Full text of Commercial and Financial Chronicle : October 9, 1958, Vol. 188, No. 5784

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OVER-THE-COUNTER MARKET FEATURED IN THIS ISSUE

Number 5^84

"Volume ICS

New York 7, N. Y.,

Thursday, October 9, 1958

Price 50 Cents

Copy

EDITORIAL
i

; ;v

By HON SINCLAIR WEEKS*

Secretary of Commerce, Washington, D. C.

There appears to

be fairly general agreement

Commerce Secretary states outlook for contitiuing

that the recession in

| it

under

was

thing of the past, While

the politicians—and, of

way,

j some others

occupied themselves with

—

of the

argu-

seenv.

now

center

larger degree

drums.

the

upon

\ to know, but

certain in

we are

do not

discussion? fail miserably to get to the

root of the

subject and

deal of

case.>:

business

useful to give

l;?"-

was

The

some

same

said

various

confounded the carping
The recovery is developing

scale

than

seem

through the

business

is bright—the brightest yet this y

;'\V V v;.v'"'::

Selected Key Indicators
Here is

of 1965.

August,- just, slightly,, under the
all-time high of August 1957. '
;

decline

continued

offered in June, materialized in
the form of a much larger issue than had been
anticipated, and the government bond market,
since then, had as bad a case of indigestion as in

billion

The

inven-

Sinclair

Weeks

tory liquidation coupled with rising
■
sales has brought the inventory-sales ratio back to that
of a year ago. Businessmen indicate a firming in their
plant and equipment expenditures for the second half of

government

Continued
♦An

page

address

t?y

on page

Association of

before the National

Mr. Weeks

Druggists, Philadelphia,

Retail

]

These bonds,

f
$16.9

which had given rise to very
Continued

a salute to bonds. It is, by
quite well known that over 95% of all gov¬
ernment bonds change hands, over-the-counter.
During the summer this segment has been espe¬
cially busy demonstrating both its functional
strength and its magnitude. For many years it has
been fashionable for resourceful and sophisticated
investors to "ride'? government bond subscrip¬
tions to new issues, employing often as little as
$5,000 or $10,000 to carry a $190,000 commitment.
Almost invariably these new government bond
issues have advanced in price; but not the 2%s

brief glimpse. Of selected

business indicators:; •
Retail sales - totaled

of the therapeutic agents to
credit is currently given.-Somewhat

k to

would

good

year..

one

benefit programs

has

The outlook for continuing recov¬
ery

by government, sometimes for the conscious
purpose of ending the recession and sometimes
without reference to it; indeed many of them
taken long before anything in the nature of a
recession had come into being. Highway building
programs developed in prior years which had by
the time the recession developed begun to become

the

Our autumnal review of the Over-the-Counter

Market starts off with

fall and into the Christmas season;

taken

which

broader

forecast

promise

much greater tendency than

operative are

from 5 to 174 years.

anticipated last April—
turning point of the recession.

the

we wish
to attribute the revival to certain steps
a

equities that have paid continuous cash dividends for

most people

thought to

;•

and

faster

reason

y,.

recovery

critics and the faint hearts.

being said than otherwise would be the

There is

there

public policy. It is for this

appears-

what is

The most striking economic fact today is the pace of

great

now,

misconception and give rise later to seri¬

errors

ous

that

well stimulate

may

economic history unless we give private
chance to do its job and turn away socialist

our

proposals. Calls upon responsible members of
society to keep unnecessary government spending in
check and notes it was Congress that voted more appro¬
priations than the Administration recommended.

minds

that these

selection in Over-the-Cbunter Market securities; together
with an: up-dated and expanded .tabulation of such

witchcraft

profess

our own

Outlining the 'investment opportunities and breadth of

Warns real trouble wilh develop at this critical

period in
enterprise

not there

J is much political sustenance for either party in
these claims and counter-claims

Enterprise Economist

mands, Mr. Weeks refers tqtjuch programs as highways,
aviation, and the recoyeV^ of; shipping from the dol¬

| it in its tracks. With the depression itself no
j longer much of a political issue* the discussions
'question of what cured it. Whether

By DR. IRA U. COBLEIGH

encourage:

failed to stop

to what caused it and what

on a

some

many'things which the Administration is doing to
economic growth and to meet modern de¬

ments

recov-

is bright and that it is developing falter and
broader scale than had been expected.' In outlining
ery

course,

;

Pa., Sept. 30, 1958.

year since 1920. The combination of over
supply and over optimism, coupled with some
quite involuntary liquidation, dipped the new se¬
curities as much as 6JA points. The huge overthe-counter government section was deployed
Continued on page 20
any

REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and potenundertakings in our "Securities in Registration" Section, starting on page 58.

SECURITIES NOW IN
securities

DEALERS
in

tial

are

afforded

State, Municipal
and

U. S. Government,
*

State and

UNDERWRITERS

Municipal'

BROKERS

Securities
telephone;

and

STATE

DEALERS

and

RAILROAD

PUBLIC
&

CORN EXCHANGE

Members Pacific Coast

Offices in Ciaremont,

FOREIGN

15 SROAO
CAMJCl

VOKK -NO AMERICAN HOCK

STREET, NEW YORK 5, N. Y.

RANK

OF NEW YORK

W 4-1400

Bond Dept.

Net

Active

Dealers,

t. l.watson & co.
ESTABLISHED 1832

Markets

Banks

Maintained
Brokers

and

•

Payable in United States Dollars
Price 89.50 to yield 4.45%

.CANADIAN

STREET

Teletype NY 1-2270
DIRECT PIKES TO MONTREAL

BRIDGEPORT

•

PERTH AMBOY

AND TORONTO

Goodbody & Co.
-

HBti YORK

1 NORTH LA SALLE ST.

CHICAGO

Department

DaMBnaxSecurities
Ceporation

AtUl'

Associate Member of American Stock Exch.

MEMBERS NEW YORK STOCK EXCHANGE
U5 BROADWAY

Municipal

DEPARTMENT

'■

California

Commission

natural gas

Guaranteeing Quebec Hydro-Electric

Bought—Sold—Quoted

Stock Exchange

for

PROVINCE OF QUEBEC

Members

<Q&tlthtte4t COMPANY
'

BANK

Correspondent—Pershing b Co.

New York Stock Exchange

25 BROAD

DALLAS

New York

3%% Debentures
Due February 1, 1983

NEW YORK 4, N. Y.
.

Chase Manhattan

$500,000
#

northern ontario

■

FIRST

THE

Inquiries Invited on Southern

Teletype: NY 1-708

DEPARTMENT

TELETYPE NV 1-22*2

COkURNHAM

American

BOND

California Securities

Distributor

;

Exchange

Corona del Mar,

EXCHANGES

•

Stock Exchange

Beach,
Pasadena, Pomona, Redlands, Riverside,
San Diego, Santa Ana, Santa Monica

Dealer

„

Bonds and Notes
Exchange

Encino, Glendale, Hollywood, Long

Burnhamand Company
MCMBCRS NEW

Public Housing Agency

California

Associate Member American

SECURITIES

ST.,N.Y

Street, Los Angeles 17,

Members New York Stock

THE FIRST NATIONAL CITY

DEPARTMENT

•

So. Hope

UTILITY

BANK

Underwriter

613

BONDS

INDUSTRIAL

CHEMICAL

BOND

Lester, Ryons & Go.

MUNICIPAL

■

HAnover 2-3700

30 BROAD

;

49 Exchaage

Place, New York 5, N. Y.

Tel. WHitehall 4-8141

Tele. NY 1-702-3

ioO-MOMTGOMCAY

STREET

;

SAN FRANCISCO 20.

CAUfBBNIA ]

The Commercial and Financial Chronicle

(1446)

For Bankst,

The Security

Brokers, Dealers only

I Like Best

A continuous forum in which, each

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

Try "HANSEATIC"

This Week's

Forum

Participants and

Their Selections

American-Saint

Edward

(The articles contained in this forum are not intended to be, nor
ar£ they to be regarded, as an offer to sell the securities discussed,),

wire

system

Large, experienced trading

HISCOX

EDWARD

becoming

3. Broad contacts and

Members: New York Stock Exchange,

The merger of American .Win-

better executions,
faster
for you.
.

and ;
Exchange (Assoc.)

American Stock

PnrnArafinti

Amariran Caint rnhaiit
American-Saint
Gobain

Recent

Corporation

piementary lines of products.

have witnessed

years

Monogram
Inc.

Precision

Carl

—

r r»

*»■

•

;

Stock

Industries,

;

T '

•

cisco,i Calif.

Bought—Sold—Quoted

liabilities of $1,642,000 by

vaiues

i
*

•

York Stock Exchange

Stock. Exchange

19 Rector St.. New York 8* N. Y.
HAnover 2-0700

ratio

NY 1-1557

Net workingv capital
to

New Orleans, La. - Birimingham, Ala.
1

$5,796,000.-Asset

also strong as the book

are

* '' *.

•

Members American
.

am0Unted

-Members New

0f 4,5-to-l.

Steiner, Rouse & Co.

(Page* 57).^ ': *!;^

Schick, '/Partner,

Swift & Co
Co., San
San FranFran

Henry F

result, the. new company will

Growth

dow Glass Company and Blue;
Ridge Glass Corporation represents the combination of two com-

Midwest Stock Exchange

mean

and

wholly-owned subsi-

4.
.

Louisiana Securities

—

Cruttendenr Podesta
Co., Chicago, 111-7 (Page 2);;: I

?*ai^
Saint Gobain. Blue Ridge
1S| second largest producer of
rolled glass m the United States.

Complete OTC service

Corp.

Dept.,

Director, Insurance and Growth Stock
Dept., Cruttenden, Podesta & Co.,
Chicago, 111.
...

department

Insurance

Gobain

Hiseox, Director of

private

Alabama &

;

In the investment and

Because Our...
1. Nationwide

it*

Thursday, October 9, 1958

...

Mobile, Ala.

Direct wires to

branch officas

our

be competitively stronger than vajUe of the common stock com
tities of glass. As an indication of the
two predecessor companies pUted on -a. pro
forma/ basis
the penetration glass is making in were as separate operations. How- amounts to $17.87 per, share.
;
trend to

New York Hanseatic

ever-increasing

use

quan-

various

Corporation
V

Established
Associate

American

1920

biles

120 Broadway, New York
WOrth

Teletype NY 1-40

4-2300

BOSTON

PHILADELPHIA
Private

•

Wires

1940
I

CHICAGO

•

SAN FRANCISCO

Principal Cities

glass

manuf3cturing

IPP§
Plant sites. As
mskM

trends

have shown

glass

Specialists in

RIGHTS & SCRIP

floor

Since 1917

crease

con-

today .than

used 10

was

ago.
The percentage fa*'
for industrial and commer-

ffcpONNEIl&fo
Members
New

York

American.
120

Stock

Exchange

good

giass manufacturing facilities,
erating figures for prior years

plantis

not

sur-

are

Exchange

pra

capacity
of
feet of plate

toward

result of the

curtain

wall

con-

not

40,000,000
glass

an-

the

For

American

the

solution

Call

information

of New
''J*

Company ;

STREET

Corpo-

Ridge

Glass

latter

company

the

Brokers

andPearningV

was

sales p0tential

jion

made

seriouspjate

rnis

msf

are

*OF BOSTON'

of over ^$60 mil-*5

MUTUAL

of $22 million of
$30 million iof sheet

giasS)

SECURITIES

Goblin''

This plant
.it:--l •

Saint

Prospectus

w!S

—

Refined

—

Liquid

Exports—Im ports—Fut ures

DIgby 4-2727

•

„ ^

Request:

GENERAL DISTRIBUTORS

■:

Corporation.

des

was

Manufactures

Produits

Gobain

the

XIV

modern plate glass plant; and that

'i V

*.A'

r..

—

wss

1665

founded

tion of the type of plant required. '
Therefore, management concluded

(Cornw of Washington SI.)
..Telephone Richmond

•

2-2530

Overall
io

profit marginsbe

are

ex—

substantially greater

|jja^ any reported by either of the

The that the solution lay ln^ an

France.

known

company

CO., INC.
BOSTON 9, MASS.

to be installed*in France.

soon

sffiliR—'/pj-g^ecgssor companies. Allowing
tion-with one of the existing plate £qj» a
greatly increased < sales /po—
can—Saint Gobain Corporation was glass companies. Any relationship
icntial and'-jan1* improvement in
organized with the basic objective with an American company was >r)rofit
margins, earnings-on the
of adding a plate glass manufac— forbidden*by the Flat.Glass Con—
a n-iprican—Saint
Gobain
common
turing facility and thereby ere- sent Judgment of 1948. However,,, stock could be several times the1
ating a third, full-line producer with Government approval,, an.^Qj^^^g^ normai
earqing p0wer
of flat glass products in the United affiliation with a foreign producer;
of the two predecessor companies

new

C""_ 3

ZERO COURT STREET,

Italian plant of Saint, Gobain and

its own capital structure was in-'is
France, sufficient to finance the construe—

Paris,

company

Louis

des

Chimiques de

whose history dates back to
when

Raw

FUND OF BOSTON

th^mas^

vu/ac

Bankers

& Investment

Bfoadway,N.Y. 6 Cffrtiandt 7-5699

1T1

facimies

records

new

Tokyo, Japan /

The American concluded that it lacked "as twin grinding production line,
wholly- the technical experience required The process to be mused is curT
subsidiary of Societe to design, build, and operate a rently
being ' perfected' in
ah

Glaces

)

KELLER BROTHERS

Anonyme

SUGAR

V'"'

..Yamaichi Securities Co., Ltd..

Once the

the_ plate. glass

operation

jeloping
a methodmarker,
through which
E^Lint'
npnptratp
not,,

4_ttn

;

owned

NEW YORK 5, N. Y.

WALL

J" V

r^>

;

York, Inc.

Affiliate

problem. American's management giass> ancj '$10 million of rolled
felt the full potential of the ^-®^u~i?giass.: Production costs should bo
and
Seagram Buildings in New psny could not be attained >uiiless <favorable as the new Dlant will be
York and the Borg-Warner and it could enter the highly profitInland Steel Buildings in Chicago, oble plate glass market, but dekodvinfi a new process developed
American-Saint Gobain

LAMBORN & CO., Inc.

/-*

write

Yamaichi /

anticipated.
American-Saint Gobain will have^

W 1 n d 0 w

very

to-, exceed

are in operation a
improvement' is indicated.

^
sales

Glass Company, the mergei

struction and larger glass areas as

ii—

current

Securities

pjate facilities
major

5_10% of the total ..United
States capacity to produce plate
„r.

expected

ieveis 0f 1955 and 1956.

■

TEL. RF.ctor 2-781S

F<rr

", V

exemplified by the Lever Brothers

BROADWAY, NEW YORK 8

op-

forma earnings per share"
the combined companies were

•

particularly significant//How-

ever

nually.
Such a capacity would
give
America n-Saint
Gobain

cial construction is indicated to be

trend

CKS

of plate"
-

$30 million and

almost

even,

financing , $2.04

soon as

excess

square
G. Edward Hiscox

res-

idential

have

space

struction
years

cost

unit

is used in

per

will

created

in 1955,' $1.88 in 1956, and*
arrangements are completed, con$.oi in 1957. Pending completion
struction will be started. It is ex0f jj,(> piate glass-manufacturing
pected that the new plant, will
-facilitieS, earnings probably can-

architec¬

that 36%

recently

and

JAPANESE

present company

changed by the addition

engineering

plate glass

new

onjy

merger

have been made of suitable*,

veys

in¬

dustry, studies
tural

Preliminary

well advanced and extensive

con¬

struction

the

for

models.

t h

.,a.A p

facility.

the

insoiar.as

was

flat

producer of

<50%

than did the

«.

create

glass protfucts in the U. S. by the addition

use

Exchange

line

objective of the
a third,full-

basic

merger was to

kets, present
day automo¬

Member

Stock

the

ever,

mar¬

a3, Amen—.

States.

was

f imi

possible.

^
••
*\ ■, eveii allowing for the additional
Gobain, as the French
Discussions
and
negotiations/shares-to be ^outstanding.
Company is generally known, now began in February 1956 with Saint * American-Saint Gobain's new
,

Saint

NOTICE!

40%

owns

Gobain

To Eastern Seaboard
The South and

Established

★—

Security Trad¬

the

enlarge its

system to connect

Eastern

Seaboard,

South and Southwest to
tail

who

re¬

trading organizations

wish

fast,

accurate

service in Eastern markets

Approval of the merger "facilities will come into
producfrom
the > United |
^ion about the time that demand

obtained

purchase additional

States

$20 per

in February, 1958.
For Saint Gobain

implications
cause

f<br

Saint

book

lower.

know-how

When

With

future

be-

management

much, if not more,
glass industry
company
in
the

the

other

any

world.

the

Gobain

probably has
as

pres¬

Gobain..
was

option

option
is
exercised
Saint
Gobain's ownership will be increased to 55%.
This close association has extremely favorable

system from Coast to Coast
wishes to

this

ing Organization with wire

ent wire

American-Saint
stock and has

value whichever

Southwest Dealers
—

common

almost 300

of
experience behind it, Saint Gobain
has 32 plants and 65 subsidiaries

4no orPuoie

years

and

Governments* jc

French

has provided

means

major

penetration

States

market for

>J-J I

Otto

&hwenk

to make

stated'

the;United'-

glass products.,

sures a long term association with,

organization that has

i'.y
the

new

that*the coiTipJeplant will coin-

...

con¬

Glass

?lass 1

fared

»efSnomists

•. -r
Capitalization and Finances

Com-

incorporated in 1899

„

StatisticianTnd

are* 'agreed

h!c

that

the

ex?stenc^

for

*?omes'

★—

the
Blue

was

All inquiries treated in Strict¬
est

Confidence. Box Number
C 109, Commercial & Financial
Chronicle, 25 Park Place, New
York 7, N. Y.

producers
United

sheet

glass

States.

•

Ridge

Glass Corporation
organized in 1925 by Saint

Gobain, Corning Glass Works, and
Glaceries

gium.
chased
de

Saint

Roch

schools,

4%%

bonds due 1970

$3,000,000

•;

literally

Bank note due serially to

all
5%

cumulative

stork

preferred

oar)__

" 163 425 shs:-*

Common 8tock ($7-50 Par)
American-Saint

591,537 shs. •

Gobain

enjoys

Saint Gobain pur-! a good financial
position
On a
interest of Glaceries i pro forma basis current*
assets
Roch, and in 1955 Blue including cash and Government

held

ambitious

complete

1959

Reserve

mailing

now

list

Catalog.

your-copy

re¬

our

•

UfFL LIST CO., INC.

N.Y.16: Dunhill Bldg., 444 4th Ave.
MU 6-3700 • TWX—NY 1-3135^
CHICAGO

E. Washington St.

DE 2-0580 • TWX—CG 3402

commercial

dominant' construction'

the

Ridge purchased the shares
stock

Bel-|

First mortgage sinking fund

In 1953

Saint

wWeh wiU

three*

in
—

FREE:

dunhill

greafest dfmand

glass of all tVDes that this industrv

Giving effect to thej merger,
w^them in the
a
consolidation of several small American-Saint Gobain's
capitali-.^lofin'c
sheet glass producers. At the time zation consists
as
follows onTa;
y
This, plus an architectural trend to use ever-increas¬
of the merger with Saint Gobain pro forma basis:
:
V
ing
quantities
of ' glass 7 as
a
this company was one of the
largest

nections.

^hundreds^ *f

names

—plus other valuable

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

es and employs in the world-

American Window
pany was

thousands
r.

quirements.

much
if not more know-how in the glassi
industry than any other company
as

can1 supply

..your

minor position in it. For Ameri- '
can-Saint Gobain the merger in-

Together!

AmerL

the' mergerf can_Saint Gobain's;
President, has

The United States market is one.
of the largest in the world.but.P. ^
tion
Saint
Gobain has had only < a

Let's Get Rich

Pvnprted/tn*;reach/new/biehs7*

As "Mr

Corning

its? securities

thereby, $7,438,000

and

$l;795,000,
exceeded

totalled
current

types,

sheathing
forecasts

material,
buildings of.-

market

unprecedented size and
r

scope

of
for

„

Bur lnauslrY^ .my

American-Saint
Gol>am Corporation common stock
affords unusually interesting long
4 e r m aPPreciati<«i Possibilities.
*The comPPny is-gmng to be in »
Continued

page

N. Q. B.
OVER -THE - COUNTER

INDUSTRIAL STOCK INBEX
19-Year Performance of
35 Industrial Stocks
FOLDER ON REQUEST

Natmal dwtatnn Bitmi
40 fast Street

New Y«rk 4. IL V.

Number 5784

Volume 188

The Commercial and Financial Chronicle

(1447)v 3

index

on a

,Y<uX.^

■>

Y; "THE OVER-THE-COUNTER MARKET—WHERE
By GEORGE

Superintendent of Banks,

State

of New

ARTICLE starling

York

the

oji

cover page,

superintendent:

of state law;

(2)

New; York must regain historical
unfortunately,/ bad Congress taking over; (3)
warns

21)

lectures

conceded

know

'{-It

their

i -CA't

and

evolve

jeopardizing New York
.

than

to pass

Financial^ Institutions Act and

Almost

immediately

after

need

recall

The Operation and the

before

appeal'

the

PROPERTIES

the

Y Heard at Annual Convention of the Savings Banks

the

In the

Association of the State of New York

House

of New York;

strongest
from

All

those 'critics

that

a; self

- serving,
monopolistic,

George A. Mooney

the

significance

harmful

an
evidence that New York banking
was
changing radically;, and that

development

changes

i'ments

the

require-

andrthe

-.i-

c:a|

economy

wha

recognized

that

and

all

Needless

•

f A.

lfc

1AC11PO

nnn«

1_'—

■%

Problem,.^

Continuing

'has

Dollar

As We

one

prompted it and all of its implications from every aspect. When at Yl
ti
Tast we became convinced, with seivatism
'

factual

evidence' to

support

our

view, that this merger was in the
interest, we unhesitatingly
gave our approval

; public

Bank

state

new.

and

^Coming

Insurance

Stocks—

Democrats

Remember^
we
accused of

often

are

.being blindly' anti

big

business.

»C

ing

7
bank

pains

this

new

address

Mr.

-Association

Lake

tbe. State

Mooney

before

Savings Banks
of New- York,

considering

are

-'
.

Placid, N. Y., Oct.

1958.

Continued

page

1 '

Wilfred

Governments.

Our

Reporter's Report—-.

N. 1

Teletype NY 1-1825 & 1-4844
Direct Wires

26
San Francisco

Los Angeles

Philadelphia

Chicago

Dallas

66
4
18

May

Quinta Corp.

____;

Securities

"T*

Sabre-Pinon

Securities

Securities Now in Registration

Ling Electronics

Prospective

Security Offerings

and You-^-By Wallace Streete

The Security I Like Best
4

inc

40 Exchange Place,

Utility

J .'The Market

mackie,

Securities Salesman's Corner.

applications

your

Reporter

•'Air

65th annual convention of

\Ta.../*

—

Our

.Railroad

^ down to safeguard the grow-'
.

Observations—A.

Public

that' the

which

News About Banks and Bankers—

ot the Banking Depart-.

conditions

F. Glass Fibers

HA 2-9000

iteenmmen«iiiinnc

Broker investment Recommendations

Denart-

similar to those which

)

the

•

Investment

weuTttetoZS

and

L. 0.

Cover

Events in the Investment Field—.:.

Dealer-Broker

the
it-

and the success

note in. passing

terms

Singer, Bean

(Editorial)

Business Man's Bookshelf

•

-ments requirements. And I should
like

Regular Features

See. It

NSTA Notes

■

First National Bank of Boston Warns
Against Distrust of the

the'prcH J
'd'<thet<reasons'Pwhich

'•••'

Ling Electronics

savings

view

'Pacific Uranium
V*

V__

New X°rk Federal Reserve Bank
Expects 1956-57 Peak Output
Soon Writh Unemployment

merger

l„i

Brush Beryllium

Y—- 36 *

Dean Collins and Dr. Marcus Nadler Offer
Solution to
Federal Debt Management

and by .way
those merger critic^

sav

a———13

Industry Prospects Analyzed__i7i:___X.

trend? !phd* the"LJommodities and the U. S. S. R."__
*J_
liVrktm
AltAnil
provided, to insure its con-? precedent-breaking aspect
this
From Washington Ahead of the News—Carlisle Bargeron
tinued gro\vth, we did it the hard,
approval, - our
action / was3 not
Indications of Current Business Activity
;way. The Department's research ;taken lightly.- • Y :
* 1 Mutual
"
Funds
postwar

...

be-

City

Epsco, Inc.

Unions
" '

Construction

charter to be given a
commercialf
bank
since
the
bank ' holiday,

reasonable accommodations had to

Lake

National and Federated

011

addition,

granted the first

wires to Denver &

that a merged bank
replaced, the Department

never

JCY 1160

—

argue

jn 1957

state had

o.ur:

Direct

Whatley

commer-

for

one

HEnderson 4-S504

Teletype:

...

Suner-

Department

and

Brown L.

serv-

domi-

are

the

banks

banks.

the

factors

0f-answer to

Instead,
however,
because
w£.
.were convinced that the changes
in

cah

mergers

DIgby 4-4970

»^re We Meeting
ing the Challenge of Sav
Savings Bank Life
---•
—
—1"■
*Jlie
Insurance?"—Thomas H. Hawks—

public either

approved 53 mergers for

lay; matter for the new Supenntendent, a Democrat, to have rejected this merger proposal.
r

intendent,

at the time it would
comparatively popu-

harmful

Believe me,

have been

some

Exchange PL, Jersey City

Salt

Today's Trends in Mortgage Lending

nant, we will have no hesitancy in
denyjng the merger application. 7

SrrUvUSP0StWar eXPanS1011
-

that

Spokane Stock Exchange
'

Troubled

Halting the Persistent Badgering of Savings
Banking
v.-—William A. Lyon

proposed mergers could be
to the public and
that

when

reflected Ahe

our. economy,

•Si.--".

approved

Members Salt 'Lake City Stock Exch.

Community—Kilgore Macfarlane, Jr..

other hand> it holds !that

the

some

;

marked

;

J.F.Reilly&Co.,Inc.

Bankers With the Entire Banking

P. S. Housing Market—And Our Position in
'. World—Hon. John
J. Sparkmanjj.,

| this merger development as

now

say

_or
because they solve
.prob-':-;y.jems exjsting in individual banks.
Guaranty Trust Co. Urges Bank

_j* heed. But ,we were alsa especially
of

public

^ecausc> thev'provide better

and we took

of monopoly

conscious,

only

be beneficial to the

„

not unaware, of course, of The
perils

need

have

recognize

;We were

and

matter

Standing Together

proved & merger

a s

'. and worse!

or ^disap¬
applications
in v
accordance with the policy eStab- 7
lished in 1955. In brief, the policy
holds
that we
are
prepared to

pro-

l,w

0 s a

this

record

charged

_____

State

FOOD FAIR

.___

for the

w.a s

4 that .the

CENTURY MINING

i.;

Waterfront Properties Offer the Best
Investment
—Roger W. Babson——

the

Future of the Export-Import Bank

Y—Samuel C. Waugh—

subjected to

who

CHEMICAL

Not to Have the Development Loan Fund
>-*Y—Dempster Mcintosh

■

Representatives.

course

GUARDIAN

you1:- will;;.
1955 I was

Subcommittee

House

pressure

this,

early
to

Hutton—________ 14

hearing I.,;
Resolving on a State Level Competitive Banking Problems
detail-the- merger v:
—George A. Mooney_
we had formulated

that

Antitrust

PETROCHEMICAL

Y We Cannot Afford

public 4
served."'/
^ s

are

all

WALL STREET, NEW YORK

JEFFERSON LAKE

oh the Road—Ira U; Cobleigh———9

presented in
policy which

me n t

part

summoned

this

Depart-

-.Y

when

way

interest

and

consolidation,
my

the

Cr» ^iminez-7

v.-

ing. Because
the'magni¬
tude

stand

the nis-

level.

—

Cover

Investment of Pension Funds-^John G.. Heimann„_

„■

state flatly, however,-that
consideration of size alone will

mercial

merger; in

not Federal

—

Page

Our Enormous Spending and Tax Burden—F. R.
Hoisington__

can

tory of bank-

state

appointment in 1955, I was called
upon to approve the biggest com¬
bank

/Y. Inflation—Fast: Present: Future—Graham
•

banking's "house in order"

cowboy's ready to
oynery obsoletes

41).

___

instead, putting

urges,

tame

Obsolete Securities Dept.

^
Big,Ryder

ingredient is banking industry approach rather '
conglomeration of special interests. Terms futile attempt r

page

This

with cask!

The -Stock Market Picture and the Intelligent Investor
—Gerald M. Loeb—
H

theworld's financial center.

- as

10-year category (Table II,

! The Economic Outlook—Hon. Sinclair Weeks

;

Mr.

competitively..

States missing
/

those in the 5

•

Telephone: WHitehaH 4-6551

Mooney refers to legislative impasse and believes continuance^
of complex and opposingly controversial demands could result
in

well

Articles and News

banks;- and (4); strongly: favors•
banking type of. institution but asks them'

direction

WALL STREET

avaih

securities

> ^

commercial

retention of each

of Them Are"—*

exemplified .in the
tabulations .showing the. names of hanks and companies which have
paid consecutive cash dividends for 10 to 174 years (Table 1, page

leadership or,
savings ^.bankers-en -getting away from "grandma",
sentiment and on deciding tttkkly how much tax equality can-

and Most

discusses the investment opportunities inherent
aide only in the Over-the-Counter Market as

(1) reviews current efforts

modernize branch, merger, and holding company provisions

"The Over-the-Counter Market

,^-Where Aft Securities Can Re Traded
New York bank

ALL

SECURITIES CAN RE TRADER AND MUST OF THEM ARE"

A. MOONEY*

and

Published

Commonwealth Oil Co.

of Florida

The State of Trade and Industry
Washington

—_

You

Reeves Soundcraft

Twice Weekly

Montrose Chemical

The COMMERCIAL and

For many years we

have

Reg
WILLIAM

Park

DANA

Place,

REctor

Spencer Trask & Co.
BROAD

second-class

Subscription

9576

Publisher

SEIBERT, President

Thursday, October 9,

Pan-American

Uniori,

Dominion

Albany

Boston

Nashville

Chicago

Schenectady

•

Glens Falls

Worcestert.

f '

—--

$65.00

Canada,

Countries,

per

$68.00

$72-00. per

year,

per

Bank

plete statistical issue —market quotation
records, corporation news, bank clearings
state andv city news, 'etc.)'
~
.Other Offices:, 135 South La SnUe St

$45.00

Chicago 3j 111,

must

(Telephone STate

2-0613).

and

per

Note—On
the

Publications

INCORPORATED

39 BROADWAY, NEW YORK
WHitehaH

; :

•

Teletype NY 1-4040 & 4041
Record — Monthly
(Foreign Postage extra,)

account

the

New

Wire' to

fluctuations in

ol
exchange
remntaucet
lo
subscriptions and
advertisement*

made

Direct

York

funds.

3-3960

Quotation

year.

rate

foreign

W» V. FRANKEL & CO.

year

year.

1958

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬

TELETYPE NY 14.

Rates

Subscriptions
in
United. States,
U-..6.
Possessions,
Territories and
Members of

Other

TELEPHONE HAnover 24300

matter Febru¬

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

Other

ST., NEW YORK 4, N. Y.

ary

Office

New York 7, N.

2-9570

WILLIAM DANA

Reentered

COMPANY, Publishers

HERBERT D. SEIBERT, Editor &

Members New York Stock Exchange

Patent

Company

FINANCIAL CHRONICLE

PREFERRED STOCKS

specialized in

PHILADELPHIA

;

The Cofnmercial and Financial Chronicle

(1448)

(3), are you not assert¬
ing that the S stockholders are in
the
same
position, intrinsically,
as those of both company C and
company N—although the latter
two groups are in different posi¬

By A. WILFRED MAY

and

STOCK DIVIDEND

IN DEFENSE OF THE

from

ance

following communication
Benjamin Graham rebuts

cash

considered

the

It jseems

held by Austin Barker, Anthony
Gaubis and
the writer,: as

sales to the company.

views

the

stock dividend

-vmsm

recently pubin

this

column.

The

lished

justification
of the practice
was

cal

utility to

the
and

company
the share¬

holder,
further

and

practice

investor.

Wiittea

the

Mat

leading

Finance

the

University

but

itself

for

gets

different

way:

sharply

the

Now, the following questions
possible utility of stock, dividends. "re the three companies are in
Assuming that we al*e both in¬ order:—
" V:
telligent and knowledgeable in
(1) Is it not true that stock¬

finance, this divergence probably
that

means

one

both of

are

exercise
their

The

old

(2) Do

American Co. policy was

certainly
it purported to
stockholders
periodic

harmful,' since
give

the

stock

dividends

worth

far

not

ceived

cash

nor

"meaningless
paper"?

to the
criticisms you have made of it.
Certainly, it does not obviate the
need of selling stock, if it is com¬
pared with the simple continu¬

are

the

different

holders,

identical?

true, also, that the

involved

stockholders

—

for

and

company

it
S holder
(Is

-—

both

for

the

several

the

offering of

additional shares via rights (com¬

pany

dividend

•

Sept. 27, 1958

NSTA

EXPRESSES

THANKS

Members of the National Security Traders Association attend¬

ing the annual Convention at the Broadmoor in Colorado Springs,
express their grateful thanks to the Bond Club of Denver for the
"Bolo" ties presented to the gentlemen and
opera glasses for the
ladies.'

;■

;

■

v."t

most appreciative also of the beautiful corsages pre¬
by Samuel and David Magid of Hill, Thomp¬

were

sented to the ladies
&

son

Co., Inc., New York City.

NSTA AWARD TO EDWARD WELCH

inscribed

presented

were

Welch

silver plate

Mr.

(Sincere

and

hi-fi set

Mrs.

Edward

and

Company,

Chicago),.

expression of the NSTA's appreciation "...

in making arrangements for

25 years vf

the Association's

Conventions.

"""'T

'
„

Edward

Welch

in an equivalent stock
(company S)?

SECURITY TRADERS
The

tion

ASSOCIATION OF NEW YORK

Nominating Committee of the Security Traders Associa¬
New York will hold an open meeting at the Antlers

Restaurant, 67 Wall Street, at 4:30 p.m. Monday, Oct. 13, to receive

suggestions from the membership.
Members of the Nominating Committee are Nathan A.Krumholz, Siegel & Co., Chairman; Harry L. Arnold, Goldman, Sachs
& Co.; George L. Collins, American Securities Corporation; Joseph
C. Egan, Frank C. Masterson & Co.; Raymond C. Forbes, Shearson, Hammill & Co.; and Abraham Strauss
(Alt.), Strauss, Ginberg & Co.
DALLAS

■'

*'•.

SECURITY DEALERS

■

ASSOCIATION

The

Dallas Security Dealers Association will hold their 1958
outing Friday and Saturday, Oct. 17 and 18, at the Western
Hills Hotel and the Ridglea Country Club.
Cocktail party and
dinner will be on Oct. 17, followed by an all-day outing on the
18th at the Country Club.
Tariff for members is $7 for Friday
evening, and $10 for Saturday. For guests tariff is $25 lor both
annual

days.

•

General Chairman of the outing is J. Reis Bambenek of Dallas
Securities Company. Norval Keith, Schneider, Bernet &

Union

My examples and related

not assert that the C

receive substantial cash

would

trouble

stock—

pieces

application,

for their wonderful work for the past

(6) On
the
matter
of
"nui¬
sance," is it not true that, by and
large, there is at least as much

On the other hand, do you
holders, who

(3)

subject, in part at least,

Tax Feature

a
smaller tax to pay; than
equivalent C holder who sold
his rights?)

have received

only

than
the
currently
reinvested
earnings. Commonwealth Edison's
mew policy appears to me to be

Cap de Croix, ;

Nice-Cimiez

com¬

no-dividend policy.

the

you

neither

have

the

since the S people

with

who sold his stock dividend would

not assert, however,
position of the com¬
pany
S stockholders is intrin¬
sically
identical
with
that
of
company N holders, who have re¬

North

least

assumed—at

tion

each

no addition, net,
cash, but they do have
more shares of stock.) If not, why
not? (I exclude the taxation ques¬
tion here.)

that

stock¬

—

their

19 Ave

proper

company

^Jglfj^itj hot* true that, under

they have

case

apparently deny the
practical value of each and every
stock-dividend
policy.
In
my
view a stock-dividend policy can
be positively harmful, or of du¬
bious value, or of genuine use¬
fulness—depending upon the par¬
case.

(In

the

BENJAMIN GRAHAM

their

Kf.;

C and com¬
each year in
nosition, if they
rights or retain

dividends?

present laws, the S holders will
pay no tax, while the C holders
will pay lull tax on the dividends
received
although in other re¬
spects their cash and stock posi¬

their

the

(a) in the same posi¬

those

•.

same

stock

opinion,

are

However, there is a tax feature
which gives the S holders an ad¬
vantage over those of company C.
May I, ask Jtwo further questions
here:

company

end

exactly the

you

ticular

pany

placing too much emphasis on
some
aspects of the matter and
neglecting others. Your position
is
more
extreme • than
mine,
since

holders

pared

dividend, but a periodic
stock dividend equivalent to the
stock sold by company C.

DEAR MR. MAY:

diyidend pol¬

pays

cash

suitable

here

the same

company

and

com¬

C—
except for the tax advantage of
the S people, and
(b) are in a
different and better position than
those
of
company
N.
If I am
right, this would demonstrate the
intrinsic utility of a stock-divi¬
dend policy in the particular case

ad¬
AT&T,

(e.g.,

All

tion

the

from

define

escape

holders

by selling them

Company

etc.).
result

cash

ditional

Southern' California.

You and I differ

the simplest
dividend at all.

that

utility,

techniques

follows

stockholders

au¬

analysis, au¬
thor, and investment
company
manager; and Adjunct Professor
security

back

takes

•

logi¬

icy, since it would claim that the
dividend made no difference at
all.

the more
customary and popular policy: it
pays
a
standard proportion of
earnings in cash, but concurrently

of the

part

equity,

tance

takes

Company

Mr.s Graham

thority

tourse: it pays no

ground of
misconception
con cerning
the

typi¬

stock-

equal to the year's earnings.

Company

the

common-stock

creased
sum

field

end.

•

panies with similar earning power
and expansion policies are in an
identical
position, regardless of
what dividends they do or do not
pay.
But that would be begging
the whole question of the impor¬

"policy ' preferable* to
policies. Assume three com¬
panies, all
with, good earning
power and growing, and all wish¬
ing to invest annually, via in¬

real

its

useful

plicated task.

that the stockholders of all'com¬

other

lengedv' here,
as

in which I find

case

would be another and

"the gulli¬
bility
of
the
small
investor"
(Gaubis), but that they can serve

that the only
this logical ^di¬
deny the sig¬
stock-dividend
policy in this case, is by asserting

dividend

hal-

try to illustrate

this be

not always a snare for

Thursday, October 9, 1958

lemma, and still
nificance. of the

Typical Case
Let

not

impossibility?

way

dividend.
adopted in

place of a substantial increase in
the cash rate, then it would in¬
volve a saving of cash or of stock

the

Would

tions?

cal

The

If you answer,"yes" to (1),

(4)

(2)

...

dividends,

position from
who
receive

tions

are

tial,

but

ques¬

confined to only a par¬

still

quite

important,

sector of the stock-dividend field.

nothing?

purpose

show

that

here
stock

try

dividends

Hickman, is in charge of reservations for guests. Henry Matthews,
Company, is in charge of a special feature.

First Southwest

Members

Davis,

are

reservations

for the outing with John
Bank; for the Golf Tournament with
Oliver, Jr., Sanders and Company.

FLORIDA

National

SECURITY DEALERS

The Florida
1958

make

may

Republic

Allen L.

convention

Sarasota, have announced their
H.

ASSOCIATION

Security Dealers Association, which will hold its
on
Oct. 16, 17, 18, at the Lido Biltmore
Club,
two guest speakers will be Erwin

Schell, Professor Emeritus, Massachusetts Institute of Technol¬

ogy* who has been in charge of the courses of Business and
Engi¬
neering Administration and Henry S. Toland, Vice-President and
Trust Officer of the
Exchange National Bank in Tampa.
Professor Schell will speak at the Mutual
Fund

Seminar,
Friday morning, Oct. 17, and Mr. Toland will speak at the lunch¬
that

eon

McLeod,Young,Weir,Incorporated
Dealers in

Canadian Securities

noon.

Advance registrations indicate a record
attendance of over 200
and. it is expected that
among the guests will be Insurance and
Secunties Commissioner
Larson, from Tallahassee, and possibly
Secretary of State Richard Irwin, and Comptroller Green, as
well
as Danette
Mayes,

acting Securities Commissioner,

take pleasure in
announcing

the

opening of

our new

office

£ convention has been arranged by a committee headed by
McClure of Pierce,
Carrison, Wulburn, Tampa; E. D. Read
A. M. Kidder &
Co., St. Petersburg; Clifford U. Sadler of
•

Louis
of

Siaoa1nS&nrIln^*Sadlfer' ^-Petersburg; William Adams, Adams
Clear\^ter FlalaS°
HeniT M. Ufford, Calvin Bullock Ltd.,

Broad Street

•

New York

Joins Yates, Heitner

5, N. Y.

ST.

LOUIS, Mo.

Harlow is

under the direction of

ner

MR. GEORGE C. MacDONALD
PRESIDENT

Cooke Inv. in Hawaii

fSpecial to Trni Financial Chronicle)

ing,

now

—

with

William

Yates, Heit¬

Woods, Paul Brown Build¬

members

the

and Midwest Stock

New

York

Exchanges.

HONOLULU, Hawaii
Cooke
Investment Company, Inc. is en¬
gaging in a securities business
—

from
P.
is

Now With Saunders Stiver

Telephone: WHitehall 4-1 770

Teletype: N. Y. 1-4808

members

Exchange.

the

Midwest

Stock

Box

here; mail address is

2041.

Anson

Hines

principal of the firm.

Maracaibo Branch

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Robert J.
Akos is now with Saunders, Stiver
& Co., Terminal Tower Building,

offices

O.
a

Fahnestock
the

have

New

York

opened

Co., members oj
Stock

Exchange
office

new

Maracaibo, Venezuela,

under the
management of Alfred £. Scott.
-

Number 5784

Volume 188

.'The Commercial and Financial Chronicle

(1449)

Electric Output

Retail

tions.

and

Industry

.;•{

•

Business Failures

Mr. Loeb offers

and

optimistic appraisal of the stock market

business indicators showed increases such

output, electric kilowatt production, carloadings,
output, lumber shipments and paperboard production. *
steel

selves

petroleum

■

but to follow it and cash in

to do

it.

industry strikes and parts shortages held " \
1959 model production from rising the past week. This week ofily I'
a small number of workers of General Motors Corp. reported for
8
work on Monday last as bargaining continued on local issues at
General Motors plants across the nation* A general contract settle1
meirt was reached on Thursday night a week ago by General

early enough and
make enough profit so that when the change
finally occurs
the loss is not more than 15% or
20% of the profit made/'
Viewing the general economic outlook, he opines business is

Motors and the United Auto Workers Union.

inevitable

the automotive

V.1' On the steel tront this week the
with

'v'

;
Oil imports rose to a record high
Petroleum Institute reports. There was

last week, the American
fractional gain from the
prior week in petroleum output which resulted in av year-to-year
increase of 4%; Although stocks of gasoline rose seasonally, they
down from

were

ago.

year

;

f
rose

There

was

extended.

*• -*.j-:-v

•

;

new

weekly

disclosed
'

The

workers;

decline,- the
'

United

//•■:

r"7'7: V

total " decline

States

tbe

;

:: p.'.

added,

In the similar period last year, insured

was

the

754,500 %

qnemployment

by 174,900.
v 7; V.///-'
'''■"■*
"iX
The latest week's total, the lowest since late September, rep¬
resented 4.4%r of workers eligible for compensation, compared

recalls at

the

auto

claims

the

week

! The

condition

but

Along

that

the

demand.

the

bring

about

with

this

are

.corrected

There cei—

stock market-wise,

Business-wise,

various
the

Continued

will

sec

that

page

price,

see-»

long side of

types

wider

factor

line

current

The

that

discrepancy becapitalized current earn-

tween

+j'p

pctimated

£ cl^^

the

to rtose tne gap, me ni^nei

the

used to cost 5ci« SO may

Averages by 3 to find where they
are *n "relation to hard dollars.
I think in the stock market, one

obviously has to make hay while

the sun shines. It

and

without

anv

fanfare

wixnouc any lanxare.

Likewise,
sh0uld

also

and

[nd

nature,"

recurrentlv

overvalue.

un—

It is

onjy occasionally that they reflect
values>
then I doubt

tru*

an/even

j£ anyone

could really find

deteriora-

corporation

the

business

situation

attention.

little

But

receives

when

openiy aeciines, tnenmese
Continued

on page

announce

them.
our

and

price action,

time.

admission

membership in tbe

New York Stock Exchange

began

However, when he

check

estimates with

his

officials, he
enthusiasm dampened.

had his

Stifel, Nicolaus & Company
INCORPORATED

Business Is

Better; Inflation Is

Inevitable
Of course,
ered

of people

for its strength.

increasing

address

New

York

Today,
Mr.

Association

City,

Oct.

CHICAGO

ST. LOUIS

found reasons
we

know
October 3, 1958

*An

Banking Service Since 1890

the market gath¬

momentum

number

Investment

before the
of
New
York,
1958.

Loeb

the

market openly declines then these

basis

often occurs in a bull period,
aad ^hUe the market is strong,

xnen

„

remembered

that markets by their very
npr«ietentiv

Then"

we 8et into a bull market and
these
changes
arecapitalized.

What Is True Value?
It

that the

seems

real and genuine basis for changes
in stock prices develops quietly

renuircrl

higher

the

aao

be we ought to divide the Dow

in¬

corporation

5,5

the

that

earnings

o/this
the

As far as price is concerned,
whether we like it or not we are
not dealing with hard dollars. It

crrpit

Another factor

*ar as the Averages are concerned/
that they have not been split.
Hence, as people tend to talk
about the .^Averages in points,:
rath^ than >in percentages, what
seems /like a; large change in
points is quite modest percentagewise. ^
.
7
"

the signs of a bull market

Investment

the

per¬

normally major factors in the market.
there

seesaw.

A student of technical in¬

tried to

public, Detroit could step
way than it has to date.
This
jockeying for position on mill order

that

the

came

fluences

the

expectation

$15

the

short side of the

years,

cautious I found

now

bigger

the

change of $1

always been in constant

over

ferent.

users.

and both

in April. We
retrospect that the
in business, but it
was
not apparent.
The situation
in the market, however, was dif¬

are
looking .toward the railroads and the oil and
industry as aces in the hole for the first half of next year.
of these major steel users has been
buying anything of

Coupled

deterioration.

change

Neither

consequence

long side.
price earnings ratio is

The change came

The mills
gas

could

with

know

already around 70%.
The metalworking weekly states that both steel
producers
and
steel buyers are watching the automotive market closely.

by all steel

mar-,

the

first.

books

current

One strong private capital group
know, early this year was clas¬
sifying companies on the basis of
which would go into receivership

for the fourth quarter could easily be 75% despite
expected leveling off in December. The current operating rate

would

are on

Changes in
on

average

with

prices to

toportance

and in a
general way the more successful
they were, and consequently the
bigger their investment capital,

ago.
This means steel output will be more uniform
products, companies and steel-producing districts.
trade magazine predicted that the steel operating rate
will hit 75% of capacity or more before November, adding that

over

bottom.

vestors

This

much

the

touch

weeks

year

I have

among

rcflcpt

a77777La
factors
The factor ,&ff
which

sure

but false lally early 111
with stocks closing at

stiong

the

sistent

Many users are now going farther afield than was the case a

into the market in

market

In other words

running into trouble trying to get the steel they want when they
it, it adds.

models

remembered

trend

and

j:,il7j„as
a very great hangei'
Jjervalue
1958 would resemble
19.S0.

want

new

lows.

geems

many

any-

been

that

are beginning to see
sailing ahead for the balance of the year. The pickup in
has been a pleasant surprise considering the relative
lethargy of the automotive, railroad and oil and gas markets.
"The hand-to-mouth buying policy of some months back is
no
longer the smart thing to do," the trade weekly reports.
Many old-time customers of some companies this week arc already

the

time, if

have

shoit of seveial years.

Meanwhile, the mills for the first time

could really

that the situation in business and

clear

good

todZ.
*m0st out of
Sjfj,of

October

that I doubt at the

demand

the

Drier*
.

1956 aild

1957-58

It ■should

also

are

going sidewise, and quite
few that stick pretty close to
are

their

1957, there
nothing tangible at the time

one

few

situation
its vitality.

industry this week some steel buyers are hedging
against >a. further tightening of the market, "The Iron Age,"
national metalworking weekly yesterday.
It declared that growing tightness in supplies of flat-rolled
products—sheets, strip and galvanized sheets—is forcing users to
place their orders farther ahead, "just in case."
The metalworking magazine indicated there is little chance
of a genuine shortage of any steel products, but it added there
could be temporary pinches in supply until the mills adjust their
in

Loeb

"continued modest improvement

In the steel

surges

there

•

manufacturing." Instead of rising, the layoff
dropped to 16 from 20 per 1,000 employes. The hiring rate
rose from 33 to 37, which the department stated, was about normal
"for the period.
The layoff decline occurred in the durable goods industries,
with the largest drops in transportation equipment and in primary
and fabricated metals. But in the machinery, electrical machinery
and furniture industries, the hiring rate rose less than usual.
*

momentary

busi¬

selling,
some
bullish
technical
signs became visible. The fact is,

rate

into

great deal of discrim-

Ihofin£s and capitalized future earnZ the relative
?
ings, and the greater the length
to judge
impact of tax

in the job market in

schedules

with

the

was

employment during August, the
Department pointed out, showed that the hiring rate ex¬
ceeded the layoff rate by 21 per 1,000 workers at a time when
the layoff rate usually increases.

down

break
its parts,

There are a good many
stocks that have advanced a great
deal, and keep making new highs

hands to weak.J

SJT

factory

rates indicated

strong

reached

Labor

It said the

passed

from

?nrrr til2?u

last

market
find

time, if

time- of xination among various groups and

far back as 1955, and
others made their highs at vari-

dropped 9,700 to 241,500.

year
~

Initial

week.

same

distribution^^^M^^^H issues/

dining

claims for unemployment compensation,

the
we

Thus the decline
during 1957 was not especially
a surprise.
Many stocks began dc-

indicating new'
layoffs, in the week ended Sept. 27 totaled 275,400, down 11,200
from

Thus, if
15 to 1,
earnings

are

price changes.

/• At the

Stocks

lost

plants and to improvements in seasonal industries/1
New

ly:;

ness

compensation. A year ago, 1,181,900 workers, or 2.9% of those
eligible, claimed compensation benefits. This year's latest decline
was widespread, the department noted, with 42 states reporting
due

ever.

value

one

Now, add to this the
possibility that valuations will
change with earnings, and you

was

this

with 4.6% the previous week when 1,953,000 workers were drawing

was

inevitable than

summer

1957

•

fell

Much of the reduction

Its

been

of1955

mer

fewer claims.

paradox.

business is somewhat better, and
we think further inflation seems

over

Changes in earnings

the short side.
ket

from the sum-1

weeks,

has

way

•

con- 7

Labor

It is true that broadly speaking
the market's current anticipations
strong*
>,
further from' actualities and magnify this movement more.,
To look back
dlan |las. been the case
I bring up these points, because
a ways, J think
in many years. This is an inher- there seems to be too much of a
the p e r i o dcurrent risk that we can not
tendency to be excited about wide

drawing unemploy- 8

Department

center.

and agricultural implements.

market

as a gigantic seesaw.
The
fulcrum,' however, is- not in the

upon

side.

theles^i^con-GXP^Ca^^e ^ever"

compensation dropping 83,000 to 1,870,000. the tenth succes-/'

meiit

sive

stock

and

credit

f~. Tbe employment situation in the period ended Sept. 20

;

Unites active

■

tinued to improve with the number of workers

group

action and price level have

factors, according to the Federal Reserve Board.

rise for the second consecutive month in

current

been described

Following a six-month decline, consumer credit outstanding
about $30,000,000 to $33,300,000,000 in August, after adjust-

ment for seasonal

;

The

;

picture

large change

;

Discusses Points and Price
7 The market should be looked
■.

points is quite modest percentage-wise and the matter of
price might be more realistically viewed if adjusted for infla¬
tion. Finds rails are doing
well; and discerns recovery pros-;
pects in base metals, opportunities in electronics, motion

„

orders at the steel mills.

continued to be en¬
magazine on Monday

news

somewhat better than earlier in the year and that inflation is
as ever.
The broker observes that, a

the report by "Steel"
last that steel production will reach 25,000,000 ingot tons in the
fourth quarter, easily making it the best quarter of the year.; Its
forecast, it pointed out, is based on the rising tide of incoming
couraging

be underestimated.

can

Then, there is a great and vary>
ing difference in security valuation.
There is nothing absolute
about a price earnings ratio. 71
think
right now some of the
;
strength; in the market reflects a
f changing .valuation for some
•V'"' groups.
••
'•
!•" \. /77 ■ f ''

new
highs, active leaders and those issues
displaying the largest plus signs. The well known market
expert declares "today the trend is up and there is nothing

■

good

recommends selections should be made—not -Mindly—

from the tables of
Last week most

These

vary

Partner, E. F. Hutton & Company, New York City

fact.

expectations can
deal. They can be
partly realized, or fully realized,
or perhaps the expectations them-

By GERALD M. LOEB*

Index

we all know that
discount future ;expecta¬

stocks

Trade

Auto Production

expression than

For example,

Commodity Price Index
Food Price

~ ~

Carloadings

State of Trade

for a true value. In other
words,;
; the phrase "true value" itself is

and

Steel Production

►

The Commercial and Financial Chronicle

(1450)

savings

Standing Together as Bankers with
The Entire Banking Community

differ

banks

From

types of banks in the nature of operations, our services to the
public and our needs.
y / v *

Savings Banks Association of the State of New York
President, Buffalo Savings Bank, Buffalo, N. Y.

Washington

our

Ahead

Let's
make
sure
the
banking:
community understands that these

By KILGORE MACFARLANE, JR.*
President, The

vital

differences

what

are

Thursday, October 9, 1958

from—note-;

differ from, not differ/we
differ from others-

said

that I

w.th—how

...

enable

the Newso

By CARLISLE BARGERON

savings banks to lead in making
Mr. Eisenhower has got;a ,new
thrift safe and profitable for mil¬
lions of people, and home ovvneiv. word in his campaign vocabulary
ship possible for millions more; which will be pleasing to. the right
I say we require public aware- wing of the; party and may do

banks' spokesman suggests how the tax issue
recent ABA/convention "can be solved"; avers State

N. Y. savings

raised at

banking
public be educated about savings banks

Banking Law must be revised to permit all types of

advances

farlane advises bad debt

reserves

mitted to mutual savings

now

recent

tory

He asks savings bankers to V
merchandising savings.

that

good year.

the lead in proposing
that both types of banks, com¬
mercial banks and savings banks,

The'

pic¬
not

here to

con¬

our¬

selves on sue-

•

Legislative Action Demanded

ourselves—to

present

status—to set

look

weigh

our

course/

our

the

course

must and will be"

must

behind

leave

the

in the history of our in¬
dustry—unseemly—and inappro¬
priate to banking everywhere.

Asks Differences Be Settled
As president of your State

As¬

sociation, I sound the keynote of'
the entire banking industry of this
siu,te
lu
sviiie
its
differences—

and

—

time

either.

work

truly modern

Stale Banking Law.
We must have revisions

needed

,„

Public -Education Stressed

people

our

We must concentrate

telling
story to the public—through
press and the other media of

our

the

communications.

great State of New York.

All

also

must

certain

make

—

banking must expand, if it,
absolutely certain — that bankers
is to meet all the
banking needs
of our state's growing population. throughout the country truly un¬
Let

remember

we—the savings

that

was

banks—-who last'

derstand the

*An address
4ne

65th

Ur«,

Convention

Association
Lane

Placid,

the

Sav¬

State

Oct.

Y.,

and

state

our

na¬

local,

communities.

by Mr. Macfarlane before

Annual

Banks

tremendous role

play in the economies of the

tion,

ings

is :only'vbe

price, rise

average

Let's

make

sure-

that

states,

understands

every

liow

;

October 2, 1958

fire

under

the

sponsible.

7^'

mili-

now

ever

before.

spending:

was

re-

the

recession-taught
6 ?

than
•
<

iftHOne thirl

who

general

The Air Force is right

back

know

everybody's
j ot.
Government, same " way, he is now faced with consider
business, industry, labor, agricuk;being: discredited; wholly so, in industries are
tare
all of us
But so often,Uhe last two years of his
term./-;
what s everybody s job. turns out
- The decision to get up apd fight. ,f;Aln the last

the second

third

laS enipfc^unB^

^^9'
W ith

the

advent

0:
.
,
Social

Se-,

piivate pensionplans
insurance coverage
in annuities

cuiity
snc

750,000 Shares ^

Riddle

tory

for the saver's dollar.

■

/
^

otresses

the

minds

survive

cannot

inrut

•

which

the

with

undersigned may

the

Securities

from

hold

the

world

legally offer these Securities

laws

the

respective

States.

us—will

—

nation-

have

thrift

very

capital funds.

tomorrow

lies just
be

era

—

every

the1

dynamic, '•
history.
Science

60 Wall

Company, Inc.

St., New York 5, New York
HAnover
•

2-8397

Ft. Lauderdale, Fla.

•

Malone, N. Y.

will

the

are

finance

money

all

this?

homes, new industries,
ucts, new services?
From

savings

Due

Stock

and

With Daniel Reeves
1 (Special to the pinakciab chho;uci.£)

& Co:,

fated, with Daniel Reeves
South

398

Drive,

Beverly

mem-

bers of the New York and Pacific
Coast Stock Exchanges,

Loans and
Bank
Other

AS OF JUNE 23,

1958

$18,540,741.63
42,634,354.63

L___

—

—..

10,880,458 05

Bank

300,000.00
'

Discounts

56,144,674.84

;

95,475.98

Assets

.97,886.65

$128,693,591.78

DEPOSITS:
Demand

Total

Reserve

for Taxes,

$59,718,143.95
52,394,238.33

—

$112,112,382.28

Interest, etc._

3,352,830.11

2,550,000.00
7,450 000.00

Undivided
Total

Deposits

Surplus
,

Savings and Time Deposits

New

•

Securities

Reserve

Premises

Common

CONDITION

CITY, UTAH

Securities

Profits

and

Reserves.

Capital

Funds___L/_A—

FAST,

ACCURATE

3,228,379.39

—13,228,379.39

Total

$128,693,591.78

CORRESPONDENT

SERVICE

Member* Federal;

Deposit

Member

;

.BEVERLY HILLS, Calif.
Donald E. Duncan is now affili—

Banks

Other

Federal

CAPITAL:

page

LAKE

From

Government

Municipal

come

from

Continued

.-7-/

LIABILITIES

people's r
savings.
Savings,
and
savings
alone, do the job of making pos¬
sible the equipment that in "turn"
—

and

Total

prod¬

new

/*"..'

RESOURCES

step ahead;

minute.

suffer—

FIRST NATIONAL BANK
Cash

the most

are

ZIONS
SALT

technology which wall
of

thev

^S^^iTgri^^ ^

cut

were

STATEMENT

in"

advances

newr

....

Where

expenditures

time :

period of continuing high birth;
rate, with new nonfarm families
forming at a projected rate of:
1,000,000 a year.
from

James H. Price

ins himself when

been

sympathy,/ tightened up on
money and he went on
the air
with appeals to people to buy less,

stand at the very thres¬

that

growing
only

Administration

ofi

the

—

Not at the

great

world

exciting

the undersigned,

his job and'then, too,
people hato- to soo a man onjoy-*

his

people/ Military
We must, if we-

the Prospectus may be obtained

has

many

afford

when

world

fleeting

a changing'threw the country into a tailspin.
competitive race The Federal Reserve Board, with

the

is bringing us new products, whole
new
industries.
This country is

Price 65 < per

•;.■

sayings banks face

situation

require billions in

share)

per

•

ono score p8rticul3rly fe is
I suppose that never lh'his—

riding so high as this one/was in
creasingly devoted to playing the; the early part of last year and
credit game (do it now and pay threw it away. In an effort to conit later, whatever it may be)— trol what he called "inflation" he

The

(Par Value

corporate stocks—with the advent
of all these, and in a nation in-

science and

Common Stock

U. S. bonds and iii<» weak.

downgraded.

Airlines, Inc.

he lost the Congress.
>
an' item about his spending the
So his effectiveness this time* afternoon on the golf course; The
remains questionable, to say the '"impression 'griew that he"'was ne—
least.

similar^ typos ot policioSf—

investment

cannot

Coral Gables, Fla.

down

' '-v.

something

all

compliance

time

/ come

have wanted to cut down

4u„,.

NEW ISSUE

did. not

recession.;

con¬

long

It is to his credit that he would

Bar.geron

his Administration
attack.
For the

defending

•

are

that ' prices

for

Whose

today—and
tomorrow^—we mustv
change the minds of these people.

States

will? undoubtedly
record

-/.with the

costs

thrift is obsolete.
an offer to sell nor a solicitation of an offer to
buy these securities. The off er is made only by the Prospectus.

stitute
•

If mod-i

year.' But that means" which Ms

This announcement is neither

re-

Some

5,000,000- people are, still/ out of
work, and the; cost of living until
'/about a month ago continued up¬

within/a genera-,; first, time since he came to office
tion. The dollar earned today will-the"; Democrats are attackingJhim.
buy only 82 cents' worth in 1968, /.They are not mentioning his;name
doubling

banker, wherever he lives in these

1958.

Copies

turned to full- employment.

enedt|«:

....

of the

State Bankipg Law to permit all.
types of banking institutions to
the

action.

but

r^^(^^vSn^hoiJb^

•

serve

What

concerted

peal.

have

means

The

now

year. Mr. Eisenhowbe nobody s job.
r.J,must have been his own,,together er's devotion'to golf,hasn'.thelpe<3
Iherefoie, X wsnt to
vth&t; with th6 crowd
hihi;Bfly> .4 Asjion§> 3s
it is the job of us savings
bankers/cause it is not witjSjn.this - writer's going good the sneers of the Demrelations.
As we work with the; in
particular.
We should be7in' ■ knowledge that any candidate has ocrats were of no avail; The counrest of the banking community,
the front laoks of the. light against .called for help.
They, _>all.>-need trv felt that the President needed
we'must never relax in telling inflation. It is our
obligation.'Our-herp, but it has not barred to
our own^storijj—the savings banks
k.ar^5.s WAere.
founded to encourage, them that he can be of any help, came unemployed the resentment
story—to the public.
t-irift.
And -tarift is the way to.> He-' endorsed ■ Senator
Payne of against'his seeming always to be
As
never
before
we
require be«t inflation.
'
:
wlWaine but the latter went down to/,:Qj-^ the
golf course became wide—
public awareness, understanding
Certainly
we
face
obstacles, defeat. He barely
got"Re^ubli- '/spread: They wbuld read in the
and appreciation of the needs v/e
Massive
and
often
discouiaging can Congress ■ when ■'l7e,, i^atl the
newspapers every day ahout an—
serve and the services we perforin
obstacles.
Ihe need to save
in,first •.time and, although xvinriing other olartt closincr down and in
for all of the people of New York
people's minds—is greatly dimin-. hands r.down -himself-th^
second, the same paper there would be
State.
'
~
■

better

studies—and

this Convention when I call upon1

legislation.:

•Apart of that concerted action
an aggressive, carefully planned
and continuing program of public

re¬

unprece¬

—

dented

or
imagined
together to gain

•

any

wards.? It

Carlisle

warning.

behind

unpleasantness

real

for

now

one.

further

need

direct, forthright and determined

cent

to meet the demand.

at this rate.

Studies have been made. There's

for the future.

That

resources

What is lacking is the

•—

was

g°;|W^ now. Msaitem* a».R«put>-

We have

We have the demand.

spectre,
threatens to go

1988.

was

thing, ithe

one

billion

$12

Railway ^and bus fateh are Borate government was ^erithreating. Hospitalization costs .are in-,
creasing
Auto insurance is
.sqale;One possible explanation is
up
Rents and utilities are on the .Leans can/get together
foiind in the fact; that the Air
rise. Recreation costs are soaring,
It', is understandable/:.too//that' Force had exceeded its
budget by
Taxes, of course,; are Wr / ' ? ^tlie " PresidPrTtMiS'
increasing1;; nis $4 billion., This is said to have
But not much, some say?' True, activity ih the campaign. He will
incensed him' so that he wanted
—the

one

any

for

inflation

from

Macfarlane, Jr.

We are here to take a serious,

cess.

ple of our state want and need
improved banking services—not

segment of the in¬
dustry, but from the whole bank¬
ing business.

ture.

gratulate

will

give their full and wholehearted
in resolving these indus¬
try problems.
It is obvious today that the peo¬

our

are

all sides

hoped—on

support

in the broad

—that the commercial banks

place

banking

our

and

role

rightful

face,

our col¬
logues in the
banking fra¬
ternity af-

cago,

firmed

spectre

took

year

there

not

instead of//
modern Re-;:
savings banks which make up our
that Once again
publicanism.
;
Association '/have
grown
in de¬
on the prowl throughout the land.
7 TJl1 s
posits, in earnings, and in divi¬ join together to advance the cause
Costs are going up.7 Some" re- tend /to bring..
of all banking.
dends paid to
member when porterhouse, steak ; the party back y
ourdepositors.
Now, once again, let us affirm was 45 cents a
pound. That- was /together; a n d
Only a week
our belief in this course and our
not in the dim and distant past.jls a valid apago,
at Chi¬
determination to follow it through.
We have had

deficit of

/recession

and

is anticipated for this year.
The
/drop came with such suddenness

„

per-

banks.

"the hard sell" in

use

reserve

never

within

Mr. Macbe increased for all types of

commercial banks rather than tear down the
r

before—because the
•"
unseemly disturbances 1
T 5r. >s
the banking industry rep- '
resent only
a
tiny part of the * •
\ w <?
?
situation we face as savings bank^m9derate,
ers in
a changing America
and-/a
is tQ camchanging world.
•
Pal«n fo.r
"V
y
'' m ode rate
Spectre of Inflation
I
government
ness

technology just ahead.

and

science

The result was that he had to
increase spending ;this year to the
highest peacetime budget in his¬

institutions; and urges
and need for general thrift to help make possible great new

drastically. In no time at all millions Were thrown out of'work;

Insurance. Corporation

Federal

Reserve

■

...rl
■

Volume 188

Number 5784

The Commercial and Financial Chronicle

...

X1451)

increase-, in
.country
By J. G. JIMENEZ*

The gloom in the oil industry is lifting

months has

I..

that the year will register

;

-r

try's current
does not

■■■

■

;;

..*1.......*
man,; in these

ask ;an

oil

V-:•

market;:

conditions;

op-

1959

But

give

the,out-;

look

f
•-

for

year-

ahead

when

he-is"

however,-1- it

trouble

keep-

ingi up with'
j what is going i on
today; -"-isL
asking him to
be

combina-

tion j
teller j

;

sooth'oracle,

Jimenez

witch-doctor.
I

assure

\ those and

you,

byr. normak usage

far

from

priCeSj

,In

since I

with

and

;

its,

will

taken

refinery

the

several

the

meet

growth expected in

Outlook

first,

,..;• t

will

structure

facts

the

that

much

ahead.
to leave

want

the

approaching

are

dorf

easy

elected

confident .that in 1959, and

several " years

barring
crises

unusual

thereafter. —■
international

Demand is basic to sales.

first

the

spite of

half

course,

decline

partially

net

income, of
reflects current

adverse

factors

trated by: *'

High

inventories

and '

v.^r

Slackened

leum products in the first half.

domestic
Drastically: reduced
crude
oil
production. : For >iex¬
ample, Texas was restricted to 56
producing days in the first half
as

same

the

end

compared to 96 days in
period for 1957. ^

Federal

recent

•'

that'the

•

the decline.

there is

pick -up.-'And
believbhihSt

Elected to

Chairman

BERNARD

half

.with the period in

are

compared

1957 when the

demand for crude oil and products

Conference,

New. York
♦

the

group's

for

three-

Fulkerson, Jr. of

•

STUART

le'um

demand for

1958 should
crease

the

record

United

Liability of customers

crease

the

Some
are:

;

•

CHARLES D. DICKEY •••'

CARL J.

GILBERT

seasonal

demand

for

Accounts

will

payable,

reserve

9,980,629

for taxes, etc.

credi-t issued,

•

Surplus..
C. JOSEPHS

•

Undivided

Chairman

••

S. LAMONT

30,599,488

*44 #♦«

Capital—350,000 shares

•-

35,000,000

'35,000,000

......................

•

17,158,722

profits....:

$918,535,476

Vice-Chairman
United

Stales Government

the above statement

R. C. LEFFING WELL

secure

are

public monies

securities carried at $52,051,788 in
pledged to qualify for fiduciary powers, to
required by law, and for .other purposes.

L. F. McCOLLUM
President

Continental Oil Company

Member Federal Reserve
Member Federal

JOHN M. MEYER, JR.

System

Deposit Insurance Corporation

Senior Vice-President

JUNIUS
ALFRED

S. MORGAN

P. SLOAN, JR.

MORGAN $

CIE. INCORPORATED

If, Place Yendome, Paris, France

General Motors Corporation

domestic
GEORGE WHITNEY
HENRY S.

contribute

Increased domestic demand for

gasoline of 3 to 4%. The expected

WIN GATE

President, The International
Nickel Company

in motor vehicle regis¬

which

34,077,982

Acceptances outstanding and letters of

Cie. Incorporated

Morgan

THOMAS

which we experience
during the winter months, will be
commencing next month.
We can expect a 4%
increase
year

726,609,637

New York Life Insurance Company

heating oil,

trations

$ 30,109,018

$790,796,637

Director

■■

recently ad¬

increase

Honorary Chairman

sharp

LIABILITIES

Official cheeks outstanding

N.D.JAY

'i
usual

the

and wholesale—have

30,574,488

Senior Vice-President

DEVEREUX

letters

Deposits: U, S, Government

Underlying Factors
Since

$918,535,476

LONG STREET HINT ON

other bright spots
•,

6,135,000

3,000,000

The Gillette Company

expected to in¬

Co.

Corporation.

of credit and acceptances.

exclusive of the

States, is
7 to 8%.

4,283,578
2,100,000

R. DEUPREE

Chairman

5.%:in the domestic demand for,
produets.rln addition, the free
—

-•

■

All other
.•

will

world demand

22,268,920

.362,309,060

Chairman, Executive Committee

currently f,« estimating
show a gain of 4

are

that, 1959
oil

»-#-

Banking house............*

f 957.:,While :. this
unfavorably,^ with
an
annual increase fqr the

246,582,012

Limited, Morgan $ Cie. Incorporated,

Chairman

entire year
to 2% in¬

•

$186,615,861

,..

secufdtiesJViv.+^f.',Y

Investments in Morgan Grenfell

The Procter cs° Gamble Company

compares
average

Q'v.

Stock of the Federal Reserve Bank.

W. CRAG IN

RICHARD

tover

Senior Vice-President

six/months, domestic petro-

first

from banks.,.,

Accrued interest> accounts receivable, etc

S. CARTER

Chairman
The B. F. Goodrich Company

;

September 30, 1958

JOHN L. COLLYER

'to

reason

■

municipal bonds and notes.,.. v54,666,557

■and 15 Broad Street

gains each month for the rest of
year. In fact, despite a poor

next
iT*An address Jtty Mr.- Jimenez .before the
National
Industrial
Conference
Board's

Sixth .Marketing
City. : • '

Loeb,* Rhoades &

Co. and W. Nfeal

Loans and bills purchased..........

Morgan £3* Cie. Incorporated

this

The

becomes
more
by the fact that the

results

Carl M.

son

Other bonds and securities
*

•; CHARLES S. CHEST ON

will' experience

decrease

•

of Canada, Limited

was

;

terms were: J. Howard Carl¬

year

assets

hand and due

State and

Chairman

011

United States Gavemment

C. CABOT

PAUL

■

vanced.

The

serve

.'i.-i t*..

•

Slate Street Investment Corporation

pronounced

American Machine & Foundry Company

natural gas have had

serious ef-

CARTER L. BURGESS
President

restrictions on dmports of
foreign crude oil and unfinished
products and regulatory measures
and delays affecting the price, of
a

N ational

York,

executive-committee

•;

.'v!'

Cash

been

Bechtel Corporalioit

extremely low prices
reached in February, 1958, petro¬
leum prices
at all levels—retail

President

..."

the

Statement of Condition

months has

Govern¬

ment

feet.

New

President

STEPHEN D. BECHTEL

.In the oil industry, the past few.
seen domestic demand

Also,

ARTHUR M. ANDERSON

was

the ;■ First

Bank

NEW YORK

•

President

P.MORGAN &

of 1958

Inc.,;

been

activity in the past few months
has increased, signalling, we hope,

conse-

petro¬

Halsey Cook, Vice-

INCORPORATED
*

the

demand -for.

Co.,

II. P. DAYISON

declining

Jive-year period, 1952-1957 of 4%, •
illus-, there vis; reason for
j optimism
for.
/ ""r • oil in 1959.

Chairman

...

-s

•

quent low prices,

vice-chairman

will Bankers Trust Company.

/.
HENRY C. ALEXANDER

recessionary conditions and other
additional

Blyth

record high volume
of domestic sales!
'
f
This

ex-officib

DIRECTORS

phase of the recession and overall

1957—this

that- is free and competitive

Corporation, who

year

committee.

named 'secretary-treasurer.

the domestic economy—it will be
a case of "hard sell"
and a tight

Cannon,

director of

group, and A.

City

abnormal .fluctuations in

A;
a

Glassmeyer, Vice-Presi¬

profit.
am

and

one

Edward
dent

for

jf the demand materializes,»

serve

executive

any organization to ob¬
tain its share of the market at a

annual

Mr. McGee

Francis

First Boston

the

path, for

f Astoria Hotel.

will

Group,

Association
38th

meeting held at the Wal¬

Vice-President

opinion
seller's

the

Succeeds

also

Howevpr, I The

years

but

America,

dihndr

given ,you are
only indicative of a healthier

don't

country,
industrv

Investment Bankers

-I've

1959

Group

McGee, partner of R.
'& Co., was elected

chairman of the New York

business climate in

Demand

put

dustry, with oil companies show¬
ing a sharp drop in earnings,
averaging 30 to 40% as compared
with

.■'

.vv\

■.

note

th?yoil in-

first

its financial

Cushman

W. Pressprich

in this '*

gloom,' fortunately, is
lifting, the surpluses liquidating,and the oil
industry—just as
business in general, — Seems to
have
weathered
the
declining

The first six months of this year
have been gloomy for

Of IBA N. Y.

ab-"-

Brighter Outlook Ahead

;
Now,'let's look at some facts in
i the oil business today.'^7 '

the

fantastic sum/

surpluses :vv

these

has

result

But

and

Demand

You

cost-price ;v-squeeze >i-^has ; become
extremely severe in our industry.

Elements

Supplyy- with resultant effects

earnings.

sur-

The

elements:

basic

* '

that j Gr natural gas, and

y0u;—have

Construction. J

dealing

quantity today
that
places
me

certainly
pressure!

—

'•rr/;..^vv;Trahsportation

^viewing
the
outlook .for
1959 as-it applies-to the petroleum
industry, we. should consider its

that

not

substantial

this

It's:

research

Clubman McGee Chrn.

industry's " current""gross

assets.

The

years,

much

the

tomorrow.

strong enough and flex¬
ible enough to accomplish these
objectives. *

crisis,>;-v
were v '' Long Range Considerations

■

Materials--' i/-'v-

fitting ^de¬

'I'm V surely

Basic

;

not

Employbe Benefits

' /•''

adequate
be

capacity
of requirements.

Labor n

■i

could

fate 0f

the

ex-

unknown

under

will

whether it touches farm

confronted with increased costs of:

is.

•"-.Tsr:V

scription.

maintain

15.0%

underwrite

hew
and
better products
and processes for the demands of

esti¬

and it ppderlines, more than my-.
thing else, why the industry must
continue to earn reasonable prof¬

re¬

with

pace

the

fixed

least, the oil industry wilt be
kept mighty busy supplying the

"X" is the' unknown quari-

Yet/-maybe this is

♦"

and

giant

our

keep

This

excess

For

gasolines and dissince-1950. ; '
Y,v v:

price level

and

levels.

resulted in price disturbances and

fact, I've disliked being classified

pressure.

fuels

Yy' ■
y - a < deteriorationof our ^markets y
am' none.of 0during .the past year to the lowest •

n> "sptirt" t

;

stride

created

which

filiates

pert:

demand

at^qr\ _ab-

and

sorbed

being an
expert on what the oil business
can expect in .1959.
As a matter of
am

-■

pluses

for

cause

hemisphere.

even

a? an; expert in; any thing
was fold the definition of

this

Liquidationsof vthese

prophet, jClairvoyant, ,:and

■*

energy;

^estimated

was

normal --level

fortune

assure

oil

industry will
$77 billion in capital
expenditures in the United States.

industrial

further

demand

decade

the

some

flow of crude from the Middle *33% increase in industrial activity control of expenditures in order
| East via the Suez would ' take-rwili be received by 1963.
to provide our stockholders with
| longer to restore to normal than . Thege few examples alone in. a fair return on their investments.
i
'•.dicatejhat oil requirements are
J am also. confident that a fi¬
j domestic -produeticm-a d re^nqry . going to go up substantially. In nancially sound industry and one
l -runs were niai tmned

{

that

development that will bring

about

//(

hva

■r

/the

the

make

alleviate.jthel-;We are told that our nation's
threatened shortages -of petroleum- population will be increased anenergy in most of the Free World
ypther; 18 million by 1965; 14 milparticularly Etirdpe. An out-' Hon more motor vehicles will be
standing job was performed of on' the
road;
12 million' more
supplying needed oil.- Originally;homes will be needing"fuel oil

■■■■■

;

should

and

of -J/3

and

market and that there is

Canal. -During

Suez

to: have:; him -v

mated

increase

be-able to carry on the search for
oik to assure adequate supplies,

present activity.

stock

w•

day,

our

over

This is mQre than

runs
.

industry will? have-to come
with another 3 million barrels
oil

fineries to increase their crude oil

increase

ready by f the;: middle; ofSeptern-. our' ^^phiesfie ^producer s
ber,
1958,: is ".calle'd
upon' to

the-

year ! up

6 % "—

lubricants and

;

abnormal

increased

Gourse,

iricreased

•

experienced

this

production—expected to be about

next decade. Cautions this

for expenditure control and reasonable profits.

4 certainly
timistic;

year so ;

seller's market at all and stresses
necessity

hectic'^aysfto" have aforecast

fixed assets—in

gross

•

;

we.r

year.,

mean

.1.
,lo

believe ihat

need to supply one-third more barrels of oil and for capital
investment spending of $77 billion in U.S.A.—150% of indus-

■

•

In pointing this out, the
reason

y2% gain over 1957^Looking
Mr. Jimenez anticipates a 4 to 5% increase in domestic oil
demand, a 7-8% rise in free world demand—exclusive of the U.S.A; For the long range he envisions
ahead to next

{
-

since the past few

will experience gains each .month for the rest of this

...

•

domestic pick up.

seen

Tidewater executive states there is

..<■

population

177 million

causing folks to turn that thermo¬
stat up just a bit higher to
keep
the-little newcomers warm!

Vice-President, i Tide water Oil Co.
Y

1.7% -—"will add that many
consumers
of oil products,

—•

MORGAN GRENFELL $ CO. LIMITED
?, Great Winchester Street, London E. C. 2, England

The Commercial and Financial Chronicle

Co., Inc., 30 Broad,
available is a report on

Street, New York 4, N. Y. Also
Billups Eastern Petroleum Co.

Dealer-Broker Investment

New York 5,

».

(«

■

•'

•

mend interested parties

Co., 31

Homsey

Milk

Coal.

Commodity Exchange Silver
Anniversary Dinner at the Hotel

Co., 15 Broad Street, New York 5, N. Y.
Corporation—Report—Loewi & Co. Incor¬

the following literature:

Astor.

East Mason Street, Milwaukee 2, Wis. Also ,"
available is a report on Time Incorporated.
,
Clark Equipment Company—Analysis—Schweickart & Co., 29
porated,

possible role of lithium in a
etc.—Atomic Development
30th Street, N. W., Washington

better No. 41—Report on

fusion

Mutual' Fund

Inc.,

device,

1033

>;'■ A';v7:-:7/':''7/7'777777/
Bank Stocks—Discussion in October Investment Letter—J. R.
Willis ton & Beane, 115 Broadway, New York 6, N. Y.
>
Barnham View—Monthly investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

'-■

able is current Foreign Letter.

National Bank in Dallas,

Fire

Pine Street, New

Street, San Antonio 5, Texas.
Coast Leaseholds, Inc.—Report—Leason & Co., Inc., 39
South La Salle Street, Chicago 3, 111. Also available are re¬
ports on Leece Neville Co., Longren Aircraft Co., Topp Industries, Craig Systems, Yuba Consolidated and Husky Oil of
Wyoming.' '
,7.7
'7 7
;
Ilecht Company—Analysis—Reynolds & Co., 120 Broadway,
New York 5, N. Y. Also available are analyses of General

y'~
i

•

^N. Y. ■
.
•
public Utility Common Stocks—Comparative figures—G. A.
HSaxton &r Co., Inc., 52 Wall Street, New York 5, N. Y.
Real Estate Stock Index—Comparative figures—Amott, Baker
&

7 7:

Co., Inc., 150 Broadway, New York 38, N. Y.

International
Ill

••

data

are

Also in the

5, N. Y.

Co.,

General

■-

Wall

Airlines

Inc.—Review—John

Lewis

same

Digest is

Street, New York 5, N. Y.
'
77..7'..77
Socony Mobil Oil Company—Review—H. Hentz & Co., 72 Wall *
Street, New York 5, N. Y. Also available is a report 011
Combustion Engineering
.

Sterling Drug, Inc.—Analysis—E. F. Hutton & Co., 61 Broad¬
way, New York 6, N. Y.
7
Studebaker Packard vs; Botany Mills—Comparative report—
,

Lerner & Co., 10 Post

New York

data

-'Hotel. vv

Hilton
;77 v 7

meeting at the

7-7(7''

Nov. 2-5,1959

Vj- -

(Boca Raton, Fla.)

National

Security Traders Asso;7, ciation Annual Convention at
the Boca Raton Club.
,* * ■■■'■

Waller Meisloiw With

Office Square, Boston 9, Mass.

5, N. Y.

Co., 52 Wall Street,

Also available in the

same

circular

are

United Merchants and Manufacturers and Dan River

Securities Trading Corp.
JERSEY

CITY, N. J,—Walter E.
has
joined
Securities
Corp.,
One
Exchange
Place, as Manager Of Sales De¬
partment. He was formerly with
Bache & Co., New York City, fpr
many years.
Mr. Meislohn, will
represent Securities Trading in
Metropolitan New Jersey as well
Meislohn

Trading

in the New York area.

McLeod, Young, Weir
New York Office
•

Young,

McLeod,

Weir,

Incor¬

porated, dealers in Canadian se¬
curities, announce the opening of
a
new
office at 15 Broad Street,

City, under" the direc¬
George
C. MacDonald,

New York

tion

President.

Mills.

American Motors

Corp.—Memorandum—Oppenheimer & Co.,
Broad Street, New York 4, N. Y.

Signal Oil & Gas Co. and Hancock Oil Co. :
Company, Inc.—-Bulletin—De Witt Conklin

Union Pacific—Data—Herbert E. Stern &

Express

Co.,

analysis of the current Japanese economic situation.
Raytheon Manufacturing Company — Analysis-—Baker, Weeks
& Co., 1 Wall Street, New York 5, N. Y.
Salem-Brosius, Inc.—Analysis—Blair & Co., Inc., 20 Broad

same

Cn.~JVfeinorandum—Emanuel, Deetjen
Co., 120 Broadway, New York 5, N. Y.
25

7t Broadway, New York 6, N. Y. Also in the

Street, New York 5, N. Y.

American

is a report

•

Motors

Co.,

Noyes

of. Amer¬

Association

ica annual

Corp., General Precision Equipment Corp., General Railway
Signal Co. and Southern Natural Gas Co.
American

Corp.—Memorandum—Hemphill,

;

Antonio,Tex.)
Group of Investment

Texas

Organization, 120 Broadway, New York 5, N. Y,
7
77"-7
Vulcanized Fibre Company—Report—Harris, Upham
& Co., 120 Broadway, New York 5, N. Y. Also available is
an analysis of Argo Oil Corp. and the current issue of the
"Market Review" with suggested portfolios in various cate¬
gories.
: 1
:■ 7
' / ; ' 7'7 ;.
Nippon Gas Chemical Industries—Analysis in current issue of
"Monthly Stock Digest" — Nomura Securities Co., Ltd., 61 '

General Electric

dorf Astoria.

April 1-3, 1959 (San

National

circular

available

of New

York annual dinner at the Wal¬

Bankers

Also

(New York City).

Dec. 10, 1958

Morrison Knudsen

Petroleum—Data—Oppenheimer, Vanden Broeck &

Co., 120 Broadway, New York

convention

annual

America

Investment Association

Morris,

15 Broad Street, New York 5, N. Y.
Kern County Land Co.—Analysis—Dean,: Witter & Co., 45
7, Montgomery Street, San Francisco 6, Calif. Also available

*
*

Company and Wallace

.......

•

Roth

Kayser

Monthly Supplement; $1—O-T-C Publishing
Company, 14-C Elm Street,- Morristown, N. J.
TJ. S. Treasury Issues—Table of. comparative yields—Aubrey
G. Lanston & Co. Inc., 20 Broad Street, New York 5, N. Y.
:

vember issues of

Amerada

New'York

(Miami

1958

at the Americana Hotel.

Mining, Corporation—Reviewv-Ira Haupt & Co.,

Broadway,

Beach, Fla.)
Investment Bankers Association

■

Three Stocks for Appreciation—Data on Vanadium Corporation

Harvester,/Philip

30-Dec.

Nov.

1
7
7' * "7V.
7
'.77
Kalamazoo Vegetable Parchment Company r—. Analysis-MYilliam Blair & Co., 135 South La Salle Street, Chicago 3, 111.

and Tiernan—BacheA-Co;; 36 Wall Street, New York 5, N. Y.
/Traders Graphic—Over. the. counter stock charges—including
analytical articles on 24 interesting issues — $9 per issue;
one year subscription (4 quarterly editions and 12 monthly
supplements) $SO—Trial subscription toy-October and No¬

International

6, N.
review of ACF' Wrigley Stores/.,,

j General Finance, Walter E. Heller and Pacific Finance—
i Thomson &r McKinnon,
11 Wall Street, New York 5, N. Y.
Also available is a report on Midland Ross Corporation.
/
of America, Pittsburgh Metallurgical

Corp.,

Telephone

Party at the Antlers Restaurant.

Inc., and Anderson Prichard Oil Corp.

Sales Finance Companies—Survey with particular reference to
Associates lnvestment, C. I. T. Financial, Commercial Credit,

Security Traders Association of
York
Annual
Beefsteak

(New York City)

New

Hammill

Gulf

; pari son between the listed industrial stocks used in the Dow•*. Jones Averages and the 35 over-the-counter industrial stocks
r used in the National Quotation Bureau Averages, both as to
yield and market performance over a 19-year period —
National Quotation Bureau, Inc.,.46.Front .Street, New York»i

tion at the Hotel Sherman.

Nov. 10, 1958

Co., 14 Wall Street, New York 5, N. Y. Also available, is a
report on II. I. Thomson Fiber Glass Co.
Co., 201 North St. Marys

ment Clubs 8th annual conven¬

Frito Co.—Memorandum.—Dittmar &

Japanese Stocks—Current information — Yamaichi Securities 7
Cnmpanv of New York, Inc., Ill Broadway, New York 7, 7
New York.
-New York City Banks—Comparative figures on ten largest
banks—Bankers Trust Company, Bond Department, 16 Wall
Street, New York 15, N. Y.
Over-the-Couuter Index—Folder showing an up-to-date com-

7 .7

(Chicago, HI.)
National Association of Invest¬

Pierre.
Nov. 7-8, 1958

York 5, N. Y.

Franklin Life Insurance Company—Report—Shearson,

•

Co., 115 Broadway, New York 6, N. Y.
Flintkote—Comprehensive analysis—Stanley Heller & Co., 30

Co., Inc., 1 Wall Street, New York 5, N. Y. Also available
bulletin on Life Insurance Companies.
Impact of Institutionalization on Investment Policy—Discussion
—Eastman Dillon/Union Secruities & Co., 15 Broad Street,
New York 5, N. Y.
7-/7v\/777777'777;7:/
77/
Inflation—Comparison of handling of inflationary threat by
England and the; United States—New York Hanseatic Corp.,
120 Broadway, New York 5, N. Y.
v-

New York annual cocktail

-7//

Security Traders Association, of
party
and dinner dance at the Hotel

Falconbridge Nickel Mines Ltd.—Memorandum—Goodbody &

777

;v^

leum.

Street, Toronto 1, Canada.
Casualty Insurance Companies—Bulletin—A. M. Kidder

ders Limited, 55 Yonge

(New York City)

Oct. 25, 1958

'•

.•

Security Dealers Asso¬

Lido Biltmore Club.

Milwaukee

.f 7

C '■

(Sarasota, Fla.)

ciation annual convention at the

1401 Main Street, Dallas 2, Texas. /
Analysis—Annett & Co., 335 Bay

7.7

Florida

■

Co., 207 East Michigan Street, Milwaukee 2, Wis. Also avail¬
able are reports on Bank of America, Shulton, Inc., Weyer¬
haeuser Timber Co., Phillips Lam and Royal Dutch Petro¬

Conversion Loan of 1958—Second of two articles—E. M. Saun¬

Donnelley

•'./■ 77

Oct. 16-18,1958

—

1, Ont., Canada. 77:77'/•'7/
Sons Company—Report—The

Street, Toronto
R.

Inc.,

Capital Goods Needs—Study—David L. Babson and Co.,
7' 77 89 Broad Street, Boston 10, Mass.

Petroleum Limited

Dome

•

225

Broadway, New York 6, N. Y. .'V;
Colleges of State of Texas Constitutional Tax Bonds—Discus¬
sion in October Bond Letter—Bond Department, The First

7, D.€.

(New York City)

Oct. 9, 1958

Loeb &

Brooklyn Union Gas Company—Analysis—Newburger,
Ceco Steel Productcs

thermo-nuclear

Investment <rield

•'

understood that the firms mentioned will be pleased

Pont,

Street, Boston 9, Mass. Also in the same circular are data on
Great Northern Paper, Texas Company and West Kentucky

Recommendations & Literature
•

EVENTS

N. Y.

Brass—Data—du

Bridgeport

COMING

Aviation—Analysis—Halle & Stieglitz, 52 Wall Street,

Bendix

..Thursday, October 9, 1958

O'Neill &

Inc.—Report—George,

Avien,

■

(1452)

Williston Basin Oil Field—Data—William F. Ferris &

Co., 522

Joins J. Earth

Fifth Avenue, New York 36, N. Y.

(Special to The Financial Chronicle)

SAN

Joins Denault Staff

Coburn, Middlebrook Adds
For

financial institutions

(Special to The Financial Chronicle)

HARTFORD^

(Special to The Financial Chronicle)

Conn.—Sydney M.

SAN

Libby and William H. Tirkot have

Current trading favorites

been added to the staff of Coburn

Middlebrook, Incorporated, 100

Trumbull Street.

Acoustica

FRANCISCO,

Calif. —C.

Joseph

Mitchell

Denault &

Co., Russ Building. He

was

now

with

Co., 404 Mont¬
members of the

Street,

gomery

Exchanges.

in the past with Sutro & Co.

L. A.

Huey Co. Adds

(Special to The Financial Chronicle)

Cross Company

LOOKING FOR THE UNUSUAL

♦

Fischer & Porter Co.

Laboratory for Electronics

Beautifully Bound Set of

Commercial & Financial Chronicles, 1920-1945

Texas Eastern Transmission

Bought

Barth

with J.

New York and Pacific Coast Stock

Associates, Inc.

Delhi Taylor

FRANCISCO, Calif.—John

C. Coleman has become connected

and

Bobbe

have

been

staff of L. A.

Huey

added to the

Kurtz

Co., U. S. National Bank Building.

H. B.

Thompson Opens:

SHREVEPORT, La.—Harold B.
Thompson is conducting a securi¬

FOR SALE

Sold

ties business

from offices at 3109

Alexander.

Troster, Singer & Co.
,

Members New York Security Dealers Association
74

Available in New York City—Write or

Joins

...

Kennedy-Peterson

(Special to The Financial Chronicle)
-

Trinity Place, New York 6, N. Y.

Hteever 2-2100

DENVER, Colo. —Walker Car¬
penter, Samuel M. Diamond, Ed¬
ward D. Garber, Helen Kilgore,

Teletype NY 1-376-377-378

Phone REctor 2-9570

Edwin L. Beck

HARTFORD, Conn.—Wallace I.
Frosch has become affiliated with

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

Kennedy-Peterson, Inc^ 75 Pearl
Street.

was

previously

Coburn & Middlebrook Inc.

with

Volume 188

Number 5784

The Commercial and Financial Chronicle

...

(1453)
802,000

Big Ryder

from $12,890,000 in 1952,
Ryder entered this field.
Competition is more acute in the

the Road

Enterprise Economist

not

hauler, Ryder competes not only lion
An

with

appraisal of the expansion and profitability of a trucking
displayed remarkable growth and will
gross over $50 million in 1958—Ryder System, Inc.

investments
tion
.to

talk

1929

1869

From

land

securities

fversation,
i

the

with

—

ondary conn

charges

above,

and

best

America

American.

'and

re¬

placement,

ample.

and

atten¬

trucks;

few

b old

—

" :7

•

Ira

were

Cobieifti

enough

funds

that

would

otherwise

imagine that long haul trucking tied up in a truck fleet. Smart
might one day create fierce com¬ managements in such lines as bak¬
petition for railway lines; and that eries, dairies and soft
drinks, etc.,
trucking corporations would at¬ take the view that they can make
tain

great
stature,
with
their
equities eagerly sought by sophis¬
ticated investors.

investing in, and
expanding, their own production
facilities, than they can from an

the

are

road

million

today

them

for

and,

haul

truck

lines

The

started

long

prietorships, delayed

can

Accounting

truck

and

leasing,
be deducted entirely

other

routes.

However, it maintains its profit¬
on competitive rates by
economies stemming from an in¬
tegrated
route
system, modern

In both truck rentals
mon

carrier operations,

and

future.

has

its

not

takes

end. it, has

tween

flat

Jacksonville and

Stockholders

Inc.,

have

fared

cars

SAN
Foster

maintain garage and repair
or

staff of mechanics.

rolling equipment, and
difficulty of financing same; fleet is kept clean and attractive
by the narrow overcrowded inter¬ in appearance, < and efficient in
city arteries; by slow public ac¬ operation under the Ryder Sys¬
ceptance; by relatively small tem.
capacity of trucks; incomplete in-,
As a result of these definite ad¬

Lundborg

FRANCISCO,
L.

Hibbard

Calif.

—

Malcolm

with

now

nominated

some Street, members of the New
York and Pacific Coast Stock Ex¬

Board

changes.

America

...

F. Roberts

Bankers

for

Miami.

SAN

FRANCISCO,

Marshall

Ryder System,
well.
The first

Sumida

Calif.
has

—

vantages just ticked off, Ryder
System rentals have been growing

roads in respect to solicitation and
retention of customer

by leaps and bounds; and yet the
surface of this profitable business
has hardly been scratched since

power

patronage—
especially big customers.

Today,

than

less

associated with Nikko Kasai Secu¬

rities

Company,

Street.
with

H. L. Jamieson

low of 11% to the present quota¬
tion of around 35.
Considerable

2165

Mr. Sumida

Mitchell

Two With

California

formerly

was

Curtis

Group to
April 1959

Meet

Co.

and

SAN

Texas

ANTONIO,

Shuman, Agnew

San Antonio.
;

At $1 per share regu¬

FRANCISCO,

John C. McCulloch
E.

lar dividend has been

SAN

Calif.

—

;
•

...

however, with super
highways galore, king-size trucl

tered in 1957

trailer

lease.

units

chew

the

inter¬

(Special to The Financial Chronicle)

Theiss, Jr. have become affili¬

paid for the
past three years but size and up¬
trend in earnings would suggest

ated with Shuman, Agnew & Co.,
155 Sansome Street, members of

Russell K. Tanner has been added

the

to the staff of

that

Stock Exchanges.

this

could

increased

New

York

and

Pacific

Coast

SAN

FRANCISCO,

Montgomery

Calif.

city miles at high speed, and the
business has
increasingly become
concentrated'among big interstate
motor
scale

carriers

sectional

doing

and,

large
some in¬
a

stances, even a national business.
Among these sizable and burgeon¬
ing long-haulers is the company
selected

for review

today—Ryder

System, Inc.
owned, and

second hand

few hundred

dollars

borrowed, by one James
A. Ryder, 24 years ago.
At the
time, this gentleman, now Board
Chairman and President, was only
20 years

old. For the first 18

years

the Ryder enterprise was confined
to the truck rental business; so
much

that today Ryder System,

Inc.

the- second

largest

truck

you

might ask,

make lease contracts

Street.,;,

itself?

(1)

The

141,113 Shares

Addressograph - Multigr a

Ryder

can

attractive

answer

volume

trally

Corporation
•#

(2)
(3)

garages,

wholesale

($5 Par Value)

effi¬

from

The

re¬

pumped on
premises. Mass purchase of sup¬
plies, spare parts and accessories

Company is extending to the holders of its Common Stock the right,
by transferable Subscription Warrants, to subscribe for the shares
named above, all as more fully set forth in the Prospectus.

best discounts; and order¬
ing a whole fleet of trucks results
a far better
price than smaller
or single unit purchases.
Centrally
assure

Subscription Price $62.50

roof with

the

same

of Jacksonville. Fla. and thus

common

the

rentals

with

carrier over-the-road op¬

erations,
in

truck

ranking

country.

ninth
largest
All of which

me¬

For 1957, trucK rentals grossed
$20,461,000 and provided $1,834,000

transportation
in

some

organization own¬
10,000 trucks, operating,

1957, over 155 million miles of

road; and serving a territory
covering 26 states and two Cana¬
dian provinces.
Since the truck

first

came

leasing business
history,

company
about it first.

units.

remarkable
nual

ing

income

net

leased

makes

Ryder System. Inc. (mainly
holding company) a major

gross

from
This

may

expiration of the subscription offer the Underwriters, through their Representatives,
offer these shares at prices and subject to the terms and conditions set forth in the Prospectus.

growth

only

earlier.

years

from

$2V2

embracing

aries

a group

dities

the Atlantic

Houston.

of subsidi¬
commo¬

ICC

states, running
as

far

West

applications

sired,
pany

and

giving them exactly the
capacity
a

paint

job

truck

and

de¬

com¬

lettering to order. The cus¬
leases, usually for either a
or five year term, and makes

tomer

four

lease payments every week. These

North

New

York

The First Boston

solicitation of

offer

Blyth & Co., Inc.

