Highways

6 196c

Sept. 29

(E.

248

Water

(per lb.).

PRICES

147

255

Administrative

12,111,000

steel

Scrap steel

207

267

—

Other nonresidential

Finished

METAL

172

191

—.

—

Industrial

COMPOSITE PRICES:

AGE

utilities

Educational

136

BRADSTREET, INC
IRON

139

Oct.

INDUSTRIAL)

(COMMERCIAL AND

FAILURES

institutional

construction

Residential

9,006,000

346,000

Oct.

output (in 000 kwh.)

Electric

319

178

garages

buildings——

Telephone and telegraph
Other
public utilities
All other private

INSTITUTE:

ELECTRIC

EDISON

and

recreational

Railroad

DEPARTMENT STORE SALES

SYSTEM—1947-49

379

171

I 46

and

Hospital

INDEX—FEDERAL RESERVE
AVERAGE = 100
..Sept. 26

738
v

Nonresidential

422,000

7,690,000
e

warehouses—.

167

369

•.

and

Miscellaneous

166,032,000

Sept. zo

68,
801

$495,709,000

182,800,000
225,600,000

382

71
811

———————

restaurants,

„

(tons)

Pennsylvania anthracite (tons)

1,276

440

$408,400,000

^CJ-

1,595

435

"• Educational

Public

OF MINES):

S. BUREAU

(U.

coal

Bituminous

578,240

•

1,710

1,575
:

.Religious

■

Farm

"cc..

State and municipal

COAL OUTPUT

•

521,662

°ct,
~c!;*

construction—

Private

3,126

2,103

175

Other nonresidential
,

construction

Stores,
'

4,666

3,586

2,081

5,212

3,592

Commercial

ENGINEERING

NEWS-RECORD:

Ago

—

Hospital and

RAILROADS:

Year

Month

millions):

alterations.-

and

Office buildings

AMERICAN

„_

Nonresidential

7,034,000

180,896,000
32,217,000
172,401,000

output (bbls.)
— Sept. 25
refineries, bulk terminals, in transit, in pipe line
and unfinished gasoline (bbls.) at
p;'oKerosene (bbls.) at
:
—
——
—
5ep:' ?!
Distillate fuel oil (bbls.) at—:
~®ep;
Residual fuel oil (bbls.) at_
Sept. 25
Finished

of that dateg;

5,284

Nonhousekeeping
buildings

2,143,000

12,155,000

either for th*

are as

buildings (nonfarm)—
dwelling units

7,994,000

Stocks at

(in

August

construction

28,076.000

Residual fuel oil

ASSOCIATION

DEPT.

construction

new

6,853,325
117,722,000

——
.

CONSTRUCTION—U.

Residential

——£ep."

(bbls.)

output

—fep,

Crude

Gasoline

of quotations,

cases

Month

BUILDING

Private

output—daily average (bbls.

or,

are

Latest

Ago
71.6

327,000

■>362,000

production and other figures for thfc

cover

Year

11.5

*12.8

§365,000

Oct. iu

>—

Ago

§12.9

Oct. 10

Thursday, October 8, 1959

Dates shown in first column

that date,

INSTITUTE:

PETROLEUM

oil

; ■

(per cent capacity).

Month

Week

INSTITUTE:

STEEL

AND

Indicated Steel operations

month available.

month ended

Latest
AMERICAN

lot

boxed.

Colburne
per

long

140.000

§§Delivered

Duty

where

included.

morning

session

Number 5883

190

Volume

'.'The Commercial and Financial Chronicle

(1515)

Fiffy Per Gent Increase in Consumer Markets
Predicted by Chase Manhattan
could increase

Consumer markets

much

in the next dec-

50%

The Chase Manhattan Bank

ade,

its
in

says in- the
current issue of
bi-monthly review, Business
Brief, published recently.

inCTeas^tlie

markets

20™

rTe

stendard

the

living should run at about the
average for the past decade, the

markets would be 35 to 40% larger

1970.

with

But

even

frac-

tional rise in the growth rate, the
increase could approach or sur-

50% in ten years.
During the coming decade, by
far the most rapid population in¬

Reporter's

items like television sets, radios and phonographs, tools, some
decorating materials, food and
medicine.
4
• on

turned its
in! attention almost wholly to the
The investment world

En* Tess'^ftheir
This is part of

comes.

take

place

brackets.

age

pattern and means the population

structure may turn out to be
relatively unfavorable to individuaj saving in thrift institutions in
the coming decade,

interest

autos

and

will

—

appliances

major

furniture,

ing

take

the

over

limelight.
People 65 and over, at the other
end of the age

scale, will probably

livinjf? combined with increased
leisure, is making it possible for
Americans to spend more time en-

joying life," the Chase Manhattan
report concludes. This presents a
challenge which firms marketing
consumer products will have to
meet in the 'Sixties.
of

Receives Nominees
Scott

David

Pershing
been

partner in
New York,, has

Foster,

Co.,

nominated

President

Association

the

office of

the

for

Wendell

and

Firms

Exchange

been

nominated
and

Co., New York,
annual

the

Mr.

will

Treas-

take

place

meeting

after which he

Foster

became

his

New

York

Stock

to
the

Exchange

from

Board

the

has

Foster

from

1951

been

Martin

the1 Asociation

rison

Stock

Association

The

the

nounced
tions

has

following

meeting

York

New

T^Jerrold
&

also

24.

Stanley

Co.,

Liberty

Inc.,

Co.,

Commerce

the

Ohio —Martin

Building, members
Exchange.

John H.

Joins Slayton &

Co.,

New

Thayer

(S.orcial to The Financial Chronicle)

Joseph, Mellen Branch

len

Miller,

Inc.

office

branch

has

direction

the

Ross, Borton Branch
Borton

under

the

management

Harry R. Gardner.
——

are

well.

The

St. Louis.
Jardine, Jr.,

Wm.

The

NOTICES

Board

Directors

notes

but

corporate

the

They

rush

point

better

out

common

November 5,

the

ALEXANDER, Secretary

Walter

1959.

cents

per

stock, payable

1959, to stockholders

LONG ISLAND LIGHTING COMPANY

QUARTERLY
DIVIDEND

the

topeka

atchison,

and

fe railway company
New York,
N. Y., September 29, 1959.
The Board of Directors has this day declared
dividend
of Thirty Cents
(30c) per share,
santa

COMMON

the Common Capi¬
payable December
7
1959,
to holders
of said Common Capital
Stock registered on the books of the Company

being Dividend No. 193, on
tal Stock of this Company,

the close of

clared
32M

^f^INGEN.
Assistant

120

Broadway,

New

quarterly dividend of

cents

per share payable on

Common Stock of the

Treasurer.

York 5, N. Y.

Noyes & Co., New York.
Robert A. Podesta, Cruttenden,
Podesta & Co., Chicago.

Thors, Kuhn, Loeb

Co., New York.
Nominations for membership on

the close of

October 14, 1959.

AMERICAN

VINCENT T. MILES
Treasurer

COMPANY
September 30, 1959

COMMON
On

STOCK

September 29, 1959 a

quarterly divi¬

share was declared on
the Common Stock of this Company, pay¬
able November 16, 1959 to Stockholders of
record at the close of business October 23,
1959.
Transfer books will remain
open.
Checks will be mailed.
JOHN R. HENRY, Secretary

dend of fifty cents per

Speedry Chemical
Products, Inc.
Manufacturer and
distributor of special¬
devices

AMERICAN ELECTRIC

DIVIDEND

marking
industry,

for

business and the home*

NOTICE

Quarterly Cash Dividends
The Chase Manhattan Bank has de¬

New York.

committee to present a

the

Company

November 1,1959, to share¬

holders of record

CAN

STOCK

The Board of Directors has de¬

ized inks and
WORLD WIDE BANKING

clared

Levering, Carlisle &

Emerson

November

Secretary-T reasurer

of which broke badly

short time ago, are now back
approximately
to
their
initial
offering prices. General Motors
Acceptance
Corp.'s
5%
deben¬
tures,
brought out at
100 and
which broke to around
96, are
now
back
within
one-quarter

Neil A. MacDonald,

r—.

grade

syndicate

business

1959.

business

from

Quar¬

September 24, 1959

Moreover, the rank and file of
recent major corporate new is¬
release

of record October 19, 1959.

the

declared

October

Common Stock

dividend

the

been

opinion

has

terly dividend of fifty-five cents per share pay¬
able on
December 11,
1959 to stockholders of

DIVIDEND NOTICES

Co., Los Angeles.
Kellogg, III, Spear,
Kellogg,

and

Inc.