Corporation

Harriman Ripley & Co.

Goldman, Sachs & Co.

Incorporated

Hornblower & Weeks
McDonald &

and

accounting
of

gross.

for

Kidder, Peabody & Co.

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Smith

Company

the

Common

Carrier

sion, too, growth has
with 1957 gross

Merrill, Turben & Co., Inc.

been

White, Weld & Co.

Dean Witter & Co.

Average

haul is about 355 miles.
In

nor a

Ryder lines carry an ex¬

commodity

much

sell

Smith, Barney & Co.

tremely diversified tonnage with

type,

have

customers

routes

offer

million,

been made to extend these service

Boston.

regular schedule basis

in 10 Southeastern

from

constitutes neither

■

handling all general

announcement

buy these securities. The offer is made only by the Prospectus, copies of which
may be obtained from the undersigned only in such States as the undersigned may
legally offer these securities in compliance with the securities laws of such States.

an¬

The other half of Ryder System,
Inc., is the Common Carrier Divi¬

sion

This

7,500

some

documents

we'll talk
Today,
operating from 58 different branch
depots, Ryder leases trucks to its

size,

Prior to the

corps

chanics; while maintenance tech¬

niques, preventive and corrective,
company in America. In.
have been virtually reduced to a
Ryder System purchased the
science by Ryder.
Great
Southern Trucking
Com¬
combines

per

located garages enable the serv¬
icing of several fleets under one

1952

now

evidenced

and

leasing

pany

cen¬

ciency in repair techniques and
preventive maintenance. Gasoline
finers and stored

Common Stock

three fold:

purchasing,

located

bought

Tti

■

and cost saving to customers, and
still
make
a
worthwhile
profit

It all started with
truck

How,

October 8, 1958
Divi¬

rapid

expanding to $26,-

■*

—

Reynolds & Co., 425

operated under

were

•1

Reynolds Adds to Staff

Theodore

and

The

will
hold their annual meeting
April 1-3,1959 at the Hilton Hotel

(Specjof to The Financial Chronicle)

leverage is created

—

of the Investment
Association of America

Bankers

Company.

Tex.

Group

of all trucks regis¬

Texas ISA

become

coverage;
and
by the
and prestige of the rail¬

the
In¬

Association

the

surance

the

member

Governors

vestment

representing the Rocky
Mountain Group.
>

....

With Nikko Kasai

common.

(Special to The Financial Chronicle)

need for the lessee to invest

and

seem

Irving Lundborg & Co., 310 San-

be¬

remarkable

growth

(Special to The Financial Chronicle)

public offering of the stock was
April 27, 1955. Since then the
shares (traded on the Over-theCounter Market) have risen from

sock

corporate

With Irving

common

of;

its

been investi¬

railway

justify
viewing - -itsT equity as a rolling
stock that'is
going places. / T "

by $22,228,057 of long term debt
which precedes the 771,363 shares

may

Without any attention on the part
of lessee management, the truck

the cost of

moved

expansion

progress all would

position 7 provincially,
but «sees
trucking as part of a coordinated
system of national transportation.
that

continuous

record

corporate

regarded

Rocky Mountain IRA

Cash flow is

System, Inc., and its

com¬

the truck¬

Ryder

view ! of

confident

mark.

The

ing industry is surging ahead. The

management

Roberts Nominated by

trucking industry, the huge
potential market for truck rentals,
the aggressive, effective and
youthful management of Ryder

terminals, and excel¬
equipment maintenance.

lent

Earn¬

the

and efficient

create sub¬
stantial tax saving over capitalized
truck ownership.
Further, there
expense,

facilities

pro¬

first

in,

slowly,

mostly with small individual

simplified

since

25,000

communities in the United States,
they provide the only form of

freight 'transportation.

money

investment in trucks.

why roll back the page of
Trucks are here to stay.

history?
There

with

service

might

you

But

but

its

ask," would
gating the possibilities of inte¬
major companies, such as these,
grated air and land transportation;
and many others, rent a fleet of
and, last year, introduced piggy¬
trucks, instead of owning them?
back trailer service in the South,
The advantages for both big and
under a contract with Florida East
small companies
are
significant. Coast
Railway under which over
Renting trucks first of all releases
6,000 trailers a year are now being

paid

tion to

Ryder clients

" ,77:777

•

Why,

.passenger
buses. But no-

m u c

ability

due course, by

body

corporations

Tire & Rubber Co., National Bis¬
cuit and Union Carbide,5 for ex¬

expire

its

are

the largest

Can, -Armour, Coca
General Electric, Goodyear

Cola,

car

Some

known

about
street

and

breakdowns.

twenties,

"named

plus - mileage
include every¬

thing—gas, oil and grease, serv¬
:T icing, garaging, license and
registration,
and
even
on-road

middle
t h

weekly

distance

sec¬

be¬
in

n g

rates

based

are

minimum

confined preponderantly

was

railroad

gin

about

transporta¬

railroads
most

over

distant future.

DENVER, Colo. — Malcolm F.
quite high
Roberts, Vice-President of Gardue to over $6 million a
year in
rett-Bromfield & Co., has been
depreciation; and overall profit¬
ability has created a net return on
stockholders' equity of about 16%.

motor carriers and small truckers

enterprise that has

too

ings have risen from $2 a share
in 1955 to $2.88 for 1957.
They
should reach a new high this
year,
as gross moves
past the $50 mil¬

Common Carrier Division than in
rentals.
As an over-the-road

By Dlt. IRA U. COBLEIGH

;

the

the year

The Commercial and Financial Chronicle

(1454)

Senator Wagner, a new housing. market. This is
and Senator particularly true Y of our older;
Taft, this policy clearlystated the'citizens?' *
:
V
national housing goal as a decent
Do you know that since 1900,
home and suitable living environ- while the total
population has
ment for every American family, doubled, the number .of. persons
The policy statement went on to 65 years
of age' and over has
say that private enterprise should quadrupled? Today senior citizens
be encouraged to serve as large a number. over 14 million, reprepart of the housing need as,, it senting.one out. of 12 ^persons in
will and can, and
that govern- the U. S. In 10 years, this number
leadership

This national

itself.
banks

the

interest

direct

financ¬
ing I should like to comment first
about the present housing situa¬
tion and point
out

what

think

future.

I shall

thereafter

philosophy of my friend
housing is expendable, and
should be thought of as an eco¬
that

the

nomic force to be turned on and

trou¬
*

present

The other
an

ben.

o w

the

economy

of housing

demands.
something

fundamental than that.

Housing to me means homes,
families, people. It is the place

of mine noted
h

think

econ¬

friend

omist

when

off

bled world.

day

stabilizer to

with the

United

States

quarrel with the

keep our economy on a more level
keel. But I should like to disagree

ad¬

myself
position

the

economic

Sparkman

John

once

about

which

the

entire

life

?; I

held

own

our

are

located,
a

number

are

York, Lake Placid, N. Y., Oct. 3, 1958i

bi-partisan

support ' under

the

SAVINGS BANK
Brooklyn 29, New York

since then. •

better quarters but
ford
them.
Others

area

barely .
■ v
'

S.!1

t6;another,

v" ;f-■

inertia.

^
very significant.
th,s £°U"V7about
,one out
five
families
moves

":i There is

a constant potential de¬
mand from such fainilies. Increas¬

every

^mi!^l

units, so that we have had sorhe
improvement but very small indeed when we consider the high
level of
,

prosperity in- this -Nation
a

that time.

since

substandard

million

•

^^ppolitan-areas.
For example our farm populaPe ,!•om
1SHS101^ in

1950, the Census Bureau reported
about

•

tirhn

ated

/-v4-4

the 4-nntv\
farm and

cre¬

^demand for new.rliving ac¬
citjies.

commodations in the
.

Another,

source

comes

new

housing

from families mov¬

1954, the average price of a
was $13,500.
By 1957^,

new

house

the

average

•

%1®
*° 2L bullion in 1958, a loss
of more than four million persons
a short period of eight years,
-Most
qL„this ^represents- , families
who moved off

Why is this?
The simple answer is that we
are not producing enough housing

$15,000.
of

^increased

believe

action

that

must

increase

most" American" families.

afford

should
more

all

are

safely, $7,500

families

this

that

trend

ately after the

J. Warren Slatteuy

J. Arthur Seidman

James E. Orr

Daniel T. Rowe

Alexander M. Stafford

William K. Cairns', Jr.

Harold W. Beery

Wesley A. Roche

George A. Arkwright

William A. Lane

popula-

and has

war

;

limmedi-;
con-

tinued up to the present;
■<
The babies of the mid-forties
will be

Lehn

take

started

Alfred G. Ruehle

heads of house¬

new

the

births

the

mid-sixties,

so ;. it.
requires only simple arithmetic to
estimate the probable new family,
formation for that period;The

50 % greater

thirties,
this

Raymond C. Deering

the

holds

forties were abopt»
than the births of the

exppct 'from v

can

alone

source

that"-new < fami-"

lies formed in the sixties will be
about

DAJNIEL T. ROWE.

President

WILLIAM K. CAIRNS, JR

Vice-President

J. ARTHUR SEIDMAN

Vice-President

HOWARD R. WRIGHT

Executive Vice-President

EDMUND G. FLOWERS.. .Vice-President & Secretary
GEORGE R. BENNETT...Vice-Pres. & Mtge. Officer
E. HOLMES MARSTELLER........

.......Comptroller

COUNSEL

MARSHALL and MARSHALL

half

FEDERAL

DEPOSIT

greater than those of
Most of this"

INSURANCE

CORPORATION

the

1960's because

postwar births
of the 1940's.

the

•i?L V

latter'
of the

later

hrilf

NEW
Other

Sources

Housing

Formation

There

are

other

YORK

CITY

sources ;

MUTUAL'INSTITUTION

household formation, to which the

prognosticator has failed to'give,
proper recognition in the past.

Many of our young unmarried
people, and many of our older
folk

MEMBER

30%

the present decade.
increase will occur

OFFICERS

who

nomic

heretofore

eco¬

necessity lived with .their
relatives, are now living in homes
of their own. They have, created

Member Federal

per year. Most
Nation just do

not earn that kind of money. Ac-

expected to take!
of the

$15,000 house, a family
earn at least $6,000 arid,

production: of

aware

qyqi?

housing in the future. We have"
a
dual
job.
One,
to | produce
enough new units to replace the;
old,
worn-out
and
dilapidated'
units still in use, and, Secondly,
to prepare for the big fairiily for¬

Now it is fairly obvious
$15,000 is above .the reach

that the

additional supply to reduce the
huge backlog of worn-otit,^obso¬
lete, and dilapidated houses in
which so many of our American:
families are still living, i

tion

vom

cannot af¬

a survey

place in the mid-1960's.

Martin A.

; e
-i; year. A housing ' demand comes ing family income or the avail¬
made by I1"0*11 that group of families who ability of less expensive quarters
convert this potential demand
the Census Bureau in J.956;,
to^fe^ a housing surplus area can
than
13
million
houses : in
* >
the
a housing shortage ^area, or into an effective demand.;
United States were substandard. ^y
^?-in^
the cities r The most important factor af¬
fecting
this
demand
is
the
cost*
of
This represents 24%, or one, out
suburbs, or from rural areas
housing in relation to family in¬
of
every
four of the <55,340,0(30
come.
''
•••
dwelling units in this Nation: In

According to

mation expansion

TRUSTEES

Most

are
living
voluntarily in such quarters betcause of indifference or just plain

Demand for Housing

KINGS HIGHWAY

under-

unsatisfactory for
reasons.

■

Savings Banks Association of the State of

• many

either too small, porirly

New

;

the

^e^Bect oahousing demand
.?£■■ AI*J®F'<r?n. families moving

have

speak

which

"re

ago—and

years

taken.

goal;Unfprtanately, wejhave no
must' be
statistical evidence to-meas-

enunciated in 1949-over mine

was

be awakened if proper

can

are

housed families who live in homes

this

>
family revolves. Homes are places
demand
units to meet the need, r
building appears to be the eco¬ where babies are born, where
The formation of new nonfarm ~
nomic force leading us out of a children are reared, where mar¬
households
over
the ; past
few"
recession.
riages are perforrhed, where the
American family lives. Therefore, years has amounted to about one
History repeats itself—the story
million per year.
Housing starts;,
today looks like a repetition of the housing production has much
according to the Bureau of Labor
1949-50 and 1954-55 economic up¬ more meaning than a mere eco¬
Statistics,
has
been
a little above"
turns which were spurred on by nomic force.
one million units per year, which»
an
expanded home-building pro¬
is just enough to take care of new ,:
Fail to Achieve Bi-Partisan
gram.
My
friend
spoke with
household formation. The yearlyHousing Goal
enthusiasm of how well housing
Back
in 1949 as part of the addition does not begin! to take :
construction
responds to. availcare of the
replacements needed '
Housing Act of that year, a Na¬
♦An address by Senator Sparkman before
tional Housing Policy was enun¬ because of fire, flood, and demoli¬
the 65th Annual Pall Convention of the
ciated.
Written
originally with tion; nor does it provide any;

again home-

steps

these families Are anxious to live

construction
a rising level year
The housing; goal

maintained

to stimulate it.

which

considered

c two

in and year out.

primarily because it has a
huge backlog of unmet demand
which needs only adequate credit
Now I have

have

attain

housing

izer

use

meats, one should not ignore the
> factor of mobility of our popula-

order

ideal stabil¬

cannot

g0al

out

turned out to be

the

to the

may

expect

dress

pointed

that several hundred
families' moved out

this six-year

of failing to achieve our

expense

housing credit. He
that
housing
has

ability

of the

properly developed mortgage market with a dynamic Home
Loan Banking System and another F.N.M.A. for conventional
mortgages. Turning to world affairs, the Senator defends
Mutual Security Program and favors programming more time
and effort for foreign economic aid.
Because

means

thousand

in = forecasting:; future
policies. We cannot use housirig'" housing requirements.
.
**
as
an
economic stabilizer/ at the
' In' estimating housing requiresubscribe.

of savings banks in home

This

has created a demand for separate
living quarters which must be

policy is the ac-

cepted policy to which we' must

national distribution of mortgage funds, and

to correct uneven

growtli

challenge to increase the sources of

normal

building in the next decade, a doubling of present mort¬
requirements, and

gage

Under

the
city would -have
gained about 1.5/ million persons.

1949, precludes
vising housing in our battery of economic stabilizers. Looking
ahead, Senator Sparkman anticipates 25 to 50% increase in
annually, to meet the bi-partisan goal set in

mortgage funds and improve the mortgage instrument
He suggests a nation-wide extension of mutual savings

1950!

city than moved in during
period:* In -the same
six
years,
Nassau County in¬
mental assistance should be pro- will have risen to. about 18 undi¬ creased
by 450,009 persons where
vided
only where necpssaiy to^ lion.
- v.^
normal growth would have pro¬
eliminate substandard arid other : ,The, growing
financial, inde- duced only one-half that number.
inadequate housing and otherwise pendence of older people as a In looking towards the; future? I
to bring to fruition the national /result; of social security-* benefits should like to
say-a word About
housing goal.
>• J
'1% and industry pension programs another dormant housing demand

Leading Democratic Senator on housing declares that our
chronic failure to produce enough homes at a rising level

home

faictors,

Alabama

Senator from

U. S.

New York

SPARKMAN*

By HON. JOHN J.

ing from the cities, to the suburbs.;
,CLty, for example, had '
86,000 less person's in :1956 thari

Senator Ellender,

U. S. Housing Market—and Our
Position in a Troubled World

Thursday, October 9, 1958

...

Deposit-Insurance Corporation

Volume 188

Number 5784

The Commercial and Financial
Chronicle

...

*C1455)
cording
/

only

Census

one-third

i families

the

Bureau,

must

American

our

attract

built today.

into

have

some

rough idea

f of the job ahead of us. It is a
f challenging job and one which
t requires the energy and attention
;5of all of us in private
industry
•

System

serve

By WILLIAM A.

established

was

capital market

facility for American industry. No

corresponding i facility

■„

for

exists

What

can

meet

: </:;

challenge aheadof;us?

'//,/ In

Home

Loan

Banks

£ 4s
most important-k^
the
achievement of our national hous4
ing goal
!
^*

Need

Broad

►

•^fcThis- as^not-to csay that other
•!: tQir»r»e> cunK

should- have

corresponding function.

mind, mortgage financing

That there is the
;

C; Meeting the Demand for Housing

Mortgage

Market

the

National

down with
-.r

will

k"
>*.yvlAph requires -primary
1

•

?°r
attention

18
>rpK--

...►This
a

can

■ t

be;cons.dered .in two
'^
P' ^'dfniort"

"dislributing

this

supply.-' y

savings

the

aim

size

creun..is

the

housing
housing;

asgreat
great

and a]s0
also
and

5e -constantly

much

iiaiik-

■

for the

H°;usi.n.g„..f€ts f\P.r0P_e.r

would

«ni™<
going

m
was

nate savings

uidation.

time.
,

The

discussions
ear-

Have

dom,

very

liquidation

idea

abandoned, which

beginning of wis¬
deliberately played down

for the present for
purely tactical
reasons.
There isn't the slightest

doubt in my mind

xpanSion
market and a dynamic Home Loan
$67 billion to $148 Lrilion. ,Offrmn
the.
Bank System to do .for
housing
-current total, $109 Mhon is for
what the Federal Reserve Sys-

inJiistofy

•

W$aflMly-,.umts, and $39

'V
.

forymultifamily
buildings

•

and

billion

commercial

tem an(j jnvestment

done f0r industry:
industry.

Organizations

In the 10 years
ahead, assuming
that
new
construction will in-

NewBYork
should

„iv.

present requirements.

£/•

r„;

use,;'howevcr,
the;■

Banks '.
and^

(V1

tobthis

time

■

„

...

William

the government"supported ?mort^'be^ven
this facility had $1.3

T1,ere

billioii

covered.

the

savings

ABA.

And

banking

you.

can't

Legislature wouldn't

our

know what to do with the

Lyon

liquida¬

the discussions

oPDOTtaiitv to
a

?ot

revive

the

!-"^4 ?a„

fus

„ushed

without uproars

sue

extermination

w jwwsss

sax#

toss

tion bill.

s^el^onfediscussions.-^When

onSarV

out

tell

re-

"fts•rnxBsztogBk**'** -«*• '™""a

«.<w

rinnrre^entl°he Smef W ^ theS6
:f .The only somceol private capi.

Savings

iss

.c ^ *

/There*is no

that

thoueht

even

proposal
v

that American

banking would reject that scheme
more
resoundingly than the

piioH

banking hdve ;

state

If.a

;"/'/ '

•

over such

would

others have

well /for

public

•

t.
to extermi¬

—

rules

typically

stay

banking, through liq¬

may be either
could mark the

m>
on

American of all
conduct.
It is
also

business and to continue to

off-stage while the Chicago

i<> drive
Hvtve

n°w, sc?s
fA/i
.iv,

£"'^*4

that

see

„

=ii

social factor must
to

worse

economic factor

alert

Even

regard for the
This is the most

others.

typically

the

national; income

as^*an
as- an

com-

play, tolerance,

prepared to

courtesy, fair

Chicago chapter — a trau¬
matic experience for all
banking—
is closed, unless our detractors
re¬
open
it.
We expect to

study and dis- would be a reopening of the
I'LCi^61'6111'03 that may "er effort
an effort kept

iimiteu^uyi

and by economic policy. Those of
'us wj,0 understand the importance
of
of

Liquidation Drive

are

Chicago Experience Is Closed

common

—

The

oilrtViTiop'';

-5c '

than

concede

sav¬

problems/' Savings banks'
also deplores attempt • "to exterminate
savings
banking through liquidation."
^

spokesman

•

around.

banking

real effort to work out its

in reprisals.

npw

not planning to
try to put
anybody out of business. We ask

possibility of banking notoriety and that it
banking membership of the ABA who

responsible for the unfavorable squabble between

make

interested
are

American not to like
being shoved

ings banks and commercial banks, are the
principal points
scored by Mr. Lyon in
concurring in retiring ABA President
Welman's proposal "that ranks be
closed and that

•

_■

were

not

merit of
.

the non-savings

was

A properly 3 developed ■ market
facility for mortgages would give

LYON*

President, National Association of Mutual Savings Banks
.:
President, Dry Dock Savings Bank

the capital need for real estate
mortgages even though many peothe ,Ple
believed
that
the
Federal V

'<•

•

partly to provide

?*!hnd government.
"f

Halting the Persistent Badgering
Of Savings Banking

mortgages.
:
; !/
The mortgage market is not organized like the market for other
capital goods. The Federal Re-

"With these informative statistics
in mind,

ways

much money as possible

-11

improving
mortgage instrument itself tq

the

could afford houses being

study

serve

long, long

concede

that

place in the'future
too.
If deposit
banking is rent
apart by harsh and petty strife, it
a

will not be by our

choosing or ini-f
tiating.
For v a r i o u s'
reasons,
banking lost public respect in our
time

and

then

regained

only

with

difficulty. By, reckless, per¬
sistent.
badgering of savings bank¬
ing

by.

certain

elements

commercial

banking, leading in¬
evitably to bickering, that public
respect

and

seriously
said

confidence

damaged.

that

every,

could

has

been

profession/ is

greater

than

tioners.

Each practitioner tends to

draw

its

practi¬

prestige from the vast

accumulated

tributes

most

mass

then

con¬

it.

the

deficit

and

growing rapidly, that industry
for trouble,
That,- to me,

But
any

that

say

time

large

is*4n
was

the lesson which

trying to
banking.

convey

Chicago

was

American

f it

Phila. Sees. Assn.

weird

Hear

A disservice would be

re done ^ to banking if the kind
^/' campaign i that was carried

„

PHILADELPHIA, Pa.—Herbert

Retiring

J}ie Amer

Woodman, Presirtent, - InterCorporation, will ad¬

chemical

tion has ;
dress a luncheon meeting of the
V' against f savings
banking before niosities L
Philadelphia Securities Associa¬
and'during the Chicago conven-' be closed and .that banking make tion on
Wednesday, Oct. 15, at the
/+Qt^tibn should be started up again.
a reaf
to worl^.out its prob- Barclay
^lotel.
on

lems.

That

the

way

it should

Warren V. Musser
.",f'"n0 ^ be.! Certainly, we have no desire
ofaVivw Yao"rikS to keep a feud going.; We did not phia Securities Co.,
t\.yr--

~"7

—°v ,r

towa^rds mortgaiges.

IP,
"i
.1:

Whether the savings institutions
"try can increase the
f

sets

mortgages

'• start the

1958,

gage

Lruaraniy uorporauon to in-

sure

co-insurance

basis

the

one

Chicago.

are

of Philadel¬

Inc.

charge of arrangements.

: 7

Upper 20%

of -a conventional loan/7,
^he new corporation would have '
/

^+?s"
been
question

under the supervision of the

pecj[erai Home Loan

Bank Board,

:;,;which depends largely; on the,- This
,plan>, along
with; other
j« price that alternate investments housing- proposals, failed to re-

This is

not an

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

the

savi

that

„

finding

eeive Congressional
t]le

c}0Sjng

dayS

NEW ISSUE

.;/••

approval in
Gf ..Congress,

3,500,000 Shares

Administra-

-companies, savings and loan as-,.
*
i sociations, and other
However, the State
of
New
suppliers is
has
not adequate, then other sources York
enacted legislation
to
permit savings banks and statemust be found.
chartered
savings
and
loan
asi;f
In addition to increasing our
__

...

■

source

funds, I believe that
'

Wellington Equity Fund, Inc.

sociations to make uninsured
sociations to
loans
90%
of
up - to

appraised

value.

The

Federal

Home

Loan '

Board, ; under its present
authority, can amend its regula¬

Union

Dime

tions

2 Offices in the Heart of New York

Late

higher ratio of
fact, the Board
considering a regulation

now

which

would

chartered
ciations to

For Your Convenience

permit Federallysavings and loan assomake

uninsured

to 90% of value.

details
sure

Banking Days

(Par Value $1)

to permit a
loan to value. In
is

savings bank

Capital Stock

Bank

of this

Price $12.00 Per Share
(in single transactions involving less than $25,000 each)

loans

While I have

consideration, I

that the regulation would

contain

some restrictions
regard¬
ing the volume of such sales, and
the
type
and
dollar
amounts.
Therefore, it may be possible that

MAIN OFFICE

of the

one

Avenue
at

of the Americas

40th Street

OPEN

New York 18

MONDAYS

THURSDAYS

8:30

A. M.

8:30

basic

purposes

Home
Mortgage Guaranty
Corporation can be attained

new

merely by administrative regula¬
tion.

P.M.

Unfortunately,
of

our

segments

many

population

have

incomes

too low to finance decent

without
U.

MURRAY HILL OFFICE

Madison
r*i-

39th Street

Avenue

New York 16

OPEN MONDAYS TO 6:00 PJ#.

from
This

Federal

Deposit

Insurance

Corporation

some

form

Kidder, Peabody & Co.

housing

Bache&Co.

assistance

the
Federal
Government.
assistance is not intended to

be competitive with/private in¬
dustry, but to support free enter¬
prise in its activities in such a
way

Member

Copies of the Prospectus may be obtained in any State in which this
circulatedfrom only such of the underwriters, including
the undersigned, as may lawfully ojfei- these securities in such State.
announcement is

of this

omy

Reynolds & Co., Inc.
Dean Witter & Co.

that all segments of the econ¬
benefit. Through these pro¬

grams

the

Federal

Continued

Government
on

page

October 7,1958

The Commercial and Financial Chronicle

Thursday, October 9, 1958

(1456)

Today's Trends in
Mortgage Leading
By BROWN L.

1970

and that this is

present living standards

economy today is
complexity and
inter-dependence. v Free trade,

Concludes there should be

restrictions

flow

New York.

capital accumulated in

America's

national

bearing
of thrift

developments

upon

investment policy

funds

in this country and present

indications of the shape of
to

come

things

expansion ,of
Today New York
State saviiigs banks hold 1,163,384
mortgage loans having a total dol¬

home

sion funds and

institu-.*

tional

lar

inves¬

sav¬

More and more today,

ings banks.

which have

to remove road blocks

traditionally impeded the flow of
mortgage money across state lines.

both to capital de¬
ficient states, as well as to those
applies

which

yours,

funds

that must

surplus

have

to work.

be put

legislatures and supervisory
officials and agencies in'some
Our

also

areas

are

now,

at the request

mortgage investors, giving con¬
to the question of au¬

market

with the trade

substantial proportion of this

intimately
Last

investment

budget

flow

relatively un¬
of the country.

areas

several

What is good for the nation is cer¬

This is

tainly good for New York.
not

platitude.

mere

definite

There
this

why

reasons

realistic permissi¬

are

ble ratios of loan to value.

While

the people
of New York have displayed a
strong preference for mutual sav¬
ings banks in making their choice
of a place to deposit their savings,
nevertheless, competition for the
savings dollar from savings and
traditionally

loan associations and other invest¬

ment media has increased and may
be expected to continue to do so.

While such things as safety,

con¬

venience, varied services and other
factors

offer

appeal to de¬

great

positors

(and mutual savings
banks may point to these things
to

good advantage) the relative
ability of thrift institutions to at¬
the savings dollar will ulti¬
mately be determined in large part

financial center is of

the

domiciled here and

have

substantial
of

America

with

them

historically,

tion.

banks

for

'Of ' all

funds

types

surplus

financial,

commercial and industrial institu¬
tions.

strikingly parallel
rate of supply of mortgage
century

investments.
Parallel

1900 when the average divi¬
dend rate was approximately 3.4%
the ratio of mortgages to total as¬

sets

was

1929

both

ratio

41%.

From

the

dividend

then

until

rate

and

mortgage investments to
deposits varied somewhat but the
general trend has been consist¬
ently upwards for both items. In
1929
was

the

assets

*An

address

65th

Annual

65%.

was

1929 both of these

the

dividend

average

rate

4.36% and the ratio of mort¬

gage

twelve

balances.

the

deposits in these banks

individuals,

institutions and
domiciled in other

corporations
states

was

tual total

ascertainable,

out-of-state

the

ac¬

deposits

would doubtless surprise many

Mr.

Fall

Whatley

Convention

us.

These

commercial

ances

help

bank

credit

ble

and

make

tend

bank

sure

for

bal¬

commercial

readily availa¬

relieve the

pres¬

periodic withdrawals of

the

some

needs

§
I
If

than

areas

been

our

greater

denied

was

over

0.13%

us.

The
ord

and

for the

shows

the

eoiiptry

Here

backwards,

That

were

talking about, however, is no one-way street.
The
benefits work both ways. It's no
we

are

welfare matter but

cold business

|
if

Undue

1 Economic

New

Study of Savings Banking,

survey rec¬

and

When

New

tended

create

job

come

for

2 Finance

and

Clearing

House

York

are

Region

a-whole.

some

ex-

it helps

opportunities

in-

and

which is spent in the market

goods made here.

own

this

The

goes

savings banks of New York

State alone hold 59%

In fact, it is quite

Continued

savings banks of

of the total
on

FROM

1848

UNTIL TODAY

§
|
§
§

dustries illustrate

Service in-

viv-

idly the importance of the outside

market

|
|
|

the

of New York.

all

the

even

economic

welfare

Almost one-half of

advertising

the United

billings in
busi-

States represent

which originates in New York

agencies.

DEPOSITORS

HAVE

Savings Sank

742

111 Second Avenue at 7th street

registered exchanges in this
country take place in New York.
Insurance firms, management con-

sultants, commodity exchanges in
large part are domiciled here. The
corporate and governmental bookkeeping of the nation is done on
name

IBM

machines.

Just

it and New York has

some

part in it. Undue restriction of the
flow

of.capital accumulated here

SAYING:

l|l|

value of all securities transactions
on

BEEN

DRY DOCK

Approximately 90%

|
f
|
|

Lexington Avenue at 59th street.

67 Avenue C

518 Seventh Avenue

at sstk Street

136ttelancey Street

at Norfolk St.

at 5th

Street

Member Federal Deposit Insurance
Assets exceed

Corporation

$595,000,000

f
If
$

may reflect some light
comparison of mortgage
collection records in this region:
on

if
1
1

significant

very

credit

other cities

conven¬

in'higher
1 than .in

Capital Flow

York State.

reports.

Restrictions

was

nation.

five-year MBA

also

percentages

obligation to

state.

rate

tional loan delinquencies

speak, to make certain they
constituents—their

country

60-day

as
compared to 0.27%
throughout the country. The 90day figure was 0.19% against

thing, for mortgage interest

their full

for the

The

0.48%.

out-of-state

1.63%

whole.

down

and

have always traveled on

New York's

before
of

against

originally from
the answer,

This matter of mortgage invest-

ness

savings balances.

Savings Banks Association of the State of
York, Lake Placid, N. Y., Oct. 3,

was

contributions

leading banks

After

figures dropped

New

1958.

into

amount of

market

delinquency rate on
this five-year pe¬
Region 1 was 2.73% as

loans for

|
I

theory that Yankees

ment

money

its corn and

Iowa

The 30-day

riod

direct

easier to pick than cotton."

•

FHA

proposition.

respondent

Earnings Growth

Correspondent bank balances
which flow from banks across the

of New York City, now consititute
about 221//2% of total deposits.2 Of
half the current
deposits of 26.8 bil¬
the lion dollars in
these twelve banks
loan
$6 billion represents such cor¬

past

the

na¬

the great commercial
institutions become the

ultimate custodians of the

nation

the

there

mortgage

institutions.

advan¬

|
came

always
tax

our

the

Here

banking

The record of earnings and the
rate of dividends
of New York

savings

"where

the

the homes and families of the

it receives in

than

"Oh, but I
South,"

payroll
regularly lodged
protection of

is
for

The proposer

|
g

benefits."

savings, New York State occupies
a unique position.
Our oldest and
largest insurance companies are

tract

jby investment policy.

use

suggestion.
Your State of California happens to be one that pays

ognized everywhere. Here are the
great reservoirs of our nation's
capital. In the field of individual

and pos¬

can

than Kansas can eat all

evident that

interposed

idea.

its

without saying.

objection to
then said,
would like the

the

cannot

wheat

own

from

all

their

California

hold
this

but of the FHA, VA and

survey

facts that

State

meet

the

Region 1,'Nevv England, New York
and New Jersey, I would imagine
most of these are held by your

first

etr.be

record

mutual savings banks do not
all of the loans reported on

tions seek to lean

the

conventional loans reported on in

community

cer¬

look

the

delinquency survey for the
five years.
Of course, the

rates in New York., ;•J,
1,'u
Of course, all mutual institu¬

school allotments to the

that

made

past

as area or
distance limitations tend to do the

only

mortgage lending such

pressure

picture. Pressure to

of-state

house¬

that

made

can

but the question of safety

Undue restrictions

under consideration.
was

recommend

Not

savers.

drop through the floor if our out-

.same

the

can!

Federal

new

"I would think you

rec¬

course

the

states

quickly

State, especially New York City

pigs, Idaho its potatoes. The price
of our oranges in Florida would

direct

pre-eminence of New York

tage
of its

proportion to the tax revenues received by the Federal Treasury
from the respective states.

state¬

ment is true.

The

out

any more

the

fare and

and

York

wel-

tal

developed

MBA

has in some degree led to
the acceptance
of mortgages of
comparatively poor quality. New

attending a
Chamber of

was

were

committee

new

proposal

freely from the states that are
heavily endowed with capi¬

sideration

thorizing

items

tain

most

to the

the

Let's

best

invest funds at home

of products

one

Safety Record Compared

se¬

possible inducement should

held

all

put

you we

sibly

point.

Commerce Committee where

eco¬

nomic health of the nation to per¬

mit

known

year

meeting

certainly good for the

cus¬

are synonymous

names

that is per¬
no

especially question¬

also enters the

America.

holds of

the State of New York.

It is

time where there is

mit,

re¬

able at

banks,

the

their

for

case

larger cities

your

value of 14.5 billion dollars.

excellent

against

Any such

citizen.

such restrictions work against
interest of depositors by
curtailing
the
earnings
of
the

In
Utica, for a single example, such
important industries as Bendix
Aviation, General Electric and
Utica Drop Forge and Tool corpo¬
ration
employ thousands of
workers whose living depends
upon a
national market for the
goods they make. Elmira, Endicott, Buffalo, Poughkeepsie,
Binghamton, Troy, Rochester and
Schenectady are just a few other
examples out of many, besides
..Brooklyn and New York.City it¬
self, where local economy is strik¬
ingly interwoven with that of the
nation. The names of nearly all of

impressive total represents loans
made by these banks outside of

enlightened legislators are seeking

This

building.

very

Brown L. Whatley

tors, including
mutual

tremendous

the

com¬

panies, pen¬
all

growth in earnings has con¬

travel up
with the growth in the volume of
mortgages which become available
in ^substantial amounts as a result

"ft

in¬

for

with mort¬

investments constituting 66%

The

invest-;

ment

prevailing

the

today

and

tinued to parallel and to

the field
of mortgage

surance

1946

gage

ing

loan

less than 1 Va %.
the rate turned upward

of assets.1

expand¬

and

low of slightly

dividend rate is 3.%%

tify fully the
generally ac¬
cepted
policy
of extending

out

28% and the dividend rate reached

again

jus¬

bottomed

ratio

investment

seem

the mortgage

until 1946 when

off

and

the

are

New York State industry

tomers.

Recent

natural

for

thrifty

the

Our impor¬

success.

producers today look to

But of course,

fectly

may

lor all and has been a basic factor

tant

home.

strictions

every

border

rious threat of inflation and when

barriers and restrictions, has

line

undue

high

provided ample goods and services

growth than 1946 to date. Adds that 1959 predicted demand
for about 1.3 million new homes may only be offset by
1.2 million homes built.

without old world state

greater rate of

the

restrictions

that

discrimination

constitute

financial in¬

York

nation's

The

one

and

built just to maintain

17 million homes must be

some

New

your

from

home-builder blame you for it (except perhaps
providing a your depositors). When you reach
out into the national market, how¬
more plentiful supply of mortgage
money than would otherwise be ever, you have the benefits of a
possible and thus assure low rates much wider choice from which to
and high premiums. Such restric¬ make your selection and you prob¬
tions nevertheless are imposed at ably have less pressure to make
the expense of the depositor and a given loan even though, 111 ad¬

municipal utilities, has in the main
been cleared through or provided
stitutions.

from

Arrow

doing just that. When you
at Florida mortgages it al¬
ways seems to me at least that you
are
more
difficult to please, and
you drive a harder bargain than
when
you
are
making loans at

mortgages may be ad¬

said

vantageous

and built
hospitals, and

and

Manhattan
an

England have

been

look

in New York State by

airlines

our

schools

shirt very

building will workIt tends to keep peopie
out as well as in.

out-of-state

roads, our highways and bridges,
our

points out that the mortgage correspondent system which has
served life insurance companies so well and so long is equally
v

and money

New

a
or

New York and New

right off the

back—a

Fence

two ways.

take

may

equipped

long distances and

now

Troy.

just pride in
the
fact
that the capital which
traditionally has built our rail¬
Yorkers

in earnings, safety
investing in out of
state mortgages are depicted by Mr. Whatley who has been in
the mortgage field for more than thirty years. The Florida
mortgage banker indicates how safely and easily savings

Points out that between

nation.

the

center

ist

Middletown

its home

convention headquarters and tour¬

Opportunities New York banks are missing
participation in nation's growth by not

available to savings banks.

likely

large degree

to
a great extent the retail store, the
school house, the theatre and the

WHATLEY*

conduct mortgage investment at

would take the shirt

out-of-stater's

office, its wholesale mart and

and

can

only the banker

also the nation's factory,

Whatley, Davin and Company, Florida
President of the Mortgage Bankers Association of America

banks

Nation's Banker

New York is not

of the nation, it is in

President, Stockton,
Past

New York Area Is

::g

page

Volume 188

Number 5784

The Commercial and Financial Chronicle

.:.

(1'457)

avoid" similar

can

sane

adventures byforeign policy, we should !
get expenditures down

be able to

this

would

Chairman, Committee on Taxation
New Jersey Conservative Club, Montclair

reduction.

by calling that statistic "puffed up." Urges
we at least
get Federal expenditures back down to the Truman
level, saving us $14-21 billion. Maintains relief can come
through, restricting spending to a maximum of 20% of national

reached

citizen

works

and

They have
than

that, while

national

income

1957

$364 billion, and government
enue'in

the

same

year

the

nearly

can

accelerated

cover

spending

be estimated

now

which

at between

$110 billion (Federal, state and 11 and 12 times the 1927-1929 rate.
local). Taxes now sipnon off over Hence the constantly rising deficit
30% of total national income. In, and ever increasing government
the

peak

portion

year

1929,

the

debt.

pro¬

less than 13% (about
billion out of $88 1 billion).

$11.3

•'

was

Puffing

Special

for

taken

were

the

Pleading

economy and

•

Company
on

governmental

•-

of
'

Oct. 9.

"Like other

■/■v.; Bureaucracy

■

new

money.

industries
have
its

well, and that may

vast

financial

resources

disposal."

legislation

is required to govern
it,

over

jealously guarded Trust
expanded by Truman and stated

It is axiomatic that the smaller

per

the national income fails to

rev¬

of the

some

Special Burden of Large Scale

show

gradual

and

Eisenhower.

half out of every five for
the government. Figures from the than seven fold
and the aggregate
Survey of Current Business (De¬ tax bite is ten times as high. Even
partment of Commerce) Julv 1958. this huge percentage taken from
a

RDR

and

capita income has
not quite tripled, the per capita
cost of government
ha^risen more

day

the several states

ing population forget to mention

point where the average

functions which

income, with further reductions in subsequent years.
high.

avers labor is now
monopolistkally supplied
employers, which has become the second biggest business
in the economy, and should be
subjected to detailed control.
Specifically recommends limiting labor organization to the
employees of one employer as one way to help protect the

government oper¬
value of
industry,
nowcompeting
with private enterprise, could be¬
The supplying of labor to in¬
gin, saving more billions. Further dustry has become, next to gov¬
cuts could be made by restoring
ernment, the biggest business in

National Product"

too

Guaranty Trust

alone

$14 and.
enough to balance

ated

Hoisington cites numerous data demonstrating the enor¬
mity of our ever-increasing tax burden. Combats arguments
justifying spending by vested interests via relating it to "Gross

are

This

between

Concurrently,

elimination

Mr.

Taxes

$21 billion, or
the budget and make a substantial
beginning on income and other tax

By F. R. HOISINGTON

rH;

level.

same
save

Greater Threat Than Capital

Guaranty

New

York

Monopoly..- '£\. -

;

There

are

several

<:
in

ways

businesses, it must which

kept competitive if the

econ¬

omy

is to remain free," the hank

said

labor monopoly represents
greater threat to the continuing,

welfare

of a free economy than
capital monopoly ever did, the
economic review, "The
Guaranty bank said. One example cited was
Survey."
:• that it is, more
far-reaching; be¬

its

October

business

and

units, - which are.
under closer scrutiny by the voter,
cause* labor is by far the most im¬
It has caused the
problem of
operate more economically than
portant eleme nt in cost, and, hence
the Federal bureaucracy. But even monopoly to reappear "in a form*
in price.
here Federal influence has adver¬ quite as threatening as that in
which it appeared in the latter
; "Most important of all," Guar¬
sely affected the fiscal policies of
part of the 19th Century, and in anty said, f'experience has shown
the several states

tial savings could
an alert
citizenry.
zen

that substan¬

And if

citi-

no^, satisfied with the fiscal

policy of

he can live
in another.
By contrast, there is
no
escaping the effects of Federal
policy.
one

respects more so," the "Sur¬
vey" observed. "Then it was cap¬

that

ital
monopoly;
monopoly.

free competitive
markets, is
undermining the value of money,
a
process which,™ unless curbed,
can
eventually destroy not only

labor monopoly, working in
conjunction with other. restraints

some

be effected by

state,

now

labor

Monopoly Prices Victimize

the

Consumer

economic welfare but national

se¬

"The effect is the same: monop¬ curity as well."
\
presenting a basis
Interest on the Federal debt
oly prices. And the victim is the
crease in income since that
always quote the alone now takes 2% of the total
same: the consumer." ;
r
>
must be used to
pay taxes. Every-' "gross national product" but
do national income and, now that the
j Form Triangle Investors >
Sweeping corrective legislation
body is getting, in a higher bracket not explain that this is puffed up
debt limit has been raised to ac¬
Trianglet Investors Corporation
is urgently needed, Guaranty said,
—-so is
everything else, including to the extent of some 20% by commodate the Federal bureauc¬
but the bank cautioned that mere¬ has been formed .with offices at
hidden and double taxation.
inclusion of "indirect business tax
161
racy, there is no reason why it
William Street;
New; York
ly to make labor organizations
non-tax liabilities, business can not
; How to reduce taxes? Obviously and
be repeated
again and: subject to the anti-trust laws
is City, ...to engage in- a securities
by reducing spending. Self-styled transfer payments, statistical dis¬ again in the future as it has in
probably too simple a. solution. business.|Robert Weinstein is a
liberals, however,
consumption
Thus

nearly

36%

all

the

in-,

The spenders,
year1 for comparison,

who

195324

well

and capital

crepancy,

some

allowances."

profess to be conservatives,
accept the-,-present cost of gov¬

the

Even what the gov¬

ernment calls "net national

prod¬

uct"

includes the first three of
inevitable. In fact, far
items.
Such a statistical
thinking of a, sound fiscal these
method
may not be actually dis¬
policy, they are-constantly clam¬
oring for increased appropriations.' honest, but it is certainly mysti¬
fying to the average citizen.
ernment is

from

Already

33%

government

spending,

national: income

and estimated at 35%

Many seasoned observers believe
the best yearly dollar figure with

1957

which

in 1958, has

link'

taxes

national

income, even though this must
perforce include income from.gov-

Created such vast vested interests
that it seems almost

reduce

impossible to

ernment orders.

"National income

spending by a piecemeal by industrial origin" is defined as
approach. Accordingly, conserva¬ net value added to
production by
tives

ore

driven

overall limit

elimination

leges.

present
in

-the

•;

too

much

ideas

economy

foreseeable

advocate

industry, measured at factor costs.
Thus, there is no double counting*

spending and the
special tax privi¬

Such

manufacturing, for example,
only "value added" is used, not
value of output, as the cost of
purchased items is accounted for

limit has, of course,
to be geared
tc the population
and income growth of the
a

principal^--.

Their obligations and liabilities
that under these laws would have to
could be spelled out, the bank noted. ;
bring
Guaranty suggested that
the

expect
future

Creation. of Vested Interests

;

past. "

\It

Federal expenditures down to the

W. G.Nieken Branch
! SAN
FERNANDO, Calif.—W. G.

requirements

collective

bar¬

Nielsen Co. has opened: a branch
office at 907 San Fernando -Road

3% of national income considered

gaining, which is the avowed pur¬
less than one pose of labor organizations, be
third of the amount spent by the met insofar as is practicable ; by
states and local governments in: limiting the labor organization to
exercising their proper functions.- the employees of one employer.
This meant a grand total under
The "Survey" pointed out that
13%. However, concurrently with organizing of employee groups is
an
immediate and scheduled re¬ now done "by professionals sent
duction of the income tax, a good in by outsiders seeking to ex¬
beginning would be to restrict tend their power and their reve¬
Federal spending in 1960 (we are nue by selling their services to
already in fiscal 1959) down to a workers in the plant."
maximum of 20% of total national
The monopolistic character of
income, not the phoney "gross these labor groups is illustrated,
national product." This percent¬ Guaranty said, when:
ample when it

was

under

the

management

Mel

Kidder.

Jobs York Staff
\

■

(Special to The Financial CnnoNiCLK)

SAN

FRANCISCO; Calif.

—

Eugene J., Marty, Jr. has become
associated

with

Montgomery

York & Co., 235
Street, imembers of

the Pacific Coast
He

was

Stock-Exchange,

formerly

with

Jamieson & Co.

"The employer is forced to bar¬
With Dean Witter
gain, not with the workers in his
justify an in¬ under their respective headings.
(Special to-TnBriN.tnctai..CniroNici.t)
own
plant, hut with representa¬
crease in
spending from $11 billion
Even the Truman administra¬ to 16% in 1964. Then we could tives of a labor
SAN JOSE, Calif. — Dale L.
organization that
to nearly $110 billion. The
spend¬ tion held Federal expenditures to have a fresh look at it and
figure may be national or international Donnelly has become associated
ers, who point to higher incomes
15-17% of national income before how much further it could be cut in
scope,
that may cover the with Dean Witter & Co., 34 North
and the necessities of an increas¬ the
Korean "police action." If we and when.
whole industry and perhaps other First Street.
but

country,

these- do

not

:.*

'--—(excluding debt retirement-)-™-^ '
Federal '

State

•Years'... .<;«vr.
1927^-

-r

1932—_
1934

62.3 '

Slate

■

2.6

5.6

12.8

42.5

2.5

4.3

13.5

49.0

64.9

6.7

3.0

$10.5

4.4

$80.8*

15.9

■■■■;

Federal: & Local

i.(li)

; $5.8

3'r

Total

10 7

13'*

1938—_

6.9.;

3.9;

5.3

16.1

67.6

9.2

4.5

5.8

19.5

81.6

.24

34.3

4.5

5.6

44.3

137.7

1944—1

S5.4

4.2

5.4

104.9

182.6

1340—_

b'0.9

6.2

7.0

74.1

180.9

;

33.9

9.4

10.0

53.3*

223.5

40.8

12.7

12 8

66.2

241.9

1952_—

67.9

13.3

14.9

1953—-

77.5

14.1'

•

1954.—

71.8

..15.3

1955—

69.8

17.4

1956-—

72.7

18.4-

1957

77.4

20.4

3953-59

•

292.2

305.6

105.4

301.8

24 <;

; 19.9

" 107.0

330.2

21.4

112.5

349.4

32'

23.4;

121.2

364.0

23tf

12ft

35rf

17.9.
'

41
24
27-'

96.2
'

83.05

Madison Gas and Electric

yfEstimate of

the writer.

^'SOURCE:

NATIONAL INCOME

;

AND

1929—1957
National

■

1936

1941

1>?44

1946—

•

...
!

AND

LOCAL

Sept.

The

Incoiflfe

Government Revenue

$11,258

12.8

8,886

57,057-

11.362

67,531

15,032

Percent

•

Price 100.893% and accrued interest

Tax

1958.

20.9

19.9

104,710

24.983

23.8

"182,639

51,184

28.0

180,900

51.249

28.3

223,560

59,262

26 5

1959_„_______

241.900

69,360

28.7

292,200

91,072

31.2

;

•
_

•

303,600

31.4

95,900

301.800

93,308

30.9

330,200

90.739

27.5

1956

349,400

105.642

30.2

1957

364,000

109,971

30.2

1955

National

No.

HALSEY, STUART & CO. Inc.
SALOMON BROS. & HUTZLER

Survey

Revenue:

113, June

DICK & MERLE-SMITH

THE ILLINOIS COMPANY
INCORPORATED

STERN BROTHERS & CO.

RAND & CO.

MULLANEY, WELLS &. COMPANY

McMASTER HUTCHINSON & CO.

THOMAS & COMPANY

F. S. YANTIS A CO.
INCORPORATED

ALLISON-WILLIAMS COMPANY
October

Income:

Government
letin

the Prospectus may be obtained in any state in which this announcement is circulated from only such
of the undersigned and other dealers as may lawfully offer these securities in such State..."; '

22.2

1948

SOT7RCE:

Company

REVENUES

;

(Millions)

42,547

1935

*'/

;

Foundation.

STATE,

$87,814

—

1932_

' ";-

Year
1929

The Tax

FEDERAL,

^Estimate

Events,

buy these securities,

Due October 1, 1938.

Dated October 1,1958

estimate.

(.'Calendar years—Survey of Current
Business—July 1958.
Foundation, Inc. for fiscal year 1958-59 cited by Human

5A%First Mortgage Bonds, 1988 Series

"Net. budget expenditures and net-expenditures of
government enterprises and
revolving funds, plus benefit payments and expenses of trust funds. - ttotal ex¬
penditures less aid received from other governments.
+Conference Board
;.r

$11,000,000

107.6

16.0'

•

offer to sell or a solicitation of an offer
offering is made only by the Prospectus.

The

] 950—».

•

This announcement is not

1940—_

1948

Income

'it);'-. Totalv

# Govt; spending to'

National : V—auon alTncome^—v

$1.9

4.7

Local-;

(t>

1936—3.5

1942

•

r^-r.^'^Ctoyernpient Expenditures (Billions>
.o"
Fiscal

age, barring a hot war, could be
reduced each year by 1% for the
next four years, bringing it down

of Current

Paul

1953."

Business,

Peters,

July

1958.

"Informational "Bul¬

8,1958

PATTERSON, COPELAND &. KENDALL, INC.

The Commercial and Financial Chronicle

(1458)

Departments

surance

"Are We Meeting the

Challenge of
Savings Bank Life Insurance?'*

operation

recognize
opportunity to do

President, Rochester Savings Bank

the State of New York

points nine

•

after 17
-

76%

force.

already in force
Massachusetts, Connecticut and New York—over $1 billion
—ranks 72 out of the 1,314 life insurance
companies in the
.:
United States.

the

savings

ordinary-

26%

Total

| "

dollars.

New

and

times what it

insurance

and

place

in 1940.

was

Thomas

Hawks

or
cao/

+oT

approximately 60% ol the total,
that are in some way or anothei
^

^in%*eZefiLlTl
These tiguies, I

think, show

that

are

ance.

system

Swinnitiec afforded^ns
portunities
affoided us

the

under the
_

Originally, in 1939, a bank
take applications for only
$3,000 of insurance and keep only
could

banks

the

$10,000,

person

may now have as much as $20,000

decreasing
effect, we have for

insurance on

So,

SnnSArtrV1Ceour c.ustc>mers, a
$30,000 maximum This of course,
exclusive

ppmrinn
agrarian

pnr?

and

the

life

group

mortgagors.

which

i'avorably

with

bank. May I cite two specific cases
which illustrate so well the great

,(5).We know that , the family
un^ *s *be. backbone °f America
e.yertdhing revolvesi abput the
family circle Our product makes

DOten^al

ton

The

compare

the

tue

size

the

which

Drofjuct

Cent
.

witk

168,000

and

900,000.

This

agsets

$320,000,000

The bank 104

t Whitman

was

a modern veroverspending and near-

^upt sta4'

years

Savings

w^n
tional

service.

lAAVPAtTinl

vided

productio.n

(e.

Under such

insurance in
New

our

York

j.i

1957

—

of
gold)

stages

ex-

in the

tr )■

AAtrinrfc

through

Savings

(7)

For

surance

the

FmnPiwf An"

Advances in Bank Insurance
i

lids' year' is°th'e

importance tms year is the ramuy
imporwnce
family

"..l"""1?. lainer. .momer,
premium,

one

policy, for

and,

each

insures

sister,

one

(8)

m^or ^^French
complements^

ideal

income

substantial

very

!;All these innovations
wider market

any

Massachusetts

will

for

u,.

pro-

all

our

u„:

prospects.
advances

whole

new

group

these are great
growing business,
the

lack

100%

participation, Savings Bank
tosurance
ness.

Yes,
in

spite

in our

State

During the past 20

Tn<?uranpp Dprnrtinent

Life

paid

savings

-*An address by Mr. Hawks

have

before the

££

^
Piarid,

inflation

J ;.-

Whpir-'llan

npnartment

2 1,,

Roman

on,

communities

societies

whP-n

srnlp

which latei

Europeam nations and
founded.

were

nnmmPiTP

were

It can't help
but spread throughout the entire

The

beine

bitei%

the freedman Trimalchio.

"doing

was

iv.

•

Oct.

2
•

nicely,

very

mo-

ers had to be "frozen" in their
jobs^which soon became heredH
i^ry .—. another adumbration offeudalism. Traders and merchants
in the economic spnere, like thd;
legions in the military, could only
well

for/themselves*

functionaries;

as-

before

Long

State

often -their

and

status became hereditary.
Pliny's

statement

could

become true, some cause had air
created the • lati/undio, as
as
a
bewilderingly
rapid

ready
Well

trol

cause

en-

(9) Personnel trained in life inw
xcsuiuic1 uaiitum ine iniranoe sales make
n
mak.e good material
fnr fiiTiiirp cunpi'visnrs
Mnrp anrl
for . future supervisors. More andj

suing banks—total: 77 out of 128

taking key

Moreover,

mnrp

Just think what
do with the other 40%!

m.t.u

npnnlp

havp

wnn

p aces

Why Savings Banks Sell

our

nrt

Western

Europe,

nothing

xl(ose

e£fects

^fiation

even

Lombard
much

and

....

once

Italy,
earlier
..

reliable inter-

...

UP; national currency were still felt
are. during the pain/ul period o£ the
banks.
garjy Renaissance, when Europe's

the Life Insurance

P^To
feadv ti MlZ/wn

c.,

pnmo

auu yapcuan

France, during,the feudalt. epochs

l^anizabAn™

—soma 60%.

could

AVfinnfiAnO.

—^—4

4—^nd

farmers,-'

the

support

vingian,

contagious.

Pe°Ple. who hav« come
through life insurance training

t:ji.

in the Sutyricon of Petronius Ar¬

Those effeets endured-.

are

bankers,

o^io

^Js,ahe
^ increasing
taxation, levied mainly
the hitherto

jn„„.rannp.«

mod|rn

Tmer/d

towns

and

cities first

,.e_

rapidly increasing expenditure of
It drove small
and traders out of inde-

the State machine.
ye0men

Pendent existenee.

It,droye^l

farmers into dependency on others

notorious
ihav/xiuuo

their
ixicxi

slavery1
Mdvci;
mme

method

"atfon

with

bigger

larger-scale

Tre Xre

lealuTs^

"flight"
x.xx6xxo

clientism
hiituumu,

genteel

Their

or
wx

by
kjj

into
the
cxx^.

amalganeighboring,
and
there-

nrivileEed farming col-

drovf ^maH

primarily selfartisans
sufficing agrarian feudal society, and traders into simUar "depen-

can er

from

Insurance

Why do savings banks

includes officerships and

enter the

may. give a

ciUe:

(1)

Savings

Bank

Life

surveysTnd

holders we
ciation, and

banks

irigs

th?^h
acco

Life

In-

in my beljef that all
can

accrue

that

feudal

European

society

tbe Dark. Age.s was

a"sav-i strung,; tied- to

'ToUegeT'/f
gui?ds
oc-

e-pmtotype
and trade unions.
j

f Depopulation of the countryside

local

lords

and accompanied the urbanization of

lands' wb®re little money (if any) the early Empire; But as /'intersucbclflaed:
national" trade languished with

through Its Life Insur/
Department because

y> indeed'tbe State Theory the progressive inflation, unemin many banks in Massachusetts/ of Money was-never so true as It pioyment became rife inside the
Connecticut and New York. But ~aper presented by Mr. Hutton be- cities, which now shrank behind
naturaHy I am most aware, and1 fore the. Annual Meeting of the Mont their new and narrow walls. As

Hiings have already

oroven

lifetime
with

firm

these benefits

ance
ha^ been

:statistics

have

tJrges Participation'by All

Insur-

mSt

one of tte
of saving which

reJponsi- eTwInceTdducedTy s°ch reho/arl Tollectivls"
as^ Dopsch^ and PirennTufs ctem cupattonl i.

supervlsory posltlons',

dissavings an^holds^dhemS^if^hisura^fc^S

yeLs

—

•

Roman: Imperial

you

„—

years

premiums

Insurance Department
fcanks in all but two

****

At this point, may I
again that only 48 of
i
our savings banks in New York
C+o+^> u
State have Life Insurance Departments, and only 29 others are is-

yearly has lisen above $10,000,000.

jjfew. Ygrk,. Lake

nntofTWi

iS ^ *2*
- S^i<S%dnX
IT1
^! .fertHJof the Roman inflation in
Savtechnioues
fostered and-.breaking down cities and large-

York.

r/XaBaynfT5?°T0'000 WOrthand
o£ t£ IS SneSS?
volume

civil administration re^.
- became/ monolithic

nance? and

The

successful',?sh,oned the local,, feudal, agra-

oiamu

ooTrlnrt.

nnr

big busi-

polte/mldCTs3'have 6 bought^'apthe

Increating taxes. They had to "be
raised so high because most bul.k
trac*e> tmnsport, defense, law, fi-;
way of

XltipRcation
of rigidities, coPnand controllers.
That

Pf
So

York State.
remind

ineffi-

and

l"Ufl>ndi"

and
assets which

associated

ings Bank Life Insurance business
if we capitalize on the
opportuthe mty at hand. -1
don't think-that

banking operations by bringing to
honlr
.a

are

with

are

as they are, are any better
merchandisers than we in New

bank

intolerably

ciently burdensome, by

^opo^|:) Urhan^and rural work--

pire.

product Safes traMng

sales enthusiasm

jWiciease
in premium, no matter capable
how many.

nnovn+.'o,^

Insur-;

c'ea'-cut effects

some.

Inflation

Empire's State expenditure

extra- bonus,

newcomer, to

family automatically without

hanlrino

The

Roman

et-

New

increase

low

Life

Bank

^"w^how- aXtaowledle. so,?iety-

LT*capita

Savings

ThU

mean

Furthermore, the average per
caP1Ia income in Massachusetts is

The

fin°m thp"fonouJrar Pla°nfa^et thank y°u" 0ut of Imperial

did in

$37,000,000.TlFwe'could'do as"

parvenu,
Rnmnn

against

pro-, well
per capita
it would
tection to pay mortgage payments
annual sales in New York of
after the insured dies.

^ ;

C to to

merns Dy Koman ^mpeiois-, /vn-

Bank

depositors, life in-'

our

•_

than

$50,000,000

became
trading

gustus to Honorius.

production

certain

than three main conclusions
about the caiisES" and effects of
the long, progressive inflation of
the Imperial currency from Aumore

3 as a^i c<sitam stages in ine

Life Insurance Loan.

Let's

go a
step further-in Massachusetts in:

Hi.nwrv
Hiinearv

LppIy

the

money

receive his check. Many a down>
payment on a home has been pro-

the facts—we simply

are

wo^ °o the economic breakdown

(6) Although we
are unable: tomorselessly
1/Annc

the first savings bank in

cannot ignore them.

*_'o

Germany

Lank Life Insurance is an impor-^.

tant community

Bank>

when

money madly outruns
Qf goodg and services.

fants ^ve no insurance at the.
Jim€: of application. Yes, Savings;

old—

tqas
iq4=

1944

m&s. Bank Lite Insurance appli-,

the country to offer Savings Bank
Life Insurance.

These

in 1870_7i is only

independent >sjony.

fa^e C0S/S' ?wei ilTw
f"
ships, etc. Some 30-40% of Say-

ac-"

savings

life insurance department 30 years
old>
' '
The

and

century, when it was beleaguered
j.y Visigoths; and the case of Paris

munity,
resulting
in lower wel- a^ter
farp
rosls
fewer finanpial" hard-

Savings

has 61,600 life insurance policies
for $71,000,000 with assets of $14,-

airunation, provides low cost

brother in

and operated under one main sys-y
tern
of international
international commercial
commercial-;
tern of

•Apollinaris Sidonius refer to it'in. of the Roman Empire; but in the
his Clermont-Ferrand in the 5th end one-will come away with no.

turn tee solid.family

Five

counts

stable

'•

quently in besieged cities (Bishop

units impart stability to the com-"
com--1Q91
nTfp
iq91

Boston

Bank

msur-

mortgage

group

as-weak/

was

...

insurance
at low rates, without medical ex-

power

S^jnized-society, ussedr/d^-iiiterns-- -;'
tional trade, in its turn based
upon one main currency standard,;:

only institutions" to

the

King's

3Z-: Peninsular fand.

tu.

are

the early days things started slow-' of a
savings account. :it provides:,
savings_ bank, jy but now the savings banks in immediate and
continuing protec- ' "
/
■
L*/
Even our group coverage has re-;
Massachusetts, a state with a tion during the time it takes small
The longest, progressive mflacently been broadened, which per- population
only one-third the size and regular savings to grow into Hon of a single-standai d currency
mits us to offer group insurance
0f New
York, sold 35% more life a substantial deuosit account • • : 1 know is that of the Roman Emto nnr lnnrtpfaffnrs
TTnrlpr siiaI-i
to

issued

The

vide

ban,

At the present time savings-

(4)

It.

United

the

partments

uaIaia

gun.

addition

-in"
in * svailahlp
available

+"iaH
fall

and life insurance.

under

mor t gage

liberal limitations have prevailed we find life insurance de-

not yet

aW/
/
J
The big growth of Sayings Bank
Life Insurance has really just be-

the

♦,

sav¬

ings banks,

companies

therefore

has

urban labor supply; in the Iberian Jaw One can plunge^deep into
later,
Roztovtzeff,
-Peninsula (and, latei throughout
thioughout O e r t e 1, Brentano,
Tpnnpv
Prpnh.
wal
States have over a billion in force, offer
the
exclusive
package of Europe) alter the influx oi gold
a '
it
w.L- rnin1'
if
In
Massachusetts, where longer three outstanding savings services: and silver from the New World
'
aiai+ V
experience in life insurance and savings accounts, mortgage loans ln /be sixteenth century; Ire- ad
1
^
^ ^ /

bank.

nolic.vholders.
policyholders.

;-ioaa

.imn

the

another

York

Only 72 of the 1,314 life insur-

ance

with

business

our

lord

™

have an almost exclusive feature..r.- ..
The nutomstic psyrnent of preIt is found with the- growth of
nowmiums from savings accounts is an towns/in ■later'-medieval Europe
to more than one billion exceedingly
attractive
arrange- after the Black Death of 1348 and
The
1958
total
is
five -ment for many of our depositor- the consequent rise in wages and

amounts

—

life

plan,

"The

but the King has the Arriere bail!'''

;

Savings Bank Life Insur-;
force
in Massachusetts,■*

Connecticut

are

sell

apce

Europe.

icies taken out during the past 10/ahd

cince

Agency Banks

Only

Mexico; in ancient Greece; in as his money arid trade. Tha't is,
years are stl11 m torce*
; ' ■
thef Romdh ^Republic and in the the truth of feudal society.
Only
(3) Savings Bank Life Insur-^ classic case of the Roman Empire,
The Dark Ages and early medi-

policyholders.

so-called

term.

.,,,

De¬

m o r e

A continuous and rapid rise in was in the small societies, petty
prices'is the clearest ipaTrifestatioir sovereignties, and little trading /
of the savings; 0f progressive ^ inflation.
It has areas
or
markets
of / medieval
.

128

partments

have

that

found

to net gain in New York State

in this State of

that

period were still ^occurred in-..many, countries in
Overall, some 85% of all history, and in entire civilizations:
Savings Bank Life Insurance pol-: ^Qng others; in pre-historic Peru

been among the top four insurers
as

New York, .48
have Life In¬

and

banks

surance

sur-f

open.

We are "approaching the 20th
anniversary of Savings Bank Life
Insurance in New York State, and
statistically this "
"

of the policies were still;in.

accounts of that

than a deterministic fate, if-we choose to restore
long-run
reliability to our standards of value. Concludes planned, pro¬
gressive inflation as a social policy, ends in unplanned, un■;//j>/' wanted, inescapable, and unforeseen disaster, cl?

in the life in-

years

business

surance

the life insurance field and reports insurance

One bank conducted

nated.
vey

have

why savings banks do and should enter

reasons

;

publicist shows how inflations in history* from Rome
to Germany, have beenruinous. Although
suggesting similar
prospect faces us now, maintains we still have a choice rather

Bank...••Life
stable, longgrowth product which in-;
creases
each year.
During 1957
.only 1.7% of Savings Bank Life."
Insurance was voluntarily termi-;

Mr. Hawks pin¬

London^ ^ 'kifo

term

Savings banks are warned that if they do not fully participate
in savings bank life insurance that they may find the
privilege;

GRAHAM BUTTON*..

Author;: and' Econdmi
•'

Savings

surance

given to other institutions in the thrift field.

;

British

(2)

;

Inflation—Past: Present: Future

the

etc.

ers,

Chairman, Board of Trustees, Savings Banks Association of

already

unusual ■:
new
banking
business with present policyholders. They may become
mortgagors,^
depositors, sate deposit'box rent- ■ "

By THOMAS H, IIAWKS*

.Thursday, October 9, 1958

Continued

come to pass

page

53 sept"3

to°8,ei958!rinceton' New Jersey'

' Continued on page

.Volume

188

Number 5784

The Commercial and Financial Chronicle

...

(1459)

IlifVAfliiiIkiii a!

'Jmm

V«Itllvul IM

This

rSDSlBll ffUlKlS

By JOHN C. HEIMANN*

rewardmg
utilize

Pension Fund Investment Department

Rapidity in the rise of private pension fundsand increasing

to-

those

who

best

sate

the

existing opportunities,
example, in the investment of

For

Smith, Barney & Co., New York City L

process of multiplies- _"real" obligation established 2Q, or The answer can be found in.some
automatic,' but it is V'VV."
even '10
years
J-v
jf
cfli».r ago,
agu, r
r the
wic
trustees
uusiccs
t>ui
sort
i
UJL
of balanced
uaiatiueu
pui
portfolio,
LIUIIU, urn?
one iu
in
can
can he
be most must find some way,,
way. to compen- which both fixed income securi-

an<*
..--/r.''-5to al 1 and

•-

pension

fund, one-half

the

come

12%

Obviously, ties (bonds,3 mortgages, etc.) and
can

only

equity securities (common stocks)
play important parts.

from two sources:

(1)

The employer will be
stan-tly "hit" for increased

trend away from insured pension contracts to self-investment
f ^ ;
will mean
plans prompts Mr. Heimann to describe the 4>asic mvMineitt ii;; ^ in the fund over

for this problem.
additional money

con-

SEC

con-

25-year period!

Investment

Table

The national trend is distinctly
in
this direction.
Recently, the

{ri^u^iorlS to. compensate for the

increase

Securities' and Exchange Commis-

published

the

;

investment
pension

of: self-insured
summarized

steady growth of common stock; stresses nd two funds
alike; and suggests union officials be mere familiar with
vestment matters

this increase will mean lower
long-term costs. It is obvious that
increasing the earnings of a pener,

are

in¬

because of their increasing
fiduciary respond
to statistical projections- of private funds-

sihility. /Turning

Of:

at
H The

present rate.

private

pension, fund
product of the

tant basic fac¬

tor

has

the

.the

been

desire

American

.worker

for

good standard
of

living after

retire ment.

Simultaneous¬

a s

and

power

membership.

dignity of its

funds
have
grown
they now total,

ap-

ge
these

will

reserves

billion

and

amount

1965,

the

Translated

people,

into::

.these

.funds

numbers

private

cover

workers

million

some

pension

directly,- and,
if
you
dependents, they af¬
,

-include their

60 million

over

people. Obvi¬
administrative respond

ously, the
sibility for these funds is of great
importance. The individuals who
have
trust

accepted

this

position

guardians of the

are

their fellow Americans.
The
of

ultimate

any

directly

of factors
the

future

djga!ty of
failure

pension .fund

upon

number

including such problems
the

accuracy

actuarial

calculations, the control of administrative

costs

and, most imporus
today, the investment
policies applied to the fund. The
tant

the

end

the

years

It is important to point out
that all of the various tasks rela¬
administration
must

performed

well if that plan is to be a success.
"No matter how well the
actuary
has performed his

role, if the in¬

"fund

policies

are

applied

the

failure, then the plan

were

overlooked.
the

Insured

Plan
two

methods

pension plan

bargaining has been

pleted

and
a

the

talk by

plan
Mr.

once

lective

*From

written
Heimann

fi-<

col-

1958.

York

since

power

1946.

able

to
of

process

that the fund

compensate

into
before

City,-Sept. M),

4,770

24.8

584

3.0

4,187

21.8
l.<>

.4,3

dollar

will

This reported Junds.

lor

Since the

Continued

depreciation.

Orgahized and ivholly owned by the Mutual Savings Banks of

1965,

pension

$51

fund

billion.

trustees

The

will

problem, important

now,

problems facing the pension fund
the funds

tinue to increase.
At

present,

self-insured
controlled

funds

unilaterally

matters

of interest

man¬
\

desire

management

billion.

leaders

for

expressed
increased

PERRIN

voice

that

his

say

for

trend

growing

rapidly.

Therefore, since the union offi¬
are likely to assume increas¬
ing fiduciary responsibility, it has
cials

become

derstand

imperative that they un¬
something of investment

matters.

More and

called

ment

upon

they will

select

invest¬

advisors, pass upon the ad¬
offer, and finally, judge

vice they

whether

the

advice

has

they

been

have

good

these

invested

portfolio reaps large re¬
wards, the union official has a
new
job. The basis for this new
task

money

JAMES

pension

The Dime Savings

Bank of Brooklyn

KAISER

President, The Williamsburgh Savings Bank

Savings Bank, Rome, N. Y.
CARSON

Brooklyn, N. Y.
J.

CONWAY

WILBUR

LEWIS

President, Union Dime Savings Bank
New York City

WILLIAM

LYON

President, Long Island City Savings Bank

President, Dry Dock Savings Bank

Long Island City, N. Y.

New York

CHARLES

DIEBOLD

City

MACFARLANE, JR.

KILGORE

President, The Western Savings Bank

President, Buffalo Savings Bank

of Buffalo, Buffalo, N. Y.

Buffalo, N. Y.

JOHN

EDWARDS

JOHN

MILLET

President, Eastchester Savings Bank

President, The Troy Savings Bank

Mount Vernon, N. Y.

Troy, N. Y.,

BRYANT

GLENNY

RALPH

MILLS

Chairman of the Board

President, Yonkers Savings Bank

Buffalo Savings Bank,

Yonkers, N. Y.

EARL

Buffalo, N. Y.

HARKNESS

GEORGE

President and Chairman
The Greenwich
THOMAS

HAWKS

New York City
DANIEL

ROWE

President, Kings Highway Savings Bank

Rochester, N. Y.
J.

O. NODYNE

President, East River Savings Bank

•

Savings Bank, New York City

President, Rochester Savings Bank

WALTER

Brooklyn, N. Y.

HESS

EARL

SCIIWULST

President, Ridgewood Savings Bank

President and Chairman

Ridgewood, N. Y.

The Bowery Savings

JAMES

HARRY

HUGHES, JR.

President, The Savings Bank of Utica
Utica, N. Y.

Brooklyn, N. Y.
JOSEPH

President, The Community Savings Bank
of Rochester, Rochester, N. Y.

the invest¬

their

Chairman of the Board

BARNARD

JOHNSON

GEORGE

Chairman of the Board

membership

over

LESLIE

CHARLES

ly stated during UAW-Ford nego¬
tiations

BABCOCK

The Rome

man-

"
~
Walter
Reuther recent¬

agement.

New York City

Onondaga County Savings Bank,
Syracuse, N. Y.

management
of
which are presently

funds

President, Savings Banks Trust Company

Chairman of the Board

investment

those

IHLEFELD

AUGUST

President, Jamaica Savings Bank
Jamaica, N. Y.

* some

strong

ADIKES

JOHN

Furthermore, union

have

exclusively under company

Directors

so,

investment

the

the Savings Banks Association and its

are

union officials and truspresently have a voice in the

$2.7

all
'

agement in matters of investment.

Even

trus¬

research body and clearing house for information

members,

pension

as a

sav¬

con¬

85%-90%

also

tee;

win certainly be one of the
major
trustee by 1965

depositary, correspondent, investment consultant and

investment

•

Bank, New York City

SMITH

President, Newburgh Savings Bank
Newburgh, N. Y.

be put to work

nrnfitnhiv

com¬

2S.Ni^fLSi*FSiluSStataXt'
Trustees; New

aad

purchasing

be responsible for the investment

!none of them

Even

ings banks' bank, serving them and their agencies exclusively

reasons, plus the.
incontrovertable fact that a well

'hancing

its

Therefore, by

For

can

3.2

19,319

receiving

versus

50.5

611

833

Assets.

of all
insured.
The

bad.

are

Assets

Total

1957, 42%

been

There

Other

3.3,

9,751

313

•

must suffer.
All of these parts
'must complement each other and

Self-Insured

Mortgages

New York State, Sayings Banks Trust Company is the

This

vestment

;

companies

The trend is distinctly away from
the insurance contract in favor of
self - investment.

funds.

inception but also dur¬

the

Stock

company

Other

10.5
53.5

comparative

yield than of economic judgment, !'

predicts that by i 1960
of all pension funds will
be insured and by 1965 only 34%.

not only at

fund

sults.

—

Stock___

Common

1.9

2,032
10,392
641

_____

companies

»nd

some

the continuing
fund's existence.

pension funds

made

,be

Total

368

Securities

company

Other
Preferred

(2) The fund can enlarge itself
through superior investment re¬

the^ responsibility of Thus, to fulfill the funds original

desired

pension

Own

„

Own

deposits__I_

Govt.

investment problem be¬
the Trustees' since

ments

tive

would

grant

and

Corporate Bonds

that of

ultimate results of the operations
of the fund will depend upon how
well
these
tasks
are
performed

ing

because

Growing Investment Problem

tees

success

individual

'depends

2 only 38%

c^nUrifv,e
Commission
that a£
by

selection

Cash

they

Millions

SEC has extrapolated these fig-

astronomical total of $76.9 billion.

fect

the

$4
uures

$46.8

problem

sion fund.

that

hniinn

„

•■Is

pm'hlnv

;

MS ofcrowtW 'over
1960

effectively before
further increase.)

Self-Insured

1957

Book Value
"o of

be expected to investigate
why the accumulated
have not performed more

can

for
■/

they -assume a fiduciary respon¬
sibility in relationship to the pen¬

Within two generations, private

investment

comes

John G. Heimann

collective bar¬

matter

Th^

Funds

100.0

—

then

is, to
in¬
creasing the

rapidly

1/1+1

point

'•

the insurance company.
However,
if the plan is to be self-insured

pension^

problems

maximum

Dlvcrslfieation

Pension

carefully

matter of relative yield, then the
more

Investment

this becomes

the trade union

»/.

trust fund. The first

merely

many

them

though this increase in
Average Yield
3.84'fc.i
method is called the Insured
Plan; But this is not the case. The in- the cost of living is the villain,
the second the Self-Insured Plan,
flationary spiral and subsequent the fact that pension fund trustees
source: sec.
Which method of operation is depreciation
in the purchasing can identify it does not solve their
1
I would like to point out that,
most feasible " for the individual power of the dollar must
strong- problem. Something must be done
as in most statistical studies, there
fund is a matter which should be ly affect the investment selections to protect the
beneficiary. On one
decided as a result of the studies of pension fund trustees. The cost hand, we can work within our are certain inclusions which dis¬
tort these figures.
For example,
and calculations prepared for the of living has been growing at an economic framework to
attempt to
the study includes the Bell Tele¬
Board of Trustees by the fund's annual rate of 2% per year since control the so-called
inflationary
phone
System
pension
funds
Stated
actuarial counsel.
If the insured 1880.
another
way,
the spiral. But, in terms of the penmethod is chosen, then the trus¬ dollar has lost half of its purchas¬ SsiorTfund"
sion tuna trustee,
trustee' ne
he must
musAnveTt
invest which amounts to $2'6 billion- ap*.
total
proximately
13%
of ' the
tees need not be concerned with ing power since 1939; a third of his
the

farce has been

gaining

contract; through the utilization of insurance companies or
by

were

for

industries, the
fringe benefits have

of nnvrntr

ers

funds

investments

money

ly, the most
;importa n t

dedicated,

But in many

Dercent

gaining table.

the

establishing

fund, within the limitations
safety, is of immense benefit

It should be
immediately pointed
out,' however, that if the selection

;

unique by eco*
homic factors and forces at work
Within our industrial
system. The
mostimporV
.

■>-.

years.

reached

to both sides of the collective bar::

by most unions

cost for these

Sion

growth, he finds they now amount to $33 billion, will rise to
$46.8 billion in 1960 and $76.9 billion in
1965, and trustees
in 1965 will be
responsible for an investment of $51 billion

lowed

Yield Must Also Offset Inflation

Money is

commodity. Unlike

other commodities such

barley or corn, money
tiply itself when stored

.wheat,

can
as

mul¬

invest-

SAVINGS

BANKS

14 WALL

TRUST

COMPANY

STREET, NEW YORK, N. Y.

BeR

page

The Commercial and Financial Chronicle

...

Thursday, October 9, 1958

(1460)

Capital

The Matter of Private

We Cannot Aifoid Not to

tion

most

the

available

Loan Fnnd

The Development

Development Loan Fund,

Managing Director,

Head of

Fund's

Mcintosh denies there is any
or

loan-pace will in

instrument of the foreign pol-

through
the

States

extends
nomic

eco¬

assist¬

minds is today at its
Let

countries

continuing to increase. Some 2,300
Communist technicians are on the

throughout

job in

the

and

deve loped

free

world.

the

basis

of
Dempster Mcintosh

mutual coop¬
eration is the
.

Fund

principal purpose
Development Loan
created last year by our
..

was

„

the

Congress.
When

the

less

developed countries of the world,
talk

two-thirds

about

earth's

people.

Typically,

United

the

their

States

the

Western

and

in the oil producing
countries of the Middle East, leaving very little for the rest of Asia
that, while
we must continue to explore every
means both inside and outside the
Government to promote a greater
mean

Governmental means.

mind that the Congress authorized
of great and urgent con- the establishment of the Developthe united States.
We ment Loan Fund in the fall of last

In so doing, it made unmis-

unquestionably, under any year.

ourselves

to identify
aspirations of

want

circumstances

with the

Is clearly important to the United

and

It also indicated that, under the
DLF> certain important changes in

their

freedom

political

means

strengthen their economies.

States.

Eu¬

grinding poverty for most
people.
Their food in
is barely adequate to

these

:„

most

„

cases

sustain life. Their life expectancy
is roughly half that of the

abroad

sistance
.
„

„

toward
toward

the

the
tnt

„rn„1(i

immediate

our

assistance to be provided1 henceforth by the
United
States is to be
j.
•_. ,,n„u
on a

j0,70iAnmnr.f

loan basis; each development

pr0p0sai js |0 be thoroughly

ap-

praised by the Development Loan

Poor Countries Do Not Buy

While

stand¬

less developed areas of

living

cornerstone

nolicv
policy

States
states

united
united

developed countries.
disparity in

24 years
our

of performance; and declares

our foreign policy and
will be strengthened by maintaining a strong

economy

the

From

Spring of 1953 until
1, 1955, in my capacity as an

Oct.

economic
ment

retary
in

officer

Fund in terms of its technical and

objective

•

help impiove the economies

economic merits; and the DLF is
.

make

loans

covering

the

October,

the

rectors.

present day, by the following
Directors: Lynn U.
Stambaugh,
Hawthorne
Arey,
Vance Brand, George A. Blowers,
and myself.
That same October,
1955, we
had the first meeting of a new
Advisory Committee which, under
the
revised
legislation,
is ap¬

di¬

How-

was

until

the

late

Summer

of 1955—after

pointed by the Board of Directors
upon the recommendation of the

announce¬

ment had been

was

the

that

Samuel

and /

Chairman

—

little

known

Waugh

that I

the

realized how
in official

even

Washington as to the operations
Bank, despite the fact that
had

been

tion for

successful

opera¬

than 20 years.

example, an Under Secre¬
a Cabinet officer congratu¬
lated
me
on
my
appointment,
saying he was sorry I would have
to leave Washington. It developed
that he thought the Export-Import
to

located

was

New

York.

despite all the work that
has been done since to publicize
the

Bank

States

throughout

the

United

during the past three years,
wide lack of under¬

there is still

standing

to the Bank's opera¬

tions.
the

last

few

between these

countries and

is not

our-own

being closed under
In fact, the
conditions.

millions

of other countries and to raise the

standard of living of their

months

soecific

irnot

OTo^cts aiiTDroSams
f0 lnocate
STin

ogmzed that growth in the less
developed areas is long-range by
lts. *?a*uJ!e when it made appro® funds permanently availthe fact that Germany, in 1950, at f. ?e J°+? e £} if' when it estaban early stage of her startling Ilsh^d the DLF as a revolving
recovery, purchased $439 million
?1d when it relieved the
°* goods, exclusive of foreign aid, P
the requirement, common
from the United States in 1956.
other Mutual Security ProAfter the German economy haci krams, to obligate its funds by a
shown remarkable recuperative sPecitled time,

self-evident. There is no need to
poverty
remind you that a country which
or
less uncomplainingly because is healthy economically is also a
they knew of no other way of life. g°°d buyer. Let me only mention
Time

people who lived in
accepted their lot more

less

stood

still for

those

people. But the old order
has changed. Modern communications, the wider diffusion of education, contacts with people from
advanced

the

case

countries

and,

some

countries,
emergence from dependent status,
have

awakened

better life.

oped

the

are

provement

for

<»

People in underdevel-

countries

world

desire

now

few

their

standard

decades

but

prac-

Communists

are

not

un-

opportunities

for

penetration provided by what has
been
called
the
"revolution
of

rising expectations" in the underdeveloped areas. In three years,

order

make

advancement

any

signifi-

economically,

the

array
nu

the

*rom these other sources,

cant

Meeting the Soviet Challenge
of

plants,

im-

TVTppfinp-

The

less developed areas require
capital for roads, dams, manufacturing plants, electric power

Congress has enjoined us from
competing with private mvest^pit and other public lending instations. We extend loans only
when financing is not available

the

demanding

tically overnight.

mindful

powers internally, private firms
I should emphasize that the
I? Ihe United States sold $750 mil- DLF is conceived of, and run as a
Ii°n worth of goods to Germany, supplementary source of capital,

throughout

living and they are determined to
attain these improved conditions
not

machine tools—a vast

of the

means

of production.

velopment Loan Fund

markets

was

three

hundred million dollars. Recently,
Congress appropriated four hundred miUion dollars additional so
the Fund is now operating
with a total capital of seven hun-

the Communists have extended to

nental Europe. For it is a fact of
economic life that when produc-

dred milIion dollars. This is a
substantial sum, but in my opinion' the Fund wiU need large ad-

"^aT

tion is barely adequate to main-

?Itlonal appropriations of capital

The

York

address

Overseas

Mcintosh

Aut^m^e

city, Sept. ii, 1958.

Ciub,
.

before

New

tain

life,

divert into

London

little
new

and

Conti-

available

investment.

sonable

loans

should

assurance

offer

rea¬

repayment.

During the summer of 1954 the
then
Under-Secretary of the
Treasury, Randolph Burgess, and
I —in my capacity as Assistant
Secretary of State—cooperated by
request with Senator Capehart,
who

determined that the Bank

was

should

and re¬
Capehart, then
serving as Chairman of the Senate
Banking and Currency Commit¬
tee, introduced legislation to pro¬

vitalized.

vide

for

reorganized

Senator

five-man

Board

Directors, a nine-man Advisory
Committee, and an increase in the
Bank's

borrowing
authority.

and

lending

Little did I then realize that in

The original capital of the De-

necessary
resources
must,
however, come from abroad, just
as a significant part of the
capital
which
helped
to
expand
this
country
during
the
nineteenth
century - came from the money

The

Directors

in future years lf lt ls to achieve
Continued on page 52

the

year

I would

be asked

by President Eisenhower and Sec¬
retary Humphrey to go to the
Bank. I accepted the appointment
with the understanding that the
activities of the Bank were to be

stepped
United

in accordance with the

States policy decision

nounced

an¬

Secretary of the
Treasury Humphrey at the Meet¬
by

*An address

Export
Sept.

by Mr. Waugh before the
Managers Club, New York City,
1958.

for

Advisory

day,, discussing
the Bank's record and problems.
a

Advisory
Committee then
in executive session and,

The
meets

when

deems

ad¬

necessary

the members
delineate
their findings in writing for the

Directors.
nine-man

The

Advisory

mittee serving at the
fiscal year 1958 was

Com¬
close of the
composed of

the following:

John

Chairman

Virden, Sr.,

of the Board and President of the

Manufacturing

Eaton

Ohio,

Cleveland,

Chairman of the
Wallace M.

Hibernia

the
New

Within

with; the

meet

Committee

visable,

For

Bank

custom has developed that
Directors, officers and division

chiefs

(

of the

The

President

was

of the Bank.

President

a n

1955, and since then
been managed, to

has

Bank

five full-time

not

the

of the ExportImport Bank's

m a

and

member

the

Finance

ex-of-

capacity

State, I represented Sec¬
Dulles

e v e

of Ministers

Economy of The American States

November, 1954.
^
The membership of the Board
as now constituted was organized

board

ing

Brazil

Depart¬

Cabinet officer asked me, "When
and
are
you
fellows going to stop
peoples
its
advance
giving away money?"
present
on the basis of self-help and mua
counh-v Lsk
While there have been several
United Nations estimates that the
tual cooperation, I do not need to on a countl y Dasls'
gap is actually widening.
point out the resulting advantages Repayment in Foreign Currencies structural changes in the legisla¬
tion authorizing the Bank during
Poverty, disease and hunger are to the economy of the United
In order to enable the Fund to the
past 24 years, the basic pur¬
no
novelty to many of the peoples States.
The opportunities for adapt its loan terms and condiposes
and concepts have never
of Asia, Africa and some
parts American business which would
been altered: (1) the Bank should
of
Europe and Latin America. be presented by a modest increase !ion? *° * e actual capabilities of
and encourage and
What is new, however, is the real- in the purchasing power of each Jjf borrowers, the Congress au- supplement
ization that relief is possible. For person among the teeming mil- thorized repayment in local cur- not compete with private capital,
centuries most of the hundreds of lioris of Asians and Africans are rencies where warranted. It rec- and (2) in the judgment of the

ards

ficio
a

And

highly

The

a year ago. To protect
future, Mr. Waugh suggests certain safe¬
guards be imposed upon these organizations. The Bank's prin¬
cipal officer deplores the lack of understanding of £x-Im
Bank; recounts the institution's important changes and past

takably clear its view that the
growth of the less developed areas tary

peoples everywhere and we
would want to help them preserve

free

Development Loan Fund

Ex-Im Bank's

ihe

and active Bank.

It was with this background in

would

the creation of

Ameri-

pies in the underdeveloped countrics of
wor^ Would still be
ma^er

is expressed about the possible effects upon the
Export-Import Bank by its bead m view of plans to npport a
Middle East Development Fund and a Latin American bank,
proposals to increase the borrowing quotas of IMF-IBRD, and

fiercest.

facts.

This low level of production

rope.

$2,300

some

substantial amount of capital by

product
per
person
amounts to about $200 compared
about

cite

ent, the economic future and the
economic betterment of the peo-

Concern

op¬

outflow of private investment, we
face the necessity, until we succeed in this effort, of providing a

annual

many

challenge is real and
However, even if
Soviet threat were not pres-

cern

about

talk

other

met.

must
the

for which

countries are being trained

Moscow,

The Soviet

on.

self-help and

the

Prague, and
centers of the Soviet Bloc.

development
assistance

less developed areas, and Africa.
about
2,000 students from
These statistics

these

The

extension of

By SAMUEL C. WAUGH*

President, Export-Import Bank of Washington

This devel¬

previous and it is centrated

been two years

to under-

ance

countries need.

Their trade agreements with the however, of total new investment
less
developed countries
haye in 1956, totalling about $2% biljumped from 49 in 1953 to 147 in lion, the less developed countries
1957, a gain of nearly 100. Last of Asia and Africa received only
year the trade turnover between $342 million—about one dollar out
the Soviet Bloc and these coun- 0f eight.
Furthermore, the great
tries was 50% greater than it had bulk of this $342 million was con-

agencies

United

these

development, pressive total of about $33 billion;

loans for economic

icy of the United States Government
and
is
one
of
several

which

the

for the
capital
which

less developed nations nearly $1.7 can private foreign investment
billion in long-term, low-interest (long-term) has reached the im-

Fund is

The Development Loan
an

being

portunities as exist. The fact is,
however, that private capital has
not yet proved willing or able to
do
the job in the areas where
poverty is the greatest, where the
drive for growth is the strongest,
and where the battle for men's

ized to date and necessitate going to

Operation and the Fntnre
Of the Export-Import Bank

source

would avail itself of

few months exhaust $700 million author¬
Congress for additional
funds early in 1959. The managing director anticipates lend¬
ing volume in future years at around $1 billion per year, and
stresses that not capital alone but expanded trade and tech¬
nical skills are necessary also to help underdeveloped areas.

the

single

investment

prise. All of us are aware of the
great advantage of private in¬
vestment, and would hope that it

U. S. A. chartered organizations, or with private
investors. A review of activities leads to the prediction that
ally

position

new

government or by private enter¬

and criteria employed. Mr.
conflict with existing internation¬

policies

loan

scope,

The

opment capital to be sent abroad
can
be provided
either by the

Development Loan

by Congress, describes the

ized last fall

Washington, D. C.

lending organization, author¬

latest international

our

the

principal

McINTOSH*

By DEMPSTER

for

na¬

capital
export, the United
with

world,

has been thrust inevitably

States
into

industrialized

Company,

who served
Committee;

Davis, President of
National Bank in

Orleans;

Bryant Essick, President of the

Manufacturing

Essick
Los

Company,

Angeles;

Vice-President
of The Hanover Bank, New York
Robert P. Furey,

City, past President Bankers As¬
sociation for Foreign Trade;
Charles
dent

for

tions

Meyer,

Latin

Vice-Presi¬

American

Opera¬

Sears, Roebuck and Co.,

Chicago;
Michael Ross, International Af¬
fairs

Department

American

the

AFL-

the

CIO, Washington;
Charles B. Shuman,

President

Farm

Bureau

Federation, Chicago;

Graydon Upton, Vice-Presi¬
Philadelphia National

dent of The

Bank,

Philadelphia,

President
£or

Association

Bankers

Foreign

Trade; and
George W. Wolf, Chairman of
the National Foreign Trade Coun¬

cil, Inc., New York City.
have

gone

into

such

detail

with reference to the Bank's Ad¬

visory Committee because I want
to refer to the first resolution that
out

came

held

Oct.

18,

their

first

1955: "(1)

meeting

The Ex¬

port-Import Bank should endeavor
to arrange for belter public in¬
formation

order

that

there

be a better understanding
of its policies, functions and oper¬
ations."
Following this meeting
there was employed as a Special
Assistant to the Board an experi¬
enced
newspaperman
to handle
the
Bank's
publicity, news re¬

might

leases, and monthly, annual and
semi-annual reports, all of which
had

the

previously been handled by
Secretary's Office. And today,

Continued

page

Volume 188

Number 5784

...

The Commercial and Financial Chronicle

THE MARKET

popularity, but even the gen¬
eral strength had failed to
spread to Consolidated Foods

AMD YOU

...

(1461)

which had
an area

By WALLACE STREETE

been

their

•

bull sales doubled in the last dec¬

uphill, troubled ade but the $33 million gain
only by occasional mild profit- included only a shade less
taking this week. - Leadership than $6 million from the in-*
rotated
so ; that
when; one crease in carbon black sales.
way

;

good-acting

another

rest,

group

paused for:

was

able

Back in Favor

•

; no

chart work of the past can General Motors

•

after

had

succeeded in

putting a couple
highs appearances to¬
students were watching , the gether. The company has done
various technical aspects of a superior job of holding up
the market for a clue to the its profits, at least to where
future. And so far few danger the dividend is covered, while
profits all but disappeared
signs are in evidence.
indicate

;

sistance

probable tops
levels,

;

the

re-

market

stranger to

new

Foods

market

neglect.

In the last half dozen years its
annual wanderings have been

two to three

point

Top Analysts to
in

Wdiiga*

The First of Michigan Corpora¬

Wall

its covered dividend. City, has

Street,

New

Investment Series

York

announced that William

The annual fall series of money
by the Federation of
Women Shareholders * and the

S. Gilbreath has joined the firm's
New York office.
Mr. Gilbreath

matinees

will

Public

in the Sales Department
institutional capacity.
He

Foundation

formerly with Blyth & Co.
range Inc.; and Burroughs Corporation.
was

not

year

range

five

quite 10 points. The

with a comfortable in¬
crease in operating profits on
6% sales increase.
more

outfits in

It is

through

Crystal Room

one

5 in New York

City.

;

top analysts will par¬
ticipate. The

-series
'

Wilma Soss

izes in diversification.

Arthur

Wiesenberger

has

been built
around

the

questions

■

Victim

Plaza

Ten
•;

the

Hotel, New
York City.

seminars on pension and profit;
sharing plans on Oct; 24 in Chi-;
cago; Oct. 29 in New York City;
Nov. 13, in Memphis; and on Dec.;

widely diversified
field that special¬

Trend

starting Oct.
14

Pension Seminars

com¬

year

of the

Nov. 11 in the

pany was able to shrug off the
The Pension Planning
Company
recession well in its last fiscal will hold a series of free
one day

Women
consecu-

tive Tuesdays,

;

New Series of Free

Education

will be held
*■

the entire year and its
concession to the food favor¬

for,

for

itism this

A couple of issues that were
keep the forward momentum
thumbed down not too long
'.going..
With the industrial average ago were back in favor with
in record high territory where some of the services, notably

hovering in

where it offers around

Consolidated
continued

First of
tion^ 2

5%
Stocks

W. S. Gilbreatk With

most often asked by women. This

inflation and

concerns

To Admit W. M.LeFevre

price

securities,

versus

value, how govern¬
policies, money rates affect
high yields continued
from Ford's statements and
William M. Le Fevre will ac¬
security
to be offered by the quality
prices; how war or peace
The
odd-lot
traders have
quire a membership in the New
Chrysler dipped heavily into items in the rail section
"scares," the economic race with
where York Stock
switched rather obviously to
Exchange, and on Russia and new world resources
the red ink.
Until its late
investment
interest
centers Oct. 16, will become a partner in will affect their
the selling side—but this is
investments, trad¬
strength, the issue was avail¬
occasionally, but only momen¬ Arthur Wiesenberger & Co., 61 ing versus investing and the out¬
only one of the items being able at a
4% yield which is
look for business.
watched. Short sellers so far
tarily. Southern Pacific with Broadway, New York City, mem¬
satisfactory for such a well- a
bers of the New York Stdck Ex¬
Among those participating will
have whittled their positions
yield
of
around
5V'i%
would
known organization in so
be: Jackson
Martindell, President,
only moderately although the much investment demand. seem to be the case of an out¬ change.
American
Institute
of
Manage¬
fit suffering for the faults of
general rule is that wide¬ Also
New Coast Exch. Member ment; Patrick de Turo, Professor
getting a bit of favorable others. Its
of
Finance, St. Francis College;
earnings have been
spread covering should signal .attention for a
SAN FRANCISCO, .California— Edward
change was maintained well
*TabeR, WsUston & Co.;
that a peak is being reached.
despite a George W.
(Min
Mathieson
which
ran
Davis, Davis, Skaggs Robert S, Burns, Soank stock ana¬
slight dip in gross income. 6 Co. Vioe-Chairman of the lyst; Walter K.
into rough enough going so
Volume
considerations
so
Gutmann, Shields
More importantly, the earn¬ Board, announced the election to &
Co.; Donald H. Handell, Vicefar have been neutral.
The its dividend had to halved.
membership in the Pacific Coast President, Mutual Managament
ings
haven't
been
maintained
normal
The preference for Olin was
Stock Exchange through the San
expectation is that
Co.; Roy Neuberger, Neuberger &
at the expense of maintenance
Francisco
Division
of
Donn
C.
volume
should
increase
on obviously a bit in advance of
Berman; Lewis D. Gilbert, author
which can be deferred but has
Douglass,
effective
Oct.
of
6,
1958.
"Dividends and Democracy";
sell-offs if the market is about any hopes for dramatic im¬
a
habit of getting more ex¬
Mr. Douglass acquired his mem¬ and Sidney
Rheinstein, specialist,
to top out but so far there is provement in the firm's earnpensive when it is deferred. bership from N. Connor Temple- New York Stock Exchange.
The

ment

;

tern.

expenses are

Various development
Southern
Pacific
is
also
to be charged off
something
of
a diversification
in
the
September quarter,
note what with its large in¬
without making more than some
estimates
running as
terests running into the mil¬
token dents in the issues in- high as $10 million, which all
lions of acres of land in
volved, and two definite days but guarantees that its earn¬
Nevada and California. The
of declines haven't been put ings comparisons are going to
oil and gas potential is an
together since the middle of be dour both for the quarter
unknown factor at present,
and
for
the
full
year. The
August.
stock is a good illustration of although comprehensive stud¬
ies are underway to evaluate
the market's capacity for an¬
Emphasis on "Blue Chips"
the holdings and could add a
Even in the case of volume ticipating unfavorable events.

sign that this is the pat¬
What selling comes in
seems to be absorbed readily

•

;
.

leadership—and the classical
approach is tfcat, the final
stage of a bull swing comes
when the play is concentrated
in the low-priced
cats and
dogs—the evidence is a bit
mixed.
B e n g u e t Mining,
Graham Paige, Studebaker
and others of the

same

type

demand

has

advance

that

the

dividend

touch of

romance

the

restored

dividend
to

its

would

former

level.

ect

was a

[The

article

"Jet Age" Romance
Some

of the airline

stocks

were able to respond
to the
obviously on such
blue chip specimens as
du glowing accounts of the "Jet
Pont, U. S. Steel and, occa- Age" which is about to dawn
for a couple of the domestic
sionally, American Telephone.
companies.; It mattered little

;

United Carbon

this

was

also in

that the British

week's

were

time

views
do

not

coincide

"Chronicle."
as

one.

expressed
necessarily
with

They

best

The

illustrated

the fact

that

mered

food

his

two

and

half years.