Singer Manufacturing

Company:

back to their best

now

many

formerly

was

Co.,

DIVIDEND NOTICE

Street

price levels in some two months.

Millenbruck.

Ohio —Ross,

number

The Board of Directors has declared a

semi-annual

has

Treasury

sues,

AKRON,

new

behavior

the

issues

Glessner

427

the

under

opened

only

that

MANSFIELD, Ohio—Joseph, Mel¬

—

Jacquelin, New York.
W. Bruce McConnel, Jr., Singer,
Deane & Scribner, Pittsburgh.
B 1 a n c k e
Noyes,
Hemphill,

the

Investors

Dividend

this

not

market

(Special to The Financial Chronicle)

James Crane

for

ing

J." Earie
Staats &

Nassau

Geraldine

Huey Co.

New

Gardner,

Leeds

name

Street

mounting

than

point

they

Dean, Harris, Upham

York.
v'v
John H. Hayward, Reinholdt &
Co.,

Looking

back

share.

per

—

She

Walston

L. A.

HOOD CHEMICAL CO., INC.

titer-buying side.

cheerful

And

Thayer, Hotel&Lincoln-Douglas.

Brittin C. Eustis, Spencer Trask
&

a
bottom
levels. At

its lows for this phase.

seen

York.

Bayard Dominick, Dominick &

Savings Bldg.

record

saying quite openly that they
believe
the
bond
market
has

Co., Inc. has opened a branch of¬
fice in the Second National Build¬

Dominick, New York.

in months. In fact some observers

Mackall & Coe,

and

some

Colo.

with

DIVIDEND

general atmosphere around
market
place
is
currently

expecting

firm

thg^mphasis at the

Things

(Special to The Financial Chronicle)

William C. Coe,

out

there

income of

net

and

Dempsey-Tegeler

DENVER,

Investing
Company,
65
Nassau
Street, has been changed to Nas¬

The

QUINCY, 111.—Charles C. Lockhart is now affiliated with Slayton

Brooks, Putnam & Co.,

"Howard B.

Joins

are

York.

Washington.

The

debentures

new

Now Nassau Investors

indications

rounding

evidence thart

$9,242,739

$642,818, equal to $1.02

Dempsey-Tegeler & Co., Midland

corporate market

gave

rate

the

put it in funds for
its expansion pro¬

bidding.

affect

way

30,

Company

moment

Midwest Stock

Avenue

committee.

one

April

ended

year

seasoned

possibly

Baldwin, Morgan
New

other.

once

Life

the

1959, Random House reported sales

(Special to The Financial Chronicle)

Street

appear

much

somewhere along these

CLEVELAND,

Cerf,
President,
Klopfer,
Executive
Vice-President, and Charles A.

the

lion

exempts

tax

not

did

The

Rini has been added to the staff
oT Fulton Reid & Co., Inc., Union

Hartford.

Hamburg has joined the staff of

Fulton Reid Adds

Paul

little

had

situation

Woolard

and

Columbia
today,
Gas Systems Inc., rated Single A,
will be opening bids for $25 mil¬

(Special to The Financial Chronicle)

members

November

Bryce of Clark, Dodge

nominating

the

Robert

Horace

Troy

November.

into

well

Treasury

which

an¬

nomina¬

Co., New York, was Chairman

and

—

Bennett

gram.

new

smattering

Ex¬

election to the Board at

for

annual

The

any

1953.

Firms
since
1955
and
served as Vice-President in 1958.

carrying

this

competition this week, except for

This of¬

company.

oversubscribed

was

the books closed.

For

Southern

week

Telephone

debentures

slender, to

for several

have become connected with Mor¬

Governor

change

the

Co.,

to^ 1953 and Vice-Chairman

Mr.
of

sue-

Co.,

Governor

was

the

and.

Co.

Pershing

firm,

New

gov¬

issue calendar
say the least,
weeks and promises to

corporate

has been

Lester, Ryons

the

attractive

Co.,
with
a
Double A rating, will be in the
market for bids on $70
million

generally

conditions,

the

CHARLOTTE,

fering

Meanwhile,

continue

Young,

the

obligation

the

Mr.

partner

of Weicker

The

career

1933

Adams.

date.

III,

of the proceeds will

none

accrue

bonds.

new

following

Bell

might readily have been
market
a
substantially

Certainly

Two With Morrison

joined the firm of

Foster

1947

Asiel

and

ers

Donald

The

speaking, were more or less ideal.

Building.

started

Foster

cessor

Stone,

will

but

funded,

hopes at

million of

time.

Baltimore.

Sons,

debt

(Special to The Financial Chronicle)

with the Prudential Insurance Co.,

firm

able

Los Angeles.

Co.,

Bogert,

Nov. 24.

This

rates.

Eisenhower,

longer-term

York.

Lloyd C.
&

Dean

Dillon, Union Securi-

Elections

York

Griswold,

Brown

Jacob
New

Vice-Presi¬

Lawrence

Jr. Eastman

urer.

ernment

Benjamin
Alex.

with

credit

banks.

ultimately
company

eliminated the
requested by

interest

fol¬
V

notes, carrying

raised
or
veiling

gress

Lewis, Estabrook &
Co., New York.
Walter
F.
Blaine,
Goldman,
Sachs & Co., New York.

Co., San Francisco, have

dents

are

million

group

fering for the Treasury's account
at least suggested that had Con¬

Witter &

ties

for

Witter,

Robert

the
coming year.
Brittin C. Eustis,
Spencer Trask & Co., New York,
Stock

for 1960

governors

lows:

which

York

New

Meanwhile other utilities,
in¬
Wimpfheimer,
Secretary, .who
cluding Gulf States Utilities Go.,
are the
selling stockholders, will
are
going ahead with plans to retain
63.4% of the total shares
Between the rush of investors,
raise capital through the sale of
outstanding after the completion
large and small, and the admoni¬
securities. That company plans to
of the offering.
tions to banks relative to extend¬
market $16 million of first mort¬
ing credit for the purchase of the
As of June 30, 1959 capitaliza¬
gage bonds late next month.
notes, there were indications that
tion of the company, which will
final
allotments,
which
might
Quiet Week Looms
be unchanged by the sale of these
possibly
be
announced
today,
The week coming up promises shares,
consisted of $840,698 in
would
be
scaled
down
very
liabilities,
of
which
only a single corporate undertak¬ long-term
sharply above the $25,000 sub¬
ing of substantial proportions. On $448,236 were accrued royalties;
scription
figure.
The
warning
Wednesday, Philadelphia Electric and 630,460 shares of common
flag was up against free riders.
Co., whose credit is rated Triple stock out of a total authorized
issue of 1,500,000 shares.
The response to
th^ latest of¬ AAA, will be seeking bids on $50

President

Exchange Firms Ass'n

coupon,

young couples under 30 years of
age—the backbone of the market
consumer durables like hous-

ten-months

emphasis
on, quality
also may be one of the keynotes
to future merchandising.
The

for

the
first
time
in
showing an exuberant
the
new
four-year,

for

vestors,

Greater

developed

years, were

Co.

$100

w^ekthat individual in¬
particularly when

gge

Edison

some

are

this week disclosed it has arranged

Treasury s riew financing opera-

life cycle

Random House, Inc.
Common Stock Offered

Wait

prospective
The first public sale of common
willing to wait a
stock
of the publishing
firm of
while
and
finance
themselves
Random House, Inc. was made on
temporarily through the use of Oct. 1
by Allen & Co. who offered
bank credits in the hope of easier
222,060 shares of the stock at a
money conditions
in the months
price of $11.25 per share.
The
ahead.
shares are being sold for the ac¬
Among
them
is
Consolidated count of certain
selling stockhold¬

Report

the 15
country's education level is higher
other
age
brackets could an increase now and figures show that people
have a more dynamic effect on with more education tend to buy
the
better quality products
and
the economy.
those which provide the ameriities
Teenage markets will be em¬
of life,
-v-;
1
'
*
phasized in the next few years.
"Finally, our high standard of
Then, toward the end of the 1960's,
crease

Evidently

borrowers

They spend relatively more

group.

pass

will

Willing

be the next most rapidy expanding

lfTto

from

point of the offering levels, being
quoted at 99%. -

Our

slate

the

stock of the Bank,

^"■CHARVERED
,

1799'

THE

Manhattan
BANK

capital

payable November

close of business October 15, 1959.

transfer

closed in
ment

books

will

not

of this dividend.
MORTIMER J. PALMER

Vice President and Secretary

Common Stock

($.45) per share on the
Common Capital Stock of the Company,
issued and outstanding in the hands of the
public, has been declared payable De¬
cember 10,1959, to the holders of record
at the close of business November 12,

per

share on the

Class A Stock

A regular quarterly dividend of Fortyf\
five

connection with the pay¬

10ff

|99th Consecutive Cash Dividend

13, 1959 to holders of record at the

The

Chase

p^r share

dividend of 60c

13,167,000 shares of the

POWER COMPANY, Inc.

per

share on the

Class B Stock

cents

1959,

W. J. ROSE, Secretary

October 5,1959.