Douglass expects
activities

Floor

and

exclusively

will

Wilma Soss, President of the Fed¬
Women Shareholders

not

confine

the

handle

any

and NBC radio analyst of "Pocket-

book News."
;

been

innovation the series has

scheduled

.on
Election and
Armistice Day to encourage "to¬
getherness" in finance- so more

husbands

public accounts.

and

businessmen

of the
presented

With Bennett-Manning

Inv. Ass'n of New

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Aurelio

D'Antonio, Amos ,C. Larsen,
M.
Seeler, and Herbert

Harold

Tepper

are

now

connected

Bennett-Manning Co.,

with

8417 Bev¬

erly Boulevard.

All

matter

The

New

Investment
York

has

Association

announced

their annual dinner will be held

appears as

of record only.

NEW ISSUE

Pa. —Albert

A. R. Wenzel has been appointed

able to Manager of the Philadelphia office

Casper,

Cheyenne,

group had sim¬ Cody, Laramie, Rawlins, Riverton
down from its recent and Thermopolis.

■

290,000 Shares

Francis I. du Pont & Co.

Jmpertal packing Corporation
Common Stock

(One Dollar Par Value)

Offering Price $1.00 Per Share

Underwriter

SIMMONS & CO.
40 Exchange Place, New York 5,

WHitehall 4-2667

that

Dec. 10 at the Waldorf Astoria,

only.]

■l

York Annual Dimer

of these, shares having been sold, this announcement

Wenzel, Phila. Mgr. for
PHILADELPHIA,

can

attend.

this

those
are

those of the author

Wyoming,

diversification

Exchange is not new to
Mr.
Douglass since he was
a
Member and Specialist Odd Lot
Dealer for

Wilfred

eration" of

The

Mr.

Moderators will be A.

May, Executive Editor, Commer¬
cial and Financial
Chronicle, and

at any

spotlight with beat the American lines to the of Francis I. duPont & Co., Robin¬
little of specific reason for its
son Building, it was announced by
punch in jet service.
Pan Edmond duPont and A. Rhett du¬
sudden fame. The company is
American World Airways,
Pont, senior partners.
a
major producer of carbon which starts off
jet service
Mr. Wenzel has been active in
black which is important;
later this month, was able to the securities business during the
mostly to the rubber industry. work to its
highest posting in past 19 years. He is a Governor
of the Philadelphia Securities As¬
However, United Carbon is a dozen
years after it had held sociation. During World War II,
even
more prominent in
the at a
price where its dividend he served in the Navy.
gas and oil business and gets offered a
4% return. The enthe greater part of its income
thusiam overlooked the pos¬
from this source. The strength
Andersen, Randolph
sibilities that Pan Am will not
in the issue, moreover, was in
Branches
be able to match last year's
the face of a still definitely
SALT LAKE CITY, Utah—An¬
per share earnings despite the
laggard interest in the oils romance of the
jet age.
dersen, Randolph & Co., Inc. has
generally.
opened seven branch offices in
Food Group Lukewarm
The extent of United Car¬
bon's

Angeles Division.

to the issue.

successful

a general partner in the firm
Mitchum, Jones & Templeton.

This firm still retains membership
in the Exchange through the Los

The company was

centered

ton,

the first to
construct pipe lines
mostly
$31.50 but has not been below
$35 since the bad news came along its right of way and the
original one was doubled in
along. And this week it was
capacity and a new one built
toying with the $40 level
as a broad hint that the proj¬
without any immediate hopes

•

investment

g s

slash, the issue sold down to

have been prominent on high
J turnover but at the same time
the

N. Y.

Teletype: NY 1-4581-2

The Commercial and Financial Chronicle

(1462)

Trust Company, Worcester, Mass.,
announced on Oct.'7 that Harry

Waterhont Properties Oiler
Best Investment

Mr. Mcintosh started his bank¬
CONSOLIDATIONS

ing

BABSON

NEW

regarding the general desirability of waterfront property as a
sure way to make money with real security.
He adds dredged
swamps and useless beds of water, and watershed land to the

-The

Thompson

Franklin

appointment

Assistant. Treas-

MORGAN

•

waterfront category.

of Manufacturers Trust Co.,

surer

YORK

Sept. 30, '58

June 30, '58

ten two more

ject

columns

them

have

published
while I

the

out

ocean
front." Let me

covery

terfront prop-

erty refers not

timber.

other
_

bauxite,

minerals—yes

and "for

vision of the bank's Domestic De¬

44 Wall Street.

partment,

Importance

bordering
rivers,
lakes,

ing has

and other water bodies where you

in most states other than Florida.

enjoy an outboard motor.
This is property which will be
more valuable 10 years, 30 years,

can.

50 years, or a 100 years

There will be little

from now.

natural

Tctal

Cash

. *

811,773,366.. Cash

764,668,535

■

security,

take

assuming he

care

land.

the

able

taxes

881,730,311

1,208,444,438

1,346,429,346

rity

Undiv.. profits—

68,007,458

65,781,116

Loans

said

the taxes can
usually be added to the original
cost so that the investor gets his
tax money back when he -sells
the property. It, however, is bet¬
ter if he can rent the land, or
cut wood from it, or otherwise
get income from it each year "to
pay the taxes.
A good tax ac¬
countant or tax lawyer will show
you
how you can also set \the
property up so that "Uncle Sam"
will pay all or half of these taxes!
course,

bed

marina

water.

out

Undiv.

correspondent who paid
$12,000 for some land has recently
able

been

sell

the

cement company for

property
pany

same

'much-needed

com¬

shipping

point., A granddaughter of mine
who paid $7.20 an acre of 1,000
acres
has been offered $100 an
for.

acre

borders

that

land

because

lake.

Many land owners
in Florida have been willing to
pay $500 an acre for small strips
to

enable

,water.

the

paid

their

cattle

The builder of

coast

$50,00.0

to
a

increases,

come

accustomed

Division.
r

main

9^1

'^00

din'Tsn

rhi

3!588!362',250
106,019,823

CHEMICAL

International-

•

com¬

small

towns.

many

cases,

;

■;

the

municipal water

CORN

EXCHANGE

NEW

BANK

" "

YORK

"Juhe 30," '58

Sept. 30, '58

3,184,890,779 3,493,520,161
2,787.584,766 3^086,^54,220

resources

Deposits
Cash

—

due

and

pends

reservoirs with their

upon

surrounding
watersheds
come

more
_

watersheds.
must

These

constantly

valuable.

citles which drin

from

Even

be¬

those

banks—"

Govt,

curity
Loans

discts.

profits—

f~ ^

ells

•

finding

that

wells

are

near

sea

.4
.
r
655;794,93l,
.

572,098,14 1

1,470,646,926-1,527,904,212
42,829,445 -/
41,527,218

Sept. 30,'58
.

Total

resources-

Deposits '
Cash

due

banks—

Govt:

curity
Loans

•

.....

726,794,348

se-'

813,768,636

557,042,962

;

cash

stock¬

with

Trust receiv¬

for

each

-i

Oct.

10,; The

will

have

National
total rof

offices.

-Previous article appeared in the
column on Aug. 21, page 718.

BANK

(

*',/

Sept. 30, '58

Cash

■

31'474,715"

39,377,719

3.9,388,718

discounts

81,134,504

76,948,793

1,733,859

1,703,126

oovr"

secl'"

profits

sis

CLINTON TRUST

Total
Cash

dug

Surplus
„•vided

vision and in April 1956, was ap¬

8,351,489

8,598,780

discounts

17,359,980

14,953,983

13,527,903

12,591,754

unrii-

1,368,242

1,328,470
'

■

pointed Assistant Vice-Presideht
in charge of check processing arid
branch operations for the bank."
'

Mr.

ing

profits——

Plan

was

36,345,698

secu¬

and

was

Division.

$39,532,133

rity .holdings——
Loans

Mellon Bank
assigned to the
In July 1954,
promoted
to
Assistant

and

1953

39,391,798

—

Govt,

the

$42,646,632

from

banks
U.

Methods

CO., NEW YORK

Chairman

bank, 'announced.
Mr. Kolb joined

Cashier in the Administrative Di¬

Denton, : Vice

-septl 30, '58 June 30, *58.
resources-:

Deposits

appoinfedVice-

rity holdings—

THE

Osborne have been

155,215,371 150,428*220

30,920,932

•

Raymond C. Kolb and Dale H.

June 30,'58

«pT,L

Undivided

jJ:

in the Operating De¬
partment of Mellon National Bank
139,§79,646:-135,501/375..
and
Trust
Company, Frank R.
from*:;;
*.
'

s;:

Presidents

due

sit

NEW YORK

CO.,

■.

Total resources*
Deposits

NATIONAL

Merger together with
of Compliance ot the

Osborne

Bank.

was

Branch
and

started 'his

From .1920

with

the

Federal

—

bank¬

in 1928 with the West

career

End

until

1923

Pittsburgh

Reserve

Bahk

joined The Union Trust Com¬
of Pittsburgh in May 1923.

corporations •*■ provid¬
ing for the merger of The Citizens

pany

National Bank of Waverly, N. Y.,

at the-time of the merger of -The
Union Trust Company and Mellon

Marine Midland

Com-,

Trust

joined

Mellon Bank- in

pariy of Southern New York, -un¬ National Bank.
4he> title,

der

Marine

Midland;

was

appointed

1946,"

June

1949, he

Assistant

Cashier

farmersjfRuST
company,
NEW YORK
Sept. 30,'58 June 30/58
S

■;

and due

38,134,678

U. S. Govt, security
&

83,320.473
2,993,278

5.327,114

profits-

14,065,995

13,998,127

Company

78,035,796

discounts

Undivided

THE

41,086,704

■..

holdings
Loans

FIRST

❖

BANK

Sept. 30, '58
resources.

Deposits
Cash

TITLE INSURANCE THROUGHOUT NEW
YORK, NEW JERSEY,

CONNECTICUT, MASSACHUSETTS, MAINE, VERMONT

and

June 30, '58

AND GEORGIA

Govt,

curity
Loarrs

died Oct. 2.
Lord

had

88,837,494

TRUST

CO.

Sept. 30, '58

from

in 1955.

-r>i

resources-

Deposits
Cash

3,965,541.628
87,349,788

NEW

YORK

-June 30, '58

curity
Loans

Undiv.

due

banks—

Govt.

3,013.934,008 3,225,741,564

2,453,287,643 2,685,890,15b

aud

from

£e-

holdgs.

641,466,137

518,168,523

880,512,700
1,583,717,086

discts.

Mr.

his

retire¬

n/r

Merger together W1-h
of Compliance of the

99.344,009

National :Barik, Cleveland? Ohio,
.

the Fairview Park

ter.

opened
It

•
.

Society for Savings and^Society

Shopping

Cen¬

five, year period Society

Greater

10 ■- branches
Cleveland.
under

throughout
h

the

leadership ©f
Mervin B. France, President of
Society for Savings, one of the
nnf;nn»c oldest snH
coTrincfc
nation's
and larcrpct
largest savings
was

respective corporations providing banks, that Society National
Bank,
the

for

of State

merger

Pearl
Bank

under

River,
the

Nyack

Company* N. Y.,
Marine

title

Trust Company

Bank of

Y., into

Trust

and

Midland

of Rockland County

has been filed with the New York
State

Banking Department.

wholly

formed.

of the

Southern

owned

Mr.

Board

subsidiary,

France
of

was

Chairman

Society National

Bank, Director of Society National
Bank, and a Trustee of Society
for Savings.
His first experience
With finance was in Canton, Ohio.

In';1927,
of

sentative

he became
of the

Ohio

repre¬

Union Trust

Co.,

New

York, Elmira, Pittsburgh, Pa. Mr. France came
N. Y., was given approval to in¬ to the
Society in 1934 to head the
crease its capital stock from $2,investment and collateral loan de500,000 consisting of 125,000 shares partments. In 1941, he was elected
of the par value of $20 each, to
First Vice-President and became
$2,640,000
consisting
of
132,000 President in 1947.
shares of the same par value.
William Harvey Kyle, President
*

Nyack

Bank

and

Trust

Com¬

Y., received ap¬

Nyack, N.

proval to increase its capital stock

his

Society National Bank, began
banking experience in Cleve¬

land.

1945,

Mr.

Kyle

was

elected Vice-President of Bankers

cosisting of 4,000 Trust Company in New York. He
value of $100 came to Society National in 1957
each,
to
$750,000
consisting of to take up his new duties as Pres¬
time
was
also
150,000 shares of the par value of ident and that
elected a Trustee of Society for
$5 each.
SjJ
Savings.
Donald W. Scherbarth, branch
Mr. Edward L. Clifford, Presi¬
dent
of
the
Worcester
County Manager of Society's new Fairfrom

$400,000
of

the

par

538,456,188

1,544,274,041
profits—
101,358,657

until

1928

shares
Total

Na-

President' of the

been"

bank

pany,
GUARANTY-

First-City

His age was 82.

ment

1,559,388,390 1.500,873,223

discts. "3,639,150,411

profits—

THE TITLE GUARANTEE
COMPANY

1,698,659,745 1,825,609,083

se¬

holdgs.

7,686,322,604 8.056.432,963
6,613,863,431 7,132,710,136

due

banks—

from

Undiv.

be known

NEW YORK

Total

the

Marine Midland Trust Company

CITY

HEAD OFFICE: 176
BROADWAY, N. Y. 38 • WOrtli 4-1000

Chairman-of

.:!:

Chester B. Lord, honorary Board

>;:

NATIONAL

Operating Department and
in July 1956, Assistant Vice-Pres-

from

banks

in the

Banking Department/ident.

State

Certificate
city bank

Southern New

been f iled with the New

-v-

1,384,340,859 1,435,606,305
profts—
64,835,958
62,955,677

Undiv.

Cash

and Trust

York; has
York

Company

discts.

water,

TITLE GUARANTEE

Trust

723,114,563

resoureS—160,843,335 160,729,988
Deposits
118,407,726 118,529,624

Bank

Federal

Bank

State

5,579,616'

•

holdgs.

;

State

$51

tional Bank of Binghamton, N. Y.,

*» -

2,891,024.338 3,178,557,919

2,523,564,896 2,819,846,073

and

from

June 30,'58

•

<t-

drilled

rivers and lakes—not to

■.

supplies

--765,702,794

BANKERS TRUST COMPANY, NEW YORK

„

holdgs.

Undiv.

se-

613,977,061

Total

soon

5,839,321

into
Total

profits—

respective

supply-de¬

highway and which is salty.

■

255,110.437

Certificate

'•

Company ;©f

which the existing fresh water bodies aTe
only $1,000. the most
prolific.;, Of course, my
supermarket reference here
applies only to

has paid a fabulous price for the

Trust

the Federal Trust Com¬
will be merged into t The

business

"'•••

250,630,135

111,408,619

Manager,

water will

everywhere.
This will
apply not only to cities, but also

discounts

TRUST
'

increase

on<

has

sistant

in¬

•

-•

101,758,167

STERLING

Loans.

people be¬

National

The

completion of the merger,
expected to be as of the close of

94,563,732

and

grow,

THE

7,438,170,443

Miss Marian A. Smith has been

for land

builder

land between

population

dustries

get ^to

motel

Massachusetts

seller had bought for

The

the

$150,000/Tliis forts, the demand for

the,, cement

gave

to ; a

profits—'

would be in ad¬

become every valuable.

appointed
Assistant
Secretary, dition to the natural waterfronts, Metropolitan Division of Chemi¬
Corn
Exchange Bank, New
of which, as I have previously cal
stated, there will never be more York, it was announced on Oct.
7
than exists now. The dredging of
by Harold H. Helm, Chairman.
lakes ar\d risers would probably James P. Leonard, Lester Nadel,.
H.
not add1 more than
the
Raymond Norton and Alexan-.
10% Of
existing wa.terfronts which are der Turovetz, Jr. have been ap¬
now usable.
pointed Assistant Managers, Met¬
y,
Division, and William"
Land which some day will be ropolitan
G. Rudolph has been named As¬
needed
for
watershed
could

554,705,110

449,288,721

secu-'

June 30, '58

■

■"&. discts. 3,552,711,759

Loans

purposes

Illustrations of Possible Profits

ing

123,399,116 219,036,038.

Govt,5

of directors,
he will con¬

held, '/'v:;

619,985,553

7,836,593,095 8,402,416,987

ably has hundreds of such oppor¬
tunities which are now neglected/
Such waterfront

rency,

520,287,015

holdings---

board

capacity
serve.

Federal

pany

•

state prob¬

Every

BANK,

Sept. 30, '58

useless

elected

also

was

banking quarters
wide margin a
previously
proposed
agreement
whereby1, subject to final approval
of the Comptroller of the Cur¬

from

due

Undivided
MANHATTAN

CHASE

THE

creditland throws it up onto the

bor

872,826,033

discts.

U.-

holdgs.

curity

banks

se¬

and

have ratified by a

Loans

which

the

June 30, '58
$
■' -!

Sept. 30, '58
j~. -. $
resources!

Total

Deposits

due

ource
6,874,519,196
TMc
lo
.xrn&ir, ,'b "marshland, ma k i n g^beautiful ;Cash ;an<r~due
^s^
je^wayvan.
xn- building sites. In m,any prises,banks— i,76fi,!474,493
vestor can; fnake ihoney with real
dredging a]s0 makes a Mall haV152^454fll
exists,^"'%

waterfront than now

A- g"\

3,085,092/424

"sucker" takes
edge of the river

the

•

3,479,602,031

scoop or a

from

'•

Clerj^:,

in the respective

438,275,258

THE BANK OF NEW YORK

Chief

President,

Newark, at special meetings held

14,212,464 ,A3,421/401

bank's

holders; of

3,332,740,463

banks

Govt,

382,620,610

prolits—

the

Stockholders

N.-.Y.

' June 30. '58

2,936,899,512

usually most profitable to
dredge
through
a
swampland
which is unfit for building.
A
dredger

and

from
U.

dirt

re.sou:ces-

Deposits

been recognized

not yet

discounts

National
TRUST CO.,

Sept. 30, '58

has been made by
dredging swamp and other now
useless land. The value of dredg¬

R«l«r

been

the

State Bank of Newark, N. J., and

.v'-.4;. ■'-•/••t-- * //V
holdings-—183,967,922 169,357,309

rity
Loans

tinue

Dredging

Much money

land

Undivided
ff

MANUFACTURERS

only to land
bordering the
ocean; but al¬
to

the dis¬

due

gravel,

ever,

lime,

valuable

become

repeat, how¬
that wa¬

lake

numerous

•'

ocean

"surrounded

has

May, .1944,

My recent column on. the value
property stirred up
so much interest that I have writ¬
of waterfront

Mcintosh

Assistant

Vice-President and Treasurer.

New York, is announced by Hor¬ Total resources918,5:15,467.1,075,917,654
which is surrounded by ace C.
790,796,637.
95i,393,696
Flanigan, Chairman of the Deposits'
Cash
and
due
cottages. This location Board.
•
from
banks
186,615,861
309,299,943
enables the supermarket to serve
Mr; Thompson joined the bank U. S. Govt, se¬
246,582,012
261,421.835
curity holdgs.
the sub¬ people who come in motor boats in 1935 and has served in the Per¬
Loai.s & discts.
362.309,060
384,940,821
as well as those who come in auto¬
sonal Loan Department, the In¬ Undiv.
17,158.722
16,078,438
profits
mobiles.
A New England
lime ternational
Banking Department
company
recently paid a high and the Central Credit Depart-, TIIE NEW YORK TRUST CO., NEW YORK
price for some shore property in ment. He was appointed an - As¬
Sept: 30,.'5o June 30,'58
•'
order to get access to the water. In
sistant Manager in 1953 and an
Total resources—-. 352,675,854 948,241,425'
addition to the above instances,
Assistant-Secretary in 1955.
Deposits
740,844,511 842,184,7371
there are cases where the: lai)d
At
present, Mr. Thompson is Cash Sc due from
banks
itself, aside from its location, has assigned to the Southwest Di¬
205,310,893:273.905,202
u.
s:. Govt,
secu- '

1913 and came

Worcester

County Trust
Company in 1917 as a clerk. Dur¬
ing his 41 years in the bank Mr.

;

the

INCORPORATED,

CO.,

NEW

with the North Adams

career

Trust Company in

CAPITALIZATIONS

previous recommendation made

to bis

Babson returns

Bankers

and

OFFICERS, ETC.

REVISED

Mr.

Mcintosh,

after 41 years >©f
service with the bank, has retired.

News About
NEW BRANCHES

By ROGER W.

Thursday, October 9, 1958

...

Number 5784... The Commercial and Financial Chronicle

Volume 188

view Park Branch,

joined Society

banking career in 1
joined the .Bank
was
Assistant
Manager

^nrte^pfafnSPthis
and retained this

wii

Trusteed

ii" mm-

Seymour Blauner Co. has been ; The Board of Managersof the
formed with offices at 111 Broad- New York Cotton Exchange have

Vvltll nil nil rreeinail

way,

eiected

one

Freeman & Co., Inc., Philadelphia
Lexington Trust National
Bank Building,
an-

of the three invest-

ment advisors of

New

York

FPHILA^EEPHIA> P^-Blauner,
who
street for

Trust Fund shares. He was also

with

N. Y. Cotton Exchange
Promoles J. Scantan

City.

Seymour named

has been in Wall

many years,

prin-

Cipai Gf the firm.

John

istrative

4c«-ta^'TrM«iroi.

Savings

for

:»

The

^«lliails

•

;

?ry ""in11948°
he'wL^appo'in^
.z.
"e
appointed

capital

common

shares.

Corporate

Leaders

....

«...

W. 1). rettlt Opens

,h.

Trust

„

■*

;

l-'

•

■

■'

Metropolitan U1V. & Trad.

';l

o-_

gomery

n™

Street.

Haryeyi

Harvey,: DL; changed its title to
First National rBahk\.in: Harvey,
effective Oct; 1..

The

Dakota

•

National

;

of '

Bank

Bismarckj N. D. increased its

com-

capital stock from $200,000 <
to $500,000; by sale of new stock,:
effective Sept 24..
<Number of ,f
shares outstanding—5,000 shares,
par value $100.)
"; - -:
- ; ;
*
mon

■f,

Fburth

The

National

Bank

Wichita, Kan., increased its. com-:
mon capital stock from $4,000,000

to $5,000,000- by a' stock "dividend, t
effective,.Sept. 23.
(Number of
sKarek outstanding—^250^000 shares,
par value $20./
■'/ * * ; • v'': : ; * r;

fV.f 1J. ■*:.:?,r?

By a stock dividend, tlie. com-

capital stock of The First Na¬
tionalBank of McMinnvillc, Tenii.
was: increased
from.1 $125,000 to
mon

$_250,000, effective Sept. 22. (Num-:
ber of shares outstanding—25,000
shares, par value $10.)
' "* " * "
"'.r r
'
*
!-:
*
' ■
•v
.

•

■

The

: common

capital

of '

stock

The First National Bank in Fort

Fia^

Myers,

from

increased

was

$500,000 to $650,000 by & stock
dividend and from ' $650,000; to

$800,000 by the sale of new stock,
effective Sept. 26.
(Number of

shares- outstanding—8,000
par

value $100. f
*'

- -

shares,
— - -

:::

:.'
-,

■

•

■

By a* stock dividend The First

National

Bank

increased its

Pecos,

Texas,

common, capital

stock

...

from

$210,000 to $250,000, effec¬
(Number of shares
Outstanding — 10,000 shares, par
Value $25.)
, /
tive Sept. 24.

William Nicks,

j F.

Vice-Presi¬

dent and General Manager of the; -

Bank of Nova Scotia, Canada,
nounced

introduction

the

an- ^

the

first complete consumer loan and

installment credit service
fered

Canadian

will be known

ever

bank.

of¬

there's

the Scotia Plan.

Mr. Nicks said in making the
announcement, "we have given
considerable study to the need,
in a growing economy like ours,
for an expanded consumer credit

service.

to Cities Service

result

are

than meets the eye!
The newscaster who

brings

a summary

of the day's events

but behind him-unseen by
the TV audience—are thousands of men and women who
appears

in¬

troducing the Scotia Plan. Wise
borrowing is part of good money
management; and this new pro¬
gram, the most comprehensive of
its kind to be offered by a Can¬
adian bank, will make all low cost
loans available for any worth¬
while purpose."

alone

this

made his program

screen,

possible; They include the people who

designed and built the facilities of TV transmission, cam¬
eramen,

technicians, script writers, directors, producers,

newsmen

throughout the world, and many others.

loans—on signature, on
automobiles (through dealers or
direct with the. bank),, and- on

hpme

furnishings. - It

was

in
-

Behind the
even

the

show is

Act,

performers

least

one

1954, that the chartered'banks

Canada

make loans

wereN permitted- to.

writer,

at any of the bank's 500 branches
in Canada after Oct. 15.

the

The
no

borrower.

loans,

cost to

ar^d engineer '

tic network of electronic

equip-

transmits

their

ment

Scotia Plan loans will be made

camera

—to.say nothing, of .the fantas-

against chattel mort¬

will be life insured at

producer, director,
crew, prop man

gages.
r

tomer's order to "fill 'er
I

laboratories, transport it to distributing points, and

finally deliver it to the station tanks to await the cus-

simplest television
at

that

efforts to you.

to car requires a host of people

produce the crude oil, refine it, test it

who must find and

not until

the last jrevision of the Bank

Producing gasolene is like that. To provide the motor

fuel which flows from pump

! The Scotia Plan include^ three
types of

•

In the

more
/

case

of Cities

oil companies, all this
than

up."

Service,

one

required

......

of .the, nation's leading

capital, investment .of

$179,000,000'in JL957 alone. It is

money

well,

invested, for petroleum products*are vital to modern living
—second

only in importance to food itself..

.w«u

began in 1945 as.

>atiohal, Bahic >f

assuwdW„M

Secretary m 1946.

'■■

The

new

Assistant Secretary. He became
_

$750,000 to $1,000,000 by a stock Fuml
and
T exineton
dividend, effective Sep. 22. (Num.- VArmif*#*
? certincates
ana Lexmgto
T^iinn
SinnA 1 Qnfi hp nas
a
tt*
.""s
ber of shares outstanding
-10,000
served as Chairman of the Execu- pany and Arthurs, Lestrange & Co. Investing & Trading Co.
shares, par value $100.)

;

the

assuming his

PITTSBURGH, Pa.—William D.
NEW YORK CITY—Mofris GiOAIltOKFnfl
Pettit has opened offices in the loni is conducting a securities
(speciMHtoTHB^ANCTM.6
Keystone Building, to engage in a; business from offices at 156 West
SAN. FRANCISCO,V <
securities business. He was for- 44th Street, New York City, under Larry S. Goldberg isv

tributor of Lexington Trust Fund

Bank

' gan^&Co
& °* "** —
gan & Co.

•
r,

& Company. the principal dis-

stock 0f

National

South- Shore

Regional Director of Renyx, Field

of Chicago* IlL was increased from

'*■

Exchange.
In addition to

Assistant

and

Cashier of Society National Bank.

Scanlan;. Admin¬

Vice-President

George M. Field jounced that Walter B, Dunkle
Associated with the firm as duties, Mr. Scanlan will continue
^oc ty s jri both capacities. ' .
-has become associated with them cashier and trader is Lester Gan- as Secretary of the Exchange.
Brancm - He
Mr. Scanlan's association -with;
Mr.
Ross
has
a specialized back- as a registered representative. Jle non,
formerly with Anderson,
Assistant Treasurer of So-

cietT

The

American

ggymcr Biauiier Co.
Formed in New York

SoriSvC Fund» replacing

bilities nf
of
new

president

Renyx, Fiew

•

Walter B. Dunkle Now

the

Scheibarth

ManSr
^Manag
Parma
Heights

Company;

Samuel L. Ross has been elected

nosition
pos tion

1957

Society.

Amer. Trusteed Funds

^hln

°t

Samuel L. Ross Pres.

1954, with, more than 20 years
of experience in business and fi*
nance.V Mr:. Scherbarth began his

(1463)

si?

The Commercial and Financial

(1464)

.
lcinor
hC 9, 1958
.Thursday,
October

enterprise, • is- launched in the market. Of; such

Continued from first page

■

At»

■:

i-iAfinn

Counter Market is all-inclusive, .with -its function

tViA

Kr»iv^

fimnltr

Avi/Trv-wlTi-.''

maximum activity

into

dreds of millions in bonds
tain

market

orderly

the world's'

in,these,

highest grade securities. In retrospect, this vast
Over-the-Counter Market* in goyernments turned
in

corporate entity, occasionally an issue represent*'

Dual Role ol the "Counter" Market
^

magnificent performance.

Market.

-.'s.

There

of.

is,

'•

e--4...

V..

'•

•

;

•

To the billions in

municipal securities, traded
only in the Over-the-Counter Market, embracing
everything from state and city issues down to the
smallest road or school district, something new
will shortly be added—the state bonds of Alaska.
No doubt, too, a broad list of political subdivisional obligations will emerge as our 49th state
builds the water systems, roads, bridges, schools
and sewers required as homesteaders swarm out
over some of

to which

the 103 million

Alaska, the state,

acres

may

of real estate

We maintain

;

and ascertaining in advance the reputation of the
^rm
dea^ with, in respect to its integrity,
solvency and competence.
Sole Market for Bank and Insurance Stocks
.

has

some

seems to

been great activity in bank : shares/:
or

Counter

questionable

Market!;

Life insurance

single share; hfj

"v
a;

unique; over-the-

attraction, after racking up dazzling mar¬
gains in the 1946-56 decade; have sort
plateaued this year; but there is more. investor
ever

before and the total

of life insurance in force will

again in 1958 reacly
high—as will net earnings of most lifb:
companies.
:
^
a

priced shares of dubious quality or
sponsorship. Since: the Over-the-

new

Fire insurance and

Interested.
.

stocks, also

interest in them than

counter

identification of the Over-the-Counter Mar¬

ket with low

the capital stock of any operating U. S. bank is
listed on an exchange. About 14,000 issues ofbank stocks to choose from-—all in the
Over-the^;

remain

stock

any

latest

casualty companies which

these pages?

prices, quotes,

information,

simply contact—
*

Marketing Department

in selected issues-ef

shareholders—yet not

Public,Utility Securities

trading markets

Among stocks in the Over-the-Counter Market,;:

misrepre¬

nately j-, 'however; you cannot:, legislate, against.
cupidity and stupidity, and the best protection for
any investor in either high or low priced securities
is investigation of the security before
purchasing

Weil-Regulated Market

popular mind, there still

Merrill

Industrial Securities

Lynch, Pierce, Fenner

70 PINE STREET

Railroad Securities

Smith

NEW YORK 5, N. Y.

Offices in 112 Cities

Canadian Bonds

-k

We maintain

continuing interest in

Struthers Wells
'

Valley Mould & Iron Corp.
4

Common

T.
♦

Distributor

•

L. WATSON

Dealer

Established

Philadelphia

Boston

Pittsburgh

San Francisco

Chicago
Cleveland

New York Stock
25

Exchange

BROAD

CO.

1832

MEMBERS

New York

Inquiries invited

CORPORATION
Underwriter

Corp.

Common'

iThe

EIRST BOSTON

ket

Bank and Insurance Stocks

Counter Market.

For
\i

.?<♦

'grounded. Unfortu¬

•

J4A'A

insisted Upon and issues tainted * with,
sentation .or o utright fraud

there

'•

Atrnr

agencies, however, the National;; Association, of
Dealers,. and the; Securities: and) Ex*>
~
change Commission, broker-dealers^ are ?super--)
vised and standards iof
solvency; and' integrity'
Securities

are

Over-the-Counter Securities
m

due

Never
before have these new
equities been so bfoadly
distributed
subscription: rights..
distributed or so many
many new* subscription;
rmhts
given to

In the

dedicated, for the most part,
to the large scale purchase of
equities; and it b
only logical that they turn to the Over-theCounter Market for purchase (or sale) of blocks
of common or preferred shares.
Through this
technique, large volume transactions can be ar¬
ranged without major price disturbance of daily
trading in normal quantities. Over 90 %v of ail
preferred stock issues .are dealt in the Over-the-

Mutual funds

legally claim title

sufficiently borne in mind that every
new
issue from triple A bonds down to the
sketchiest penny stock of a
long shot mineral'

;

the-counter

sometime in December.

It is not

Now, with over. 40,000 issues on its trading
.roster, over-the-counter, it iSumpossiblesinstantly
to detect a. flimsy, or even fraudulent*, security*
that acquires a trading market. > Through official

Exclusive Province of Over-the-Coiuiter Market

r *

MmxrVixrHK.

^raaed.

.;course

iwc' ilia ux
cAtnaiicv.o of
ui dssues
ioouco
wniV/ii ;naw
the-major
exchanges
whicH
have opcui
spent
,u
As a matter of reeord, the^sharpT^se in intere.5
from 'weeks
to ; many . years
in r the ■ Over-the-rates in ly,58 has created- one: of the most active
Counter Market.-. The- most heavily ^traded -issue
bond .markets ever; and' set- the stage
where^ tor 01£ ^p,e
York JStock: Exchange)' fori the first
the
fourth time in this ^century the, yields on hig
six months of 1958 was Royal Dutch, which spent
grade, .bonds., and. on..bIue^chip. stocks have come,.„ years- over-the-counter; prior t"to'; listing. Other
together. This phenomenon-has been variously j ^ore" recent, over-the-counter graduates, include
interpreted as mther a J*a^higerGarter j Products;>Iowa'■? Power &
^Light >Co.;
a signal for some decline in share prices. It; has
Reichold Chemical Go.; Lykes Bros3Steamship;
required that the Over-the-Counter Market bond
and Tennessee Gas Transmission.
'
trader be unusually alert, nimble, and informed,
The Over-the-Counter Market 'serves equally
to sensitively reflect, in his bid and asked prices,
well; at the other end of the listing ladder. When,
the swift changes in market sentiment, and the
for any reason, except corporate liquidation or
unusual velocity and volume of bond trading—
merger, a stock is removed from exchange listing,
and to keep from losing his shirt! This gyrating
an
Over-the-Counter Market in the issue will
bond market, too, has tested to the full the acuusually
begin forthwith. The extraordinarily
~tngn and judgment of those firms and syndicates
volatile E. L. Bruce Co. common is an example of
which buy and distribute municipal bonds (en¬
this. After it had been removed from exchange
tirely in the Over-the-Counter Market). One too
trading, the shareholders were still not to be
optimistic bid can lead to big bank loans and
denied a marketplace for buying or selling their
partners' groans!
certificates; they found that marketplace overt

and great risk is .launched, and,
'
v *'
r
*

power,

;

the continuous- flow, onto,

course,

...

ST., NEW YORK 4, N. Y.

TelephonesWHitehall 4-6500 r

American Stock Exchange

Teletype NY. 1-1843

Volume 188

Number 5784... Tlie Commercial and Financial
Chronicle

(1465)'
have had rather unsatisfactory
underwriting ex¬
perience in recent years, have by rate increases,
now^ improved profitability, and shares in this
market sector < have strengthened. The most im-*

herd : of International
Grolier Society; and in

Correspondence Courses);
magazines, Meredith Pub¬
lishing and Time, Inc. The biggest in brewing,
beryllium, board lumber, balance sheet credits,
bangtails; f important companies in petroleum,
pipe lines, plastics, pharmaceuticals, potash; fil¬
ters foods, fire
extinguishers, foundations, films
and. family finance—shares in all of these firms
are
waiting for. your inspection or purchase in
this; the world's biggest market.
V

trend here has been the entry by
casualty or fire companies into the life insurance
portant

new

business. Hartford Fire has been

negotiating with
Springfield Fire
and Monarch Life have
merged; Federal Insur¬
ance bought out ColonialtLife; s and;
Security of
New Haven has, entered the vhfe business. Allvof
Columbian Life about

these ;are

enterprises.

merger;

OyerrthefCJbuhterM

vv.,

!->•;

wish to* clutter up your safe
deposit box with large numbers of shares, then
there are some high priced over-the-counter beau¬
ties you might want to look at :
Upjohn @ $1,450
a share; Christiana Securities
@ $13,000; or Los

Angeles Turf Club at

paltry $80,000

Mutual;fun^s

copy! ,3

OVER-THE-COUNTER
Consecutive Gash

DIVIDEND PAYERS

the bid

price: is

cus-.

above cited. Mutual funds

are our

fastest

»■

Sourcef of Under-Valued Securities

In the eternal search for shrewd investors for

undervalued > securities; the. Over-the-Counter
Mjarketjs a favorite hunting, ground. In electron¬
ic^, buyers here have been handsomely rewarded
by the market pierformance of Ampex in electric

tapes (recently split 2^-for-l); Epsco Inc., D: S.

Kennedy. (racjar., systems); and Electronic
ciates.
pany

American

in the world, has done well with it travelers

cheeques and is

now

branching out into

wide credit card service. Two of the

land barge lines, American
and

Asso¬

Express, largest service=eom-

world¬

biggest in¬

Commercial. Barge

Mississippi .Valley Barge Line, have moved
Whether

you're

were

offered to

course.

gas or telephone utilities, there are dozens
of, worthy equities to select from in this market.

Book

publishing is

feature attraction in the

Over-the-Counter Market, led by Macmillan (the

largest);

International-Textbook

(shep¬

eager public—-over-the-counter

„

foregoing swift

the-Counter Market is the

panorama

of the Over-

truly remarkable divi?

Dairies, Inc

Dairy products

Retail sporting

Paymts. tt.
June 30,*

1958

Mfg.
and

;

1958

1.00

411/2

2.4

2.00

5.1

Corp

transformers
electrical

following table for proof that

the-counter securities include

some

over-

goods
v

h 0.25

•

for

' 0.25

3*4

8.0

8*4

3.1

electronic

industries

Aqushnet. Process Co.—.—-— *21
Molded-rubber products and Golf

fO.98

4 5

balls

Aeohan American Corp.Aetna

al8

Casualty & Surety Co.

(Hartford)

0.22

>... -

-—,

Insurance

i A'

2.40
■

Aetna Insurance (Hartford86

of the most

4.0

Fire, marine,

casualty

and

132

1.8v
i

2.60

■

3.8

surety

business

dependable

long-term investments — bonds,

ferred

common

and

pre¬

(Hartford)

stocks—you could possibly

*::

own.

Aetna Life Insurance Co.

Difference Between Listed and

v. Over-the-Counter Trading

listed

discourse

benefit of those who
■

are

■!

Market,

for

the

not conversant with how
-

I.-

Railroad Co.

Details not

complete

Trading Department, L. A. GIBBS, Manager

120

MEEDS

STOCK EXCHANGE
STOCK

EXCHANGE

BROADWAY, NEW YORK 5, N. Y.

Telephone BArclay 7-3500

Bell

BUILDING

Teletype NY 1-1248-49

PHILADELPHIA

WILMINGTON, DEL.

NAT L

BANK BLDG.

PHILADELPHIA, PA.

WHITNEY AVE.

HAVEN, CONN.

WALDMANNSTRASSE

ZURICH, SWITZERLAND

"—-

1.15

6.8

to possible longer record,
splits, etc.
,

Inquiries invited in all Unlisted Issues

AMERICAN

Continued

Preferred

BISSELL

3.5

Including predecessors.

INSURANCE STOCKS

MEMBERS: NEW YORK

19%

t Adjusted for stock dividends,
a

CHRISTIANA SECURITIES CO.

LAIRD,

5.6
\

......

0.70

Ohio carrier

)

Common

28y2
.

Akron, Canton & Youngstown

■

1.60

1.9

navigation

the Over-the-Counter Market functions.

1801/2

equipment and: accessories:

3.40

Corp..

Communication and

the difference between the

and, Over-the-Counter

insurance

Aircraft Radio

Following the tables appearing hereunder,

present

Lite, group, accident, healtfc

Agricultural Insurance Co.—
Diversified

■**

™
—

Specialists in

NEW

tion

June 30.

Casualty, surety, fire and marins

look at the

*■

;

Abrasive & Metal Products^.

OVER-THE-COUNTER SECURITIES

Abercrombie & Fitch

dend record of hundreds of unlisted issues. Just

BANK &

PONT

secutive 12 Mos, to
Years Cash June 30,
Divs. Paid
1958,

...

Appro*.

% Yield- *
Based on

Quota-

Acme Electric

important and impressive, however, than

Extras for

Long List. of Consecutive Cash Dividend Payers
all of the

Including

Abrasives.

"'V.. '

v..

world's,

;

Cash Divs. *
No. Con-

growing

Earlier, in Ihei, year, two brand; new funds, as¬
sembling over $300 million in capital resources,

interested in electric,

Vfater,

174 Years

financial institution with total' assets how in the
order of $11 billion.

forward in earnings; and in share
price, over-theCQunter.

tomafily ^the asset value- (at' a- given market njoment) at which price the sponsoring fund will
repurchase; and the offering price is either net or
plua a stated commission added to; the asset, value

Abbotts
I

■

TABLE!

very special, sort of Over-

since

Jfor

have

the-Counter Market

If it is not your

page

Chronicle.. .Thursday, October 9, 1958

The Commercial and Financial

(1466)

Continued from page

21;
:

The Over-the-counter Market

;■

Manufactures

Approx.
% Yield

Extras for

June

30,

Quota-

30,

Based

n.a.

—

Albany & Vermont RR. Co.—

2.00

0.40

3.2

10.0

Inc.

4.8

5.5

1.75

2.9

*15

4.00

5.2

*33

3.8

peril

Co., Class A

—

5.8

22%

1.30

Portland cement

;:21

fl.49

32%

4.6

f0.97

2.3

Aloe (A. S.) Co

4.5

0.90

1.90

1.95

54%

3.6

0.50

Filters and miscellaneous heating

Fire

0.30

19%

corrugated and fibre
shipping containers
-

June 30,

1.60

37%

4.3

0.50

7.4

3.3

vO.95

34%

2.8

*23

0.18

11%

1.6

15.00

250

6.0

2.00

2.5

1*5.75
f1.19

360

Bank

—

Bank & Trust Co.
—

(Chic.)

—

Forest

4.3

0.575

-15

3.8

Power transmission and other

equipment

American Screw Co

Products
20

products

and

1.6

27%

Boilers, tanks, pipelines-

American Pulley

Ameiicaii Re-Insurance

and

cold

Manufactuer of

4.5

1.30

351/4

3.7

2.30

42%

5.4

71/4

7.1

forged

threaded fasteners

American

corrugated

0.20

31/8

6.4

0.60

35%

1.7

Spring

Holly,

American Stamping Co
Pressed steel parts

1.40

141/2

9.7

f 0.515
1.00

7.7

18.00

430

4.2

24'

'$.90 T 16% ''5.5

and stamping

American Steamship Co
*

Springs and wire forms

casualty Insurance
.

Freighters on Great Lakes

American Surety
.

Including predecessors.

Details not complete as

Adjusted for stock dividends, splits, etc.

stock dividends, splits, etc.1958 quotation not available.

and

Insurance

Co._——r
.gurety^ip j
Products
-k
1

■

American Thermos

Details not complete as to possible longer record,

t Adjusted for

(Chattanooga)

1.5

paper boxes,

n. a.

insurance

National

Amer. Natl.

Indian¬

Miscellaneous hair & felt products

Manufacturer paperboard, folding

•

rl.95

American Pipe & Construc'n

American Hair & Felt

3.3

3oy8

f0.99

>17

Denver

5.7

National

American General Insur. Co.

and ventilating equipment

American Box Board Co.

8to

v' 7

Company
Diversified

Large furniture manufacturer

2.9

65%

4.9

V 3%

household

American

American Furniture

Gravel And sand

American Air Filter Co

26%

0.35

containers

4.0

1.00

1.30

ter- -*■

products,
cement and building materials

Manufacturers and distributors of
l'orest

Corp..

public

Amer. Natl. Bk. Tr.

Corp.

California super markets

7.0

Diversified Insurance

American

Markets,

3.1

11%

paints, chemicals^ resins, metal

hardware

Medical supplies

0.80

*•

powders,

Manufactures automotive

7.0

49%

American Motorists Insurance
—

American Forging & Socket-

Generators and electric motors

American Aggregates

5.7

in¬

apolis

Installment financing

Co.

331/2

Bank & Trust Co.,

3.2

1.00

|:16

1.90

of felt

Fletcher

American

Class- B—

Manufactures various corn

insurance

Diversified

lockers
.

product#

American Felt Co

Cement

Corp.—

American Maize Products—

and allied line?

Manufacturer

Diversified insurance•

Assurance

multiple

1.55

American-Marietta Co

marine,

17%

moulders of plastic

Custom

American Locker,

orders; travelers' cheques;
foreign
shipping; foreign remit¬
tances; credit cards

6.7

1.00

American Insur. (Newark)—

ex¬

American Fidelity & Casualty

Food

181/4

Money

training

Portland

Beta

1.00

minala-

and

Large variety of hospital supplies

American Insulator

druggists

for

Equitable

Fire,

courses

coverage

June 30," June 30, "
1958
:
1958 ;. ;

1.20

Hospital Supply—

Maintains'

Insurance

Fire

surance,

2.25

tion

Based on
Paymts. to

Hoists, cranes, cargo equipment

American Express Co

Alexander Hamilton Institute

Alpha

American Hoist & Derrick-

4.3

% Yield

Quota-

materials

Co. of New York

Local carrier

Allis (Louis)

only

811k and nylon hosiery

Finance

nl.00

protection servicer.

tended

—

Amer.

(San Antonio)

June 30,"

Divs. Paid :r 1958

1958

Telegraph

American Druggists
Insurance Co. (Cine.)
Writes

Alba Hosiery Mills, Inc

Allentown

/.i

American Dredging Co

Machinery

Allied

■

Co.

Alamo National Bank

Publishing executive

12 Mos. to

Years Cash

1958

American

al7

Electric

1.3

0.54

secutive

June 30,

Based

30,

Shipbuilding and repair

Alamo Iron-Works

tion

Dredging operations

|0.91

*18

Line

1958

American District

June 30,

& Ship

Dock

Dry

Building Co.
.

Paymts. to

QuotaJune

Commercial Barge

American

Alabama

•June 30,
1958

Including
Extras for

and

cement

paint

cement

Paymts. to

tion

June

1958

Divs. Paid

12 Mos. to

Approx.

Cash Divs.
No. Con¬

Including
12 Mos. to

■*

■:

Extras for

secutive

American Cement Corp

Cash Divs.

secutive

* ;-7>7

% Yield

No. Con¬

7Years Cash
Divs. Paid

■.

Approx.

Including

•

Traded and Most of Them Are
No. Con¬

--V.

Where All Securities Can Be

Years Cash

77.

Cash Divs.

Co.

to possible longer record,

formed Dec.
quarterly dividend.

Company

31,

1957.

Yield based

1.50

18%,

8.0

1.60

38%

4.2

fl.18

4.4

1.25

2.8

0.50

25
25

—

Vacuum ware manufacturer

proposed 25c
7

American Trust Co.'

(San Francisco)
American Vitrified Products.
Sewer pipe,

bricks, tile

Amicable Life Insurance Co.
Life Insurance

Ampco Metal, Inc.—.

Casualty Co.
Paul)-

(St.

and

Fire

6.3

—

1.00

24%

4.1

1.20

20%

5.9

Casualty Insurance

Anheuser Busch Inc
Beer and

Blyth & Go., Inc.

alloys and products

Bronze

Anchor

other products

Animal Trap Co. of America

0.80

8.9

Large variety of traps

Ansul Chemical Co
Chemical

—

22%

5.2

1.15

0.15

3.8

2.00

6.9

mfg.

mechanical

and

Apco Mossberg

Tools and wrenches

Coast to coast retail

Smelting Co

Apex

Aluminum

smelting

distributing facilities

Arden Farms

through 24 offices

Arizona

located in principal

Arkansas-Missouri Power Co.

1.00

16%

6.2

1.14

31%

3.6

*21

1.00

20%

4.9

4.1

6.9

5.0

West Coast dairy

Distribution

Public Service

Electric and gas utility

Electric

financial and business

and

utility

gas

Arkansas Western Gas Co....

centers.

Natural gas public

tion

and

utility, produc¬

transmission

Arrow-Hart & Hegeman
29

3.40

*13

0.35

2.00

Electric Co.
Electric

wiring

devices.and

con¬

trols

Arrow

Liqueurs Corp

Cordials

and

liqueurs

Art Metal Construction Co...
Office

29%

6.8

furniture

Associated
Precision

f 1.57

18%

8.4

*21

1.60

31%

5.1

3.00

6.0

1.00

6.3

0.625

24,

Spring Corp..

springs

Industrials

Atlanta

Public Utilities

Atlanta & West Point RR. Co.

Bank and Insurance

Atlantic City Sewerage Co.

Municipals

Atlantic

Gas

Light

Operating public utility

Primary Markets

Georgia carrier

With

Complete

Sewer

Trading Facilities

Ice,

service

Company

coal,

Curb

cold

Service

storage

and

7.1

2.3

E-Z

Stores

Atlantic National Bank
of Jacksonville

Atlantic Steel
Steel producing and

Preferred Stocks

•

1.20

50%

0.10

0.9

al.10

24%

4.5

distributing

Auto Finance Co

Bonds

Investments, automobile financing

Common Stocks

and

insurance

Automobile
Auto

Banking Corp.

0.675

7.3

0.40

4.8

1.20

financing & personal loans

Avalon Telephone Co
Operates in Newfoundland

New York

Boston

■

Detroit

Pasadena

San Francisco

Philadelphia
•

•

Chicago

Pittsburgh *

Minneapolib

San Dieoo

•

Spokane
San

Jose

Los Angeles

Cleveland
Oakland

■

Fresno

•

Seattle

Portland

Louisville 8 Indianapolib
8

Eureka

Palo Alto

Sacramento
1

Oxnard

Avondale Mills

7.5

fl.33

60%

2.2

fl.19

21%

5.5

0.90

12%

7.1

Cotton fabrics and yarns

Avon Products
Cosmetics and toiletries

Ayres (L. S.) & Co
Operates

B/G

Indianapolis dept.

store

Foods, Inc

Restaurant chain
=»

Details not complete as

Adjusted for stock dividends, splits, etc.

Plus

one

to possible longer record.
,

share of Piedmont Natural Gts Co. common for each

Shares held.

100

Commercial and Financial The
Chronicle

Number 5784...

Volume 188

(1467)
Cash Divs.

The Over-the-Counter Market

Where All Securities Can Be
L

■

■/;;
v

Extras for

secutive

12 Mos. to

tion

Paymts. to

June 30.

June30.

June30,

Divs. Paid

1958

■>-'

B. M. I. Corp.—.-..
"Detroit-real estate

• -

■'

•••■

Based

>1958

-1958

Paints, enamels and hardware

7.1

•/:

" V 2.50

6.3

'Z''-

fl.65

46 :

3.6

1.90

35%

5.4

26 ;v

1.80

- 4.7

19j

-1.20

20%

construction

Bank of California, N.

0.30

5.2

Bryn Mawr Trust Co—

Operating public utility
Stock Yards

4.00

6.7

Boyertown Burial Casket

0.85

16%

5.2

4.3;!

funeral

1.30

changed in August 1957
City Trust Co/
"""

Bridgeport Hydraulic Co
communities

—

1.625

•

32i%

5>0

A—— 79

V 1.30 ;

341/2

3.8

1.80

26
:

4.9

0.70

trust

5.00

Bank

(The) of New York... 173

Bank

Delaware.:

163

145

4.25

'Brockton Taunton

86%

15.00

Glass containers

4.9

312

Na¬

Bank of Virginia (The)
Bankers
Bond &
Mortgage

Guaranty Co. of America.

Own
'

1.80

3.3

1.00

4.5

operate two
garden apartments

"Gordon"

0.30

3.5

Brown &

Mortgage financing

4.00

>234

4.7

37'

0.90

10.60

''"v

5.3

2.5

Bankers Commercial Corp...

2.50

7.6

2.40

48%

4.9

3.00

6778

4.4

1.88

2.7

*22

1.00

17%

5.6

0.45

6.8

• and.

6.00

6.5

specialty- stores

.C /

0.60

3.50

29%^ 12.0

2.25

42%

"l.lO

-14%

7.5

2.10

5.8

3.50

->48%

1.00

Barnett National Bank of

~ -

Bassett

Furniture

Corp.

Inc.

Manufacturing Co.____

Cotton

and

v-V

fabrics

rayon

Drills and

Life

and

Butler

Baxter
r

101

0.40

*22

Sharpe Mfg

5.9

1.20

Metal

Bank

6.9

0.70

2.1

holding corporation

Wholesaler:

1.10

22%

4.9

24;

10.7

1.55

3.4

0.85

11%

7.5

0.7

5.0

0.60

products

shoe

Hardware

furniture

wholesaler

Pumps, tanks and valves

California' timber lands

2.00

2.00'
7.

4.1

fabricator

Qfrnpfiiral•

and

terminal

and

10.3

Members:

New York,

Stock

Midwest and Boston Stock Exchanges

Exchange (associate)

■

investment

-■-*-•

2.00

—

-37

1.80

31%

"5.7

-•

b0.55

12V2

4.4

banking service since 1848

5.9

textile

paper,

plastic bags

Beneficial

4.00

mkt.

Bemis Bro. Bag Co
Manufacturer of

Corp.

Holding company affiliate of
Beneficial Finance Company

Benjamin Franklin Hotel Co.

BROAD

STREET

CHICAGO 4

BOSTON 7

NEW YORK 5

■

FEDERAL

STREET

231

S. LA SALLE STREET

;

12.00

1.10

24%

1.00

16%

210

5.7

iPhiladelpbia hotel

HAnover 2-2700

Liberty 2-5000

FRanklin 2-4500

Teletype NY 1-917

Teletype BS 452

Teletype CG 175

Berks County Trust Co.
•

(Reading, Pa.)

Berkshire

Bessemer

gas

Gas

■Operating

public utility

Limestone

4.5
6.1
1 t u : :

Ce-

;

.•

ment Co.

fl.86

2.00

3.5

32%

6.1

;

."Portland" cement

Bibb Mfg. Co
Textile
-

manufacturer

Cotton

goods;

sheeting,

Avon Products, Inc.

etc.

Biddeford & Saco Water

Co.

Operating public utility

'■

Bird Machine Co._
:j

■

Bemis Bro. Bag

5.3

1.75

1.00

23%

7.5'

17%

5.6

U——

Asphalt shingles

Birmingham

Bank

;

Trust

flakes

■

invite inquiries

f0.70

,<26

1.00

36%

1.9

6.7

Black Hills Power & Light.—

Blue

Bell,

a29
tanks

26%

1.40 "

20%

5.4
~

1.65

and
•'

Jersey City
Paper Corp.
Jones & Lamson Machine Company
The Kerite Company
Maehlett Laboratories, Incorporated
The Meadow Brook National Bank

;

18%

8.9

National Aluminate

Morningstar-Paisley, Inc.
Corporation

0.80

;

4.2

play
'

•

River Brand Rice Mills, Inc.
Rock of Ages

Rothmoor

Corporation
Corporation

Boatmen's Natl. Bk. St. Louis

3.00

4.6

Shulton, Inc.

Bobbs-Merrill Co. Inc

0.50

3.3

Speer Carbon Company

0.25

2.8

t Book

publisher

Bornot, Inc
f Chain
:

•

of dry cleaning
Establishments

♦Details not complete as to
possible longer record.
+
Adjusted for stock dividends, splits, etc.
a

Including predecessors.

b Plus .01

stock
Digitized for Inc.,
FRASER
for each share held.

share of common

Inc.

The First National Bank of

National Biankbook Company
34

work

Company of N. Y.
Rendering Company

6.8

chewing tobacco

Inc

Manufacturer
f clothes

1.44

—

Bloch Brothers Tobacco Co._
Pouch"

v.,

Black, Sivalls & Bryson

"Mail

Insurance

Hudson Pulp &

Pressure vessels, valves, and

Cary Chemicalsrinc.
Citizens Life

The Duriron Company,
?

1 equipment
I Operating public utility

following

Continental Screw Company

(Birmingham, Ala.)
paper and pulp mill

the

Consolidated

National

Black-Clawson Company
,

&.Son—.—.

Co.
Sharpe Manufacturing Company
Cameo, Incorporated
Brown &

'Machinery for paper mills

Bird

5.00

of Continental Motor Coach Lines

Continued

;
-,

9.5

51%

3.9

■

•'

Including predecessors.

CORPORATION

4.3

Details not complete as to
possible longer record,
t Adjusted for stock dividends,
splits, etc.

erector,

cithnl

livestock

11%

LEE HIGGINSON

American
—_

Belt RE. & Stock Yards Co.
Operates

•

0.50

ax--

•

t Adjusted for stock dividends, snlits. »ta.

Belmont Iron Works
Designer,

•

6.4

chain

Bell & Gossett Co.

0.55

preparations

2.00

Cosmetic and toilet

Belknap Hardware & Mfg.__

4.2

Cahiornia Bank (L. A.)-

,%/"

j.-r 20

—

pharmaceuticals

Beauty Counselors, Inc

Calaveras Land & Timber

Details not complete as to possible longer record,

boring mills

Laboratories, Inc

Manufacturers of

Baystate Corp.
-

1.25

7.2

disability insurance

Manufacturing Co

•

g-fii

„

Bausch Machine Tool Co

Industries

furniture
Bates

acoustics/radiant ceil¬

Complete line of domestic

■

Jacksonville

3.6

•' •.;;.

Installment financing

Bankers & Shippers Insur...
Multiple line insurance
Bankers Tftret Co.* N. Y

16%

a24
,

•,>

*33

Corn

5.7

Brewing Corp. al8

of America

Southern

Brooklyn

0.13

a
0

0.20

Greenhouses, radiators, etc.
Business Men's Assurance Co.

7.0

•Chicago office building

-26

Butlers. Inc.

hosiery and underwear

Machine tools

Bankers Building Corp..

11.00

Brown-Durrell Co.

■

and

3.6

ing, recording and controlling in¬

:. 4.3

——

tional Association, Houston

business

50%

struments

Gas Co¬

castings

Bur*fSSiManning
4.00

4.0

1.80

—

Brooklyn Garden Apartments, nc.

4.8

Dry cell batteries and battery
using devices

Burnnam

;

—.

rmeistef

Industrial

Brockway Glass Co

3.7

Burgess Battery Co

7.2

.■

24
i

of steel

Brewing of beer l

'-.-'A

operating public utility

Southwest

loans

producer

Department

Bur;,

1958

20%/

Hotel in Poconos

Production

u.-

fabricator-

oil

Buck Hills Falls Co—

«
-

Paymts. to
June 30,

1958

Buck Creek Oil Co

Bullock's Inc/
68

waiter to several C

Connecticut

10.82

tion '.

June 30,

% Yield
Based on

•

Buckeye Steel Castings Co—

•

Quota-

Manufacturing steel forgings
)

Crude
rr

24
13

Corp.

supplies

•„

Buchanan Steel Products

Name

Supplies

....

Wholesale drugs

Banking & Trust Co.
((Wilson, N. C.)

Mortgage

(Detroit, Mich.)

•

"■

„

British Mortgage &
Trust Co. (Ont.:)——

5.9

Bank of the Commonwealth

the

Bound Brook Water Co.

Insurance other than life

of America
and

Brunswig Drug Co

Company

largest bank
":^"v
Bank Building & Equipment
Building design

•

Metal

Nation's

Corp.

5.9

British-America Assurance

Bank of Amer. NT&SA——.

Years Cash June 30,
Divs. Paid..
1958

; ;

Extras for
12 Mos. to

secutive

June 30.
1958

30%

Bristol Brass

Operating public utility

1958

Armored car service

;

•
——

30,'< June 30.

1958

1.80

life

Brinks, Incorporated—

company—banks

June

Approx.

InciUding

'to'

80
"
5.0 *
-r~''/:■■■.?:-,'v
0.40
11%% 3.5 -

-■ -r:.:..-

Bangor HydrorElectric

Paymts. to

Cash Divs.
No. Con-

Bridgeport City Trust Co

' 4.00

'Detroit- real-estate

Holding

Bagley Building Corp
BancOhio Corp.

tion

Branch

.'*■

—24

Sulphite pulp, and' paper

12 Mos. to

—

"Stores, Irlc. ————27

Badger Paper Mills.

secutive

than

other

Miscellaneous

% Yield
Based on

Louisville stockyards

Badger Paint & Hardware
:

Insurance

Bourbon

■

1.00

>----r-S.

.v.v

Quota-

22
-

% Yield

No. Con-

Boston

Years Cash

: v

Quota-

-Approx.

Including

;

Extras for

Divs. Paid

Insurance

Cash Divs.

No. Con¬
Years Cash

Traded and Most of Them Are
c,

Approx.

Including "

page

Chronicle... Thursday, October 9,

The Commercial and Financial

(1468)

Cash Divs.
Including
Nd. Con-' Extras for

\V-:■

Continued

jrom page 23

Cash Divs.

•

Including
Extras for

secutive

12 Mos. to

tion

June 30,
1958

The OYer-lhe-Coiiiiier Market

;Years Cash

Civs. Paid

Approx.

No. Con-

.■

Quota-

% Yield

Based

sectitive

Paymts. to
June 30,

12 Mos. to

Years Cash June 30,
^
1958
Divs. Paid

1958

Approx.
%Yte*d
Based Oh
tion
Paymts. to
June 30,
June 30,

Quota-'

1958

Where All Securities Can Be

...

Central Illinois Elec. & Gas-

1.60

37%

4.3

0.80

15%

5.3

Chicago Molded Products

Traded and Most of Them Are
Cash Divs.

Approx.

Including

% Yield

No. ton*

Extras for

secutive

12 Mos. to

Years Cash

June

Based on
tion
Paymts. to
June 30, June 30,

30,

1958

Electric

Power

—

1.60

32%

4.9

Title

surance
Title

0.50

Chicago Title & Trust Co.—

5.00

2.30

6.5

Chilton Co.

1.00

Operating public
and lime

3.50

5.4

Central Soya

Metal

2.40

CO.

45%

Central

5.2

011

1.20

5.5

f 1.36

1.7

1.75

3.5

*12

1.25

5:0

Operation retail shoe stores
manufacturing of shoes

graph Company

8.00

5.3

152

and

paper"'
'

1.80

37-

4.9

9.00

200

2.00

22%

8.9

1.25

251/4

5.0

Apartments

Corp.-

2.00

4.9

(Denver)
royalty

B.)

1.00

17%

5.8

1.00

10.5

0.30

5.5

Storage Co

f0.75
1.00

I8I/4

4.1

3.4

7.0

;

„

Bank

2.50

301/2

8.2

0.925

19%

4.7

1.00

4.0

1.20

5.5

3.25

4.1

1.60

3.9

2.25

52%

4.3

f 1.73

36%

4.7

0.95

19%

4.8

3.00

4.7

fO.875

3.6

0.80

Public

utility

City National Bank & Tr. Co.
17
(Chicago)
i
City Nat. Bank & Trust Co.
23
(Columbus, Ohio)
City National Bank & Tr. Co.
(Kansas City)
*30
City Title Insurance Co
20

3.00

45%

6.6

5.2

al04

1.40

32%

4.3

1.70

28%

6.0

0.40

10%

3.7

0.40

4.7

City Trust Co. (Bridgeport,
Cleveland Builders Supply—
building materials

0.8

0.40

insurance

Line Construction Sc Maintenance
;

1.70

Conn.)

Valve Mfg. Co

Manufacturing products for Utility

Cleveland

Quarries Co

—

Building and refractory stone

fire hydrants

2.00
5.00 '

2.40

110

3.8

Cleveland Trencher Co
Manufacturer oi mechanical

*16.9
52%

4.6

2.225

50%

4.4

1.30

5.7

0.16

*101

trench

excavators

Cleveland Trust

6.00*

0.625

2.2

Cleveland Union Stock Yards

Company

—

6.3

Operates livestock yards

Over-The-Counter
32

_—

■

2.50

19
;.

Chicago, Burlington &
Quincy RR. Cb

3.8

Office

Chw

moulded

products

,To

Second Table Starting on Page 41.

7....

7.50

145

5.2

5.00

190

2.6

Midwest carrier

5.8

Coca-Cola (Los Angeles)-.

Coca-Cola (New York)—

Coca-Cola (St.

1.50
f0.99
0.60

0.65

Cochran

2.50

1.25

24%

6.3

5.1

Go.^

—

13%
17%

4.4
3.7

„

Co.

*43

Collyer Insulated Wire—
*

5.6
4.6

6.00

6.4

2.50

37%

6.7

Farm and cutting implements

Wood boxes

Details not complete as to
possible longer record,
Adjusted for stock dividends, splits, etc.

27
21%

laminating

rolling,
lacquering

Collins

Louis)—

Foil

building

'Mill & Lumber

Cash Dividend

Consecutive

Payers From 5 to 10 Years Appear in the

Chicago hotel

ing Corp

10.2

(Charleston)

Manufacturers and distributors of

Chicago Medical Arts Build¬
1.50

(Savannah)

Bank of S. C.

Chicago City Bk. & Trust Co.

3.8

34%

Citizens Utilities Co., CI. B—

Title

Co.,

Voting

Chicago Allerton Hotel Co.—

several states

Central Fibre Products

5.25

22
„

Co.—

Telephone Corp.

12,600

3.50

Citizens & Southern National

Operating telephone company

Electric & gas utility and through
subsidiaries telephone service in

2.80

4.8

..."

Chemical Corn Exch. Bank-

Refrigeration

Makes

58%

Bank (Los Angeles)

Chenango & Unadilla

*12

485.00

Woolen blankets

basis

Central Electric & Gas Co.—

—

4.2

Charleston Natl. Bk. ( W. Va.)

Central Bank & Trust Co.

Papdr boards

5.8

23%

Chatham Manufacturing Co.,

Owning and operating apartment
house (Washington, D. C.)

Central Coal & Coke Corp.

*32

Citizens & Southern National

(Cinn.)—

Chase Manhattan Bank

Plywood

Central Cold

51%

1.00

;

Class A

3.00

Charleston Transit Co

coverings

Cascades Plywood Corp

mines

W. Va. bus operations

4.5

2.00

Sav¬

(Louisville)

*26

Co.—

Carthage Mills, Inc

Leases

3.8

Co.

•

(A.

Gate valves,

Underwear

Cavalier

<•

Chf»'»man

■

Ploot

Corp.

presses

Chain

products

(William)

fl.58

Citizens Commercial &

Forging hammers, hydraulic

9.0

0.45

and

Carpenter Paper Co.—;

Carter

Telephone

West

Citizens Natl. Trust & Savings

Chan ibersburg Engineering—

Operates telephone exchanges

paper

ings Bank (Flint, Mich.)—
Citizens Fidelity Bank & Tr.

——

Ownership and rental of
improved real estate

Carolina Telephone and Tele-

5.0

Chain Store Real Estate Trust

Bakery chain

Distributor

Investment trust

warehouse business

Campbell Taggart Associated
Bakeries, Inc.

2.00

Class A
Central

—

130

Operates warehouse in Albany

Camden Refrigerating & Ter¬
minals Co.

Secur.

2.8

Central Warehouse Corp.,

4.4

company

215

Electric and gas utility

Life, accident & health insurance

Shoe

-——

Holding

Circle Theatre Co.
Real estate holding Company

6.00

processing and distribution

Service

California-Western States

Cannon

4.9

Central Vermont Public

Operating public utility

storage,

Co.

Telephone eervice

Telephone Co.

Cold

Central Trust Co.

page 3«>.

California Water &

Insurance

4.8

manufacturer

Central Steel & Wire Co

WATER

utility-water
See Company's advertisement

Life

1.80

of livestock feed

Public
•

5.7

Soybean processing and mixing

2.8

125

products

CALIFORNIA

SERVICE

29%

•

Moines)—21

Central-Penn National Bank

utility

California Portland CementCement

1.60

24%

6.5

business

ihagazinesi
China Grove Cotton Mills Co.
Christiana

——

(Philadelphia)
15

1.40

7 V:

————_-w

Publisher of

Combed yarn

Trust Co. (Des

Utilities—

4.2

Central National Bank &

insurance

California-Pacific

38%

Plastic molders

utility

Cleveland

In¬

1.60

Central National Bank of

Operating public Utility

California Pacific

jBlcctric, gas and water utility
Central Maine Power Co.---

California Oregon

public utility

gas

Central Louisiana Elec. Co.—

Quota-

1958

Divs: Paid

Natural

Co.—_

6.3

Corp.

Operating public utility

Central Indiana Gas

Details not complete as to

possible longer record,
etc.

Manufacturer

t Adjusted for stock dividends, Splits,

and

Insulated

wire

Insurance

Co.

l l

cable

Life

Colonial

of America

Non-participating

Colonial
Retail

life

insurance

stores

Southeast

0.8

132

•

fl.09

0.25

9.1

xl.32

30%

4.3

1.25

45%

2.8

1.40

22%

6.3

2.00

2.4

2.70

3.4

0.75

36%

2JO

0.60

6.7

Stores
food

l.OO

—

3.9

and Midwest

Color-Crait Products,

Inc

Wall coverings

COlorado Central Power Co._

ervice

Operating

e asic analysis

arket facilities

electric

utility

public

Colorado Interstate Gas Co._
Natural gas

transmission

Coldrado Milling &
Flour and

Elevator

prepared mixes for

•

baking

National Life In-

Columbian
surance

Life,

Singer, Bean
40

EXCHANGE PLACE

Mackie, inc.

•

NEW YORK 5, N. Y.

Trust (K. C.)_—

Commerce

Union Bank

(Nashville)

Commercial Banking Corp.—
Dealer financing

Commercial Discount Corp.—
Commercial

HAnover 2-9000

•

NY 1-1825 & 1-4844

oil equipment and fdrglngs

(Jersey City)

23 "

fO.97

f3.09

Commonwealth

5.1 "

Life

4.0
-

6.4

f0.175 - 24

0.7

2.80
*

ance Co. (Kyi)Non-particlpatlng and

77
'

Insurance Co.

;

2.6

Commonwealth Land Title
Title insurance

IH OVER 400 STOCKS

11%

Commercial Trust Co. of New

FIRM TRADING MARKETS

0.30

financing

Commercial Shear, & Stamp.
Pressed metal products, hydraulic

Jersey

Insur-

17
industrial

life

Commonwealth Trust Co.

(Pittsburgh)
Direct W ires

Community Hotel Co. (Pa.)-

York Pa.,

Reynolds & Co., Philadelphia
Evans MacCormack & Co., Los
Angeles

Burton J. Vincent & Co., Chicago
Stone & Youngberg, San Francisco

Dallas Rupe & Son, Inc., Dallas

1.20

41%

2.9

6.00

6.5

2.40

5.9

0.60

12%

4.8

hotel

Concord Elect.

(New Eng.)—

Operating public utility

Conn

(G. C.), Ltd

Top manufacturer of band
Instruments
«

Details not complete as to

possible longer record,
splits, etc.

t Adjusted for stock dividends,

Including predecessors.
xNew rate $1.44.
a

•

and health

Commerce

•

accident

Volume 188

Number 5784

The Commercial and Financial Chronicle

...

(1469)

The Over-the-Counter Market

Cash Divs.

Including

No. Con*
•

Where All Securities Can Be

'% Yjsld

Extras for

Quotation

Years Cash

June

Divs. Paid

30,

1958

Tr.

Co.

143

1.80

4.6

Connecticut General Life
80

accident-and

ance

(groupr-and individual)

health

256

.190

20%

See

printing

of Ice ft OH,

and

office

0.225

7.3

Diamond Portland Cement—

1.35

6.4

3.45

13.8

3.00

5.2

22.00

606

3.6

Manufacture

24%

8.2

0.20

8.0

1.20

*33

Life, accident and health

Co.—
1

'Diversified insurance

28%

1.55

58%

1.20

4.2

1241%

cl.40

1.0

79%

1.8

f 1.23

18%

6.6

Chicago
Cook Electric Co.—■

Dollar

communication equipment

f3.70
fO.10

,11

86%

4.3

18%

0.5

1.10

20 %

United States

Drackett

0.075

21/4

3.3

1"0.82

1.25

7.5

25%

4.9

0.85

19
"v.

,«

Cornell Paperboard Products
ft

10%

7.9

3.00

•

8.6

1.00

16%

6.2

Bank

26%

projects,

1.65

49%

14.00

194

7.2

0.10

3.3

1.20

7.5

t0.95

2.4

1*3.10

110

fO.78

28%

0.625

13%

4.1

3.0

tl.23

23%

5.2

3.00

37%

8.0

Paso Natl.

Bank

(Texas)

Products Consol.

Gas Co.

t
a

*54

Creamery Package Mfg. Co.—

Looms,
ment

Knowles

Corp.

accident
annuities

and

sickness;

Dahlstrom'Metallic Door Co.

t0.48

24%

2.0

0.575

13%

4.3

2.00

34%

5.8

0.75

14%

5.3

2.10

122

1.7

8.00

8.3

0.60

8.0

f0.95

44%

2.1

0.60

10%

5.7

1.15

14%

7.9

0.35

'6%

5.5

>11

0.50

5.6

Auto

Corp.—

1.15

6.00

Leased

0.60

0.275

Delta
Hand

Electric

and

1.65

4.0

5.7

1.30

7.2

0.60

3.2

1.25

26%

4.8

(Denver) *34

1.20

29%

4.1

1.35

36%

3.7

10.97

0.40

37%

109

3.00

f0.24

0.80

and

other

Crude oil production

Leased by New York Central

4.4

Erie
;

Electronic

products

and

•

dental

longer record,
dividends, splits.

Plus one share of Continental Assurance for each

1*
1$

molded

;

6.7

3.6

plastics vw;

1.00

5.9

1.20

7.1

Erlanger Mills Corp.—
Textile

holding and operating

6.6

co.

resistant equipment
Details not complete as to possible
longer record,
t Adjusted for stock dividends,
splits, etc.

Details not complete as to possible
longer record,
Adjusted for stock dividends, splits, etc.

Continued

Including predecessors.

FOR

FAST

SERVICE

CALL

TROSTER, SINGER & CO.

Details not complete as to possible

t Adjusted for stock

40%

Resistor Corp.—

■

supplies

Denver Natl. Bank

1.6

Name changed In
April 1958 to
Bank of Delaware.

type

Supply (N. Y.)„__
teeth

4.3

.—

Multiple line reinsurance

P.R.R.

equipment-

Artificial

Equitable Security Trust Co.
(Wilmington, Del.)

8.5

Dempster Mill Manufacturing
Dentist's

32%

■

switches, bleycle lamps and horns

Farm

1.40

3.7

6.7

auto

7.5

•

4.6

2D0

Co._

lanterns

0.60

7.7

2.60

and operated by

Casualty Insurance

Real estate

Railroad

5.7

2.00

Fire and

*.•»

Del Monte Properties Co

Delaware

4.4

in¬

1.95

refining

Manufacturing

Co.
headed

6.7

183

and

Manufacturer of cold
dustrial fasteners -

28%

f2.91

Oil production

financing

1.90

Empire Trust Co.V(N. Y.)—_
52
Employers Casualty Co
*34

castings -

& Co

Decker Nut

4.3

3.3

Dayton Malleable- Iron Co

Bituminous ceaL

f2.14

Manufacturing display equipment"

Dean

3.9

0.30

transit facilities

and steel

25%

cabinets

Dallas Transit- Co.

Bardelebon "Coal

1.00

Empire State Oil

Men's suite and overcoats

Iron

2.5

4.0

Diesel and gas engines

Curlee Clothing Co.

4.8

48%

Operating -public utiltty

Cummins Engine Co

Local

16%

0.50

42%

Operating public utility

Cumberland- Gas Corp

Darling (L..A;) Co

0.80

fl.58

also

Cuban Telephone Co

Doors, mouldings;

reinforced plastics

Crown Life Insurance Co
Life,

6.1

1.70

dyestuffs, packaging equip¬

and

40%

—

Crompton

f2.46

Co.-and changed name to
Jersey Bank & Trust Co.
exchanged » share
for

Food processing and refrigerating
machines- and farm coolers '

9.1

distributing utility

industri&P chemicals

Mfg.

12%

Operating public utility

and

County Trust (White Plains)
Cowles Chemical Co

1.10

Cmnari Manufacturing Co.
tGla«« Industry machinery

Manufactur¬

Co.

Corrosion

Erie & Kalamazoo RR;—

y:;v'
25

railroad

Equitable Trust Co. (Bait.)—
Equity Oil Co

Industrial Jacks and- lifting equip-

Duriron

steel-

Employers Reinsurance Corp.

.•,,

4.9

utility

Natural gas

4.6

1-0.74

Electric

Elizabethtown Consolidated

: 2.7

publications

t0.79.

Manufacturer of crucibles, refrac¬
tories and abrasive products
;

2.8

Duncan

7.1

tires, steel rings and

(Consolidated)
19

(Chicago)

"■

Elizabethtown Water Co.

manufacturer

—

5.00

Electrical signs

•

■,■'.. ment
"
*;;" ' "
Dun & Bradstreet Inc

rolled

Electro Refractories & Abra¬
sives Corp.

Ducommun Metals & Supply

and

Elert -iral

7.3

6.0

1.1

Steel

36%

Rubber hose

1.60

Industrial supplies
nonferrous products v

2.20

2.6

and

Electric Hose & Rubber Co
0.05

*22

Metals and

6.5

Public utility

3.4

ma¬

Co.—

Autograhlc registers

5.0

equipment

ing Co., Class B

with Pas¬

1958

1.35

Credit and -marketing reports and

;

17;

containers

County Bank & Trust Co.
(Paterson,, N. J.)

engineering

Finish

Egry Register Co

*25

Furniture

Circle
wheels

Electric

Dravo Corp.

0.30

forgings

Manufactures soybean and house¬
hold products

rine

Soilax,

Edison Sault Electric Co

Co.

19:

books

0.50

Corp., Ltd.
(Bahamas)

5.4

Trust

1958

'/'!

England

Laboratory, Inc.—

Manufactures

Largest commercial printer in

Duff-Norton

►

Savings &

Furniture

Copeland Refrigeration Qorp.
Refrigeratora Mid air eonditionihg
Corduroy Rubber Co.i_—„

Restaurant and airline catering

Drovers Natl. Bk.
.

Natl.

7.3

bankers acceptances

Clifton

16%

Treasury securi-

Crucible Co.

June 30,

Electrasol

Houses, Inc

Drexel

Continental Illinois National
Bank
and Trust
Co.
of

share.

Joseph)

Heavy

„

Manufactures cotton ginning

New

record

Economics
1.20

Crucibles, graphite, paint

2.6

•"».".

.;v:,

Continental Gin

Stock

and

Dobbs

Continental Casualty Co.—

Merged in June

ness

and

(Youngstown)
Donnelley (R. R.) & Sons—_

Insurance Co.
Participating life ' Continental Assurance

Trust

recording

Paymts. to

stationery,
typewriter paper, social and busi¬

Dicta¬

District Theatres

•

saic

;

ft-paperboard

6.3

New

company,

El Paso Electric

of New York

t«.

Dealers in

paper

Continental?American Life

Wall

sale

dictating,

Disto

Dixon

Consol. WaAer Pwr. & Paper
Manufactures paper and

and

Operates theatre chain

Canadian theatre chain

1.00

pipes, tiles

transcribing machines
Dieto tap
tciucts

tiei

2.00

fer-

Theatres, Ltd.,

tubes

Holding company

—

and

—

Dictaphone Corp.
16

phone,

Tallow, grease, meat scrap,
tillzers, hides and aklns

Tires

Stamping Co

Sewer and culvert

Consolidated Rendering Co._ "23

Wire

-4.3

financing

Dickey (W. S.) Clay Mfg. Co.

railroad equipment patents

equipment.'.--

Manufacturer of Portland Cement

Holding company, diverse Interests

1.80

estate

tion

June 30,
1958

public utilities

Eaton Paper Corp
i Manufactures social

—

Real

30,

1958

Based

Utilities Associates—

Holding

6.9

Mortgage & Realty

Co.
j

Products

Consolidated Naval Stores

■8

Assn

Holding co.—brewing interests
Edp« « ater Steei Co

Detroit

June

% Yield

Quota-

production

gas

Racing

Ecuadorian

Bridge.

5.9

Corp.

•

0.55

4.4

Department store chain

products

Consolidated

Eastern

equipment

Consolidated Dry Goods Co._

Owns

farm

1.40

warehousing

Consolidated-Metal

parts,

1.00

48.

buildings In Chicago

Newark

auto

and

Suffolk Downs

5.4

Pressed metal parts & specialties

Consolidated Dearborn
Owns

20%

page

Inc

1.10

:vV / ■"

and power lawn mowers

Connohio, Inc.
Sale

12 Mos. to

Eason Oil Co

5.7

International

operates

Detroit
18

Bank's- advertisement

*12

Canada Tunnel

and

tunnel

Trust

secutive

Divs. Paid

Operates bridge to Windsor

{BRIDGEPORT,

Commercial

Detroit &

Detroit International

CONN.)
•

Extras for

Years Cash

1958

Oil

Detroit Bank

4.9

Operating public utility

Connecticut Printers,

4.00

No. Con...

*12

Mfr.

1.00

CONNECTICUT NATIONAL
BANK

1958

Eastern

Detroit Harvester Co._!
36

1958

Approx.

Including

Paymts. to
June 30, June 30,

Industries,

Detroit Aluminum & Brass—

0.7

Insur¬

Connecticut Light & Power-

30,

Cash Divs.

tion

cleaning compounds

Owns

Insurance Co.
Life,

June

Approx.
% Yield
Based on

Inc.
Metal

12 Mos.

Quota-

Bearings and bushings

Connecticut Bank &

Years Cash

Detrex Chemical

Baseaon

Paymts. to
June 30, June 30,
1958

;

secutive

•

Denver Union Stock Yard Co.
Livestock

Approx.

Including
12 Mos. to

Divs. Paid

Cash Divs.

secutive

■■

Traded and Most of Them Are
No. Con¬

-t

Extras for

100 shares held.

NEW YORK CITY

page

The Commercial and Financial Chronicle

(1470)

Effect Upon

Commodities and the U.S.S.R.

in that direction. The
fact that, following on his state¬

shows

that

ferent

Union

has

abated

Moscow

not

the effect

its

Cash Divs.

wage

activities
aimed

sales.

the

their

able

for

posed the sin¬

supporting the price.
It
from
participating in
the arrangement limiting the ex¬
port of tin
by producers, and
thereby it frustrated the efforts
aimed at maintaining the price at
a level at which it remains profit¬
able to produce. As the Malayan

Erwin

ister activities

Prime

Soviet

price of t i
It

indeed

was

high time that
of

someone

authority

the

ex¬

the

Union

world

com-

Paul

Dr.

Minister
Union
for

secured

Einzig

> the funds
And it is grati¬ developed

itself

large part of

fying that the long over-due denounciation came not from the

scheme

spokesman of one of the Western
Powers but from the spokesman

Much

of.

underdeveloped

the

one

One of the favorite
weapons

propaganda

of the Communists is to

the patron-saint, of un¬
They have
best to exploit
for their own purposes the natural
discontent of the poverty-stricken

pose

derdeveloped peoples.
been

doing their

millions in the Far East and else¬

where, accusing the Western Pow¬
ers of colonialism and criticizing
for their

them

alleged failure

take steps to raise the standard of
living in backward countries. Al¬
though the standard of living of
backward
peoples in
the free
world is rising, it is very tempt¬
ing for those struggling on a bare
subsistence
level
to
accept the
argument that puts the blame for
their misery
on
countries with
much higher standard of living.

S. R. Hypocrisy

Hitherto this anti-Western prop¬

Soviet

risy
to

sheer

hypoc¬
the part of the Communists

claim

was

the

de¬

supreme

fenders of the economic

interests

benefit

these

fully

the

metals

and

engineer

The

idea

output

tries

able

possess

the

ard
ward

prices

system

the

Free

carried

World

raw

materials.

piece.

markets

With De

levels would

mean, however, a heavy drain on
financial resources.
There
much

less

expensive

way

Wood

with
Crouter

This

Mr.

ing

done

adequate

through giv¬

publicity

has

Wood

Conn.
become

Haven

backward

Government
true

nations.

The

showed

itself

character

erate action to

Soviet
in

taking

its

delib-

aggravate the

eco-

Soviet attempt at

51/2

5.0

Bank
!

(Califi)__
Co

1.80

2.75

7.6

1.10

131/2

8.1

1.20

6.3

2.5

—

rubber

goods,

sponges

of retail

0.45

5.00

7.2

7.5

bate, shops

Co.

^ Fertilizers

Warehouse

Cotton compress and

Federal

1.35

1914

6.9

0.90

2.2

1.25

141/4

8.8

f 1.34

291/4

4.6

1.30

441/2

2.9

4.65

5.3

warehousing

Insurance

Multiple line insurance

Federal

Screw

Works

Screws and machines

Federal Sign & Signal
,

•

Corp.

Electric signs, sirens, lights,
flc and highway signs

traf-

Federal Trust Co. (Newark)
Federated Publications, Inc..
Michigan newspapers

Federation ' Bank

and

Trust

Co.
(New York)-__
Ferry Cap & Set Screw
a

Manufacturer

screw

Co.

1.30

0.10

2614

/ '

4.9

2.0

products

Fidelity-Baltimore Natl. Bk.

(Baltimore)

Fidelity-Philadelphia Trust,.
Fidelity Trust Co. (Pgh.)___

2.00

,4.00

4.1

3.40

f2.90

•2.40

5044

4.8

|:12

50.00

1,250

4.0

(Boston)

—

Boston real estate

Finance Co. of Pennsylvania
Real estate and securities

4.5

1.70

55V2

3.1

1.80

531/4

3.4

Fireman's Fund Insur. Co.

Bodine, 1 Atlantic St.
formerly with A.
Co., Inc. and Thom¬

82V2

Kenneth

associated

4.6
4.9

Fifth-Third Un, Tr. (Cinn.)__

f Fifty Associates

Townsend,

43-1/281

Fidelity Union Tr. (Newark)

Multiple line insurance

was

Firemen's Ins. Co.

(Newark)

1.30

3.6

Bk. (Nashv.)

1.30

32%

4.0

Diversified insurance

Prior

First Amer. Nat.

Co.

Details not complete as' to possible
longer record,
for stock dividends, splits, etc.

t Adjusted

Continued

Joins Coburn & Middlebr'k

material production.

0.275

24% ;

chills

heavy machinery

Fed. Compress &

der-cleveloped peoples engaged in
raw

Chain

Eastman,

Dillon &

un-

and

Merchants

Federal Chemical

& McKinnon in Florida.
thereto
he
was
with

inflicting misery

hundreds of millions of

upon

Long Beach

Miscel.

quan¬

son

chaplets

Faultless Rubber

M. Kidder &

the

page

(Special to The Financial Chronicle)

WATERBURY,
FOUNDED

1885

Chillo

Conn.—Carmen
with

now

Middlebrook,

What is

Coburn

Incorporated

Leavenworth Street.

Trading

(Special to The Financial
Chronicle)

CHICAGO, 111.

Your

Eastman Dillon Adds

BROKERS

Wadden III is

listed, unlisted securities

now

—

William M.

connected with

Problem ?

Eastman Dillon, Union Securities
& Co., 135 South La Salle
Street.
Mr. Wadden was

and commodities in the

OurlargeandexperiencedTradingDepartmentsmaybehelp-

previously with

jful to you. Why

Kidder, Peabody & Co.

United States and Canada

•

Joins Tabor Staff

11 Wall
CHICAGO

Street, New York 5

INDIANAPOLIS

Street,

TORONTO

the

change.

manager

for

Midwest
was

offices in the United States and Canada
Bache Adds
7

SECURITY AND COMMODITY EXCHANGES

Staff

CLEVELAND, Ohio
Gorman is
Dixie

now

—

Frank L.

with Bache &
Co.,

Terminal Building.

know

your

trading requirements ?

securities.

•

provide broad instil
less,
We provide facilities for skillful handling of large blocks wi th¬
out
disturbing existing street markets.
you

Address: Mr. David D. Lynch, Manager, Dealer Relations
Department,

Com¬

(Special to The Financial
Chronicle)
,

Ex¬

previously local

Francoeur

pany, Inc.

MEMBERS NEW YORK STOCK EXCHANGE AND
OTHER PRINCIPAL

mem-

Stock

a nation-wide wire system, we
tutional and dealer coverage—and cost

bils has joined the staff
of Tabor
& Co., 139 West Main
.bers

let

J • Through

DECATUR, 111.—Ralph W. Tib-

THOMSON & MSKINNON

not

We make primary markets in an extended list of all
types
of corporate

(Special to The Financial
Chronicle)

)

2.3

6.1

r' fgr foundries

Federal Bake Shops, Inc

high time

—

440

machinery and Iawnniower
sharpeners

Haven^ Townsend

cow's Machiavellian maneuvering.
could

1.50

STAMFORD,

10.00

Manufactures locomotives, ceramic

(Special to The Financial Chronicle)

preventing the execution of Mos¬

*24

Fate-Root-Heath Co—

was

•.

)

Fall River Gas Co.—_ *49

Mfrs.

commodity

6.9

bearings

Farrel-Birmingham

peoples concerned are made
to realize who is the villian of the

from

successfully.
Unlimited support of commodity
at artificial

1.80

4.7

Manufacturer of ball

;

6.5

the

out

abrasives

wholesaler

Farmers

under-de¬
Once the down¬

initiated

was

)

■

5814

Tobacco

Manufactures
•

exports

—2
artificial

public utility
I Farmer Mfg.

at prices
rising stand¬

world

2.0

glass fabrics

J Operating

among

6.0

Railway maintenance equipment

easy
for the Soviet Union to
aggravate
it by means of increased

re¬

policy of
gigantic sabotage of the economic
being

trend

•

521/2

materials

living

1.00

3.40

secure a

Fairmont Railway Motors,

coun¬

continued

increasing

veloped peoples.

to prevent such

sources

have

raw

which would

slump in
exploit polit¬

financial

continued

;

f 2.74

Industrial

manufacturing

would

tities

ically the growing misery of raw
material producing peoples.
Beyond
doubt,
the
Western
Powers

have

absorb large and

primary
was

would

wage demands
been
no
need

have

1.0

the " trade

restrictions.

expand and

disastrous

order to

other

would

credit

6.4

14014

2.60

3.7

Fafnir Bearing Co.__________

Had it not been for Communist

inspired excessive

1.40

■'..." ■

Faber Coe & Gregg, Inc

isfied.

there

and

itfcd magnetic separators

they are not
and in order to
if they
are
sat¬

inflation

___

Manufacture

trade

satisfied,

cause

for

Cotton

discontent if

cause

opera¬

6.6

Electric

Exblon Co.

well-known Communist policy to
stir up such demands in order to

derived by the

from

commodities.

that

preventing an
price of tin.
important than the

Union

was

other

aganda has carried strong convic¬
ever,

prospective political
advantages it hoped
to
derive
from bringing about a slump in
the price of tin leading to cor¬
responding trend in other com¬
modities.
Communist
operations
were
not confined to tin, and in
any case the psychological effect
of a collapse in the tin market
would have affected the price of

tion.

evident

financial

these

During recent months, how¬
it has become increasingly

aimed

the

towards

Operating public utility

(

were

forcing

2.75

*30

Hampton

Exeter Manufacturing Co
i

largely responsible
union officials
to put forward economically un¬
justifiable wage demands. It is a
for

undue fall in the

tion's

countries.

nations

1958

Co.

production

elements

unions

under¬

modity markets.

•

Payrrrts. to
June 30,

mills

Company
I

by excessive wage .demands
leading to inflation. And Com¬

munist

Participating & non-participating

30,

1958

0.60

tioii
June

30,
,1958 •

Based

power

Exeter

% Yield

Quota-

June

Divs. Paid

(Toronto)
'

sary

pointed out, the
its operations

12 Mos. to

Inc

Excelsior Life Insurance

the curtailment of ;,
brought

was

about by disinflationary measures.
These measures were made neces¬

contributed

ago

industrial

Mills.

Water

prosperity

reason

year

secutive

Textile ihllls

commodity operations. The
for the weakening of
commodity prices that began a

main

Extras for

Essex Co.

undermin¬

recent

abstained

the

No. ConYears Cash

that
the
depression that has been U.S.S.R. was able for a long time
LONDON, Eng.—A recent pub¬
lic statement of the Prime Min¬ developing in raw material pro¬
to carry on its activities without
ister of the Malayan Federation
ducing countries as a result of the having to pay the price in the
i n
w o r 1 d
denounced in no uncertain terms decline
commodity form of incurring unpopularity
the
Govern¬
prices.' '. * '
•
1
•
among
peoples which they are
Moscow
has
been pursuing a
ment
of
the
anxious; to bring under the influ- /
U.S.S.R. for
policy ol' systematic dumping of ence of Moscow.
v
"
'
tin on the world market with the : Nor, is the story of Communist
the part it
object of exhausting; the financial conspiracy against the prosperity...
played
in
resources of the buffer pool avail¬
of backward peoples confined to /
bringing about
ing

Communists

deliberately

Approx.

Including

nomie

Traded and Mosf of Them Are

indif¬
opera¬

opinion in under devel¬
oped countries. It was because the
governments concerned failed un¬
til quite recently to enlighten un¬
der-developed countries about the

trend and Communist

caused U. S. S. R. to abate somewhat its aggressive

Soviet

tions

recent

page

Where All Securities Can Be

ment, aggressive selling of tin by
the

demands, constitutes a hyprocritical
disastrous slump in order to be able to
exploit the situation. The writer notes that exposure has

slump

from

The Over-the-Counter Market

active step

affected small, underdeveloped coun¬
tries' recent, though long over-due, denunciations of Moscow's
Machiavellian policy of systematically dumping tin on the
world market. He finds that the dumping, coming on top of
inspired inflationary
plan to bring about

Continued

by the Ma¬

layan Prime Minister was the first

Dr. Einzig commends the

the downward world commodity price

Soviet Union

\ The statement made

By PAUL EINZIG

the

.Thursday, October 9, 1958

■

ll Kidder, Peabody
.

FOUNDED 1865

aMembers Hew York and cAmerican Stock

17 Wall
iboston

Go.

exchanges

Street, New York 5, N. Y.

philadelphia

chicago

los angeles

)

•

Number 5784

yolume 188

The Commercial and Financial Chronicle

...

(1471)
Continued

from

page

Cash Divs.

Approx.

Including

The Over-the-counter Market

No. Con-

Extras for

secutive

12 Mos. to

'Years Cash

June

.Divs. Paid

Where All Securities Can Be
c
„

-CashOivs.

..Including
No. Con-

•

'•r. '■*■■■■*: /]'

''1

■

Bant

holding

June 30,

company

1958

—

Quotatioii

«r.V'

(South Bend)
FIRST BOSTON CORP.-—__

19
19

Life

1958

36%

1.70

1.20

32
V 66%

First Camden

National

F|rst Geneva Corp

First Natl. Bank of

Akron

First Natl. Bank of

Atlanta

3.8

8.3 I

( 4.1 I

3.0

46%

2.5

10.98

34%

*29

1.60

32%

4.9

2.50

52%

4.8

1.40

3.35

First Natl. Bank

(Chicago)

First Natl. Bank of Cinn.

First Natl. Bank in Dallas

First Natl. Bank of Denver

First National

Bank

1.75

11.38

*41

14.00

2.8

•

71%

4.7 :
2.3

37%

4.6

32%

4.3-

25%

12.64

First Natl. Bank (Memphis)—
First Natl. Bank (Miami)

1.40

119
35%

1.25

40%

Fulton

First Natl. Bank (Mobile)

*33

4.50

115

First Natl. Bank (Omaha)

2.50

47%

2.05

First Natl. Bank

3.00

(Shreveport)

First Natl. Bank (Wichita)—

38
30

1.00

of Paterson, N. J.—
V 93
First Natl. Bank & Trust Co.
-

12.54

11.35

-Natural
1
-

with
v

Aug.

of'

Trust

Bank-

share.

for

First National Bank

was

•>

"Vy/'y;';'::VV
.>

(Tulsa).——

...

1.40

145

4.4"

31%

3.00

4.6J

65%

11.35

1.50

33%

4.0'

5.6

Sav¬

ings Bank of San Diego
Bank

1.35

First Pennsylvania Banking &
~
Trust Co. (Phila.)
130
First Security Corp.
23

2.20

45%

4.8

1.60

3.7'

90.

1.60

35%

4.5

3.00

5.6'

1.00

60%

,1
1.7

0.65

14%

4.6

0.90

24%

3.7

holding

Co.

V
Bank & Trust

company

First Western

(San Francisco).—

3.9

0.40

8.0

0.85

29%

2.6

0.85

14% V

6.0

1.00

■

Co., Ltd.

elevator V

Florida Public Utilities Co...

1.50

22%

6.6

0.35

4.8

7.7

Gould

31%

1.00

3.7

Govt.

1.50

0.50

1.25

■:

6.00

d0.30

1.3 V

450
3%

Automotive

1.36

28%.

315

Grand

2.00

4.8

1.70

6.3

0.40

3.0

1.50

4.1,

0.30

14%

2.1;

Great Southern Life Ins. Co. *33

2.00

2.6

4.10

230

1.8 r

*21

5.00

Green (A. P.) Fire Brick Co.- *12

4.9

machines

Cotton

4.7

1.00

30%

3.3

1.50

7.5

American

Company

Indemnity

Ins.