•

Payable December 15,1959

•

Stook of Reoord November

16,1959

IBADOR I. TiLTON,

Secretary

The Commercial and Financial Chronicle

(1516)

65 have

over

of any

medical

insurance

doctor

kind.

Cross'

-Blue

Experience

CAPITAL

FROM THE NATION'S

peal

hospitalization
Virginia had to ap¬
State Authorities
at

twice

Richmond

higher

last

manufacturers

ring

roll-

been

have

Securities and Exchange
records show that

Commission

they

in the top bracket in
earnings for all manul'acare

net
-

turers.

Profits

swelled

been

have

great deal by new drugs coming
on the markets.
More and more

drugs to aid mankind will
in the future to boost

siew

appear

earnings.
Because

^profits

tiigh,

series

the

prices

drug

scheduled

too
are

conducted

headed

hearings probably will start next
•month.

drug consum¬
are in¬
sisting in complaints to Con¬
gress
that
they
are
being
or wrong,

the

across

country

gouged by prices they are havbn£ to pay. Individuals are be¬

ing given support in their com¬
plaints by some doctors in a
few of the hospitals.
Of

industry

drug

course,

spokesmen will be given

op¬

portunity to defend the com¬
plaints that are piling up on
Capitol Hill. Prepaid insurance
plans are having difficulty in
some

cost

country as
go up.
The
medicines figure in the

parts

urates

the

continue
of

rates.

premiums.
their

eligible for Social Se¬
curity benefits. It would also
cover the patient's surgical bills.
The
broad plan obviously
would mean raising the social
security taxes again. Even if no
new social security benefits are
added, the social security taxes
are going up for all of the many
millions of people that now pay
them.
This time last year the
yearly social security tax max¬
imum was $94.50. It rose to $120

(maximum)

January of this

year.

additional taxes be

added, the tax Increase schedule
maximum

figures

be:

will

However, the big

that

reason

iiealth insurance plans are run¬
ning into difficulties is the fact

Congress, for
benefits in

ization next

Democrat of

Minnesota, is spon¬
soring a bill that would provide
60 days of hospitalization and
60 days of nursing care for so¬

beneficiaries.

cial security

The

bill would

not, like the Forand
provide for government
for doctor's services;

Although the American work¬
and his family are receiving
than

ever

before, the cost of medical care
5s rising.
Difficulties which
and salaried peo¬

ple face in paying for adequate
medical care have lessened, but

1,000 subscribers increased
12% since 1955, and during the
hospital period the number of
days stayed at the institutions
rose about 2C%.

ber

Blue Cross board

the

toward

nosing

office.

"we

doctors
the

Numerous doctors have

testi¬

fied in connection with the

bill.
the

would

measure

American Medical

tion's Committee
the

Fo¬

Some doctors declare
estab¬

bad precedent.
Dr. Fred¬
C. Swartz, Chairman of

measure

Aging, said
benefits

He said the

Government

would

supply
the
beneficiary
with
compulsory hospital and sur¬
gical insurance whether he
it

wanted

taken

they

over-

the proposed Forand plan would

provide health

care

benefits for

the

Comparisons of the United States

going to kill
the

lays

and

Perhaps
the

Senate

mittee

Pending

major

Anti-Trust Subcom¬

hearings

because

Capitol

Hill

numerous

are

that"

reason

Soviet

loom

the

for

medical

large

pressure

care

series

and hos¬

pitalization bills that are pend¬
ing.
They will be live when
Congress
reconvenes
in
Jan¬
The

bill

that

seriously

fession

the

name

will

aries

social

tection

security

other

surgical

care

the

being
medical

so-called

taken
pro¬

...

be greater and greater

demands

for drugs and medical services.

being

are

communities

many

built

in
the

across

Forand

This measure, bearing the
of Representative Amie J.

that

and

The

number

creased

1955,

60%

from

hospitals

sert

land, is controversial, but it lias

only

health

the number of hospital
creased

280%.
the

This

trend

—Dr.

beds

purposes rose

thousand

for

they

the

that

are

and

Adams

Economy

University,

New

show

the

Company,
Street, New York
(cloth), $5.00.