Co.

(N.Y.)

0.375

1.20

2.00

Co.

engineers

(Winnipeg)

Life, accident

6.3

3.6

55%

and

I Life, accident and health
Great West Life Assurance

6.3.

Works

Green
,

and
•'

and health

(Daniel) Co

House clippers

1.00

20%

*34

1.00

17%

5.8

10.43

3.7

*17

1.00

8.3

■14.38

124%

3.5

18.00

Refractory products
12

1.30

39%

3.3

Green Giant Co., Class B

fl.22

33%

3.6

Gregory Industries, Inc.-

Vegetable canning &

V.'V.

,Stnd

welding

2.50

Leather

2.00

26%

7.6

Sprinklers «fc plumbing equipment

Guarantee Co. of North
America
(Montreal)

•

1.00

—

tanning

Grinnellv Corp.

Gilbert & Bennett Manufac-

~;.y'

Griess-Pfleper Tanning Co.—

3.8

insurance
-

distribution

equipment gnd

welding studs '

Insurance

drilling

—

Ornamental
Aluma

metal

work

...

2.2

Guarantee,

—

f0.29

and

Details not complete as to
for

stock

Details not complete as to
possible longer record,
t Adjusted for stock
dividends, splits, etc.

possible longer record.

dividends, splits, etc.

Excluding $4.50 special dividend

Dec.

Continued

1957.

Brokers, Dealers only
.

Try "HANSEATIC"

4.1

and

0.975

10%

9.5

1.00

17%

5.8

makes primary

Co.

reaming,

tapping

mor&

than

400

OVER-

Dept. store. Springfield.

1.75

7.6

3.00

9.1

through its branch offices, correspondents
and
private wire system, reaches over 500 brokers, dealers

and financial institutions almost

instantly.

Mass.

Fort Pitt Bridge Works..
Structural steel

"HANSEATIC"

nationwide

Forbes & Wallace, Inc., CI. B

Wayne Corrugated
per Co.

"HANSEATIC'S"
knows how

fabrication

Fort

large,

serve

your

experienced Trading
OTC requirements.

Department

really

Pa¬
19

1.00

3.1

Next time you need maximum OVER-THE-COUNTER service,
why not Try "HANSEATIC"?

Corrugated shipping containers

Fort

Wayne National Bank
(Indiana)

2.00

" 3.4

Ft. Worth National Bank—

1.00

4.2

Fort Worth Transit Co

0.40

' 7.4

1.50

22%

6.7

New York Hanseatic Corporation
Established 1920.

Port Worth bus service

Fostoria

markets

THE-COUNTER securities.

machines

"HANSEATIC"

transmission equip.

Foote-Burt
Drilling,

Pressed Steel Corp.

Associute Member American Stock Exchange

Industrial lighting units

Fourth Natl. Bank of Wichita

.*33

1.00

Fownes Brothers & Co.—

0.15

1.00

15%

Corp.

Manufacturer of oil, air, fuel and
TRTftt&T filters **
~

Franco

Wyoming Oil Co

Oil production,
development
*

exploration

1.25

Details not complete as to
possible longer record,
for .stock dividends,
splits, etc.

t Adjusted

Including predecessors.

•-

BROADWAY

Telephoue: WOrth 4-2300

6.5

BOSTON

and

120

1.4

3.3

Gloves

Fram

3.5

5.8

Because:
7

310

five, and casualty

Your Customers Get Better Service When You

Craft boats.

Foote Bros. Gear & Mach
Gears

Engineering

If it's Over-the-Counter

City Ornamental Iron

Co.

L9;
v

—

Amer.

Shipbuilders

elec-

_1.1.—V._

turing Co.

fire....

fabrics

Great Lakes

parts

and

Diversified insurance

Corp.__

f !

1.3;

6.00

•

Fire

64%

10.85

Great

Corp.;.'

I* Boring, milling and

Insurance-

Diversified insurance

fire

5.7
3.9

systems

Employees

Graniteville Co. _!

and

Georgia Marble Co.—
Germantown

8%
32

Great

14V

£—

Grace Natl. Bank of New York

9.2

other machinery

•

(class A)

Pumps, lnc

Detroit ipe manufacturer

Telephone company

Flour

retailer

Trunk Warehouse
Cold Storage Co

6.0 •

.v'

bonding,

cream

Insurance—casualty

12.7 :

serving

small

Reinsurance

Well-known Ice

Operating public utility

Florida Telephone Corp

1)1

Corp

Goodall Rubber Co.

9.0

company

For Banhs,

•

5.1
"

Massachusetts communities

(Jacksonville)

-19%

cov-

Florida National Bank

4.8

Fitchburg Gas & Elec. Light
Serves

fiat

casualty,
allied lines

Bank

General

(Conn.)

2.05

■

Commercial printing

i Adjusted

First New Haven National

6.5

4.9

Goderich Elevator & Transit

Wire cloth

15%

marine, multiple periil
fcrages and allied lines

makes

General Metals

First National Exchange
Bank of Roanoke
&

48%

1.00

Globe & Republic Insurance
Co. of America
L-.

4.3

Giddings & Lewis Mach. Tool

and

Trust

Also

V.Company

1.00

Industries Co.

f Marble production .!
^

;

0.36

General Manifold & Ptg. Co.

■

•

9.3
6.3

46%

2.40

Portland and masonry cement

Grain

Genuine Parts Co
;

f2.01

Fire and allied lines

First National City Bank of
New York

First National

Southern producer

All

•.

*■

Pumps and water

Kansas, Oklahoma

Marine and

Fire,

5.00

1958

Glens Falls Portland Cement

Nebraska

Co.

Trust Co.

4.2,

merged
Deposit
&

Scranton

exchanged

;

ing & Trust Co. of Hazelton to
-form-Northeastern Pennsylvania
Stock

2.8

1958

Wilkes-Barre

Bank

V 35%

Savings Bank and Markle Bank-

National
f

■

2.0,

Effective

2.9"

1958

Hose, belting and packings

Storage

distributor

gas

Missouri,

General

46%

1958

.-■*

1.7

;

General Crude Oil Co,__.

4.5-.

6.00 .; 300

Cold

2.3 V

66%

June 30,

Multiple line insurance
underwriter

packings, gaskets, oil
mechanical seals
-V

and

ttic motors

13%

Mechanical

Plastics.

First Natl. Bk. T. (Okla. City)
First National Bank & Trust

•(Scranton, Pa.).

Market

Transportation

Bank

.First NatL Bank (St. Louis).

1.25

holding
Gas Service Co...

4.4

Holding company. Bus industry

seals

4.3

changed from First Na(Portland, Ore.) in
August 1958.

manufacturing

Good Humor

Garlock Packing Co

3.9 ~

Name

tional

0.24

20
*

Fulton Natl. Bank
(Atlanta)
Galveston-Houston Co.

first Natl. Bank of Oregon

0.40

4.6

3.8

12 Mos! to

Glens Falls Insurance Co.—_

Manufacturing Co.-r.

Brick

Bas^don
~
tlon* Paymts. to
June 30, June 30,

secutive

Glen-Gery Shale Brick Corp.

6.6

■'''■ y r

Gary Natl. Bank (Indiana)..
Gary Railways, Inc.—

3.1

Quota-

Divs. Paid

Exchange

Pulp and paper manufacture

2.25

—

-yy"

Approx.
% Yield

Years Cash

»,r ,#».-

Glatfelter (P. H.) Co

Refrigerated warehousing

3.9

•''

Extras for

Bank (PhiladelphiajtV!—;-.VL21

35.

page

Co., Class A

■'

No. Con-

Turret lathes and tools

0.6

63%

v.V;""""-'' '' *

Small loans

3.9•,

12.77
*

y «■,

».

Girard Trust Corn

2.4 A

12%

10.38

Manufacturing heavy duty transmissions, forgings and axles
Fulton Industrial Securities

goods

;

Fuller

2.7-

525

1.00

i
i,

1958

0.30

56
'.'"VV

Corp.

3.5

Fort

c Worth ;
V
r—
First Natl. Bank (Jersey City)
First Natl. Bank (K. C.)

Frontier Refining Co
Petroleum
production, refining
"and marketing
'
Fruit of the
Loom^ Inc.

40%
347

8.00

1958

City real estate

Brushes

tl.18

_r__

First N^tl. Bank (Baltimore) _a 152
First Natl. Bank (Birming.)__
15
First Natl. Bank of Boston—
174

Company's advertisement

Fuller Brush

;

1.00 ;v 24%

11.83
'

See

Cotton

(N. J.).
First City Natl. Bk. (Houston

•

insurance

New York

201

page

Bank

& Trust Co.

30,

Gisholt Machine Co.-_

-Friedman (Louis) Realty Co.

4.6
**

5.50

Paymts. to
June 30, June 30,

INSUR¬

Refrigeration and air conditioning7
equipment

•

\»

LIFE

Frick Co.

Investment

banking
See Company's advertisement

tion

1958

' f

agency

ANCE CO.

Paymts. to
June30,'

" 1958

*■,

First Bank & Trust Co.

Based

June30,

'
r.$"■<'

Divs. Paid

First Bank Stock Corp
*

Years Cash

-.,V>Vr

Advertising

FRANKLIN

% Yield

Extras for ;;
12 Mos. to

secutive

■-:'7
.

Approx.

——

Including

Frank (Albert )-Guenther

Law, Inc.

Cash Divs.

Based

Tra(|e,| am| Most of Them Are?

% Yield
Quota-

•

NEW YORK

5, N. Y,
Teletype: NY 140-1-2

CHICAGO

•

PHILADELPHIA

Direct Private

•

SAN

FRANCISCO

Wires to:

Boston, Chicago, Cleveland, Houston, Los Angeles, Philadelphia, Pittsburgh,

Portland, Me., Providence, San Ahtonio, St. Louis, San Francisco

page

The Commercial and Financial Chronicle

Including

aecutive

12 Mos. to

June 30,

Divs. Paid

1958

June 30,

1958

Approx.
% Yield
No. ConExtras for
Quota- Based on
secutive 12 Mos. to
tion
Paymts. to
Years Cash June 30,
June 30, June 30,
Oivs. Paid
1958
1958
1958
Cash Oivs.

Including

Guaranty Trust Co. (N. Y.)_.

4.00

79%

5.0

(Dallas)

2.00

3.3

and

Fire

casualty Insurant*

Gulf Life Insurance Co.

(Jacksonville, Fla.)

Life and accident

Hagan Chemical and

chain

Higbee Co.

fl.19

——

f2.50

1.20

6.9

32%

3.7

0.40

10%

4.0

(N. Y.)

2.00

42%

4.7

Co. *12

f0.69

1.2 \

Home State Life Insurance
Life, accident & health

§ 1*1.48

1.00

2.7

34%

2.9

3.6

f0.91

(N. Y.)

—

68%

0.80

1.00

16%

6.0

*53

2.00

2.8

Produoer,

f6.70

300

2.2

e0.60

1.2

2.00

6.3

3.50

104

3.4

106
105

f1.85

43
38

4.3
5.3

refiner * marketer of

Hotel

4.3

16.5

16V2

g0.80

class A

(M. A.), Class B

20.00

4.8

(N. Y.)

Hanover Insurance Co
>

Formerly Hanover "Fire 4ns. Co.

!
•

520

*15

f 0-215

4.0

electroplating and polishing
equipment:
.'7

■

Harris Tr.& Svgs.Bk. (Chic.)
Harrisburg Hotel Co

50
23

92%
37

1*2.45
3.00

2.6
8.1

Penn-Harrls Hotel

Hart-Carter Co

1.50

Syracuse, Inc

public utility
and electrio

25%

1.40

2.7

Jahn & Oilier

1*0.76

24%

3.1

Huntington National Bank of
Columbus (Ohio)

1.80

48%

3.7

Huston

21.

7.7

Huyck (F. C.) & Sons

struments

control

and

0.80

16%

4.9

1.28

4.9

fl.58

33%

4.7

1.00

5.9

—

0.03

0.3

Engraving Co.

0.25

6.9

40 7

2.00

86%

5.5

gas

Gas

Corp

Starting

3.1

Imperial Paper & Color Corp. a24

1.40

5.6

39%

5.1

1.475

34%

4.2

Indiana Gas & Water Co., Inc.

2.50

2.6

Indiana National Bank of

4.6

Haverhill Gas Co.

1.32

20%

6.4

1*0.99

2.00

20%

4.8

6.3

yy0.99

2.55

4.3

Heidelberg Brewing Co..

0.375

18%

2.0

(New York)

0.20

Co.

5.5

—

1.00

4.3

0.50

6.2

2.50

7.6

School rings -& pins

36%

2.00

5.1

4.00

struction cranes,

Pennsylvania

0.60

sale

40%

3.9

0.85

14%

5.9

Canvas products

■

shovels, etc.

0.50

3.6

3.00

5.0

20 c

dividend payable in Class A stock.

•

0.45

7.8

0.15

4.0

*23

2.00

67%

3.0

1.75

23%

7.4

10.29

4.6

2.00

44%

4.5

1.35

16%

8.2

1.70

5.5

pole

—

Women's shoes

Kahler Corp.

one

share Northern Mineral for each

stock dividend paid in January,
quarterly dividend.

Before

adjustment,

Hotfls, restaurant and laundry

; /

operator

dividends, splits, etc.

Including predecessors.

gl00%

Details-not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.

4.6

30%

1.40

Details not complete as to possible longer record.

f Plus
*

4.9

t Adjusted for stock

Hibernia Bank (San Fran.)..

31%

equipment

Julian & Kokenge Co

Electrical and communication
line

Diversified Insurance
r

Heywood-Wakefield Co

1.54
;

Lathes, grinders, comparators,
threading dies

Joslyn Manufacturing &
Supply Co.

con¬

Pennsylvania

6.5

Service Co

Joseph & Feiss Co

fl.59

Insurance Co. of the State of

Hettrick Manufacturing Co..

n.a.

Manufacturers men's clothing

Industrial Natl. Bank (Prov.)al66

Produces dairy products In

0.25

Jones & Lamson Machine Co.

5.5

•

*31

and

4.8

controls

•

—

(Ontario)

Manufacture

1.6

Temperature and air conditioning

Insley Manufacturing Corp..

Hershey Creamery

76%

2.00

for women

Johnson

Savings, trust and mortgages

Herff Jones Co

1.25

a25

Corp.

Shoes

Johansen Bros. Shoe Co

Operating water utility

Beer and ale

—

Refrigerators and stove hardware

Industrial Mortgage & Trust

Sugar production

Standard Life Ins.

Multiple line Insurance

Jervi*

Operating public utility

Water

6.4

insurance

Life

Jersey Insur. Co. of N. Y.
*

Indiana Telephone Corp

Indianapolis

:; 9%

General baking

4.7

0.60

•«'

7 Valves

and water utility

Industrial Bank of Commerce

3.8

Jersey Farm Baking Co

Indianapolis

Holding company

Haytian American Sugar Co.,

5.3

Sugar refining

Gas service
.

1*0.77

Jenkins Bros.

2.10

6.6

20%

inc.

Jefferson
'

16%

Electrical devices

1.10

Sportswear manufacturing

Jefferson Electric Co

and

wallpaper

chemical pigment colors

Natural gas

44%

Jantzen

1.00

James Manufacturing Co
7 Manufacturers of farm equipment

5.2

2.00

1.40 7 27

108

2.05

1958.

New shares

pay

'7 7

+ Adjusted for

Including predecessors,

Plus

$1.00.

possible longer record.
stock dividends, splits, etc.

Details not complete as to

10 shares held.

stock dividend.

5r/o

New Leaders
Over A

Quarter Century

1930

1958

Spot up-and-coming growth
the 600

Specialists in

latest

Also

analytical articles

24 stocks of unusual

economical

Established 1930

St., New York 5
N. Y.

Teletype 1-1126-7

tion $30

and

covering

one-year

profit

monthly
some

ANGELES

DENVER

—

Marache,

Doffleinyi*e

Co.

Lowell, Murphy & Company, Inc.

trial subscription consist¬

ing of October and November

Monthly Supplement

only (or $5 for 12 issues).
0-T-C
14-C

Elm

Maryland Shipbuilding & Drydock

supplements

issues, plus timely arti¬

70 dealer-spon¬

Or send $1 for introduc¬

issues

SYSTEM

subscrip¬

WIRE

(4 quarterly editions

cles)
tory

sored
.

•

potential. Single edition §9.00;

&reene«a&6ompai\u

H. H. Robertson Co.

Quarterly Edition of the

TRADERS GRAPHIC.

includes

Tel. HAnover 2-4850

Arundel Corporation

over-

the-counter stock charts in the

OVER THE COUNTER SECURITIES

37 Wall

Riley Stoker Corp.

Over-the-Counter
situations among

LOS

the

Page 41*

54 ^ 3.6

f 1.95

Idaho First Natl. Bk. (Boise)

Boiler Insp.

Maker of furniture

Second Table

devices

1.9

Insurance Company..

ePlus ic/0

154%

8.9

2.05

—

Over-The-Counter Consecutive Cash Dividend

Manufactures papermakers* felts,
Industrial fabrics,
precision in-

Boiler and -machinery Insurance

(Tom) Peanut Co.—-

1.00

Harvard Trust (Cambridge).

•

Company

Payers From 5 to 10 Years Appear in

Imperial Sugar Co._—

Haverty Furniture Co

5.7

3.00

Diversified Insurance

and

16%

f0.96

Jamaica Water Supply Co.—

5.5
','77

com-

Hartford Natl .Bank & Trust 126

5.7

Long Island water supplier

Manufacturer

Hartford Gas Co.
Hartford Steam

147

supplier

Jacksonville

8.8

2.65

—

Hartford Fire Insurance
1

3.4

Photo-engraving

Southern TexaB utility

Grain handling equipment

14%

xx0.5G

Confection and food products

Hanson Van Winkle——-

2.00
7V''

4.6

Insurance and mort¬

3.8

hotel

Houston Natural Gas Corp.—

Name changed in. January 1958.

1.33 :7 29%

0.80

(J. B.) & Co.

Ivey

Ooal. Iron, steal

;

Hanover Bank (The)

Operating public utility

Connecticut

Underwear and -sportswear

4.4

Public utility, electric and

City.

gas

*14

Iowa Southern Utilities Co.

606 rooms

pany,

3.9

Department store chain

Housatonic Public Serv. Co..

(P. H.) Knitting Co..

—_

Irving Trust Co. (N. Y.)

Hotel Gary Corp

petroleum producte

Hanna

0.30
15.00

(Knoxvllle, Tenn.)

Hancock Oil Co.,^ Class B
*

23
27

Vacuum cleaners

Indiana

—

Public Service Co

Electricity

Drugs, Inc.--———

New York

gages

Iowa

6.2

16%

1.00

Hooven & Allison Co

1.50

1.10

financing

Real estate,

Hotel Barbizon, Inc

(Chattanooga, Tenn.)
Hamilton National Bank

Hanes

* *-_ -_7

.7-

Hamilton National Bank

Guaranty Co.

•

(Bridgeport)

;

?•

Ropes and twine

Hamilton Mfg.
Wood -and. steel products.

phone
.

5.2

chain

Investors Mortgage

5.6

0.35

15%

V4'' Small loans
Auto

(Brooklyn, N. Y.)

Hoover Co.,

Corp

Interstate Securities Co.

■;■>{•-'

0.80

and cake

7,7-7

Restaurant

Title insurance

Hook

1.2

Name

distance

long

Home Title

43>

Formerly
"Haloid
Co.
changed in April'1958.

and

,7.

hydro-electric

bakeries

Tele¬

and

2.3

220

5.00
7.

Interstate Co.

graph Company of Virginia
service

—

Interstate Financial Corp.

Telephone

Local

Haloid Xerok. Inc;

1.8

Ohio merchandise distributors

Home Finance Group, Inc.—
Holding company—auto financing

27%

Li1..,'.7''

Holdings, Ltd.-

trust

Wholesale bread

0.50

■

Reinsurance Co.

Interstate Bakeries

terias and bakeries

Home Insurance Co.

Plumbing, heating and air condltloning supplies

•>

Interests

Operation of food markets, cafe¬

Home

Halle Bros.

6.1

■>.

Reinsurance—multiple lines
Investment

0.50

International

June 30,
1958

June 30, .1 June 30,
1958
1958

Company

7-'

Dairy

Home

2.3

• >

—

Paymts. to

Operating public utility

Inter-Ucean

hydraulic power,

Electric and

processing

Timber logging and

Holyoke Water Power Co

21%

Water -treatment chemicals

tion

Inter-Mountain Telephone

(Edward) Lumber Co.

Mortgage

Title Insurance

4.4

Department store

Hines

77:7r;v,

■:■■■■

0.50

Controls,,

Hajoca Corp.

secutive

12 Mos. to

Inter-County Title Guaranty

3.0

Property insurance

products

Olass fibre Insulation

Based on

f 1.83

(New Orleans)
Indiana drug

Gustin-Bacon Mfg. Co

Inc.

Quota-

Divs. Paid

industrial steam and real estate

Gulf Insurance Co.

Extras for

Years Cash

Hibernia National Bank

Traded and Most of Them Are

% Yield

Including
No. Con¬

Years Cash

*•

Extras for

No. Con-

The Over-the-counter Market Where All Securities Can Be

1958

Approx.

Cash Divs.

Approx.
% Yield
Quota- Based on
tion
Paymts. to

Cash Divs.

Continued jrom page

Thursday, October 9,

(1472)

Publishing Company
St.,~ Morristown, N. J.

Unlisted Trading Department

WERTHEIM & CO.
Members New York Stock Exchange

NEW YORK

yolume 188

Number 5784... The Commercial and Financial Chronicle

(1473)

The Over-the-counter Market

issues

;

the

Where All Securities Can Be

Our

Reporter

discount- from

offering price, and at the

same

time carried the whole bond

mar¬

Governments

went

ket

down

with

them,- and

that

went for corporates as well as the

Traded and Most of Them Are

By JOHN T. CHIPPENDALE, JR.

tax-exempt obligations. The fact

•

Cash Divs.

Including
Mo. Con-

Extras for

secutive

Years Cash

Divs. Paid

Kalamazoo Veg.-Parchm't Co.
Pulp
food

and

specializing

paper,

protection papers

V
.

12 Mos. to

Hon

June 30,
1958

Paymts. to
June 30,
1958

fl.47

4.7,

31%

|i j:,

8.00

175

operation

subscriptions
as

, Multlple-hne Insurance
Kansas City Life Ins. Co.___

1.25

>34

8.00

1.00

24%

make

0.6

sues

Insurance

ex-

were

the basis

2*50

4.5

Title insurance, abstracts, escrow

banks

were

used

for these isin some measure,
helped the oversubscription for
the new money .obligations of the
Treasury. In spite of the sizable
oversubscription
for
the
3%%
payments

which,

note and the set

Kansas-Neb. Natural Gas Co.

1.80

CO CO er-

4.6

Natural gas production, transmis¬
sion and distribution

Kearney (James R.) Corp.__«
Utility equipment

;

Leader in

textile

6.6

0.30

1.85

3.4

2.00

36y2

5.5

4.4

dry cereals

dressings, .elastic

specialties,

and

sensitive -industrial

Kendall

tapes

1.30

6.9

18%

1.15

5.6

20%

the

though

cident iHsmranaee Co.-——

discount

too

1.00

7.7

pay
not

the dollar.
The

much

better

competitive
position of corporate and-taxexempt bonds, in comparison with
Treasury bonds, is because of the
higher yield which is available in

•

5.00

5.8

Manufacture

2.00

37%

5.3

1.31

30%

4.3

2.00

6.9

Insulated

rate,

paid for corporate new issue
flotations
does
not
matter
too

wire

and

Kings County Trust

Company, Brooklyn, N. Y.
Kingsburg Cotton Oil Co
Kingsport
Book

4.00

4.7

0.20

10.0

products

Press, Inc..—

fO.77

0.17

7.2

1.00

14%

6.9

2.8

manufacturing

Kinney Coastal Oil
Crude oil produced

Kirsch

Company

•

Manufacture

Venetian

blinds,

1.25

:V-.-

5.0

Communication

the

issuer,

since

of this cost is absorbed

Life insurance

acted,

since

the

Central

lag
the

Looking Towards December

Although the December opera¬
tion is nearly a couple of months.
away,"it is nonetheless gettingattention already from the money
market.

The

income taxes.

mediate

Koehring Co.

The

recently

issues which
new

money

considered

offered

were

for the Treasury
to

have

been

(Special to The Financial Chronicle)

the

was

side

-as

far

concerned.

the

Yet

yield

1.00

76%

1.3

1.15

4.1

these

two

2200 Sixteenth Street;

metal

14%

very

Brokers in

tinued

unit, funds are being put to work
in equities. The sharp uptrend in
prices of common stocks in the
last few months,., which followed
severe,

decline that started in

1957,

can

be attributed

largely to the strong inflation bias
which pervades among those with

Stocks and Bonds

]
j
|
|

(
f

Underwriters and Distributors

of
:

(Chicago)

Makes and

wholesales men's

clothing

;

With

0.30

14%

4.4

10.0

1.00

16%

6.1

2.70

3.8

8.00

125

6.4

gas

decrease

the

con¬

value

carried
mainly through the purchase
monetary

unit

being

1.20

equities, there has been a rap¬
idly decreasing -interest in the

purchase of fixed income bearing
obligations, and this is especially
true of the government intermedi¬
ate and long-term bonds.
In jus¬
tice to the bond market, however,

4.9

1.20

2.4

products

issues of corporates and tax-

return

Details not complete as to possible
longer record,
t Adjusted for stock
dividends, splits, etc.

because
these

their

stocks.

page

the
level
of
obligations has

Telephone WHitehall 3-7600

enough to attract
from institutions that are

not interested in

Continued

Members New York Stock Exchange

high

money

exempts has not been affected very
much by the flight of funds into

equities,
24%

it should be said that the flow of

been

Lakeside Laboratories, Inc.—

Corporate Teletype: NY 1-865 • Municipal Teletype: NY 1-1691

putting the bulk

resources

common

We huve direct wires to the

In most instances the need

hedge

against inflation is

paramount

among

these

Albany

bond

Chicago

Dallas

Denver

G.A.Saxton&Co., Inc.

Dallas

Inc.

Philadelphia

Louis

Indianapolis

Huntington
Kansas City

Laurel

Minneapolis

Harrisburg

Los Angeles

Montgomery

Houston

Jackson

Joplin

Malone

Muskogbb

Nashville

Teletype NY 1-1605-1606-1607

New Orleans

Portland, Ore.

52 Wall St., New York 5, N. Y.
WHitehall

St. Louis

Philadelphia

Spartanburg

Inc.

Trading Markets in Public Utility, Natural Gas and Industrial Securities

Potsdam

St. Paul

San Francisco

4-4970

San Francisco

Faiminoton, N. M.

Phoenix

Pittsburgh

Reinholdt & Gardner

Co.,

Durham

Greenwood

Grand Rapids

Schneider, Bernet
& Hickman, inc.

Hendricks & Eastwood,

Detroit

Fayetteville, Ark. Fayetteville, N. C. Fullbrton

Gfore, Forgan & Co.
Chicago

McAndrew &

Baltimore

Burlington

Boston
Cleveland

Des Moines

St.

Ashevilli

Albuquerque

Cincinnati

WIRES

following cities:

not

Beverly Hills

PRIVATE

Securities

hedging against the

and

water)

Pharmaceutical

0.65

manufacturer

Lake Superior Dist. Pwr. Co.
(electric,

the

new

Laclede Steel Co

utility

All Fixed liicome Investments

out

bottled pickles

La Salle Natl. Bk.

Public

5.7

smelting

Co.

Canned vegetables,

steel

f
}
protect against the con- j
erosion of the monetary •]

order

the

strong inflafear in this country and in

tinual

0.85

Earth moving and construction
equipment f

Basic

has been added- to

Funck

the

staff of Richard A. Harrison Inc.,

con-

upward trend in prices
stocks.
It is evident
a

•

common

•

SACRAMENTO, Calif.—Claude

were

f
compete with the infla- |
psychology which is being |
well expressed through the f

very

inters

Richard Harrison Adds

short-term

floated to raise

Corporate and Municipal

Kuner-Empson

products, South¬

Transformers and
furnaces
*

that

In Same Boat

Kuhlman Electric Co
,

talk

long-term government
issue will be part of the year-end
;
Market Trend Unsatisfactory •
financing is not creating an at¬
The unfortunate position which
mosphere that is exactly
con¬
the Treasury finds itself in has
ducive to throwing one's hat in
not
been
exactly
a
favorable the air because of a great feeling
factor as far as the government
of glee. Also, as long as the infla¬
market is concerned. There is a
tion psychology continues to be
staggering peacetime deficit that strong, the bond- market is not
has to be financed (estimated at
likely to be something to shout
more than $12,000,000,000), in ad¬
about.
'
dition to the maturing obligations
which have to be provided for.

Creamery

.' Wholesale dairy
ern California

time, does
bullish on

in which the recently introduced short-terra. i s s u e s have

by the government in the form of

Knights life Insurance Co.
>

one

way

investment funds.

Knudsen

money at that

exactly make

the government market after the

the fall of

drapery hardware

Kittanning Telephone Co

temporary.

government -market

tinues

tion

sizable

much

than 50%

which the member banks

that there

seed

cases

usually does not
or
too far behind

continual

Company

borrow from Federal.

tion
—

Inflation Bias

cable

Cotton

both

even

Government Market Victim of

Electricity supplier

(The)

able

yield of the regular

bill .rate

long

The

Kentucky Utilities Co.
Kerite

return

not

i price,

rate

new

not

higher interest rate which has to

liberal

Non-participatteg life
^

the

Treasury

can

Organization

Service station equipment'

Crushed stone

were

offering

considered to be generous.
It is believed' that the recent

rate

cut-

Kentucky Central Life & Ac:

securities;

hold

Bank
15

carbide

compositions,
; ting tools and specialties

spe¬

hand, another sharp
upswing should bring a rise in the

•

Refining Co._______

Kent-Moore

the

On the other

pressure-

petroleum and Its products

Hard

these

downtrend in

goods,

Producing, refining and marketing
of

price

cial Treasury bill, which was of¬
fered
at
the
discount, both of

-was

Company (The)

Surgical

'% 1.05

Kellogg Co. (Battle Creek)__
Kendall

Kearney & Trecker Corp.___
Milling machines

•

Treasury has

refunding operation to take care
out is stated in dollars and of in December, and must raise
in the purchasing power of in addition three or four billions

Company,

the

buyers, since what they have to

The_ tax and loan account the non-Federal obligations. The

1,270

5.6

allotments in

$100,000,

commercial

excess

offered

$50,000.for the 3%% notes
were 35%, whereas-allotments on
the 219-day special Treasury
bill,

Buildings, bridges and tanks

was

cess

5.2

-Non-participating life

Kansas City Structural Steel

since

over,

well in

were

result

of 44%.

went

amount which

above

4.6

City Fire & Marine

Insurance Co.

Kansas City Title

ing

of the

.;v
=73

The Treasury new money rais-

and

(Charleston, W. Va.)_____
Kansas

Based

Quota

Kanawha Valley Bank

that

Appro*.
% Yield

Rock Island Rome, N. Y.

Salt Lakb City

Santa Ana

Syracuse

San Antonio

Santa Fi

Toronto

Tulsa

Seattle
Utica

Victoria, Tex.

Washington

Whither

Wichita

October 84 IMMk

The Commercial and, Financial Chronicle.. .Thursday,

(1474)

Continued

State Level
Banking Problems

Resolving
for

on a

savings bank branch of¬

new

fices.

charter.

blink away the fact that it is not
reasonable so to restrict our state-

this matter of bank

Diverse reasons
involved here but we cannot

Federal
were

Branch Banking
•

expan¬

associations

chartered

that

they

branches, we have have substantially less opportun¬
been continuously mindful of the ity than their counterparts under
fact that growth in population and Federal charter.
business has required more bank
So far our mutual savings
sion.

through

in the interest of im¬ banks have not been involved in
public service. The De¬ this problem of maintaining state
partment therefore since 1955 has authority as opposed to national
approved 92 branch applications authority for the simple reason
for bank and trust companies; 15 that there are no Federal charters
for savings banks, and five for for savings banks. To be realistic,
savings and l o a n associations. however, we must take cognizance
These
have
all
been
approved of the study the savings bankers
only after lengthy consideration are giving to the possibility of
of the factors involved in serving seeking Federal charters for mu¬
the public convenience and neces¬ tual savings banks. As I have said
sity and the probability factors in the past and will say again, I
for the successful operation of the believe the dual banking system
is a good one and I cannot there¬
particular branch in question.
This problem of branches has fore logically say that there
facilities

proved

had

ramifica¬

troublesome

some

tions.

insti¬

chartered

Federally

the

from page 3

should be

Federal charter for

banks.

savings

However,

laws

that you
with

many

well

New York could follow to

permit

.expansion
through by savings banks' recent setbacks
branching in our state. These ef¬ —the developments in Chicago

orderly

forts have not been

cessful but

are

entirely suc¬
still devoting

considerable time to the problem.
In this connection it is but fair

that

note

our

state-chartered

savings and loan associations are

last

New

week

and

the failure

York Legislature to

their branch problems.
that

even

now,

many

the

resolve

I daresay
are

in the

depths of self-pity.

Nor are they
alone in this state of mind, for it

When

very

regards savings

retention of

seem to believe that
our state and Federal

restricted as they are to banking laws as they are at pres¬
but a single branch. In the past ent would be utterly disastrous.
few years we have lost 12 state Other bankers would have you
associations through conversion to believe that their doom is sealed
banks,

to supersede the

with

such

...

For

in any

latest

these pages?

prices, quotes,

information,

simply contact—

Life

Lynch, Pierce, Fenner

70 PINE STREET

Smith

NEW YORK 5, N. Y.

Offices in 112 Cities

Life

time

4.4

3.50

.561/2

6.2

0.20

sy8

3.4

311/4

4.5

fl.41

1.00

1.1

1.50

4.1

2.60

4.5

0.80

241/2

3.3

*14

0.29

0.60

2.40

f 1.15

381/4

3.0

1.80

196%

0.9

City

0.9

321/2

21 y4

2.8

Natl.

Bank

Trust

of Fort Wayne___

&ank

4.3

Trust

of Syracuse
Insurance

Co.

Lincoln Square Building
Springfield, 111. real estate
Lincoln Stores, Inc.

Co.

2.551

5.2

9.2

130

12.00

■'

-t

,■

0.40

6.7

2.65

4.9

2.00

117

1.7

fl.50

3.8

0.20

2.00 ;

3314 A 6.0

1.50

33y4

4.5
4.3

2.9

Dept. store chain In New England

Lincoln Telephone &

Telegraph

Operating public utility

Loblaw, Inc.
Grocery chain

Lock Joint pipe Co
Water

and sewer

pipe

Loft Candy Co._

3y4

6.2

Leader In the candy field

Lone Star

Brewing Co.

Lager beer

Longhorn Portland CementManufacturer of Portland Cement

Lorain

Telephone. Co.——

Operating ^public utility

•

a62

fl.37

0.60

1.25

25%

4.9

1.35

4.6

0.74

291/2
i8ys

4.1

1.95

231/2

8.3

3.00

0.70

9i/2

7.4

0.85

141/2

5.1

1.00

4.2

1.60

5.7

f2.075

6.1

0.60

137/8

4.3

4.9

Louisiana State Rice Milling
Co.
Rice and tty-products

Louisville Title Mortgage Co.
Title Insurance

that both

real estate

Louisville Trust Co.

(Ky.)

Lucky Stores, Inc
Retail

cfialxf

food

—

Utfrthern

California

account and
deposit business and
not only become a

Ludlow

Mfg. & Sales

Jute and

has

Ludlow

substantial part of their
banking activity but has become
a major factor in many banks.

burlap

Typograph

Co.

6.4

•

Typesetting equipment

Luminator-Harrison, Inc
<

Automotive

electrical

products

Lynchburg Foundry Co

generally take for granted
today, the fact that commercial
banks may also engage in the trust
business. Let me remind you that
it was not until passage of the
Federal Reserve Act in

i/:4 %

3.6

play

and

Trust

very

Dealers

0.20

—_

utility

(Rochester)

in the savings
this

work,

Lincoln Rochester

to life

gage

V ;;

7v/;/

insurance

Co.

banks have clear authority to en¬

other

Lincoln Natl. Life Ins. Co.—

national and state-commercial

that

101/2

1.00

1.5

of Oklahoma

Co.

concerted

the fact

stress

0.375

Lincoln Natl.

present time, there is no

5.9

Life, accident and health

At the

161/4

of Louisville

Lincoln

banks began accepting these
deposits and expanded their activies accordingly.
need

0.25

stain-

die,

Insurance Co._

cial

Merrill

2.1

81/2

Life & Casualty Ins. of Tenn.

national banks and state-commer¬

Marketing Depar tment

and

JXl Co.

clothing

Co.

This,

stock

475

0.50

Liberty National Life

improve their position.
they
accomplished
fairly
quickly, if we may speak in his¬
torical
terms.
Whereas
savings
accounts and time deposits were
once
almost universally consid¬
ered the province of savings insti¬
tutions, after the Civil War the

Blower

Co.

underprivileged of the bank¬
ing world.
This feeling of Jpeing discrimi¬
nated against naturally led the
into

10.00

Liberty Natl. Bank & Trust

to¬

vigor

bankers

*38

Consumer credit

the

efforts

Liberty Natl. Bank Sc Trust

in¬

came

5.8

Non-partlclpatlng.

that within a
short period the national bankers
were
convinced that they were

national

Interested.

hiatus

brief

Savings

Liberty Loan Corp.

they had learned to operate
well without it.
the meantime, state banking
a

1.85

Starting-light equipment for autos
and aircraft

crystal

—

tool

Leece-Neville

state

exist

cannot

both

after

speed,

Mfr.
.

then it made little difference be¬

statements,

associa¬

Trust

(Chicago)
(M. H.) Inc

Lee (H.

the

were

1958

Manufacture of air moving eauip.

ball was
than that
of the state supervisors and bank¬
ers who agreed with him.
At the
time, the cries of anguish were
loud and frequent.
After a time
the national banks, in turn, lost
the note-issue privilege, but by

bankers, to judge by their public

that

that "the national banks

the

chartered

Lau

Act

Bank

by Congress,
Comptroller of the Cur¬
in that year said bluntly

gether."
His
cloudy but no

June 30,

less steels

the

cause

even

National

believed

June 30,
1958

Wholesale grocer

to the national banks

rency

Paymts. to

1058

Ishpeming

LatTobe Steel •£

ing in the United States had been
achieved for all time. A monopoly
to issue notes had been granted

must be clear to us all that some

Federally

Lang

na¬
tionalization of commercial bank^

and

tion

June 30,

Household electrical products, etc.

passed in 1863, state bankers

was

naturally

12 Mos. to

Variety store chain

From Commercial

the

Based on

secutive

Landers, Frary & Clark

Banking History
v

finding' themselves at a consider¬
able disadvantage in relation to
tions and

Bank

High

Lessons

Quota-

Divs. Paid

View

Lamston

historical

these few

ponder

Extras for

Operation railroad

Lake

cata¬

Superior &

Railroad

of growth, inter¬

developments.

banks

looking

Lake

No. ConYears Cash

mean

think

% Yield

Including

strophic when the powers of rival
institutions are expanded might

tended

of their

who

Approx.

Cash Divs.

thoroughly familiar
own
history but to

years

bankers

Undoubtedly, there are many
who are thoroughly discouraged

and

cause

Traded and Most of Them Are

change, and development.
Let me begin by citing first some
commercial bank history.
Those

elsewhere.

ap¬

policy which both the

authorities

Federal

branch

Where All Securities Can Be

by perspec¬
tive, let me remind you that our
present remarkably efficient fi¬
nancial mechanism is the product

to arrive at

New

The Over-the-Comiter Market

are

your

principal

their

present

State

Continued from page 29

clarify what I

plications to the Federal authori¬

the

perspective upon our
will be able to deal
with
our
difficulties objectively
and optimistically.
I am aware
problems,

ties. I have consistently attempted

York

within

historical

mind, it would be a pity if frustra¬
tion of savings banks within the
State of New York should be the

tutions

changed.

are

opinion, this is indeed an unneces¬
sarily
pessimistic, if not near
hysterical attitude.}
I believe that if you will at¬
tempt, as I have tried, to keep

Cast iron

products

Lynchburg- Gas Co

—

Natural gas supplier

Lynn Gas & Electric Co.
Operating - public

1913 that

utility

Lyon Metal Products, Inc
'

Unlisted Securities

national

★

were

authorized

Reserve

Board.

Oilfield

WM V. FRANKEL & CO.
INCORPORATED

39 BROADWAY

NEW YORK 6

volved.

Macwhyte Co.!

Teletype NY 1-4040-4041

1.55

20%

7.6

0.60

iiy2

5.2

Houston drug chain

Madison Gas & Electric Co

1.80

3.6

2.00

8.7

1.20

6.0

Maine Bonding & Casualty Co. a20

0.80

3.6

2.50

253

1.0

Public

utility, gas and electric

Magor Car Corp.Railroad

Mahon

rolling

stock

(R. C.) Co^-

Fabricated

structural

sheet metal products

already -obtained practically
all of the powers ef the- commer¬
cial banks, including the power

that

3oy2,

Wire, rope, cables

Mading Drug Stores Co

had

to discount.

1.50

publisher
*

1919 the
State Superintendent of Banks in
New York was. able: to observe

Further, it
WHifehali 3-3960

main¬

Well-known book

In any case, by

that trust companies in this state

and

Macmillan Co.

timfe, this extension of authority
to national banks was fought bit¬
terly by state bankers and ex¬
tended
litigation carried up to
the Supreme Court was needed to
settle the constitutional issues in¬

construction

tenance

the

Fabricated steel- products

Macco Corp.

by law to engage in the trust busi¬
ness with
the permission of the
Federal

Public Utilities—Industrials

banks

Multiple line fire

and

steel

and

casualty

company
,

was

not until

1916

Manufacturers Life Insur. Co.
Life

*49

Insurance

series of amendments to the
.

National Bank Act gave the
tional banks

na¬

authority to lendou

Continued

page

Details not complete as to possible

longer record,

t Adjusted for stocte dividends, splits, etc.
a

Including predecessors.

Continued

page

Volume 188

Number 5784

Continued

from

Commerciat and

The

...

Financial Chronicle

Continued from page 30

page

(1475)

view

My
geared

The Over-Hie-Coiinter Market

Traded and Most of Them Are
Cash Divs.

Including

■

No. Con-

Extras for

secutive

12 Mos. to

Years Cash

June

Divs. Paid

tion

Paymts. to
June 30,

1958

leges

Mfrs. & Traders Tr.

IBuLj
(N. Y.)

1.80

38%

4.6

tl-19

2.00

23%
43%

4.6

ucts, Inc.

1.00

part#

(Los Ang.)__

2.00

fO-68

5.8

21%

8-2

broadening of the

1.25

7.4

1.85

2.5

*13

11.00

300

3.7

Marshall-Wells Co.

Maryland
Corp.
Auto

36%

1.50

Credit

■

Maryland Shipbuilding &
Drydock Co.
construction,
conversion,
repairs
and manufacturer
of

;

6.7
■'•:

•

fl.985

26%

7.5

Co.

1.60

4.8

1.50

63%

2.4

Accident smfr sickness insurance

4.50

108

0.20

20;

Imprinted brick and insulatingsiding

4.7

1.50

fO.79

0.85

38%

2.2

0.05

2.0

6.3

1.40

23%

6.0

31%

6.3

;

2.00

state

0.10

22
instal-

• - •-«

" "

Medford Corps-

53
"

1.4

■

--"V*

"--r-

•

26■"

3.5

2.00

125
37%

1.20

—

associations,

which

3.6

29%

4.1

4.75

4.8

2.85

62%

4.6

1.00

31'

3.2

Acceptance Corp.

1.80

25%

7.1

Merchants Fire Assur. Corp._

2.00

3.5

0.60

6.0

Merchants Fire Insurance Co.

Details not complete as to possible longer record.

making them
financing.

Chicago

York

page

the

had

institutions

doing

have

century and
to

nonsense

tions

managed

institutions

attain

and

1919

that

the

worked

laws

worst

their

Now, the evolution of our com¬
banking institutions and

mercial
of

mutual

our

institutions

been

characterized

sion

their

has

by an expan¬

services.

This

loan

associations"

York

a half—it is patent
label these institu¬

Favors Larger Tax Free Reserves

some¬

thing to be excised as alien to
free enterprise system.

With respect to commercial

banks,

my fellow supervisors and
members of the National As¬

They are the products of a free
enterprise system. And I believe
it is presumptuous and arrogant
for critics to say that the public

has been hoodwinked and mutuals

free

should be abolished.

that the commercial' banks do not

Now,

admittedly,

painting with
I have said

each

have

of Supervisors of State
Banks, are generally agreed that
they should be allowed-larger tax

economy.

nancial

have

This

true

aware

that

they

money-creating'

our

own

power,
state have virtu¬

ally unlimited branch offices. Fur¬

thermore,

institu¬

well

ing

our

operation

the

bank

reserves

has

make

our commercial banks
to obtain the huge resources they

enjoy.

And

one* final; point

bear in mind is that the

Continued

mutuals.

1922

com-

page

1958

UNLISTED SECURITIES
SPECIALISTS SINCE

doing

were

was

said that

anything from a
camp meeting.

York

New

1922

Members New York Security Dealers Association

Broadway, New York 4, N, Y.

Phone—DIgby 4-6320

DEALER SERVICE

could

race

ALL CLASSES

was
as

1933

Fed¬

the

establishment

has

Richmond

Direct Wire to All Offices

come on

PUBLIC UTILITY—RAILROAD—INDUSTRIAL
FOREIGN ISSUES

and

are

these

was

the credit unions
scene.

founded

radicalism.
a

The first
1909

Hampshire—hardly

passed

Particularly Adapted

to Service Firms
With Retail Distribution

given

the

hotbed

Massachusetts

credit union law in that

OF BONDS AND STOCKS
including

modern¬

well

this industry
an institutional arrangement
sometimes compared to the Fed¬
eral Reserve System for commer¬

have

a•

AND

under

one

horse

since

and

More recently,

CHICAGO

Offer

COMPREHENSIVE INVESTMENT

business

cial banks.

Raleigh

Teletype—NY 1-1525

Established 1928

evolution of the Home Loan Bank

System

Exchange

INVITED

JOHN J. O'KANE, JR. & CO.

eral charters have been available.

Further,

1919

NEW YORK

INQUIRIES

Your

Inquiries Solicited

FOX
F.

P.
120

possible for
now

the

Federal Reserve System-in creat¬

major, primary func¬
tion
although, in fact, they do
overlap. Each is working smoothly
as
a
segment of our financial
mechanism.

institutions

the

and in

commercial banks

fully

themselves still distinctive fi¬

are

■

Each of these groups of

tions has

are

degree

enough to indicate that

our

reserves.

enjoy tax advantages irnthe same
as the mutuals.
But they

been

broad stroke. But,

types of institutions
we have, has developed in its own
way and has attained a significant
role in

sociation

the

This was

law passed in 1851

But, certain^ basic prin¬
ciples and characteristics remain.

New York
regulating

of the best.

other states

INC., "A" Common

Greenville

serve,

obvious.

for nearly

un-American—and

public

various

present stature.

and

—

by the

these

remem¬

been* because

of the worst associations as

New

first

as some

ized

CO.

Member Midwest Stock

savings

operating

ing the associations

CEMENT, Common

INCORPORATED

Columbia

been

Needless to say, the law govern¬

INC., Common

R. S. Dickson & Company

Atlanta

mutual

have

loan

of any state in the union. He com¬
mented also that New York had

run

JEFFERSON STANDARD LIFE INSURANCE CO.

CHARLOTTEv

nation's

our

has

westward

1890

were

Banking Department,

CENTERS, Common

Established

with

and

observed

when

STEVENS-MARKETS

that

We must alt

for

territory in the
nation.
This expansion was not
accomplished without difficulty.
The Superintendent of Banks in

which it

INSURANCE

choices

came

because most of the associations in
on

We maintain active trading markets in:

GULP LIFE

—

that

ber

into being in^
response
to legitimate,
unfilled
needs
of
the
American
people.
When
literally millions of our
people have chosen to use their
funds in cooperatives and to save
years

the

available

spread

and

state

every

under

GIANT PORTLAND

had

associations

well

Continued

COLONIAL- STORES

because

1851, the savings and

movement

some

■

t Adjusted for-stock dividends, splits, au.

ATLAS SEWING

existence

"building
_

Fire and allied lines of insurance
*

mine them.

escape

can

the conclusion that these mutuals

of
1831,

5.3

Small loams and^general financing

—

person

this

then existing institutions were not

New

—

reasonable

must

merely paying: lip" service
while actually
seeking to under¬

enough has been said of history.
No

And-

without

first

established

was

into

the

and

Bank
_______

(Colorado) •

tutions.

easily
sketch
the
origin and growth of consumer
and farm cooperatives as well, but

an¬

The savings and

from those with moderate incomes

Deposit and

(Baltimore)
Mercantile Trust (St. Louis)

Merchants

spected, useful, functioning insti¬

could

pro¬

other major portion of our finan¬

By
1.80

——

National

600,000
members. Nationwide, there were
more
than
18,000 credit unions
with nearly 10 million members.

home

Chicago
Mercantile^Natl. Bk. (Dallas)

Chicago

evolutionary

the

are

which is still going on.
Let me comment also on

Mercantile: National Bank of

that you, too,

3.2

transient

Trust CO;'

credit

than

accumulating sufficient savings

•

f3.94-

thousand

one

with

in New

cess

hotel-

Merchandise

to your depositors.
You
people should be conscious

came
-

7.00r 200

Mellon Natl. Bank & Trust—

Mercantile-Safe

this

to buy securities and lend
mortgages and to render many

loan

and

cer¬

Contrast

bonds.

cial mechanism.

Sys¬

tems, Inc.

residential

' "

Melrose Hotel Co

point is
type of

same

you

of the fact

Lumber manufacturer

The

so.

the

not

services

■,

and

not

products of

Operating public utility

Dallas

4.00

Meadville Telephone Co

manufacture

We needn't

into whether

powers

softwood lumber

lation of conveyors'

wage

only in government and

of all

McCormick & Co. Inc

Design,

funds

2.5

t:.

Handling

exist¬

your

keep

started out to be.
Do you recall that originally sav¬
ings
banks
could
invest
their

McCloud: River Lumber Co._

■

na¬

with your present relatively broad

McCandless Corp.

distributors

help

now

are

tain

Mayer (-Oscar) & Co., Inc.__

Mechanical-

com¬

desirable indus¬

out of saloons.

institution

5.6

zinc, zinc products,
acid
and
ammonium

was—or

you

spices, extracts,'tea, etc.

banking

savings banks history. Even
as
1867, you were being

inquire

Hegeler Zinc

Co.

Manufacturers

the

should like to cite

would

this

Conveying equipment

Western

Both the state and

may,

earners

;v-''■■■■.■

Mathews-Conveyor Co

goods

ence

•

processing

type

one

try on the ground that

4.2

Mastic Asphalt Corp.

Rubber

Massachusetts Real Estate Co.

Meat

liberalization

commended

sociation, Ihc

sulphuric
sulphate.

equal.

are

late

Massachusetts Protective As¬

Producer

and

banking systems and sav¬
ings institutions have been thriv¬
ing—with keen competition to be

some

about

unions

early

York

Act.

were

—with their roots in

3.7

Union

once

them

sure.

fl.91

Credit

state

petitors?
.

of any

Diversified insurance

Matthiessen &

eliminated

institution hasn't harmed its
'

Maryland Trust Co. (Balti.)_
Massachusetts Bonding & In-

This
of the

tional

Ship

Real estate

has

between

powers

26%

Federal

the end of 1957 there

existed

tremendous

1.75

have in

the past, in-defense
banking group- subjected to
continuous
and
intemperate at¬
tack.-That is why I say today that
in dealing with our current
prob¬
lems, each type of banker must
make a special effort to see our
competitive
institutions
as
re¬

The movement spread
states, and in 1934 we had

year.

to other

most of the differences which

4.1

surance

powers

banks

suf¬

are

point.

Isn't it quite apparent that this

Finance

products-

make

types of institutions

financing

industrial

major changes

We may now say that the
major substantive powers of both

wholesales

insurance

Powers

banks.

hardware and kindred lines

Maryland Casualty Co.

the

same

but these

ficient

bearings

Ilsley Bk. (Milw.)

Manufactures and

cited

3.2

national

Mfr. ball arid roller

Diversified

Substantive

63-

Retail market chain

Marlin-Rockwell Corp.______

;,v".!'

Major

could be
-

■

privi¬

those

More instances of

Milwaukee

Marshall &

banking

Are Equal

Market Basket

remind

operate.

Finds

Marine Natl; Exchange Bank
of

branch

equivalent

they

5.1

17%

let

was

state banks in the states in which

Maremont Automotive Prod¬
Auto

And

only after years
dispute that the national banks

obtained

Manufacturers Trust

estate.

that it

you

June 30,

1958

■•.v.:

Nat-It Bank of Detroit

Mfrs.

Quota-

30,

real

our
finelyand^ savings in¬

lieve
we
must
have
orderly
change and not a wholesale, dis¬
ruptive, and destrictive overhaul¬
ing., That is why I will speak out,
as

Approx.
°/o Yield
Based on

that

banking

dustry will inevitably continue to
change, but as a Supervisor I be¬

Resolving on a State Level
Competitive Banking Problems

Where All Securities Can Be

BROADWAY, NEW YORK 5, N. Y.

Telephone

Teletypes

REctor 2-7760

NY 1-944 & NY 1-945

The Commercial and Financial Ch ronicle

(1476)

Continued from page

4
equality,

ment

banks

mercial

are

stockholder-

significant result of
that is that their growth in the
future can be margined when nec¬
and

owned

you

essary or desirable
sale of new issues

through the
of

stock,

san

banks have done in the last

many

few years.

possibly

cannot

serves

public discussion on your side
question.. This silence
not go unnoticed. I agree, of
course, with the tactics of those
of your strategists who decided to
play down the tax question and
advance your cause in the name

banks,

only from retained
Further, all surplus and
of
shareholders or depositors, as the
but must

come

move

well,

its of

expul¬

was

of the

expressed

the

prompted

spokesmen

Last week

dustry
what

Chicago

promises to be
tax

remain
Just

for
as

iiiT

"grandma" anecdote
somewhat pleasant and

relief

to make you feel

heavily

otherwise

in¬

Have
upon

lastingly

you

com¬

relied

loo

sentiment, not only
your dealings

Chicago, but in

with the New York State Legisla¬
ture as well?

Finally, if you could read the
minds of the individuals who cast
those 1520 ballots in your favor,

a rea¬
re¬

characteristics

the

have

you

institutions.

mutual

other

could

you

sults have been announced, probe

ing

deeper into the figures to deter¬
mine the underlying trends, so,

terested

your

or'rather, instead, with the

the sayings

other mutuals such as

associations. And

and loan

would

that your compro¬
designed to al¬
to remain in the family;

presume

you

mise

of the bankers'

association, should

the tax laws
only your¬
selves but also savings and loan
associations and. even mutual in¬
surance companies?
operate

will

that

forecast

not

govern

other

words,

abandoned

concerned?
I

you

direction
act

Now,

you

are

problem now,
are beginning

clearly, is to

which

far

Your

sure

see

the whole

can

and

you

decide in
will move

accordingly.

hope,

has

some

the

comment

the

postwar

current

This

specifically

era

problems

present
I

our

them.

see

economic life.

have

the

our

inevitable

result

the

process

institutions

have

economy.

lending

tended

Joseph Mayr & Company
Members New York Stock
50

BROAD

Exchange

STREET, NEW YORK 4, N. Y.

Telephone BOwling Green 9-2956

have ingeniously
.services. All
of

and
new

institutions

pres¬

fully to

em¬

pattern

interest

with

fluctuating rates
accompanying ups and
of
earnings .and market

the

This has meant that they
keep at least one eye on

liquidity

positions

and

relatively

difficult

challenging than it was dur¬
ing World War II and for a few

years thereafter.

Nevertheless,
opportunities

grasped
reeite
,

the

for

past

decade

them.

Teletype: NY 1-3430

Telephone

Enterprise

781(1

—

not

the

doubt

and have
need

1957

company

have

3.6

"56

3.25

4.0

*33

f0.78

391/4

2.0

'• 18

1.36

39%

3.4

1.80

31%

5.7

five

electric

New

108

1.29

241/2

5.3

formed in August

result

merger

subsidiaries of the
Electric System.

England

Messenger Corp.
Manufacture

director
dars

and

sales

service,

and

0.50

IOV2

4.7

0.50

7.5

0.80

331/2

2.4

2.75

8.9

funeral

religious

calen¬

greeting cards

Metal Forming Corp
Mouldings and tubing

Metals & Controls
Corporation
Strip metal

Metropolitan

Storage

Ware¬

house Co.

Meyercord Co.

0.425

Decalcomanias

Michigan Gas & Electric Co.

bauw

v.-ansihg)_

61/8

6.9

f 1.68

3.1

t0.88

2.3

Electric and gas utility

Mich. Natl,

Over-Thc-Counter Consecutive

Cash

Dividend

Payers From 5 to 10 Years Appear in the
Second Table

Starting

Page 41.

1.50

2414,

6.2

0.90

20%

4.3

f2.16 :

4.7

3.00

511/2

5.8

1.25

14%

8.5

1.42

46%

3.1

16"

0.275

7.1

1.20

211/4

5.6

*21

0.75

12%

6.0

a39

1.425

28%

5.0

—11

2.10

31%

6.7

tl.14

14%

7.7

0.90

14%

6.4

seek

changing
sought

effectively

and

means

economy.

compete

they

have

sought expansion through merger,
branches, or the holding company
device.

This, of necessity, has

volved

decision

the

in¬

Banking

Department and I believe this

Co.

Operating public utility

Middlesex County Natl. Bank

(Mass.)
Middlesex Water Co._
Operating public utility

Midwest Rubber Reclaiming.
Mfrs. of reclaimed rubber

Miles

Laboratories, Inc

Alka Seltzer

Tools

for

auto

Richmond

and

——

engine

repair

(Va.) department store

Falls

Tools

Natural

gas distributor

Glass

glass, wire glass,

etc.

Steamship operators
Commercial

carrier;

freight

rivers

Mississippi

Valley

Public

Service Co.

....

page

1.40

3.60

1.36

251/4

5.4

1.00

4.5

0.75

141/4

5.3

1.20

4.4

t0.99

3.3

0.50

1.4

0.75

23%

3.2

0.20

1.0

f 1.05

1.1

0.90

11%

7.6

0.525

7.2

26%

5.3

Operating electric utility

Missouri-Kansas Pipe Line..

100

3.6

Holding company

Missouri Utilities
Electricity and natural

gas

Mobile Gas Service Corp
Operating public utility

Mode

O'Day Corp

Women's

and

children's

apparel

Corp

Oil production

Mohawk Rubber Co
Rubber

back

tires, tubes,
repair materials

ml'g.:

and

cartel-

Monarch Life Insurance.
Life, accident & health insurance

Monarch Mills
Sheetings and print cloths

feeds

Monumental Life Ins.

(Bait.)

Life insurance

Moore Drop

Forging Co

Rough & machined drop forgings

Moore-Handley Hardware
Hardware

wholesaler

Morgan Engineering Co
Produces

mills,

MORGAN
•

See

cranes,

(J. P.)

Bank's

fl.28

10.00

22%

5.8

etc.

& CO. INC.

page

282

3.5

Details not complete as

t Adjusted
a

Continued

tubing

Middle States Telephone
of Illinois

Flour and

These forces have caused finan¬

adapting to

broadcasting

new

Montana ETour Mills Co

figures to illustrate.

They

BALTIMORE —BOSTON
—HARTFORD:

growth

these

seen

cial institutions

Direct

Mohawk Petroleum

financial world. There is

they have

1.50

tele

and

Miss. Valley Barge Line..

rigid

has provided almost unbelievable

Telephone: DIgby 4-2420

radio

with

4.3

2.00

Merrimack-Essex Co. (Mass.)

Roiled

and

YORK 4, N. Y.

vision

and

Mississippi Shipping Co

sharpened their skill in
investments.
In
short, banking

BROADWAY, NEW

Publishing

Mississippi

now

5.5

Bank

Another thought comes to mind.
Bankers have learned to live—not

their

National

ploy their resources.

doubt has

EDWIN L. TATRO COMPANY

Merchants

Minneapolis Gas Co

must

11% 1

National Bank &
Trust Co. (Indianapolis)

public—and in part by the

downs

0.65

Merchants

Millers

1958

127

this has been prompted in part by
the demands of a credit-hungry
on

1958

National Bank

Mobile

Miller & Rlioads, Inc..

prices.

STOCKS

Merchants

vestments,
developed

and

BANK and INSURANCE

Miller Mfg. Co._—__

rates—but

Specialists in

Bank

to
engage
in a
greater
variety of types of loans and in¬

sure

Michigan Seamless Tube Co.

significant

ing of government in war time to
the financing of a mushrooming
private

Since 1939

Paymts. to
June 30,

Chicago

Sheet

been

changes in the assets, not only of
our commercial
banks, but also of
our savings institutions.
This has
been

June 30,

Current Problems
There

30,

shift from emphasis on the financ¬

Retailing Over-The-Counter Securities

National

Boston

important, for we must
plan for the future, and we must
take cognizance of the realities of

admittedly self-in¬
ballots, as well as the

Bank

Merchants
-

honestly, after deduct¬

June

Based

General warehouse

reaching into history,
served to highlight
major movements
that have brought us where we
are today.
I should like, therefore,
I

National

discussions,

low you

and

tion

Fire and allied lines of insurance

Merchants

same

banks

i2 Mos. to

serving

velopment is with the commercial

Quota-

secutive

Divs. Paid

pre¬

your "mutuality." At the
time
you
must d e c id e
whether your best avenue for de¬

Extras for

Merchants and Manufacturers
Insurance Co. of N. Y.____

non¬

while

% Yield

No. ConYears Cash

Your

remain

"banks"

Approx.

Including

equality" you can

order

stockholder

own

ballots of all those who favor tax

Cash Divs..

problem is to decide for the future )
how much "fax

Traded and Most of Them Are

dilemma, but this is your
problem as I see it. You are de¬
posit institutions, to be sure. But

this

fortable.

future.

sonable time after the election

debate/1 respectfully submit
that its implications are not such

fire in
full scale

political analysts,

the
"grandma" of

influential

comic

equality.

the

position

tense

You were
successful in this first skirmish,
but the more important
battles
war

on
grounds of, shall
"sentiment"
were
in¬

page

Where All Securities Can Be

solution

mised by you or will it have to be

who,

say,

While

under heavy

was

for

your

you

Thursday, October 9, W3$

The Over-the-Counter Market

presumptuous

give

those

gave

Savings Bankers

concept off mutuality be compro¬

plump,

existing- differ¬
ences.
This, I submit, poses for
savings bankers a dilemma.
*

try

suffice during
Secondly, it would
appear that much of your support
at Chicago might have come from

the financial community.

compromise

Dilemma for

will

fatuated with your

of the

willingness

itself

savings bankers to sit down with
commercial bankers and attempt
to

well
ask
yourself
tactical maneuvering in

the long pull.

Chicago, one

banks'

savings

might

and

equality. Toward the end

of the convention in

unity.

basic question are another.

whether

by commercial bank efforts to at¬
tain tax

Strategy is
thing, however, and the mer¬

You

within the ABA, as we

all know very

association

one

basic

the

may

The recent mutual bank

sion

exist for the protection

be.
This is
element in mutuality.
case

conspicuous lack

did

earnings.

reserves

from

to your

afford

objectively.

and

of the tax

from

come

commercial

parti¬

additional

through

that surplus and re¬

savings and
owners

The

appeared to be

principle here has been

only

cannot,

be approached in

unduly optimistic manner.
factors must be evaluated

Some of these factors begin to
stand out even now.
First there

and still is that new funds are ob¬

tained

appraisal

Continued

your

would

It
me

coldly

Looking now at the various
mutual-type institutions, we have
an
obviously different situation.
The basic

Such

of senti¬
unity went

reason

Advises "Tax Equality" Action

profound meaning.

course,

tion

too, I suggest that you might re¬
view
the
Chicago results for a
more

position—could
honestly, I ask, feel any ela¬
in your victory?
with

along

Resolving on a State Level
Competitive Banking Problems

but

in the name of

...

Xor

stock

to possible longer record,
dividends- adits. etc.

Including predecessors.

Continued

page

Number 5784

188

The

...

Commerciql and Financial Chronicle
(1477)

Continued

from

page

)

/ :

Continued from page 32

pansion very nearly failed of pass¬
It was rescued in the
eleventh hour and was
put on the
books for another year. -I
believe
age.

The Over-the-counter Market

Resolving

Where All Securities Can Be
Cash Divs.

Approx.

Including

% Yield

Extras for

secutive

12 Mos. to

Years Cash

June

Divs. Paid

Quotation

June 30,
1958

30,

1958

Morris Plan Co. of California
Industrial

loan

necessity for a third enact¬
of the holding
company

ment

"freeze" bill indicated that

proach

Paymts. to
June 30,

Construction—neavy

Inc.__

Picture

5.2

1.40

0.75

4.00

5.0

1.25

211/2

5.8

25%

5.4

n.a.

a63

petroleum

7.5

1.20

3.7

321/2

American

Bank

Memphis

*27

16.00

395

f2.78

106

2.00:

•

2.6

491/2

-4,0

pl.00

24^4

4.0

h2.00

5514

3.6

■r.

;

Detroit

National Bank of Tulsa;-.,,.,.
National Bank of Washing¬

1.60

2.9

2.00

52%

3.8

1.50

3;9

1*0.97

2.4

fl.93

411/2

0.40

^51/2

1.50

(Tacoma)

By-Products, Inc.—

,."'V

casualty

4.7

7.3
3.1

1.00

I6I/4

6.2

2.40

3.4

Trust Co. <Albany, N. Y.) 103
Natl. Fire Ins. Co. of Hartf'd
88

1.05

3.8

products

NatL City Bank of Cleveland
National Commercial Bank &

lnsur.

National Chemical & -Mfg. Co.

•

Diversified

1.60

2X)

fl.09

4.2

Holding company; chain food

(Nashville)

—

*33

f0.525

841/2

0.6

4.1

Life, accident and health

0.90

Mortise locks

National Newark & Essex

Banking Co. (Newark)—.

138

0.4

Co.—

2.75

6.9

0.90

441/2
12%

4.0
6.6

Chain, men's furnishings

National State Bk. (Newark)
National Tank Co

146

1*2.23

1.20

45%
221/2

4.9
5.3

field

Corp

Paper

Casualty

o»n

ments.

Including

h New

14,

1958
June

and

30,

10',e

law

pro¬

which

I refer,
perhaps
only
they fully appreciate, and I will
not attempt to detail.

provisions

With

which

savings banks,
savings and loan associations and
respect to

unions,

have

the

aware

nature

of amendments to
have

given

se¬

ap-

neTxt ^ear'
* £ of the Legisla-

°u

.
could result in

'depreciation' of

A?killvtem+
^
New York s status

Poso a thi eat to
-

v~ZF~

the^ financial capital of die

be the

oppor-

would

world.'
This

"v*

attitude, shared by others
v
"
*

•

Legislature I

My optimism for the future is
based:,,on certain considerations

111

wihch

? ingredient, as I see it at this
P01ht, :is moie substantial agree-

One

seem

rather decisive to

these

the

fact

!fsrtr^a«on^.or hope. The

me.

that

all

major segments of the banking
industry have been made acutely
of

aware

which

the. specific

confront

t,3bankers than we
heretofore so that they
H?*1 speak as an industry rather
than as a conglomeration of spec a interests,., .
,

^ave

Intensive

study of these problems has given
us all the facts we need as a
basis
for

judgment,

had

bankers

and

I believe fair-minded and foresighted bankers are aware of the
need for agreement. I venture to

have

opportunity to famil-

every

one miss-

problems

us.

am sure, gives

themselves

viewpoints.

„

and

extent

meet

4.6
5.7

laws

without jeopardizing in any

2.20

8.1

way

the

4.6

1.00

5.3

34.

been

able

safety

liberalize

Finally, I
financial

these

have made in the
last few years what I consider to
be unusual progress in modern¬
izing our law with respect to the
ability of our institutions to serve
the public adequately and effec¬
tively.
Such, unfortunately, has
short,

been

the

case

with

our

con¬

tinued

2.00

40%

5.0

branch, merger and holding com¬
pany provisions of our state law.

0.15

73/4

1.9

efforts

modernize

is to stand

It is appropriate here to remind
our New York bankers that

the voice of banking in

was

declared

effected

the same time,

not available.

Continued

page

should

futility

pure

not

that

have

the

characterized

seems

who

demon¬

strate to national authorities

least know

New

been
to

York

some

what

State.

doubt

want

There

has

become

asso¬

been

the

California

investment
for

many

years, was formerly with Walston,
& Co., Inc.
In the past he was

dispensable element—that is, that
we

has

business

in¬

Lester, Ryons & Co.,
Hope Street, members

with

South

Passavant,

Congress.

must

Jr.

ciated

of the New York and Pacific Coast
Stock Exchanges.
Mr.

lation— such

stitutions Act—through

ANGELES, Cal.—Raymond

Passavant
623

the efforts of bankers to get legis¬
as the Financial In¬

Lester, Ryons Co.

(Special bo The Financial Ch»o*t»>le)

LOS

ing state, it must put its house in
order.

With
•

exemplary bank¬

manager

has

ment for

this point up

of the trading depart¬
Maxwell, Marshall & Co.

now.

The

1958

Morgan Adds to Staff

Legislative Session in

(Special to The Financial Chronicle)

New York closed in somewhat of
an

atmosphere of futility with

spect

banking problems.

which I

bill

were

think

You

And

should

will

recall

into

bear

the

1959

the

has

been

—

added

Michael
to

cific

Coast Stock Exchange.
He
formerly with Marache, Dofflemyre & Co.
was

holding company ex-

Adams & Peck
Members New York Stock

Exchange

and American Stock Exchange

DEALERS

RAILROAD SECURITIES
Guaranteed

Leased Line

Washing¬

has been about
is possible to
Congress
passed
no

ineffective

imagine.

Preferred

Bonds

Common

and

Unlisted Investment Stocks
New York 5, N. Y.

120 Broadway

Telephone RJEetor 24919
Teletype NY 1-724

major piece of legislation that the
banking industry really wanted.

the

Morgan & Co., 634 South
Spring Street, members of the Pa¬

that

ANGELES, Cal.

Berry

staff of

encouraging signs

extending

"freeze"

LOS

re¬

Leadership

ton this past year

stock dividend

all of

was

Raymond Passavant Now

the

Regaining Historical Banking

split

our

respon¬
of the Legislature
recognize that if New York State

3.2

2-for-l

convinced that

institu¬

151/2

community and

the

0.50

rale.

sible members

tions.

not

realistic¬

0.60

Institutions Act

the law which

41%

to possible longer record.

annual

bill

permitted these savings in¬

folding

1958 quotation

invest¬

2.00

dividends, splits, etc.

and

1.90

rate.

now

loans

govern¬

predecessors,

annual

pNew stock
Jan.

stock

law

Commercial bankers, I am

visions

boxes

for

banks'

the

will recall the specific

sure,

Haven Board & Carton

t Adjusted

they have clarified

Co.

commercial

products

Details not complete

will have to

banking

now.

and I believe
Mviiv VC
that
txtat
it will
JLl*
Will jDCi
be.

stitutions

Multiple line insurance

the

ally the present demands of the
public for credit.
We believe we

page

England Lime Co

printed

_with another

1959

3.5

companies

and

stand

of decision in these matters

year

I81/4

1*0.64

board

that

Ownlng Investments in several

Paper

321/2

ELECTRIC ASSOCIA-

New

provide

2.00

Hampshire Fire Ins

bank-

our

tunity to bring about the changes
we
so
desperately need in our
banking
structure.
Tt. armpars
tn
banking structure.
It
appears to

5.3

New

in that

modernized

take

Legislative Session will

37%

tools

Company's

1959

2.00

Brunswick Telephone

See

benefitted

have

•

The

where

mind.

insurance

...

Lime

Pres£>ed the disappointment felt by
legislative leaders at the failure

ours-

bus

investment powers of these insti¬
tutions.
I am sure all of you are

1*0.09

New Britain Gas Light Co.—
Public utility, gas
New Britain Machine

New

fail

This

2.5

Pennsylvania producer

utility

tunate.

16%

Pulp and papers

operating

York

positive steps to solve

7.6

1.25

Diversified insurance

Nazareth Cement Co._

Operating public utility
NEW ENGLAND GAS

of the Joint Legislative Commit1° evolve a program dealing
ing structure problems, we will be with
comPlex and controversaying in effect to the Congress S1^l demands pending for revision
that the problem is too
great for
the Banking Law. He said, furus.
This would be most unfor- ther, that a comprehensive omniNew

yet, there

tools

National Union Fire lnsur.—

Diversified

historically has been
in

rious study to all industry propo¬
sals
to
liberalize
the
loan and

Midwest storage facilities

National Tool Co

Machine

thoroughly competent, com¬
job in analyzing the
Banking Law and in working for
specific changes.* These changes
a

mendable

credit

New Amsterdam

which

-.7

equipment

New

did

ing the
0.60

study

Banking Law. The New
Clearing House Association

banks

our

4.4

National Shirt Shops of Del._

Nekoosa-Edwards

there

indecision

At the close of the 1958 Session,
one leading Assemblyman ex-

both

Some

time ago
I took the initiative and solicited
the aid of the New York Clear¬

131/2

2.20

Mfg. of precision cutting

inexcusable

character-

modernize

Federal and state law, should regain the leadership in banking

iarize

now

investments.

0.60

*61

and

(Boston)

National Terminals

•

been

with opposing say that the moderate, reasonable
Also, the numerous bankers of this state will finally
studies, hearings, and discussions assume their rightful place in
of banking problems have enabled speaking for the
banking industry,
our
Banking Department in the past
legislators to become well in- I hope that next year they will
four years.
We have recognized formed and have provided them speak so loudly and so clearly
that the economic changes I brief¬ with ample data as a basis for that
they will drown
out
the
ly summarized above have made determination of legislative policy, raucous and self-seeking
minorichanges
in our Banking Laws
.'
ties which, until now, have accomDeplores
necessary
with respect to loans
Resort to Financial
plished nothing but obstruction.

have

Participating & non-participating

;

>■>.

5.2

Screws, bolts And nuts

oil

in New York

opportunity to come
solution to the problem

had

speak of something
less conspicuous but .equally im¬
portant
in the policies
of the

and

sells

courts in

precipitated the holding
application in the first

Let

Cereals, animal feeds

Natl. Shawmut Bk.

company

3.00

National Reserve Life Insur¬
ance Co.

and

which

153

National Oats Co

National Screw & Mfg.

have

with

York

National Lock Co

Manufactures

this matter and
now

National Life & Accident InCo.

our

its intention

recourse

ing House Association in

stores

surance

Bank has announced

has

efforts

National Food Products Corp.

have

would

Insurance

thus

contravened

place.

Animal product*

National Casualty Co

existing dis¬

across

and

com¬

the holding company application.

.(Ohio)

health,

lines

not to have

National Bank of Toledo

and

considerations before the Board
of Governors that it chose to
deny

Commerce

of San Antonio

Paints

County Trust Com¬
our
view, this would

Subsequently, First National City
69

National Bank of

Accident,

this

banking limitations. For¬
tunately, Pur efforts, combined
with those of others, put sufficient

Commerce

National Bank of

National

possible,
For

branch

4.1

Commerce

Norfolk

ton

authorities.

effectively

Orleans

National Bank of
of

should

permitted expansion of

trict

National Bank
New

State

took prompt

mercial banks

industrial chemicals

York

far

state

pany.

treatments

Natl. Bk. of Comm.(Houston)
National Bank of Commerce
in

New

have

New Orleans

■

2.25

distributor

National Alununate Corp._«_

National

Bank and The

Mystic Valley Gas Co.__

and

premises

action in
opposition to the holding company
proposal put before the Board of
Governors by The National City

Cottonseed oil

and

basic

he^HuNlwYori0, /og/izant "1 Snk^pX"fo? thtstate"3
futility which
P, y °L
'
ized

have consistently oper¬
control over bank¬

that

reason

financing and insurance

Water

the

with

Murray Co. of Texas

gas

which

rest,

Motor Finance Corp.-.

Natural

ing

Advertising

Advertising films
Auto

One
ated

Service Co.

Holding

Company Bid

Sulphate pulp and paper

Motion

supervisory agency.

-i.

the

engineering

Mosinee Paper Mills Co....„;

our ap¬

5.7

1.60

22;-:

Solution to

1958

company

Morrison-Knudsen Co.,

opportune time to review

2.10

Based

legislators must realize that

many
the

Traded and Most of Them Are
No. Con-

Private wire to

Philadelphia

The Commercial and Financial Chronicle

(1478)

have

not

docs

substantial

any

of deferred

amount

Continued

carloadings for the first
eight months of the year dropped
than 26%

under

page

;

The Over-the-Counter Market

year ago,

;

Where All Securities Can Be

the first few weeks
only about 5%
Net income last

loadings

from

maintenance.

While

...Thursday, October 9, 1958

of September were

Traded and Most of Them Are

under last year.

Norfolk & Western Railway

equalled $7.75 a common
and, even with the present
pickup in traffic, it is doubtful
year

Cash Divs.

Norfolk

Western Railway

country's largest car¬
bituminous coal, being
exceeded only by the Chesapeake
& Ohio Railway.
Soft coal pro¬
vides almost 90% of tonnage and
since the road has only a rela¬
of

one

the

riers

minor passenger business
problem,
it can -rapidly bring
operating costs tinder control.
tively

dustries shoqld continue at a good
rate of

operation, it is likely that
bituminous shipments in the final
weeks
of this
year
will about
equal those of a year ago.
Increased efficiency has

the

road

approach this
net
with
expenses
under good
control. If September net income
approximated around $4,000,000,
that

piayed

cents

months

nine

first

would amount to $4.50 a common
reported net income of share as compared with $5.75 a
This has been demonstrated in $4,840,079, equal to 85 cents a share reported for the first threerecent months when only a small common
share, or the second quarters of last year.
Directors of the road are sched¬
pickup in carloadings enabled the highest net income reported for
road to c-xpand its profits margin. any August, being exceeded only uled to meet for dividend action
August was the best month the by the $5,134,434 or 90 cents a on Oct. 28 and, in addition to the
carrier has had so far this year share reported for the like 1957 regular quarterly dividend of 90
and
September showed further month of August. August also was cents a share, there is a good pos¬
improvement. The gap between the first month this year in which sibility that in view of the recov¬
traffic this year and last is be¬ the road reported net income in ery in earnings in recent months,
ginning to narrow. This is partly excess of $4,000,000 and it is in¬ that the Norfolk & Western again
due to increased shipments in re¬ teresting to note that this
was will pay a year-end extra divi¬
cent months but also to the start accomplished despite
a
drop in dend of 40 cents, a share. This
of the decline in general business gross revenues of about $4,000,000 seems possible also in view of the
from that of August 1957.
activity a year ago.
Gross road's strong financial position.
In general the export movement revenues totaled $19,118,185, ap¬
of coal continues at low levels proximately $1,000,000 more than
because of a drop in business ac¬ in June, the previous high month
tivity abroad and also from stock¬ of this year, but down about 17%
piling which has brought about from the $23,103,048 reported in
a surplus of coal.
In addition, it August last year.
is understood that exports from
Research economist, writer and
Sharp control
over
expenses

Operating public utility in

;

New Haven

Britain

Poland

and

showing increases.
of coke coal continues at

have

played a large part in the show¬
ing.
Operating e x p e n s e s for
satis¬ maintenance of way and struc¬

factory rate.

tures

Inventories of coal in this

coun¬

try have been reduced pver the
past
year,
and the pickup
in
manufacturing activity has played
a
large part in improved ship¬
ments. Much depends, of course,

and

-.y" Fire,

road

The

claims

was

able

a r

fective Oct.

motive industry.

has

1958.

If these two in¬

been

officially stated that it

Treasury,

New

stock

latest

information,

Marketing Department

NEW YORK 5, N. Y.

7.0

19%

5.7

Niagara Lower Arch Bridge alOl

2.00

4.4

1.20

17%

7.1

1.00

23%

4.3

0.50

1.90

35%

5.4

f0.19

17%

1.1

Refractories^ 11

Rhode Island

1930's.

Manufactures

York

YEARS

Furniture and

ber
to

(Brookline, Mass.)
North American Life
Insurance Co.
Life, accident & health

North American

tl.98

6.8

1.70

6.8

North River Insurance Co.— 120

GROWTH
ending December 31)
1957

Diversified

Electric Sales Revenue

$14.7 million

$24.8 million

Gas Sales Revenue

$10.6 million

$20.3 million

$1.26

$1.31

$1.35

lor 12 months

$1.38

Henry

Retail

'57

Wallich

$1.50

$1.52

ending August 31,1958

(111.)—

natural

20%

4.3

0.33

3.6

gase*

Reinsurance

has

been

Yale

Economics

2.50

0.70

:*9%

:48

2.80

1.55

120

Cambridge 39, Massachusetts

5.8
7.4

hoists

and

•

3.3

Insurance

Co.

1.3

3.2

16%

6.0

1.60

1.00

fll.40

2.25

38%

5.8

1.00

2.3

2.25

3.0

1.50-

1.8

1.00

18%

5.3

11.44

2.8

1.00

18%

5.4

6.00

2.6

445

—

Co.

Fire and casualty Insurance

Northwestern National In¬

Co.

surance

Multiple

(Milwaukee).

line insurance

Northwestern

National

Insurance Co.
Life insurance

a num¬

institutions

and

United States Govern¬

Electric and gas public utility

Northwestern States Portland
Cement Co.
-

Mfr.-

and

sale

of Portland cement

Noxzema Chemical Co., CI. B
cream

consultant to

Life

Northwestern Public Service

Distributes "Noxzema"

-V

i95
:18

Northwestern Fire & Marine

and

medicated

shaving
cream

Noyes (Charles F.) Co
'

member of the

Economic
on

Association,

Brown

and

He will reside

Co.

4.00

8.0

0.54

22%

2.4

3.8

Diversified insurance

Ohio Citizens Trust Co.
23

fl.53

3.00

8.6

1.35

7.1

1.25

Gears, speed reducers, ete.

Tannery

Ohio National Life Insurance
Life

3.4

insurance

Ohio State Life Insur. Co

::34

2.00.. 265-

0.8

Life, accident and health

Ohio Water Service

Chevy Chase, Maryland.

25
36

Metal products

Ohio Casualty Insurance

Foreign Rela¬

Miss Mabel Inness

10.5

Real estate

Ohio Leather Co

He is married to the form¬

Retails

treated

water;

1*1.49

29%

5.1

wholesales

untreated

Joins Walston Staff

Oilgear Co.

(Special to The Financial Chronicle)

LOS
B.

ANGELES, Cal.

Haas

is
&

—

affiliated

now

Co., Inc.,

550

2.40

35%

6.8

0.65

11%

5.7

1.50

32%

4.6

Old Line Life Insurance Co.
of America
a46

1.25

2.8

1.00

3.8

Hydraulic machinery

Sheldon
with

South

Old Ben Coal Corp
Marked coal

Old Kent Bank and Michigan
Trust Co. (Grand Rapids)
Formerly Old Kent Bank

Two With Jas. Fallon
(Special to The Financial Chronicle)

LOS
Jakell

England Gas and Electric Association

Northeastern Ins. of Hartford

for five of these

University
Oxford, and received a Ph.D.

have

727 Massachusetts Avenue

distributor

Northeastern Pennsylvania

was

'58*

For further information write

"New

4.1

In Illinois

Insurance

has two daughters.

968 million

$84.8 million

$1.46

34%

0.875

operating public utility

Spring Street.
$1.22

1.40

Excavating machinery

Mr. Wallich is

12.19 million

Earnings
share

- -

Northern Trust (Chicago)—.
Northwest Engineering Co.,

financial

Walston

common

—

Insurance

North Shore Gas Co.

Class A

and

American

'56

„

Operating public utility

agencies.

tions.

'55

refractory materials

and the Council

'54

North & Judd_

Northern Oklahoma Gas Co¬

from Harvard.

5.4

Life, accident and health

Division.

several

and

bedding springs

Norfolk County Trust Co.

He attended Munich

'53

No-Sag Spring Co—.

1951.

ment

'52

saws

North,

Chicago real estate

Chief of the Bank's Foreign

has served

'51

rasps

Ave.,

Corp,

Mr. Wallich has written widely

per average

files,

Michigan

Northern Ohio Telephone Co.

in the field of monetary problems
and
economic
development and

$49.7 million

Nicholson File Co.
900

From 1941 to 1951 he

Professor

Utility Plant Investment (net)

Whirlpool

Rapids Bridge

Northern Life Insurance

with the Federal Reserve Bank of

since

633 million

Yorker"

utility

Joint operator of

re¬

Research

4.65 million

1.10

ment business in New York in the

years,

Electricity Sold

Trust

will not cover presently ex¬
isting functions.
Mr. Wallichj was in the invest¬

New

Offices in 112 Cities

KWH of

5.4

in¬

Newport Electric Corp

and

Merrill Lynch, Pierce, Fenner & Smith

MCFof Gas Sold

peril

4.3

The position which
Mr. Wallich will fill is a new one

1948

multiple

"The New

Diversified

and

other

and

5.1

83%

lated matters.

(Year

29%

1.50

Cranes

the budget on
the
economy,

simply contact—

70 PINE STREET

il.50

3.20

Federal

these pages?
or

a90

3.625

of
variety
problems, such
as the impact

prices, quotes,

5.0

taxation

For

5.1

64%

conduct

studies

in any

York

Publishes

economic

...

35%

3.20

and allied lines

Northern Insurance (N. Y.)—

will

1.80

New Yorker Magazine

Mr. Wallich

Interested.

1958

Conn.

Wide variety of hardware

the
ef¬

ations and production in the auto¬

the climbing rate of steel oper¬

195S

■

reduce expenses without any ma¬
terial
deferred maintenance.
It

marine,

surance,

new

and trans¬ ■.j Henry C. Wallich of New Ha¬
portation expenses were cut to ven, Conn., who is on leave from
$9,590,176 from $12,612,556 in the his position of Professor of Eco¬
like 1957 month. Total operating
nomics, Yale University, became
expenses
in August were 23%
an
Assistant
down from the year ago month.
to the Secreequipment,

Paymts. to
June 30,

108

New York Fire Insurance Co,

Fire brick

professor made
Treasury aide.

university

(Paterson, N. J.)

the carrier

Export

tion

June 30,

New Jersey Bank & Trust

Treasury Department

been

Based

Quota-

Conn.

Water Co.———

Operating public utility

30,

1958
•v.

Wallich Gets Post in

Great

June

Divs. Paid

New Haven Gas Co

for the
this year

secutive

12 Mos. to

Years Cash

in the

share earned

Extras for

•V-\f

can

1957 month, earnings

large part in the improvement
of
earnings of the Norfolk &
Western. In the month of August
a

Approx.
% Yield

Including
No. Con-

and

Charles

become

Boulevard.

with

Co., Inc.

Tassill

connected

James L. Fallon

ously

Life, accident and health

ANGELES, Cal. —Lennart
with

Old

Republic Life Insurance

Company (Chicago)
Life,

a22

accident and health

Co., 7805 Sunset

Mr. Jakell

Daniel

was

previ¬

Weston

Details not complete as to possible

t Adjusted for stock dividends,
a

Including predecessor®.

1 Annual

rate is

indicated.

longer record,

splits, etc.

;

^Volume 188

Number 5784

The Commercial and Financial
Chronicle

...

(1479)

The Over-the-Counler Market

Cash Divs.

Including

Where All Securities Can Be
Traded and Most of Them Are
Cash Divs.

Quota-

12 Mos. to

tion

Years Cash

Divs. Paid

■V

•'

Paymts. to
June 30,
1958

5.7

Omaha National

Bank

2.00

3.2

Oneida, Ltd

Manufacture
and

sterling,

1.00

silverplate

16%

©pelika Manufacturing Corp. *10

f0.77

China tableware
1

•

Towels

and

linens

14
VT''\'v ' v:- -*:1

■'

©range County Telephone Co.

0.80

softeners and
resistant equipment

Pheoll
■

2.7

metal

...

Inc.
-for

Rockland

Each old

Transportation
street

common.

Orange & Rockland Utilities,
Inc.

;

—*44

—

Orangeburg Manufacturing

brushes

and

20
o

„

1.20

fl.50

•

7.3
.

7.1

20%

7.3

*•>,

1.60

30%

5.2

0.85

26%

3.2

0.90

4.5

Diversified insurance /

48%

4.9

'-.f.

Pacific Insurance Co. of
New York
—

2.40

f0.77

(N. Y.). Name changed May 1957.
Multiple line insurance
'
•

Pacific Intermountain Exp—

1.00

10.00

1.00

Pacific Power & Light Co

26%

3.8

1.60

4.4

f0.93

4.9

1.00

16%

6.2

0.50

13%

3.8

7.50

*29

0.45

1.00

210

Pacific Vegetable Oil Corp.—

6.0

0.60

7.00

0.325

2.50

-32

3 00

310

2.00

3.00

63%

2.50

57%

100

3.00

47%

Operates Diesel line in Carolines

4.2

Financing company

28%

5.0

5.9;

Steamship Co.—

cargoes—Great Lakes

1.50

52 r

2.9

115

1.90

38%

5.0

0.80

*19

fO.49

Plainfield-Union Water Co.
Operating public utility

Planters Nut & Chocolate-

20%

4.0

products

Plymouth Cordage Co

wrapping machines

Pacolet Manufacturing Co.—

35%

1.4

Pope & Talbot, Inc

—

Paragon Electric Co

146

7%
13

Automatic time controls

3.00

65%

4.6

Port Huron Sulphite &
Lightweight papers

to possible longer record,

are

0.90

24%

Paper

Continued

proud to

the

announce

Trust
one

Co.

Three Billion Dollars in

-Vegetable parchment,

outstanding insurance

...

for

of the most remarkable growth records

to one

6.0

in the

history of life insurance.

7.6

Franklin's distinctive

each

waxed

0.50

1.30

18%

7.1

5.8

savings and protection plans

9%; 5.2

and

Peden Iron & Steel Co

1.75

*30

1.00

23%

4.3

*14

6.00

57%

10.4

0.85

14%

5.8

has established

our

dominant position as the

Hardware

Insurance

—

Diversified insurance

largest stock legal

reserve
■

Pemco Corp.

life insurance company
■/

Porcelain, enamel and ceramic frits
and colors

in the United States devoted

Pendleton Tool Industries,
Inc
Mechanics hand tools

Pennsylvania Engin'g Corp..
refineries;

f 1.17

18%

6.3

1.20

5.5

1.05

28%

3.7

2.65

55%

4.8

chem¬

Pennsylvania Gas Co

■

•

of individual

exclusively
.

to the

■

underwriting
•

(ordinary) insurance

Operating public utility In Penn¬
sylvania and New York

and

Penobscot Chemical Fibre Co.

Voting
Mfr.
r

bleached

soda

and

annuity contracts.

sulphite

woodpulp

Peoples First National Bank
& Trust Co.
(Pittsburgh).
Peoples National Bank of
Washington (Seattle)

1.50

2.3

Peoples Telephone Corp

4.00

4.5

....

The Franklin Life Insurance

Telephone utilities

Springfield, Illinois

Pepsi-Cola General Bottlers,
Inc
•

0.6O

fl.00

Soft drinks

Perkins Machine & Gear Co.
Precision gears

Permanente Cement Co

0.54

Cement and gypsum
products

manufacturer
•

--r

Details not complete as to
possible longer record,

t Adjusted for stock

dividends, splits, etc.

10%

5.6

9.1

18%

2.9

•

4.3

3.6

page 36

adding another chapter of achievement

Enthusiastic acceptance

Beer producers

oil

*•'

5.1

made papers

mills;
plants

6.3

> *

Stockhold¬

Pearl Brewing Co

ical

■

recent attainment of

Paterson Parchm't Paper Co.

Steel

•

Merged
in
June
1958
with
County
Bank
•&
Trust
Co.
(Patterson) to form New Jersey

Peerless

4.3

Details not complete as to
possible longer record,
t Adjusted for stock
dividends, splits, etc.,

1% held.

4.7
-

t Adjusted for stock
dividends, splits, etc.
j No stated rate. But $0.35 per
quarter paid since merger,
a
Including predecessors.

Trust

custom

2.6
3.9

231/4

Passaic-Clifton Natl. Bank &

;

1.00

Beverage bottling

receive

*10

manufacturing

Panama Coca-Cola Bottling.

Bank

3.8

West Coast lumber mills

Radio, TV-electronics; garage door

ers

6.2

building

Manufacture of rops, harvest
twines, twisted paper products

Water

113

■

'Pittsburgh Fairfax Corp

openers; hollow core doors

•

Pioneer Trust & Savings Bank

bus

Packard-Bell Electronics

Textile

3.1

trading and

Package Machinery

22
29

4.8
♦

-Electric operating utility

88%

Peanut

Planning mill products

7, .Automatic

3.3

Texas

Owning and operating apartment *

11% v: 6.5

Pacific Natl. Bank of Seattle

Vegetable oil
manufacture

10%

Western States

Pacific Lumber, £o._—

3.1

0.35

Formerly Pacific Fire Insurance

Three Billion Dollars

cars

Pacific Employers Insurance
Co.

Motor freight;

1.00

Insurance carrier (except life)
as

0.10

Utility; Dakotas and Minnesota

Pacific Car & Foundry Co

2.75

Operating public utility

Details not complete

1958

Otter Tail Power Co

railway

1958

Paymts, te
June 30,

and matched sets

Makes

Complete line of work clothing

)

persons

tion

June 30,
1958

30,

machinery

Oshkosh B'Gosh
t

4.9

•

and

Piedmont & Northern Ry

Bulk

Phoenix Insur. (Hartford)

23%

0.40
•

industrial

foundry

4.5 :

Manufacturing Co

Manufacturers

Louisiana

Pictorial Paper Package Corp.

San Francisco office-theatre bldg. ■

!■

5.6

jl.40

Bank.

railway r\nd motor

Based

(Chicago)

Philadelphia Suburban

Orpheum Building Co
•

19%

fl-17

pipe, conduit and underfloor

Osborn

0.875

Co.
Manufacture bltumlnlzed fibre

a21

Transportation Co.

exchanged

new

3.25

California,
holdings

Philadelphia Suburban

Utilities,

common

41%

Textile fabrics

Pickering Lumber Corp

fasteners

Philadelphia National

5.3

6.0

corrosion

Merged
Orange

Pioneer

Exhibition and office
building

Co. 'v:--,
in February 1958 with
Rockland Light & Power to form

0.12
2.50

forg-

Philadelphia Bourse

Orange & Rockland Electric

June

% Yield

Quota-

Paper boxes

Manufacturing Co....

Manufacture

Operating public utility
■

Water

5.5

12 Mos. to

Phoenix Silk Corp

and

Pfaudler-Permutit Co.
5.3

secutive

Pioneer Finance Co.

pone Mulliken
jlroad track equipment,
and machinery

Extras for

Years Cash
Divs. Paid

1958

hemlcal compounds

5.9

22% \

1958

No. Con¬

Approx.
-

Including

gas

rolite Corp.
Petti
—„

1.20

30,

1958

Popular candles

;l" /■:

Petroleum Exploration
Producing crude petroleum
natural

stainless tableware

Onondaga Pottery Co

June

Cash Divs.

Paymts. to
June 30,
June 30,

Personal Industrial
Bankers,
Inc.
Peter Paul

1958

2.00

tion

Small loans

12 Mos. to

% Yield

Based

Brewing

secutive

Divs. Paid

June 30,

Olympia Brewing Co—
1

June 30,
1958

Based

Quota-

Years Cash

.% Yield

Extras for

secutive

Approx.

\ ■

Extras for

<•

Approx.

Including
No. Con-

No. Con-

FOUNDED

CHAS. E.

1884

BECKER, President

Company

The Commercial and Financial Chronicle

..,

Thursday, October 9, 1958

(1480)

normal in others.

work has continued to

hold

this year, buttressing the econ¬

Jr.,

Heldenfels,

Fred

omy,

points out, and new record levels
ha construction activity and con¬

indicate continued
general economic expansion.
awards

tract

The head of the highway con¬

stabilizing force in our na¬

tional economy, which

focus

national

brings into

AGC

our

slogan

through

Progresses
Construction.'
'America

■

influence of our industry

"The

the rest of the economy

is very

great because construction is the
and country's largest single produc¬
tion activity, accounting for more
president of The Associated Gen¬
than
one-seventh of the Gross
eral Contractors pf America stated
National Product annually and a
recently, at the mid-year meeting

range

4oing, both in the con¬
struction industry and in the na¬
are

in general. As a
matter of fact, only now are we
able to tell with a reasonable de¬
tion's (pconomy

gree of confidence how this year
is likely to turn out economically
on

the whole.

"For

than half of 1958 it

similar

proportion

total

em¬

ployment, directly and indirectly.
of construction ac¬

The vast scope

obviously is of great im¬
portance to producers of equip¬
ment, materials and supplies, to
transportation, and to the pur¬
chasing power
of the nation's
tivity

labor force.

Department of Commerce
and Labor have reported their
estimates of new construction vol¬

very

months

grade.

K. V. Zwiener Named

Boys Clubs Director
Kenneth V. Zwiener, President,

and

Savings

the
In

Bank,

Chicago, has been elected to the
board of directors of the Chicago
Boys Clubs.

The dollar volume of construction

activity has continued to hold up
this year, after reaching a record
level in 1957. In doing so, com-

struction activity has provided

volume of construction activity in

strong bulwark to the rest of the
nation's economy. While the re¬
cession

was

Harold Strolz Joins

NEWARK, N. J.—Kerbs, Haney
Stock Exchange

Stock

have direct wires to New

With Smith, Barney & Co.
give strong support to the find¬
preplanned contract construc¬
(Special to The Financial Chronicle)
keep it from ings of a telegraphic survey con¬
ducted by The Associated General
getting still worse. When the de¬
CLEVELAND, Ohio —Peter B.
Contractors of America among its
cline
was
Fritzsche has become associated
checked, rising con¬
125
chapters and
branches
struction activity set the pace for
with Smith, Barney & Co., Union
throughout the country in June? Commerce
Building.
the rest of the economy and did
,
The

preponderance of re¬
plies in the survey indicated that

anything .pise to stimu*

great

construction

late general recovery.

volume

would

rise

i i 14

(Special to The Financial Chronicle)

(Pa.)

now

Oreg.—Donald C.
with E.

affiliated

Co., American Bank

M. Adams &

tools,

bolt

Gas Light

utility (mfrs.