36, N. Y.
Portrait

the

Stock

Market

—

Study,

June 3, 1959—New York Stock
Exchange, New Yorlfj^ N. Y.
(paper).
Railroad

—

Auto¬

American

Conference, 176 West
Street, Chicago 3, 111.
of

Israel:

Progress Un¬

Keyserling and Mary Dublin Keyserling—Development Corporation
for

the

number

United

Israel, 215 Park Avcnqe,
South,
New
Y„ork
3,
N.
Y.
(paper).

physi¬

States

was

about 120,000 in 1900, about one
physician for every 633 persons.
Although the relative number

European
A Case

amount

service

and

has

quality

increased.

Economic

Community:

Study of New Economic

Regionalism, Part I—Bureau of
Business & Economic Research,

physicians has become small¬

University of Maryland, College
Park, Md. (paper).

of
A

Press, 2960
Broadway, New York 27, N. Y.

(cloth), $6.00.
Observations

Some

Soviet

Russia—Herbert V.

Efochnow—.

First National Bank of

111.

Chicago,

(paper).

art—Public

Affairs

East 38th

Committee,

Street, New York

16, N. Y. (paper), 25 cents.
Term Loans and

its—

Revolving Cred¬

Booklet

bank

officers

designed

aid

American

—

Na¬

tional Bank and Trust

Dictatorship
Financing

der Freedom—Leon H.

per

Company
Chicago, Chicago, 111.
-/• '

Together

BUSINESS BUZZ

Stand

—

New

Per¬

spectives on French-American
Relations—Sylvan G o t s h a 1—
Public Affairs Press, 419 New
Jersey Avenue, S. E., Washing¬
ton

3, D. C. (cloth), $3.25.
Better

Toward

Understanding:

Vice-President

Nixon's

visit

Soviet Union and Poland—

the

Department of State Publication
6881
Superintendent
of
Documents, U. S. Government

No.

—

Printing Office, Washington 25,
D. C.

(paper), 25c.

Wage Policies and Wage
S.

Surveys

Stockton—Bureau

Business

Research,

Ohio

University, Columbus

State

10,

Ohio

(cloth), $5.
Wealth

of the

Sahara

Soustelle—Reprint

Jacques

—

from

"For¬

eign Affairs"—Press and Infor¬

Snood/e's

mation

SAND AND GRAVEL CO.

pro¬

York

You
'

Division,

bassy, ,972

and

Fifth

French

Em¬

Avenue,

New

21, N. Y.
And

1959-60

—

United Nations

the

Department of

Services

Public

State,

Division—Su¬

perintendent of Documents, U. S-

plans

Government

aged,

time. Also, they

37%

Dr.

Finance

population during this

total

the

York

mobile

period.
The

Nadler

Washington

getting cost¬

the records

about

the

Quandt

Taxes We Pay—Maxwell S. Stew¬

Business Administration,

Economic

all

from 4.6 to 9.8

the

York, N. Y.

larger

number

the

available

Marcus

New

obviously

toward

Jules I. Bogen—Graduate School

Even with the growth

population,

hospital

beds in¬

Committee

Congress of the United States—
Superintendent of Documents,
U. S. Government Printing Of¬
fice,
Washington
25,
D.
C.

insurance

Street—Co¬

Changes and Banking
Legislation in New York State

in¬

between 1900 and
4,359 to 6,956, but

if they were given

adequate for

that

lier all

Forand, Democrat of Rhode Is¬

the
not

Richard

University

Economic

which Congress supplies match¬
ing funds.

benefici¬

than hospital

■

The —Willard

lumbia

(paper), $1.00.

land under the Hill-Burton plan

the freedom of choice.

are

Inflation,

Financing—

Still others say that

might prefer to buy

(paper), $3.50.

MacQueen

Economic Statistics of the Joint

existing insurance
plans
do the job.
Furthermore,

many

Equipment

Advocates of the plan contend

uary.