5.1

0.45

7%v

5.8

cut¬
-

Electric

0.50

10 %

4.7

1.20

25V4

4.8

1.00

13%

f 1.79

35%

5.0

gas)

Portland General Electric
utility

Steel Corp

Portsmouth

Interests

substantial

Owns

Corp.,

Iron

and

Detroit
companies
In

Co.,

fields

Mining

and

potassium

refining

Pratt, Read & Co
Piano and organ

Princeton

1.20

4.00

5.0

1.00

14%

7.1

1.60

18%

8.5

1.00

16%

'6:0

1.75

35%

keys,

Water Co

Operating

7.5

public utility

••

Produce Terminal Cold Stor-*
age

Co.

Public

——

cold storage warehouse

Progress Laundry Co.
Laundry and dry cleaning

Providence Washington Ins.Multiple line Insurance

Provident

Savings Bank
Trust Co. (Cincinnati)

5.0:

Provident Tradesmens Bank
& Trust Co.

(Phila.)

Public Service Co. of N. H.__
Electric

Public

2.32

46%

5.0

1.00

18%

5.5

f0.76

3.00

public utility

Public Service Co. (N. Mex.)

21%

3.6

7.9

utility

Publication Corp. vot
Owns rotogravure printing plants?

Over-The-Counter Consecutive Cash Dividend

Payers From 5 io 10 Years Appear in the
Second Table

Starting

Punta Alegre Sugar Corp
Cuban holding company
Purex Corp.
Makes

and

"Purex"

011

Page 41*

18% " 16.3

3.00

*16

fO.99

24%

4.0

*10

0.30

14%

2.1

2.00

6.5

*12

f1.43

40%

3.5

0.10

3.3

fL80

"Trend"

Purity Stores, Ltd
California food chain

Purolator Products

and air

gas

Quaker City Life Insurance
Co. (Pa.)
accident &

health

Queen Anne Candy Co
Bar and bulk candy

Quincy Market Cold Storage
Boston

Building.

39%

„

Public

Life,

Ebbert

1958

hand

Filters oil.

E. M. Adams Adds
PORTLAND,

equipment and hydraulic power

York.

than

Portland

coming months.
"The figures on contract awards

spreading, the strength

1958

2.00

ters, body and lender repair tools

tion clearly helped to

Mechanics'

Steel

Co., members of the New York
and the American
Exchange, have opened a
tivity soared to record heights; the branch office at 1164 Raymond
dollar volume of contract awards Boulevard. The new office will
has also climbed to all-time high
be
under
the
management
of
marks in May, June and July, ac¬
George
J.
Haney,
as
resident
cording to the F. W. Dodge Cor¬
partner.
poration. This should mean con¬
The
new
office will provide
tinued expansion and
a
record
complete investment services and

quite the
for business in general.

1958

Potash Co. of America—

only has construction ac¬

Divs. Paid

Inc. (Mass.)— *20

Cleveland-Cliffs

Hemphill, Noyes & Co.

High

"Not

industry,

construction

the

the story has not been
same

1958.

Quota-

metals,
refractories,
saws
and
tools, fitting^ wire rope and related products
.

tools

Trust

Extras for

Manufactures electrical equipment.
Industrial
rubber
products,
steel
and
tool steel,
copper
and alloy

Dollar Volume Reaches Record

Construction Industry Holds Up
"In

through

ume

_v..

Porter (H. K.),

"The

evident that business in

■

Porter (H. K.) Co.
.

first
eight
August, the
general was in a slump.
Then
last
month reported, new con¬
(Special to The Finhncial Chronicle)
along in August, the economic in¬
struction
activity
reached
the
BEVERLY HILLS, Cal.—Harold
dicators .began .pointing upward
largest dollar volume ever record¬ Strotz has become associated with
for the first time in about a year.
ed for any month, with a total of
Hemphill, Noyes & Co., 9478 Santa
Business confidence began to rise,
$4.8 billion. This brought the total Monica Boulevard. Mr. Strotz was
and now it is generally felt that
for the first eight months to $31.5
formerly a partner in Daniel
while it may take some time for
the country to get back to the billion, an all-time high for the Reeves & Co.
period, about 1% above the pre¬
peak rates pf economic activity
vious record of $31.2 billion set in
prevailing up to about a year ago,
the same months of 1957.
Kerbs, Haney Branch
things are definitely on the up¬
was

-w-'.

Based on
tion
Paymts. to
'
secutive 12 Mos. to
/'Years Cash June 30,, June 30. June 30,
No. Con-

" "

1958, $7.1 billion in 1959, $7.3 bil¬
in 1960, $7.7 billion in 1961,
$8.1 billion in 1962."

Harris

% Yield

Including

•

and

Approx.

Cash Divs.
V-

According to a re¬

by the Bureau of Pub¬
Roads,
capital expenditures
for highways by all units of gov¬
ernment
are
expected to reach

lion

Governing and Ad¬

Traded and Most of Them Are

billion in the calendar year

Where All Securities Can Be

cent report

tracting firm of Heldenfels Bro¬

visory Boards held at Atlanta, Ga.,
that now we ought to see "how

the rest

lic

$6.2

the longhighway program begins to

hit full stride.

thers, Corpus Christi, Texas,

of the A. G. C.

page

The Over-the-counter Market

strong

and into 1959 are the

of this year

construction industry
fulfilled its historic role highway construction

has again
as

for

from

upturn in residential construction
and the steadily rising volume of

"Thus the

construc¬

The dollar yplume .of

market

construction

recovery.

indications

"Other

major role the industry is
playing in helping to pull the nation up the road of economic

Contractors' spokesman reveals

tion

Continued

during the second half of the year
in most areas and remain at least

Analyzed

Construction Industry Prospects

6.0

0.95

31%

3.0

a72

0.90

13%

6.9

1.40

40%

operation

Ralston Purina

Animal feeds, breakfast foods

Joins Jamieson
(Special to The Financial Chronicle)

MINNEAPOLIS, Minn.—Harold
V. Anderson has joined the staff
of Jamieson & Company, First Na¬
tional Soo Line Building.

Real Estate Investment Trust
of America
Investment real estate

Red Owl Stores, lnc
Wholesale

retail

and

Reece Corp.

food

chain

(Mass.)

3.5
.

1.10

18%

1.50

25%-

5.9

0.50

14%

3.3

0.65

7.2

1.60

3.0

fl-72

3.2

5.9

Makes button hole machines

Reed (C. A.) Co., class B
Crepe paper

Reinsurance Corp.
Writes oniy

of N. Y.__

remourance

Reliance Varnish Co
Paints, varnishes and enamels

SWIFT, HENKE & CO.
MEMBERS MIDWEST

Reports available

Republic Insurance (Dallas)->

Fire and casualty

STOCK EXCHANGE

Republic

insurance

Bank

National

Dallas

Underwriters—Brokers

Gulf Coast Leaseholds

Republic National Life Insur¬
ance Co. (Dallas)

0.20

Topp Industries

Republic Natural Gas

0.80

51
29%

2:7

1.00

12%

8.2

8.3

Listed & Unlisted Securities

Republic Supply Co. of
California

Craig Systems

Suppliers and

Straus, Blosser

McDowell

0.4

Natural gas and oil producer

well

Yuba Consolidated

and

distributors of oilsupplies

industrial

Revere Racing Assn

0.60

Rhode Island Hospital Trust.

4.00

4.3

Richardson Co

0.75

11%

6.5

0.775

15%

5.0

Dog racing, near Boston
MEMBERS
DETROIT

NEW

YORK

STOCK

STOCK EXCHANGE

•

EXCHANGE

AMERICAN

•

MIDWEST

STOCK

EXCHANOC

STOCK EXCHANGE (ASSOCIATE*

Husky Oil of Wyoming

Manufacturers of rubber and

SOUTH LA
CHICAGO

SALLE

plastic industrial products

STREET

Rich's, Inc.

3, ILLINOIS

LEASON 6- CO.
NEW YORK
DETROIT

KANSAS

TELEPHONE
ANdover 3-5700

CITY

TELETYPE
CG

MILWAUKEE
GRAND

Riegel Textile Corp

Incorporated

Wide

RAPIDS

MT. CLEMENS

39 South La Salle Street

650

CHICAGO
PRIVATE WIRE SYSTEM
Retail

COAST TO COAST
T rading

Operates Atlanta department store

STate

2-6001

CG 364-365

line

textile

1.05

7.0

1.25

7 8

products

Rieke Metal Products Corp..
Heavy metal stampings
*

Details not complete as to possible

t Adjusted
a

for stock

longer record,
dividends, splits, etc.

Including predecessors.

Continued

page

Volume 188'

Number 5784

...

The Commercial and Financial
Chronicle

(1481)
Continued

jrom

page

Cash Divs,

....

The Over-the-Counter Market

■

•

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

June

Divs. Paid

Where All Securities Can Be
Approx.

Including
No. Con¬

Extras for

secutive

12 Mos. to

Years Cash

June

Divs. Paid

30,

1958

% Yield

Quotation

June

30,

Based

Paymts. to
June 30,

1958

Dayton department
Power steam

Risdon

—

1.20

'4.00

4.1

33%

3.5

4.9

Leading rice miller

and

Roanoke Gafc Co

Security National Bank

1.20

17%

6.9

0.80

5.0

f3.20

5.1

29
^

1.60

1.00

Buttons

12%

8.0

1.00

21%;

4.7

1.00

15%

6.3

1.80

4.6

f2.16

37%

and

distribution

the

Tool Co.

0.15

10%

1.5

1.15

5.5

steering

'1.70

271/4

6.2

0.40

2.17

Manufactures
and

other

Supplies

Smith

__y_

0.25

2.00

5.7

0.30

11%

2.5

1.50

.1.15

2.00

Co.-*.-^i——*
commercial

k0.75

15%

4.8

Sateens, broadcloths, twills
St. Croix Paper Co.—

1.00

15%

5.00

9.4

1.25

22%

5.5

Joseph Stock Yards Co.__

7.00

f 1.16

48%

2.4

1.55

18%

8.3

0.60

11%

5.3

2.40

49%

4.8

Livestock

St. Paul Fire & Marine Insur.

insurance;.

operator

busses

San Jose Water Works
utility

(water

company)

San

Miguel
Brewery,
(Philippines)

Beer and

Sanborn

14.0

•'

Stockyards._

San Antonio Transit Co

Public

inc.
_—

;

•

*10

1.20

12%

9.4

3.25

6.1

dairy products

Map Co.—

Fire insurance At real estate
maps

Sargent & Co.

1.00

Hardware, looks and tools.
Savannah Sugar ROfining

16%

6.1

5.00

5.6

Schenectady Trust Co. (N.Y.)

fl.80

2.9

Schlage Loek Co

t0.99

3.0

Georgia operator

Locks

and

Schuster

builders' hardware

(Ed.)

*16

Three Milwaukee dept. stores

Scott & Fetzer Co.
4—
Vacuum

Scott &
Builds

1.00

16%

6.2

2.20

8.1

cleaner manufacturer

Williams, inc.—
knitting machinery

42
•

£2.53

28%

0.60

10%

2.50

3.6

1.15

2.6

63%

3.2

Scruggs-Vahdervoort-Barney

9.0

Department stores; St. Louis,
Kansas City, Denver
*

Seaboard

5.6

Surety Co

Diversified insurance

Searle (G. D.) & Co..
Pharmaceuticals

Sears Bank & Trust Co.

(Chicago)

Seatrain Lines
Transports

freight

cars

*17

0.50

6.1

3.20

75%

4.2

2.50

3.4

ships

Second Bank-State St. Tr. Co.
Second National Bank
of Saginaw.

Details not complete as to
possible
Adjusted for stock dividends,

Including predececfi®—

longer record.
splits, etc.

k Plus

two

Vapor-

Heating

shares held.

Corp.,

common,

for

each

100

2.50

4.4

4.00

5.4

0.70

83%

2.1

12%

6.5

4.3

0.80

f0.88

20%

£0.44

•

Southeastern

So.
v

baker

California Water Co

17%

Casualty Co.

£0.07

2.00

f0.575

1.12

0.775

16%

5.1
:/.,y
4.8

' 5%.~

1.3

•;'•••

Communications services

Southern Oxygen Co.—„
Compressed gases

Southern Union Gas Co.—___
gas

Diversified insurance

tribution

Rower

So. New England Tel. Co

Natural

2.4

-•

0.90

Water; electric ind Ice interests,
Operating public utility

production

and

'■

Narrow

5.2

4.8

27%

4.1'

tapes

£r0.40%

1.75

6.7

Southwest Natural Gas Co.—

2.00

22
21

f 1.46
1.55

28%

31%
26
22

4.5

6.4
5.6
7.0

•

1.55

7.4

Engineering Works

2.50

4.0

(J. Hungerford) Co.—

2.65

£2.23

5.6

1.22

4.9

Southwestern Investment Co.

Sales, financing and personal loans
Southwestern Life Insur. Co.

f0.545

15%

3.6

1.90

103 %

1.8

Southwestern States Tel. Co.

1.20

Operating public utility
Speer Carbon Co

23%

5.1rn

1.50

6.5

Non-partlclpatlng

life

1.50

29%

4.1

30%

5.0

products

shirtings

Spokane

and

dress

International

1.00

7.7

1.50

5.2

1 1.20

3.5

goods

Rail-

road Co.
carrier

....

Electronic components

Springfield F. &

M. Ins.

Co.

Multiple line insurance

distribution

•

Spindale Mills, Inc

Northwestern

1.20

3.9 '

Sprague Electric Co
61

Electricity supplier

Yarn

6.6

v.-..

Drug Corp

Carbon, graphite and electronic

0.20

Southwestern Elec. Service._
1.30

1.9

Southern natural gas
supplier

Southwestern

0.20

4.4

and

insurance

•'

webbing*

Southland Life Insurance Co.

1958 to

dis¬

Weaving Co
fabrics,

■■■'r

38%

Wholesale drugs

Springfield Gas Light Co
Massachusetts

£1.00
"

105

2.60

29%
1

operating utility

3.4
'

5.3

and

Items

Products Co

1.00

25%

3.9

0.80

14%

5.6

Details not complete as to
possible longer record,
t Adjusted for stock
dividends, splits, etc.
t Current rote is $1.00:
r

split five-for-one in May, 1958.
Yield based on possible
10c quarterly payments.
1 Plus 1/10 of a share of
$6.50 pfd. for each share of
common held.

Details not complete as to possible

t Adjusted for stock

6.6

1958

Life, health and accident

Operating public utility

Maine producers

Intra-city

3.3

Brewing Co.

and

1958

Natural gaa supplier

Southern

f0.09

Mfg. Co

Minnesota

8.8

■■■

South Atlantic Gas Co

grand stands and bleachers

Union

9.6

Paper and paper products

Fire and casualty

refrlg-

—

Paymts. to
June 30,

Manufacture

Sugars, Inc

Southeastern Publie Service.

...

223/4

railroad

St. Paul

5.9

heists

Snap-On Tools Corp..^_

Sonoco

the

Sagamore

25%

6.5

turbines and valves

machinery

Inc

Manufactures steel scaffolding,

Heavy manufacturing, hydraulic

6.9

metal products.

Safway Steel Products, Inc..

St.

0.60

Manufacturer of soda fountain *
Ice cream fruits and flavors

2.9

following markets:
general industrial, food, chemical
and

mechanics^hand service tools
t

textile

;

Mining machinery

royalties

Safety Industries.

3.5

Co.

10.0

Southern Colorado

Smith (S. Morgan) Co.

royalty Interests

Shops

June 30,

Bk.

Southeastern Telephone Co.Operating public utility
Southern Bakeries Co.—

'•

Paints and varnlshm

Sabine Royalty
Corp.gas

Based

Development Co.

Southerh Fire &

and lines

and

National

Corp.

Smith

gears

Royalties Management Corp.

Oil &

4.9

Smith-Alsop Paint & Varnish

South

inc.—

Affiliated with, producers of many

Saco-Loweli

11%

Portable tools

Royal Dutch Petroleum (NY)

gas

4.3

(St.

oration

Skil

Women's coat* and suits

and

Rothmoor Corp.

Oil

Castings

plywood doors and lumber

1.20

30,

Electricity supplier

Co.

•Sivyer Steel Casting Co
14

Rose's 5, 10 & 25c Stores, Inc.

fO.58

Iowa livestock market

5.8

2.6

June

Operates Louisiana sugar
plantation

1957.

Sierra Pacific Power
Operating public utility

Roddis Plywood Corp

"Ranier" and "Brew 65" beer

Rockwell Mfg. Co

nations

4.2

1,10

;

Sioux City Stock Yards

23%

April 1957.

for share.

145 stores

1.00

Formerly Side's Seattle Brewing
4
Malting Ce. Name changed

Merged in February 1958 with
Orange & Rockland Electric Co.
to
form
Orange & Rockland
Utilities. Stock exchanged share

cranes

Sick's Ranier

Rockland Light & Power Co.

Operates

2.00

tion:

OR royalties

Southdown

Name changed in March
First Geneva Corp.

Manufacturers

2.6

Shuron Optical Co.

—

Ross Gear &

tndifstr***

—

Sherer-Gillett

Rockland-Atlas Natl. Bank of

and

gas

Bottling

Manufacturer

Granite
quarrying and mfg. of
granite cemfctary monuments,
markers, etc.

tools

23%

Shepard Niles Crane & Hoist
Beetrlc

Operating public utility
Rock of Ages Corp

power

£0.59

Vulcanlxars

Rochester Telephone Corp.—

Manufacture

to Dec.

Flailing reels, rods
Shaier Co.

5.0

...

Rochester Button Co

Meters, valves,
parking meters

12 Mos. to

Class B

Shakespeare Co.

Insur¬

Co.

Diversified ftsrurance

3.4

Bottler of carbonated
beverages

materials

American

nity Co.

Seven-Up
Louis)

South Carolina

m•'

Formerly Selected Risks Indem■

Manufacturers of construction

Boston

•"

,•

Surveys for oil; and

47%

Diversified Insurance

Robertson (H. H.) Co

ance

■

Quota-

secutive

1.60

Extras for

Divs. Paid

3.5

Selected Risks Insurance Co. *25

packager

utility. Distributes natural

Rochester

Seismograph Service Corp.—
■

a25

gas

——

Security Trust Co.

11%

South Texas

—_

Rochester
•

0.40

% Yield

No. ConYears Cash

1958

(Charleston)

New Haven

generators

stampings

Paymts. to
June 30,
June 30,
1958

Approx.

Including

and

Title insurance

River Brand Rice Mills

Public

Security-First National Bank
(Los Angeles)
Security Insurance Co. of

store

Manufacturing Co

Small metal

1.50

Instalment financing
personal loans

Greensboro (N. C.)
Security Title insurance Co._

Rike-Kumler Co.

Based

Securities Acceptance
Corp._

Traded and Most of Them Are
Cash Divs.

30,

1958

Cash Oivs.

% YfeW

No. Con-

■

Approx.

Including

/•■••V

•

Riley Stoke# Corp._AJ

longer record
dividends, splits, etc.

Continued

page

The Commercial and Financial Chronicle
38

...

(1482)

Federal

Nadler Offer Solution

Dean Collins and Dr.

Reserve

the

Treasury

versus

Continued

bond market is
weakened by the policy of the
Reserve authorities of using only
of the government

To Federal Debt

Management Problem

of the present dilemmatical Treasury debt-man¬
agement problems, economists Collins and Nadler recommend,
is to compel institutional investors to carry certain medium
and long-term governments, broaden Fed's selective credit
powers, and explore large scale refunding into long-terms.
The economist believes it unrealistic to expect the best solution
could be achieved in the near future—i. e., marked public debt

legislation
that
would make debt management ef¬
fective without handicapping the
of

the other hand, the Treas¬
should endeavor to finance its
cash requirements in an anti-in¬
flationary way, namely, through
the sale of long-term obligations
If,

ury

non-bank

lead

investors, this could
in gov¬

further decline

bond

ernment

prices and a sub¬
stantial rise in long-term rates of
interest in general. Such a devel¬
opment could have an adverse ef¬
fect

home construction, public

works, and business activity as a

whole, particularly if the Reserve
authorities at the

employing

Rowland

Marcus Nadler

Collins

some

of business

probably subject the Fed¬
Con¬

of New

chasing power of the dollar, ac¬
cording to a bulletin entitled "Re¬
cent Changes in the Money Mar¬

ket," just issued by Dean G. Row¬
land
Collins, Director, and Dr.
Marcus Nadler, Research Direc¬

Manufactures

of the Institute

the

able for bank investment, the Re¬
serve

authorities

furnish

the

reserves^

would

banks

either

the

have

necessary

through

open-

market purchases or through low¬

ering

reserve

resulting

requirements.

increase

the

The

money

supply would feed the forces

inflation.

three to five years.

the contrary, the debt is still ris¬

and

the

constant

refunding

operations continue to complicate
the

credit

control

policies of the

Federal Reserve authorities.

their

assets

long-term
This

and

government securities.
assure
a
steady de¬
such obligations since

would
for

mand

the assets of these institutions are

and

Loans

considerably in the
future.
Thirdly, the possibility
should be explored of carrying out
large-scale refunding operations,
such as were undertaken recently
in

Canada,

to reduce

Bank of America

the short-term debt.

California-Pacific Utilities Co.

many

drastically

These

proposals
would
raise
additional problems. Never¬

theless, they

Nevada Natural Gas Pipe Line Co.

are

worthy of seri¬

consideration

ous

Langendorf United Bakeries, Inc.

and

the

ex¬

haustive studies that would have
to be made before they could pro¬
vide

the basis for legislative

ac¬

With Leward M. Lister
(Special to The Financial Chronicle)

UNDERWRITERS

AND

BOSTON, Mas s.—James B.
Cooper

now

associated

Leward M. Lister &

INCORPORATED

DISTRIBUTORS

eral

with

Co., 80 Fed¬

Street.

AMERICAN

STOCK

000 Montgomery St., Teletype SF 885

EXCHANGE

Offices Serving Investors Throughout California and Nevada

With Jaffe, Lewis Co.

LOS ANGELES

647 South Spring St., Teletype LA 533

11%

6.1

2.25

35%

6.3

'/.'v-f

2.50

33%

7.4

155
28

1.70
1.00

42%
19%-

4.0
5.1

6.00

280

2.1

*36
22

2.40
0.10

4.0
3.5

1.85

J 22 '

0.70

7.8

0.20

4.0

business,

finance

State Planters Bank of Com¬
&

merce

Trs.

(Richmond,

Va.)
Stearns

Manufacturing Co—

2%-

Manufactures concrete block mak¬

equipt.

ing

and associated

Items

Lithograph

Labels,

packets

and

8.4

boxes

Stern & Stern Textiles, Inc
Silk, rayon and nylon fabrics

Stonecutter Mills Corp.,
T)1a«

CI. B

ffthrlftfl

nnri

Stonega Coke & Coal Co.
Coal

pers,

printing

fine

fO.39

7.4
2.5

1.25

4.2

Strathmore Paper Co
Manufactures

19 '

15%

Stouffer Corp.
Restaurant .chain

1.40

lumber

and

pa-

•

...

artists' papers and technical

;

papers

Stratton &
Wholesale

Terstegge Co.—_

1.20

5.5

11,

1.00

18%

5.3

hardware

Strawbridge & Clothier
Large Philadelphia department

Btore

Struthers Wells Corp.—

1.60

7.6

0.64

26%

2.4

Fabricated metal products; chem¬
ical and refinery equipment

Stuart Co.

Pharmaceutical manufacturer and
distributor

Stuyvesant Insurance Co

m0.50

25%

2.0

1.05

16%

6.2

5.10

Auto and marine insurance

Suburban Propane Gas Corp.

Sun Life Assurance
Life.

Also

large annuity business

Super Valu Stores, Inc
Wholesale
t

Manufactures

hose

—

1.50

39%

3.8

0.825

13%

6.1

and

(rubber

small tires

Syracuse Transit Corp
Local

22
23

food distributor

Swan Rubber Co.J
plastic)

1.5

339-

bus

-18%.; 11.0

2.00

operator

Tampax, Inc.
Miscellaneous

2.00

15
cotton

products

Tappan (The) Co.

2.00
j ■

51%

3.9

28%

7.0

*23

ranges

Taylor-Colquitt Co.

•

- -

1.75

6.3

0.80

11'

7.3

Railroad ties and poles

Taylor & Fenn Co
Grey iron alloy castings

Taylor Instrument Cos
Mfr.

scientific

compressors,

co.

fl.33

144

0.9

z0.91

8.3

3.1

small

Fund,
10

Inc.—

Terre

4.4

Television-Electronics
Open-end

5.4

Telephone Service Co. of
Ohio, Class B
Holding

28%

2.25

instruments

Tecumseh Products Co
Refrigeration
engines, etc.

fl.52

investment

mutual

co.

common

•

0.50

carrier

Malleable

Haute

Manufacturing Corp

0.75

7.9

Iron castings

Terry Steam Turbine Co
Turbines

and

reduction

Texas Natl. Bank

*50

11.00

160

6.9

gears

(Houston). *34

2.50-

0.80

ITT

4.1
'

8.0

Makes cotton yarn

(ASSOCIATE)

PRIVATE WIRES TO NEW YORK AND ALL DIVISION OFFICES

0.70
'

trades, etc.

Textiles, Inc.

MEMBERS: PACIFIC COAST STOCK EXCHANGE • MIDWEST STOCK EXCHANGE

SAN FRANCISCO

7.5

State Natl. Bank of El Paso-

Railroad
,

First California Company

4.4

brushes,

Tenn., Ala. & Georgia Ry. Co.

tion.
_

3.60

states

Southern

Gas

OVER-THE-COUNTER GROWTH STOCKS

2.50

Propane gas distributor

medium-

& Finance Corp.

State Loan

panies and mutual savings banks,
to maintain a variable percentage
of

10.0

personal

and

Stecher-Traung

bound to grow

Southwest Gas Corporation

sells

and

Hardware for building

future.

Secondly, it may be desirable
was the case after previous major
to enact legislation requiring cer¬
conflicts.
For
well-known
rea¬
tain institutional investors, par¬
sons, this did not materialize.
On ticularly the life insurance coming

0.90

and seasonings

Corp.

public debt would decrease,

4.5

State Bank of Albany

The

obligations

44%-

/■'

Stanley Works

develop in the period ahead.

of Interna¬

5.5

2.00

....

polishers,

waxes,

with the Federal Reserve's credit

near

32%

Jersey

Food colorings

for the gov¬
sound fiscal
coordinate them

velopment in the

4.5

and

Stanley Home Products, Inc.
(Voting)

Suggests Alternative Plan
public debt of the United
The problem of coping with the
tional Finance of New York Uni¬ States, the New York University
large floating debt
bulletin states, while not unduly Treasury's
versity.
could be approached in a number
The current policies of the Fed¬ large in relation to the Gross Na¬
of ways,* according to the Insti¬
eral Reserve, the bulletin points tional Product and disposable per¬
tute's
study.
One would be to
out, are influenced primarily by sonal income, has become difficult
broaden the powers of the Fed¬
the fear of inflation. But the prin¬ to manage in view of the fact that
eral Reserve Board to enable it
a large part of the debt is of short
cipal source of inflation today is
to direct or retard the flow of
the large deficit of the Federal maturity and a considerable por¬
credit into certain segments of the
Government. If, as a result of the tion is in the form of demand
economy irrespective of general
increased money supply caused by obligations. Despite the magnitude
market
conditions,
the
of the public debt and the rating money
financing the deficit through the
of government securities as the over-all availability of credit, and
banks,
the
inflationary
forces1
the level of interest rates. The
should
reassert
themselves, the highest quality investment of the
Federal Reserve would feel im¬ nation, the market for medium- powers of the Board could be in¬
and long-term government obli¬ creased by giving it authority to
pelled to adopt a policy of credit
control real estate and consumer
restraint. At the same time, how¬ gations is rather limited. Conse¬
credit, to regulate medium-term
ever, it has to stand ready to sup¬ quently, at times the fluctuation
in prices is such as to render them commercial bank loans to busi¬
port the Treasury in its refund¬
ness, and to require banks to hold
ing operations and in its new bor¬ a risky investment for those who
a minimum amount of secondary
rowings
in
the
open
market. may have to sell before
maturity. reserves in the form of Treasury
Therefore, if the Treasury should
After the war it was hoped that
obligations with a maturity of
offer short-term
suit¬

tor,

lire

Stange (Wm. J.) Co

criticism

vate sector of the economy should

and

Screws and screw machine products

policies. With a marked reduction
in the public debt, the problem of
and force a return to a policy of
active credit ease. The problems debt management would in time
solve itself.
In view of past ex¬
confronting the Federal Reserve
will be even greater if a strong perience, it would, however, be ~ "~
unrealistic to expect such a de¬
demand for credit from the pri¬
public

and

1.80

Diversified insurance

The best solution,

Fire Insurance Co.

Standard

however,
this
obligation
runs
counter to the Federal Reserve's

and

1958

>29%

Cotton spinning, dyeing and
•bleaching

it is clear that it has
implied obligation to assist the
Treasury in its refunding and
borrowing operations. At times,

policies

the trend

1.35

bonding

Standard-Coosa Thatcher Co.

insurance

marine

ment agency,

credit policies.

Paymts. to
June 30,

1958

v%r.

Co. (Detroit)
Casualty,

independent govern¬

June 30,

Operating public utility

Reserve

Federal

the

While

tion

30,

1958

and soy beans

Standard Screw Co

Board

June

Standard Accident Insurance

tude.

and the increase in unemployment

Processes corn

Stamford Water Co....

investors, and it will take
time to overcome this atti¬

many

12 Mos. to

% Yield
Based on

Quota-

govern¬

attractiveness

their

reduced

secutive

Staley (A. E.) Mfg. Co

undoubtedly

has

would

gressional

the pur¬

their efforts to maintain

even
The

eral Reserve Board to severe

authorities

Reserve

were

long-term

course, would be
ernment
to
adopt

reversal

time

restraint.

credit

moderate

Federal

same

policy

and

securities

ment

Extras for

Divs. Paid

;•

that can decline
within a short time by nearly 13%
are
obviously too risky for in¬
vestors looking for a highly liquid
and safe investment.
The recent
drastic decline in prices of inter¬
mediate-

No. ConYears Cash

the

Bonds

prices.

Dilemma's Other Half

the

consider

should

market

bond

and

Approx.

Including
■

■

was disorgan¬
offering of even a
relatively'small amount of bonds
led to
a
substantial decline in

fiscal policies coordinated with Fed's
credit responsibilities. Reference is also made to Fed's policy
favoring Treasury bills in open market operations.
Congress

Cash Divs.

They have adhered to this policy
even
at times when the govern¬

reduction, and sound

enactment

Traded and Most ef Them Are
'

ized

Where All Securities Can Be

operations, except when it is
considered imperative to support
the Treasury financing activities.
ket

ment

page

The Over-the-Counter Market

Treasury bills in their open-mar¬

The way out

from

the position

time

same

Thursday, October 9, 1958

(Special to The Financial Chronicle)

Details not complete as

CLEVELAND,
M.

Cibula

Ohio—Lawrence

now

affiliated

with

Jaffe, Lewis & Co., 1706 Euclid
Avenue, members of the Midwest
Stock

Exchange.

to possible longer record,
splits, etc.
of Stuyvesant. Life-Insurance Co.,

t Adjusted for stock dividends,
mPlus
each
z

3/80ths

for

share held.

investment income and 55 cents in
capital gains. The quotation is the offering or selling price
and the yield is based on that figure.
.
?
:

Total includes 36 cents from

Continued

page

Volume 13d

-Number 5784...

The Commercial and Financial Chronicle

(1483)

Continued from page 38
"

The Over-Hte-Counter Market

Extras for
12 Mos. to

Divs. Paid

Approx.

secutive

June

Quotation

June 30,
1958

30,

1958

Based

*12

f 0.57

Third Natl. Bank in Nashville
Third National Bank & Trust
Co.

(Dayton^ Ohio)
(Mass.)

Thomaston Mills
Wide

Life, accident

fabricators

insulation,

1.25

3.5

Greeting

United

1.25

fiberglass

f0.69

1.75

Chicago- office

3.00

(Ky.)

0.95

24%

3.8

Time, Inc.

0.40

2.0

3.75

61%

"Life," "Time,"
"Fortune" & "Sporta Illustrated"

Timely Clothes, Inc

1.00

and

*12

Mfg. Co

bronze

nesota
Title

2.35

15 ;

Co.

0.20

2.15

Trust

Co.
1.50

.30%

0.90

5.0

16%

1.40

Gasoline pumps

Manufacturing Corp.

stationary

f2.86

1.15

5.3

5.4

101

2.8
6.7

6.8

14%

machinery,, blower

2.00

6.9

1.40

20%

6.9

truck

0.70

1.10

4.0
1.4

76%

health

Trenton Banking Co.*,—
Trico Products Corp

*34

-1.20

3.00

4.3

50%

5.9

Insurance

ti.oo

26%

3.8

*0.75

10.3

Trust Co; of Georgia

22.00

670

Tucson Gas Elec. Lt. & Pwr._

3.3

1.40

3.5

0.60

3.2

4.00

5.0

1.00

Diversified

insurance

Bicycle saddle^

and

Clutches

and

gears.

(

rubber

Tyler Refrigeration
Commercial

Corp

retail

(Cleveland)

California

Union

0.70

11%

6.1

0.70

11%

6.2

0.30

4.4

2.60

aal.60

2.00

4.7

1.36

28%

4.8

1.25

40%

3.1

0.80

14%

5.5

f2.90

5.2

utility

redwood

Manufacturing Co.

Chucks, hoists, and castings

Metal

Power

distribution

Natl.

burgh

48%

5.00

645 '

0.0

1.40

5.0

*42

6.00

6.5

Insur-

4.4

2.60

65%

4.0

0.45

3.0

Co.

ance

iron

ingot '

molds

f(T.49

and

♦

1.25

5.0

0.20

2.9

*■ /

f 0.47

16%

2,9

Wisconsin

11-25

3.0

2.00

—

.*•

dorp.,

„_■>

Owning and operating apartment
house in Philadelphia
Warehouse & Terminals
Corp.
and

outdoor

1.45

104

3.20

70%

4.5

0.25

7.7

Warren

1.25

5.2

Washburn Wire Co

8.5

fl.46

30%

Sand,

4.8

0.15

gravel,

lime

Bros.

0.10-

5.3

fl.98

39%

5;0

2.00

42%

4.7

1.40

34%

4.1

2.00

23%

8.5

storage

and

12
15
22

concrete

Co.

—

Paving contractors

(S. D.)

Co—

papers & allied

Washington

3.0

products

Co.

'
.

National

Insur¬

(Evanston, 111.)—

0.80

1.3

2.25

8.3

1.10

20%

5.4

2.00

4.1

—23

0.70

5.0

Life, accident and health

Washington Oil Co.—
Crude oil and
gas producer

Washington Steel Corp.-

1.60

1.20

0.60

10.0

1.00

4.2

Weingarten (J.). Inc.-

0.70

4.7

Wehbarh Corp.. class B

3.00

39%

7.6

29y4

5.5

14%

8.1

Producer

of Micro
steel and strip

Rold

stainless

Waterbury-Farrel Foundry
Makes metal working
machinery

Watson-Standard Co.

Manufacturer of paints, varnishes,
industrial coatings, chemical com¬

pounds,
glass

producer

and

distributor

flat
'

street

Wp°'
of

0.675

3.1

f0.625

4.5

0.80

13%

5.8

chain

Maintenance

and Installation
lighting systems

miral Products

Sanitation products

—

f0.95

35%

2.7

Details not complete as
to-possible longer record,
t Adjusted for stock dividends, splits, etc.

to possible longer record,

etc.

Continued

EVERYONE BENEFITS FROM CENTRALIZED MANAGEMENT

The

same

high standard of

tralized

reason

control of

such

3.7

2.70

3.6

0.80

61%

1.3

Union Planters National
Bank of Memphis

1.70

42%

4.0

Union Trust Co. of
Maryland

2.00

4.4

Union Wire

0.70

20%

3.5

Oil and
and

Gas

water service is found in

Chico, Cali¬

any one

of the

Company.

for this uniformity of excellence is the

operations

engineering,

cen¬

construction,

purchasing and sanitation, plus the combined experience of central
headquarters specialists.

natural

gas

Rope Corp.—
ctohiolete

-t Adjusted* for
stock

direct bene¬

CALIFORNIA WATER SERVICE COMPANY
374 West Santa Clara Street

as to possible
longer record,
dividends, splits, etc.

Annual1 r~*~

are

Corp. of

Manufactures Wire, wire fopeand
slings.

Our 231,845 customers and 8,838 stockholders

Youngs-

production

Sam

5.3

1.5

Supermarket

' ■

(Winston-Salem)-^
Manufacturing Co. of

Warehouses

5.4

>
*.

0.60

Walker

Insurance

Valley National Bank

Wachovia Bank & Trust

Walnut Apartments

wall-

tackle

ficiaries of the economy and efficiency of centralized management.
38

Detallk

Life

Auto parts

The primary

1.40

State

other 26 communities served by California Water Service

Virginia

3.3

*33

...

oil

fibre

Details not complete

0.10

Wire and springs

Valley Mould & Iron Corp...

Phoenix

; :
Non-participating only
Vulcan Mold & Iron Cb,^—.
Cast

53%

casualty insurance

gas

fornia—in Redondo Beach, 600 miles south—or in

Pitts¬

town, Ohio

Crude

and

land

5.0

poles

Bank

Union Natl. Bank of
Union

Oil

45%

Manufacturing

Co.
Union

stationery

Natural gas-

Volunteer

fittings

Utah Southern Oil

coal

;

9.0

soft

mase.

Union Bank (Los
Angeles)
Formerly Union Bank & Trust
Co. Name changed
Jan. 1958.
Union Commerce Bank

Union

2.6

refrigerators

Uarco, Inc
Business

2.375

utility

Company
and

3.00
2.50

accessories

Fire

goods

U-Tote-My Inc.—
grocery,

;

0.35

6.0

;

building
Tyer Rubber Co...
Manufacturers

5.3
•

•

City real estate

Bagley Corp.

Theatre and office

Drive-in

;

ln?urance

Twin Disc Clutch Co
220

*50

(The) Co

Home

1.15

Kentucky

Printing

Upson-Walton (The) Co
Utah

*10

.4.,; ■

utility

gas

Twin City Fire Insurance Co.
Diversified

and

blocks and rope

3.4

Manufacturing Co

Electric

0.90
•

t Adjusted for stock
dividends, splits,

Troxel

Owns

3.8

Warren

Upper Peninsula Power.

Universal

Ingot moulds and stools

Manufacturers of automotive
equipment

Company

26%

distributor of
opthalmlc lens blanks
and eye glass' frames

Travelers Ina, C<f.
(Hartford)

Trinity

1.00

ance

interior

Rotary pumps

3.2

multifocal

and

f0.78

Warner Co.

Utilities, Inc

public

Viking Pump Co

and

UnivisLensCo

Fire

17%

products

acoidenf

Testing Co

Manufactures wire rope,
...

Sterling, silver tableware

Life,

■"" V

Holding company

Upson

7.3

Ice cream

New York

board

1.00

wheels and fan blades

Wire

Victoria Bondholders Corp.

and metal specialties

Exterior

Towmotor Corp

5.5

name-

Universal Match Co.-

power tools

Towle Mfg. Co

Fork-lift

' Wire
United

Electric

17%

and

Torrington Mfg. Co.___
Manufactures

21%

radiation

& Investment Co.

Manufacturer

Corp.

mowers

1.20

Matches and oandy

Meat packer

lawn

estate

Power

Inter-city motor carrier
U. S. Trust Co. (N.
Y.)
United Steel & Wire Co

•

64
real

4.8

Makes counting devices

62% :

■usT

0.80

Velvet Freeze, Inc.

and min¬

(Del.)

0.9

9.2

2.00

Paymts, to

19"

tion<

June

heating systems

and

industrial

States

——

2.30

' • ■■■ t-;

% Yield
Baled Un

apparatus

*48

30,
1959

Quota-

Virginia Coal & Iron Coi

Testing, research, inspection
engineering
U. S. Truck Lines

8.7

21%

Insurance

Insuring title to

Toro

United

Min¬
a50 *

Title Insurance &

Car

4.3

dials, panels and

plates
U. S. Realty

7.7

rods

;

Tokheim

6.1

"Speed Nuts"

Insurance

1.7

127/s

June

food'

sea

Lingerie

Storage

Real estate

Tinnermaii' Products, Inc

Brass

0.55

(Portland).
59
Corp.14

Phosphors;

coate, etc.

Titan Metal

U. S. Natl. Bank
U. S. Radium
sources,

Men's suits,

Cold

United States National Bank
of Denver

6.7

Camp Sea Food Co., Inc.

Veedor-Root, Inc.—

Holding company, land

building

California drug store chain

Title

8.8

I7Mos.td>

Vapor Heating Corp

cards

States

secutive

Van Waters &
Rogers, Inc
Wholesalers, industrial chemicals

Consumer finance—personal loans
Publishers

Van

2.4

230

& health

eral interests

Thrifty Drug Stores
Time Finance Co.

29%

4.00

Diversified insurance

2.7

0.70

ExtrarfW

5.1

and scientific

United States Loan
Society—
Pawnbroking
U. S. Lumber Co—

26%

No. eonYears Cash
Divs. Paid

1958

Vanity Fair Mills

Diversified insurance

plastic parts

welding machines
300 Adams
Building, Inc

4J. S. Fidelity &
Guaranty Co.

Temp

Electric

1.35

Manufacturer of
envelopes, paper
cups and other paper
products

6.5

1958

health-

Car-icing, ice, etc.
U. S. Envelope Co

reinforced

Thomson* Electric Welder Co.

18
&

U. S. Fire Insurance Co
11

June 30,
1958

Cans

Corp.

5.4

39%
19%

Paymts. to
June 30, June 30,

Approx.

Including

tlon

United Printers &
Publ., Inc.

5.8

2.5

Insurance Co—*

1958

400

Cash Divs.

% Yield
Based dn

United Life & Accident

-10.00

f2.12

Divs. Paid

Illuminating Co

Life, accident

products

Thompson (H. I.) Fiber Glass
gliftss,

*17

range of cotton

Fiber

America

Third National. Barn*. & Trust
Co. of Springfield
-

Quota-

United Insurance Co. of

Paymts. to
June 30,

secutive
Years Cash

Connecticut operating
utility

Brothers, Inc.;

Richmond department store

;

Extras foe
12 Mos. to

United

% Yield

'•

■,

;

Including
No. Con¬

;

•

Cash Divs.

Approx.

Including
No. Con-

Traded and Most of Them Are
Years Cash

Cash Divs.

Where All Securities Can Be

Thalhimer

Jose, California

page

October 9,195®'

The Commercial and Financial Chronicle... Thursday,

(1484)

Act

Continued from page

Joe

■

fc.

assumes some

'■

of the risks in mort¬

Federal
the FHA

assistance programs are

VA loan guaranty

and

insurance

remember that last year -we

with which you all are

programs
familiar. .

labor

The August

still

million is

4.7

from the
June high of 5.4 million, but this
gives little consolation because
the
difference
represents
the

ail of the Federal
housing were in¬

out

dropping
of

consid¬

and Sam Justice. -

summer

were covered by
housing : bill which
of passage in the House.

and the

1958.
successful law

proof of its success is the
only on new

effect it has had, not

housing construction, but also on

flation.

the entire
A

economy,

economy

meet the needs

this bill that its effects

with housing

expanding to
a

rising stand¬

increase
new
starts by ard of living and a growing popu¬
200,000 units this year, and I be¬ lation, I believe the biggest chal¬
lieve it is going to do better than lenge will be to bankers to find
the new sources of credit needed
that.

According to the Bureau of La¬
bor Statistics,
nonfarm housing
starts for August were at an an¬
nual rate of 1,170,000 units, which
is

200.000

than

can

complex

the State of
918,000 annual rate for starts in
March, when the bill was passed New York has many advantages
over
other states.
It has a long
in the Congress. ;;
;;
•
record of active participation in
Failure to enact general housing
the housing problems of its citi¬
legislation was a deep disappoint¬
zens.
Some of the first housing
ment to me and to many others
code enforcement legislation and
who
worked
so
hard
to
put
the first state-assisted financing
through an omnibus housing bill.
arrangements
to
aid
deserving
I
am
particularly disheartened
housing developments were started
when I
think
of the
In

this

respect,

programs

that

will

tinued

Federal

support

individuals

those
who

lack

suffer for

were

lation

improve

con¬

and

Division

friend.

conditions.
I will not take the
cuss

the

adverse

time to dis¬

effects

the

individual programs that failed of

The Administration

passage.
nounced

was

an¬

for opposing

reason

the bill that it
This

whom

housing

"inflationary."

was

the very same argument

used against

housing last

of the New York State

Housing

pleased

Commissioner

man

of
Banking and Currency
for

many

years,

closely with

Committee

and

members

important pieces of housing

If it's Connecticut —

kets—and

also

telling
the

could

only underscore

can

have

been

for some months—that
is largely bad, particu¬

news

larly in relation to our strength,

prestige and influence around the
world. Perhaps this is a discour¬
aging note upon which to start.
But
self-deception is a disease

vyhich

can
to

only lead to worse set¬

country's position.
The healthiest activity we can un¬
dertake is to
get at the facts,
improve
our
understanding
of
our

and
them.

accordance

move

Nothing

futile

could

ridiculous

and

than

public speaker who,

with a barrage of
tomatoes, tries to persuade

after being hit
rotten

himself

audience

his

and

the

insignificant size,
ripeness
and
meaning of the weapons. By the
way, I beg you not to test this
proposition.

confront

ings

complete facilities

security

mar¬

cies.

the

American

citi¬

the

confessed

Members New York Stock Exchange

are

•

Danbury

Offices in
•

New London

New York Phone: REctor 2-9377

our

all

that

aware

Multiple line, fire & casualty and

~!
1.20 ? 35%

•

20
1 7

•

;

'
/

equipment for A. T.

Makes

3.50 *118

2.00

37%

5.4

2.20

43%

5.0

1.00

37%

2.6

holding company

Weyerhaeuser Timber Co
Manufacture, conversion
of forest

3.0

22
& T.

Western Light & TelephoneSupplies electric, gas. water and
telephone service
Western Massachusetts Cos.Electric utility

3.4

fidelity and surety bonds

sale

and

products

Whitaker Cable Corp.—

2.9

10%

0.80

Manufacturer of automotive cable

products

Whitaker Paper Co

4.7

f1.56

42%

3.7

1.00

16%

6.2

f0.99

14%

6.9

4.2

—12

turing Co.

Manufacturer of Portland cement •

Works

machinery ~Y

Textile

2.40

Y.v

Manufac¬

Cement

Machine

•'

Paper products and cordage

Whitehall

Whitin

Y'Y

.•

Whiting Corp.

,%■' YY-

Cranes, Trambean, chemical,

foundry and railway equipment

Whitney Blake Co

f0.39

Insulated wires and cables

Whitney Natl. Bk. (New Or.)

1.2
2.0

4.00 - 328
0.375
19

73
Wiggin Terminals, Inc., v.t.c.t 10
Boston harbor

Will & Baumer Candle Co.—:

—..

.1.00

17%-

5.8

Candles and beeswax

Willett

(Consider H.), Inc

*18

0.55

-1.70

27;

9.00

187

7.3

Maple and cherry furniture

Williams & Co., Inc
Distributor of

metals

Wilmington (Dei.) Trust Co.
(Dayton, Ohio)
surance

■

*33
Life

National

Wisconsin

6.3

4.8

Bank & Trust

Natl.

Winters

In-

Co..

1.00
Y-YY., r-

4.0

1.00

65%

1.5

1.36

28%

4.8

f0.99

18%

5.3

3.00

7.5

fO.49

14%

3.4

7.8

Life, accident, sickness and

hospitalization Insurance

Wisconsin Power & Light
Electricity supplier
Wisconsin Southern Gai

Company, Inc.
natural

Operating

public

gas

utility

Oil

Wiser

oil

Crude

Company
natural

and

gas

pro¬

ducer

WJR

The

Station

Goodwill

(Detroit, Mich.)
Detroit

broadcaster

Wolf & Dessauer Co.

0.675

1.00

department store

Wayne

Wolverine Insurance Co.,
Class A
Diversified
*

2.3

insurance

to possible longer record,
dividends, splits, etc.

Details not complete as

t Adjusted

for stock

Continued

this

step

the

page

BANKERS BOND -3
INCORPORATED

Member

alternative in view of the

vital

interests

placed us in such
Less important, but
tive

7, CONN.

foreign

our

world

could

has

1st

Floor,

Midwest

Stock Exchange

Kentucky Home Life Bldg.

LOUISVILLE 2, KENTUCKY

have

blind alleys.
less indica¬
reduced standing in

anti-American

Branch
Bridgeport

HAVEN

Surety.

Company

the summer
Administration
has

positions we were in. Many would
join me in saying that only in¬
eptitude and an erroneous concept

Chas. W. Scranton & Co.

Casualty

~Y-~Yy;y \Y Y :^yY J Y-.\
-Y '1 : '/<'•:
.v.'

policy fail¬
ures
by resorting to the use or
threatened use of armed forces;

had

NEW

3.8

2.80 ;

—

auto and

during

traditionally implies a sterile pol¬
icy and the breakdown of diplo¬
macy.
Many will say that we

STREET

(Toronto)

Fort

formulation and ad¬
of our foreign poli¬

the

Twice

months

209 CHURCH

4.0

acquaintance

with evidence of serious fail¬

zen

statistical information.

our

29%

■

Western Electric Co

concerning

headlines

the

ministration

listed and unlisted

1.20

and

right

Nothing

Frankly, I
what

will

for both

Westchester Fire Ins. (N. Y.)Y 87

Western

with the realities of world events

our

3.1

Service

marine, aviation,
casualty

position in the world today.
For my part, I would feel I was
shirking my duty if I did not

Even the scantiest

We invite you to use

21%

our

to act like a

many

fO.66

Fire,-

longer

himself

unburden

worked very

case,

McMurray was Staff Director

other

for a member of the Sen¬
ate Foreign Relations Committee

call my them
Joseph with

legislation, including the Housing

year.

any

the Senate

Committee

7.7

Western Assurance Co.

proper

backs

present time, the Com¬

missioner

this legis¬

their

that state.
At the

families

and

depending

any

cooperative effort of all interested with
them.
parties, private and public.
do so..

the

over

expansion. To do
problem which
made much simpler by the

finance this

-1.00

•

^Wholesale gas; retails water and

choice but to be inter¬
nationally-minded.

should

;

8.0

and hold¬
Y
Y'Y'

operating utility

Textile manufacturing

threaten the security of

dwellings.

5.2

16%

5.1

This is not so
peculiar a shift as one

own

our

have

20%

1.30

5.1

xWest Virginia Water

employment in upon business conditions here at
other segment home; an armed attack on a col¬
for fear of in¬ lection of mud huts in the Middle

rapidly

production

1.06

....

19%

situation.

can

1958

51 %

;

cussing to the very broadest pos¬
sible frame of reference — the

East

June 30,

1.00

or any

In the next decade,

prediction was made during

debate

our

Paymts. to

1958

30,

2.60

West Point Mfg. Co

Bankers espe¬
appreciate the nature

construction

tion

June 30,

1958
$

June

ing company

which holds down

to pass
Bill

bill

housing

Based on

*35

Both

It has been a very

first

the Emergency Housing

West Penn Power Co—,

enacted into law on April 1,

The

12 Mos. to

West Ohio Gas Co.—
Natural gas distributor

dis¬

been

secutive

Divs. Paid.

Quota-

Operating public utility

August unemployment rate cially will
highest since World of global interrelationships which
War II, except for one month in are
pressing in upon us to a
1949.
Until we can work out of
unique degree in world history.
this unemployment- difficulty,
I Fluctuations in trade in the Far
cannot
agree
with
any
policy East can have a strong impact

was

West Mich. Steel Foundry,.—: 22
Steel and alloy castings

have

Extras for

Telephone Co

West Coast

turn from the par¬

issues

No. Con-

of 7.6% is the

Diversified insurance

Now let

Approx.
% Yield

Cash Divs.

Years Cash

•

Turns to World Situation

The

programs

failed

■

encourage

ticular

Including

abrupt or
might
imagine.

July.

omnibus

YV.*

gage

of the labor force
looking
global
work -in June and
of students

number

for

the Congress in 1958. Two
bills were passed and most of the

ered by

other

Traded and Most of Them Are

:
'

The number is down

legislation

;

the study of mort¬
financing. We stand ready
at any time to work with lenders
in improving mortgage facilities
se¬
throughout the Nation.

back to work.
1958 unemployment

rious matter.

Congressional Housing Action

programs, on
volved in the

demanding action

were

total

mortgage investments.

•Practically

study of this important matter.

had

put their resources

residential

their

Where All Securities Can Be

They are all able men and their
experience
should
The material Washington
suppliers, the builders, and the prove valuable to the Association.
At the Federal level, we intend
representatives
of
construction

about

representing
of

am sure

ing to join with state bankers in

in credit.

was

age

these

programs
because they offer a safe invest¬
ment with a reasonable return. On
a
national scale, mutual savings
banks hold $12.7 billion of FHA
and
VA government-a s s i s t e d
mortgages,

and I

surplus of labor and material
for construction—the only short¬

The mutual savings banks par¬

two-thirds

The Over-the-counter Market

financing
would be most will¬

credit for mortgage

ticipate fully in

;

The

active of all

most

for many years

McMurray

While speaking of a former em¬
proponents of this infla¬
ployee of Congress, I want to
tionary scare, claim that as more
mention that in rny opinion the
credit is
extended, the demand
national mutual .savings bank as¬
for new housing increases to the
sociation chose wisely in employ¬
extent that a shortage is created
ing others who formerly worked
for
labor
and
materials,
thus
on the Washington scene. I refer
causing
a
price increase. But
to Groyer Ensley, Bill McKenna,

■

gages which would otherwise be
completely unacceptable to pri¬
vate capital.
P :

The

Continued from page

has been interested in new sources

U. S. Housing Market—and Our
in a Troubled World
J

I have

about which

1949

already spoken.

Bell Teletype LS

186

been

riots

the
and

rash

demon¬

IF IT IS TRADED IN THE

LOUISVILLE

MARKET, WE WILL GIVE-UP IF OUR
BID

ISN'T

THE

BEST.

TRY

OUT.

strations in widely scattered por¬
•

Waterbury

Teletype: NH 194

tions of the globe during the
several

months:

Continued

TRADING

past

Lebanon,
page

Charles C.

King

DEPARTMENT

Hector W. Bohnert

yolume 188

Number 5784... The Commercial and Financial Chronicle

(1485)
Continued

from

page

Continued from page 40

The Over-the-counter Market

Where Ail Securities Can Be

U. S.

Traded and Most of Them Are

.'/-I,..-

Cash Divs.

Approx.

Including

% Yield

No. Con¬

Extras for

Quota-

secutive

12 Mos. to

tion

Years Cash

W.,•

June

30,

Divs. Paid

1958
,

Manufacturer

lating,

v/allboard,

cushioning

insu--

materials,

30,

And

June 30,

1958

131/2

2.375

world

last

Worcester

County Trust Co.
(Mass.)
•_
Wyatt Metal & Boiler Works

that

our

Taipei

Sheet

York

steel

and

plate

3.00

431/2

6.9

1.20

14%v,

8.1

stamping/wholesale plumb-

York-Hoover

Corp

Manufacturing
bodies

and

2.30

f specialized
burial caskets

York Water Co

was

0.05

0.7

truck

1.30

291/2

0.30

6.0

Young (J. S.) Co.i

Licorice paste for tobacco

4.50

8.2

*11

2.00

6.1

,.19

0.60

Hi/4

5.3

Department stores in Midwest

Zeigler Coal & Coke Co
Own* mines In Illinois and

it remains

only

will

nation

world power.

narrowly

international affairs.
is

clear that

now

However, it
have

great

cumulative body of evidence that

something is profoundly and fundamentally wrong with the conof our foreign relations and
even with our policies themselves,
It is equally clear that, we ought

table

OVER-THE-COUNTER

this

urgently

and

demanding

what

why

be done

can

about it.

Consecutive Cash

„

Defends Mutual Security Program

DIVIDEND PAYERS

The

to 10 Years

the

Cash Divs.
Extras for

Quota-

secutive

12 Mos. to

tion

June

Divs. Paid

1958
.

Alabama

Tennessee

Natural

Gas Co
1

June 30,
1958

Paymts. te
June 30,
1958

(R.

C.)

Business

5.0

gas

0.50

sdl.10

19I/2

4.6

super

'• *8

markets.

0.90

201/4

4.4

ent

state

yet

unable

international

think

defend

American Bankers Insurance
6

few

unwilling

the

causes.

there

affairs,
to dis¬

need

the

areas

now

decades

stake

0.10

insurance

Details not complete as to
possible
sd Plus 50'i stock dividend

111/4

0.9

longer

paid Dec. 2,

record,
1957.

Continued

page

Kidder, Peabody & Co.

Marshall

Plan

this

the free

Favors More Foreign Aid

Members New York,
Boston, Midwest, Pacific Coast
and American Stock

Trading markets in

Western Europe was thereby en¬
abled to maintain its all-impor¬

1865

Exchanges

tant

Utility and Industrial Stocks

Federal

Street,

tion> offering their soil

men

forward

Let

would

take

brief look at just

is that roughly 75% of the mutual
security authorization for this fiscal

rather

perish than surrender their freedom.

These
terested

are

the

year

devoted

military

about two-thirds of the

purposes:

self-in-

is purely military assistance,
while the remainder is devoted to

Mutual

providing

sum

sound,
for

reasons

Security Program

our

even now.

nomic

Hav-

the

logistic

and/eco-

defense

support without
to add that which the arms could not be prop-

said this, I hasten
no thought of minimizing erly utilized.

J have

Out

the

other

the unprecedented generosity of 25 % must come the funds for such
the Marshall Plan concept, which a variety of necessary items as the?
S01Te people still regard as its Atoms for. Peace program, bilat—
Palmary rather than secondary eral and multilateral technical
motivating force. Yet I also add cooperation, the United Nations
/hat the expectation of a reward Children's Fund, refugee and
detracts from the merit of the act escapee programs, and the Presi—
generosity and tends to relieve dent's Contingency Fund.

I might

^he recipient of any feeling^pf add that almost half of the ihiliob^gaLory fnendship.
' tary assistance programed by
Much of our foreign policy to- country goes to Korea, ; Taiwan,
_

day.x is involved in the annual Greece and Turkey; more, than
Mutual Security bills, which pro-.half the defense support is for
vide military as well as economic
assistance to create conditions

Korea and Vietnam.
I

.throughout the world that will

earth satellites,» the
*
,

„

support
about

displeased that these
figures
provide
no

for
the

nature

those

who

supposedly
the

United

clamor

frivolous
States
^mrf«

SAN

PHILADELPHIA

FRANCISCO

and

expression

On the other hand
deeniv disturbed about wKat

{

in the Senate

in- a numbei ot us in the Senate conA
„•£
sider the Administration's overb. K. have

power and

^he

mii

nature of the Soviet toeat to

manv

areas

0f the free world ha*

peaceful comfrom
mill
even more dangerous l™1k.e<nZ.!
because of its ostensible lack of
inheres
Considemble lin
bellicosity - in many underdehas l een na d with.n ou/
veloped and uncommitted areas of
s
R.
the world. We are obliged either ment to this change, but not
to accept that challenge or to sit
Continued on page 42
us

^a"kedWShifted^

The

go4™!

Distribution
in

NEW

for

ENGLAND
than 100 YEARS

Estabrook & Co.
15 STATE

STREET, BOSTON

Boston Telephone LAfayette 3-2400
Boston
New York

Hartford

Teletype BS-288

Poughkeepsie

Providence

Members New York and Boston Stock

Springfield

Exchanges

are

they are anti-Communist.
can
only profit from their

see

CHICAGO

ability cither to agree
disagree with us as they

fit.

New Bedford

Springfield

•

Branches:

Newport

Taunton

•

trade.
•

NEW ENGLAND SECURITIES
BOSTON

KIDDER

CORRESPONDENT

CO.,

INC.,

NEW YORK

J. B. MAGUIRE &
31 Milk

CO., INC.

Street, Boston 9, Massachusetts

Secondly, the rehabilitation of
Europe was vital to the preserva¬
tion and extension of international

•

UTILITY and INDUSTRIAL STOCKS

free to be anti-Amer¬

MARKETS

continued

338

LOS ANGELES

New England
Lowell

PRIMARY

ican

NEW YORK

tradition

day
We

Teletype: BS

-,ir.
aid

expenditures

uuence ot me u.
greatly increased in the past few
years; the Soviet bloc is now

challenging
petition -

not

illustrative

maintain nations in their independence
of
Sino-Soviet
bloc
control. Yet; today the task is far
™re complex and difficult than
m the immediate postwar years,
As attested by the-orbiting of its

individual freedom; Europeans to¬

Boston

Telephone: Liberty 2-6200

®ny reason to consider our. Mutual
Security Program a failure, it has
become imperative that we ex-

any

New England
Bank,

Thus, rather than ther£ being

North Atlantic Treaty Organiza- assistance,-- v:\

world.

First, our aid to Europe without
doubt pulled the Continent
back from the edge of an eco¬
nomic
chaos
which
could
only
have been accompanied by politi¬
cal, social and cultural disaster.

come

date, when even many of its
erstwhile opponents concede that
it was a resounding success. In¬
deed, the very fact that Western
Europe today is as free and pros¬
perous as ever before in its his¬
tory is a living testimonial to the
validity of the Plan. We can, on
the other hand, recite the reasons
for undertaking such an historic
venture
with
every
confidence
that they are still relevant to our
continuing efforts to strengthen

Founded

take

late

Co. of Florida, Class B
Life

whole

criminate about its

California

to defending it against
attack from those who are
keenly dissatisfied with the pres¬

dis¬

Alpha Beta Food Markets

the

may

any

5.6

tributor

;

repayment

tant that I want to devote

Adding machines, typewriters, etc.

Natural

would be that

seek

minutes

Allied Gas Co
utility.

to
10

point of the
Mutual
Security Program. And
that point is so immensely impor-

Ma¬

chines, Inc.

Public

answer

not

misses

1.20

fail
iau

terms of emotion, but of concrete
results.
But the question really

decade
aecaae

past
past

gratitude and affection.

even

I think the

% Yield
Based on

Pipeline

Allen

30,

the
me

over
over

show

Approx.

Including
No. Con¬

many

recipients of American "boun-

tv"
ly

^HHVHUUUHUUHUWHUWUHUUHHHM

Years Cash

thought

that might
Americans would
be to question the utility of the
so-called
foreign
aid program,
They might well ask if the program should not be abandoned if
to

occur

for

first

whereas

strong military allies who could
relieve us of much of the burden
for physically defending Europe
Kf
i?01^.time an<* e*f?r*
against Soviet imperialism. Those though not necessarily more
nations stand with us now in the moPey — °n programming foreign.

duct
'

forts

frn?tion

served by the re-establishment of

cept that free

our

generally succeeded in maintaining a bi-partisan approach to

we
was

s011s
and ; possessions of
these
countries are hostages to the eon-

toward

There

have

Younker Bros.____

out,

self-interest

resentment

interests.

responsible for every reverse
we may have suffered in our foreign relations, especially when
both political parties in Congress

jv;

turned

our

that

abroad

restricted
view would hold the Administra¬

4.4

'Operates hotels, camps and stores

tion

Yosemite Park & Curry Co._

Kentucky

.'as

time,

same

bases for our defensive complex what is contained in the. present
clearly 0± Planes and missiles. The per- program. The most important fact

developments

our

Thus

*15

.__

only

Finally,

realized that

realize

major goals were achieved in
Europe within four years, our ef¬

particularly Africa — that economic upheaval on the Continent
would have had disastrous
repercussions around the globe.
;

better

our

probably be scattered instances of

long

Operating public utility

Many

was

direction which would

favor

4.8

Embassy
sacked
during

—influence

Operating public utility

been

Obviously, this country cannot
always—or even most of the time

ing and heating supplies

York County Gas Co../.

has

anti-Aiherican demonstration.

4.7

fabricators

Corrugating Co

Metal

year.

time.

some

that

year

this

news

last

deterioration

forgotten

was

the

position

for

have

kind

There

new.

there

fact

our

going

6.6

not

this

the

etc.

and

than

But

3.0

this
of

year

0.40

engines

Paymts. to

proposition. At the

Troubled World

-—well, v/here next? /

do not hesitate to
reject the latter

had

Venezuela, in Algeria/in Peru, in

-•

Woodward Governor Co.
Speed controls "for
propellers

Based

whelming majority of Americans

Housing Market—and Our

Position in

<■

Wood Conversion Co

back and watch the boundaries of
free world recede. The over¬

the

Providence

Worcester
„

our

not

was

having

just

matter

market in which

to buy and sell.
of

the

mately

world

So many portions
were
and are inti¬

connected

with

Europe—

Open-end Telephone Wire
New York—CAnal 6-1613
Bell

System

Providence, R. I.—Enterprise 2904

to New York

Boston—HUbbard 2-6600

Teletype—BS

142

Portland, Maine—Enterprise 2904

Hartford, Conn.—Enterprise

6800

The Commercial and Financial Chronicle

.Thursday, October 9, 1959

It C«>1
Wants

Continued from page

Leaders

Lead

It is the absence of

Continued

sistent, imaginative and wise lead¬

Market—and Our
in a Troubled World

U. S. Homing

Position

the

Development

Loan curity Program for the coming

Fund, which unfortunately has not
received the full backing it de¬

wil cost each one of us little

year
more

than five cents a day.

I have already indicated in this
Many of my
colleagues also have long urged brief outline of our international
the creation of a Middle East De¬ assistance programs a few of the
which
I
believe
have
velopment authority such as that factors

serves

in Congress.

referred to in the President's re¬

speech. I am
hopeful that increased attention
will continue to be given to such
ideas within our government.
I trust I have made my belief
clear by now as to how important
it is that our many international
assistance programs not be sub¬
jected to a blanket attack by those
cent United Nations

played some part in our foreign
policy failures. To try to enumer¬
various

reasons
why
confront a seriously
adverse world situation would in¬

ate

the

all

I believe

closely argued
separate paper. Instead, I would
like to single out one particular
factor as the main one underlying

volve

our

long

and

difficulties.

of the famous domino

cording

PHIj-AQELPHIA 2, PA.

New Yqrfc Telephone
REctor

which

should

Asia

have

lost

are

true—which

„

walks

all

life

Teletype
PH

2-2820

Corp.

One of

RUSSELL M. DOTTS
Manager

ars

our

Municipal Bond Department

.26%

4.5

1.40

;

0.80

'0.30

wire

4.2

r: 33

6.1

6^'v

5.0

13%
!

: J

cable

and

0.775

5.2

14%

0.70

8.2

0.25 "• ;

: 5.9

financing

Co.

Manufactures

nailing

machinery

Blue Ridge Insurance Co

-0.35

1.8

Diversified Insurance

Bradley

(Milton)

Games

and

C©

Operating public utility

;

6.7

0.90

13 y2.

1.00

18%

/ 5.4

0.70

13%

5.0

1.15

5.0

0.625

0.48

■

California Interstate

;

7
8

toys

Brooklyn Borough Gas Co.__

Telephone Co
Operating public utility

Phonograph records
Inner

tubes, brake lining,
tires, etc.
Texas

ctfs.

Central'Public Utility Corp...
A

8.0

wells

oil

6.7

bicycle

Cedar Point Field Trust,

3.3

0.80

1.70

4.9

1.30

7.6

.1.30

6.5

0,35

2.2

1.70

39%

4.3

0.85

17%

4.9

0.80

16%

4.9

0.80

13%

6.0

0.90

2.8

0.70

holding company

Chicago

Railway

Equipment
7

Railway

equipment

(malleable)

•

foundry

and

Churchill Downs, Inc

Civil Service Employees
ques¬

Americans from
do

Diversified insurance

seem

belief

Communication

equipment
ground

command.

for

and

amateur

air

and

accessories,

equipment

Natural

Gas

Corp.
Transmission

public

broadcast

and

Commonwealth

(

navigation

both

applications,

transmitters

natural

gas

—

utility

Commonwealth Telephone Co.
Telephone service

Consolidated
Motor

Freightways, Inc

freight

Consolidated

Rock

Products

Co.

con¬

that

~ 1

Collins Radio Co., Class A—

Gravel and

war

even¬

sand

Consumers Water Co
Holding

co.

Continental Motor Coach

Lines, Inc.

1.8

Kentucky bus service

most notable schol¬

Cooper Tire & Rubber Co._r

in the field of Russian studies

Tires

pointed out that Soviet citi¬
zens, while eager for peace, in¬

and

4.4

10.37

tubes

Details not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.

cline

overwhelmingly to leave the
complexities of the world politics
to their leaders, "who understand
these things, and know best." We
can

f ?

drinking water

Auto-Soler

has

"Kentucky Derby"

Americans

can

•

Atlas Finance Co
Auto

1.1

■

____.

.Bottled

tually inevitable. I personally re¬
ject such a notion with all the

strength I

insulated

1.20

Arrowhead & Puritas Waters,
Inc.

issue not only revealed a
general lack of interest, but hinted
the

1
v

Mineral wool irisulation

survey conducted by the
York "Times" on the Que-

Assurance

Plastic

23 %

cards.

Ansonia Wire & Cable Co._-:__

With regard to the Far

many

Home

'J V

yCorj%

American Rock Wcol Corp..,.

crisis, most Americans seems
either to adopt a highly
emo¬
tional approach or an apathetic,
fatalistic one —neither approach
will help us in the least to solve
our
problems.
I
was
frankly
astonished
that a
cross-country

that

1958

Mart"

greeting

Diversified insurance

improve
the overall conduct of our foreign
relations?

tion

June 30, K June 30,

„

Lit*

American

debat¬
Adminis¬

important

can

June 30,
1958

0.25

Manufacture

attempt to do so?
most

12 Mos. to

Quota-

%" L

Class B

nothing over a tbreeperiod to prepare alternative
ways
of remedying a basically
untenable
position?
Why
are
prominent Americans simultane¬
ously challenged to produce alter¬
native
policies and
accused
of
weakening our unity when they
the

Furniture

American:. :Greetings

tration done

But

secutive

Years Cash

Building Co.
Chicago real estate

moy

Corporate and Municipal Securities
EDMUND J. DAVIS

American

year

tion is: What

Extras for

is highly

able—then why has the

% Yield
Based on
Paymts. to

Including

No. Con-

Divs. Paid

Southeast

been

with the Sino-Soviet bloc is

Vice President in Charge of

theory, ac¬

all

Approx.

Cash Divs.
.

by now as a conse¬
quence of the loss of North Viet¬
nam. If these clinching arguments

ditioned

Corporate Department

Traded and Most of Them Are

Communism

New

Phija. Telfphone

Where All Securities Can Be

ing, they are following. They are
not willing to ask Congress and

opinion

Incorporated

PEnnypacker 5-2800

leaders of the nation are not lead¬

East

Rambo, Close & Kerner
1518 LOCUST ST.,

were

position to counter the Soviet penditures are made in the United
threat, the Senate has given par¬ States—not abroad—and that even
ticular attention to
the urgent the remainder returns here in the
of
foreign
purchases
of
need of the uncommitted area for form
development funds on liberal American goods and services. In
terms.
It took the lead in sup¬ the last analysis, the Mutual Se¬

porting

page

The OveNke-CoHiiter

ership in both our domestic and
international affairs. The present

the American people to support
dissatisfied with the the bold programs the interests of
enough has been done to meet the
conduct of our foreign affairs. Of the nation demand.
Rather, the
new Soviet challenge.
It was tor
course, mistakes have occasionally Administration travels with one
this reason that I and many pf my
been made, and a .number of ad¬ ear'so close to the ground that it
colleagues pn the Foreign Rela¬
tions Committe recently wrote to justments remain to be made— cannot see the future of America.
we
particularly need to work
President Eisenhower, urging him
The present crisis in the Far
to giye his personal attention to through the United Nations and East is a vivid example of how
other multilateral organizations.
the problem.
the
Administration
has ; been
We believe that the undue con¬ But, as was recently suggested by caught completely off guard and
the Committee on Foreign Rela¬
has rushed into the breach with
centration on military pacts and
tions in its report on the Mutual
base requirements was responsi¬
a half-formed policy and the in¬
Security
Act,
a carpenter does not
ble for much jpf the recent puttention of playing the game on
throw away a hammer simply be¬
burst of resentment against us in
the basis of daily reactions.
The
cause he may from time to time
Latin America. ^or it appears that
explanation and attempted justi¬
miss the nail and hit his thumb.
our rather off-hand
attitude to¬
fication of our tactics thus could
Neither does the carpenter trade
wards a presumable "safe" area
not help but be an illogical jumble
the hammer for a smaller one. If he
of half-truths. There is even an
negated the effect of the many
did so, his mistakes would hurt
sound programs we have under¬
Alice-in-W o n d e r 1 a n d sort of
less,
but
it
would
take
longer
to
taken in the region.
Much more
flavor about the supposedly
drive the nail—and it might not
needs to be done, especially with
clinching arguments that Chiang's
be possible to drive the nail at all.
regard to trade and balance of
regime in Taiwan would fall apart
Let me add a few more words if the morale of his soldiers were
payments problems, but an end to.
the practice of giving only spo¬ from the same source for those not sustained by
the United
radic attention to Latin America who say that the American peo¬ States, and that our entire posi¬
is the first requirement.
ple cannot afford these expendi¬ tion in the Far East would be jeopr
In trying to remedy such lapses tures abroad. It is a little adver¬ ardized
if
the
offshore
islands
and to put our nation in a better tised fact that 80% of such ex¬ were lost. This latter is a version

who

from

strong, con¬

Continued

page

and must do better than that

in this country.

For I

not con¬
improve¬
shaping and imple¬
menting of our foreign policy until
the
American
people
make
a
greater effort to understand the
am

fident of any long-term

ment

Underwriters

Dealers

Distributors

the

Wisconsin Market Place
1

basic elements of our world posi¬

Municipal and Corporation Securities

The First Cleveland Corporation
Member Midwest Stock
Exchange

Teletype: CV 443

LhiWJ &

based.

INCORPORATED

Stanley Cooper

INVESTMENT

SECURITIES

H
225

EAST

MASON

ST.,

MILWAUKEE 2

NEW YORK STOCK EXCHANGE

CINCINNATI, Ohio—Stanley W.
-

CV 444

OVER-THE-COUNTER ISSUES

(Special to The Financial Chronicle)

CLEVELAND 14, OHIO

Telephone: PRospect 1-1571

In embarking upon the broad,
bi-partisan foreign policy studyauthorized by the Senate, we on»
the Foreign Relations Committee
hope to play at least a modest role
in bringing out the fundamental
premises
which
the
American
people
should
understand
and
upon which our policy should be

With

National City E. 6th Building

f°r

tion, and to bring increasingly to
the fore leaders worthy of our
greatest traditions.

Cooper

now

associated

with

Stanley Cooper Co., Inc., 105 West
Fourth Street.

MEMBERS
MIDWEST STOCK

if
5i&J-MMWMK-MW
f

mmmm

EXCHANGE,

Volume 188

Number 5784

The Commercial and Financial
Chronicle

(1487)'
Continued

from

page

N. Y. Fed. Reserve Bank

The Over-the-Counter Market

Where All Securities Can Be
Traded aad Most of Them Are
Cash Divs.

Approx.

Including

% Yield

No. Con-

Extras for

secutive

12 Mos. to

Years Cash

June

Divs. Paid

Operating public

utility

Based

tion

tween

June 30,

Paymts. to
June 30,

1958

•~.v

Corning Natural Gas Co

Quota-

30,

1958

1.055

sonally in August and

Cosmopolitan Life Insurance
*5
Life

10.08

insurance

Cosmopolitan Realty Co

16.00

252

1.00

Craddock-Terry Shoe Corp..
Shoe manufacturer

Insurance

-Auto

ll_

0.40

0.07

£
^
De Laval Steam Turbine Co.

0.75

2.0

5.6

Inc.

3.0

vate

;

1.25

21%

CI.

:9
1

■.

1.00

Variety chain In Soiith
Eastern Industries, Inc

traffic

and

pumps

0.60

-161/2

3.6

{

fO.39

0.15

211/8

1.8

61/4

2.4

signals

Fairbanks Co.
'Valves, etc. '

•

Mfrs.

5.8-

■

.0.45

n.a.

0.40

4.8

Foods, Inc

Soup bases, seasoning compounder"
etc.

;

0.501

7.4

—

Glass

Glassware &

;:8

2.15

3.8

561/2

boxes

•

Washington
Fire

0.80

0.9

'i_

Bank

1.50

4.21

of Trenton
Fort

1.70

331/2

5.1

0.40

7.6

f0.63

28%

2.2

0.60

6.0

Worth Steel &

Machinery Co
Power

transmission

Food products

Funs ten

(R. E.) Co.

Gamble Brothers, Inc.—
Gas

.tanks,

aDci
equipment-

Portland

10.79

5
appliances,

LP-Gas

carburation

0.125

Government Employees Corp.
financing

•

Public

utility, electric

ployed

workers

two

number

jobless

131/2

14.7

t0.63

351/2

5.9

1.00

six

4.4

in the

who

continued to rise

1954

—

now

connected with

Pont

J Street.

}

produc¬

men

the
and

unemployment
machines is re¬

another

article

Co.,

1200

Town &

rapidly than
country. The

the

decline

manu¬

its

2608

E| Paseo

Lane,

Country Village:

Two With G. H. Walker
(Special to Thb Financial Chronicle)

' ' "

•

•'

>'•

(Special to The Financial Chronicle)

NEW

HAVEN, Conn.—David P.

Jones has been added to the staff
of
Chas, W, Scranton &

Co., 209

Church

Street,

New York Stock

members

the

Exchange.

H. L. Robbins Adds

With Norris &

(Special to The Financial Chronicle)

—

Hirshberg

(Special to The Financial Chronicle)

Harold

Foddy has been added to the

staff of H. L. Robbins & Co.,
Inc.,
37

Bank

Street.

Hirshberg, Inc., C & S National
Building.

the

Moreover,

adjusted
rose

personal
some

com¬

incomes,

the

revival in busi¬

expenditures
and

rate

slightly

labor force

plant

expected

in government

and

in¬

spending all

to promise further growth
in aggregate demand.
Support for
this view is also provided
appear

by the

continued strength of construction
contract awards and by
reports of
:

growing optimism among business
leaders.

Vermont

Return to 1956-57 Peaks
*

Details not complete as to possible
longer
for stock dividends, splits, etc.

record,

Prospects

thus are good that
production in most sectors of the

t Adjusted

Continued

page

economy

may

back

the

always ready
to serve

your

Connecticut needs

and those of
your customers

may

be locating in this

who

area.

18 Convenient Offices

THE PLASTIC WIRE & CABLE
CORPORATION

Your

inquiry invited

JEWETT CITY, CONNECTICUT

Manufacturers of
ELECTRICAL WIRES, CABLES & CORD SETS
•

Fiscal
Year

1952

1953

1954
1955

Net

Net Income

Outstand¬

Income

("
amended)

ing at

per

$374,813

108,667

$3.45

278,957

108,667

2.57

248,967

146,315

1.70

322,548

1.98

1956

636,632

163,208
167,533

3.80

1957

734,126

185,888

3.95

ATLANTA, Ga. —J. B. Chance
has become affiliated with
Norris
&

Mechanic

The

Connecticut
National Bank
Main Office:

r--''

Charles Scranton Adds

have
and

Herschel and Hugh C, McMillan
are
now
connected with G. H.
Walker & Co., Ill Pearl Street.

soft

than in the rest of the
country.

HARTFORD, Conn,—Clemens

the

competitive
goods indus¬
tries, especially apparel. In con¬
trast, the growth of output of dur¬
able
goods industries has been
more rapid in the Second District
of

'/'

SACRAMENTO^ Calif. —Albert

corporated,

trict has grown less
the rest of the

position

(Special to The Financial Chronicle)

Gross and William Y. Voegtli
are
now with Rudd &
Company, In¬

"Monthly Review," the Bank re¬
ports that between 1947 and 1956

Two With Rudd Co.

the

months

recessions,"

equipment,

fl.99

old

while

been

ness

"•

months,
workers

for

unem¬

years

same

crease

remained the

over

prospects of

tempor¬

2.1

before

WORCESTER, Mass.

•

Corp.

and gas

pared with 7.3% in July.

0.80

Growth in

duced to pre-recession levels.

withdrawal

7.9

■" **"

the

1957,

of both

workers.

seasonally
unemployment

cement

(Fritz W.) & Sons, Inc.

Green Mountain Power

part

labor force

summer

Rising

Com
LP-Gas,

Refining equipment !

Auto

ary

the

7.6%
8

Giant Portland Cement Co—
Glitsch

peaks

unemployed workers
August, but this re¬

the

Lumber products

'Distributes

flected

and

Sheller and packer of pecans, wal¬
nuts and almonds

General

August
was
about
double
the
highest levels reached in the 1949

equipment

Frito Co

significant reduction in the level
unemployment.
The
actual

"Indeed, the.number

insurance

Natl.

number

SACRAMENTO, Cab—Walter L.

Francis

level

half of

Firemen's Insurance Co. of

First-Mechanics

of New

production, total civilian employ¬
rose in
August but without

from

Federal Life & Casualty Co.
Life, accident & health

prosperous years,

declined

i---

Co.—

fibre

ployment and surplus capacity to facturing in the Second District
was in large
part attributable to
levels of recent

Federal

few

slower postwar growth of

seasonal

Federal Reserve Bank

Coast

approximating the 4%
which prevailed during the first

ment

Coffee roasting

Fearn

government

York reported.

equipment financing

:7 :

con¬

Accompanying the expansion
6

within

ly visible level of activity and
that which would reduce unem¬

the

■

•

Equipment Acceptance "
Corp.

1956-57

However, this degree of Thomason

manufacturing in the Second Dis¬

Farm

the

Exchanges.

With F. I. du Pant

continuation of greater
increases in busi¬
ness activity, there is still a sub¬
stantial gap between the current¬
than

B
;

fourth

Despite

5.7

Dewey Portland Cement Co.
Portland cement v.

well

New York and Pacific

and

sector,-

carrier

the

recovery in output will be insuf¬
ficient to reduce unemployment

of
prospects ; for
the
further
growth, of aggregate demand in
the coming months — in the.
prin

Chicago Trucking Co.,

_r__,

Motor common

month

: *

BEVERLY HILLS,
Cal.—Sylvia
Stubblebine has been added to the
staff of Daniel Reeves &
Co., 398
South Beverly Drive, members of
Stock

tivity and in the labor force re¬
August, and quires an advance in economic ac¬
evidence continues to accumulate
tivity to well beyond the earlier

Turbines, pumps, etc.'

Denver

financing

•

the

months.

"Monthly Review."

for

rose

secutive

Co._ll_

•Diversified insurance
Credit Acceptance Corp

appears

Output

ber issue of its

peaks

sea¬

6.3

Craftsman

con¬

4.5

(Special to The Financial
Chronicle)

(SpeMdl to The Financial Chronicle)

have advanced further in
Septem¬
ber, the Federal Reserve Bank of
New York reported in the
Octo¬

1.6

Denver hotel

visible level of
activity and capacity production
labor force employment still remain.

Over-all business activity
tinued to expand more than

5.6

/•-•,-

Evincing optimistic growth prospects for private and
govcoming months, Central Bank expects
most of the
economy's sectors will hit 1956-57 peaks within
a few months.
Cautions, however, that substantial gaps be¬
ernment demand in the

r;.••

Daniel Reeves Adds

Expects 1956-57 Peak

Output Soon With Unemployment Continuing

;

888 Main

Street, Bridgeport

Telephone FOrest 6A741
Member: Federal Deposit Insurance Corp.

•

Federal Reserve System

The Commercial and Financial Chronicle

(1488)

Continued

upward revision of price-earn¬
U. ,S. Steel should be
regarded as more of a growth
stock, and less of a prince and
pauper issue. This is reflected in
the type of buying
and in its
an

Continued from page

is up, and
fol-

and cash in

know

it. Nobody
And nobody

the top.

until stocks
bit. Thus, eventually some losses have to be
taken. The aim is to get in early
enough, and make enough profit,
60 that when the change linally
occurs you don't lose
more than
15 or 20% of the profit made.
know

will

are

the

turn,

down quite a

point I ought to
eay something about risks. People
tay the market is high, so therefore risks are high.
This is not
always precisely true.
Risks in
my opinion are determined by the
I think at this

theaievel"!s
is

fng maikcl, ereii
even K
11 tne lcvci
low.

Money

made

ad-

movement you have to buy the
leaders, and stocks which are currently part of it. There are some
excellent values in cheaper, less
popular stocks, but perhaps these
values
will
not
be
capitalized
marketwise until the next bull
period.
Thus, purchase selections large-

jy from the tables of new highs,
displaying the largest plus signs.
gUide( Don't misfnterpret this as meaning that I
anybody should buy blindly
from ^be new highs, and most ac^iVe lists. To me, these are simply
^le p]aces fG look. You can narj gay

|bjg jg

to me, barring

calamine.,
is determined by the amoiint. ypu

row
lhe
list d,0Wu' t"d thern
up
personai checking of

positions, price
and statistical back-

j ci0 not favor,

steei WOuld
()i-

bought, and the size of tne ma ket, m relation to the size of individual positions.

months of this year.

That is 500,-

000 shares a month,

\s Up}

fbail

that,

^
there

...
is

of the

one

0Wn.

The

and an aver¬

Of
course, some days are much above
that, and some considerably un-

types

earnings

buf m0re important
jf would seem that
,
strong basis here
for

low.

arc

hand,

security

buyer building up a position considerably greater than the size of

market, should know that he is
running a much higher risk, bea

cause

his

forced

change

position, he is more likely to
a considerable loss in doing

take
so.

Now

the outlook-for

the

think it is going to
good. Technically,
position, and
from
the
standpoint
of
price
movement, \Vhich means tapes,
charts and the like, it is in a good
position.
market,

leverage.

right in

If the market is

it means improved earnings,
and hence improved market prices
for the rails.
There are excellent prospects
for a recovery in the base metals,
especially in copper. The selection
of issues here is up to the mdividual, depending on his aims.

Public

continue to be

1 think it is in good

and

causes

the effects, are in a sort of twilight zone, now sure and now unsure that inflation is inevitable
and that future dollars will buy
less and less.

The sharp decrease

in United States Government
bonds, harsh though this has been
in its effects, has probably served
well in dramatizing the stresses

"The

The fundamentals are more dif-

business
^businek

trend
as

long

continues

up,

sentiment is optimistic,

certain

There

Natural

opportunities in the

are

leading companies,

of the
as

carry

•

it.

The time of

when

course

will

good news has.no

come

power*

purchasing

rising number of

Perhaps
that

fa«;tnp<5C!

♦

nnrt

ggmHMfflinnlmMjay

811

wifh

^r"

p per pubhc

There are numerous impediusers ments and frustrations in the sue-

World-Wide satisfied

wnht ^f1ro«mbatried SUS"

itefagemtkm £££
..

•i<

inevitable,

Board's objectives. In considering
Mj f{vKWll tbe recent move away from an

—

AiTi.V<»i4JBlUlwti

cessful accomplishment of the
easy

money

necessity
decisive

policy,

faced

the

St cc

(Special to the financial Chronicle)
GREENSBORO, N. C. — Joseph
W.

joins oacne oiari

Brady

has

become

affiliated

be both early and with Bache & Co., 108 West Mareffective, and the ket Street.

12.0

5
:

-3.00

0.40

34%

1.1

0.25

4.0

.1.20

-20%

6.3

;

——8
fibrous

plastic

■

5.8

•

Cement

Portland

cem«mt

2.00
1

33%

5.9

23%

5.1

1.20

0.60

6.7

0.25

5.9

2.00

3.8

0.50

4.2

baker

grocery

chain-

pqf.itf-*

rrn.1

Marmon-Herrington Co. Inc.
Carbonic

products.; mining equip¬
heavy duty trucks

ment;

Marsh Steel Corp
Metal

5.9

3.00

335%

0.9

0.05

0.9

23%

6.7

22%

1.8

0.56

19.5

1.00

19%

5.1

2.00

2.9

1.12

21%

5.1

0.45

5.0

f0.09

2.0

fO.27

3.3

0.375

1.90

0.40

7
5

products

Material Service Corp
Limestone.

Maxson

(W. L.) Corp

Electronic

equipment

McNeil Machine & Engineer¬

ing Co.—

Vulcsihizcrs

Metals Disintegrating Co
Metal

powders

Mexican

Eagle Oil Co., Ltd.
Ordinary
Property Interests

Michigan Gas Utilities Co.
Natural gas distributor

Michigan Surety Co
Diversified

insurance

Mississippi Valley Gas Co
Natural gas distributor
,

Monmouth Park Jockey Club,
Common and VTC
Thoroughbred horse racing

Moore (William S.), Inc
Retailing
Auto

<?•Roberts & c°-18

—

Murdock

iee'

•

7.7

Bus line operator

saving.

SPRINGFIELD, Mass.—William
Boucher is now affiliated with

and

pulp

MVP

its

(Special to the financial chronicle)

4.7

0.60

Louisville Transit Co

Acceptance Corp.—

financing

Mutual Mortgage &

Investment

3.25

1.00

10%

9.5

1.20

19%

6.0

fl-39

4.9

Mortgage financing

National Cranberry Assn.—
Cranberry products

National Gas & Oil Corp

—

31%

'10% '

Pacific Coast

-■

Wholesale

CHICAGO, 111.— George E.
agency — the
Federal
Reserve O'Brien is now with Bear, Stearns
Board
which has not accepted & Co., 135 South La Salle Street,
the doctrine that
inflation, creepn
ing or otherwise, -is either desirWith Jay C. Roberts
necessary

-0.80

mowers

Ley (Fred T.) & Co

(Special to The Financial Chronicle)

greatest strength is
have
one
dedicated

1.50

West Coast

With Bear, Stearns

our

5.8

~" ]" *
,16% - ,6.1

J
1.00

Langendorf United Bakeries-

Panding role for government, a
boom followed
a bust- and
P^bable loss of much of our free-

today.

.1.8

60%

utility

Lee & Cady Co

annSd increase to nrWs
little
1#woX duUh^lufof toe dom of enterprise.
as

aircraft electric

Manufactures

eco- ,The alternative can only be highanu
ici^vvo
aiiu
lining on ' v.i
er and
higher taxes
and un
an exAn

5.0

Co.

pension
pcusiuu

3.50

contain inflation which

forms

'
-

nuts

Keystone

1 •

croddnrl

debtors and

articles.

that the American people
properly aroused by the

other

0.10

;

Manufacturing Co._

Molded

^s- and trust ^Und and insul:arice Pol~

dollar in half in 70
years, less than
the average life span

siM

public

lawn

Edible

forthright challenge to our very
ability to govern ourselves. It is

and

8.3

Keyes Fibre Co

any agency made up
me11*
The defeat of inflation is a

icy,

Mortgage banking and real estate

persons

incomes "and
tween

0.75

■

Kaiser Steel Corp

task from
of mortal

every
every

Jersey Mortgage Co

expanding the money supply.
We have n0 right to expect

payN, eiiec*,
check,
pay4

motor carrier

Jacobsen

yet to be determined and to ren-!
der appropriate assistance to a
government faced with financing
a
huge deficit, without unduly

bear

66%

1.00

equipment

that its actions paracould add to the fears

2.65

Common

the greatest

able

4.0

Iowa Electric Light &
Power Co.__

of inflation. The Board also had
to be cognizant of the conflicting
needs to nurture a recovery whose
stamina and carrying power had

least

4.9

1.26

home

and

System

Leader

those

25%

production

Kelling Nut Co.—

robs

5.2

■

Interstate Motor Freight

according to First National

time

'r"

•

publishing
study schools

with it.

were

1.15
15.

page

producta

paper

Printing,

farther-aS

SpeCify

and

paper

International Textbook Co.

impossible

Indiana Limestone Co.

and the intelligent investor
should be flexible and change

well-nigh

7.6
7.3

Coke

day

miracles of accomplishment in

IOV2
11

'Fhcc brick

market changes every

doxically

0.80

Company's advertisement

Limestone

possibility

5
;

■

;

Indiana Gas & Chemical Co.__

war as

4.1

Natural gas producer

There are opportunities in the
motion picture group, and among
agricultural implements,
That is the picture as I see it

...

stores

Hydraulic Press Brick Co

and that AT&T is going

The

women's

CO.

Hugoton Production Co

"strength
Tn'American" Teleand
income bonds is sie-

now.

Sec

Pulpr

nhnm>

S?.

18 %

gas supplier

Hudson Pulp & Paper Corp.,
Class A

on.

moved in pro¬
portion to the market.
I think the divergence between

nificant

3.5

and

Corn refining

Oils have not yet

th«

0.75

Knowledge"

"Bonwit Teller

specialties.
recovery in General Motors

The

fO-49

11UBINGEII

well

among the

should

"5.7

""Encyclopedia Americana"

electronics group, including some

every

sentlal
health7 and
nomic to
growth

and the market continues moving

forward, we should go along with

Book

Hoving Corp

way

life.

12%
:

and

xvelding studs

Hagerstown Gas Co

tion becomes accepted

1958

0.70

.r;-"

Magma is the most speculative.

and strains in the nation's money
and credit system. We must have
substantial savings if we are to
have economic growth, yet people
will not continue to save if inflaas a way

Paymts. to
June 30,

1958

30,

Grolier Society, Inc

the

lon^-term threat of inflation.
Th?y should emphasize in their
actions producing more before
they seek to consume more. Only
by all , groups working together
unselfishly and working harder
can we possibly hope to find a

biiSS*

Blindly

Distributor

—

-Stud welding equipment

ravages, and shrinks the value of
Go Along, But Not

utility

Gregory Industries, Inc

confused
by the
others indifferent to

tion

June 30,

1958

June

-natural gas

Bank of Boston.

some

12 Mos. to

Greenwich Gas Co

quality issue.
Anaconda has the trading market.
is

Kennecott

us,

<
Distrust of the dollar is the most

secutive

Divs. Paid

% Yield
Based on

Quota-

ness,

A run-away dollar stands next to nuclear

4.:

Extras for

Years Cash

anticipating better busi-

Power

calamity that could engulf

Approx.

Including

Manufactures

people,

other

the

Cash Divs.

No. Con■

Warns Against "Distrust of the Dollar"

close spread between

Steel

Traded and Most of Them Are

They are

Jack & Heintz, Inc.

relatively
the bid and serious and costly calamity that
offer, and it is not difficult to could befall us at home or abroad,
appraise its volatility. Thus, it is short of all-out nuclear war, say
quite reasonable for an investor The First National Bank of Boston
or
trader to buy 1,000 shares of in the October issue of its "New
Steel, and feel that he can liqui- England Letter." Continuing, the
date his position in the event of a Bank says, thus, no price is too
change at relatively small cost, great to pay for the containment
To a knowing and sophisticated of inflation, "the crudest tax."
professional, the risks in U. S.
It ig not surprising that many
has

stock

The

der.

doing well.

Operating

of perhaps 25,000 a day.

age

trend

have
eight

first

the

sioc^s

are

Steel.

Take, for instance, U. S.
* four ' million
shares

Over

giving individual

seXeCtions, but I think that U. S.

commitment, It is related, to mo
6ize of the swings of the

traded

indi-

technical

vjduai

decide to risk before you open a

been

Risk

issues

those

and

leaders

active

yancing market, even it the level moveSKhtS(
J?? i
'
grounds.
,

buy> j feel that

Where All Securities Can Be

industry, and maybe they are. But
for the security buyer, they represent

what

want to participate in this

if you

So, today, the trend

will

I do not think that time

there is nothing to do but to
low it

Rails

has arrived.

Market

Lcaders
-

The Over-the-Counter Market

regarded popularly as a decadent

effect, or when the news ceases to

be good.

Advises Follow the

action.

Intelligent Investor

their true na-

reveal

snots

weak

ture

page

ings ratio.

The Slock Maikei Picture and
The

from

Thursday, October 9f 1958

...

Natural

/
-

New
•"

and Pennsylvania

gas

grade crude oil

Jersey Natural Gas Co.

Natural gas

N. Y. Wire Cloth Co
•

;

Insect

metal

Metal stamping and

Penn

—

4.1

8.5

0.75

12% *

6.0

0.80

10%

7.4

1.60

28%

5.6

screening

Norris-Thermador
North

34%

1.10

distributor
.

Corp
fabrication

Co.—
-Operating public utility 0
Gas

Northport (L. I.) Water Works
Co.:
Water
•

•

Details not complete as to possible longer record,
t Adjusted for stock dividends, splits, etc.

Volume 188

Number 5784... The Cotnmercial and Financial
Chronicle

The Over-the-Coaiiter Market

Cash Divs.

No. Consecutive

Northwest

Natural Gas Co.—

'-Operating pnblic utility;;

Northwest
Plastic

" rt

v.r

Based

f...i

0.50

6y8

equipment

real

Manufacturer

'•

x-'t

0.10

' 7

5.3

17%

3.4

Co.—--

Penn Controls,- Inc
ilanufadtures automatic
controls

;

■

;•

f0.59

10.00

9%
and

1.20

f0.34

1.35

19%

1.25

Toronto

:1;

1.4

technical

6.8;!;

journals

—

Liquefied

Gas Co.

"1.00

*5'

0.80

gas

Philadelphia Fairfax

CORP.
»r

Plastic
See

•

WIRE

Corp.

Interstate

;

United

5.0

2.50

;

■.—

covered

wir*

Company's

Tools,

inc..

4.8

:•

1.00

5.7

171/2

5.9

t0.77

4.3

0.125

2.3

0.i5

1.9

0.50

Romford

3.6 /

1.00

22»/2

4.4

Western
Special

0.14

2.05

30%

6.7

0.60

11.4

11%

5.4

0.45

Western

6.7

0.60

0.24

3.50

4.7

musical

8.4,

Y., bus lines

Printing Co.—

them
'

'4.9

1.00

1.4

0.90

5.0

1.00

5.9

for

communicate with each other instan¬

7.5

19%

9.3

New

0.50

11%

4.4

1.00

8.3

Boston, New Orleans, Chicago, St. Louis, Denver,
Los Angeles, San
Francisco, Seattle and other

0.725

16%

4.3

Thus many over-the-counter

dealer-brokers, in
York, for instance, will be doing business
throughout the day with other dealer-brokers in

their

0.32

4.9

fO.49

6.4

1.50

ties

they

them.

solely

8.3

are

integral part of
stand

"quoting" and maintain inventories

Some

firms, of

course,

choose to act

brokers and not dealers.