Bill.

the

42nd

17,

Donald

Economies—Papers

than 1,500,000 people who
still working and supporting

themselves.

Street,

Mutual

East

submitted by Panelists Appear¬

golden

Health Bills

Banks, 60
New York

Thorp- and

Other opponents contend that

■come.

Savings

—R.

too

still

Association

Ninth Public Transaction

not.

States—Directory—Na¬

tional

New

BOOKSHELF

living longer, there is going to

their

the

30 West 42nd

Economic

vision, Association of American

With the population growing
by leaps and bounds and people

Banks

ing before the Subcommittee

that

goose

cians

United

Savings

—McGraw-Hill Book

Increase in Hospital Construction

views.]

time

educating

were

own

the

care

was

Mutual

Shippers Advisory Boards, 4th
Quarter 1959—Car Service Di¬

"Chronicle's"

Businessman's

diag¬

when

He said it

re¬

Washington,

Railroads, Transportation Build¬

definite '

substantial

started

Fund,

(paper).

ing, Washington 6, D. C.

egg."

Associa¬

proposes

regardless of need.
Federal

intended

mem¬

quoted

was

hospitals

patient could
in

that

hospitals.

lish

time,

saying there had been

Monetary

National Forecast of the Regional

the

Dr. Reuben F. Simms of Rich¬
a

$1.50; Part II, $1.50.
International Monetary Fund, An¬
nual Report 1959—International

pretation from the nation's Capital
and may or may not coincide with

per

mond,

the

died in the Civil War;

column

flect the "behind the scene" inter¬

hospitalization admission

shows

Con Views

Pro and

[This

ington—Report to the Congress
two parts—Superintendent
Documents, U.- S. Govern¬
ment Printing Office,
Washing¬
ton 25, D. C.
(paper), Part I*

—in

D. C.

15%

8% in World War I; about
4% in World War H, and about
2% in the Korean War.

almost

rose

down

about

Cross mem¬
declined slightly,

hospitalization

15%;

strides

Thursday, October 8, 1959

Export-Import Bank of Washing-

Korean War.

wounded

the number of members receiv¬

ing

tremendous

Approximately

Blue

had

Hospitals

Senator Hubert H. Humphrey,

the

of them to

a sweep¬

of money.

surance.

much for many

year or a

ing plan will cost a colossal sum

erick

hospital¬
few years

Federal

Certainly such

hence.

would, if they did not have in¬

sickness

year.

the

year.

big election

provide

that

.serious

security

social

It could be that the law-makers

occupying
the
hospital
beds
longer
than
they
normally

wage-earners

lias

off-election

Next year

that holders of these policies are

care

some reason,

increased

never

rand

medical

$192, and 1969, $216.

1966-68,

will

bership

trend

Should

appeal

000 deficit.

Although

calls.

through the years. This fact was
pointed up in World War II and

When

second

can

many

to make home

some

year

doctors said flatly
that greater and longer use of
the hospital beds was the prin¬
cipal reason for the last $1,500,-

persons

bill,

better

all

payment

Medical Care More Costly

appli¬

and

drugs

would be provided to

ances

For 1960-62, 8144; 1963-54, $168;

Right

ers

pitalization,

hos¬

bill

Forand

the

Under

The

Kefauver.

Estes

Anti¬

Judiciary's

Subcommittee

Senator

com¬

are

hearings

of
be

Senate

trust

nationwide

that

tremendous

the

and

plaint

could grow.

great profits for several

years.

substantial support. The support

Spring,

made

WASHINGTON, D. C.—Drug

within

the

for

course

The-drug manufacturers and
whole medical and nursing
profession
have been
making

The Blue Cross

officials

provide
patients
hospital than he can, if he

had

BEHIND-THE-SCENES INTERPRETATIONS

for twice

care

Printing

25,

Office,

(paper),

20£.

as¬

that

people

Attention

Brokers and Dealers:

TRADING

MARKETS

Botany Industries
Indian Head

Official

Southeastern

Our

New

York

Mills

Films
Pub. Serv.

telephone number is

CAnal

6-3840

LERRER & CO.
Investment

Securities

10 Post Office Square, Boston 9, Mass.
,I»J»

Telephone

'Stop saying

Hlbbard

our

business is really built

sand!'

Teletype
BS

6i>

Full text of Commercial and Financial Chronicle : October 8, 1959, Vol. 190, No. 5888

FRASER