Because of competition, the spread between the
bid and the asked

income

ready to
buy and sell substantial quantities of the securi¬

longer record.

investment

operations dealer-brokers

and

cents

figures

on more

active stocks

capital gains.

Continued

Seaboard Fire & Marine In¬
Co.

(NYC)

Diversified Insurance

Shedd-Bartush Foods, Tnc.—_
Margarine,
salad

peanut

products

and

products

Signature Loan Co.* Inc., CI. A
Consumer

614

0.225

(T. L.) CO...

Concrete

5.8

2.00

37%

5.3

0.15

1.4

t0.38

0.40

5.2

0.55

6,9

1.00

2.00

;

Rockefeller Bldg.i Cleveland

Smith

37/8

financing

Superior Co.—*—

mixing equipment

Snyder Tool

Engineering

Co.

3.8

HUBINGER COMPANY

Special machinery

Sommers Drug Stores Co
Retail drug store chain

Sofg Paper Co
Sulphite,

kraft

and

Southern Nevada
Electric

papers

Power

Co.

utility

"Southland Paper
,

rag

Mills, Iric

22y4

4.5

140

1.4

1.00

4.3

1.25

3.7

Newsprint

Southwestern Engineering Co.

Spartan Mills

0.15

4.00

0.30

6.0

0.60

7.3

0.50

77/8

6.3

t0.79

20%

3.9

Diversified operations

Cloths and sheetings

Standard Commercial
Tobacco Go.
Tobacco

Restaurant chain

erling Discount Corp.Auto

financing

tibniti Greene
Manufactures
trucks,
control

4.0

merchandising

Standard Paper Manufactur¬
ing Co.
Sulphite bonds & coated papers

cars

Corp

spring
and

switches

mats

buses

end

vinyl

7.0

for

motor

plas-

tisols

uburban Gas

Service, Inc

Petroleum gases

not complete
Digitized forDetails
FRASER
to possible longer
t Adjusted for stock
dividends, splits, etc.

record,

1.80

Magazines

surance

wires

cents from

can

stock dividends, splits, etc.
36

tremendous

taneously-through private telegraph
other facilities at their
disposal.

Details not complete as to
possible

0.90

finished steels

ff Total includes

are

Wyckoff Steel Co

.+ Artmsted

0.40

Corp.-

and retailer
instruments

Here there

interest themselves in
making a market for un¬
listed and some listed stocks and bonds. Most of

machinery

Utilities

quite different.

number of dealer firms from coast to coast that

8.3

fans,

0.4

cities from coast to coast.

Precipitation Corp.-

Wurlitzer Company

3.0

pumps

34%

2t00»®-»41>

Holding company

0.15

On the Over-the-Counter Market the situation

...

purpose

where less active securities

exchange, it devolves

The
continuity of any market thus created is
largely dependent upon his financial resOurc&s
and his willingness to thus risk his own
money/

5.9

Cold

Rochester Transit Corp
Rochester,

Oils, greases and soaps

motors,

& cranes, and

f0.465

heels, bowling pins, etc.

Manufacturer

Bobbins St Myers, Inc.—
hoists

on an

The Over-the-Counter Market

Weco Products Co

Co.j Class A—

Manufacturing

Sugar Corp

Corp

cases

anyone else to buy that stock, he himself would
be expected to enter a reasonable bid on
his own.

4.3

Insurance

;

it. Genuine aue*

In other
words, if you wanted to sell 100 shares
of XYZ stock and the
specialist had ho order from

Pipe

Waverly Oil Works Co..

5.6

1.00

Machine tools, earth
moving ma¬
chines, textile machinery, etc.

Radio & TV tuning devices

;

Life

■

In those

pipeline

Warner & Swasey Co.—

Personal loans *

gas

focal point for the concentration of
offerings of potential purchasers and

parlance, putting in an order for his own account.
22%
/

Toiletries

>M' *

4 0

carrier

Gas

to aa

exchange

upon the stock
specialist for each particular stock to create a
market, in the absence of sufficient public orders
to buy or sell,
by, in effect though not in strict

5 2

18.

railway & bus lines

Vulcan

Pump?, valves, etc.

Ritter Finance

page

Virginia Hot Springs, Inc

facilities

Diversified

23%
/8

r :

Wood

us.

insurance^
Racine Hydraulics &

1.24

Resort hotels

Quaker City Insurance Co.—
•

0.20"

Vending machines

0.40 J

Cold storage

;

Sugar production

Vendo

43.

page

Quaker City Cold Storage Co.
v.

States

Street

August 1958
Natural Gas Co.

Portland Transit Co
Holding company

1.20

stock

marketing in a security cannot be mafia*
tained, however, unless there is sufficient activity

Insurance
*

natural

United States

changed in

Northwest

United Transit Co. (Del.)

Portable tools

Porter-Cable Machine Co
Portable ejectric tools
Portland Gas & Coke Co.
Name

Life,

*nd

Portable Electric

24%

Co. in the City of N. Y.—_
accident, health and group

4.4

CABLE

f0.99
1

■

Line Corp

Philadelphia apartment house

PLASTIC

4 7

tion

system

Service, Inc.—

petroleum

General

Transcontinental

10.4

Petrolane Gas

3.9

29%

because

sellers for all securities listed

■

market

and

traded

———

Motor freight—common

Nttural

;

bids

in it.

Transcon Lines.——

Manufacturer of heat transfer
products

Petersburg Hopewell

provides

AND

Company's advertisement

Co.

exchange market is often referred

auction

8.3

1.40

insurance

Fire & casualty

—v.

GUARANTEE

■

4.9

14%

^ °

pipeline

Industries, Inc

Title

electric

Publishing Co

Business and

gas

TRUST,CO, (.V. V.)-....

4.9

;

The

2 5

"Haydite" clay & shale
aggregate

TITLE

Fruit Co. Inc.

perfex Corp
-

Texas

;

6.5

24% f'

1958

t0.48 ' 12%

Natural gas distributor

153

tfo.9i

Texas, Illinois Natural Gas
Pipeline Co.

Regional super market chain

•

Penton

■

—

.hydraulic
L:' fluid"systeni components

f%iii

11.3

10%;

Paymts. to

June30,, June30,V

estate

Parker-Hannifin

;•

Manufacturing Corp.

fl-16 /

•

Difference Between listed and

co.

Operates natural gas pipelines

■-

Laundry

lnZ:

z:~—7
—
open-ehd .mutual'investment

Natural

•%' Outdoor advfcrtlsiftg'": ^'W' ■;C;<
Palace Corp..
...

Pantex

Texas Gas Transmission
Corp.

„.

Park-Lexington Co.

0.6O

Texas Eastern
Transmission-

7.3

;

Trailers

1958

WliS---:——.

'3.9

pacific Outdoor Advertising
Co.

1958

Tennessee Natural Gas
lanes,

1958

(CY

0.63

Divs. Paid

Based

Television-Electronics Fund,

faymts. to ^
June 30, '

16 " "
-Itv/.

Plastics, Inc

products

tion-

June 30, *' June 30,
1958
1958

tion

June30,

% Yield

Quota-

YearsQash

California land holdings

Apprdx. •

Quota-

Tejon Ranch Co

% Yield

..,

Extras for
12 Mos. to

Years Cash
Divs. Paid

- v -

Including

Extras for
12 Mos. to

secutive

Traded and Most of Them Are
at

Approx.

Including
No. Con-

Where All Securities Can Be
i,

Gash Divs.

■-

MANUFACTURERS

page

Financial Chronicle... Thursday, October 9,1958

The Commercial and

(1490)

Continued from page

buys from and sells to you "as principal" or
"net" basis as it is termed in the parlance

not

Market

The Over-flie-Counfer

Be
Traded and Most of Them Are

loss is included in the

there is

quite narrow. In less active stocks the over-thefind contra-orders if he does
not wish to assume inventory positions, in the
securities involved. It is his business to know
which other dealers in all parts of the country

furniture, a fountain pen or what

room

in a given security.

does not add any

commission thereto; ; So with the

"counter" dealer.

Prospects known to the
first dealer, or known to those other dealers he
contacts (either locally or in other cities), may

often

The process

sellers

and

important reason for this is the

frequently necessitating his

sides

the instant

of constantly seeking out buyers
characteristic of the Over-the-

When

stock exchange,

profit rates may
afford

The

ordinarily lose interest

exchange firms. Though the "counter"

dealers'

be somewhat higher > they may
"better"

investors

physical

individual

Values

corporation will fare on the

stocks without regard

hd may

tinies 'make

he will book losses.

not do

after his

consistently

money,

but sqoner or later

remain

extended period,

he can¬

capital is exhausted.

Inventory Positions

purchataa

...

to basic, economic values,

And although he may

"in the market" for

; -

So it is with the over-the-counter dealer.-If hi

inventory ^positions at prices

assumes

out of line with basic economic

values, the eco¬

capital

nomic forces will in due time exhaust his
and drive him from the scene.

which

For survival ha

cognizant of the elements, listed above],
determinants of the real value of the

must be

are

securities in which he is

taking inventory posi¬

prices cannot consistently be out of

His

tions.

line with real values.

Particularly in regard to the

mak¬

non-numerical elements which go into the

which he is
to assume a position, he must, as a general *ide,
have knowledge superior to that of the lay tgfcder.

ing of the real value of a security in

the less

prices than

expensive service of exchanges.

Therefore,

important contribution of over-

the-counter dealers who take

important inventory

market
intrinsic
value factors. They must stress value

positions results from the fact that their
*

pricing must be influenced definitely by

practical matter, though, individuals in

taking the risk

trading in it
comparable to the commission charges

rates

For

city of 100,000 or more can frequently pick

any

dealer, be¬

it, for they cannot make a profit

limitations.

'As

When

corporation.

be handled numerically only to a

certain extent.

operate

security is taken from the Over-the-

over-the-counter dealers

of the "counter"
market is negotiation. If a gap in price exists
after a prospect is found, the transaction does not
die. Instead negotiation ensues. The mere exist¬
ence of a buy or sell order is the incentive for
Market thus has

products of

markets may

fact that ; habitually

inventory position, include

Counter Market and listed on a

Over-the-Counter

the extensive
searching for matching bids and offers from
potential buyers and sellers.

of-

might be induced to

dealer to find the opposite.

future

the :

to how the present and possible

than the profit rates

the services of the over-the-counter

major characteristic, too,

the "counter"

Speculation

directors- of

and

officers

the

These include the acu¬

initiative, imagination and forcefulness of

men,

commission rates more

than not are lower

on.

Counter Market.

over-the-counter dealers are obliged to

;'V"

buy.

non-numerical concepts.

;

individuals who are believed , to

•ecurity, or investors who

It is true that exchange

given unlisted security.

buying or selling interest in

have youV

flat price and

the merchant sells it to you at a

One, five, ten, fifty or more over-the-counter
in different parts of the country may
interest themselves in "making a market" for a

usually

The over-the-counter dealer

ness.

dealers

liave

price he quotes you and

just as a merchant does in other lines of busi¬
In other fields when you buy a set of-dining

acts

counter dealer must

include

his profit

means

commission charge shown on his con¬

firmation.
Is

might Mve a buying interest

This

of the securities business.

Where All Securities Can

often

often than

hand the over-the-counter dealer more

thing, the basic tact is that the price

one

of over-the-counter stocks is not swollen

phone and call a dealer-broker and get an
execution on an order for an unlisted security

by the

corporate

quotation consciousness.

consciousness over

up a

premium the public is ordinarily willing to pay
for

momentarily—often while the call is progressing,

exchange-listed securities.

listed stocks and the
?

Some "Counter" dealers sell directly to inves¬

tors themselves. In other cases

dealer following

they

tem

have a

may

throughout the country consist¬

short-term

investor clientele.

Numerous

The

exe¬

and ask

on an

An investor need not

The

purchase and sale.

quotations

vestor.

distinct

ferent

*•-'

■

in the

Midwest, and

the West Coast it's

the

are on

the

even

.
'

Stock

Exchange Commission Rates
Counter Dealer

When
for you

Charges

exchange-broker executes

vs.

order

exchange-listed stock, he tells

the cost price as

well

the amount of his

mission on your confirmation slip. On

you

com¬

the other

through over

the

account do so almost

entirely

counter dealers. Investment

continually
municipal and
corporation bonds and stocks through "counter"

officers, of these institutions, too, are

buying and selling government,

dealers for the account of their banks

and com¬

v/'.v.-

Just

you

get good or indifferent treatment

and values from both

large and small stores in

other lines of business,
counter dealers.

have

firm to

be thoroughly trust¬

million dollars to

it is with over-the-

It is not necessary for a

worthy and to have good judgment with respect
to investment values. Just be sure the over-the-

may

appear

It is

over-the-

somewhat

Some insights as to the real value of a

individual dealer you contemplate

reputation.

exaggeration to say that both exchanges
vital to our

and the Over-the-Counter Market are

economic life.

Through the medium of stocks and

bonds, idle capital of individuals,
tions and the like flows into
and makes it

banks, institu¬

trade and industry

possible for business to obtain the

wherewithal with which to provide
more

workers at

ever more
an

asset to

of it is

ever

jobs for ever

less human effort and At

remuneration. Savings thereby become

society and not

that the

problem. The beauty ;

capital needs of both big and

such things as
book value and
liquidating value. But the first three of these are
tied to the "* past, and subject to the fact that
accounting is an inexact science. And liquidating
value may be largely of academic significance,
if the corporation is going to continue in exist¬
ence.
The anticipated future average annual net

small business alike can be thus served.-

income of

reasons

stock may be gained by checking
its earnings and dividend records,

■

own

pointed out before, the assumption of inven¬

ments.

job from 7:00 in

morning until 5:00 in the afternoon.

selling their own institution'*

counter firm or

elusive* but they are nonetheless real. They con¬
sist of mathematical and non-mathematical ele¬

longer than that. Dealer-brokers in the Over-theCounter Market there

Basic economic values

time between 9:00 and 5:00
on

♦

2:30. However, in most instances unlisted securi¬
be sold any

economic values.

the West Coast between the hours of 7:00 and

can

They must take the initia¬
tive in assuming such positions. Although they
must be aware of and responsive to the foibles
of their customers, they cannot without unwar¬
ranted hazard buy securities for inventory pur¬
poses
unless they take cognizance of basic

3:30; in the Midwest between 9:00 and 2:30, and

ties

counter dealers' task.

cold in New York between the hours of 10:00 and

tory positions is an integral part of the

only be

can

price in keeping with

prices and values are two totally dif¬

things;

buying

doing business with has a good

advantage to the in¬

exchange, securities

that the seller obtains a

fact that

longer trading day in the Over-the-Counter

Market is often

good value when he buys

Intelligent investors are quick to recognize the

bond, and handle
-

when

stock for their

"exchange

the intrinsic value of the Stocks he wishes to sell.

above, since his dealer-

over-the-counter stock

all details of

himself with the

broker will obtain current market
any

banks And

major insurance companies of the country

panies.

prices is close or narrow is no indication

that the investor gets

exchange possible.

concern

intricacies enumerated

large to make

the

under

that

fact

Officers and directors of the 14,000
the

Many listed securities, too, are sold over-thequick orderly sale

mere

their interest being merely

price going and when."

auction-specialist system" the spread between bid

cute customers' orders for unlisted securities.

counter when the blocks are too

purposes,

"where is the

that do not must buy

over-the-counter dealer to

price swings in lieu of "real economic

Many apparently buy stocks according to

vestment

exchange firms also deal in over-the-

sell to

hoped-for price movement and not for true in¬

counter securities and any

from

values."

good values to sell to their

securities that present

exchange stock ticker sys¬

ready vehicle for speculation and
center buying and selling decisions on

provide

tend to

ing of retail firms that are always looking for

Then, too, active

a corporation
may be capitalized nu¬
merically, but/ not without reference to many

•

......

•

If it

were

Counter

not for the

.*■>

exchanges and Over-the-

Markets, investors of all types would find

it almost

impossible to quickly retrieve the capital

they put at the disposal of governments,

munici¬

palities or corporations. This is one of the many
why it is socially important that those

engaged in the investment business thrive.

Volume 188

Number 5784

The Commercial and Financial Chronicle

...

(1491)
Continued

from,

page

which

will

investment

had re¬ senior
investment policy to poses.

stricted

its

security

year

exclude all investment in

stock, the inclusion

common

pur¬

resent

equity

within the total reported gives an

rep¬

ownership of

bonds

income

(4) Common Stocks which

this fund

income

for

fund

results of their future program.
All

this

until

pension

By reviewing
the patterns of the past, the Trus¬
tees might be able to apply the

ienft of Pension Funds
System

the

tools.

securities

given rate

which

of return

& spe¬

System

return

approximately

Obviously;" if

the/ Bell

excluded

were

reports

2.9%.

the

System

the

from

wedded in such

study, for

indications

ment

overall

not

(1) Bonds have reaped

fund- the

first

step

the

investment

these

trend

these

among

Selection

studies is

the

constant

chosen

will

and

steady

growth of common stock
investment in pension fund port¬
folios.

Securities

nomic

in
commons
has
shown the most rapid growth per¬

government

bonds

has

these

and

commons

indication of

there

have
7.5%

stocks

common

overall return

(including dividends and appre¬
ciation). This return from com¬
mon

stock

than

matched

investment
the

has

combined

fac¬

tors of economic growth and cost
of living inflation.

particular

Therefore, it becomes apparent
historically it has been the

that

have been:'

recently

were

Description

appointed

in¬

•

c('l iwAdoption

new

This

has

shown

consistent

trend. This substantial increase in

establish

idea

pension funds
Each

and

vidual

are

that

problems

which

will

of all pension

has

and

peculiarities. There
las

two

2%% per

identical twins.
fund

every

Our

indi¬

basic

discussion

included

Outlook for the economy.
(2) Historical background of in¬
vestment securities;,

satisfy the needs
are

(3) Long-term factors affecting
common
or
mutual
investment
pension fund investment policy.
portfolios which can possibly take
(4) Actuarial requirements of
into consideration the problems
the pension fund.
and peculiarities of each pension
(5) An investment policy for
fund.
Therefore, the task of in¬
the fund in light of these listed
vestment must begin with an un¬
considerations.
'
derstanding of the purposes of the
(6) The selection of individual
fund and then
go to the considera¬

securities

tion of the type
of investment
securities that can be selected to

The

Trustees

should

absolute science.

acknowl¬

The

complement

this

Outlook for the Economy

vestment program that the selec¬
tion of investments is by no means
an

chosen investment policy.

reach the stated objective.

edge at the inception of their in¬

process

which

not

Policy for the

XYZ Pension Fund

the

J-

•

investment
in
common
the present drive by
insurance
companies to

and

certain

The long term prospect for this
country is one of growth and ex¬
pansion.
Our trends of popula¬

tion,

been

consumption, living stand¬
and productivity all point to

noticeable

trend

which the traditionally conserva¬
tive
investment
organizations

have

shown

towards

strong inclination
heavier
investment
in

common

equities

various

XYZ

factors

lump
to

why

the

should

there

XYZ

outlined

important part of
anced portfolio.
The

will

types

make up

portfolio
;

the bal¬

securities
such

which

balanced

are:

(1) Treasury and Federal Agency

Securities which

are

utilized

for

continuation

why

reason

not

Their

the

These two factors (1) continued
expansion and growth and (2)
continued depreciation of the pur¬

through
ment.

(3) Preferred Stocks which un¬
special eircumstances repre¬

der

sent

attractive

form

semi-

within

lected

"Long-'

•»

■

...

the

industries

suitable investment

se¬
me¬

•"

Continuous supervision

(4)

investments

changing

oil

light

conditionsand

tives.

oil
objec¬

be realized

stock

suggest

income securities
securities

that

50%

the

this

eventual

(bonds) and

fund

will

amount

against

book

concept

should

be applied to a pension fund
there is a specific reason

to
as

value.

retirement

benefits.

Whether this' level is to be
ured

meas¬

portfolio.

balance

benefits

that,

even

remain

the

over¬

consideration on the part
Trustees, some protection
the funds "real" value must

the

for

be provided.

historical

conservative

within

Pension Fund Investment

Policy
We feel that the primary objec¬
tive for a fund should be its pro¬

considered

the

when

patterns

Historical

long
are

Background

term in¬
established

More often than not it is of

ondary importance.

sec¬

We fell that

pension fund's investment policy
should be based upon long range
objectives and since a pension
fund is subject to a constant flow
a

of Invest¬

ment Securities

Before Trustees begin to discuss
an investment
policy for the fu¬

ture, it is a necessity to examine
something of the historical back¬
ground action of those securities

funds, they should be in¬
vested immediately in a "dollar
averaging" pattern. Finally, there
is no-distinction between principal
appreciation and yield in view of
new

substandard

in¬

"poor house" a ghost
of the past.
Whether or not we
will
succeed
depends
directly
upon how wisely you invest your

and

securities

purchase by

available

for

pension fund. Ob¬
viously the problem of selection
is of utmost importance.
There¬

before

individual

security
included within the portfolio.
an

Quality—Corporate

risk

Halsey, Stuart & Co. Inc. head¬
a group of underwriters Which
yesterday (Oct. 8) $11,000,000 Madison Gas & Electric
Co.
4%% first mortgage bonds
1988 series, at 100.893% and ac¬
crued interest, to yield approxi¬
ed

offered

mately
4.57%.
The
group
was
awarded the bonds at competitive
sale on its bid of 99.81%.
The bonds may be redeemed by

Bonds

(Aaa)

company

from

are

investment

•

Halsey, Stuart Group
Offers Utility Bonds

the

Bond Portion of Portfolio:

(1)

Securities

Policy

sands

us.

to make the

Complement this Investment

prices

110.52% to 100%.

ranging;

For sink¬

ing fund purposes only, the bonds
may
be redeemed at prices be¬
ginning at 100.85% in 1961. -.
,

Proceeds

from

the

sale

the

to
those with the greatest investment

bonds

risk

porary
financing for the com¬
pany's construction program and

(c).

Generally pension funds

restrict

themselves

the

will

used

pay short
term bank loans incurred as tem¬
.

first four ratings

(Aaa, Aa, A, and the balance will be applied to
BAA) in order to provide ade¬ other construction costs to be inquate protection to the fixed-in¬ curred this year and next.
v
come portion of the portfolio.
Madison
Gas
&
Electric
Co.
(2) Distribution of Maturities—
selecting the spread of bond

consideration

ap¬

This type of economic deg¬

pension funds.
to

of fund liquidity depends upon
the needs of each individual fund.

dollar

subsist

come.

the

view

background

Selection of Individual

outstanding fea¬

pear

the

objectives, then the main victim
worker, forced'

future economic forecasts.

should

Long Term Factors Affecting

its bene¬

will be the retired

We feel that this selec¬

tion
our

apparent

structure,,

serve

On the other hand,,
if the fund fails to accomplish its.
ficiaries well.

We have the vehicle and the tools

dollar promise or by
"purchasing power" is a matter to
be decided by the Trustees.
But

economic

our

then the fund will

conservative

factors which must be considered

satisfactory

fail¬

radation is abhorrent to all of

fore, I would like to outline those

ities

for this choice

fund

provide

directly-

success Or

The investment'

is to gain the highest productivity
for the fund while preserving a

because of the nature of the plan.
The basic objective of a pension
to

pension
activity

portfolio is the backbone of the
pension fund. If it has been in¬
vested wisely to match the real¬

percentages
in light When re¬
quired by future economic devel¬
opments.
reason

continuous

of the fund.

ure

However, the Trustees should re¬
tain the flexibility, to vary these

The main

responsible for the

var¬

classification

investment

fund

which will eventually be

are,

unless

The

invest¬

(common stocks)

each

measured

tures in the long range picture of
our economic climate and must be

moderate income.

good income and safety of capital.

;

dia.

investment balance between fixed-

power

vestment

(2) Corporate Bonds represent¬

panies

Fund

policy

common

ductivity (yield and appreciation)
consistent with safety. The factor

chasing

for pension funds.

will adequately provide the

trust

their

for

reasons

protection of capital liquidity and

ing the indebtedness
of
highquality U. S. corporations used for

selected

investment

' V''"

Therefore, we feel that the
Trustees should attempt to arrive
an

Term Factors."

Outlook for individual in¬
dustries. ' '
"
' '
y
/. ■(3) Outlook for individual com¬

the primary

under

common

are:

(2)

reason

Pension

deviate from

essentials

least

whole.

the Trustees over any
withdrawals leads us

that

Outlook for economy

(1)

sum

feel

factors

stock selection

interest assumption; and the con¬
trol

Important

•.

dustry; the lack of vesting provi¬
sions; the relatively conservative

those factors which will affect the
economic outlook of this country.
The relative stability of the in¬

riding

ards
a

economic

consideration, too,

fund should favor those commort

stocks

We do not have space to cover
of
this subject in light
course, justified by the historical adequately
backgrounds and future forecasts of the problems of the XYZ Pen¬
for our economy.
But the inter¬ sion Fund. As you are all well
esting point is that we can see no aware .there are literally thou¬
accounts.

level

upon many

industries. This

economic structure*

our

lated
into the ; actual choice ; OS
specific securities, this means that,
a

have

judgments
based
expansion experienced during the
variable factors.
For
past 75 years.
In those years, our
this reason, an investment port¬
rate of economic growth has aver¬
folio must represent something of
aged 3% per year. On the other
a hedge, a choice of various
types hand, the cost of living has also
of securities which will represent
shown a consistent growth pattern
a diversified list of
companies and averaging 2% per year since 1880.

society of stabler

which not only have evi¬
carefully considered dence of
historical strength birt^
affecting the at the same
time, also promise^
Pension Fund,;, as well as
future growth.
/
.;•

rated for investment quality
by recognized financial services.
Ratings designate those with the

matter

out

reflecting the strongest and grow¬
ing segments of industry.'Trans¬
;

dollar

static

section of

•

industrial

of investment selection is

not

are

further
problems
directly related to

any

can

investment.

has

annum.

(1)

formu¬

funds; there

disclose

permit
stocks

growth

the following subjects:

actuarial

are no

pointed

iable

investment under¬

the

criteria' effec¬

sum

investment results

pattern for the past 20 years and increase the percentage allowed.
is not subject to
extraordinary
(3) The essential character of
scores the desire on the part
of swings of employment. The pen¬ the personal trusts and estates
investment management for high¬ sion
plan did not provide any handled by many major banks
er yield coupled with a fear of the
vesting provisions prior to death and trust companies now lean to¬
continuing erosion of the pur¬ or retirement but was liable for ward an investment in common
chasing power of the dollar.
lump sum withdrawals at these stocks amounting to well" over
times
at
the
discretion
of
the 50% of the total portfolio.
V'! The Investment of a Pension
Board of Trustees.
The actuarial
It is the last point which bears
■}
■ ■
Fund
consultant had assumed that the the greatest importance to pension
To begin with we must firmly
fund's
investments
would
earn
fund investment activities. There
stock

common

applied.

previously, our economy and our
Fund* * markets are
ever-changing; Wc?

Pension

evaluations

New York State insurance law to

fund representing 3,000 employees
and 220 employers; The industry

every

(2) Amendment in 1951 of the

area-wide bi-partite

->•

mingled
common stock fund by New York
the XYZ Pension State mutual savings banks.
;<

Fund

continuance of this

the

time,

shown

vestment advisor.

to increase their holdings

money

ent

tively

De¬

which
Experience has proven that se¬
liquid¬ lectivity is the key to successful
interesting if common stock * which has
pro¬
ity and safety of principal need¬ •investment in common stocks, -"■f"
I applied these considerations to
tected the investor in terms of
ed, but also give important recog¬
an
actual case, I would like to
real values.
Events indicative of
Conclusion
'
' y'
nition to the superior, long-term
outline for you a fund to which
this trend

$978 million or 37% of net re¬
ceipts by pension funds during
l957.? Investment managers are
of

factors

It would be

shrunk

the inflow

the

needs and problems of the fund.

new
common
investment
amounted
to

upon

govern

From 1880 to the pres¬

the

for

lump

An Investment

growth

of-important

vesting but is tastes and r~*tterns.
Constantly
withdrawals at
shifting patterns are all related todeath or retirement at the discre¬
the equity market, and therefore,,
tion of the Board of Trustees. As¬
require constant study.
/
sumed interest rate is 2%%. With
The common stock portfolio off
the exception of these
provisions;, a
pension fund should be a crossthe actuarial

inflation.

affecting our society and
the pension fund and; (2) relate

Furthermore,

relying

set the tone and personality
pension fund. This phi¬

their

factors

from 32% of book in 1951 to 11%
in 1957.
1

stock

by the Board of Trustees

Therefore, it is of utmost im¬
portance for the Trustees to: (1)
consider
the
general
economic

types of securities. Since 1951, the
common
stock / investment, as a
percentage of book value, has
jumped from 12% to 25% in 1957.
the s investment

ment

ties.

centage-wise in relation to other

growth

through enhance¬
capital value.
Common
equities
have
adequately
pro¬
tected principal from erosion of

philosophy

losophy will guide and

investment

Conversely,

investment

diversification of the portfolio and
the selection of individual securi¬

During the past six years,

'■:

none

basic

our

security, equities have as a group,
directly participated in our eco¬

Portfolio Diversification and the

invest¬

documented

(2) Bonds, their interest and
principal, have been vulnerable to
classifica¬
the factors of rising prices.,
Compared to the fixed income

tions.

outstanding

most

beneftis

trend.-

provide

liable to

Trustees is to decide how
assets of the fund should be

The

til

satisfy

each

trends.

Perhaps

the logical

XYZ

•

before

stocks depends upon'a num¬

ber

understand that the fund does

the

divided

siderably higher. Because of factors such as this, the figures pub¬
lished by the SEC are only useful

specific needs

Therefore,

the / national • average for return
on invested capital would be con¬

way as to

outlined

scription

cified period of time.

high-quality corporations provid¬ cipal amount is returned to the
excess
emphasis on fixed-income ing excellent income and some
lender.
The guarantees of princi¬
type securities. - The- distortion by protection
against the rapid rise pal and interest
depend, of course,
the Bell System is continued in
in the cost of living.
upon
the
continued
financial
the reported national average of
These are our investment tools. strength of the issuer. As a par¬
return upon investment. This na¬
Each classification serves a dis¬ ticipant in our historical pattern
tional average amounts to 3.84%,
tinct purpose and each should be of growth, it should be noted that:
whereas the Bell

The successful selection of com¬
mon

Requirements
As

■

Portfolio

XYZ Pension Fund Actuarial

of that

At the end
period of time, the prin¬

Common Stock Portion of

ilege).

promise

over

(be¬
tax-exemption priv¬

of the

cause

V / The

essentially fixed

are

the final results to the fund

maturities,
for
cash

the

liquidity
inflow

most

important

should be the need

by
and

estimating
outflow

the
the

fund

during future years and to
protect
any
possible
years
of

supplies electricity and natural
gas in the City of Madison, it^
surrounding suburban areas and

immediately adjacent rural areas.
State Capital and
home of
the University
o?

Madison is the
the

Wisconsin.
.

..j

Form Nassau Investors

deficit cash flow.

WEST

HEMPSTEAD,

(3 ) Marketability—at the be¬
ginning of an investment program

Nassau

Investors

and until the fund has reached

formed

with

sington

Road, South. Timothy J.
Jr., is a principal of

point close to maturity, a pension
should not purchase bonds

Murphy,

with limited markets.

the firm.

fund

•

Co.,

offices

Y.—

has

been

123

Ken¬

•

obligations so; readily as they had supposed. Mortgage
money was made somewhat cheaper and more abundant
and thus reinforced the efforts of the government to. get:::

Continued from first page

See It

home

building

to be rather

government outlays before or
the recession became pronounced.

considerable increases in

fluence to the easy

authorities.

income had been

Farm

level for a

which Kept

maintained at an artificial

of the factors
personal income at levels higher than it would
good many years, and was one

have been——and all too many current com¬
mentators seem to take it for granted that anything which
otherwise

keeps personal income at a high level is ipso facto not
only anti-recessional, but good for the economy. Various
other so-called transfer payments — that is, payments

production—are com¬
monly referred to as built-in stabilizers. This, of course,
would include social security, so-called; unemployment
insurance, unemployment benefits extracted by the unions
from employers and public aid to the aged and incapaci¬
tated. Many of these have been increased quite substan¬
tially in recent years. Certain politicians now naturally
claim that steps such as these were taken for the purpose
of stabilizing the economy, although the truth would seem
to be that they were for the most part mere vote catchers.
The sundry types of "insurance," particularly perhaps
bank deposit insurance, are often credited with preventing
the sort of collapse of banks and bank deposits as have
been observed at times in past recessions, particularly in
1929. This chum seems to us to be more than dubious. The
Structure of. bank credit, and other types of credit, too,
were vastly different at the middle of 1957 from what they
were toward the end of 1929. That is not to say, of course,
that* the type of. credit outstanding in the later year was in
way ideal; or that it may not sooner or later give a great
deakog trouble. The fact is though that there was not in
which do not grow

out of current

I9&T the vast structure of

weakly supported bank loans

by the-great rank and file as there was in 1929—not only
weakly nelft but subject to urgent "call" should the secu¬
rity which was supposed to protect them seem to weaken.

of mortgage credit,
and it may well at some time in the future plague us
seriously,, but the situation in this sector of the economy
was essentially different from that which existed in 1929.
^Phe trouble that this vast expansion of credit may well
giVe could hardly be expected to be of the explosive nature
that characterized the 1929 situation. In our view, it is
rather more than doubtful whether any such collapse as
that of 1929 would have occurred in 1957 or 1958 even
if there had been no Federal Deposit Insurance Corpora¬
tion, or any of the other insurance or guarantee programs,
although it may well be that these schemes contributed
tc& confidence on the part of;the rank and file which could
hardly be expected to understand the true inwardness of
such situations.

Certain other measures were taken by the Federal
of limiting or ending
the recession. Housing legislation, additional public works,
and emergency unemployment payments to those who had
already drawn all that was coming to them under the
then existing law are among them. Housing seems to have
been stimulated by certain of the steps taken, but the addi¬
tional public works have not even yet reached the stage
where much effect (other than strictly psychological)
could be expected. The supplementary unemployment in¬
surance payments came too late to draw honors when the
matter of the cures for the recession are under considera-

)

authorities for the express purpose

tiom What

seems

to be the lesson of such attempts as

these

government machinery; in addi¬
tion tot other infirmities, moves much too slowly for the
ta end recessions is that

purposes

But most

effect

brining the recession to an end—any effect, in
any cvertt, other than a purely psychological one. Some
corporations quickly made plans to refund securities they
had issued in 1956 and 195? at rates higher than they
m

; wi&ftsd

tq pay. A few of them succeeded, in such refUndings; many found the market not willing; to take their

present limita¬

is to

tions in>statute and practice,

the potential capacity of
these great in stitut ions to. serve*
the growth of the nation as well'
as their own regions.
It is a de-,

deny

of vast benefits,

to the State

derived from the fu-,
growth of its savings institu-„

ture

tions

the: economic

and

that

comes

from

panding financial
A

vitality^

vigorously.vex-J
institutions.

high prices-and very high wages (with the unions very
saddle), artificial stimulation of the economy:
in various sectors
these and other kindred conditipns

state

respect to bond investment,

—

which
are

of the sort certain to

are

give trouble in the future
The recession has not been per¬
of the conditions which caused it.

Continued

remove

from

any

adversely af-i
fected because both savings and:
commercial banks invest in the
securities of out-of-state
enters,
have not heard theftn;
principle is established;
lending, I do not'
think they would be heard in re-;

industries;

local

that

raised

local utilities are

prises?

page

which

perfectly analogous. Are voices

ever

all left in the economy.

mitted to

mortgage lending, however,;
It is never raised in!

is academic.

much in the

Today's Trends in

the

Once

for

mortgage

spect to it either.

Correspondent System-

Mortgage
'

you

add the Massachusetts banks,

the

proportion

The

inclusion

74.8%.

facts

These

present

plainly

of the

and

Pennsylvania banks raises the
figure another 12%; while the ad¬
dition of New Jersey raises the
figure to over 90% of all savings
bank deposits. In other words, the
savings bank operation is highly
concentrated in only five of the

other!

only one

vestment

long

distances?

The:

noth?-;
ing could be safer or easier. The
the rest o f t h e country.
They mortgage correspondent system,;
clearly reveal an < imbalance be¬ which has served the life insurtween the accumulation of capital ance
companies so well and so"
and the demand for capital. These long, is with all its experience and
circumstances lead to two results dependability equally available td
of. profound significance to
the savings banks. Those of your in--

of a slackening rate of
Connecticut growth in corhparison with that of

comes

think

can

pertinent question. Could savings
banks safely conduct mortgage in-„

Situation

Imbalanced

Cites

deposits of all savings banks.; If,

picture

here is irrefutable:

answer

savings stitutions who have used it.for the
acquisition of insured and guar¬
anteed loans are well aware of its
The concentration of mortgage, concentration.
effectiveness.
There is certainly
lending is as great as the concen¬
(1) Mortgage interest rates are

49 states.3

deposits.

92%

About

tual savings banks are held by the
banks in the five leading savings
bank

investment

mortgage

banks in the area of their

mortgage holdings of mu->

than one-third

Less

states.

lower

greatest

the northeastern part of

and especially in New
and New England, than any-*

the country,
York

else. ; For example, in this
during the past few months
on local FHA

where
area

problem here,

expansionist policy is right..
The country is growing now1; and
it is moving toward a decade of,
still greater growth. Between now?
and 1970, some 11 million net ad*;
ditional families must be housed
An

investment, which
amounts to nearly §19 billion (as

the

September; 1957) was placed in
other than the state of domicile.4

and probably as many, as six mil.-;,
effective yield on FHA's of lion existing dwellings must be
5.35% for the country as a whole. replaced, if we are to do no more
(2) As I have pointed out, de¬ than maintain our present stand¬
linquency rates on home mort¬ ard of living.5, In the next decade
will
probably have even,
gages have fairly consistently been you

this

huge

Life Insurance Experience

effective yield

acquired

newly

mortgages

was

about 41/2% compared with an av-.
erage

By contrast, life insurance com¬

which ordinarily are in¬
different to state lines, and which,
it may safely be said, distribute
their mortgage investments in re¬

panies,

higher in the northeastern region
than in the. country as a whole.

greater opportunity, for growth
than during the period 1946 to the

be pardoned for saying present when the rate of expan¬
combination of low interest sion was the greatest in your his-,
of the demand for mortgage funds,
rate with high risk just doesn't tory.
Investment policy will
have only 15.6% of their nonfarm make
banking sense.
Yet
this probably have more to do in de-*
mortgage
holdings in the five combination is exactly what would termining the extent and the rate:
states which are the areas of be expected from an examination of this new growth in the future
greatest savings bank activity.
of the data I have offered here. It than anything else.

lation to the national distribution

What these
an

figures add up to is

extraordinary accumulation of

If I may

so,

inevitable result

is the natural and

that

circumstances

the

today

lim¬ control the mortgage investment
•
ited geographical area; and, with of savings banks.
Whenever
a
surplus of funds
minor exceptions, the investment
of the portion of that capital allo¬ presses for investment within a

investment capital

cable

surance
area

mortgages

five-state

very

in that same

Judged by life in¬

area.

company

experience, this

comprises hardly more than

one-seventh of the aggregate non-.
farm

take

are

it,

might

broader look at the charac¬

teristics of this
view

mortgage

area

from the point

their

influence

investment:

the

lation

bank concentration in¬
only 7.4% compared with
12.5% for the country as a whole.
(2) Expressed another way, this
area
which comprised nearly a
quarter of the population in 1957,

provided only about one-seventh
of the total growth in population
during the present decade.
vate

dwelling units built, during
four years were in the
five states of greatest savings bank
activity.
last

3 National

Association of Mutual Sav¬

ings Banks.
4 National

ings Banks.

Association

ity;

the

consequences

depression of

without

any

meas¬

in lending activ¬

decline in the return that
be paid to savers; and either
a

saving

discouragement to

diversion of savings to other .and
attractive

this

All

of Mutual

banks

ings

media.

think

accurately de¬

Sav¬

northeastern

the

themselves.

find

area

It is not

Even

not
for

the

situation, and it is
one that holds good prospects
the future.
On the contrary;
difficulties

bound

are

in¬

each year that the growth
region fails to keep up with
the growth of the savings banks.
;
There are only two ways out of
such a
predicament—an accept¬
of

ance

the

slower

must

bank

further expansion of

investment

banks

rate

field.

Either

the

or
later, by
another, limit their
growth to the absorptive capacity
of their region, or they must find
some
way of further broadening
the scope of their mortgage in¬
vestment. To me, and, I am sure

sooner-

gome means or

to you

also, the second alternative

potential

nonfarm families.
Next:
there probably also will be
a
withdrawal of at least 450,000.
units from the existing supply of

900,000
year,

dwellings—as a result of fire and
other disaster, of change in land
of abandonment, and of the
of highway and urban

use,

advance
renewal

Growth and

operations.

will produce
a
possible requirement of over;
1.3
million new dwellings.
Yet,

withdrawal together

for

1959, an optimistic forecast is
building of no more than

for the

1.2 million

the

private units.6

new

are

preserve

institutions,

vate

;

pri¬

our

must meet
and fu-*

demands that present

ture

crease

of the

the

today,

growth is not being realized. Next
year for example, there probably
will be a net addition of close to

comfortable

growth

(3) Only 18.7% of the new pri¬
the

rate

increase

urable

area,

certain to be:

interest

scribes the situation in which sav¬

five-state

the

are

«.

decade, the popu¬
area
of

current

confined

can

demand.

mortgage

While

creased

indeed there is any evidence, that the easy money policy
of the Federal Reserve authorities had any appreciable

continuance

policy of expansion, ,on the.
hand, produces nothing but:
costly at some time or other in the future::7
advantage
to all concerned. Most,
It is now clear that this recession; if it really is a thing f
important, it gives the depositor,
of the past, has left the major causes of it largely un¬
a
better deal in every respect.
,
touched. A vastly extended credit and debt structure, very
r
The whole question^ of out-of-,

savings

Suffice it tQ say at this point there is scant evidence, if

which is the sure consequence

other

This leaves the favorite prescription of so many for

low interest rates, and if feasible an expansion of
th&:money supply. Nothing is to be gained by entering the
endless-arguments about the power of; such tactics as these
to influence the course of the so-called business cycle.

given busi-

view—that any stimulation

(1) During the first seven years

money,,

harmful and

almost anything that is wrong with business—that is easy

;

that may be

important consideration of all is the fact— ;>
our

sensible course,.
stand-still policy;

the only

offers

nial

by virtually any of these means must, whatever the •
immediate effects, build up conditions which will prove ^

in hand.
Easy Money

Important of All

ness

of the

There has. been a vast expansion

;

for fact it is in

tration

Mortgage Credit
'■

seems

Most

Farm Subsidies

active basis.;But he would have ;
to us, to attribute a major in¬
money policy of the Federal Reserve '

on a more

naive, it

by the time that

■

Thursday,.October 9,195&

and Financial Chronicle,,,

The Commercial

(1492)

growth, and renewal impose
To do this your resources

upon us.
are

needed.

They

are

needed

badly and they are needed far be¬
yond
state-

the
The

borders of your own
savings, banks of the

country, concentrated though they
are
in location, have a national
mission to perform.

It is a mission

that, if well performed, can

"greater

prosperity to

mutual

savings

bring

the

savers
who entrust their savings to the
your

law

banks. Can you,'
makers—your govern•••••"

—i—_

„

5 Miles

Colean.

6 Miles

Colean.

•

Number 5784. s.The Commercial and Financial Chronicle

Volume 188

(1498)- 4#Y
ments, in all good faith pass up
this
opportunity to serve your
constituents?

;

■'

The'

quality' pf mortgage lend-"'
irig is'like that of mercy: "it bless-,
him

ethr both

that gives

that takes.''. It is

eration,

and him-

reciprocal

By ARTHUR

op-<

This Week

tage; if'-there ever was one;-Again,>
like mercy, "it is mightiest with
the;: mightiest;"

Because

your- re-

sible

rewards

wish

all

alike

and yours.

—

not

Insurance Stocks

general

casualty insurance stocks

ended

long-term

there«is (of, life
is

not quite the

with? let

us say; 1956;
the life writers enjoyed one of the most
profitable periods in their Y
history. It is also true that this period closed with

*
~

It is true that for the decade

case.

recognition

issues; but analysis brings out that this attitude

great."

are

these?, in the fullest, for

there

growth of fire and

responsi- J;,

great; your

sources, are

Probably

bilities and opportunities and pos¬

you

WALLACE

act of mutual advan¬

extremely- bad

going, marketwise, of the fire-casualty group. All of
which/brings
point that even a decade is a
relatively, short" period? for
insurance stocks, life or
fire-casualty, to do their bestY ;
J- vYV

"°ut the

For example, the decade of the 1920's
would not have shown
well, of course, because it ended with an early,

Office Equipment Firm
v

Add

almost:

ressograph-Multi graphs

additional shares of
at

the- rate of
shares

ing

group

Oct. 22, 1958." The offer-'
being* underwritten by a
of investment banking firms
on

the

under

/>/,

John

member

Bunn

the 1 New

York

Stock

ST.

LOUIS, Mo.—Stifel, Nico-"
Company, Incorporated,
Broadway, was admit¬
ted to •• membership in the New
York Stock Exchange Oct. 3,
1958,
according to an announcement by
laus

314

>&,

North

outlets; the

development; Louis J. Nicolaus, /Chairman of
improved; products,- the;:Board.,' Mr. Nicolaus in his
and to augment working capital.; announcement
stated the applica¬
*

Ruddick

from

and

Moore

dent-Assistant Secretary; and Jo¬

dutgrowth of a,business originallyv the Exchange was approved Oct. 2'.
1893, is a major manu-r by the Bbard of Governors of the:
facturer of office equipment.
Its'* Exchange, *
products; comprise an extensive*
f. Stifel, Nicolaus & Company, In-,
line' of name and data writing,i
corporated, originally established,
duplicating and imagirig machines: in
1890, have specialized in >the.
for
the
preparation of. business?
underwriting of" both corporate
forms^ communications. and rec-i and
municipal securities and also^
ords,. and a broad line of sup-; have
placed emphasis on the re¬
plies and accessories.
tail distribution
sales

and- miscel¬

during the fiscal

ended July

year,

31, 1958 totaled. $119,152,000, com¬
pared
with §106,766,000
in the

preceding
amounted: to

Net

year.

§9,168,000

income

and

Treasurer,
In
the

addition

American Stock

ciate)
and
Exchange,,.
The

the

Stock

member

the

Exchange (Asso¬
Midwest
Stock

Board, and opera¬
The firm was tion in Chicago is directed by
the pioneers of municipal; Joseph D. Murphy, President of
revenue
bond
financing.
Stifel? the company. Chicago office is
Nicolaus. &
Company, Incorpo¬ located at 105 West Adams Street.
rated is registered to deal in se¬
Hayden, Stone & Company will
types of securities.

Officers

ten
of

states.

the

firm

Louis

are:

firm's

the

New

York

corre¬

In addition to the

spondent.

un¬

671,000 in - the «respective ,years,; J. v
Nicolaus,' Chairman 'of V thb derwriting, retail distribution and
equal to $3.25 per share, and $2.72 Board
(St.
Louis);
Joseph
D. transactions as a member on sev¬
share on the basis of 2,822,256
Murphy, President (Chicago); E. eral exchanges, the firm main¬
shares outstanding, at the^ end of
Win:
Barmstatter
(St.
Louis), tains a complete trading depart¬
each year as-adjusted to reflectJohn W. Bunn (St. Louis), James ment
dealing in unlisted securities
the three-for-one -stock split on
L. Jeffers (Chicago), Laurence J. with direct
private wire facilities
Sept. 15, 1958.
Gable, Sr. (St. Louis), Hugh D. to New York and principal offices.
Uninterrupted
quarterly
cash
per

To Offer Australian

Eastern Pa, I. B. A.
*

PHILADELPHIA;
will

Eastern
the

Pa.

—

highway

The

program

the
subject before the
Pennsylvania Group of

Investment Bankers

Associa¬

tion, at the I.B.A. luncheon meet-'

ing,.Friday, Oct. 17, according 4o
Harley
Sachs &

L.
Rankin,
Goldman,
Co.,,Chairman.
/
J,
Stevens, Secretary of
.

Lewis M.

Highways

will

the

speaker.

Mr. Stevens will
explain the high¬
lights of the states highway pro¬
gram to the bankers.

will

12:30.

the

The luncheon

Barclay

Hotel

Bonds Abo,,f 0ct<23

CHICAGO, 111.

—

sue

will

His

topic

WORK AND

will

be:

CURRENT

RESPONSIBILITIES

OP THE FBI.

Loan

$106,000,000
Banks

3^2 %

non-callable

con¬

and due

securities

dealers.

The

notes

are

priced-at 100%.

the

companies listed have acquired; by, merger
affiliates outside their, field (Federal and its
newly acquiredilife

unit; Continental Casualty and "its National Fire? etc/)V We'have.
given no effect to the- acquired* unit in such a. case; Where
mergers have brought together two companies, in the same field
(such as Continental Insurance and Firemen's of Newark) we-haye
used pro forma data:
Of course? adjustments have-' beem made
-

for stock

dividends, splits, and capital" increases via-rights in the.
assets figures.
The fact- that; the two America FOfik
companies and Insurance Co; of North America did so weiliin.the
ratio < column

may
be »rtraced;, to -a combination. of factors, one
importantmne of which is the fact that these companies
aredreavy
investors in a number of the better
grade common stocks?
|*

Twenty-Year Change in; Value of: AssetsTotal Increase

Ratio oi? per Hh.

in-Value-

Per

(in thousands)

Aetna Insurance

12/31/38

$17,878
4,059
22,372
4,277
11,480

$17:88

Continental Ins...^

199,034

29.92

Federal

27,767
170,732
43.284
14,609
68,825
12,999

Agriculture

—

American Ins

Bankers &

Ship.__

Boston Insurance._

Fidelity Phenix
Fireman's

Fund

Glens Falls
Great American

Hanover

Insurance

Hartford

Fire

Ins.

Co.

No.

—

Hampshire.__

Northern Insurance

North

River

Pacific
Phoenix

$54:54'

5.39

5.40

28.51

38.01

11:48

26^7

9.79

306

14.43

1L24

23;99

43,680

25-

100,

1L45
17.05

250

23.99

16.86

16.62

144

26.00

37.53

24.89

34.49

27.63

„

33%

41.28

.CJitfz

to 12/31/38
Invest. Assets' **.•?'

10.15

10.28

110,526
220,907
3,767
6,015
9,419
16.285
6,760

Amer.

Invest. Assets

42.68

62,219

Home Insurance...

32.08

41.33

20.97

197

.6.28

40.07

15.04

47.62

32.43

33.33

20.36

25.33

30 Y

33.80

32.62

43.68

54/77

104

80;
"

Prov. Wash.

132

...

Reliance
-

St. Paul Fire..

0.33

39.38

22.38

17,043
31,705

0,8

37.32

7.75

The offering will provide addi¬
tional funds for advances to mem¬

to be made about Oct. 23.'

ber, institutions of the Banks sys¬
tem to meet the rising demand for

The

proceeds

be used

of the

issue

will

to finance various

works

projects

public
throughout the

Commonwealth of Australia.
:

The most recent sale of bonds of

Commonwealth in the United

offering of
$25,000,000 15-year 4%% bonds in
April, 1958.
was

mortgage

money.

Upon completion of the financ¬
ing outstanding indebtedness of
the

Banks will

Now Goold & Co.

10/1T;.

60
./

76,

(Special to The Financial Chronicle)

EAU

Hesse

CLAIRE, Wis.—Donald L.

engaging in

securities

business from offices at 1712 Main
Street under the firm
lected
was

Securities

Co.

name

of Se¬

Mr.

Hesse

formerly with John G. Kin-

nard & Co.

of Investment

Denver,
Goold

has

cated

and

WASHINGTON; T>. C.—Colonial

Sales, Inc. of
Securities Corp? has been forraed'
been
changed
to
Company, and the with offices at- 422" Washington
.

main office of the firm is
3385

South

now

lo¬

Bannock,

Englewood.

Building to
business.

$722,000,000,
comprising $432,000,000
short-term notes and $290,000,000
five-year bonds due 1963.

NATIONAL
GRINDLAYS

OVERSEAS
BANK

David

Clark

Middlebrook,
associated

Jr.;

with

and

Alfred

have

become

Hornblower

Weeks, 40 Wall Street, New York

City, members of the New York
Stock
tional

Exchange,

the

sales department;

Institu¬

securitiBfif

Davis

ANEI

BANK

LIMITED

Aktia/gamaring'NatioMl Bank a/ India Ltd*
and Grindlays Bank Ltd,

INSURANCE

Head Office:

With Hornblower & Weeks

engage in a

Robert- H.

principal.

amount

Forms Selected Sees.

Form Colonial! Sees*

ENGLEWOOD, Colb.—The firm
name

by Morgan Stanley & Co. Public
offering of the bonds is expected

Karl L. Steffansson of the FBI will

underwritten.

group of investment firms headed

Special Agent

dinner meeting of THE INVEST¬
MENT WOMEN OF CHICAGO at
the Chicago Bar Association.'

will be from indifferent to^poor.

to Hear

be the guest
speaker at the Oct. 15

Home

D-1959

Market

offering

April 15, 1959, was made
yesterday (Oct. 8) by the Federal
on Oct. 3 filed a
registration state¬
Home Loan Board through Ever¬
ment with the Securities and Ex¬
ett
Smith, fiscal agent of the
change Commission covering $25,~
Banks, and a nationwide group of
000,000 of 20-year bonds. The is¬

States market

Women

solidated notes dated Oct. 22,1958

The Commonwealth of Australia
Austral

the

Chicago Investment

Federal

series

Group to Hear
Pennsylvania

FHLB Notes
Public

span,,

Several

New

Morgan Stanley Group

group

the ratios of per-share increases to invested
assets figures at the
start of the period, 1938 year-end.

National Union

dividends

have been paid since
July, 1935, and annual stock divi~t
dend.s of 3% commencing in 1951.

a per-share
basis, and the per-share figure-related,
per-share invested assets figure of each company/ at: the

operation is di¬
Louis
J.
Nicolaus,

among

curities

the

Louis

St.

rected

membership in
Exchange

York
is' a

New
firm

the

long

examine

we'

invested

of these and other: Chairman of the

$7,-

the

large net gams
values
decades, such as those of the American Fore
companies, Insurance Company of North America's, andiHome's;
And, on a percentage basis, there are a number; of large gains: in

(Chicago), Vice-Presi¬
Fred S. Kelly, Secretary(St. Louis); Albert A.
Hoffman, Jr. (Chicago), Joseph
A.
Nolan
(Chicago)., Frank T.
Cullen (Chicago), Assistant VicePresidents;
John
M.
Lancaster
(Chicago)
Assistant Vice-Presi¬

started in

laneous income of the corporation,

Treasurer

4. Consolidated

as~

start of the period. There are some
very
of assets in the two

dents;

Addressogtaph-Multigraph"; tion, of John W. Bunn, Vice-Pres-- seph! C., Zingrich
(St.
Louis)
Corp.; organized in; 1924 as am ident; to' become a member of A s sis tant Secretary-Assistant

rate*

been reduced to

Lawrence, Exchange Vice-President in Charge of Public Relations
Development.

general funds;
and; together with other cash re¬
sources, used to finance capital
additions
and
improvements to.
production facilities, expansion oil
domestic
and
foreign - sales and:
new

Exchange

and Market

will be added to. its

Of;

•

••

of companies : in, their, investment
operations, apart from underwriting, we* findrthat-thes is* wide.
; variation in their results.
There is presented; a- tabulation; thai;
first, shows the net increase in the value oi each company^ assets
for a 20-year period ended with?
1957; This increase'has then

(right),5 Vice-President of? Stifel; Nicolaus &
Company, Incorporated, receives congratulations upon becoming a

management of Smith,

Barney & Co.
Net proceeds received by- the:
corporation from sale of the shares

service

same*

•

matter for how

If.

7, 1958; The subscription price is;
$62.50 a share and the rights will
expire

at more-or-less the

grown

j
one prime factor in the matter is management. If
is not equipped with capable management ,its
.results,

company

Oct.i

have

Naturally,
a

stock:

common

record

will

Any 25-year decade in underwriting" is
if: only because in; that'
periods the

out well

come

general economy.

share for each

one

hekb of

sure

business

Corp.; Cleveland, Ohio, is offer-j
ing holders of its common stockthe right to subscribe - for 141,113 :

depression

of great severity^

year

STOCKS

BISHOPSGATE, LONDON, E.G2
London Branches

13 ST. JAMES'S SQUARE, S.W.1
54 PARLIAMENT STREET.&W.l
Bankers to the Government in : adbh,
kcnya,
ooanda, zanzibar a somalo.and nonCFOUAta

Branches In:
kd1a, pakistan, ceylon, burma, kenya,
tanganyika/ zanzibar, uganda/
ADEN, SOMAULAND PROTECIORATB,

Mwfcw NeniT—fcSt—RilBBfcBlt

120 BROADWAY, NEW

Telephone: BAnhf 7-850A>

Bell

Teletppe—tfT

Specialists

YORK. ft. IT.**
..

The Commercial and Financial Chronicle
50

Thursday, October 9, 1958

...

(1494)

consumption

instance, in early Imperial Rome
or
in Europe between 1525 and
1650. Such inflations seem, there¬

Continued from page

bureaucrats

and

soldiers

lost value, and as

became the

and

multiplied

favored classes of the

the urban masses, mainly
unemployed, had to be "bought
off"
with a "Welfare State in
kind" composed of free issues of
State,

fore, to spell prosperity at least to
the mass of consumers, at the cost
of a minority of former capital
the localities. And thus came the owners. They even transform the
Dark and Middle Ages of servi¬ nature of capital itself — for in¬
stance, making land and farms
tude and status.
more valuable
than tov/n houses
Paradoxes of Inflation
after the flight from the cities

pork, and entertainments.
The former governing class of the
cities—the senatorial class — re¬
tired to larger and larger estates
bread,

But there is a third
dom

"back

factor, sel¬

Roman

mentioned by economic his¬
It is the inherent paradox

torians.

land"

the

retired

later

the

Empire.
inflations

deliberate

these

But

this inflationary process: the more often in history seem to have
contradictory behaviour of all gov¬ spelled a secular decline; to have

ernments that persistently inflate.
One can say—of Imperial Rome
(latifundiaJ in the country, as the
and many another inflating gov¬
State's powers at the centre and
ernment—that such governments
in the cities grew. The State—in¬
undid as rapidly with their left
deed, the Emperors — came in¬
hands whatever they were trying
creasingly to depend upon the
to do with their right. They al¬
goodwill of the legions and the
votes of an idle rabble, both of ways attacked—nay, are still at¬
them bought by bigger depreda¬ tacking, after centuries—the sur¬
face
symptoms rather than the
tions on the enfeebled tax-paying
disease.
Such
was
Diocletian's
classes. As the unitary economic,
notorious Edictum de Pretvis of
defensive,
administrative
and
301 A. D. which made it a capital
legal territory of the Empire be¬
crime to raise prices anywhere in
gan to fall apart into feudal selfthe Empire, and left us (you can
sufficing civitates surrounding the
consult
it
in
the late Tenney
newly-walled cities, so an entire
civilization
fell
apart.
It dis¬ Frank's transcription) a sobering
standardization of all consumption
solved,from the terrible third
and capital goods, their qualities,
century onwards, into the dim
and their prices, throughout the
outlines of modern European na¬

spelled social

economic sta¬

and

tistics rather than dynamics.

They

certainly made some rapid social
changes, but not in the direction
of material betterment for society.
Rather the reverse: they ran so¬

technical

ress, a period of real social and
economic dynamics, you will more

Never

accelerated, accompanied
never
once
halted, by-the

and two Ceasars, could
have cut of fthe numbers of heads
that would have had to roll. Eco¬

was

and

pushing of. taxation
individuals—beyond what

progressive
•—upon

their

"value

Augusti

end, the State and the civil¬
ization dissolved into fragments,
not because- of barbarian inva¬
the

The

fallacy that you can

out

existence, out

of defensi/■

■

Power

con¬

prices, production and trade
bureaucrats persists — despite
testimony of M. Krushchev's
administrative reforms. But only

trol

the

State—today

in history—mere¬

places it with another; or favors

Politics and Inflation

Secondly, behind this remorse¬
less centralizing of all economic
and administrative life, was an
antecedent political cause. Politics
is concerned ultimately with the
exercise
of power over human

can

class of person by inflation,

new

over

a
all

permanent

—

other classes.

advantage

while

penalizing another; or, in
attempting to regulate all social
and economic life while persisting

Only

tale

from

one

Augustus to Honorius—indeed, to
email privileged "class"—the sen¬ the 17th century, and again in our
atorial—kept its former advan¬ own century—is sobering. It is a

tages pari passu, by "contracting-

tale

out" of its traditional task of gov¬

actions

ernment, and going "back to the
land": the forerunner of the class

centralized all economic life; tried
to control all prices, trade and

of feudal barons.

finances;

and

standards

•

Most taxpayers were urban; all
of them were a tiny; but econom¬

important and productive
minority; and, as their burdens
grew, the corps d'elite of decuriones merely preferred slavery,
flight, or the advent of the bar¬
barians.
This killed trade, com¬
merce, capital and cities. Outside
the cities, in the countryside, le¬
gionaries in their camps and the
biggest senatorial landlords
on
their latifundia were exempt from
ically

taxes.. So progressive debasement
of

the

tion to

and penal taxa¬
political power and

currency
secure

ments

were

ill-intentioned

govern¬
repre¬

their

Inflation and Social Dynamics
But there is

interesting rela¬

Politicians

the

had

cities

be¬

—

supply-area aroundv it — were;
rapidly and increasingly left with¬
out any curiae or local govern- '
The

reason

was

course

iorrpiiy arKj personally made

vro-o

responsible for finding the taxes.
Naturally, as the hugetax-burdens
for
ine •
top-heavy,
centralized
State
mounted,
the
individual
decurions

/'fled."

be reckoned with, hedged
against, evaded. They begin to
treat it as
a
weapon
aimed at

directly

whether

them,

That* is,

the

feudal

the \

c lite

decurion class;
bring in the
the - Western city

of the

city

French

months

few

-They even fled to the.
barbarians; and a, strong. Fifth
Column—as. we should? now say,
•—was formed from the educated
for they iptrigued to

the

ages.

slaves.

State

or
by the sellers, of goods
services. So Governments —

to the rich landlords
big rural estates-and; either'
became
their •/ colons s or
their;

of the

and
like

they

economics—today is committed ithe;i firsfcr.reaL com-)
mendationes, or voluntary personal
masses of people, in

ways

barbarians,, in

may

dynamics.

It does not seem, from the classic

inflations of history, that inflation
and economic
dynamics go to¬

On the contrary, such in¬
whatever

capital or wealth had been at that

and

back—can only borrow

flates.
In

this

as a

becomes

awareness

infla¬

built-in social institution

material

which

dynamics

and

social
technological ad¬
progress,

depend.

vances

The

inflating modern State, in
still faces the trilemma I

mentioned: it must abandon indi¬
vidual

social

and

is both

form

and

conserve

freedoms

capital fast
inflate; it must

new

freedoms

and

form

fast enough; or it must
abandon hopes of rapid material

capital

progress (new capital formation)
if it is both to inflate and con¬
serve

social

doms.

and

need

individual free¬

say

here

about the ways this trilemma pre¬
sents
itself
today, as between

and

her

satellites,

be«<
ber
tween all kinds of governments
and
their
citizens, as between
(say)
the
United • States
and
Britain, as between developed and
under-developed countries, as be¬
tween

general, the

inflation

not

the

out and

vote,

debtors

national

and

West,

creditors

both

international,
time accumulated, and thus gave between saving or investment
a
big boost to consumption—for the one hand and spending

as
on

and
old

parties seem unable
unwilling to halt a 20-year-

inflation.

Such

situation

dangerous, but symptomatic. Very
naturally it accords well with
inflationary Welfare State services
(concealed subsidies to personal
consumption), and the Socialists'
denigration of, and contempt for,
'-sound
money,"
profits,
"the

bankers," "the City," and manage¬
ment.

Here

social-politico-eco¬
of
a
long,
pro¬
gressive inflation a-plenty. Again
a
paradox
emerges.
Modern
are

nomic-effects

society

depends more and more
increasing productive capital

head.

Yet,

the

of
steadily
away
from
sound
money
and
voluntary savings and democratic
freedoms, towards more and more
force
and compulsion, exercised
through
a
new
oligarchy
of

per

name

welfare for all, we move

bureaucrats.

But,
at the same
time, Conservatives and Socialists
protest that they are both anti-

Communist, anti-totalitarian.

its

(Back to :Diocle?>
prices, s -with a:

example

decree

tian"s

vengeance!) To this the prefect of
the province; a certain iFlorentius,;
is said to have replied: PWill your
clemency be graciously pleased to
command what we are supposed
to do in the cases of those curiae
which

there

be found

many

The

longer to:

are
as

even

decurions?'':

three

outcome 5 was

simple. and,
accordingto
the
chronicler,- terse,. The emperor's
order

revoked

was

edict

Diocletian's
earlier.

like:

just

—

over

years

'?•

J::

from the Roman,

Those examples

because

both political

history, naturally, we do not
such
a
trilemma
until

witness

tween Russia and the

redistributed

Diocle-

crushing
that
entire
civitates
that is, not only the
walled city but the agricultural.
come

They; fled

Russia

call social and economic

decurions

servitudes

productive capi¬
society needs, the more in¬

tionship between deliberate, per¬
we

The burden of taxes on the

tian.

in Germany or Britain,

Now the more

sistent inflation and what

gether.

tb.e State, the centre, and took to

not

year

than his great predecessor

understand what infla¬
tion means. They begin to act on
the assumption that it must al¬
begin

When

enough

towards

and

Russia

tion

abandon inflation if it is both to

Inflation

least of paradoxes—in

that the reat

i-V.

debased

subjects..;';

flations

those

totalitarian

the

politics

the compara¬

measure

did

sentative, whether they were sel¬
or altruistic, whether well—

and disintegration

izing State. It was a vast paradox.
Power itself, ultimately, deserted

fish

support ended in the degradation

of the central¬

steadily
value.

Whether"

matter

which

governments

their right.

advantages
State,
the
bureaucracy, the trade unions, and
flation will drive the society onto
the
State-centralizing
political
a three-horned trilemma) either itparty (or parties), begin to fade;
will, have to
abandon' freedom
away. The end is in sight. Some-;
qnd secure savings forcibly, so
thing like this accounts for; the
long as inflation persists; or it
extraordinary, and (to politicians)
will have to abandon inflation to1
dismaying apathy, passivity, and
get the savings voluntarily in a
absenteeism during recent British
democratic
society;' or it
will
bye-elections. In Britain today, inr
have to slow down or abandon
consequence
of
inflation, - big"
economic progress and the neces¬
blocks of normally faithful Social¬
sary rate of formation- of capital,,
ist and anti-Socialist voters simply
if it remains democratic but in¬
.

tal

nullifying short,

contradictory,

with

Inflation

The

many

365 of. our era
the emperor Valentinian I faced
even a worse economic, fiscal and
administrative
set
of
problems

ment.

Not

with

manifestations.

is the parent of paradox.

inflation, runs the machinery modern times, when productive
government, the currency it¬ capital per head becomes greatself, and the entirety of social law and grows rapidly greater. But it
beings who are organized, by that and order headlong into a catas¬ is interesting to note the absolute
: j ;
power, in a society. Centralization trophe.
decline of standards, as inflation
of the State's power —f in almost
Such a situation" has occurred persisted. The supply of slaves—.
every walk of life—went on from in our lifetime in Germany twice the
ancient
equivalent of
our
the time of Augustus until the
(after the world wars); it has modern fixed assets and produc¬
collapse in the fifth century. It proceeded.far in France, where it tive capital—ran out. Capital con¬
could only be maintained, kept continues;
and
in
Britain
the sumption was hectic and general..
centralized, by a continual process pound sterling has lost nearly Mobile 'assets disappeared—par¬
of favoring, fiscally and financial¬ one-lialf of its purchasing power
ticularly the slaves, and even a
ly, the "power" which raised the in the 13 postwar years alone (and great number of the free citizens.
Emperors to, and always kept it continues there, too). It is idle And in more modern times, since
them on, the throne: that was, the for governments to imagine that inflation benefits all debtors and
such an inflationary situation— penal ists, creditors, the progres¬
army. Heavy taxes on a minority
of taxpayers, plus debasement of and all its social consequences—
sive inflation—inflation as a pol¬
the currency, gave the legions and are cured by letting the inflation
icy— militates against the very
the bureaucracy a temporary—in¬ continue,
while suppressing its process o^f capital-formation on

deed,

been

their left hands what they strive

Inflationary Trilemma

The

ly removes one symptom and re¬

quarters.

the

ments

economists would

and 19th centuries.

sions; indeed, the barbarians tried symptoms are removed, never the
to maintain the civilization they disease; like the lady who had her
double-chin removed by surgery,
admired; but because no one could
to discover it at the back of
be found to defend its integrity. only
The 100% totalitarian
That integrity: had been inflated her neck.
■bility.

there

have

all

}

Standards of Money and of Society

policy, the more do govern-persisting in it undo with that the decurions of the curiae

! f

Diocletian.

even

fast

inflations, putting
premiums on consump¬
tion, and such heavy penalties on
savings. The rule I discerned in
the inflations of history is clearly
observable
at
work
today: the
more inflation is now persisted in

nomic laws and human nature de¬

feated

such high

investment

comes

constabulary, under tw.o

diers and

judgments" were

prepared
to bear, through
ever-more-centralizing State.

been

simultaneously.

"district after another.
; ~
"long" by
i In
tive
attractions
of spending on pegging the bonds to gold; or em¬
despair, Valentinian:I—by no
immediate consumption or invest¬ ployers I and
employed ~ make means a -fool, and. a brave em-*
ing for an equally reliable future, bargains in the light of an al-; peror — decreed that the lictors
yield.
Such- lasting periods of ready-discounted rate of; future should bring him three heads of
material progress and
dynamic depreciation of the money, as in dec u r i o n s from each curia
advances were found in the 18th Britain. And so on.
* ; :.v "
throughout one ientire province,;
;

decree was
bankrupt and inap¬

plicable within two years. Not all
of
Diocletian's bureaucrats, sol¬

abandoned

world

the

capital

simultaneous

ekpect — when more and mote
new capital is
needed, when in¬
terest rates are high, when big

Yet that

underwear..

incomes

money

why it constitutes such a threat
a free society.

About

has

terially

and the Middle East. (The
very word "diocese" dates from
this time.) This process of disso¬
lution took two centures at least,
and some Shy three.

Never has it tried to progress ma¬

opportunities
exist,
when
money
seems
to
have
enough stability of purchasingpower in the present and future
to enable risks to be assessed and
then
known
civilized
world— incurred for calculable prices, and
tions* and into our present eccle¬
from chariots and horses to ladies' when
possessors
of money : in¬
siastical dioceses in Western Eu-

Tope

fixed

Never

short

and material prog¬

often find it—as

raise

and cannot.

ciety down, tore it apart. And the
converse of this is that if you look
for

the other, as be-,

their earnings and those who have

Inflation—Past: Present: Fntue
money

tween all who still work and

world—and

many

can

find in the medieval and Renais-'

world

sauce

and

thereafter—em-'

phasize our dependence today on
the
long-run- reliability 1 of- a
standard

little

of value.

the

was

Consider: how

capital,

real

the

productive durable goods, of the;
ancient
and
medieval1-world,
right up to the last century. The
horse

the

was

locomotion

least

only
until

local
this

means

century,

by land,, Yet in the last'

58 years we

in. the-West1—who ac¬

count even now for

only one-sixth

mankind, and only one-quarter

its

include

Soviet

European satellites

virtually
world.

all

There

the

Russia
—

and

possess

capital of the
productive

is little

capital south of the equator. Yet
we,
like
the
underdeveloped
world, demand more capital; we
invent more opportunities for its
use;
and in so doing—and in¬
flating meanwhile — make the
worldwide
shortage
of
capital
Worse.

The Inflationary. Challenge to

Cprtteipporary Society \ ,r
only progress
Never-in- human history have
compulsion of a
monolithic State apparatus—if all these three trends coincided as
the mobility of capital and labor,; they now do: ^ - r
*
of saving and spending, we can
(1) The lengthening of the ex¬
enjoy. is what that State will pectation : of; individual lives at
allow us—and if all of this ap¬
birth by applications of medical
paratus is clamped down on us science all over the
globe, simul¬
because of the attempts of the
taneously;
inflating State to cover up symp¬
(2) The simultaneous demands
toms rather than to cure a disease
all over ;the globe, due to tech¬
—then we ought to look far more
nical progress in communications
closely to the disease. itself. And
etcetera, 1 fori: rapid increases in
we ought to begin by asking the
productive capital assets per man;'
old, old question Cui bono? When
and
does inflation benefit? And, as of
(3) The simultaneous demands
old, the answer will come back:
all over the globe, for those and
the State itself, the bureaucracy,
other reasons, for equally rapid
the Government, the political set¬
increases in consumption of con¬
up—not even those who work as
sumer goods per man.
against those who do not. Inflation
Hitherto in historj'—even in the
is lazy, timid, Government.
That
■

Surely if

materially

can

Volume 188

Number 5784

The Commercial and Financial Chronicle

...

<1*95)

history
of
the relatively slow need to emphasize here the in¬
inflation in Western Europe flow-' justices — even more, the wastes
ing from the import of the New and inefficiencies—of such rapid
1: World's; precious
as
we
have .had
In
metals in the inflation
sixteenth century—the effects of Europe
and
America since
the

cisely the

inflation,
(e.g.

even

fairly rapid

war:

the

Germany,Hungary,

able

nation

confined

society

immediately affected. But that has
manifestly not been true since the
last

Some national inflations

war.

been faster than

have

Britain faster

call indexisatioh

now

Ger-

their property ahd their

ing

you

internal

.more

and

can

classes;
even

Russia)

benefit

arena

sians)

in the domestic.

;

withouf

legionaires

are

calls 7 "the
brought; munism
workers,"
control—by which I mean whose votes put democratic Gov¬

matter of national and inter-

ernments

governmental

trative

and

Nor, indeed, is
sign that democratic

will

ougpt

teach

earnings
productive minority.

situation

between
before

•-

both

long;

and

explosive7 economic

this

economic progress depends. A de¬

nations

lightful, hectic, mass-consumption
seems like a
dynamic prosperity.

such

situation

'First there
I

are the
mentioned

have

three factors

as
being at
all over the globe today—
namely, rapidly growing populations
and - lengthening
lives,

vwork
'

rapidly growing demands for

;;

demands

for

goods

consumer

the

standard

value

and

enemies

and

"West,

the

J7endemic and progressive. 7
-" - - •
^ v Thirdly, at the rates we have

"clocked-up, in the leading indus•

trial-nations
r

the West

past 13 years alone, such

^ tion puts
•;

premium

the

infla-

on consump-

and

cure

of the

inflation

Fourthly,

being

worldwide

;

among us in the West, this inflation is almost unsusceptible of

penalize

saving—is scarcely
perceived, let alone pub¬

ever

national

cal and administrative institutions

—particularly in economic affairs
—render it well nigh unthinkable

!
•

;

i
i

that
end
of

international agreement to

inflation, by due stabilizations
monetary supplies, could be

reached.

;

Fifthly, our technological
progress has become so rapid and
internationally all-embracing that
scarcely one nation among us-—
and

certainly

d.ustrial
of the

•

politi-;

•

our

control, while

not

leading

nation—can

in-

contract-ouf

inflationary circumstances.

Labor

easier

seems

—to

and

classes

who

out of

high taxes and inflation, to
let the long-run reliability of the
standard
to

value

plaster-over

social

diminish,

and

cracks in the

any

fabric

(e.g.
injustice
to
holders ^of
Govern¬

pensioners,
ment

bonds, etc.) by belated and
palliatives.

random

Inflation
If
can

the

social
as

mutandis

all

the

can

Policy

(on balance) emerged after

.But the net

ductivity.
from

until

find

mutatis

every

now.

But

now

them
cosmic scale. I

has

the

i.e.

been

redistribution

rise

hend'

policy).' The parallels with what
happened to societies in history,
with what

is happening be¬
under-developed and
the highly industrialized nations
on

the

our

side

own

the

Iron

disquieting.

are

Stable Prices and Stable Societies

Socialism

which

in the light of the trends

have

mentioned, what

real needs—inside
free

societies

between

all

our

are

our

still largely

the

West

and

them?

First, a
standard of value reliable enough
in the fairly long run to permit
calculations
courage

saving

Secondly,

risks

and

en¬

investment.

agreed international

system
ments

ers

and lenders

and

can

calculate risks

rewards in reliable monetary

terms, i.e. in reliable real

see

And

thirdly,

not

tion

that

the

simply

terms.

far wider recogni¬
Russians face pre¬

New

President of

Conclusion

new record.

single

have

tried

show

that

on June
17, 1958 When h total
$4,578,000,000 was Oleared. '; (

also

reported that the
delivery service' to the
Clearing House for incoming air¬
mail and air express shipments
consigned to member banks froan
correspondent banks, initiated
was

three years
ago,
handled OVer
263,000 pieces of airmail and 'Air
express during the year, an aver¬
age
of over 722,000 pieces .per

month.

Banking
Legislation

Recommended

little

political

much

due

Gray, Ch a to¬

But

cowardice or ineptitude
ignorance of causes.

most

rupted,

cases

progressive

uninter-

and

rapid

also

reported

that the

studying the Banking

Law Of the State of New York at
the

request of

the

Joint Legis¬

lative Committee and the

the

Super-

1958 legislative session 33

recommendations and 20 had -been

ol the

study,
now
substdhtisdly
completed, has had h total df 68
of

its

recommendations

bdcdlhe

law.

Board, The
H

Bank,

was
elected Chair-

ftian
noward

sneperd

mun„nn

C 1 e

a r

' ^
wil

Secretary

elected

Association.

the
v

••

The Committees elected to hold
office during the next fiscal year
are as

Johnson to AHend

World Bank Mooting

the
i

sheer

not

was

signed by the Governor. This two-

rn an

civilization came down in ruins,
and on the ruins little Was built

was

committees

year

William S.

social

dynamics, came.
In
some
cases,
especially that of
Rome, the entire social fabric and

tion.
the

working-out of inflations in his¬
tory caused big social changes and
injustices, from which however
little if any real economic progress

The record

day's olearings twas

the Associa¬

daily clearings
$2,492,009,060 Wh&h

average

centralized

York,

was re-elected

spells

social collapse into totalitarianism.

follows:

MILWAUKEE, Wis.—Joseph T.
Johnson, President of The Mil-waukee Company, will ^attend the
13th annual meeting of the board
o

governors
the Inter¬

national Bank

for

Recon¬

struction

and

Development

from Rome to GerClearing House Committee: Wil- Oct. 6-10 in
—the causes were appre- liam S. Gray, Chairman of the NewDelhi,
ciated, the inflation became policy, Board, The Hanover Bank; George India, as a
and
the government utilized it C.
Textor, President, The Marine personal guest
for
purposes of politics,
i.e. of Midland Trust Company of New of Eugene R.
power. The ends of such policy- York; Eugene S.
Hooper, Presi- Black, Presi¬
inflations
were
socially
cata- dent, Manufacturers Trust Com- dent.
Mr. Johnson
clysmic
and
their
outcomes pany; George Champion, Presi-

inflations

—

many

unplanned,
faces

though

such

Some

Yet,

those

support

nor

tion

com¬

heads, report ott favorable
legislative response to recom¬
mended banking laws, and regis¬
tration of a new high in clearing*
for 6th successive year, mark
principal items oil the agenda of
the 105th annual meeting of N.Y.
Clearing House Association.

compre- '

paratively static national income
from one group or groups in favor
of
others, by way of taxation
(positive Government policy) and
inflation
(negative
Government

tween

neither

can

erf "The WSw

high in

is also
for
set

tee

are

derived

pro¬

Vice-President

year a
clearings 'has tseen
-The 'clearings for the
year Were
$628 'billion, ah in¬
crease of $54 billion over last year.

Election of officers mod commit¬

many

In a few cases—
that, of -sixteenth-century Spain
-the continuation of steady infla-

from

work—under which both borrow¬

society which
has suffered it, from the ancient
world

from

head,

per

inflation,

tarianism.

for 1,000 years.

derived

output

that too

intellectuals

tive

been

symptoms

Western

our

—
facilitated by govern¬
positively, or negatively by
their allowing a natural system to

today

disease

one

Social

around

recognize

such
.

look

the bene¬

contrasted with Com¬
seems

advantage to those
newly privileged classes has not

.=•

"doing well"

are

those 13 years with a net advance
of 25% in-real income, per head.

Curtain,

last

ficiaries of the Welfare State, and
trade
members
union
Who

have

the "antique Roman" manner
buy the votes of those groups

the

and

democracies

Party's voters

And
sixth
and
lastly, in the
light of all these ingredients of
the mixture, it remains difficult
to damp down inflation politically;

copy

Inflation

has heavily advantaged the

years

consumption

encourage

tion and militates against the very licized.'

J-saving which is the

mously

(Hearing

crossing to the Russian side of the
At the 105th Annual Meeting of
street just when Russian intellec»pbe New York Clearing House
tuals, having trodden it long and Association held Oct.
2, Howard
painfully enough, have started to c
sheperd,
Chairman
of the
cross to ours. I
can
comprehend,
'
Rnarrt
Th#>
though not support, the economies
'
First National
and -politics
of a
100%
totali¬
City Bank of

and

individuals, and more foreign
lending by Britain, and so on. The
illogicality of all these British
Socialist policies — which enor¬

Socialism
munism.
of

a continuation of a steady 3 to 5 %
inflation ' as a matter of policy,
because nowhere is
and
higher taxation on individ¬
sufficient real saving either en¬
uals and business, and more sav¬
couraged (voluntarily) or enforced
(as in Russia), a consequent ill- ing and investment by companies

House Association

attempting to get much the
results by totali¬
controls, force, blood and
iron. If you try to straddle the
two, you Will only get an in¬
efficient, static, collectivist Catas¬
trophe: . Which
is
how
I
see

Secondly,

persists

disaster,
mind, is the lesson
all such Inflations in history,
J
to

Head of H. Y.

same-economic

unions, have been loudly demand¬
ing at one and the same moment

High in Clearings

—

The

tarian

New

According to the report sub¬
mitted by Paul R. Fitchen, Exeeti-

amounted to

between

York; and Donald M.
President, The Batik Of New YdHc.

recorded.

free ecOhomy^ahd, on the other

everywhere

^flation

open

York; Hoyt
President, United
Trust Company of New

new

hand

•

choice

i d 0 n,

m m

States

That,
of

mind there is precious

little

our

approximate.

Bank of New

above all, unforeseen

being democratically reasonable—
that is/ securing sound money, and

accountancy is more carefully (if
forcibly) safeguarded—just as,M in
totalitarian States too, the produc¬
tive minority is relatively much
better rewarded. Thus

economic

progress.

The British Labor Party and
pro- >
its financial supporters, the trade

ductive-(or investment) ■ capital,
and
equally
rapidly
growing

democracies.

marks

which

tional

the prerequisites of a stable and
dynamic society and of economic

dictatorships, paradoxically
enough, the long-run reliability

'mean

some
pretty
explosive
political situations. Consider; the
ingredients of-the mixture.*
' ~

this

All

unheavals

Co.
Incorporated; Ralph
Stillman, President, Grace Na¬

sociai policy, ends in unplanned, and seven
clearing non-members.
unwanted, but inescapable-and!
For the sixth successive

through, show
calculability,monetary dependability, and the reliability of standards of value are
that

an-

one, I think they will
brinS about the social and

i?eU

rulers

new

What do

our

abrupt> and uncontrollable! branches, in addition to the fed¬
pianned, progressive inflation, as eral Reserve Hank of New York

the last few years, after

ViSS iS
-Sn pe?£*
have been

and

the contemporary world must also

eco¬

pre-

within

1 Western

our

very

of
So

class of governors is
born, at the cost of the providers
of that productive capital whereon

Accordingly we must be
for some explosive

nomic

Russia

with 7 the

Admissions:

both in history, York Clearing House
Association,
possibilities in the not-too- there are 14 member banks in
long-run future —as cataclysmic, the Association having 465

ev?n the political—upheavals in

privileged

pared

•

these *" votes

property

tllil.

buy

between

difficult.

masses

and

democracies strive

our

proceeds of "repetitive raids bn the

representative governments
try to control it in the long

■

parties in

control.

there! much
'

adminis¬

cooperation
so

the

international

national

;

makes

democracies

bave described

l£sso?our own^electorates?
Surely lhe social,
administrative

Political

out.

Surely

Committee

implications are George A. Murphy, Prfesiddht,
democracy difficult Irving Trust
Company; H. P,
politically, in one country; Davison, Presidefit, J. P. Morgan

emes^prmleged
taionary
enter-

the part of the mass of consumers.

that it will be politically
under

New York Trust

practical

new

and some Tpretty drastic
toOing-without of consumption on

of
what Com¬

The

makes

to run,

and

prisers,

modern/ equivalents

Roman

Those

what

soon

The

domestic and international affairs,

or a

reliability

totalitarian empire of/
If> in fear of taking the difficuit
client-States (like that of the Rusch0ice
they take the easier in-*-

steady
and progressive. Nor, I
submit to you, is there much sign

long-run

standards of value,

citizens, and
existence; their competing political leaders;
privileged really want? This challenge must
but you Cannot develop be repeatedly and publicly put
totalitarian
State
(like before them.
v

interest, the absurdity of demand¬

factors I have mentioned has been

restore

our

the practical implications-of such President,
rationality and reliability in both Company.

inflate and expropriate former
elites and privileged groups Out of

inter-'
many, * Switzerland,
the United' national lending in the light of
what has been happening to recent
States, Canada, Venezuela.v But
throughout
the
trading lenders, and the pervasive dis-'
world on Our Western side of the trust of all money in economic
; Iron Curtain, the inflation
flowing transactions. These phenomena are
evident
in
the
international
7 from the simultaneity of the three as
''

can

for State and other loans at fixed

Britain; that of

than those

the

necessitated

the French

others; for
instance, that of France has been
faster thart that of

replac.VnS old with more
and better capital, and so on.
by govern¬
Surely it is time we proclaimed
ments unable to arrest (but will¬ the
economic lesson of inflatiohs
ing to mask the symptoms of)e in history, and Of Russia's ecOinflation, the significant emer-. nomic 'development these past *40
gence of "gold clauses" and what years.
That lessen is this: you
izations

less

pillaging
per
contra
pi
creditors, the bureaucratic central¬

France, between the wars), have
been

—to

Sharp, President, Guaranty Trust
Company of New York; Alex TBI.
getting^the savings, raising the
True
if we 'take the 'latter Ardrey, President, ■Bankers Trust
productive efficiency, investing in
choice, our peoples and their Company; Harold H. Hehn,Cteirunder-developed territories, raisgovernments,
groupings,
vested man, Chemical Corn Bxbhiuige
the advantaging Of debtors/ ing people s consumption, writinginterests, etc., will have to bear Bank; and Hulbert S. Aldrich,

_cne

economic problems
West: namely,

same

.all

trading

West.

reasons

cannot

moment—I

choice,
The

deeply

think

choice

dent, The Chase Manhattan Bank;

fear, and

wnrld p* +v,e
into Which I

not

now-inter-

the

dependent
For

predictable.

prospect,

still

seems

mis

face

deterministic

fate.
to

between
an
unplanned,
really
unwanted, but nevertheless inescapable social cataclysm, caused

deliberate

noint

point
of

of
ot

tolpration
toleiation

taxpayers,

and,

prolongation

inflation

progressive

the

the other,

reasonable

beyond

our

one

classes
classes

hand;

reasoned

agreements

and between

all
all

—

of
the

and

within

Albert

Simmonds,

Jr.,

Chairman of the Board, The Bank

has

attended

annual
meeting of the
every

Joseph

T. Johnson

international

of New York.

body, known more commonly as
Benjathe World Bank, since it was or¬
min
strong,
Chairman
of
the,
ganized in 1945 as an instrument
Board, United States Trust Corn- of the United Nations.
pany
0f New York; Robert E.
McNeill, Jr., President, The HanForm Investors Guaranty
over
Bank;
Isaac B.
Grainger,
(Special to The Financial Chronicle)
1
president, Ch e m i c a 1 Corn Exchange Bank; James S. RockeBEVERLY HILLS, Calif. —In¬
feller, President, The First vestors Guaranty, Inc. has been
Conference

Committee:

National City Bank of New York;
and William H. Moore, Chairman
the

Bankers

Trust

company.
West, Chairman of the Board,

leading countries Irving

Trust

Company;

Dale

with offices at 339 North

Canon Drive to engage In a secur¬
ities

business.

Officers

are

Her¬

Wilstein, President; Richard
A. Ryan, Vice-President; "and Willard D. Horwich, Secretary-Treas-

man

Nominating Committee: Richard
h.

formed

surer.

Financial Chronicle

The Commercial and

Thursday, October 9, 1958

...

(1496)
may I
express is my studied personal opinion
view born out of years that our foreign policy and our
States economy will be
of banking experience, plus five United
stan, Peru,
and a half years of active partici¬ strengthened by the maintenance
Viet-Nam.
of a strong, active Export-Import
pation at the Department of State
Ex-Import-Bank's Future?
and in the Export-Import Bank Bank, with its record of more than
Now. the final question (I be¬
in the international trade field. It 24 years of accomplishment.
lieve it is no longer popular to
refer to the $64,000 question)—
what of the future? I only wish
Continued from page 16
I could answer this question with

;v.

Operation and the Future
Oi the Export-Import Bank

The

own

Nationalist

Korea,

concluding,

India,
Italy,
China, Paki¬
Philippines, Turkey,

Iceland,

Greece.

Continued from page

candor and assurance,
cannot. . . .
ago
the present
,
6,164 Administration decided that the
3,123 United States position should be:
(1)
that if a foreign borrower
1,424 wanted to buy in the United
3,040 States market he could come to effectively the purposes for which loans for such basic facilities as
roads, harbors, railroads and mul¬
the Export-Import Bank for his it was created.
tipurpose dams is 3^2% and matu¬
financing; (2) if a foreign bor¬
Loans to Date
rities can be up to 40 years, de¬
4,465 rower wanted to buy in the in¬
Now as to the operations of the pending in part on the useful life
ternational field, the natural place
for him to go Would be to the In¬ Fund. As of Sept. 6 we had exe¬ of the project. When repayment
complete

work

plus a

one man,

same

-j

Disbursed on loans

A j

334

Participation by otheis
Credits expired unutilized-

by the
secretary.

carried

still

recommendation of the Ad-

Payments received on loans
undisbursed loan authori-

yarding the Bank's activities was
welcomed by the Director,
ficers and staff.
;.y

0utstnnd^fi^ns^^Z

The

Committee with refeience
disseminating information le-

visory

zatjons

Totaj undisbursed loan au-

mer

out-

and

thorizations

cooperation of a forPresident of the Export-Imthe

With

standing loans—

—

■Earlier men il0*}™asmade of
the changes lm operations or l
federal Reserve Board, a series of the trends in the financial field,
meetings was held in ten Federal For example, the exporter ciedit
Reserve Banks and branches.
program has been developed in
For these meetings, which were
lts entirety since four y a ag .
all-day affairs, we took a fiveThen there has been a marked
team of Directors and of- increase in the Bank s activity in
ficers.
We
encouraged the at- the private sector. During the past
tendance of private bankers and 24 /?'
years, 72/0 of the ^tlai
their clients interested in the ex- value of loans made by the Bank
port field. At most of these meet- were granted to governments oi
ings it was customary to meet government agencies, and 28 /c to
port Bank, William - McChesney.
Martin,
now
Chairman of the

man

also with Chambers of Commerce,

Clubs,

Exporter

World Trade

crouns

"u-i-

119690854

addition

nit

*b|,se all-day

zneetmgs held in tne Federal Reserve Districts, the Bank s Direc-

private enterprise.

Dimng the past fiscayear 45%

of the dollar value of loans were
granted to governments or government agencies and 55% to pri^

enterprise,

Three

years

agreements

loan

official

cuted

ternational Bank for Reconstruc¬

In addi¬
nancing; and (3) the United States tion we had approved additional
Director on the International Bank loans for which agreements will
for Reconstruction and Develop¬ be signed subsequently amounting
ment
and
the
wholly-owned to $205.9 million. In total, there¬
United States Export-Import Bank fore, we have executed
or ap¬
should coordinate their loaning in proved loans totalling $313.4 mil¬
lion.
We
are
proceeding at a pace
a
manner any
two banks would

his fi¬ totalling $107.5 million.

tion and Development for

dealing

when

with

which

common

leads

will

borrower.

have

that

estimate

is to be made in local currency, a
maintenance of value

required.
On

The 1loans, made by the Bank
throughout its .lifetime, by nunaencal count, indicate that 77 w
were made to or for the benefit
of private enterprise. During the
fiscal year just ended this figure
was increased to 85/c by number

the United States Government are

development loan field, which in

not static.

turn results in literally hundreds
of orders being placed with sup-

Looks

Record

the

Now the

questions are: (1) Has
activity paid off; and (2)

this

"What about the future? To borrow

from

phrase

New

famous

the

throughout

pliers

United

States,

These figures do not include

borrowers,
the

the

^payment in Foreign Currency
Another innovation in the

Bank's activities has resulted from
all Congressional action known as

exporters,

financing

participation bv
or the additional

private

banks.

t
Public
^aw 480 whereby the Export-Im port Bank-may receive lor loans
® private enterprise up to 25%
Proceeds, *n foreign cur-

must estimate the effect these

one

ioans have

our

Stockholders

management

U. S. economy.
„■»

„

the frank

usually

the

ask

question:

Are you making any money? Here

again is the six-year record:
won

i ncp

•nent for 24 years of all

losses

and

tlo?e
exoenle

ffiYo^owfd

with

Loan Criteria

other

agencies
.
.
(and
these loans, which to a
extent
will
supplement
grants, will be repayable

lending

that),

large
earlier

in local currencies as well as dol¬
,

Yorker, ''Lets look at the record."

the additional dollars spent by the

operation

„

Following the enactment of this
legislation commodity sales have
been consummated by the U. S.

Department of Agriculture with
23 countries. The first loans un£?r •this P"*""11 were made in

'^rVpUcahonslof^ans

written,
of

named as

was

The

day

1958- There! ore.Tnaddmonto the

policy of many years

been received from Mexico. Israel,

news

leport

business

the

over

Banks

the

w._

No. Of Credits
and Allocations
Authorized

Finland,

have

You

reports

the

have

Fund

nance

also

announced

for

the

Export-Import

read

that proposals will

refer

' undoubtedly

will

generally

credit

reversing
standing.

that

not fi¬

exporters,

proposals

such

Bank;

depending

51/2%,

the

current interest rate in the United

amortization periods vary
depending on the nature of the
States;

project.
Ex-Im Bank and IBRD

There

seems

to be

little

fusion in the minds of some
as

con¬

people

and poli¬
Development Loan

to how the operations

cies

the

Fund differ from those of the Ex¬

port-Import Bank and the Inter¬
national Bank for Reconstruction
and Development. I

will try briefly

matter.

to clarify the

The Export-Import Bank,
like
is

the Development Loan

which
Fund

of the United States

agency

Government, makes loans in dol¬

lars, repayable in dollars. One of
the principal functions of the Ex¬
port-Import Bank is the financ¬
ing of American exports. Conse¬
quently,

procurement under its
generally been from

has

loans

United States sources.

Loan

Development

Fund

makes loans in dollars but repay¬
ment may
sary,

ment

be made, where neces¬
in local currencies. Procure¬
under DLF loans can be

that it

the

borrowing
member

quotas of
countries.

various

The

exchange ot letters between

$571.0*

250.4

tary Anderson, which dealt with

488.2

this

19o6

162

375.9

1907

206

1,066.0**

302

855.6

President Eisenhower

and

Secre¬

is to help the

economies

less

the

developed

in a manner that will
give positive support to the for¬
eign policies of the United States.
areas

to grow

The International

construction
which is

Ban& for Re¬
Development,

and

international institu¬

tion, makes loans in dollars and
in other hard currencies, repay¬
able in those currencies. On loans
made to

nongovernmental organi¬

zations, the IBRD requires a guar¬
antee from the local government.
The

refunding or refinancing.

procedure necessary or advisable,
accept repayment in soft local cur¬

A low

meetings of the In¬ priority will be given to service
ternational Monetary Fund and industries, to industries of a less
nature, and to those
the International Bank for Recon¬ essential
struction and Development to in¬ which do not earn or save foreign
the

primary function

normally will not consider financ¬
ing working capital loans, or pro¬
posal which are essentially for

at the annual

exchange.
I

would

may,

where

rencies.

mental
does not
ernment

emphasize

other hand,
dollars, and
considers such a

on the
loans only in

DLF,

makes

to nongovern¬

loans

the DLF
necessarily require a gov¬

organizations,

guarantee.

this

point that the Fund is par¬
ticularly interested in strengthen¬

Importance

of Trade

Opportunities

$75'8
66.6

l.i

$23-°

$22.5

28.1

22.5

34.9

85.8

1.2

25.5

22.5

36.6

85.5

1.5

23.9

22.5

37.6

In my opinion the philosophy
ing private enterprise in the less
developed areas. Accordingly, it which led to the creation of the
It would most certainly be im¬ encourages applications from pri¬ Development Loan Fund is sound,
and I am confident that the op¬
prudent for me to comment on vate borrowers, seeks to stimulate
erations of the Fund will benefit
any of these decisions, which are participation of private investors,
not
only underdeveloped countries
in
the
formative
or
discussion and provides loan funds for the
stage, and which will in the final construction of the power, trans-) throughout the world but also the
United States.
However, we all
port
and
other
public
facilities
on
analysis require Congressional ac¬
which the successful functioning realize that loans alone, although
tion.
of private industrial and agricul¬ important and essential, will not
All I can say is that the future
tural enterprise depends.
It ex¬ by themselves solve all the eco¬
of the Export-Import Bank and
nomic problems of the world and
its operations could most certainly pects that private investors who
seek financing will contribute a particularly the problems faced by
be affected unless certain safe¬
reasonable amount from their own the underdeveloped countries.
guards are written into the pro¬
resources to the funds required for
In addition to loans to help pay
visions of the charters of these

85.4

1.7

23.2

22.5

38.0

various

101.3

2.1

30.2

22.5

44.1

and if created.

^Includes SSOO

million

credit

'Includes $500 million

credit

to United

Gross

Income

Adminis,
Expense

Brazil.

Kingdom.

Interest
Paid to U.S.
Treasury

by the Battle Act.

will

—

reasonable terms.

but

be made in New Delhi next month

crease

Credits
Authorized

able from other free world sources

(In Millions)

xear

1958

already

terms on
Current interest
loans range from

such

for

The

support

Countries

*2^a'

*957-

have

following countries:
Ceylon,
Ecuador,

*ear

12=5

would

States

Latin American bank,

France and Colombia, the Bank is

Fiscal

l9rP3.

24-. currently
receiving applications
the for loans in the currencies of the

> ear period at the close of
fiscal \ear this past June 30th
eummarized as follows:

United

amOJnted t0 848' applications that

brief

volume

848"

terminated

of the

Under-Secre¬

U%eT?eat'ya™umed
million

member

tary of State Dillon informed the
Executive Council of the Organi¬
zation of American States that the

rrere

earning

teria:

(e) There must be a reasonable
This past month President Eisen¬ prospect for repayment.
(f) The proposal must be one
hower, in his historic speech be¬
fore the United Nations, announced which will assist free peoples, and
the country involved must not be
the United States would support
engaged in shipments proscribed
a Middle East Development Fund.

of Directors

Board

the

for several years after
822,500,000 annually on the
Bank's capital stock of SI billion,

31s^
*iUcolomhian

The President of the Export- nomic growth.
made
from
free
world
sources
(c) It must be economically other than the United States. In
Import Bank was placed on the
the DLF we are vitally interested
original three-man Loan Commit¬ sound and technically feasible.
tee and when the law was re¬
(d) Financing must not be avail¬ in American foreign trade, but our

money and

Mav

looking at each of

proposals before the Fund in
of the following basic cri¬

the

terms

The
(a) The proposed activity must
Federal Budget in Brief, as sub¬ be located in one of the less de¬
mitted by President Eisenhower veloped countries of the world.
to the Congress on Jan. 23, 1958.
(b) It must contribute to eco¬

paying

Israeli'urands

now

are

This quotation is from

lars."

rencies, °f sales of surplus agnDevelopment Loan Fund.
cultural commodities.
^

rates

additional

the International loan applications on hand amount¬
Monetary Fund has been, I be¬ ing to approximately $1,600,000,By the end of this calendar
lieve I am safe in saying, excel¬ 000.
dozens of programs from coast to
year we will probably have re¬
lent.
coast.
This effort to eduoate the
ceived upwards of $500 million
public about the operation of the
A year ago Congress authorized
more.
Under the circumstances,
Export-Import Bank is a neverthe Development Loan Fund as
with the tremendous volume of
ending task for various and obvirequested
by
Secretary Dulles.
ous reasons.
New men and addiloans Jn the private sector,
The Directors of the Export-Im¬ applications on hand together with
tional firms are constantly enterThese figures of course indicate port Bank supported the request our accelerating ability to process
them, I feel we should be prepared
ing the international trade field the increase in exporter credits, of
the
Secretary.
It
was
our
to handle a larger volume of lendj
and the scope of the Bank's ac- It is clear that a large percentage
thought then and now that the
tivities and policies is also subject of credits by number are in the Fund was organized "to help meet ing by the Development Loan
to change.
It should be empha- private sector, but it is equally urgent needs for economic devel¬ Fund in future years, probably in
the order of $1 billion per year.
sized also that the loaning pol- clear that a large percentage of
opment in less developed coun¬
icies of the various agencies of dollar volume originates in the tries that cannot be financed by

tors, officers and top-flight staff
men
have appeared on literally

profit

similar projects.

committed most of

At this time we have

of dollars, the co¬

for

loans

low Export-Import Bank

our

shortage

provision is

projects, such as manufacturing or
extractive enterprises, interest
rates and maturity generally fol¬

capital, including the addi¬
plan,
I must
say,
has
capital recently received,
worked out well, with increased tional
cooperation evident on both sides. within a few months time and we
will probably be obliged to ask
And
at
all
times, and
more
Congress
for
additional
funds
especially during this period of
early in the coming year.
financial
stress with its world¬
This

wide

„

riil

but frankly, I

Dividends
Paid to U. S.
Treasury

Net
Added to
Reserve

(In Millions)

$29.0
'

subject, was published in full.

organizations .when,

as,

the

new

investment.

Currently, the interest rate on

the cost of needed capital equip¬
ment for essential

public services,

Volume 188

Number 5784

industries

and for

The Commercial and Financial Chronicle

...

produce

es¬

sential

The

it.

less

extensively

expanded

with other countries.

opinion, sufficient impor¬

has

tance

not

attached

been

this

extremely important factor.
Economic stability and" adequate
of

standards

living will not be
possible until the less developed
countries not only have the capi¬
needed

tal

for

least

essential

developed countries
effectively and the
efficiently far

absorb

goods, to save or produce
foreign exchange and also to pro¬
vide employment,
the underde¬
veloped countries also must have
the
opportunity to trade more

can.

Fund

lend

can

than is available

less the

of the

resources

ment Loan Fund

to it. -Urn-

the next

Congress,

the Fund will not be in
to

position
carry out the pur¬

effectively
for

poses

which

the

created.

asked

afford

was

frequently

tion—can

Develop¬

substantially

are

it,

ques¬

(1497)

afford not to offer to the less de¬

veloped

thought

*'i

•

the

Public

economies

and

from

away

By OWEN ELY

Bloc.
In the last

Fund is

invest¬

in the

economic and politi¬
security of the United States;

not

are

unable

and

now

afford

must

such

and

means

finding

developing
of

production

vestment.

adequately
veloped

the

advance

countries

Training

less

de¬

the

skills

many

needed
for the
operation of a
dynamic
economy
is
also
ur¬
gently
required.
Through
its

Technical
and also

Assistance

programs

through contributions to

with

speak

can

about

the

great

many

Life

conviction

case

advantages that

ings

Insurance

Department

Bank.

insurance
written
which

contracts

are

the

tact with

later.

day

being

some

until

the

During

this

will have constant

con-r

bank,
mature

not

2000

year

business

will

period

Every

customers.

new

We will

receive

premiums

trustees of

will

and

increasing re¬
serve of savings.
A Straight Life
Insurance Policy issued today on
a

born

new

ever

child will

mature

Assistance
United

Yes,

but it

Life

insurance

Nations

Technical

Administration, the
is playing a major
role in helping to improve skills
and techniques in a wide variety
of fields ranging from agriculture
and industry to health and public
States

administration.

But much

required to bring about the
changes in attitudes and compe¬
tence

which

significant growth
demonstrating its
adaptability and drive

depends.

initiative,

in the establishment and

success¬

ful operation of enterprise abroad,
American industry can
make a

contribution

substantial

this

direction.
In

discussing the Development

Loan Fund I may have seemed to

ramble far and wide.
in

for

order

I have done

provide
major points

few

to leave with

setting
would

They

you.

are

follows:

whether

their

economies

are

going to expand or whether they
ought to expand. These people are
the

march.

The

associations

tematic
we

can

only question

our

whom.

(2)

its own economic and
interest the U. S. has
accepted the role, thrust inevi¬
tably upon it by its pre-eminent
industrial position, of providing a
significant amount of the capital
In

political

which

will

enable

the

countries

to grow within the framework of
democratic
internal
institutions
and

association

with

the

free

world.

(3) In the Development Loan
Fund, the United States now has
a
going institution prepared to
support sound
tivities

developmental

ac¬

businesslike terms and

stimulate

and

point.
long term
develops
sys¬
the

and

savings.

don't

believe

escape the conclusion that
Insurance
Departments
savings banks bring many,

before the job of catching up be¬
comes
too great.
The new Life
Insurance

Bank

has

the

advan¬

tage of technical assistance through
the
Fund
staff of
trained, ca¬
pable, experienced personnel. The

Savings

Life

Bank

Insurance

Council,

through its
Executive
Secretary and staff, is available
promotional ideas, advertising

for

material, merchandising, and

un¬

guidance and advice. The

which

continually evaluating
refining
sales
techniques
have proven to be effec¬

tive.

Yes,

and

able

cooperate

with

both foreign

and domestic enter¬
prise in this endeavor.

(4) Capital assistance provided
by the Development Loan Fund
and through other means is only

conditions
the

and

door

are

favor¬

wide

open

to those banks which have not

established

Life

partments.

Insurance

areas

which

are

yet
De¬

less

densely
populated
some
banks
wish to start their life insur¬

ance

with

have

doomed

failure.

taken to

select

the

and

dynamic approach in
and operation of

ownership

enterprises
(5) The

foreign soil.
the Devel¬

resources of

opment Loan Fund

are

adequate for the job

not nearly

assigned to

The

coastal

resort

Care

must

State

York

field.
No longer are there
questions as—Will it work?
safe?

Can it be

done?

$1.80

last

and

year

expense

the part of the

With

Savings Bank Life Insur¬

particular
bank
referred
persons
to other savings

banks

where

sold.

They

life

insurance

learned

soon

whom
were

we"

these referrals they were not only
but

I add that this bank wasted

time in establishing a Life In¬

Any
must

ing

long

have

the

When

Department of its

plan naturally
starting point. Mak¬
is half the battle.

term

start

open

Department

own.

Life Insurance
shouldn't
lose

sight of the broad

potential pic¬
ture or permit ourselves to be¬
come discouraged during the early
years when the Department is of
modest size.

If such had been the

geared

continued

the

'
rapids-

about $16

";•!

The

and

two

grow

each and
50

American Home Products is also building a new
employ 850.
Another interesting development is the
permanent location of a Government facility on the former Naval
Air Station property. The Airways Modernization Board has estab¬

pand considerably beyond this.
As the annual report states, "This

every year

have

mentioned

the

which

have

life

tivities at all.
not

before,

banks
We

this

is well adapted to electric heating and the company
pumps on its line although active promotion awaits
development of this appliance. At present the company is
more interested in radiant heating (installed in walls and
ceiling)
and 1,500 homes are using this method, with a l%c special rate
per kwh.
With 4,500-degree days per annum, a residence with
10,000 square feet could heat by this method for about $178
a
year, it is estimated; with 16,000 square feet the cost would be
$285. This equipment costs about the same to install as gas, and
while operating costs are somewhat higher it is such a clean and
convenient method that the company has not received any com¬
plaints.
1 7
The company's efficiency is reflected in the slow rate of

and
State

insurance

as a

ac¬

system can¬

possibly gain the full potential
this

unless

service

the

opportunity

Bank Life

move

increase

we as a

By
broad

now

powers

employees, less than. 3% since 1947r
annual gain of 10% in electric output.

debt, 18% preferred stock, and 30% common stock equity (or 31%
including tax refund). The company's policy is to maintain the
equity ratio around 30%, which is considered ample in view of
the

high

and

the

residential
well

proportion

diversified

character

reveneus
of

(nearly one-half)
operations. No

industrial

equity financing is anticipated before 1962.
•As indicated above share earnings have grown steadily in
the past decade (except in 1951 when they remained the same).
Earnings last year were $1.80, and are estimated at about $1.90
for calendar

1958, despite a severe storm last March. For next
about $2 is projected, before any interest credit on construc¬
tion.
The storm reserve, which amounted to $175,000 at the
year,

end of

1957, has proved inadequate and it is the company's inten¬

tion to reestablish it at $300,000 and build it up to $500,000.
The stock has been selling recently around 36Y2 ahd

have?

of the increasingly
which it has given

reason

an average

consumption is now only 0.89 pound of coal per kwh. as
compared with 1.15 in 1947, a decrease of 23%.
Capitalization ratios at the end of 1958 are estimated at 52%

system have made full use
we

number

the

Fuel

Insurance?

of those powers

compared with

Savings

of the United States by 1960.

area

160 heat

further

obviously concerned about the

40%

airline

area

The

Insurance.

and

growth
lias

Life

Savings Bank

offers moderate climate

transportation, modern high¬
facilities, proximity to metropolitan markets,
ample and adaptable labor supply." George M. Hansen, Manager
of
Industrial
Investments
of
Keystone Custodian Funds, has
predicted that southern New Jersey will be the Number One
ways

that

area

—abundant water supply, deep water

for the
It will pay you
increasing amounts
as
it grows.
The cost to you is
nominal and your original capital
will be returned to you with inr
terest." Would you buy that inr
vestment?
You bet you would!

Well,

lished the National Aviation Facilities Experimental
Center, which
now has a payroll in excess of $6 million a
year, and should ex¬

years.

dividends

Insurance

offices.

new

plant

have every reason to believe will
next

Life

Company is moving part of.
Jersey, and is also
constructing another large building, at a total cost of over $4
million. (It is expected that 1,500 persons will be employed in the

Is it

which

investment

Prudential

their home office in Newark into southern New

much confidence,
to
you
and say,

you had
to
come

"Here

was

that

program

•'1 '

;7t v

Construction expenditures this year
million and are estimated at about $13 million in
1959; over the five years following (1960-64) an annual average
of about $20 million is forecast.'• The company does not expectto do any financing this year, and bank loans will probably suffice "
in i960. - ' .;
;
v
;
''
are

As we stand on the eve of the
opportunities
now
better
is it wise to delay in¬ 20th Anniversary of Savings Bank
augurating a Department or an Life Insurance in our State, we
also are approaching another leg¬
Agency arrangement?
During a
session
in
Albany
at
period of considerable newspaper islative
publicity in a particular city, one which we will be asking for addi¬
tional
bank which did not issue life in¬
powers for savings banks.
In the eyes of the Legislature are
surance found that it was receiv¬
we not in a better position to ask
ing
many
inquiries
concerning
Savings
Bank
Life
Insurance. for more and broader powers if
these

in 1947 to '

eight

expected to be in operation.

ever,

This

A new 80,000 kw generating unit is under constructioi*
Deepwater and by 1962 the first unit of a new modern gener¬
ating station at Beesley's Point, with capacity of 125,000 kw, is

ance

than

increased

savings bank.

dividend has

growth.

forward on a united front. People
Agency Banks.
outside
of
our
own
business
This, at least, is a major step in
(some of them legislators)
ask
the right
direction.
It requires
the question: why don't savings
no
capital investment and very
banks avail themselves more fully
little
programs

the

past ten years.
The
construction

such

You

11% for the U. S. and 13% for the State of New Jersey. The com¬
revenues have grown from $12 million in 1946 to over $34

■

current dividend rate is

$1.40, yielding 3.8%.

the
The price earnings

ratio is about 20.

during recent years, the Legisla¬
has, I believe, demonstrated
its real interest in Savings Bank

surance

talents

well. diversified:

pany's

almost a* fifth of a century
experience in the life insurance

least important of these other in¬
struments is the technical assist¬

American

business is

company's

million currently. Share earnings have increased from 89c

have

talize

the

strategically located in relation to the cities

The company is included in the select list of "rapid growth"
In the period 1951-57 the area has outgrown both the
state and the nation—gaining 24% in population as compared to

sound insurance

New

Life Insurance.

the southern one-third of the State of New

an
independent company in 1948, having
subsidiary of American Electric Power.

utilities.

Here

Need

members

started.

team, together with
individuals
who
are
promotion
minded, with plenty of drive, lots
of enthusiasm, and who like to
nieet the public.
They must be
willing to study, to perfect sales
techniques and to teach others.

one weapon in the varied arsenal
required to do the job. Not the

ance

been

management

losing life insurance customers
potential customers of other
savings bank services as well.

industrial community can provide
when they display their varied

bank and mine

your

never

valuable collateral benefits. I have had the opportunity of
Banks that may be considering
studying this at first hand Sav¬
a
Life
Insurance
Department ings
Bank
Life
Insurance
has
might do well to prod their think¬ proven itself. ing and open the Department now
If your Investment Officer, in

place

association

banks,

Deposits in savings banks were
mighty small in those early days.
A Life Insurance Department to
succeed must have the unqualified
support from the top. If top man¬
agement is not enthusiastic the
Life
Insurance
Department
is

many

may

contributes 29% of revenues; the Delaware River Valley is
becoming increasingly industrialized; and in between is one of
The 7,700 farm customers
use
an
average of 6,922 kwh. annually, far above the national
farm average; an increasing number of farmers use.
electricity
for rapid cooling of farm products,,, operation of
refrigeration
l ooms, automatic
feeders, barn cleaners, egg graders, freezers, etc.

in the early days of the sav¬

would

creates

Life

the

is how the growth is going to take

and

illustrates

Council is

(1) The peoples of the less de¬
veloped areas are determined to
improve their living standards.
There is no longer any question
of

limited
Sums Up

pioneer utilities, the
City in 1886.
The

became

endowment at the ripe old age
of 100 in the year 2058. Extreme?

United

the

Atlantic

the richest farming areas in the country.

ings

economically.

built

area

has brought to the Rochester Sav¬

However, perhaps even capital
and expanded market¬
ing opportunities would still not

one

New

The

our

assistance

now-serves

was

York, Philadelphia, Baltimore and Washington, and
one-third of the nation's population is within 300 hundred miles.
The area served is about 60 miles in
length and 30 in width.

wider

Technical Aid's Importance

been

The company is
of

Continued jrom page 14

primary

products.

having

previously been

ways

products and commodities, but for
increased
production
of such

the

plant

Jersey.

in¬

world markets, not merely for the

present

Electric

company

never
an

important factor in the solution of
the economic problems through¬
out the world lies in

Company

City

first

•

■

Atlantic City Electric
Atlantic

analysis, the Devel¬

opment Loan
ment

the

opportunity of selling their
primary products to the world at
favorable prices.
J. feel that an

Utility Securities

Western

the

world and toward the Communist

■■1''

world

and orientation of their trade and

my opinion,
is in the form of another
question
we afford not to?
Can we

facilities, but also until they have

the

averting regimentation

their- societies

cal

convincing reply, in

areas

for

means

the. most

—can

ture

this

fullest extent
stitutions
are

there

the

are

other in¬

field

thrift

that

anxious for this privilege, and

might well be that the Legis¬

lature

the

State

of New

LOS ANGELES,

the

savings

banks

York
insurance

New

has

been

Calif.—Orie R.
added

staff of Francis I. du Pont

the

& Co.,

PASADENA,

Calif.

—

Nina J-

Inman has been added to the staff

Oscar

Werner &

Co., 3870:

East Colorado Street.

Statler Center!

Now With E. F. Hutton

With Shearson, Hammill

(Special to The Financial Chronicle)

Helpern is now asso¬
Shearson, Hammill &
State Building,
New York City office, as a regis¬
tered representative.

LOS ANGELES,

will not have done until all of

State participate in life

Jr.

York

give to others the oppor¬
tunity which we as a system are
not
now
fully developing.
This

activities.

Oscar Werner Adds
(Special to The Financial Chronicle)

Davis

might

F. I. du Pont Adds
(Special to The Financial Chronicle)

do not capi¬

opportunity to the

Parke,

Jr.

has

Calif.—Francis
become

con¬

nected with E. F. Hutton & Com¬
pany,

623 South Spring Street.

Irving

ciated

with

Co. in the Empire

The Commercial and Financial Chronicle...
Thursday,

(1498)

Continued

from first page

even

better forecasting job in the

near

future.

;

These are days when the fur posals ©f many others sponsored
flies in debate on Uncle Sam's role by*members of the majority party \
,in the economy. Some :propose - in 'ithe Jast Congress is estimated'?
socialist witchcraft to run the ria<f* at j iridre ; than $180 ^billiqii ^ov^r
tion's economy. " Others propose*' the nfext five years. Think of itspendthrift irresponsibility, with had these passed we would novv
government burdening taxpayers face.Jan additional load of $180
.J,
by offering something for nothing billion..

vr:'

word
about; shipping. ;
:
When this Administration came

The Economic Outlook

in, the shipbuilding industry was
with other major eco*

This

1058

numic

indicators,
points to
a
rise in national output
and income for the balance of the
-

marked

year.
i

••

■

First,
We

Attgust to an annual rate of $355.5
This, is $3.5 billion above

tional

billion.

personal income means to me that

confi¬

the

both

have

customers

dence to think about buying wares
and the

to pay for them.

money

Good

products, appealing adver¬
tisements, attractive display and
salesmanship can do the best.
The over-all pickup in business
is clear evidence of wise govern¬
leadership and of the latent

ment

word about highways.

strength of confident private en¬
terprise.
Our economic system continues

building the great na¬
which
highway
system,

are

President Eisenhower initiated
1956

the peak of August last year.
The
extremely high level

the

—

greatest public works

project in all history. This will
require the expenditure of raising employment.
$39 billion in Federal funds over
a
13-vear period.
:v
The vast 41,000 mile Interstate
and
Defense
Highway
System,
had been spelled out in
legislation in 1944 and had been
gathering dust ever since, was
taken off the shelf by the Presi¬
which

recommended

and

dent

the

Congress, which adopted the Pressuggestions. With its multi-lane, nonstop, planned access

that

The Bureau of Public Roads

the most

ule.

vised-

reports that to date contracts for

powerful instrument de¬
toy man for widespread
well-being. We have every right to
boast of maintaining the world's

awarded

5,598 miles have been
costing $2,910,000,000.

All of this means business and
highest standard of living.
We
hove opportunities unlimited to jobs in construction right now. It
generate even wider distribution also means far more economic opof material blessings, if we con- portunities in the future, as miltktue to promote economic growth, lions of potential customers crissFor growth is the key to future cross the entire United States,
prosperity — growth to meet the
needs of a 175 million population.
Next, a word about aviation,
increasing by three million a year
The other day, I presented the
—growth to take full advantage first type certificate of flying fitof research that is creating new ness to the builders of a commerproducts, new demands and new cial jet, the Boeing 707. Other pasjotos—growth that bolsters free- senger and freight jets will be
dom and strengthens peace.
ready within a matter of weeks
.

Let

repeat

growth is the

—

key to future prosperity.
Administration's

Contribution

I propose to point with pride to
some of the many
things which

the Administration is doing to en■AAfir A

oiia^i

era

AnAAnmi/*

such

courage

rfv»Ati;+V»

economic

growth

and to meet modern demands.'

intend

also

bkmt frankness
Which

could

of the

some

stunt

things

growth

and

raise havoc with the expansion of
business and employment.

Before

sound the siren about

dangers ahead, however,
wish to have
run-down

you may

you a

brief

few

Commerce

programs

designed to

Department

give

me
a

encourage business and employ¬
ment and to meet the most urgent
needs of

growing economy.
private manage¬
getting rid of obsolete
equipment and is wisely provid¬
ing efficient, modern plant for
modern demands, this Adminis¬
tration is making sound public inJust

alert

ment

vestrr»f»n+c: in tbp modernization of

the nation's transportation facili¬
ties

in other nelas.

and

one

another—we found the

national

highway system inade¬
quate for the annual increase in

the

number

autos

which

planes, including jets,

Weather services

were

unable

provide

sufficient
warnings
of
hurricanes and tornadoes and were

unequal to the special needs of
high altitude flight. Shipping was
in the doldrums.

Seaway

The St. Lawrence

nothing but

was

jobs

when

its

needed

power

wuoxixc
business

badly

was

keep

and

neglected1

was

urgently

our

economy

growing.,

^ac.;

™,0

end tnis
new

,34.

introduced

should

done.

suit,
meed;

in the Commerce Departnow busily engaged in

several all-time

record

TfcPiVimharf

Now, after thorough study, the
Civil

Aeronautics

is embarked

airways

Administration

series of Federal

on a

improvements

modern

ting into operation

new

automatic

dar

programs

.ir.aWv

put¬

are

type

traffic

ra-

control

equipment and other navigational
aids to oromote air safety in this
jet age—the greatest air safety

flio

We
as

investing four times
dollars as when I first

are now

many

became

Secretary of Commerce.
Even
greater
improvements
in
flight safety and use are in the
cards, as both civil and military
flight are merged under the new
Aviation

President

and the recent
Now

Agency,

Eisenhower

which

proposed

Congress passed.

word about weather fore¬

casting.
of

ers

the

effect

business.
weather

need

order

tell retail¬

weather
to

improve

predictions,
including
hurricanes, tornadoes,

forecasts of
and

other

Bureau
on

storms, our Weather
going full speed ahead

its greatest modernization
pro¬

word about

the

Seaway and

trade.

opening

industry and
opportunities

ping

taking

the-

agriculture is the construction of

self

stopping the decline.*: Confidence
has regained its health., ' V
• "

over

quarter of

nothing
Early in

for

build it.
his Administration, the
done

was

defense.'

look

ment,

of
are

outmoded

equip¬
substituting high

our

good

neighbor,

er ,weather services, we are
}"creaflnS °ur ability to prevent
i°SS °r property and life.
With
Knowledge learned from instruments
^
out on satellites, we
are
meteorology

up
up

and

new

hope

era

what eould

inflation."
That's

terrible

be a

v:"'

;;

expert judgment by two '

iL«

r\foeent*A

on' thosd;

leaders

of Congress who
'on this spending spree.

went

What do you think will happen

business recovery /
and
expanding
employment, if
such extravagance continues into
next year and thereafter?
to

confidence,

The advocates of reckless spends

may deceive some people into;
believing that the road to boom

ing

-is paved with government
and
debts.
But
history

otherwise,;

;

mines

proves;

Spendthrift government

;

deficits

business

under*"

confidence.;; /An

resulting
increase
in
V In fairness, let me sqy that the taxes would weaken business, in^centive,
cut
down
take-home
payj
opened to ocean com- last Congress did much on a bimerce,
tremendous
trade
will partisan basis to carry out ^res- and dry. up customer purchasing/*
create new business and new jobs, ident Eisenhower's, proposals for. power.'
What do you think would hap¬
And as the Central States prosper, building
a
stronger airier .better
they will become better customers America It enacted fes program; pen if, next year and in the years
for the rest of the country.
to strengthen our defehse System; following, the government should
take
from
the private economy
In addition to the new avenues
to extend reciprocal/'trad£;&greeof trade opening in the Seaway,
ments; to maintain mutuqlsecuri- more than that system can afford?
one of the
most powerful stimuty; to spread emergency ; unem- As sure as night follows day, the
industrial

and

nation

heartland

ayi

eventual

our

would leave a lack of pri¬
lants to more trade was the pas- ployment benefits; to bolster; civil
vate funds for investing in newsage by the Congress of President rights and other vital/pf%ams>
Eisenhower's Reciprocal Trade ■„ Credit belongs to members ;of job-making plant and equipment
A weak economy would be less
Pr°grani. It protects the jobs of both parties in backing up. the,
drain

than

It also offers

new

products for

consumers, new foreign
ers for our farms and

opportunities

new

President's

four-and-a-half

million American workers, whose
livelihood depends on world trade.

for

Such

brief

our

necessary

ahead

pro¬

of progress.
All of these Administration pro¬
to

growth

are

But

good.

enough.

Private

they

conrie

unless

are

enterprise

comes,

tinue

say

I-

■

businessmen, con*
everything in your

business
to

of.

warned

within

and

power

your

keep the economy rolling along,
it

doing today.
But never'
sight of the fact that there
ahead if goy¬
ernment
travels
the spendthrift

the

lose

halt.
;
As A1 Smith used.to.say: "Let's
look at the record.".
'
J
a

'
day. ever

tragic

may

once

"
funds and then rushed

people call

that

growth,
and na'j

/really get that "hair-curl^ing depression" George Humphrey

deficits

economic

encourage

If
we

spending spree. .This
pell-mell stampede over the pros¬
trate taxpayer will be reflected in
next year's $12 billion deficit with

gram

grams

Too Much Spending
But when it came to. the money

American

employment

tional security.

custom- faucet, Congress completely failed
factories, _in tightening the tap,.It provided.

sound

able to maintain economic

leadership?;;

sound

expanding

economic growth and new strength
for national security.

...

will be real danger

also

must

receive

other

encour¬

session,, the Congress
appropriations totaling $5,000,000,000 in excess, of Admin¬

voted

example in fiscal responsibility.
If our private enterprise system

istration

continue

lion

supply 175 mil¬

Americans

abundant

life

with

and

priation

maintain

it must not be
held back by government-imposed

history.
getting

thus

by one

the

dent

1959

vanced.

economy

I
on

actions

would

slow

conclusion, let us frankly
recognize that our danger-haunted

pro¬

generation confronts

cite

chapter

what they are

and

doing.-

have
*

made available,

The

total

budgetary- cost
volved in only eight major

tary
The

prob¬

field

and

and
statesmanship.
gunfire has been
in every decade of this gririri

affairs

sound

heard

20th

many

economic

the

perils in the realm of mili¬

many

century.

Men with lies on
in their hearts

their lips and hate

trying to stir up
America everywhere.
are

trouble for

;

shall

lems

which

four; with a net reduction of
only half a billion dollars instead
of the savings of $3.5 billion which
the President's proposals would

rights arid fight

can unnecessary government
spending be held in check and
future prosperity vigorously ad¬

budget of the Presi¬

contained

posals

your

principles.
only by increased action by
responsible members of so¬

ciety

$5,500,000,000 to the total,

;

The

fight for
your

For

increasing

ooo.

and

for
1

if enacted would
have
produced
future
annual
budget
savings
of $3.5 billion.
we face one
of the most - Congress
did not act-at all on
periods in our economic eight of these proposals; > acted
Just as our economy is " only partially on four; iand acted
up speed again and just
to spend more rather thah save

by their
down.
verse

passed

appro-

Administration
recommendations by $10;50G,000,-

when we are holding our lead in
the race with the Communist economic drive, there are those who
And

available,

measures

another

roadblocks.

Here

believe in private enter¬
prise and sound thrift in govern¬
ment fiscal affairs, then stand up

both Houses would have added

growth,

If you

addition, unless Presidential

vetoes had been

recommendations,

road.

its last

agement from government. Espe¬
cially must government set an

understanding

It has planted the

economy.

seeds of

steady progress and hot/do;things
that
might encourage
inflation
and
might retard economic re¬
vival.
; "
*
yy * '',V*
Yet, there are those today" who
would
weaken
confidence
and

critical
u

rising

lation.

Unless we give private entercomputers, modern tech?^ues/or^°^^errrar?^e forecasI- prise a chance to do its job, I
*
i radar.t° locate storms, largewarn that we are heading into
trouble.
SCa,C hurricane research and other real
——----modern tools. As modern planes
Leave Critical Period Alone
fly much higher, new devices are

built for high altitude fore-

of -what

top

with

Congresses $
in Wash¬

It has piled spending oq
now seems to be a

ington,

greatlyin

Business, government'^hd'peopie all should try;"'to' promote

speed

casting

spending

have seen.in my 35 years

it; the President proposed
it; the. Congress passed the legiscooperation

mended

"This has been one of the most '

recklessly

recom-

and de-*

money

credit."

bright—brighter than at any time

the value of

undertaking.

head

study

the high

Congressional

catastrophe—r

Senator Harry Bvrd Said in
July 27 interview:;
" * '
,

members

such

George

purposes

are

press

national

But let's not gamble with .c'onfidence.
\ /' J,...

asked

committee

healthy
place

this year.-.

President

: of ;

;

for

...

relation to national

no
.

printing

based

earlier, the .out¬
continuing recovery is

for

road to disaster and

As I remarked

century. But

contributed

Congress since

any

Administration

which have

more x

before tap-ss

ever

was

Washington

the St. Lawrence Seaway.
It had been talked about

than

propriated by

panaceas and the prompt remedies used by business to cure ithave

Can¬

Clarence

last Aug.

/ "Congress is appropriating

wrong

eftdiiig in

:
V
The bold refusal of President
Eisenhower to give way tb|)anic

vast

two-way

industries- and

other

for

trade

said,

money

smash-up.

;

Closely connected with the shipnew

guides,

detour and maybe by

Representative

non

by1 erVcouraging
current revival and
building for
future growth needs, is "attempt-

false
A

gram.
In

blowing^

ship.
It is the
forerunner of peacetime
atomic ing to steer this course.' ' ^1
' V
sea transport which in a growing
Where do we go from here?
America will completely revoluLet's not lose our way to contionize ocean commerce,
;• '■ tinuing recovery
by listening to

not

There is

warning

the wind is

Administration,

passenger-cargo

the

yet

program

meet

conditions.

*
Tneir impact
already is one of
opening
«i.„
m
-»
7
—
—"fviiing
the factors in current business re,

re-

mre

of improvement and exoansion

found

fast-growing population. Congress
supported his proposals.

Y»Ant*oo

In that course the American' jpeopie reached the highest level of
prosperity in all 'history".
This

building the "N. S. Savannah,"'the
world's
first
nuclear-powered

p f*

comprehensive plan ready.

det®rmined to being

stagnation and to open up
job opportunities for our

Administration

Maritime

our

ll-iof

opinion in Government and industry long existed as to what

dream.

In other words, a great
potential

generator

was

causing traffic jams and accidents.
Air safety was endangered by the
increase in the number and speed
of modern

Federal

'V; the steady increase of briv^e jobsV j

addition, in conjunction with
Energy Commission,

Atomic

Canada, the project is
moving forward steadily, with one
big link around Massena, N. Y.,
brand new era in air transporta¬
already completed. This summer
tion
with
fascinating -prospects the President placed operation of hamper recovery by advocating
ahead.
the Seaway under the direction of
"the sky's-the-limit" goyernment
spending.
But the rapid increase in numthe Commerce Department,
They brought pressure on the last
ber and speed of modern aircraft
Here then is another fine prachas created
problems' including tical example of stimulating eco- Congress. They will, keep hpjjieir
^
*
the safety problem.
Differences nomic growth. As the great farm pressure on the next;
there

thus

and

discuss 'with

the

ident's

a really great project
a»d currently it is right on sched¬

of the way

Lest some may .hint that; Itam ;
Today, the greatest peacetime But to keep such reckless prom-,,
shipbuilding program is sailing 'ises would hurt all Appier ": "
unduly partisan in my alarm, let
along. Under construction or con->p In contrast; I b^li^ve\the:role^ me quote " what two leaders ©fy
version are around 100 ships .of of government should1 be that of the
party in control ©f Congress 1,000 gross tons or more.
Thi3 maintaining a climate -favorable: "had to say about its spending
spells
continuing
business and to release of private initiative and record. 0.;;;'J*, r,
- ,

inciudfng roads> it is

to prove to the world
envious Communism -

J All of this should be

construction

rose

...

brought about plans for both new for every outstretched palni.'jSuch
and replacements.
^ promises may please some people.

ahead.

again in

Personal income

vival—with even greater forward in the doldrums. Cooperation beeconomic thrust coming in the tween government and industry
years

October 9, 1958

But

hope surmounts every haz¬

ard..

in- V
pro¬

:
This'

same

century

anxiety

Volume 188

Number 5784. ..The Commercial and
Financial Chronicle

(1499)
times in all history. It

prosperous

has

Continued from page 6

provided scientific marvels
are
bringing untold bless-

Continued

from

which

ings to/mankind.

;

'm; store for/ us,f
however, let us face tomorrow—
wise in • action—stout in heart—
strong in/faith that .-'the; best is/
yet to be."
•
*
f

certain
as

produces what

Ass'n of Exch. Firms.

all

higher standard
fuller

life.

and

-vStock

friends

■_

w a s-a n

inore

ed f a t/':

noun c

experience

the

commercial

bank¬

ing field in New York State, and
elsewhere in the country.
'

the Fall meet-

problems

our

must stand together—as sav¬
ings bankers, within this Associa¬

jobs.available for

tion.

-of

t.he

;

ernors: of

the

Association

;

change Firms'.;./

Indeed,

iayoK X)ur^competitors

hard.

Hetherington;/.
Goodbody/7

II,

/ Y

o r

New
k, a n d

Edward
,

Burge,
Ball, 1 Burge
Cleveland, have been

&
Kraus,
nominated

Vice-Presidents and Edward N.

as
■

Rotan

■

hear

it's

A'v.'",•:

returning

]

merchandise,

fulfill

C o.,

■

// ./ ///'/;;
role

upon

tends

en¬

time—within

not

We cannot rest, we

can¬

/ V Speaking as your president, let
me
say that this Association in¬
to

take

step it can
that this job is followed up

see

and followed

couraging thrift. We aiso compete
effectively,'.
Once

this

does not intend to leave it at that.

not only

traditional

our

selling:

are

that

say

not draw comfort from any victory
in Chicago. Your State Association

and intelligently. There's
nothing,wrong with the hard sell.

enough.

must, merchandise—aggres¬

sively

$tock /Ex -:/

■

/Let

1 Suggest Thrift Campaign

Board of Gov- /

the

every

of many here today—we
savings bankers had no real com¬

for its

and

Thus we're dealing with a mass
Baker, Jr., Reynolds &
Co., New York; John D. Burge,, market; And in a mass market,
Ball, Burge & Kraus, Cleveland;;,; competition is rugged and relent¬
Alfred Rhett du Pont,. Francis I.' less. And it should be good for us.
Let us, then, sell.
du Pont & Co., New York;, David
Let us turn
Scott Foster, Pershing & Co.; New- our eyes toward the
public we
York; James A. Hetherington, II, serve. Let us concentrate on serv¬

not

HornWeeks, Boston; Michael
McCarthy,
Merrill Lynch,>
Pierce, Fenner & Smith, New
York; McKee Nunnally, Courts &
Co., / Atlanta; Albert C. Purkiss,
Waist on & Co.; Inc., New* York;
Jay N. Whipple, Bacon, Whipple
/•& Co., Chicago; E. Warren Wil-.
lard,
Boettcher
and
Company,/
Denver and
Coleman
Wortham/.
Jr.,-Davenport & Co., Richmond. .:
Nominations for membership on!

them—service

creasing

banks

all

believe
remiss

John D.

ice

savings

discussion

would

you

duties if I did
Association's

uphold

consider

And

the

our

State of. New

together as
fellow mem¬

banking

community.

In closing, let me leave
thoughts with you.

number of

York.

One:

We have launched

few-

ef¬

committee

the

of governors

for

present

1959

are

a
as

slate

fol¬

Jerrold Bryce, Clark, Dodge
Co., New York; John E. Blunt,

If we have problems within the
industry—if tax equality, for ex¬
ample, is one of them—let us solve
those problems within the indus¬

try. V.

3rd,;

Blunt

Ellis

Simmons,

Chicago; James J. Lee, W. E. Hutton & Co., New York; Leonard D.
Newborg, Hallgarten & Co., New
York, and, Joseph
M. Scribner,
Singer, Deane & Scribner, Pitts¬
burgh. ■.

Let

was

attack

its

Chairman

the

Nominating

Committee.

Kruyne Joins

Loewi & Go., Inc.
MILWAUKEE, Wis. —Loewi &
Co.
Incorporated, 225 East Mason

These

free
tax

12%

law,

mutual

effect

Home

the

Sayings Bank, Milwaukee

The

limited

partner in Dominick & Dominick,
passed away on Sept, 29.

Charles A. Collins

Charles A. Collins, former presi¬
dent* of the
Boston - Stock
Ex¬

change, passed
the

age

Sept. 27 at
following a long

away

illness.

present

until

reserves

the

of reserves and capital equals

12%

of deposits.
commer¬

cial
banks
and
mutual
savings
banks, it is fruitless to talk about
uniformity of reserve provisions

two types of institutions.
opposition refuses to recog¬
mutual

savings

banks

have the need to accumulate

plus,

sur¬

and

cannot be required to
reduce their surplus to the level
commercial

bank

bad debt

re¬

Increasing A11

Bad

Debt

savings bankers believe that

debt

should

reserves

in¬

creased

for all types of commer¬
banking institutions rather
than -tearing
down the reserve

cial

now

Only

permitted to mutual savings

banks:V*

'/.

...

At any rate, let

community

with both commercial and mutual

savings
be

bank

facilities

individuals,
equal

home

and

access

there

owners,

con¬

producers—will have
to all types of credit,
long-term, essen¬

and

their

Four:

can

that all the people—

assurance

sumers

needs.

solve prob¬

increase

and to finance the growing capital
needs of the state and the nation.

expansion,
consumer
and the construction of
all be financed by
individual savings.
This requires
adequate banking facilities, and
they are not at present available.
The current rate of savings is in¬

lending

homes

must

sufficient to finance the needs of
the

country.

Five:

■

Let

toward

bringing

have

effort

about

made.

waited

The

behooves

long

time

studies

have

been

facts

every

are

known.

element

the

banking community to help to
wipe out the roadblocks and get
this action now. We hope that the
savings banks will not be alone
in recognizing and

answering this

need.
And

let

stand

together

behalf of the greater good—which
means
for savings bankers, as it
has for 139 years,

industryC/They

people

be solved, for

spare

early ac¬
tion
to
modernize
the
banking
law.. The people
of New York
this.

to terms

•

;

*'•

parts shortages arid a Chicago assembly plant
strike, Ford Motor Co. operations were impaired until Thursday
of last week, when four Ford Division
assembly plants recalled
11,000 hourly-rated workers to their* jobs.
Additional Ford
factories

were

preparing to get under

last Friday and Saturday. Still waiting to begin 1959 model output are Mercury and
Lincoln, only producers in the industry whose new model operaway

•

tions have not started.
week and

Lincoln is expected to get under
way this
Mercury the following week,
/ ■ 7 ■-

Chrysler Corp., despite its mid-week contract settlement with
the United Auto

Workers,

Scattered walkouts

kept
"

•

Chrysler
•

was

not able to get normal assembly in ~
need for key parts, including; /
near
the previous week's,: /

and the

programming

>:t

f.'

By adding Saturday to its work load, American Motors will
"
get in a four-day week, "Ward's" indicated.
American Motors
was stopped on Tuesday and
Wednesday of last week by a body "• /
shortage.
Studebaker got 1959 model output going the past > *
•

Tuesday, "Ward's" stated.
The statistical publication said car production totaled
only /
131,952 units in September or one-third fewer than the 195,500 *
scheduled at the outset of the month.

cars

Steel

Output Set This Week to Attain

46-Week

Steel production will reach 25,000,000 ingot tons in the fourth

we serve.

the good of the

quarter,

easily making it the best quarter of the year, ""Steer"
magazine forecast on Monday of the current week.

■/'

The prediction by the metalworkipg magazine is based on
the rising tide of incoming orders at steel mills. The outlook is
for further gradual improvement in the weeks immediately ahead.

•;

;

As steelmakers head down the

homestretch, they are spurring/ /
production to new 1958 highs. They boosted their operations two - ;
points last week to 68.5% of capacity, the highest level of the year,
i
Output was about 1,850,000 net tons of steel, largest since the
week ended Nov. 24, 1957.

Steelmaking districts registering gains were Detroit, Pitts-. /'
burgh, Cleveland, St. Louis and Wheeling. District rates follow;
St. Louis at 91, up 12.5 points; Detroit at 78, up 8.5 points; Chicago
at 77.5, down 1 point; Cincinnati at 76, down 0.5 points; Wheeling
at

75, up 1.5 points; Western district at 75, no change; Cleveland at
70.5, up 2.5 points; Eastern district at 66, no change; Pittsburgh at
63.5, up 2.5 points; Buffalo at 58.5, no change; Youngstown at 54,
no change and Birmingham at
54, without change.
'
"

September's output of 7,560,000 tons was the largest of any
this year.
During the quarter just ended, steel mills
operated at 60% of capacity and produced 21,000,000 tons. In each"
of the first two quarters,
the ingot rate averaged 54% and pro¬
duction was slightly under 19,000,000 tons.
To date, 59,000,000
tons have been produced.
month

Despite the slowness of automotive ordering there is a good
for sheets.
Appliance manufacturers, furniture makers
many lesser consumers are taking substantial tonnages, de¬

demand
and

six weeks
some

now.

Delivery of cold-rolled sheets takes from five to
Demand for galvanized products is so great that

producers have their salesmen on quotas.
to eight weeks are not unusual.

Delivery promises

of six

October will be

banner month for tin plate producers.

have been deluged with orders

They
since announcing that prices would

go up Nov. 1. Canmakers want their November tonnages delivered
immediately, but it is easier said than done. Some of the mills are
running short of processed steel, leadtime is about 45 days.
b

"Steel's"

quarterly

survey

buyers

components

shows

that eight out of ten will maintain or increase inventories in the
next three months.
Respondents report a 30-to-60-day inventory
of castings,

screw

machine parts, fasteners, electrical equipment

and motors.
The

lems like this within the banking
can

Plagued

clares "Steel."

continued

the volume of savings is essential
to reduce the danger of inflation

for

-Reserves

bad

Three:

State

Prefers

gov¬

national, state and
community levels.

Industrial

Because of the fundamental dif¬

ferences in the nature of

that

sure

the

tial

the

Henri F. Berthoud

mis¬

savings bank does not equal
12 % of deposits, it may be
sup¬
plemented by deductible additions
debt

make

industry and business, and to
ernment

mu¬

Bank, also of Milwaukee.

Berthoud,

sonow

persistently

de¬

reserve

serve./.
/
Let me put it plainly—

Henri

is
the

savings banks.

and

previous- to that was VicePresident of the Marshall & Ilsley

debt

accumulated capital of a

nize

doing

are

tual

bad

must

the

short-term

Kruyne has jdined
organization.
Mr.
Kruyne

formerly " President

friends in banking throughout

that

for ; the

their

you know, in respect
savings banks, states

that

Two:
our

extent

The

Jacobus

people of New York State by
feasible means.

every

tions and service to the people, to

reserve."

intensify

We must carry our story to all

the

at Chicago. What

reduction

people

program.

country get all the facts and
figures on savings bank contribu¬

point

understand the nature of this pro¬
vision and refer to it as a "tax-

announced

has

relations

We must continue it and

it.

;

words

public

the

main

tax-free

Street, members of the New York

Exchange,

few

equality question.

allowed the mutual

Stock

was

,the.

against

called

Jacobus

say

proponents

sum

that

just

this, tax

about

the

Lloyd W. Mason, Paine, Webber,
Curtis, New York, was

Jackson &

manding

lows:

fective

Issue Be Resolved

As.ks. Tax

original program.

must stand

bankers, with all
bers

came

Thursday a week ago, but the nation-wide General Motors
strike that began earlier that
day forced the corporation to lop
15,000, new cars from that week's schedule, or about 40% of its

High at 71.1% of Ingot Capacity

tc an increasing
people in our growing

scale,

blower &

General Motors and the United Auto Workers
on

just that.
•

Five-Fold Program

42,275 automobiles were planned compared to t
42,599 the week before and 21,975 in the corresponding week a'
//.'7 -,//■>;.
'
///■/: t
7.-7• * ;/:/

your

constitution by seeing that

in¬

the

and

subjects relating

thereto."

■

year ago.

level.-'*

total

objects the general welfare

affecting

York;

and parts shortages kept 1959 model
production from
past week, "'Ward's Automotive Reports," stated on;
Friday last.
/ ■ :
/ " 7 / •
..
/
>

bodies,

of the savings banks in the state,
the securing of the proper con¬
sideration of all legislative actions

Goodbody
&
Co;,
New
Henry Horn blower, II,

Strikes

rising the

hand.

people
wanted
to
Carpenter, Jesup & Lamont, New:; petition. If
York, as Treasurer. Elections wilt- save, they'came to us. But this
take place at the annual meeting- is 1958. •
in New York on Nov. 19.
■
Today,/our market is not just
The
Association
has
people who want to save.
also
an- ; those
bounced
the
following nomina¬ It is every man, woman and child
should save, too, many of
tions for election to the Board at who
the annual meeting of members: whom don't, today.
-

hedge buying in the second quarter of 1959
start negotiating with steel labor for a
The possibility of labor trouble
usually persuades

contract.

shall have

"The Association

memory

companies

users to fatten their inventories in the
weeks just prior to
the contract expiration
date, "The Iron Age" concludes/ /
>

through, pursuant to

Association's constitution

by-laws, which provide:

the

steel

and

more peo¬

•

.ing

In the solution

They finance progress, and make

recent

I feel that we made good
responsible progress in recent
■weeks, -working with our fellow
ple.;:.^.; :> /.'■ f:■v.:/-////;';/-/
bankers cross the country, within
What, then, must we do to bring the
American Bankers Associa¬
thrift back into public favor?
tion.
/ ./
/:•'/...
;,
> ■

Ex-.--

//change Firms,- /
i t

from

—

know

/that we savings bankers are held
/•////'/: in high respect and regard by our

„

want—a

living

amount

the

new

And need. I remind anyone that
savings. banks are the best place
:* BOSTON.
Mass.
Edward/ for people's savings?
These sav¬
Rotan, senior partner of Rotan, ings are truly anti-inflationary.
Mosle & Co., Houston, Texas, has ; They are invested in the economy,
been nominated' President of the and thus create an incfeased flow
of consumer goods and services.
Association of V,

/Receives Slate

page

.•/

/// £

machined
those

shows that inventory cutting is continuing in
components, electrical equipment, and motors. But in

survey

categories, as in others, the large majority of buyers have

already completed inventory cutbacks.

magazine's composite on the prime grade of steelmaking
holds unchanged at $43 a gross ton for the second straight
week. Rising steelmaking operations brighten demand prospects.
The American Iron and Steel Institute announced thai the
The

scrap

operating rate of steel companies will

average *119.4% of steei
week beginning Oct. 6, 1958, eguivalent to
1,918,000 tons of ingot and steel castings (based on average weekly
production for 1947-49) as compared with an actual rate of *118.3%
of capacity, and 1,901,000 tons a week ago.
Output for the week beginning Oct. 6, 1958 is equal t* about

capacity

for

the

71.1% of the utilization of the Jan. L 1958 annual capacity atf
140,742,570 net tons compared with actual production of 70.4% the
wcclt l)6forc
For the

iike

week

month

ago

the rate

was

*110

Continued

page

The Commercial and Financial Chronicle...

There

Continued from page

1,780,000 tons. A year ago, the actual
placed at 2,105,000 tons, or 131.0%.

duction
was

rn^Tof

production is

based

on average

quence,

upward the week before.

crease

Oct. 4, 1958 output

the week ended

For

decreased by 231,-

kwh. under that of the previous week but showed an in¬
of 547,000,000 kwh. above that of the comparable 1957 week

769,000,000 kwh. above

and

that of the week ended Oct. 6, 1956.

Ended Sept.
Loadings of revenue

freight in the week ended

decrease of 158,724 cars, or
corresponding week in 1956.
and

week,

Automotive Output Last

Sept; 27, 1958

19.1% below the

The Level of

output totaled 42,275 units and

Last week's car

3, 1958,

The

by 324 units, while truck

by the strike
about 40% of

compared with

previous week

output declined by 496 vehicles during

11,688 trucks were assembled.
/
/.
;
* ;
Last week the agency reported there were 13,818 trucks made
in the United States. This compared with 14,314 in the previous
.

and

week

11,688

year

ago.

Lumber Shipments

Scored

Rise of 7.8% Above

Output in the Week Ended Sept. 27, 1958
Sept. 27, 1958 were 7.8% above production, according to the "Na¬
tional Lumber Trade Barometer." In the same period new orders
1.4% above production.

"Were

Production

stocks.

orders

new

the like

were

was

4.5%

week in

1.4%

Unfilled orders amounted to 43% of
above; shipments 2.0% above and

above the previous week and 5.8% above*

1957.

Business Failures Rise to Highest

preceding week, Dun & Bradstreet,
At the highest level in 14 weeks, casualties ex¬
ceeded considerably the 261 in the corresponding week last year
and the 253 in 1956. Eight per cent more businesses failed than
in the comparable pre-war week of 1939*when 279 occurred.
Liabilities of $5,000 or more were involved in 245 of the
week's casualties as against 234 in the previous week and 217 a
year ago.
Small failures with liabilities under $5,000 increased
to 56 from 34 last week and 44 in 1957. Twenty of the
failing con¬
-

$100,000,

against 34 in the

pre¬

ceding week.

furnishings slackened holding total volume in men's apparel be¬
low that of both the prior week and last year.
Although there
were numerous sales promotions in some areas, the call for chil¬
dren's clothing was sluggish.

New

The wholesale food price index, compiled by Dun & Bradstreet, Inc., fell noticeably the past week to $6.30 on Sept. 30, a
new low for 1958. The
previous low was on Sept. 2 when the index,
stood at $6.39. The current level was 2.9% below the
$6.49 of the
prior week, but exceeded the $6.12 of a year ago by 2.9%.

Commodities quoted

higher in wholesale cost last week were
flour, wheat, oats, barley, hams, sugar, cottonseed oil and rice.
Lower in price were
rye, bellies, cheese, cocoa, eggs and hogs.
The index represents the sum total of the
price per pound
foodstuffs and meats in general use and its chief function
to show the general trend of food
prices at the wholesale level.
raw

Wholesale Commodity Price Index Edged
Higher Last Week

HigJlir Prices
helped lift the
i

on some grains, butter, hides, lard

in linens

ago.

week

The Dun & Bradstreet daily whole commodity price index

moved up to 277.91 on Sept. 29 from 277.05

comparable date

Reports

that

year

ago the index

week earlier.

On the

stood at 282.10.

preparation

the

Corn

panded

prior

week.

buying of women's cruise wear.
and slacks were sustained at
There

i!11? ,er

to those of a

and m.eaJ Prices, soybean prices
was

week earlier.

limited.
-

Oats prices
-

ago.

year

(Special.to The Financial Chronicle)

;

PASADENA, Calif .—Thomas H.
Heller has become associated with
Lester," Ryons

& Co., .110 South, v.
Mr.Holler

Euelid. Avenue.

was

formerly manager of the invest¬
ment department of the local of¬
fice of Walston & Co., Inc

Joins Mitchum, Jones
t

•

Calif. — Alan
Robertson has becomeaffiliated

/ LOS

•

(Special to THe-Financial Chronicle)

ANGELES,

Jones & Temple-

with Mitchum,

650 i South 4 Spring
Street,
members, of the New York and
Pacific. Coast Stock Exchanges.

ton j r

-fK William T.
'

;;

Spence

William T. Spence passed away

Oct; 3 at the age of

67/Prior to his
with

retirement he was associated

Spencer Trask & Co. :

.rVt; Henry G. McLean

Henry G. McLean passed avvay
Oct. 1 at the age of 58 following
-

He was connected

brief illness.

with Laird &

Co. Corporation in

New York.

- \

another

There

was a

moderate rise in the

Purchases of men's suits, topcoats
high level.

moderate

in textile

rise

activity during
cloths and broadcloths
gray goods.
Transactions in
industrial fabrics and man-made fibers heightened, and volume
approximated that of a year ago. While the call for carpet wool
moved up appreciably in Boston and Philadelphia, interest in
woolens and worsteds lagged in most markets.
the

was

Increased

week.

over-all

trading

volume

y-'J

cotton

mr eeneer

Fiaal Ylolorp

will cent fr§m

ex¬

...

Many sancerrsa* basviwd

mained close to that of

Tktr*

reported

week earlier.

that* art vlctariswtadip*.

whan detected

atrip ami;

treated promptly. VtfUmm
la the kty to

thla tlotaryk

art; teve»

;

aigiala

which might maanaaihK

Department store sales

on a

country-wide basis

the Federal Reserve Board's index
fell

1958

for the week

below the like period last year.

taken from

ended

In the

Sept. 27,
preceding

week, Sept.. 20, 1958 an increase of 1% was reported. For the four
weeks ended Sept. 27, 1958, a gain of 1% was registered.
For
the period Jan. 1, 1958 to Sept. 27, 1958 a decrease of 1% was re¬
ported below that of 1957.
Retail

trade

from

creased

sales
to

volume

13%

over

New

York

City

purchases

bolster

dresses,

sales volume

junior

the past

last

week

in¬

the level of the similar period of

1958, estimates by trade observers show.
Sales promotions of furniture and home
wear

week.

and

store

accessories

along

helped

sales in New York City for. the week ended Sept.

showed

decrease

was

increase

27, 1958

1% from that of the like period last year.

the preceding week, Sept. 20,

ported.
3%

1958

Vlf ilancain haadlafthaw
eould mean victory evar aaa»
ear

•

f. Unusual bleeding Of discharge
t. A lump or

thickaafttf fa tta

hraast or aisewher* S. A eorv
that daeenetheafc. 4.
or

period in 1957./

For the period Jan. 1,
was

bladder- habits.

IndA

paction or difficulty in entile*
ing. 7. Change In a wart or molw
If your signal lasts longer thaw
two waoka, go to your doctor
loom If it meant cancer,

increase of 1% was re¬

1958 to Sept. 27, 1958 an

registered above that of

the corresponding

Changel*

9b Hoarseness orcough. •.

AMERICAN

For the four weeks ended Sept. 27, 1958, an increase of
noted.

foryou;

•

tow#I

furnishings

According to the Federal Reserve Board's index, department

In-

climbed

remained

the nMttrch UbozaterjfcM

marked rise in the buying of
fresh produce as increased supplies reached the market. Further,
advances were reported in canned goods, frozen foods and baked
goods. Interest in fresh meat, poultry and dairy products, re¬

wholesalers

Food

prices eased abit during the week as
supplies
Corn trading was sluggish at the end of the week.

moderately, but buying

Lester, Ryons & Co.

for

fall and winter suits slackened.

moderate rise in wheat
prices.

Trading as a result
expanded slightly. Following the tiend in wheat and light arrivals
in some markets, rye
prices rose fractionally and trading matched

that

Thomas H. Heller With-

the Christmas selling season, retailers
stepped up their orders for children's clothing last week. Interest
was
centered on girls' dresses and sportswear-and boys' sports
shirts, slacks and sports jackets Volume in women's fall dresses,
suits, furs and rainwear expanded noticeably, while the call for

with

heavy

rain recently damaged many crops in
Europe and that exports to those countries would
probably rise,

resulted

close to

was

prior week.

and tin

general commodity price level somewhat

reported marked increases in purchases of
the call for refrigerators and automatic

laundry equipment fell moderately. Total appliance volume was
noticeably under last year. Best-sellers in furniture were uphol¬
stered living room chairs and modern bedroom sets offsetting
declines in occasional tables and case goods. Although the buying
of floor coverings and draperies fell below the similar 1957 period,

•

1958 Low Last Week

of 31

retailers

hi-fi and television sets,

boosted

Wholesale Food Price Index Touched

resident manager for
Co., Inc., with which
Mr. Eilers was also associated.

their buying of fresh produce during
week, making for marked year-to-year gains. Interest in
canned goods, dairy products and poultry matched that of the

ended Oct. 2 from 268 in the

trade in the

the

Inc., reported.

excess

Company; Mr. Liddle was

Walston

Ago

Housewives stepped up

Level in 14-Week

Commercial and industrial failures climbed to 301 in the week

had liabilities in

Liddle and Marcus B. Eilers have

formerly

Despite slight gains in the buying of dresses and some sports¬
wear, over-all volume in women's apparel sagged during the week
and fell slightly below a year ago. The most noticeable declinesoccurred in coats, suits and fashion accessories. Although interest
in suits and topcoats matched that of a week earlier, sales of

volume

Period the Past Week

cerns

Calif.—George R.

become associated with First Cali¬

4-1; South Atlantic —4 to 0; West South Central and Pacific

While

shipments of 472 reporting mill's in the week ended

Lumber

"z:

(Special to The Financial Chronicle) -

PASADENA,

;

dollar volume of retail

total

Coast States —5 to —1%.

corresponding week last year 21,975 cars and

In the

week.

the

Year

With First California

Dipped Slightly Below

period ended
on Wednesday of the past week was from 3% below to 1% higher
than,a year ago, according to spot estimates collected by Dun &
Bradstreet, Inc. Regional estimates varied from the comparable
.1957 levels by the following percentages: East South Central States
0 to. +4%; West North Central and Mountain —1 to 4-3; New
England and East North Central —2 to 4-2; Middle Atlantic —3

output fell below that of the

Liddle & Eilers Now

•

42,599 (revised) in the previous week. The past week's production
total of cars and trucks amounted to 56,093 units, or a decrease
of 820- units below that of the previous week's output, states
"Ward's."
■" ;.;///
• —V
■
r'.-Ii':
Last week's car

Seventh Street.

sumer

according to "Ward's Automotive Reports," suffered a setback as
a
result of strikes and parts shortages, which kept 1959 model

production from rising. General Motors was forced
to cut 15,000 new cars from the week's schedule or
its original program.

■—

•

Calif.—Nadine
Carter has joined
the staff of
Dempsey-Tegeler & Co., 210 West

Rainy, unpleasant weather in many areas discouraged con¬
buying last week and total retail sales dipped slightly
below those of a year ago. Year-to-year declines in most apparel
lines and appliances offset gains in furniture and food products.
The buying of new passenger cars was sluggish and noticeable
decreases from last year continued to prevail, spot checks showed.

Week Curtailed by Strikes

production for the week ended Oct.

car

are

LOS ANGELES,

fornia

Trade Volume the Past Week

And Parts Shortages
Passenger

deal¬

(Special ito The Finaitciah Chronicle)
5

ports were estimated at 517,000 bales compared with 599,000 in
the similar period last season, the Service Bureau of the New York
Cotton Exchange noted.
• •;
V
.

the preceding week.
Loadings for the week ended Sept. 27, 1958 totaled -672,924
cars, a decrease of 66,342 cars, or 9%
below the corresponding
1957

Building to act

i.With Dempsey Tegeler

;

they showed little change from those of the previous period. Trad¬
ing was stimulated by reports of unfavorable weather in parts of
the Cotton Belt, lower than expected ginnings and developments
in the Far East. For the season through last Tuesday, cotton ex¬

5,647 cars, or 0.8% above

were

Although cotton prices moved up at the beginning of the week,

Fractionally Higher in Week

Loadings Point

Car

trading slackened. Cattle receipts fell from the prior week
moderately higher than a year ago. The buying of steers
lagged and prices slipped somewhat. Interest in lambs climbed
appreciably. Prices were slightly above those of a week earlier.
Although lamb receipts matched those of the prior week, they
were up appreciably from the comparable period last year. There
was a moderate rise in lard prices as trading expanded.

•?

Coving-

—

Entwistle, Sr., President
and Treasurer; R. E. Bennett, Jr.,
W. S. Covington, and R. L. Phil¬
lips, Vice-Presidents; and Henry
D. Ledbetter, Secretary.

than expected supplies in Chicago held hog prices
noticeably below those of the preceding week, and as a conse¬
were

'■*

securities.^ Officers

Larger

but

Bank

ers

week earlier.

chases were close to those of a

i-•

ROCKINGHAM, N. C

ers

In the domestic sugar mar¬
ket prices moved up to 1958 highs as trading expanded.
Cocoa
wholesalers reported a considerable decline in prices, but pur¬

weekly production for 1947-1949.

fonTnvestment Company has been,
futmed with offices in the Farm¬

unchanged from the preceding week.

Reduced Somewhat Last Week From
High Level of Preceding Period
The amount of electric energy distributed by the electric light
and power industry for the week ended Saturday, Oct. 4, 1958 was
estimated at 12,111,000,000 kwh., according to the Edison Electric
Institute.
Output registered losses the past week after trending

000 000

substantially higher prices. Although coffee trans¬
increased noticeably during the week, prices remained

actions

«•

~2%' (Specfel 'to. Tits' Financial Chronicle)

and resulted in

weekly production

•

stimulated the buying of rice

weather in growing areas

Bad

Form Covington
Invest.
}"•-S-T.

£,

•

Netherlands, but over-all exports lagged.

flour from the

Electric Output

in flour trading during the;

appreciable dip

was

week, causing prices to fall moderately, despite growing concern ;
over the Far East situation.
Exporters reported some inquiries for

Trade and Industry

The State ei

*•

Thursday, October 9, 1958

(1500)

...

It
I

CANCER

SOCIETY

•

Volume 188

Number 5784

...

The Commercial and Financial Chronicle

(1501)

of this

idea as a reason why the
public should buy common stocks
is again more of an excuse for
'Hgh stock prices than a reason
for buying common stocks.

Securities Salesman's Corner

which
<■

requires close tolerances
high precision and is consid¬

and
ered

one

"Time Out for Some Clear
of

Those

investors

us,

curities salesmen

and

se¬

alike, who have
have

been around for a few years

somewhat

been
the

and

extent

current

uncertain
duration

the

in the prices

upsurge

than

pessimism and deroga¬

year ago

tive

criticism

nomic

future

entire

our

was

eco¬

prevalent

resistance and urges his customer

The

end

Statistics

Emotions

vs.

one who has
watched the ebb and flow of pub¬

lic

excitement

buy
a

and

eagerness

stocks

common

"bull

market"

during such

are

now

year

laboratories,

among

that

witnessing,

and the apathy and
disinterestedness of the same in¬

vesting

public only a few short
ago, could disagree with

months

the

time-tested, adage

proved itself

over

and

that

has

again

over

which goes—"don't argue with the

tape."* There

are

economic

and

financial realities that exist today,
such as the forecast of a $12 bil¬

lion

deficit

between

income

and

outgo of the Federal Treasury for
fiscal 1959; the gradual yet per¬
ceptible "p i c k u p" in business
throughout the economy, * which

our

own

are

but

True

it is

p e o p

throughout the world.

stock

;

must

main¬

tain the solvency of the American

dollar, but the recent Treasury
financing and the current attitude
of

the

Federal

Reserve

Banking
System still does not give rise to

any

imminent fear that the print¬

ing

presses

these

will

United

rent talk

turned

States.

loose

The

of inflation and

the

cur¬

use

this

division

into

other industries to

than

before

ever

vaster

later date.

nation

our

potential

pro¬

duce and to grow,

neither have

changed

basic

our

economic

addition, the
research

line

Tube

Gatps

account is

tion,

$700,000. In addi¬
loss of $235,000 on a con¬

over

future.

that

The

prices.

point

can

made

institutional

buying is in¬
buying, and that since
funds have piled up and are con¬
tinuing to accumulate, the invest¬
formed

ment

appetite

so-called

in¬

formed buyers for stocks must be
satisfied from the existing
supply.
In other words, institutional buy¬
ers are

cognizant of "scarcity" and
are
paying up for equities they
acquire on the basis that this is a
new

the

"era"

and

realities of

yesterday.

you

must

live

today and not of

PRECISION

DUSTRIES, INC. is the
like best.

ment,

four

Monohas

pressive
ord.

this

operates

that I

divisions:

the

im¬
rec¬

During
period

one

the

Timm

Aircraft

Cascade
search

and

Granted, that there is much to
be made of all these factors as to
"why" common stocks are

making

The

company

a s

faced

was

with

Lewis

approximately
at

cated

5,000
who

present
of the

share¬
lo¬

are

states.

It is

anticipated that further ac¬
quisitions, particularly in the elec¬
tronic field, will be made wher\

separate

microwave

metal

fabri¬

components

constituted, ill the next fiscal
with

backlog of

could

have
per

month

year

$2,500,000

over

sales

excess

and

for those accounts that

successor

the

earn

stock

can

afford

sound calculated risk.

is traded

the-Counter

in the

Over-

Market.

Geo. Munsick V.-P.
of Am. Bankers Assn.

Los

Heintz

assume

The

Kaufman

;

George

Munsick,

President

The Morristown Trust Company
acquired by has been
appointed as Vice-Pres¬
Monogram Precision in 1954. Mr. ident of the American Bankers
Benjamin B. Smith, now Presi¬ Association for the State of New
dent, became associated with the
Jersey, it has been announced by
management of the company at Lee P.

Kaufman Co. and

was

this

understood

time.

that

division

could

wave

ferrite

broad

field.

and

development

division
this

has
of

area

try.

been
the

Kentucky.
State

Vice-President

Munsick

will maintain liaison between

national

association

and

the

individ¬

ual banks in New

Jersey. He will
responsible for member¬
activities on behalf of the

ship
the

components
The

ident of the Citizens Fidelity Bank
and
Trust
Company, Louisville,

national association.
be

real

to the future prospects

Miller, newly elected Pres¬

ident of the Association and Pres¬

also

research

done

work

this

Mr.

Munsick

active

very

the New

Jersey Bankers Associa¬

tion,

which

immediate

past President and member of the
Executive

Committee.

served

Treasurer

outstanding in

President

electronic indus¬

sociation.

of the

He
and

also
Vice-

New Jersey

As¬
,.

Most

recently the company
developed a special type of

has

Forms Danz & Co.

microwave tube which will prob¬

ably have wide application in the
missile

and

Hughes
signed an

the

jet bomber field.
Aircraft Company has
agreement

permitting

this division to manufacture

group

veloped

microwave

devices

de¬

by Hughes' research and

development
license

laboratories.

makes

Cascade

available

Division

The
to

technical

(Special to The Financial Chronicle)

SAN

Danz

the

infor¬

DIEGO, Calif.
engaging in

business
Grand

new

name

from

Avenue

—

Herbert

securities

offices
under

1350

the

firm

of Danz & Co.

Alester Furman Branch
ANDERSON, S. C.—Alester G.
Furman Co., Inc., has opened a

mation

branch office at 116 West Whitner

the

Street

developed by Hughes for
production of very wide band

ferrite

isolators.

The Aug. 25 issue of "Electronic
News" has an article with regard
to

new

cushion.

radar system called Pin¬

This

system

said

employ ferrite phase shifters as
electrical couplers in a panoramic
radar network.

under

the

management

William R. Phillips.

This

display

2 With

Bruns, Nordeman

Walter W. Kirsch

Kirsch

are

now

and

Fred

associated

with

Bruns, Nordeman & Co., 321-323
Broadway, New York City.

con¬

the Cascade Division said the firm

engineering for both divisions

is planning to submit proposals to

separate.

gral component of the radar sys¬

Carl

Schick

are

metal

and

clamp di¬
City,

located in Culver

two

tem.

Cascade

have full

fications

on a

was

Ernest

be the

Forms Universal In v.

inte¬

reported

knowledge of the speci¬
for
this
phase shifter

Cady, Jr.

ferrite phase

shifter which would

WOODSIDE, N. Y.—Arnold J.
Utstein

engaging

securi¬

ties business from offices at 48-25

Forty-third Street under the

name
plants of approxi¬
and 26,000 square component and was reported to be of Universal Investors.
feet. At its present rate, this plant hoping that approval of its pro¬
Amos Sudler Branch
will have to be expanded by at posed component would sew up
least one-half as it is understood the assignment and make an open
RIVERTON, Wyo. — Amos C.
that current operations will keep bid unnecessary. Cascade Division Sudler & Co. has opened a branch
this division busy through next has been able to maintain its posi¬ in the Acme Theatre Building un¬
April. The sheet metal division tion in this field as Dwight Cas¬ der the management of Mel Kid¬

mately

the Government

is under one head, although pro¬
duction, sales and management is

Calif,

highs almost daily but (and substantial
long-term debt and a
large deficit in the surplus ac¬
reasons why
this bull market is count.
Today the company is free
justified more in the form of vin¬ of
long-term debt and the surplus
new

here is my point) are not all
these

with

holders

division in this study in that

visions

originally
created

four

sheet

division, the clamp division,

The sheet

Re¬

were

acquired.

conditions and is profit-minded.
The stock has wide
distribution,

Robert Buell Branch
division, and an electronic tube figuration would eliminate delay
time inherent in rotating' type,
division, formerly known as Lewis
BRISTOL,
Conn. — Robert C.
single
dipole
antennas, thus pro¬
& Kaufman. However, for practi¬
Buell and Company has opened a
cal purposes, the sheet metal and viding earlier warning.
branch office at 81 Main Street
Well-informed sources, close to
clamp division will be treated as
under the direction of

Lewis & Kauf¬
man,

cation

Cascade

less

years
gram

currently

Under present manage¬

than

made

one

IN¬

Let Us Admit the Statistics

produces

tubes

vacuum

the

was

Division

of this company in that the micro¬

Security I Like Best

MONOGRAM

company

Microwave

time when the outlook appears tract inherited through the
acqui¬
Yet, may to
have the greatest promise. Of sition of Lewis & Kaufman has
we ask, where is the statistical evi¬
been
particular
absorbed
and
in
the
current
importance, the current
dence that justifies
price-earnings
expansion of operations could be fiscal year over $200,000 in re¬
ratios of 25.30 and even higher of
only
the
initial
move
toward search and development in the
some
of today's market leaders.
building American-Saint Gobain Cascade Division, also subsequent¬
Or, let us go even farther into into a
major factor in the glass ly acquired, has been written off.
the realm of reality and admit
industry as it is my belief that Research and development costs
that many stocks in public favor
this company
was organized
to are now written off as incurred.
are in short supply.
Let us admit enable Saint Gobain to
make a The cash position, however, is on
that -the tax on capital gains is
major penetration of the United the low side due to the recent
freezing stocks in investors'strong States market for
glass products. buildup in inventories necessi¬
boxes and, as the demand accumu¬
tated by increasing orders and the
lates and accentuates, the supply
lime lag in collection of receiv¬
CARL SCHICK
which normally would come forth
ables.
It is estimated that earn¬
Partner: Henry F. Swift & Co.
is nonexistent. There is still one
ings for the fiscal year ended June
Members Pacific Coast Exchange
factor that controls the strength
30, 1958, will be in excess of $135,San Francisco, Calif.
of demand and that is the convic¬
000 after taking into account the
tion.- on the .J>art of buyers that Monogram Precision Industries, Inc.
aforementioned write-off.
purchases made
today will be
For
a
speculative security
Monogram Precision Industries
salable at a higher level in the
stock

the company in a strong financial
position.
Management is extremely ca¬
pable and alert to ever changing"

and

plant,

"kicker"

The

as
originally planned and is for
sale. If the Timm plant is disposed
of at its market value it would
put

Tubes

The

This

top-heavy inventory position of
many industries which has taken
position
to
participate
in
the
place during the past six months.
growing demand for flat glass at
All these factors are "bullish" for

The acquisition of Timm Air¬
craft last year has not worked out

$500,000

complexion. We will have periods currently the backlog in this divi¬
of business growth and
retrogres¬ sion
is
approximately $500,000.
sion and the stock market will The
principal competitors of this
react emotionally just as it is to¬ division
are
Eitel
McCullough,
day. Unless you buy value now General Electronics, United Elec¬
you may well "pay too much for tronics, Amperex and Penta Lab¬
your whistle."
oratories.

scale

one
of the top 10 scien¬
tists in ferrite microwave research.

In comparison
is do¬ cents per share.
with share prices of similar com¬
development
work on other types of tools which panies
the
price of Monogram
are
needed in the various indus¬ stock should command a higher
tries and is currently producing price and should be considered
In

ing

Continued from page 2

peacetime
history; and the reduction in the

common

care

Cascade Research Division—

a
few exceptions is begin¬
ning to feel the brunt of govern¬

spending

take

lessening demands contem¬
plated by the aircraft industry at

with

ment

was

of the

time

same

that

unrealistically re¬
potential, even
though that stock today, has collected g strong public following
of eager .' buyers who are
daily
bidding it up to pew highs, is just
looking for trouble.
Fundamen¬
tally, we have not changed as a

"cold war" and
possible $12 billion deficit, and
the

lated to its future,

faced with the dilerri-

financing

adequately protected by pat¬
Much of the machinery used

ent,

others that have discounted
prospective earnings most gen¬
erously and are today selling at- a new piece of equipment which
prices far and beyond what any has a sale value of $50 as
opposed
informed investor would consider to the lowest
price of 13 cents
an
attractive value.
My point is per clamp.
simply this: afiyone who pays a
Cascade Research Division—
historically high price lor any

are

Certainly

years

many

ago.
Our factories,
and assembly lines
pouring forth an ever increas¬
ing supply of new and better
products that are constantly find¬
ing eager acceptance
not only
a

even

on earnings,
prospects, management,
growth potential. There are

and

lew months ago?

"bull market"
or

still good values

are

future

this

months

away, I certainly don't know. But
there are a number of stocks that

The United States has changed
opinion, and of the only a little fundamentally during
great mass of public investors who the past nine months.
We are
are
today avidly bidding against still the growing, striving, credit
each other for the same stocks seeking, adventuresome, pioneer¬
they would not buy at prices from ing, risk-taking people that we

only

are

buy

may

public

ent levels

Much of the work

sidered

engineered
into common stocks that and built by the company in its
enjoying a wave of current own plant. Market surveys have suitable situations that round out
popularity may garner some quick indicated that these clamps will operations in this field are avail¬
turn profits for his customers but be
required in quantity by the air¬ able on a favorable basis to pres¬
he may also find that the end of craft
and missile industry alone ent shareholders.
this road is disillusionment and at least
In conclusion, it would appear
through 1961. The com¬
disappointment.
pany is introducing these clamps
that the company,
as presently
to

the overall thinking of those who

were

American

are

mold

to 40% less than their pres¬

corporations.

and the customer's represen¬
tative who takes the path of least

and

20%

Who

wants

man

that the general public was more
fearful of a serious business de¬

stocks.
As
perplexing
enigmatic as the public's ap¬ pression than we were of an
petite for stocks may appear to¬ atomic war. Today you hear al¬
day, if you will go back only most nothing of this sort even
nine months you will find that from politicians who
hope to make
the
indecision
and
uncertainty capital out of the economic cor¬
pertaining to the future state of rections that are normal to a
business and stock prices was then capitalist economy such as ours.
both perplexing and bewildering The times have
changed. Optimism
not only to investors but to poli¬ is in the driver's seat and
pes¬
ticians,
market
letter
writers, simism has almost been extin¬
business
forecasters,
commonta!- guished!
tors, and many investment ana¬
It Is a Matter of Emotion
lysts. Why this great change in
common

Who's

situation, when the done by this division is for the
stocks, and when aircraft, missile and electronic in¬
the
market
leader
of
today is dustry.
The metal clamps pro¬
avidly sought after tomorrow, and duced by this division' are used
the game of "follow the leader"
primarily by the aircraft and mis¬
is being played over
and over sile industry. New clamps to meet
again, it is very easy to follow changing needs are constantly be¬
the crowd.
The securities sales¬ ing
developed and. engineered and

for its existence. Less than

reasons
a

rather

excuses

such

public

Thinking"

dications

Now Sell Value

outstanding firms

in this type of work. The custom¬
ers
of this
division would read
like

By JOHN DUTTON

of the

32,000

operates principally in metal work

well,

research

scientist,

con¬

der.

The Commercial and Financial Chronicle

(1502)

...

Thursday, October 9, 1958

* INDICATES

Now

Securities

Addressograph-Multigraph Corp.
141,113 shares of common stock (par $5)
being offered for subscription by common stockholders
of record Oct. 7, 1958 at rate of one new share for each
20 shares held; rights to expire on Oct. 22, 1958. Price—
$62.50 per share. Proceeds—For general corporate pur¬
poses. Underwriter—Smith. Barney & Co., New York.
if Aerocar, Inc., Longview, Wash.
Sept. 29 (letter of notification) 2,000 shares of class B
common stock. Price—At par ($100 per share).
Proceeds
—For

Underwriter—None.

working capital.

Sept. 5 (letter of notification) 125,000 shares of common
Price—$2 per share. Proceeds—For de¬
velopment of an oil and gas property. Office—1305 Con¬
tinental Life Bldg., Fort Worth, Texas.
Underwriter—
Leeford Co., Inc., Fort Worth, Texas."
stock (par $1).

American Box Board Co.

Sept. 11 filed 49,732 snares of common stock (par $1) be¬

ing offered in exchange for Wolverine Carton Co.
mon

com¬

stock at the rate of two shares of American for each

share of Wolverine

offer is subject to

The

acceptance

by at least 95% (23,6*23 shares) of Wolverine common
stock; however, American may declare offer effective
whenever it has been accepted by not less than 80%
(19,983 shares) of the outstanding Wolverine common
stock. The offer will expire at 4 p.m. (EST) on Oct. 27.
American-Caribbean

Co.

Oil

(N.

V.)

Feb. 28 filed 500,000 shares of common stock (par 200).
be supplied by amendment.
Proceeds — To

discharge current liabilities and to drill ten wells.

Un¬

by amendment.

American &

Foreign Power Co., Inc. (10/22)
of 185,000 shares of no par
common stock (public offering of a minimum of 180,000
shares of stock). Price—To be supplied by amendment.
Oct.

filed

maximum

Proceeds—To Electric

Bond

Co.

Underwriters

—Lazard Freres & Co. and The First Boston Corp., both
of New York.
,

American Mutual Investment Co., Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20
per share. Proceeds—For investment in first trust notes,

second trust notes and construction loans.

•

Company

may

develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.
—

American Telemail
Feb.

Service,

17 filed 375,000 shares

Inc.

stock

(par $j

Ampal-American Israel Corp., New York
Aug. 8 filed $3,289,100 of 10-year discount convertible
debentures, series E. Price—61.027% of principal amount,

;

in State of Israel Independence Issue
Issue bonds.
Proceeds—For develop¬

Development

ment and expansion of agricultural, industrial and
mercial enterprises in Israel. Underwriter—None.

Anderson Electric Corp.
Dec. 23, 1957 (letter of notification)
class B common stock (par $1). Price

Proceeds

—

com¬

14,700
—

To go to selling stockholders.

$12

share.

per

Office

—

writers—Scherck, Richter Co., and Dempsey-Tegeler

S. A.,

Inc., Phoenix, Ariz.
Sept. 30, 1957, filed 85,000 shares of " common stock.
Price—At par ($3.75 per
share). Proceeds—For invest¬
ment in subsidiary and
working capital. Underwriter—

Securities, Inc., Phoenix, Ariz.

Arizo?a Public Finance Co., Phoenix,

/ Sept. 2 filed 802,808 shares of
-

issuable

common

Corp., the underwriter, the latter will be entitled

to receive common stock
equal in par value to 10% of the
par value of all stock sold pursuant to this
offering and
subsequent to June 30, 1958. Common shares will
also
be issued in an amount
equal to 5% of the debentures
sold subsequent to that date.

Qrocer*>
Seattle, Wash.
iled 4,788
of common capital stock (par
Epu) and $1,500,000 of 5% subordinated registered debenJure notes, seeond series, and $006,000 of 5% coupon
,

bearer

debentures.

association.

offered

Proceeds —For
writer—None.

working

members

capital.

the

Under¬

Tk Australia* (Commonwealth of)
(10/23)
$25,000,000 of 20-year bonds due Nov,
1,
-1978.

race—To be supplied by amendment.
Proceeds—
various public works
projects. Underwriter—Mor-

Jgtn

Stanley & Co., New York.

—
Baltimore, Md.
Inc., New York/

Arcade

Under¬

Soya Co.,. Inc.

yry,

(10 28)

filed

/-y:Z'/.Z////--.:; /■'

Charles Town Racing Association, tnc.
- /
:
Sept. 9 filed 4,000,000 shares of common stock (par 10 «;
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the >
reftiaihihg 470,0(0(1 shares have feeeh issued /to ^irie per-: ;
sons, who may sell such shares at the market. Price—60
cents

i>er Share.

plant

Proceeds — For construction of racing
acquisition of equipment.
Office—^CharlesUnderwriter—None.
•
y'yy';

and

town, W. Va.

Management Corp. (10/15)
/
400,000 shares of common stock (par 2:
cents.) Price—$1 per share.. Proceeds—To reduce out
standing indebtedness and for working capital. OfficeHouston, Texas. Underwriter — McDonald, Hoi man A

filed

Sept:

rale of one
>

•

April 14 filed 8,934 shares of common stock./ Price—A
par ($100 per share).
Proceeds—rFor general corporat*
purposes
Underwriter — Bankers;.. Bond Co;, Louis

ville, Ky.

.'V Ty-'"•••//

if Benio Minerals,

Inc.

Sept. 25 (letter of notification)
mon
stock.
Price—At par ($1

300,000 shares of com¬
share).-. Proceeds—

Co., New York.

—

■:;

• ■

v;.

issuable

upon

conversion

of which
\

•

new

one

for

each

held

New.York!

y/y
/yy$25,000,000 of - 35-year debentures dire
Proceeds — For construction program and/
to repay advances from American Telephone & Tele¬
graph Co. which owns 29% of the outstanding common

filed

1, 1993.

stock

of the company.
Underwriter—To; be determined
by competitive bidding. Probable bidders: 'Halsey, Stu¬
& Co. Inc.; Morgan Stanley & Co.; The First Boston
Corp.; White, Weld & Co.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT) on Oct. 21 at Room 2315,
195 Broadway, New York, N. Y.
^.y>yy~4 y •r> //

art

Productions/ Inc."
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For working capital.' Office — 937 Acequia Madre
Rd.,
Santa Fe, N. M. Underwriter—Watson & Co., Santa Fe,

June 30

stoek

;

....

14, 1958; rights to expire on Oct. 28. Price—To be
supplied by amendment.
Proceeds—For general cor¬
porate purposes.
Underwriter—Ladenburg, Thalmann

Aug. 27 (letter of notification)- 75,000 shares of

stock

Co., New York.

Clary Corp.

■-»

(letter of notfication) $100,000 principal amount
notes, due Nov. 1, 1973 and 2,000 shares of com¬
mon stock
(par $1) to be offered in units consisting of
$1,000 principal amount of notes and 20 shares of com¬
stock. Price—$1,020 per unit. Proceeds—To repay
existing short term bank loans and for working capital.
Office
328R The Greatroad, Bedford, Mass.
Under¬

mon

—

share for each 12 shares held; (with an oversubscrip¬
privilege); rights to expire on Nov. 7. Price—$4 per
Proceeds—For working capital. Office—408 Jun-ipero St., San Gabriel, Calif. UnderwTiter—None.

tion

share.

Clute Corp.
Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To

additional costs of construction; and for retirement
obligations and working capital. Office — e/o John
Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell, Murphy & Co., Inc., Denver, Colo.

pay

Carrtone

Laboratories, Inc., Metalrie
(New Orleans), La.
July 2 filed 600,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For expansion
working capital and other corporate purposes. Under¬

Harlan

•

Columbia & Rensselaer

Telephone Corp.
(letter of notification) 2,800 shares of common
(no par) being offered for subscription by stock¬

Aug. 4
stock

holders at the rate of

(J. I.)

Co.

(10/16)

held.

Price—$60

per

one new

share for each 2.572 shares

share. Proceeds—For construction
Office—19 Railroad Avenue,

Sept. 26 filed a maximum of $23,000,000 of debentures
due 1983 (convertible into common stock until Oct. 15,

Chatham, N. Y. Underwriter—None.

1968), to be offered for subscription by common stock¬
holders of record on Oct. 14, 1958, on the basis of $100

Dec.

debentures

common

new

of 5%

Case

•

(par $1) to be offered for subscription by common
stockholders of record Oct. 15, 1958 on the basis:of one

if Carman Laboratories, Inc.
Oct.

Suburban Bell Telephone Co.

(10/21)

Cinemark

Canal-Randolph Corp., Chicago, III. (10/14)
Sept. 22 filed 91,662 shares of common stock (par $1) to
be offered for subscription by common stockholders at
of

Underwriter^-F. Eberstadt & Co.,"

Cincinnati

Sept.

limited partnership,

rate

400,000 shares are to be offered publicly arid
40,000 shares to officers and employees. Price—To be
supplied by amendment. Proceeds — To selling stocky
holder.

company

•

Township, N. J. UnderwTiter—None.-

if Chock Full O' Nuts Corp., New Ybrk (*0 23) /
Oct. 3 filed 440,000 outstanding shares of common stock,

ag¬

which notes were assumed by the
Dec. 31, 1957. The notes are convertible al
any time after July 1, 1958, until the maturity or prioi
redemption of the notes at a conversion price of $4 pei

(par '10

section'of Delaware

(par $1)
an

stock

modern general

Oct.

common

$500 and $1,000). Proceeds—To
hospital building. Office—Chapel
Avenue-and Cooper Landing Road in the Cherry Hill/

gregate principal amount of $923,500 of 10-year 3% convertible subordinated income notes of the Calidyne Co.

Underwriter—None.

denominations

erect

v'/yy .V.'

Calidyne Co., Inc., Winchester, Mass.:
230,875 shares of common stock

shares of

for subscription about Oct. 15 by <
stock of Cary Chemicals Inc. at the
share for every four shares of CaiT'Chenii-

cats commo-u
htiij; rights; to expire, on or about
IVoyv 5. ' Priee^$2;' p^/
£
program." Underwriters-rLee Higginson Corp. and P. W.
brooks & Co.", Inc., both of. New York.
yy
v /'

(in

per

mining expenses. Office — 710 S. Fourth St., Las
Vegas, Nev.. Underwriter—None.yV/'V/yy;
'
y

Bowling Corp. of America (10/10-15)
Sept. 11 filed 450,000 units, each consisting of one share
of common stock (par 10 cents) and two common stock
purchase warrants, one warrant to expire-18 months
from the date thereof, exercisable at $3.25 per share, and
one warrant to expire 30 months from the date thereof,
exercisable at $3.50 per share. Prices—$3 per unit.. Proceeds—For working capital. Underwriter—Charles Plohn

165,830

offered

common

if Cherry ,Hill Hospital Realty Corp.
v •
/
Sept. 26, (letter of notification); $300,000 of Series A^ 6%.
debenture bonds due Nov. 1, 1978. Price—At face value

•.•■.yy/y

For

are

to be

holders of.

filed

cents)

Co., Inc., New York.

share.

ISSUE

—

Bankers

REVISED

(no par).

Insurance Co.///
Feb. 28 filed 258,740 shares of common stock (par $1)'
of which 125,000 shares are to be offered publicly and
133,740 shares to employees pursuant to stock purchase/
options. Price—To public, $6 per share. Proceeds—Foj
expansion and other corporate purposes.' Office — At¬
lanta, Ga.
Underwriter—None.. /:
yy yv.."-

ITEMS

/
200,000 additional shares of common stock
Price—To be supplied by amendment. Pro¬
ceeds—For working capital. Underwriters
Goldman,
Sachs & Co., and Blyth & Co., Inc., both of New York./

Oct.

Bankers Fidelity Life

Feb.

Building, Seattle, Wash.

t Central

Chemical

York.

Development

■

per

and

ADDJTION9

SINCE

Central Oils Inc.,
Seattle, Wash.
July 30 filed 1,000,000 shares of common stock. Price—
At par (10 cents per share)./ Proceeds —For drilling
costs/ Underwriter—None. Offering to be made through
A. R. Morris and H. C. Evans, President and Vice-Presi¬
dent, respectively, on a best-efforts basis. Office—4112

Corp. / (10/15)
Sept. 17 filed 25,000 shares of common stock (par 50
cents
Price—$3 per share. Proceeds—To selling stock¬
holders. Underwriter—P. W. Brooks & Co., Inc., New

are

lier registration statement. Under
an
underwriting agree¬
ment between the
company and Public

Price—$605

writer—None.

Ariz.

stock, which

underwriting commissions on the sale of an
issue of $981,700 5% debentures and
9,805,603 shares of
common stock now being offered
publicly under an ear¬

;

Paint

stock.

of outstanding loan

writer—None.

-Co., both of St. Loius, Mo.

Office

working capital.
Baltimore

reduction

writer—P. W. Brooks & Co.

700

Oct. 6 filed 150,000 shares of
outstanding common stock.
Price—To be supplied by amendment
(expected at $10
per share). Proceeds — To selling stockholders. Under¬

Selected

Oct.

Street, Birmingham, Ala. Underwriters—Cruttenden, Podesta & Co., Chicago, 111.; and Odess, Martin
& Herzberg,
Inc., Birmingham, Ala.
• Angelica Uniform Co., St. Louis, Mo. (11/3-7)

for

and

Proceeds—For

unit.

the

N. 44th

Anita Cotore U.

debentures

These

Price—$4 per share. Proceeds—To purchase equipmei;
and supplies and for working capital and other
corporat'
purposes
Office—Salt Lake City Utah
Underwrite
J Amos Treat. &-.Co., Inc., of New York..
Change in Name
>—Formerly United States Telemail Service, Inc.

payable in cash

(10/15)

17 filed

June 4 filed

...

common

Corp.

$2,000,000 of 6Yz% sinking fund deben¬
tures due 1973, and 140,000 shares of common stock (par
50 cents) to be offered in units of $500 principal amount
Sept.

Bankers Southern, Inc.

Price—To

derwriters—To be named

& Chemical

Paint

•

Amber Oil Co., Inc.

•

Registration

Baltimore

•

Sept. 17 filed

for

each

common

held;

rights to expire on Oct. 30, 1958. Price—To be supplied
by amendment. Proceeds—To reduce short-term indebt¬
edness to banks.

Business—Farm machinery, etc. Under¬
writers—Morgan Stanley & Co. and Clark, Dodge & Co.,
both of New York.

new

telephone

plant.

Commerce Oil

Refining Corp.
16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares
f common stock to be
offered in units as follows: $l,00u of bonds and 48 shares
of stock and $100 of debentures —d nine shares of stock.
Price—To be supplied by amerw-nent.
Proceeds — To
construct

if Case

(1. I.)

Co.
Oct 3 filed 50,000 warrants for the purchase of 45,000
shares of common stock (par $12.50) and 90,000 shares of
6V£% second cumulative preferred stock, together with
an equal amount of the common and
preferred shares.
Each

warrant

not later

entitles

than 2

nine-tenths of

p.m.

one

holder thereof to purchase,
Feb. 2, 1959, an aggregate of

the
on

share of

common

stock and four-fifths

shares of preferred stock of the Case Company.

$16 for
stock

each

and

aggregate

of one-half

Price—

writer—None.

refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.

if Commonwealth Edison Co.
Oct. 8 filed 100,000
in connection with
1958

shares of
a

common stoek, to- be issued
2% stock dividend payable Nov. 1,

to stockholders of record

Sept. 22, 1958 at rate of

one

share for each 50 shares

and

Glore, Forgan & Co., both of New York.

held.

Price
At market.
Proceeds—To stockholders wishing to receive- cash in¬
stead of stock. Underwriters — The First Boston
Corp.

common

share of preferred stock. Proceeds—To
he added to the general funds of the company.
Under¬
one

York

•

Consolidated

Cuban

Petroleum

—

Corp.

July 1 filed 419,000 outstanding shares of common stock
(par 20 cents). Price—Related to the current market

Volume 188

Number 5784... The Commercial and Financial Chronicle

(1503)
price on the American Stock Exchange.; Proceeds—To
gelling stockholders. /Underwriter—None. Statement ef¬
fective Sept. 26.
J -/.
/ V

o
Cryogenic Engineering Co.
>
i;
Sept 22 (letter of notification) 150,000 shares of class A
common stock
(par 10 cents). Price—^$2 per share. Pro¬
ceeds
For repayment of
loan; purchase of plant and

Consumers

Power Co.

///x/.

W- -"'/v'/ " '/T

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬

office

pay short-term bank loans and for expansion and im¬
provement of service facilities. Underwriter
Morgan
Stanley & Co., New York. Offerings-Postponed indef¬
initely.
; .'V
V"" •*.'■/■•'
•'

Broadway, Denver, Colo. Underwriter-—L. A. Huey,
Denver, Colo.
v

equipment; raw materials and supplies; and for
working capital, etc. Office—U. W. National Bank
Bldg.,
1740

—

I v.

Connector

Corp.,

Woodside,

N. Y„

Havana, Cuba

representing the ownership of

Underwriter—H. M. Byllesby &
Co., Inc.", Chicago, 111. ^

ment.

Feb.

cent),
Louis.

Robert H. Green is President,

■■/■'

Underwriter—None.

Derson Mines Ltd.

Proceeds^—For investment.
Research" Sales Corp.,, St

Counselors

—

expenditures, exploration

costs and other corporate
purposes.

Research

Price—At market.

'Underwriter

one share
(par one-half cent) in each of 24
companies. < Price — To be supplied by amend¬
Proceeds—dTor capital

stock

common

Cuban

Fund, Inc.,' St. Louis, Mo.
filed 100,000 shares of capital
stock, (par one

Dow Chemical Co.,
Midland, Mich.
Sept. 11 filed 175,000 shares of common

j
(18/13)
stock (par $5)

to be offered to employees of the
company^ its subsidi¬
aries, and certain associated companies;
subscriptions
will be accepted from Oct. 13

through Oct. 3L By a
registration statement the company plans
to
12,500 additional shares of the said stock to em¬
ployees of Dow Corning Corp., a 50%
owned subsidiary
of the corporation.
*
\
offer

March 31 filed 767,838 units of
voting trust certificates,
each certificate

I.,

Sept. 25 filed 125,000 shares pf class A stock (par $1).
Price—$8 per share, proceeds—To selling stockholders.
Counselors

Office—Toronto, Canada, and. Em¬

porium, Pa/Underwriter—None.

separate

Cuban-Venezuelan Oil Voting Trusts,

Continental

corporate purposes.

59-

Oct. 3 filed 228,950 shares of common
stock (par
$100)
of which 108,950 shares
will be sold for account pf
idl¬
ing stockholders. Price—To be

supplied; by amendment
Proceeds—To provide added
working capital to carry
increased inventories and receivables.
Business
A
processor of "Mott's" apple
products, "Sunsweet" prune
juice, and "Clapp's" baby foods.
Underwriter—Kidder,
Peabody & Co., New York. Offering—Expected late iri
October or early in November.
—

June 5 filed 350,000 shares of

stock.

common

Price—$1

share. Proceeds—For new
equipment, repayment of
loan, acquisition of properties under option, and other
per

.!./■'

if Duffy-Mott Co., Inc., New York

;;

★ Eastern Stainless Steel Corp.

(18/28)

Oct. 6 filed

NEW ISSUE CALENDAR

tures due

holders

/</--

October 9

(Thursday) '",!/?.

EDT)

a.m.

*'/

515.6

V
Norfolk
.a''Vv?' - • '

& Western
-s

(Bids

210

shares pf preferred and

received)

October 10
!

■

Ploii'n

Charles

(Milton

October

Ctfs.

(Milton D.

Co. I

$1,350,000

underwriting)

175,000

;

(J-

A. Hogle &

Co.)

.....Vy-,,

Co.)

T''

$500,000

■?

common

/•
"

-v

(Joseph)

(Offering

r:v Idaho

;

The

EDT)

a.m.

Baltimore Paint

$15,000,000

Brooks

Co.

Corp/ //

Inc.),

;

Electric

(Stone

(Scherck,

540,000

Curtis)

Weld

/// '.

Co.

and

Moroney,

(Offering

to
Co.

'"Florida

(Charles Plohn &

and

Clark,

Beissner

Dodge

(William

s.ry.-i

■

roffering

IVJ-'-.r.4

Co.), $6,500,000

500,000

(Monday)

Street

(Bids

December 9

a.m.

Union

rw>t**r

$80,000,000

(Tuesday)

(Tuesday)
$70,000,000

(Thursday)
Equip. Trust Ctfs.
$6,450,000

Postponed Financing
(Morgan Stanley & Co.) $15,000,000

Gulf States Utilities Co.,

Inc.)

$25,000,000

Laclede Gas Co

Co.

Michigan

Bell

Montana

Power

Bonds

Co.,

Inc.)

$300,000

The

First

invited) $10,000,000

—.Common

Boston

Loeb

invited)

'Bids
-

P3
(Thursday)
Australia (Commonwealth of)—

—Bonds

and

..—Bonds

Lehman

Brothers) $24,000,000

invited)

Bonds
$8,000,000

South Carolina Electric & Gas Co
,

Bonds

Chock

Stanley & Co.)

$25,000,000

Full O'Nuts Corp

(F. Eberstadt

Common
Co.)

400,000 shares

Debentures

$40,000,000

Pennsylvania Power Co

Corp.)
-

\(Bids to be invited) $20,000,000

(Kuhn.

185,000 shares

Moore-McCormack Lines, Inc

(Wednesday)

and

to be

Telephone

(Bids

..—Preferred

Securities

$17,000,000

(Tuesday)

EDT)

Bonds

(Bids to be invited)

$500,000

cover

Bonds

'Bids to be invited) $10,000,000

Southwestern Bell Telephone Co

Debentures

'Bids to be Invited) $110,000,000

Utah Power & Light Co......
(Bids to be Invited)

$20,000,000

Price—

operating

during the development period of the corpora¬
Underwriter—None.

expense

Exploration Service Co., Ltd., Far Hills, N. J.
Aug. 11 this company and Amkirk Petroleum
Corp.
(latter of Fort Worth, Texas) filed $400,000 of
working
interests (non-producing in Stnu
Valley Project), to be
offered for sale in $12,500 units
(of which $8,000 is pay¬
able in cash and $4,500 is to be
represented by promis¬
sory notes).
Proceeds—Exploration Service Co. to ac¬
quire 80% interest in a certain concession from Amkirk
and for exploration
program.

Far

Hills, N. J.

Underwriter—Cador, Inc.,
'

Federal Commercial Corp.
May 21 (letter of notification) 300,000 shares of common
stock (par 10
cents). Price—50 cents per share. Pro¬
ceeds—To make loans, etc. Office — 80
Wall

St., Ne*
York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.
* /
(10/28)

Oct. 6 filed 300,000 shares of common stock
(no par).
Price—To he supplied by amendment. Proceeds —
To
provide additional electric facilities and for other
cor¬
porate purposes. Underwriters—Merrill
Lynch, Pierce,
Fenner & Smith and

Kidder, Peabody & Co., both of

New York.
a

Florida Water & Utilities Co.

(10/16)

Sept. 4 filed 55,000 shares of common stock (par
$1).
Price
$7 per share. Proceeds
Together with other
funds, to be used to reduce the company's
indebtedness,
for working
capital, and for property additions and im¬
—

Underwriter

Petersburg, Fla.

—

Beil

Hough,

Inc.,

$t.

Forest Laboratories, Inc.
March 26 filed 150,000 shares of
capital stock (par 16
cents). Price—$2.50 per share. Preeeeda—For sales pro¬
motion

of company's
products, working capital, addi¬
inventory and accounts receivable, for research
and development and for other
general corporate pur¬

tional

poses. Office—Brooklyn,
to be amended.

N. Y. Underwriters—Statement

Fremont Valley Inn
"""
Aug. 6 (letter of notification) 300,000 shares of commdn
stock. Price—At par ($1
per share). Proceeds—Tq, erect
and operate an activities
building, comprising a restau-.
rant, cocktail lounge and coffee shop. Office—3938 Wilt¬
shire Blvd., Los
Angeles, Calif. Underwriter—Oscar Q.
Werner & Co., Pasadena, Calif.
•

Preferred

Debentures

Consumers Power Co

Inc.)

Ethodont Laboratories, Berkeley, Calif.
Feb. 20 filed 300,000 shares of common stock.
At par ($5 per share).
Proceeds—To

provements.

(Tuesday)

Bids to be received)

;

Sales,

American. & Foreign Power
Co., Inc
-

Underwriter—Bateman, Eichler & Ce.,

Los Angeles, Calif.

—

Equip. Trust Ctfs.
$5,310,000

invited)

December

.\____Debentures

Freres

Corp.)

•

United Cities Gas Co.___

(Lazard
-----' •'

(Thursday)

Norfolk & Western Ry.—_—

........Common

Corp

(Beil & Hough,

ing stockholders.

and

Corp.Common

3,000,000 shares

October 21

Cincinnati & Suburban Bell Telephone Co.—Debi.

-r

common

Southern Bell Telephone &
Telegraph Co.—Debens.

(Bids

Class A

(May be Merrill Lynch, Pierce, Fenner & Smith) 700,000 shares

GOO.OOO shares

Dillon,

$20,000,000

(Monday)

(Eastmatfc

Bonds

Plymouth Bond & Share Corp.,
Securities Corp.)
$600,000

December 2

Public Service Electric & Gas Co.-,—Common

Webster Securities

Scudder Fund of Canada, Ltd
75
(Lehman Brothers and William

••

Co.)

•

October

"X*"'

EST)

to, be
Price—At market (es¬
share). Proceeds—To sell¬

sold in State of California
only.
timated at about $12.25 per

ic Florida Power & Light Co.

(Thursday)

(Bids to be received)

Co.;

(Bids

$23,000,000

_________

(White, Weld & Co. and Stone

Finance

-Common
Dempsey-Tegeler

(Bids to be received)

Common

Co.)

$10,000,000

Pacific Telephone & Telegraph Co

_-Common
stockholders—^Bearr?Stearns*&'Co.)'
1,488,433 shares
/

to
'

•-

Union

a.m.

November 18

Staats

•

„.

November

$385,000

Transcontinental Gas Pipe Line
-i.

and

Norfolk & Western Ry.

....Common

Hough, Inc.)

Penh-Texas Corp.

Co.)

Water & Utilities Co
&

Corp.)

(Monday)

100,000 shares

(Thursday)

Pauley Petroleum, Inc
■.

Co.

Clayton

—Debentures
stockholders—underwritten*by Morgan Stanley &

(Boil

Preferred
Securities

Perrine Industries, Inc

?Case (J, I.) Co.__—
"

and

Debentures

$15,000,000

Debentures

October 16

Debens.
Co.;

$50,000,000

Webster

(Bids

Common

Webber, Jackson

Corp

Forgan

Co.)

EDT)

noon

Richter

$300,000

Co.

Weingarten (JO, Inc.__

Glore,

(Paine,

$30,000,000

Credit

Co.;

Blair

November 10

: t»v.

Inc.)

Indiana & Michigan Electric Co

Paper Co
.-Debentures
-•//''.
(Blyth & Co., Inc.) $10,000,000
Precise Development Corp.„___Preferred & Com.

November

Common

Inc.)

$8,000,000

$1,500,000

Common

165,000 shares

(Offering?to stockholders—no underwriting)

(White,

Co.,

.......

Electronic Specialty Co., Los
Angeles, Calif.
(letter of notification) not in excess of
aggregate value of common stock (par 50 cents)

tion.

Angelica Uniform Co.—i

Common

National Shares Corp

Co.,

Bonds
Preferred

(Wednesday)

November 3

Common

(Blyth & Co., Inc. and McDonald & Co.)

(Bids

$2,420,000./

Hauserman (E. F.) & Co

Puget Sound Power & Light Co

Common

Holman

—Common
Inct)/*$l,126,000

$10,000,000

EST)

Harvester

Stanley

(Offering to stockholders of Cary Chemicals Inc.—underwritten
by Lee Higginson Corp. and P. W. Brooks &
Co., Inc.) $331,660

Debentures
&

William

'MrDonald, Holman & Co., Inc.)' $400,000

(R.

300,000

Co.,

EST)

noon

(Blyth

(Morgan

Chemirad Corp.

Sanborn

Common
& Smith and

Common

Co.)

noon

(Bids

International

Tampa
:

Baltimore Paint & Chemical Corp
////;.:
(P. ,W. Brooks & Co., Inc.) $75,000
Bankers Management Co

Oxford

Debentures
Hornblower

Together with

Aug. 8

Co., Inc.)

$5,123,600

••»/', Debentures
(P.

(Wednesday)

& Chemical

Blyth

Service Co.—

Co.
-

First

Burnside

(Bids

...

Bonds

11:30

October 15

•;

Glidden

Debentures
by

and

Weeks)

Peabody

...v.

Corp.)" $2,538,900

...

—

approximately $4,000,4V2% notes, to increase plant facilities, and to
finance additional inventories.
Underwriter—Hornblower
& Weeks, New York.
{
000

Common

October 29
Common

Co._

(Bids

Kidder,

Co_i-__^___,__.__

Boston

Power

662

25,000 shares

(Tuesday)

Texas Electric Service Co..

to* stockholders—underwritten

91,

Texas Electric

stockholders—underwritten-Ladenburg,

Thalmann & Co.)

■

.Horne

^y.-\

Co., Inc.)

stockholders—underwritten

(Willis

(Offering

$500,000

General Aero & Electronics
Corp.T_

Com.

October 14 (Tuesday) ;,.
Canal-Randolph Corp
.i-i.

50,000

•:/ ,/./

to
,

$252,000

(Moroney, Beissner & Co.) $1,600,000 of debentures and

;

«fe

Florida Power & Light Co
vyf
(Merrill Lynch, Pierce, Fenner

Weingartea Markets Realty Go.-—
T - ~—*
''
-~r
/
Debentures & Common

(Offering
-:y ;

Magna Investment & Development Corp

Inc.)

Eastern Stainless Steel
Corp

.....Common

(J- A. Hogle &

J ,v;

Co.,

be supplied by amendment. Proceeds
other funds, will be used to retire

.Common

200,000

Magna Investment & Development Corp.__Debens.

•

Blauner

•

(Monday)./

; <

Inc

(Goldman/ Sachs & Co.

Dow Chemical Co.___
/. / * (Offering to employees—no

Debentures

Central Soya Co., Inc

Common

Blauner

for each 14 shares of common stock held
about
Oct. 28, 1958; rights to
expire about Nov. 11. Priced—To

(Monday)

October 28

(Friday)

Tenney. Engineering,

$7,440,000

viJBowling.Corp. of America
•

tures

October 27

Engineering, Inc

commons

Ry._/__Z____Equip. Trust

Tenney

(BM& 11

^;}

;

•

Arabol Manufacturing Co:—Preferred & Common

$5,123,600 of convertible subordinated deben¬
Noy. 15, 1973, to be offered initially to. stock¬
the basis of $100 principal amount of deben¬

General

Aero & Electronics
Corp. (10/28)
Sept. 29 filed 500,000 shares of common stock (par 10
cents), of which 100,000 shares are to be sold for the
account of selling stockholders.
Price—$2.25 per share.

Proceeds—For acquisition of stock of National Missile &
Electronics Corp., additional working capital and
otl\er
corporate purposes. Underwriter—Willis E. Burnside &
Co., Inc., New York.
General Aniline & Film
Corp., New York
Jan. 14, 1957 filed 420.98b shares if common A
stock (up
par) and 1,537,500 shares of common B stock (par
ft).
Proceeds—To the Attorney General of the United

Statpsu

Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth & Co„
Inc., and The Firpt Bea¬
ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan ft Co. (jointly). Bids—Bad
been scheduled to he received
up to 3:45 pjn. (EDT) oo
May 13 at Room 654. 101 Indiana Ave., N. W.
ton 25, D. C., but
bidding has heen postponed

Bonds

Continued

page

The Commercial and Financial Chronicle

Continued from page

(letter of notification) $75,000 6% convertible
debentures due June 15, 1973 to be offered in denomina¬
Sept. 10

N. J.

(letter of notification) 40,000 shares of com(par $1) to be offered for subscription bj
etockholders at the rate of approximately 18.5 sharei
'Cor each 100 shares held about April 15; unsubscribed
shares to public. Price—$3.50 per share. Proceeds—Pol
^expansion, equipment and working capital.- Underwriter
March 31

stock

'tnon

—None.
4

General

'■

Public Utilities Corp.

1 filed a maximum

Oct

530,000 shares of common stock

(par S5) to be offered for subscription by common stock¬
holders at the rate of one new share for each 20 shares
held. Price—To be supplied by amendment. Proceeds—
To pav short-term
ments" in domestic

bank loans and for additional invest¬
subsidiaries. Clearing Agent—Merrill

Offering-

Lynch. Pierce, Fenner & Smith. New York.
Expected, in November.
*
it Glidden Co.

Underwriter

bank loans, etc.

}jay

—

Blyth & Co.. Inc.,

New "York.

18 filed 484.000 shares of class A stock (par It
cents). Of this stock, the company proposes to offei

Aug.

•400,000 shares and certain selling stockholders 40,00C
chares, the remaining 44,000 shares being subject tc
option to be offered for the account of the underwriters
j»rice—To be supplied by amendment.
Proceeds—Foi
•working capital and other corporate purposes. Under¬
writers—Joseph Mandell Co. and Louis L. Rogers Co.
both of New York, on a best efforts basis.

Aug.

(letter of notification) 31,011 shares of com¬
(par $1) to be offered to stockholders on the
one new share for each seven shares held; warexpire Oct. 20, 1958. Unsubscribed shares to be
to public.
Price—S3 per share. Proceeds—For
funds to be used for expansion. Office—119 W.
Blvd., Fort Wayne, Ind. Underwriter—North¬
Investment 3nct. 502 Gettle Bldg., Fort Wayne,

stock

'basis of
.rants to

offered

general
Rudisill
western

Ind.

Guardian

Insurance

Corp., Baltimore, Md.
Aug. 16. 1957, filed 300,000 shares of common stock, o)
which 200,000 shares are to be publicly offered and the
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which
"warrant

expenses

are

to be sold

at 25 cents pei

organizers,

incorporators,
management
mnd/or directors.
Price—$10 per share. Proceeds—Foi
-working capital and general corporate purposes. Under¬

and operating expenses and for operating
capital. Office—210 North 30th, P. O. Box 5070, Boise,
Ida. Underwriter—First Idaho Corp., Boise, Ida.
Idaho Power Co.

Lazard

•

by competitive biddings Probable
Stuart & Co. Inc. jvBlyth. & Co.,, Inc.,
Freres & Co. and The First Boston Corp. (joint¬

Halsey,

Lynch, Pierce, Fenner & Smith; Salomon
Dillon, Union Securities &
Co. (jointly); Equitable Securities Corp.; Kidder, Peabody & Co., and White, Weld & Co. (jointly). Bids—

poned.
(£. F.)

& Co.

received

Indiana

up to 11:30 a.m. (EDT) on Oct. 14 at
Co., 16 Wall St., New York 15, N. Y.

Michigan

Electric Co.

(11/6)

(10/15)

Sept. 23 filed 165,000 shares of common stock (par $1),
of which 73,1)00 shares are to be sold for account of
•company and 92,000 shares for selling stockholders. Price
—To be supplied by amendment.
Proceeds—For plant
expansion. Underwriters—Blyth & Co., Inc., New York,
atnd McDonald & Co., Cleveland, Ohio.

by competitive bidding.

Probable bidders: Halsey, Stuart
Inc.; Eastman Dillon, Union Securities & Co.; The
First Boston Corp.; Harriman Ripley & Co. Inc. Bids—
Expected to be received up to 11 a.m. (EST) on Nov. 6.
Industrial Minerals Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par
2ent). Price—$1 per share. Proceeds—To develop
jperate graphite and mica properties in Alabama.
ierwriters—Dearborn & Co. and Carr-Rigdom &
both of Washington, D. C., on a best efforts basis.

one

and
Un-

Co.,

it Industrial Plywood Co., Inc.
Sept. 29 (letter of notification) 37,100 shares of common
(par 25 cents) to be issued to stockholders upon

stock

stock of record
share for each

Oct.

15,

1958, at the rate

10 shares then held. Price—

supplied by amendment. Proceeds — To become
part of the general funds of the company and will be
applied toward the cost of the company's construction

—Garden

City, L. I., N. Y.

Underwriter—None.

Oct. 3 filed 50,000 shares of capital stock, to be offered
for subscription by holders of outstanding stock, on a

rata basis. Any shares not

pro

sold will be offered

exchange basis to holders of outstanding 5% sinking

fund debentures. Price—$10.50 per share to

stockholders;
$11.50 to public. Proceeds—$328,300 to redeem outstand¬
ing 5% sinking fund debentures and $189,200 to reduce
short term bank loans.
Office—Los Angeles, Calif. Un¬
derwriter—Quincy Cass Associates, Los Angeles, Calif,
Lowell Gas Co., Lowell, Mass.
Aug. 28 filed 15,400 shares of common stock (par $25).
Of this stock, 12,000 shares are being offered in behalf of
the issuing company and 3,400 shares by American Busi¬
ness Associates, present owner of 68,178 (98.86%) of the
68,962 outstanding shares. The 12,000 shares are being
offered for subscription by existing stockholders at the

rights to expire on Oct. 10. The parent will *
not exercise its rights to its pro rata share. Price—$45
per share. Proceeds—Together with other funds, will be
applied to pay short-term construction notes payable to
banks, and any balance will be applied to reimburse the
company for expenditures made for property additions.

Office—105-15

180th

Street, Jamaica 38, N. Y.

Under¬

writer—None.

stock (par it
•ents). Price—To be related to the market price. Pro¬
ceeds—For working capital and to enlarge research and
levelopment department. Underwriter — S. D. Fuller 4

Co., New York.

Offering—Being held in abeyance.

it International Harvester Credit Corp. (10/29)
Oct. 9 filed $50,000,000 of 21-year debentures, series A,
due 1979. Price
To be supplied by amendment. Pro¬
ceeds-—For purchase of receivables and to reduce shortterm borrowings. Underwriters—Morgan
Stanley & Co.,

new

shares for each

shares owned

of.

Sept. 17;

Underwriter—F. L. Putnam &

Co., Inc., Boston, Mass.

LuHoc

Mining Corp.
Sept. 29 filed 350,000 shares of common stock. Price—$1/
per share. Proceeds — For the acquisition of properties
under option and for various geological
expenses, test
drilling, purchase of equipment, and other similar pur¬
poses.
Offices—Wilmington, Del., and Emporium,- Pa.
Underwriter—None.

—

it M. C. A. Credit Co., Inc., Miami, Fla.
Oct. 6 filed

Glore, Forgan & Co. and William Blair & Co.

Walter

Itek Corp.
Sept. 15 (letter of notification) 9,340 shares of
stock (par $1) to be-offered for subscription by
stockholders

held.

basis

one

Unsubscribed shares to

for

be sold

each

& Share
common

•

certain

stock¬

holders. The offering wall be made sometime in October.

Price—$30 per share. Proceeds
For working capital
acquisition of a plant site. Office—1605 Trapelo Rd.,
Waltham, Mass. Underwriter—None.
—

and

•

1973, and 230,000 shares of common stQCk (par $1) Jp be
bonds and 10 common shares
(5 of which will not be separately transferable from the
bonds to which they pertain prior to Dec.
1, 1959). Price
—To be supplied by amendment
(reported to be about
$112.50 per unit).
Proceeds —For completion of the
Latonla plant, and for general coroorate
purposes,
Un¬
derwriters—The Kentucky Co.,
Louisville, Ky., and
Scherck, Richter Co., St. Louis, Mo.
;

Heller & Co.
Underwriter—Plymouth Bond
Corp., Miami, Fla.

Magna Investment & Development Corp.
(10/13-14)

common

100,000 shares of common stock. Price—$5
Proceeds—To reduce current indebtedness to

share.

per

offered in units of $100 of

new

Long Island Casualty Insurance Co.
Sept. 29 filed 100,000 shares of capital stock (par $2.50)
to be offered for subscription by holders of the com¬
pany's presently outstanding 55,975 shares.
Price—$6
per share. Proceeds—To be added to capital funds. Office

rate of two

ing

common

darch 28 filed 1,000,000 shares of
capital stock (par $1).
frice—$5 per share. Proceeds—To acquire stock control
if "young, aggressive and expanding life aftd other inmrance companies and
related companies and then to
operate such companies as subsidiaries."-Underwriter—
rtrst Maine Corp., Portland. Me/

purchase 21,200 shares in units of 1.06 shares at $5 per
unit, and 15,900 shares in units of 1.06 shares at $3 per
unit. Proceeds—For working capital and general funds.

Kentucky Jockey Club, Inc., Louisville, Ky.
Sept. 26 filed $2,300,000 of 6% first mortgage bonds due

one

Corp. i*V

exercise of warrants, expiring at 3 p.m. Dec. 31, 1958 to

it Hawaiian Electric Co., Ltd.
Oct. 8 filed 84,750 shares of common stock (par $20) to
fee offered for subscription by holders of its outstand¬
of

,•

<•'

Insurance Securities

ic Los Angeles Drug Co.

filed $20,000,000 of first mortgage bonds due
Nov. 1, 1988. Proceeds—To retire bank loans used for
construction program.
Underwriter—To be determined
26

Industro Transistor Corp. (N. Y.)
28 filed 150,000 shares of common

(jointly); Stone & Webster Securities Corp.; and Salo¬
mon Bros.
& Hutzler and Eastman Dillon, Union Se•curities & Co. (jointly). Bids—Had been expected to be
^received on Sept. 15, but has been indefinitely post¬
Hauserman

Bankers Trust

Sept.

Life

determined

bidders:

Underwriter—None..

17 filed $15,000,000 of first mortgage bonds due
Proceeds—To reduce bank loans.
Underwriter—

1988.

(10/14)

Leader-Cleveland Realty
Associates, N. Y.
Ally 16 filed $1,280,000 of participations in partnership
Price—$10,000 per participation. Proceeds—
To purchase the Leader Building in
Cleveland, Ohio.

interests.

of setting up production and distribution; man¬

Teb.

Utilities Co.

Aug. 14 filed $17,000,000 of first mortgage bonds, serie?
A, due 1988. Proceeds—Together with cash on hand, to
redeem and retire $17,000,000 principal amount of 4%%
first mortgage bonds due 1987. Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Merrill
Lynch. Pierce, Fenner & Smith and White, Weld & Co.

May 26 filed 56,000 shares of

common

jf 6% convertible debentures.

stock and

$500,000

Price—For debentures, at

?af (in $1,000 units); and for common stock, $4.50 per
ihare. Proceeds—For contractual

obligations, for workcapital, and ether general corporate purposes. BusiTo engage primarily in the development and
iperation of various properties, including shopping cenr
ers.
Office—Salt Lake City, Utah. Underwriter—J. A.
Hogle & Co.. Salt Lake City, Utah.
ng

oess

—

Mairs & Power

Fund, Inc., St. Paul, Minn.

Aug. 6 filed 40,000 shares of
market.

Proceeds—For

National Bank

common

investment.

stock. Price—At

Office—1002

First

Bldg., St. Paul, Minn.

Martin

fered for public sale. Price—$100 per $100 of debentures.

Oct. 6 filed 2,260

Proceeds—For working capital and for general corporate
purposes. Office—1426 West Front St., Plainfield, N. J.

it Kerr-McGee Oil Industries, Inc.
participations in the company's Thrift

Co., Baltimore, Md.
$25,000,000 of sinking fund debentures, due
/uly 1, 1978. Proceeds — Working capital and general
corporate purposes. Price—rTo be supplied by amend¬
ment. Underwriter—Smith, Barney & Co., N. Y. Offerng, which was expected on July 2, has been postponed,

Plan

(ssue

program.

Underwriter—None,

■*

Haydu Electronic
Sept. 3 (letter ^

products, Inc.
flMification) $300,000 6% convertible

Tlibordmated debentures

Underwriter

—

due

Dec.

31,

1968.

To be of¬

Berry & Co., Plainfield, N. J. and New

York, N. Y.

Hoagland & Dodge Drilling Co., Inc.
June 12 filed 27,000 shares of capital stock. Price—$10
per share.
Proceeds—To be used in part for the ex¬

ploration of mines and development and
mines and in payment of indebtedness.
Ariz. Underwriter—None.
-

operation

of
Office—Tucson.
'

basis of $100 of debentures for each

common

Plan

710 participations in the
company's Savings
(together with 74,167 shares of Kerr-McGee com¬
and

stock

which may be purchased
pursuant to such
plans), to be offered for subscription by employees of
Kerr-McGee and General Asphalts,
Inc., and Lake As¬
phalt & Petroleum Co.
mon

Kinsman
Manufacturing Co., Inc.
Aug. 25 (letter of notification) 1,482 shares of common
stock (no par). Price — $100
per share. Proceeds
To
—

off short-term obligations and to improve working
capital. Office—90 Mill St., Laconia, N. H. Underwriter

pay

Home (Joseph) Co.
(10/14)
Sept. 25 filed $2,538,900 in convertible subordinated de¬
bentures due 1973, to be offered for subscription by
common
stockholders of record Oct. 14, 1958 on the
shares

held; rights to expire on Oct. 28. Price—To be supplied
by amendment. Proceeds—Together with other funds,
will be used primarily to acquire furniture and fixtures
and to provide working capital for the opening of two
new stores.
[Pending the opening of these stores the
.

class B share). Proceeds—For

ufacturing

writer—None.

Gulf States

unit to stockholders (each unit consisting of

$85 of debentures and one

& Co.

Insurance Co.

Great Northern Life

mon

and $100 per

Bros. & Hutzler and Eastman

Realty Corp., N. Y.

•

common

stock (par 10 cents) to be offered in units of $100 of
$500 each. Price—At par. Proceeds
debentures and 30 common shares. Price—$100
of debt and for working capital. Office
per unit.
—Clinton, N. Y. Underwriter—Mohawk Valley Invest- {j Proceeds—Together with a $175,000 mortgage loan from
the American Brake Shoe
Ing Co., Inc., Utica, N. Y.
Co., will be used to meet ex¬
penditures in acquiring latter company's South San
Idaho Manufacturing Co., Inc.
Francisco foundry and for working capital. Offices—Las
Aug. 22 (letter of notification) 2,000 shares of class A
Vegas, Nev., and South San Francisco, Calif. Underwriter
stock (par $15), $170,000 of 6% subordinated debentures
—Sam Watson Co., Inc., Little
Rock, Ark., on a best
and 2,000 shares of class B stock (par $15) to be offered
efforts basis.
first to stockholders. Price—$15 per share for class A

ly); Merrill

Great American

30,1968, and 150,000 shares of

tions of $1,000 and

Sept.

(10 29)

bentures due June

—For repayment

•

Dct. 7 filed $30,000,000 sinking fund debentures due 1983.
jpiice—To be supplied by. amendment. Proceeds—To re-

Thursday, October 9, 1958

Laughlin Alloy Steel Co., Inc.
Aug. 28 filed $500,000 of 6% subordinated callable de-

Household Gas Service, Inc.

General Devices, Inc., Princeton,

...

(1504)

—None.

Laclede Gas Co.
June
1983.
iue

filed $10,000,000 of first
mortgage bonds due
Proceeds—To refund 4%% first
mortgage bonds

Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
Cnc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman
Srothers, Merrill Lynch, Pierce, Fenner & Smith and
tive

(jointly); Eastman Dillon, Union

proceeds will be used to reduce or eliminate seasonal
bank borrowings.] Business—Department store. Under¬

Securities & Co.; Stone & Webster Securities Corp.
—Had been expected to be received

writer—The First Boston Coro.. New York.

Bids

to 11 a.m. (EDT)
July 8, but offering has been postponed indefinitely.
up

remain

Mason

Aug.

in registration.

Mortgage & Investment Corp.
filed

$6,000,000

of warranty and repurchase
5,000 shares of cumulative preferred
stock, 6% dividend series, the latter shares to be offered
principally to holders of whole mortgage notes and re¬

agreements

lated

and

warranty

agreements, although the company re¬
right to offer such stock to others. Priced—
stock, at par ($200 per share). Proceeds—
To be used principally for the purchase of additional
mortgage notes for resale to others. Office—2633 15th

serves

the

For preferred

Street, N. W., Washington, D. C.

Underwriter—None.

Mayfair Markets
March 24
(letter of
.

1982.

'leinholdt & Gardner

/une 11 filed

notification) 5,000 shares of 6%
stock (par $50) and 5,000 shares
(par $1) to be offered in units of one
ihare of preferred and one share of common stock. Price
—$60 per unit. Proceeds—For working capital. Office—
mmulative

preferred

stock

common

4383

Bandini

Blvd., Los Angeles, Calif.

Underwriter

None.
•

Mid-West Durex Co., Kansas
City, Mo.
/uly 14 filed 725,OQO shares of common stock (par $1).
Proceeds—For construction of
plant

Price—$2 per share

.Volume 188

Number 5784... The Commercial and Financial Chronicle

(1505)
and for working capital. Underwriter—Investment Sales.

Inc., 532 Alameda Ave., Denver 9, Colo.
29.
i.> -^7'

fective Sept.
I

working capital. Office—931 San Jacinto Bldg., Houston,
Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.
■,77-

Statement ef¬

t.7 (.7

•

Address—P. O. Box 550, Rocky Ford, Colo.
Underwriter—IAI Securities Corp.,
Englewood, Colo.

New York 38, N. Y. Underwriter
Co., Inc., New York 5, N. Y.

way,

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds

of Montana.

Inc.
(letter of notification) 12,000 shares of 6%

working

■

•

★-Mortgage Service Corp. of Pittsburgh

—William R. Staats &

Sept. 29

(letter of notification) $250,000 of 6% deben¬
tures due Nov. 1; 1968.- Price—^At'par.
Proceeds—-For
general corporate purposes.
Office—2404 Grant Bldg.,
Pittsburgh 19, Pa. • Underwriter—None."
v

Fund, Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock (par $1).

Investors Inc.
;

Un¬

States

purposes.

owns

over

Underwriter—None.
80%

the

outstanding

share.

market. Proceeds—For investment.
& Co., New York.

Underwriter—Kuhn, Loeb & Co., New York.

Sponsor—Ira Haupt

assessable

at the rate of

per

common stock (par one cent). Price—10 cents
share. /Proceeds—For mining expenses. Underwriter
—Birkenmayer & Co., Denver, Colo. - 7'

train

out

the

and

procure

projected

Pearl

one new

gage

:
.

15, 1958 (with an oversubscription privilege); rights
expire on Oct. 29, 1958. Price—To be supplied by

amendment.''

diversified

Proceeds—For

management

investment.

investment

Business

company

type.'-'.Underwriter—None.

—

the

•

★ Naylor Engineering J* Research Corp.
Sept. 29 (letter of notification) 300,000 shares of cumulative voting and non-assessable common stock. Price—
At par ($1 per share). Proceeds—For
organizational expenses and first three months' operational expenses. Office—1250 Wilshire Blvd., Los
Angeles 17, Calif. Under¬

writer—Waldron & Co., San Francisco
4, Calif.
• Nebraska
Consolidated Mills Co., Omaha, Nob.
-Sept. 9 .filed 49,423 shares of common stock (par
$10)

to be offered for subscription
by common stockholders
at rate of one new share for each
eight shares held as
of Oct. 10, 1958 (with an

oversubscription

.rights to expire
ceeds—For

general

Oct. 29.

Price—$10

corporate

purposes.

per

privilege);

share.

Pro¬

Underwriter—

None.

Nadow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
stock (par one cent).
Price—$2 per share. Proceeds—To
pay loan; to acquire
fishing tools for leasing; and for

Morse & Co.
Co., New York.

Underwriter—Bear,

bonds due

1987.

like amount of 5%

first mort¬

Underwriter—To be determined

• Peoples Gas Light & Coke Co.

Sept. 12 filed 447,346 shares of capital stock (par $25)
being offered for subscription by stockholders of record
Oct. 2, 1958 at rate of one new share for each 11 shares
held; rights to expire on Oct. 20, 1958., Price—$41 per
share. Proceeds—To repay bank loans, for advances to
or additional
equity investment in subsidiaries and for
construction

program.

Underwriters—Glore, Forgan &

Co. and The First Boston

Perrine

Corp., both of New York.

Industries, Inc., Miami, Fla.

bank

Office

—

loans

and

for general working capital, ete„
Court, Oceanside, Long Island, N. Y„

Neil

,(.77

7r7.

Preferred Risk

Life Insurance

-•

St., New

,7'

Co.

Sept. 8 filed 250,000 shares of common stock (par $1).
Price—$4 per share, .Proceeds—To increase capital and
.surplus.
Office—Colorado Springs, Colo. Underwriter

—None.
•

:■

.•

•••

•;

•' 'v.:

Private

Enterprise, Inc., Wichita, Kansas
May 5 filed 125,000 shares of common stock. Price—$10per share.
Proceeds — To be used to organize, or re¬
.

organize and then operate companies in foreign nations^
principally, but not exclusively, in the Far East, Near
East and Africa. Underwriter—None. Statement effective*
'

Sept. 24.

(

Puget Sound Power & Light Co. (10/29)
Sept. 26 filed $15,000,000 of debentures due Nov. 1, 1983„
Proceeds—To

reduce

bank

loans.

Underwriter—To be
bidding. Probable bidders:
Halsey, Stuart & Co. Inej and Lehman Brothers (joint¬
ly); Merrill Lynch, Pierce, Fenner & Smith; Stone &
Webster Securities Corp., The First Boston Corp. and
Smith, Barney & Co. (jointly). Bids—To be received up
to noon (EST) on Oct. 29 at 90 Broad
St., 19th Floors
New York 6, N. Y.
determined

competitive

Rassco Financial Corp.
June 26 filed $1,000,000 of 15-year 6% series A
sinking;
fund debentures due 1973, to be offered in denominations!
of $500 and $1,000. Price—At par. Proceeds—For work¬

ing capital and general corporate purposes. Underwriter
Israel Corp., New York, on a "best efforts"

—Rassco

basis.

•

7 -

,
.

4 Remo Corp., Orlando, Fla.
Sept. 22 filed 100,000 shares of class A
Price—To be supplied by amendment.
working capital. Underwriter — Citrus

common

stock.

Proceeds—For
Securities

Co.,.

Orlando, Fla.

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; White Weld &
Co.;
Equitable Securities Corp., and Shields & Co. (jointly);
Lehman Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Smith
and Dean Witter & Co. (jointly).
Bids — Tentatively
had been expected to be received up to 11 a.m. (EDT)
on Aug. 27 but
company on Aug. 22 decided to defer
sale pending improvement in market conditions.

Oct.

closed-end

share for each three shares held

new

Proceeds—To redeem

Underwriter-

share for each two shares held

stock (par
stockholders

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.

• National Shares
Corp. (10/15)
Sept. 26 filed 540,000 additional shares of capital stock
(par $1) to be offered for subscription by stockholders

at rate of

one

Inc.

(par 25 cents) to be offered in units of

Underwriter—R. A. Holman & Co., Inc., 54 Wall
York. N. Yy

cor¬

Oct.

Stearns &

plan of
St., Boulder, Colo.
Western Securities Co., Boulder, Colo.
Office—1406

gen¬

common

shares of Fairbanks,

implement and carry
development and operation.

persons

and

15, 1958; rights to expire on Oct. 31, 1958.
Price—To be supplied by amendment. Proceeds—To be
used to buy from Robert H.
Morse, Sr., 297,231 common

investments

• Penn-Texas
Corp. (10/16)
Sept. 25 filed 1,488,438 shares of
$1 to be offered for subscription by

National Educators Finance Corp.
(letter of notification) 50,000 shares of common
stock. Price—At par (50 cents per share).
Proceeds—

additional

corporate purposes. - Change in Name—The
poration's name to be changed to Madison Fund,

June 4

;

Proceeds—For

eral

National Reryl & Mining Corp., Estes Park, Colo.
May 16 (letter of notification) 2,916,000 shares of non¬

ing
,

share for each

Municipal Investment Trust Fund, Inc. (N. Y.)
May 9, 1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
.

•

new

Corp.
Sept. 12 filed 1,286,619 shares of common stock (par $1)
being offered for subscription by common stockholders
of record Oct. 1, 1958 on the basis of one new share
for each four shares held
(with an oversubscription
privilege); rights to expire Oct. 15. Price—$16.25 per

shares.

•

one

Pennroad

Control—The

3,504,809

the basis of

Any unsubscribed shares will be pur¬
chased by Rock-Ola Mfg. Corp. Warrants expire 20
days
from date of issuance. Price—$4.25 per share. Proceeds
—For working capital. Office—800 N. Kedzie
Ave., Chi¬
cago 51, 111. Underwriter—None.

stock

share of preferred stock and one-'share of common
stock. Price—$5 per unit. Proceeds—To reduce outstand¬

Weighing & Vending Machine Corp.
(letter of notification) a maximum of 25,000
stock (par $1) to be offered to minor¬
on

(10/15)

one

common

ity stockholders

Precise Development Corp.

common

four shares held.

Telephone & Telegraph Co.
Sept. 3 filed 700,961 shares of capital stock being offered
for subscription by stockholders of record
Sept 26, 1958
at rate of one new share for each five shares
held; rights
to expire on .Oct. 24, 1958.
Price — At par ($100 per
share). Proceeds — To repay advances from American
Telephone & Telegraph Co., the parent; and for general
parent

June 27
.shares of

per
share.
Proceeds —For conOffice —Saskatoon, Saskatchewan*

(letter of notification) 60,000 shares of 20-cenft
convertible preferred stock (par $1) and 60,000 shares oil

-Peerless

fice—1000 Power & Light
Bldg., Kansas City, Mo.
derwriter—None.

corporate

•

market.
Proceeds—For investment.
Underwriter—Investors Investments Corp., Pasadena, Calif. •

-July 11 filed 200,000 shares of common stock (par $1).
Price—$10.75 per share.) Proceeds—For investment.; Of¬

■

••

purpose.

Underwriter—Allied Securities

Sept. 8

(Price—At

„

Co;; Los Angeles, Calif.

Packman Plan

—

Ltd., and United
Securities, Ltd., both of Saskatoon, Canada.
7
[

repayment of notes and for working capital. Underwriter

Mountain

Price

struction

Canada.

the years 1959-1962 inclusive. Underwriter—
Blyth & Co., Inc., New York.

Office—201 Montague Ave., Caro, Mich. Under¬
writer—None.
*
• i /(7:
'■:
(;

Motion Picture

Pauley Petroleum;, Inc. (10/16)
Sept. 24 filed 500,000 shares of common stock (par $1).
Price—To be supplied by amendment.- Proceeds — For

Canada in the Prov-«

Saskatchewan and Alberta and to
"only in the State of Nortfcv

Manitoba,

Dakota."

grams for
cumu¬

stock (par $1.50>

common

residents of the United States

class B stock

Paper Co., New York (10/15)
Sept. 25 filed $10,000,000 of convertible subordinated
debentures due Oct. 1, 1978. Price—To be
supplied by
amendment. Proceeds—For capital improvements
pro¬

-capital)

inces

Oxford

lative preferred stock and 3,000 shares of common stock.
Price—At par ($10 per share). Proceeds—For

Aug. 18 filed 209,993 shares of

Enterprises Inc.
(letter of notification) 23,200 shares of com¬
(par $1). Price—$5 per share. Pro¬
ceeds—For completion of plant plans;
land; construc¬
tion and operating expenses.
Office—2502 N. Calvert
St., -Baltimore 18, Md.
Underwriter—Burnett & Co.,
Sparks, Md.
v'":* 7/:'."
■; ■/ 1
7-./:7
/-■

★ Moore Telephone System,
Oct. 1

March 6

♦

to be offered for sale to residents of

Price—To be related to the current market

V :..7

Prairie Fibreboard Ltd.

O. T. C.

price on the New York Stock Exchange. Proceeds—To¬
gether with aother funds, to carry on the company's con¬
struction program
through 1959.
Manager-Dealers —
Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
& Co., Inc.
/
•„

Chenango

liabilities, for new construction and working capitalOffice—Bayard, Fla. Underwriter—Robert L. Fermare
Co., Inc., Miami, Fla.
(
;
r
;

Underwriter—None.

common stock (no par).
only to bona fide residents

offered

per

/ Pence-de Leon Trotting Association, Inc. 7
'Aug. 7 filed 400,000 shares of-common stock (par one?
:cent). Price—$1.50 per share. Proceeds—To pay current

July 1 filed 100,000 shares of
will

holders and to others.
Price—$8
working capital.
Office—27
cSt., Binghamton, N. Y. Underwriter—None.

Mountain, Inc., Ludlow, Vt.
Sept. 29 (letter of notification) 2,444 shares of common
stock. Price—At par. ($10 per share). Proceeds — To
develop Mt. Okemo Mountain, Inc. as a ski resort area.

mon

($100

par

debenture

Okemo

Montana Power Co.

„

of 5*/*%

Office—Plain view, Long Island*

uses.

.Proceeds—For

common

—

body & Co., Smith, Barney & Co. and Blyth & Co., Inc.
(jointly). Bids—Had been expected to be received up
to noon (EDT) on Aug. 26 at Room
2033, Two Rector St.,
New York, N. Y., but company on
Aug. 22 again decided
to defer sale pending improvement in market conditions.

3,000 shares
Price—At

Underwriter—Sano & Co., New York, N. Y.

(Policy Advancing Corp.

(par $1). Price — $3 per share. Proceeds — For
working capital. " Office—11 Flamingo Plaza, Hialeah,
Fla.
Underwriter
Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla.
;

Webster Securities Corp.
(jointly); White, Weld & Co.;
Eastman Dillon, Union Securities &
Co.; Kidder Pea-

notification)

March 25, (letter., of notification) 30,250 shares of com¬
mon stock
(par $5) to be offered for subscription bycommon stockholders at the rate of one new share for
each share held; unsubscribed shares to be offered to

stock

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.'r'Lehman Bros.;
Merrill Lynch, Pierce, Fenner & Smith, and Stone &

stock

New York.

Greenfield &

—

'Oak Ridge, Inc.
77Sept. 4 (letter of notification) 100,000 shares of

Together with other funds, to be used to
repay $15,500,000 in bank; loans and to carry on the
company's ^construction program through 1959. Under¬

The

lockers and other

Northwest Gas & Oil Exploration Co.
Aug. 22 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For acquisition of additional gas and oil interests and
corporate administrative expenses. Office—150 Broad¬

*Plainview Country Club, Inc.
"
T 7Vt
Sept. 29 (letter of notification) 300,000 shares of common
stock (par 10 cents), Price—$1 per share.
Proceeds—Tp
acquire land and for construction of swimming pools and

share for each six shares held. Price—At par
($1

share)* -Proceeds—To pay off obligations and for
telephone plant construction. Underwriter—None.
;

i. Minerals Consolidated, Inc., Salt Lake City, Utah
Aug. 29 filed 1,000,000 units, each consisting of one share
of common stock (par 10 cents) and two warrants to
pwv
chase one common share. Price—$1 per unit, Proceeds
;—For drilling,, exploration and development of oil and
gas properties. Underwriter—None. Stop order proceed¬
ings instituted by SEC on Oct. 6.
7•

one

(letter

Proceeds—For expansion and improvement.
Underwriter—M. H. Bishop & Co., Minneapolis, Minn. '•

per

per share).

•

June 19 (letter of
notification) 207,143 shares of common
stock to be offered to common stockholders at the ratio

ing capital.

- -

North Carolina Telephone Co.

Sept.

series F. cumulative preferred stock.

...

Midwest No-Joint Concrete Pipe Co.
Aug. 22 (letter.of notification) 60,000 shares of common
stock (par $1); Price—$5 per share. Proceeds—For work¬

Montana' Power Co.

Pioneer Telephone Co., Waconia, Minn.

Tex.

(11/10-14)
Sept. 23^filed 150,000 shares of class A common stock
(par $1), of which 125,000 shares are to be sold for ac¬
count of company and 25,000 shares for selling stock¬
holders. Price—$4 per share. Proceeds—$150,000 for ex¬
pansion of business of Glass Arts, Inc., a subsidiary;
$100,000 for reduction of indebtedness; and the balance
for general corporate purposes.
Underwriters—Charles
Plohn & Co., New York; Plymouth Bond & Share
Corp.,
Miami, Fla.; and Clayton Securities Corp., Boston, Mass.

Reynolds Engineering & Supply, Inc.
Aug. 22 (letter of notification) 60,000 shares of common,
stock (par $1). Price — $5 per share. Proceeds — For
working capital. Office—2118 N. Charles St., Baltimore*
18, Md. Underwriter—L. L. Bost Co., Baltimore, Md.
Richwell

Petroleum

Ltd., Alberta, Canada

June 26 filed 1,998,716 shares of common stock (par $1).
Of this stock, 1,174,716 shares are to be sold on behalf
the company and 824,000 shares for the account of cer¬
tain selling stockholders. The company proposes to offer
the 1,174,716 shares for subscription by its shareholders
at the rate of one new share for each three shares held

(with an oversubscription privilege). The subscription
period will be for 30 days following issuance of sub-scription rights.' Price—To be supplied by amendment.
Proceeds—To pay off demand note, to pay other indebt¬
edness, and the balance if any will be added to working
capital. Underwriter — Pacific Securities Ltd., Van¬
couver, Canada.
Riddle Airlines, Inc., Miami, Fla.
(
.May 15 filed 750,000 shares of common stock (par 10
] cents). Price—To be supplied by amendment. Proceeds
—For working capital. Underwriter—James H. Price 9s
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on

"best efforts" basis.

Rocky Mountain Quarter Racing
Oct. 31, 1957 (letter of notification)
common stock.
Price—At par ($1 per
—To repay outstanding indebtedness.
Colo.

Underwriter—R.

Ford

Co.,

Association

300,000 shares of
share). Proceeds

Office—Littleton,
Windover Road,

Memphis, Tenn.

Continued

page

...

Thursday, October 9, 1958

and other corporate purposes.

Underwriter—None. Al¬

Financial Chronicle

The Commercial and

(1506)

costs incident to

Continued from page

Standard Oil

Investment Corp.
Sept. 22 filed $1,000,000 of 10-year 6% cumulative con¬
vertible debentures and 99,998 shares of common stock.
ftouth Bobbins

debentures, at par

Price—Of

investments
Va. Under¬

Waukesha^ Wis.

if Rural Telephone Co., Knox, Pa.
Sept. 29 (letter of notification) 3,000 shares of common
stock (par $10) to be offered to stockholders on the
basis of one new share for each three shares held; rights

Price—$20 per share. Pro¬
working cap¬

will expire on Oct. 31, 1958.

ceeds—For installation, construction and
ital. Underwriter—None.
Sanborn Co., Waltham,

Mass.

(10/15)

Sept. 25 filed 118,530 shares of common stock (par
of which 100,000 shares are to be offered publicly

$1),
and

18,330 shares will be offered in exchange for outstanding
shares of 6% (cumulative preferred stock. Price—To be
supplied by amendment. Business—Manufactures elec¬
tronic measurement and recording instruments. Proceeds
«-To repay $200,000 bank loans; to retire $510,000 of
SVttfjo notes; and the remainder will be available for gen¬

Scientific-Atlanta,

Health & Accident Insurance Co.
July 9 (letter of notification) 50,000 shares of common
stock (par $1).
Price—$5 per share. Proceeds—To be
invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678, Gulf port,
Miss. Underwriter—Gates, Carter & Co., Gulfport, Miss.
Strategic Minerals Corp. of America, Dallas, Tex
$2,000,000 of first lien mortgage 6% bondi
of common stock (par 10 cents). Price
of princtoal amount; and for stock $)
per share. Proceeds—To erect and operate one or more
chemical processing plants using the- Bruce - William#
March 31 filed

and 975,000 shares
—For bonds, 95%

Sept 11 (letter of notification) 6,500 shares of common
stock {par 50 cents) to be offered for subscription by
common stockholders of record Sept.
10, 1958 on the
basis of one new share for each 20 shares held; rights to

expire Nov. 14, 1958. Price—$5 per share. Proceeds—
For working capital. Office—2162 Piedmont Road, N. E.,

Atlanta 9, Ga, Underwriter—None.
Sept. 26 filed an

Canada, Ltd.

Price—At market.

stock.

(10/20-24)
additional 3,000,000 shares of capital

Scudder Fund of

Proceeds

—

For investment.

Dealer-Managers—Lehman Brothers and William Street

Sales, Inc., both of New York. At end of initial distribu¬
tion period (probably extending to the year end), latter
will become the sole distributor of the shares.

if Service Life Insurance Co.
Sept. 26 (letter of notification) 3,567 shares of common
(par $1), Price—$18.75 per share.■- Proceeds—To

stock

foto
a sellingTex.
stockholder.
Office—400&W.Co.,
Vickery
Blvd.,
©rt Worth,
Underwriter—Kay
Inc., Hous¬
ton, Tex.
Sheridan-Belmont

Hotel

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Bept. 15, 1963 to be offered for subscrip¬
tion by common stockholders on a pro rata basis. Price—
At par. Proceeds—For working capital.
Office — 3172
North Sheridan Rd., Chicago 14, 111. Underwriter—None.

Tennessee

Gas

Transmission Co.

Sept. 11 filed 467,098 shares of common stock (par $5)
to be offered in exchange for outstanding capital stock

(5,766.633 shares) of Hartol Petroleum Corp^. on the basis
81 shares of Tennessee Gas stock for each Hartol

share.

1, 1968.

Proceeds

Price—To be supplied by amendment.
cancel

—Milton D. Blauner &

on Nov. 10. Price—$11.50 per
Proceeds—For equipment, merchandise and gen¬
Underwriters—First Southwest

eral corporate purposes.

Co., Dallas, Texas; and Miner, Mee & Co., Albuquerque,
New Mexico.

•

Simplicity Pattern Co. Inc., N. Y.
Aug. 15 filed 42,500 shares of common stock (par $1).
Price—At the market or at a price within a range not
less than the bid price and not higher than the
asking
price quoted on the New York Stock Exchange at the
time of

offering.

and other corporate purposes, in¬
repayment of $1,600,000 borrowed from
Texas Utilities Co. (parent company). Underwriter—To
construction program,

the

cluding

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fendetermined

& Smith

ner

Inc.

and

(jointly); Kuhn, Loeb & Co., Blyth & Co.,
Brothers (jointly); Eastman Dillon,
Bids—To be received up to noon

Lehman

Union Securities & Co.

(EST) on Oct. 28, in Room 2003, Two Rector St., New
6, N. Y.

York

South Carolina Electric & Gas Co.

Aug. 12 filed $10,600,000 first and refunding mortgage
bonds due 1988. Proceeds—To repay bank loans and for
construction program.

Underwriter—To be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. inc.; Kidder, Peabody &
Co.; Eastman Dillon,
Umon Securities & Co.; The First Boston
Corp., and
Lehman Brothers (jointly). Bids—Had been
expected to
be received up to

if Texas Electric Service Co. (10/28)
shares of cumulative preferred stock

Proceeds—Together with other funds, will be
program/and other corporate pur¬
poses.
Underwriter—To be determined by competitive
bidding.
Probable bidders: The First Boston Corp.;
Glore, Forgan & Co.; Harriman Ripiey & Co., Inc., and
Stone & Webster Securities Corp. (jointly); Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Smith
(jointly); Kuhn, Loeb & Co., Blyth & Co., Inc., Lehman
(no par).

Brothers and Salomon Bros/ & Hutzler

11:30

a.m.

(EDT)

Sept. 10, at 70

Dillon,

Thomas Paint Products Co.

being offered to the President of the company). Price—
$60 per unit. Proceeds—For working capital. Office—
543 Whitehall St., S. W., Atlanta, Ga.
Underwriter—
None.

Timeplan Finance Corp.
March 25 (letter of
cumulative
common

poned.

one

if Southeastern Airways, Inc.
OcL 2 (letter of
notification) 100,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To
pur¬

Proceeds

tor working capital.
Address—P. O. Box 48-1284
International Airport, 5429 N. W., 36th St.,
Miami; Fla.
Underwriter—None.
"

Motor Lodge Associates, New York

P®*- 1 filed $880,000 of Participations in Partnership In¬
terests.

Price —$10,000

per participation.
Together with other funds, will be used to
ance

due

under

purchase

contract,

Proceeds—
pay

the bal¬

reimburse

the

partners for deposits advanced by them, and to defray

Trans-Eastern Petroleum Inc./'

notification) 27,272 shares of 70-cent

preferred stock (par $5) and 27,272 sharei
stock (par 10 cents) to be offered in uniti

share to each class of stock.

Price—$11 per unit
working capital. Office — 111 E. Main
St., Morristown, Tenn. Underwriter—Valley Securitiei
Corp., Morristown, Tenn.
—

For

Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of whick
200,000 shares are to be publicly offered. Price—$5 pel
share. Proceeds—To drill two new wells and for general
corporate purposes. Underwriter
8t Co., Inc., Salt Lake City, Utah

—

Andersen-Randolpb

Uranium Mining Corp.
Y.
3,000,000 shares of common stock (pai

Trans-America
Nov. 6, 1957 filed

mill). PriceT-25 cents per share. Proceeds—For land
acquisition, exploratory work, working; capital, reserves
one

•

27; (letter of notification), 1,500 shares of common
jtock (par $1) to be offered pro-rata to stockholders an
the basis of, one ngw .share for 10 shares owned.
Price
—$4 per share. Proceeds—For drilling for oil and gat
Office—203 J$, IVIain ( Street,. (Coudersport, Pa.
Undeewriter-rNone./

Y'-"

•

•• ■ vV
v'Y-Y Y '<
' ^:'fV'--;/:Y

/:-='/

Tricon;, Inc.-^-YY*

(letter.of notification) 150,000 shares of common
(par $1,),Y l**ice7-$2. per share. Proceeds—To pay
expenses and £Ost of plarit option; for first year's pay¬
Aug. 8

stock

on instalment purchase contract for land hnd inipravements;, for construction ,of plarit, tools and equip¬
ment; advertising ;and working capital/Office — 540

ment

Steambbiat'JRd Y^^n^ich> Conn/. UnderwriterY-SanO &
Co., New York,? Z.Y-\„ / YY:
Triton Corp.,

r/Y.Y:

Newark, N. J.

Aug. 1 filed"#lv600,000 of 5% debentures due 1973, 4,080
of 6%f preferred stock (par $100) and 48,000

shares of common stock
of $8,000
240

(par $1) to be offered in units

stock and
Price—$10,240 per unit.

of debentures, 20 shares of preferred

of/common stock.

shares-

Proceeds—£o acquire, own and operate interests in pro¬
ducing oil and gas properties. Underwriter—None. j OJffice—Hi Commerce. Street, Newark, N, J* /Timothy H,
Dunn is.-President.

-<v>.

■

;,y.

.•Y Y

Tungsten Mountain Mining Co.
Aug. 11 (letter of notification) 100,000 shares of com¬
mon stock (par $1)..; Price—$1.50 per share.
Prqceeds^To extinguish: prosent indebtedness, increase reserve tor
contingencies and working capital. Office—511 - Securi¬
ties Bldg., Seattle .1, Wash.
Underwriter—H. P. Pratt
& Co., 807vHoge ,Bldg„ .Seattle 4, Wash.
Y'^Y"
Twentieth'Century Investors, Inc., Kansas City,
shares of common stock (par $1).
Proceeds—For-investment. Under?*

June 20 filed000,000
Price—At

writer—Stqwersi& fCo., Kansas City/ Mo.
Twentieth Ciintury Investors
MoY: ?;

Plan, Kansas City,

of plans for the accumulation
shares of Twentieth Century Investors, Inc. Price—At

June 20 filed $10,000,000
of

market! Proceeds11
Stowers &

For

Underwriter-i- r j

investment:

-Cdl; Kansas City, Mo/

(10/20-24) Y
Sept. 26 filed $500,000 of 6% 20-year sinking fund con¬
vertible capital debentures due Oct. 15, 1978. Price
100% and accrued interest. Proceeds—To bendded to tne
general" fuhds of'the company and initially used to re¬
duce bank' lokns and short term notes.
Underwriter-2Beil & Hougfi, Inc., ;St. Petersburg, Fla,
e

Finance Corp., Tampa,

Union

Fla.

if United Cities $as Co.,.(10/21)
Sept. 26. (lettef,,of notification) 30,000 shares of 6%
cumulative convertible preferred stock, 1958 .series. Price
—At par;($W).per share). Proceeds—To pay redemption
price of-outstanding, preferred stock and for expansion
and working capital. Office — Room 938, Merchandise
Mart,
Union

(^icagq- 54, Jll. /Underwriter — Eastman Dillon,
Securities; (&J Co], Inc., New-York/N.'-V;
;
,

Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price
$10 per share. Proceeds — For acquisition el
operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, tij
Lease or purchase.
Office — Wilmington, DeL - Under¬
writer—None. •- ? Myrl 'L. ; McKee of Portland,, Ore., 4s
President.-- --f v
v- -Y"^
" /■
/. -]•t. r
Unitod

if United Fuhds Inc., Kansas
Oct. 6 filed

City, Mo.
/? i V
additional $20^000,000 of

(by amendment) an
Plans without insurance and an
indeterminate /number 'of underlying shares of United
Accumulative Fund and $1,000,000 of Periodic Invest¬
ment Plans with insurance- and an indeterminate nuinPeriodic

ber of

Investment

underlying shares of United Accumulative Fund.

Price—At market, i Proceeds—For ^investment.

\.'j

Accident Insurance Co. Aug. 22 filed 120,000 shares of class A common stock.
Price—$3 per share. Proceeds—To provide the reserves
required to be held in life and accident insurance poli¬
cies, and to pay the necessary expenses in producing
insurance.
Office—Louisville, Ky. Underwriter—None.
Edmond M. Smith, is President.
* •'
United Security Life &

chase additional aircraft and communications
equipment

Gas Pipe Line Corp. (10/16) A
filed. 600,000 shares of common stock (par 50
cents).' Price—To be/supplied .by amendment. Proceeds
—For .repayment of outstanding notes :and tor constfuotion program. .Underwriters—White, Weld & Co., and
Stone & Webster Securities Corp., both of New York..:

Sept. 24.

May 26 (letter of notification) 1,250 shares of common
stock (par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
share of stock and $50 principal amount of debenturei
to be offered to stockholders on the basis of one unit for
each two shares of stock owned (500 of the shares are

Broadway, New York, N. Y., but sale has been post¬

and

(jointly); East¬

Uriion Securities •& Co. Bids—To be re¬
ceived up to noon (EST) on Oct. 28, in Room 2003, Two
Rector St., New York 6, N. Y. • V /
. '
'■
* ■•••;,'
man

The shares will also be offered from

time to time on such Exchange at a
price within the
foregoing range. Proceeds—To go to Joseph M. Shapiro,
the selling stockholder.
Underwriter — Lee Higginson
Corp.; New York. Offering—Indefinitely postponed.

corporate purposes. Underwriter
Co., Inc., New York.

if Texas Electric Service Co. (10/28)
Oct. 2 filed $10,000,000 of first mortgage bonds due 1988.
Proceeds—Together with other funds, will be used for

used for construction

21, 1958, rights to expire

?v J

To retire outstanding bank loans, to

—

and for general

notes

share.

if Tenney Engineering, Inc., New York (10/27-31)
'Oct. 2 filed 25,000 shares of common stock (par 10 cents)
and $500,000 of 6% convertible subordinated debentures

Oct. 2 filed 80,000

share for each four shares held of record Oct.

Underwriter/

Shop Rite Foods, Inc., Albuquerque, N. Mex.
Sept 25 filed 35,383 shares of common stock (par $5)
to be offered for subscription by stockholders at the rate
one new

ores.

Austin, Texas.

v/wY/-'V;v.y
July 29 (letter of notification) 26,850 shares of common
stock (par 10 cents) to be issued upon exercise of war¬
rants. Price—$1 per share. Office—Main & Astor Sts.,
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc.,
Philadelphia, Pa.
•• y,y>• '•> Y-Y'v'

due Nov.

if Selected Risks Insurance Co.
Sept. 29 {letter of notification) 8,500 shares of capital
stock (par $10) to be offered to present stockholders.
Price—$35 per share. Proceeds—For general corporate
purposes. Office—Branchville, N. J. Underwriter—None.

(

beneficiate manganese

Strouse, Inc.

Inc.

jv.i;);

State Life,

Southwest Shares, Inc.,

■

Feb.

velopment and operation of an oil well. Office — 9151
Sunset Blvd., Los Angeles 46, Calif. Underwriter—U. S
Corporation Co., Jersey City, N. J.
;
Y'Y<;

Process to

( N. Y.)

amount,' Proceedsf-To be added to the general funds of
the company to replenish working capital expended in
tne acquisition of aircraft.
Underwriter—None. ; : - *

:VY"'Y

Aug. 14 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share); Proceeds—For de¬

Mass.

purposes,

St., Milwaukee,

Stanway Oil Corp.

particularly working capital.
Underwriter—Paine, Webber, Jackson & Curtis, Boston,

eral (corporate

is President

if Trans Caribbeah Afrways, lnc.

Transcontinental

working capital. Office—2836 South 16th
Wis. Underwriter—None.
;'\/Y'/'

companies.

Milwaukee, Wis.

if Standard Steel Products Manufacturing Co.
Sept. 30 (letter of notification) 8,000 shares of common
stock (par $2.50). Price—$6 per share, plus one warrant
for each two shares of stock purchased.- Proceeds—For

Sept 18 filed 40,740 shares of common stock (par $1).
Price—$15 oer share. Proceeds—To selling stockholders.
Business—Company is engaged in the manufacture and
sale of electric distribution transformers for use by elec¬

Owens of Waterloo, la.,

fred E.
,

Stanley & Co., New York,

gan

Underwriter—Loewi & Co., Inc.,
Offering—Expected today (Oct. 9),

(New Jersey)

until Oct. 14, 1958. Exchange Agent—Mor¬

remain open

writer—None.

tric power

Co.

Underwriter—None.;

July 31 filed 11,406,078 shares of capital stock (par $7)
being offered in exchange for Humble Oil & Refining
Co. capital stock at rate of five Standard Oil shares foi
each four Humble Oil shares. The offer is expected to

(in units of $100 each);

and of stock, $1 per share. Proceeds — For
and working capital.
Office—Alexandria,
# R T & E Corp.,

acquisition of Howard Johnson's Motor

Lodge in Springfield/Va.

/ 4*
Price—

U. S. Land Development Corp. '•

Aug. 15 filed 1,200,000 shkres of common
par

stock.

($1/ peir''share).5 Proceeds—^To be added to the
general funds and liSed to develop Pineda

company's
Island

nearJMobilb, Ala.

Office—Fort Lauderdale, Fla.

Underwriter—Palm "Beach
South

Co.,

Investment

County Road; Palm4 Beach, Fla.

Inc.,
-

308
v

III.
June 4 filed 37,500 shares of class A common stock. Prios
—$4 per share. Proceeds—For exploration and develop¬
ment of; properties, anil the balance for other eorporoti
purposes.
Underwriter—None.
Universal PH Recovery Corp., Chicago,

Volume 188

Number 5784

The Commercial and Financial
Chronicle

...

(1507)

Xlranitom Corp.

■

of America, f>orttanii, Or*
April 30,1957 filed 1,250,000 shares of- common stocktpa.
16 rents).
Price-—To be supplied by amendment (ex
pected

share;.
Underwriter—To

tdeni

•

Proceeds—For exploratiOL

per

purposes
Graham
Albert

Grisvvold

•

named

Portland!:

/•/. ;

include: Blyth & Co., Inc.; Lehman Brothers arid

Barney

•

Acme

amendment.

Ore.,;; is

Minerals Co.

*-->

{letter of notification/ 900,000 shares of con
Price—At pai (1U cents per share).
Proceed
—For mining expenses. Office—805 Main St., Park
Citj
stock.

Utah

Underwriter—Walter

City, Utah.-f:
Utah Oil

Sondrup

''?/

./ '/;/

Co. of New

Co.,

Salt

Arabol

Lak»

■/"/'

announced thai the
company

tional

April 11
mon

Co.

was

plans addi

financing this year, in the form of common stock
preferred stock, Or a combination of. the
two, including
bank
loans.
Proceeds—For expansion
program, work
mg capital and inventories.
Underwriters—Blyth & Co
trie
and Merrill Lynch, Pierce.
Fenner & Smith.

Utah

Steel

March 21 it

Pres-

Manufacturing Co., N. Y.

Sept. 9 it

//'

the

announced

was

Department

that

(10/9)

bids will be

received

Justice, Office of Alien Property.
Ave., N. W., Washington 25, D. C.,
by 11 a.m. (EDT) on Oct. 9, 1958, for the purchase from
the Attorney General of the United
States as an entirety.

York, Inc.'"

Room 664, 101 Indiana

May 6

(letter of notification) 300,000 shares of capita;
stock
Price
At par ($1 per share). Proceeds
Fot
development of oil and gas lands. Office—574 JeffersoL
515.6 shares of; common
capital stock (par $100) and
Ave., Rochester .11, N. Y. Underwriter—Frank P. Hunt
210 shares of 6,% cumulative
preferred capital stock (pai
& Co., Inc., Rochester; N. Y.
;/•/ $100) of this company.. ,,
!/;> / „/
—

—

Utah Power & Light Co.
June 2B filed $20,000,000 of first
mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬
gage bonds, o^4% series due 1987, to repay
$4,000,000 of
bank

borrowings, and the balance together with furthei
borrowings under a bank agreement and cash generated

in the business will

used

carry forward

the

;

con-

struction program of the company and its
subsidiaries
amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined
by competi¬

tive

Arvida Corp. (Florida)
Sept. 18 it was announced by Arthur
Vining Davis, for¬
mer Chairman of Aluminum. Co. of
America, that it is
planned to raise between
$25,000,000 and $35,000,000
through the sale of common stock of Arvida

Corp. Price
•—Expected to be about $10 or $11 per share. Proceeds—
To develop residential communities in
the near future,
complete with regional shopping
areas, industrial parks,
utility installations and recreational facilities. Under¬
writers—Carl M. Loeb, Rhoades &
Co., and Dominick &
DOrninick, both of New York. Offering—Scheduled to

bidding.

Probable bidders: Halsey, Stuart & Co
Inc.; First Boston Corp; and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp

begin within the next two months/ Registration
pected in the

(jointly):; Salomon Brothers & Hutzler; Kidder, Peabody
'Co.: Eastman Dillon, Union Securities
Co., and
Sfriith, Barney & Co. (jointly):!;Bids—Were to have been

•I Austria

received" in

Room

''2033,
(EDT)

Y.; up: to noon
on
Sept. 3. Bids will now be received on such day sub¬
sequent to Sept. 22,1958 but not later than Nov. 25, 1958
;

improvements.

Bank of

Option and Installment Purchase/Plan.

Underwriter—None.1"

*J: Weingarteri(J.),lnc., Houston, Texas
^o,uuu,uu0

Oct. 1, 1973.

(10/15)

sinking fund debentures due

Price—To be supplied by amendment, Pro¬

repay outstanding indebtedness and for ex¬
pansion of'supermarket chain and related
facilities/ Un¬
derwriters-—White, Weld & Co., New York; and Moroney,
Beissner & Cot,
Houston, Texas! V ; !
:
\

stock distribution:
at

held.'. [Stockholders who have right to sub¬
remaining 40,590 "shares have waived such
Price—To be supplied by amendment. Proceeds

tions and

poses.

property acquisi¬
development and other regular corporate pur¬
-

Western

•

-/•

Carolina

filed

slock at

mow

shares held.
ment?

the rate of one. new share for each Ihref
The record date is to be
supplied by amend¬

incurred

struction

and

carrying forward the company's con¬
program.
Underwriter—None

Aug. 25 it

offered

holders

outstanding

Denmark

Sept. 2 it
000 to

working

capital

pei

Underwriter—

Jefferson,

held

Sept.

24,

one

new

1958

an,

privilege);; rights to expire ion Oct/14.
share.

10 shares

oversubscription
Price—$29 per

Proceeds—For capital expenditures." Underwriter

—None.

.......

announced

was

one

new

Underwriter*

Bank

share for each 10 shares

held.

pany

yet has been made as to the procedure the com¬
will follow.
Proceeds—For repayment of short-

term

notes

•

Grace

—

bidders

and

for

construction

program.

determined

Line

may

new

sold to Chas.

was

Scranton

Co.

Offering-

early November.

Heublein, Inc.
v
Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which
100,000 shares

to be sold for

the account of selling"
expansion. Underwriter—
Glore, Forgan & Co., New York.
Offering — Expected
are

stockholders.

Proceeds—For

sometime in October

Japan
Aug. 20 it
and

November.

was

stated that

$50,000,000 of bonds
the American

(Empire of)
issue of between

may

market.

soon

$30,000,000

be publicly offered

Proceeds—For

projects, etc. Underwriter—The First
York..;
\

public works

Boston

Corp., New

r'.

Kansas Gas & Electric Co.
March

31, G. W. Evans, Chairman, announced that com¬
plans to sell some bonds originally scheduled for
mid-year, but which sale may now be deferred until
late 1958 or early 1959. Proceeds—About
$8,000,000 for
pany

construction program.

Underwriter—To be determined

competitive

bidding.
Probable
bidders:
Halsey,
Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp.
(jointly); Glore, For¬
gan & Co., and Goldman Sachs & Co. (jointly).
Stuart & Co. Inc.;

Kansas
Feb.
sell

Power &

Light Co.

announced company plans to issue and
$10,000,000 of first mortgage bonds due 1988. Pro¬
was

ceeds—For

construction

program.
Underwriter—To be
by competitive bidding. Probable bidders;
Halsey,, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Equitable Securities
Corp

determined

June 16 company stated it will sell bonds and/or com¬
mon stock in the last
quarter of 1958. Underwriters—
For

any common stock: Blyth & Co., Inc. and J. J. B.
& Son.
For any bonds, to be (determined by
competitive bidding. •* Probable bidders: Halsey, Stuart &

Hilliard

Co.

Inc.;

Eastman Dillorj, Unio®. Securities & Co, and
Lynch, Pierce, Fenner & Smith, (jointly); Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently considering refinancing
$790,000 of outstanding notes ($658,750 held by a
principal
stockholder and $131,250 by a bank) on a more perma¬
nent basis.
This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts St., Bos¬
ton, Mass.
Lorillard

Co.

(P.)

Sept. 17 company announced it plans to offer its stock¬
holders the right to subscribe for approximately 363,000
additional shares of common stock on the basis of one
new

share for each eight shares

general

corporate

held.

Proceeds

Underwriters

purposes.

—

For

Lehman

Master Fund,

Inc., Fairfield, Calif.
this newly organized invest¬
ment company nlans to offer to bona fide residents of
California lO/F) shares of capital stock (par $1). Price
—$10 per shar
less an underwriting discount of 8&%.
Jan. 27 it

was

announced

Proceeds—For investment.

Michigan Bell Telephone Co.
12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds—To redeem a like amount
Aug.

of 4%%

debentures

due November,

—To

determined

by competitive bidding.

bidders:
Co.

1992.

Underwriter

Probable

Halsey, Stuart & Co. Inc.; Morgan Stanley 8c

Bids—Had

been tentatively scheduled to be re¬
Sept. 16, but on Aug. 26 it was voted to post¬
this refunding program because of present market

ceived
pone

conditions.

"Santa Paula" later in 1958.

March

28, company announced it plans to issue on or
Dec. 31, 1958 $3,200,000 of first preferred mort¬

before

May be placed privately. Proceeds
bank loans and for working capital.

gage bonds.
repay

—

subsidiary

Midwestern Gas Transmission Co.
March

was

announced

that

this

Tennessee Gas Transmission Co. has applied to the Fed¬
eral Power Commission for permission to issue first

mortgage

bonds,

unsecured

notes

and

common

Proceeds—To build pipe line system to cost about

stock.

$111,-

Underwriters — Stone & Webster Securitiet
Corp. and White Weld & Co., both of New York.
000,000.

Inc.

Underwriters—Merrill

Lynch, Pierce, Fenner and Smith; Paine, Webber, Jack¬
son
& Curtis; Smith Barney & Co.;
White, Weld & Co.,
and F. Eberstadt &

stock

Expected late October

Midland Enterprises, Inc.

was

loans

6 approved the proposal.
Underwriters
Co., Chas. W. Scranton & Co. and Estabrook
& Co. for any preferred stock.
Under previous rights
offerings to common stockholders unsubscribed common

Smith, Barney & Co., both of New York.
Registration—Expected early in November.

Service Co.

and

Oct.

Brothers and

Company plans to issue $9,000,000 of government insured
bonds secured by first preferred
ship mortgages on the

share for each

(with

by competitive bidding,
Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner &
Smith, and White,
Weld & Co. (jointly); Blyth & Co.,
Inc.; The First Boston
Corp.; Lehman Brothers.

Wisconsin Electric Power Co.

at the rate of

basis

probable

Sept. 3 filed 510,005 shares of common
stock, (par $10)
being offered for subscription,by. holders of
outstanding
common

the Ameri¬

City National Bank

Underwriter

publicly offered at $3 each.. Proceeds — Foj
corporate purposes.
Office—151 Adell Avenue
Edwin

the

cision

—

Underwriter—Kuhn, Loeb & Co.,

reported that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬

System, Inc.

Yonkers, N. Y. Underwriter
Broadway, New York 6. N Y

March 24 it

April 2 (letter of notification) 72,035 shares of commor
(par $1) of which 10,000 are to be offered to stock
holders at $2 per share and the
remaining 62,035 share*
are

issue of between $20,000-

secure approximately $5,000,000
Proceeds—Together with $7,000,000
private sale of 41/£% bonds, to repay short-term

Gas

stock

general

possibly be placed

Price—$40 per share. Proceeds—To increase capital and
surplus. Office—931 Main St., Houston 1, Tex.

holdings It
by four; alsc
5% subordinated

Wilier Color Television

may

plans to offer to its
stockholders of record Oct. 2, 1958 the right to subscribe
for 125,000 additional shares of
capital stock (par $20)

None.*

reported that

market this year.
New York.

First

divisible

$60

Proceeds—For

issue and

(Kingdom of)

was

$30,000,000

can

Sept.

debentures of record March 24 at rate of five shares foj
each $1,000 of debentures then held.? Price —
share.

may

the first three months of 1959.

•

number

reported that the company

was

holders

—Putnam &

Merrill

Co.

—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White
Weld & Co., all of New York.

—

the

Gas

bank loans and for construction
program.

Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24
at
raterof one new share for each four shares held and one
additional share for the balance of such
of

$25,000,000 of preferred stock. Underwriters—May
Corp. and Glore Forgan & Co., both
New York. Offering—Expected late in 1958 or
during

from

Andersen, Randolph & Co., Inc., 65 So
Main St., Salt Lake City, Utah.
"

Electric

of additional funds.

ably preferred stock, to

conversion

Western Industrial Shares,
Inc., Denver, Colo.
July 16 filed 1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For investment

excess

mar¬

securities

company expects later
in the year to issue and sell additional
securities, prob¬

Statement effective Sept. 26.

Underwriter

contemplates

$7,000,000

Equitable Gas Co.
July 18 it was announced that the

Price—At par

($5 per share).\ Proceeds—To bf
applied .to-the payment of $700,000 of short-term bank
loans

and

sell

Telephone Co.
89,391 shares of common stock to; be of
fered for4 subscription by holders of
outstanding com-,;
June

$5,000,000

Sept. 11 the company applied to the Nebraska Railway
Commission for authority to sell up to
100,000 shares
of common stock (par
$3.50) and up to $3,000,000 con¬
vertible debentures/ Underwriters —
Paine, Webber,

}

•:

between

Smith^

Kentucky Utilities Co.

be The First Boston

further

Underwriter—Moroney, Beissner & Co., Houston,'

Texas.
•"

for

Underwriter—Morgan Stanley & Co., New York.»

Commonwealth Edison Co.
'

discharge bank loans and other indebtedness, and '
used

Price—To be determined by trustees
Proceeds—To increase capital and sur¬

later date.

Central

for

plus.

Jackson & Curtis arid Stone & Webster Securities
Corp.

four shares

will

eight shares held after giving effect to the

o Hartford Electric
Light Co.
Aug. 27 the directors approved a program under which
it plans to issue 149,633 shares of common stock
(par
$25) to be offered first to common stockholders on a 1for-10 basis; and 100,000 shares of preferred stock
(par
$50); and $18,000,000 of first mortgage bonds. Stock¬

increase

Neither the exact date of the offering
the nature of the securities to be offered
has been
determined. Proceeds—To repay bank loans.

right of certain stockholders to subscribe for a
total of 9,410 shares at the rate of
one, new share for each

balance

October, .1958.

the

proposal

nor

Realty Co.- (10/13-17)
sinking fund debentures, '
due
J\0Vvrl,1978, and 50,000 shares of common stock (par ■/
$1); Thb offering of the common stock will be subject

-—•To

new

share for each

-19 filed $1,600,000 of 6%

right.]

approved

by 110,000 shares to a total of 270,000
The bank will issue 80,000 shares as a
50% stock
dividend and offerrto stockholders the
right to subscribe
for the
remaining ,30,000 shares in the ratio of one

keting

Weingarten Markets

scribe

York

California Electric Power Co.
July 14 it was announced company

ceeds—To

Offer¬

shares.

Price—$ 11/11 per share, or 85%' of market price at "grant
of option: Proceeds—For
working capital. Office—7400 -V
E.y 12th St;, Kansas

City, Mo.

Under¬

the capital stock

Sept. 29 (letter of notification) 14,000 shares of common
(par $2.50) to be offered to certain employees

Sepi.'xn.

New

Sept. .30 stockholders

■

stock

under the Stock

(Republic of)

writer—May be Kuhn, Loeb & Co., New York.
ing—Expected in October or early November.

shall be designated by company.

Vend© Co.

Ex¬

was announced that the
country contemplate*
the issuance and sale of
$30,000,000 bonds. Proceeds—Foi
electric power projects and other

—

July 15 it

Rector Street, New York,
Sept. 9, but were postponed

future.

near

Co.

Co., all of New York.

Great Atlantic & Pacific Tea Co.
Feb. 19 it was reported a secondary offering of commor
voting stock is expected this year. Underwriters — May

Montana-Dakota Utilities Co.
March 24 it

was announced the company plans to issue
an
undetermined amount of first mortgage
(about $10,000,000) in the latter part of this year
or
in early 1959. Proceeds — To repay bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth & Co.,

and

sell

bonds

Continued on page

The Commercial and Financial Chronicle
64

Thursday, October 9, 1958

...

(1508)

jrom page 63

that the company plans a regis¬
60,000 shares of common
etock (par 10 cents). Proceeds—To selling stockholders.
Business—Manufacture of ultrasonic equipment. Control
—The company is controlled by Narda Microwave Corp.,
N. Y. ? Underwriter — To be named at a later date.

that the company has de¬
temporarily its plans to market $6,500,000 in bonds
stocks. A bank credit of $6,000,000 has
been arranged — in lieu of the long-term financing.
Proceeds—For repayment of short-term bank loans and
Underwriter—For bonds to be
Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Glore,
Forgan & Co. and Blair & Co. Inc. (jointly); White, Weld
& Co.; Equitable Securities Corp. Last preferred financ¬
for construction program.

$7,500,000 >

announced that approximately

was

required for construc¬
tion expenditures for the balance of this year. The man¬
agement intends to negotiate a new line of credit with a>
group of banks and expects to sell equity securities later
this year or in early 1959, depending upon prevailing

from additional financing will be

ing

Bids will be received this Fall by

announced

company

will sell late this

reported

was

plans sale of an

company

amount of bonds

this year or early 1959. Underwriter
•—(1) For bonds to be determined by competitive bidding. Probable bidlers: The First Boston Corp.; Halsey.
Stuart & Co. Inc.; Blyth & Co., Inc.; (2) For preferred
stock: Blyth & Co., Inc.

Southwestern

in the latter part of

Pacific

July 10 it

ders:

program.

by competitive

determined

•

bidding.

Telegraph Co.

'Aug. 22 it was reported company plans to offer to its
common and preferred stockholders 1,594,604 additional
chares of common stock on the basis of one new share

shares held. Price
—At par ($100 per share). Proceeds—To repay advances
and to reimburse the treasury for capital expenditures
previously made. Underwriter—None. Control—Of the
632,000 shares of 6% preferred stock (par $100) and 11,936,835 shares of common stock (par $100) outstanding
as of Dec. 31, 1957, there were owned by the American
Telephone & Telegraph Co. 640,957 preferred shares and
10,790,943 common shares.

such

ward

drive of the

may run

the

transaction

equity market

term securities markets.

Meanwhile, the

seems

rests

with

the New York

ing in equities, is going to seek a
substantial slice of its new capital
needs via

be getting better

with some recent
top-notch offerings such as Sears,
Roebuck, Standard Oil Co. of Cal¬
ifornia and Standard Oil Co. of In¬

has set in motion
plans for offering publicly 700,000
shares of additional common stock.
It

has

registered with the Board
of Public Utility Commissioners of
New Jersey and anticipates early
December as prospective offering
time.

diana, all having developed per¬
sistent
strength and ability to
At current prices, sale of this
command
substantial
premiums block of stock, if the discount
The most heartening element in
from the original prices.
from
present levels is not too
the investment market picture at
great, should yield the company
the moment is the growing resili¬
Madison Gas & Electric
some $33 million.
ency
being shown by Treasury
Some 12 years ago Madison Gas
bonds.
After
several
rally at¬
Slow Week Looms
& Electric Co. won the distinction
tempts which halted abruptly only
to find the market still feeling of being the company fortunate
Next week promises only two
for
offerings of
any
size,
bottom, the emphasis now enough to catch the "top" of that straight
particular rising phase of the bond Idaho Power Co.'s $15 million of
eeems t° have been reversed.
market.

Nevertheless,

the

experienced

market observer is not of

mind

to jump to conclusions but rather
seems

willing to wait

permit
prove

the

current

while and

situation

itself.

bonds due up

In 1946 the company floated a
$5 million bond issue carrying a
2Vz% interest rate and priced for

sale to the public on a

short, he

sees

little

too much exuberance in

IVi

reason
a

for

rally of

points after the Government

market's letdown of

since

some

points

last April.

Naturally there
strong feeling that the Treas¬
ury list had been oversold.
And
certainly it is indicated now that
Was

the speculative fringe has been
pretty thoroughly washed out.
But the
appears

new

capital market still

to have things to contend

back

million

the

company

market

offering

for

highest of six bids
a

came

the

from

presumably
the

taking

Gas

its

cue

market rul¬

Walls Associates, Inc.

SinmoNS & Co. Setts

Formed in Atlanta

Imperial Packing Stk.
.

Simmons

City,

Co.

New

York

Oct. 1 offered publicly an
shares of common
of Imperial Packing Corp.

issue of 290,000

stock

at par ($1 per share). The offer¬
ing has been completed.

The
to

net

proceeds will be used

in the production of
juices and by-products; and
will be used for

engage

citrus

the

remainder

will
subscriptions on a "rights"
a $23 million offering of

due

for

market

that

day.

Meanwhile, there is a total of
like $274 million of
prospective offerings held in abey¬
ance
due
to market
conditions,
something

rate

The company

offices

Officers

are

Building

Candler

the

to engage

securities business.
W.
Walls,

James

President and Howard B. Harmon,
- Treasurer.
Mr. Walls
formerly with the RobinsonHumphrey Company, and prior
thereto with the First National

Secretary
was

Bank

Atlanta.

other

citrus

Now With Geo. Eustis

will engage in the

production and sale of canned and
frozen
fruit
and
citrus
juices,

and of
items. The

by-products,

canned meat specialty

company's plant is located at 408
South
Atchinson
St.,
Anaheim,
Calif.

(Special to The Financial Chronicle)

CINCINNATI, Ohio—Robert F.
Herbert is now connected with
Geo. Eustis & Co.,

members

the

ner

fice

Thorson,

previously

with

chairman

Roth
\

Weil,
.

of the

Walter

of¬

execu¬

Monro, President
banking firm

investment

the

Hutton &

Schoellkopf,

nationwide in¬
vestment banking firm, was elect¬
ed to the board of directors of
Booth Fisheries Corporation, Chi¬

Inc. since 1942, passed away

& Curtis,

of debentures.

Stock Exchange.

of
of

Pomeroy,

tive committee of Paine, Webber,
Jackson

Walter J. Monro

general part¬

charge of the Chicago

and

Tri State Bldg.,
Cincinnati and

Midwest Stock Exchanges. He was

R. Thorson Director
Reuben

largest being Southwestern
Bell Telephone Co.'s $110 million
...

been formed with

Inc. has

ates,

purposes.

cago, it was announced by R. P.
Fletcher, Jr., President. Mr. Thor¬
son
is a
past chairman of the
board of governors of the Midwest

the

ATLANTA, Ga.—Walls Associ¬

working capital and other corpo¬

On Thursday J. I. Case Co.

common

(Special to Tee Financial Chronicle)

Irving Co.

basis for

Su¬

Wednesday.

Pipe Line Co. has 600,000 shares

Electric

robust bull

of¬

99.814 for

Equity Mindedness

Co.,

for

holders. And Transcontinental Gas

A price was set
public a return of

Service

slated

the

which

4.57%. In the 1946 instance, in¬
cidentally, there were 16 bidders.

Public

debentures

convertible debentures to its stock¬

4%% coupon.
yield

for bids on Tuesday
Paper Co.'s $10 mil¬

$11

with

was

fering
open

week

Oxford

lion

yield basis

of 2.39%.

This

and

State

offering of stock.

The company

basic situation

in the debt issue market

reported that

was

...

plans the sale,
of $5,000,000 first mortgage bonds. Proceeds—For con ¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Estabrook & Co. and Coffin- & Burr, Inc.*
(jointly); Kidder, Peabody & Co. and White,:Weld &
Co. (jointly). Offering—Expected this Fall.

an issue of common stock
public, the proceeds of which
between $50,000,000 and $60,000,000. Approval

which naturally detracts from the

fixed

Worcester Gas Light Co.

be offered to the

the persistent for¬

with,

soon

Weld *

Aug. 18 it was reported that the company

Universal Oil Products Co.

will

(jointly); The First Boston Corp.; White,
Co.; Kidder, Peabody & Co.

company

construction program.

Aug. 13 it

V ; :

Inc.

plans to market
about $30,000,000 of common stock in the latter part of
this year or in the first quarter of 1959*. Proceeds—Foi

for each eight common or preferred

(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co., (jointly); Leh- man Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.

Louis, Mo.

announced

was

early in 1959.

petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart 6c Co. Inc.; White Weld & Co.; The First >
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch, .
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler (jointly);
Kuhn, Loeb & Co., and. American Securities Corp,;

(10/29)

Union Electric Co., St.

Smith, *

Inc.;

was announced company plans to sell about ;
$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet beendecided on. Underwriter—To be determined by com¬

New York.

March 28 it

Co.

March 4 it

Sept. 23 it was reported that the company plans an offer¬
ing of 100,000 shares of preferred stock (par $100). Pro¬
ceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—Stone & Webster Securities Corp.,

Bids—Expected to be received on Nov. 18.
Pacific Telephone &

ahnounced Missouri Public Service Com¬
$110,000,000 of

Tampa Electric Co.

Stuart

Halsey,

Wisconsin Public ServiceCorp.

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Of¬
fering—Has been postponed.
Bids had been expected
about Sept. 30, 1958.

Underwriter—To
Probable bid¬
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co
construction

Proceeds—For

late in 1958 or
,

Telephone Co.

35-year debentures. Proceeds — To refund outstanding
$100,000,000 4%% debentures. Underwriter—To be de¬
termined by competitive
bidding.
Probable bidders;

Aug. 22 it was announced company plans to issue and
sell $80,00.0,000 of 32-year debentures due Nov. 1, 1990.

Inc^ (jointly);
Dillon, Union
Securities & Co. (jointly); White, Weld& "Cb.vKidder,'
Peabody & Co. and Salomon Bros. & Hutzler/Xjointly); •
The First Boston Corp.
Offering—Not expected until :

mission authorized the company to issue

(11/18)

Telephone & Telegraph Co.

was

Bell

plans to issue

Barney & Co. and Robert W. Baird & Co.,
Equitable Securities Corp. and Eastman

Jackson & Curtis.

and/or preferred stock'"'

bidders:

Probable

stockholders authorized an additional /100,000
preferred stock (par $50).- UnderwritersStone & Webster Securities Corp. and Paine, Webber

Pacific Gas & Electric Co.

$10,000,000 of first mortgage bonds. Proceeds— •
To retire bank loans and for construction program. Un- :
derwriter — To be determined by competitive: bidding. -

Light Co.

and sell

May

Power

March 17 it was announced that company

Southern Colorado Power Co.

Corp.; Glore, Forgan & Co.; Blyth & Co., Inc.

undetermined

Wisconsin

35-year debentures to be dated Dec. 1, 1958. Proceeds

Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co/ Bids—Tenta¬
tively scheduled to be received on or about Dec. 9. Reg¬
istration—Expected in mid-November.
/
^
f

$10,000,000 mortgage bonds but on Sept. 12 it was
etated that immediate financing will not be necessary.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; First Boston

Inc., New York.

Telegraph Co. (12/9)

—For construction program.

year

March

N. E., Atlanta, Ga.

197 Auburn Ave.,

Southern Bell Telephone &

Illinois Gas Co.

was

Proceeds—To expand opera¬

future.

near
—

Sept. 22 directors authorized the issuance of $70,000,000
of

previously incurred. "-Y'v" /

Virginian Ry.
Aug. 26 the directors approved a proposal- to exchange '<
2,795,500 shares of 6% cumulative preferred?'stock (par <
$10) for $32,148,250 new 6% subordinated income sink- -•
ing fund debentures to mature Aug. 1, 2008 oir the basis .
of $11.50 principal amount of debentures for*each pre-ferred share. Dealer-Manager—Harriman Ripley & Co. *

Underwriter—None.

43, $5,310,000; and Dec. 18, $6,450,000. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
June

Office

tions.

purchase from it of $19,200,000 equipment trust certifi¬
cates due from l-to-15 years, viz: Oct. 9, $7,440,000; Nov.

Northern

short term obligations

was

holders in the

the company for the

financial

done privately.

Fidelity Fire Insurance Co.
announced that the company in all prob¬
ability will offer additional common stock to its share¬

(12/18)

(11/13)

(10/9)

Norfolk & Western Ry.

competitive bidding.

Southeastern

York.

The First Boston Corp., New

was

Aug. 26 it

Underwriter—For any common stock:

market conditions.

19 it was announced

determined

financial advisors to develop a

for the country. As a first step in the pro¬
gram a short-term credit is being negotiated between the :
government in cooperation with the two investment
banking firms and a syndicate of commercial banks in
the United States/Canada and the United Kingdom,
The three institutions which are to head this. syndicate ...
are The Chase Manhattan Bank, The First National City '
Bank of New York, and Bank of America National Trust 1
& Savings Association. The Chase Manhattan. Bank will
be the fiscal agent for the credit. The amount of the
new financing involved is in, the neighborhood of $250,000,000. The purpose is to restore government balances
which have been reduced by the repayment: of excessive '
program

ferred

and Gas Co.

Kidder, Peabody & Co., both of New York, have

been selected

and/or preferred

Registration—Expected late in October.
March 7 it

Co. and

Joseph Light & Power Co.

St.

Sept.

(Government of)

July 1 the Government announced that Kuhn, Loeb

stock, and plans to
apply to the State Public Utility Commission seeking
exemption from competitive bidding. Underwriter—May
be Merrill Lynch, Pierce, Fenner & Smith.

offering of

New York State Electric

Venezuela

(12/2)
the company plans offering

700,000 additional shares of common

Ultrasonics Corp., N. Y.

secondary

tered

Pierce, Fenner & Smith, all of New York.," Offering.
/ /
~

Electric & Gas Co.

Sept. 22 it was reported that

Sept. 8 it was reported

Society. Underwriters—Expected to be LehBrothers, Smith, Barney & Co. and Merrill Lynch,;

Expected in November.
Service

Public

bonds secured by
liners S. S. Brasi)
and S. S. Argentina. Underwriters—Kuhn, Loeb & Co.
and Lehman Brothers, both of New York.
Offering —
Postponed because of uncertain market conditions.
sell $24,000,000 of government insured
first preferred ship mortgage on the

Narda

man

Underwriter—Lehman Brothers,

program,

Court (expected within two months). Proceeds—
Petroleum
Research
Fund of the American

the

Chemical

New York.

plans to issue and

announced company

road

feeder

Moore-McCormack Lines, Inc.
was

July 14 it was announced a public offering is expected
of approximately $26,000,000 external bonds. Proceeds—
To redeem certain outstanding debt and for Panama's

Inc.; Merrill Lynch, Pierce, Fenner & Smith and Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
March 24 it

preme

(Republic of)

Panama

Continued

Oct. 7

at the age of 72.
A

nationally-known figure in
banking
world,

investment

the

Mr. Monro was a former governor
of

the

Investment Bankers

Asso¬

ciation and has served as Western
New York district chairman of
War

Finance Committee.

the

Volume 188

Number 5784

The Commercial and Financial Chronicle

(1509)

The

following statistical tabulations

latest week
week
Latest

AMERICAN' IRON AND STEEL INSTITUTE:
7 Indicated Steel operations
(per cent

■

capacity)

Equivalent to—
Steel lugots

castings

(net

tons)

output—daily

Crude runs.to

(bbls.

average

fuel

oil

output, (bbls.)-output (bbls.)——_

oil

Stocks at refineries;

7,099,785
Sept. 26.. 7117,639,000

1,780,000

27;758;000

.Sept. 26
___3ept. 26

——

7,087,085

6,863,335

7,604,000

7,937,000
28,206,000

•
•

2,143,000

28,010,000
2,001,000

•

12,475,000

11,895,000

7,286,000

—Sept. 26

7,034,000

0;896,000

173,481,000

173,158,000

„

30,942,000

30,011,000

.Sept. 26

153,633,000

149,461,000

—Sept. 26

69,595,000

68,893,000

67,018,000

freight: loaded (number of cars).:
Sept. 27
Irelght received from connections (no. of cars)—Sept. 27

672,924
568,608

(bbls.)

at———

Distillate "fuel oil
Residual

fuel

(bbls,)

7—Sept.

——

at——

oil. (bbls.)

at—

Revenue

CIVIL

ENGINEERING

NEWS-RECORD:

Total

UF.

Private
>

ENGINEERING

and

municipal

OUTPUT (U. S. BUREAU OF MINES):
7 Bituminous coal and lignite (tons)—

Pennsylvania anthracite (tons)—
DEPARTMENT

STORE

SYSTEM—lit 11-4!)
EDISON ELECTRIC
i

Electric output

•-

■

FAILURES

SALES
•

—

1,572,000

177,430,000

36,331,000
169,265,000

$370,670,000

$284,377,000

$333,358,000

1©0-

$495,709,000

Oct.

166,032,000

—

Oct.

329,677,000

123,894,000
246,776,000

252,040,000

216,180,000

DUN

—

184,916,000

169,513,000

40,496,000

8.425,000

Sept. 27

8,290,000

10,248,000

491,000

499,000

455,000

529,000

136

149

139

12,111,000

12,342,000

12,025,000

11,564,000

—<

BOND

.4.-.

301

191

6.196c

6.188c

$66.49

5.967c

$66.49

Sept. 30

$66.42

$43.50

$43.17

$42.83

$40.83

13.800c
10.500c

10.000c

11.300c

10.000c

.—Oct.

Oct.

10.000c

Oct.

24.700c

95.250tJ8' "M

,92.750c

94.750c

10.500c

10.500c
v

;

88.10

89.39

Oct.

87.09

89,64

89,78

90.91

89.64

93.97

94.12

95.16

94.41

92.64

93.67

92.35

89.37

89.64

90.48

89.51

83.15

83.40

84.81

82.77

87.99

88.13

88.81

87.99

88.81

89.23

91.05

Oct.

89.23

92.06

92.20

93.08

91.48

3.58

3.60

3.46

Oct.

4.44

4.43

4.35

Total
Total

$12,847,000
3,158,000
14,752,000

8,863,000

5,788,000

14,347,000
8,687,000
3,126,000

18,784,000
13,966,000
4,164,000

$50,765,000

$65,375,000

$43,514,000

12,234

12,454

11,361

FOR

ACCOUNT

Flaxseed
Rice

$49,800
;

■«

;

Initiated off the floor—

sales

transactions for account of members—
Total purchases
a.
sales

*24,100

$85,900

*$86,400

$91,000

3,588,766
1,446,464
1,170,768
275,696
21,224

3,487,159

12,100

Cotton

—

sales

4.44

Soybeans

4.06

4.11

Peanuts

4.23

4.16

4.25

Potatoes

4.38

4.45

.Oct.

4.93

4.91

4.80

4.96

sales

spring

(bushels

4.55

4.50

4.56

4.34

4.47

Early
I,ate

4.26

4.20

4.31

392.5

392.1

1,345,157

466,301
34,093

452,592

37.469

36,682

—

for

288,837

260,25G

299,431

Sept. 27

308,455

295,363

311,174

307,590

Sept. 27

300,659

Sept. 27

423,901

446,577

407,334

444,626

—

——

summer
summer

;

—

(hundredweight)

Tobacco

(pounds)
Sugarcane for sugar

Sugar beets (tons)
Bvoomcorn
(tons)

and

seed

(tons)

108.69

108.75

•110.31

1,509,410

1,926,830

1,239,350

433,790

293,390

342,410

265,600

1,201,980

1,523,970

3ept. 13

1,055,950

1,958,210

1,495,370

1,866,380

1,321,550

gept. 13

534,110

398,530

507,980

230,010

gfcpt. 13

32,500

43,100

41,400

Sept. 13

46,550

477,880

346,400

500,450

231,420

Sept. 13

510,380

389,500

Ordinary

541,850

277,970

Industrial

Sept. 13
Sept. 13
Sept. 13

677,929

517,270

618,410

375,045

705,455

864,225

Sept. 13

3,220,189

Pecans

83,860

119,710

84,020

673,046

659,430

792,756

391,459
475,479

2,425,210

LIFE

Total

Month

Durables

3.332,815

2,544,300

3,200,986

2,074,999

Nondurables

$54,312,556

1,038,465

1,275,383

852,235

5,334

5,446

11,539

1,420,487

1,033,131

1,269,937

Sept. 13

840,696

$64,937,244

$45,813,508

$55,131,067

$41,053,335

5,892

4,780
3,904

4,408

26,901
11,042

30,104

35,880

35,811

176,575
259,046

173,906

32,209
156,981

—

Sept. 13

sales

Sept. 13
Sept. 13

186,440

479,400

3~36~310

434~350

186~iio

406,080

TOTAL ROUND-LOT STOCK
SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT
STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total round-lot sales—
sales

6,750

50,845
126,813
72,089
29,564

——

July 31

(000's omitted)

NUMBER

—

FARMERS
DEPT.

TURE—1910-1914—100
All

farm

—

782,760
15,535,020

(1947-49

—

DEPT.

16,317,780

Aug.

186

117

118

Processed

•Revised
as

of Jan.

;

;
other than farm and foods.

figure,

lilncludes

1958,

against Jan.

Monthly Investment Plan.
one-half

cent

—

——

—

673.040

543,740
8,948,240

Poultry and eggs

15,346,570

9,491,980

Wool

Sept. 30

118.8

118.9

118.8

Sept. 30
Sept. 30

91.9

92.3

92.6

90.5

117.5

111.0

*111.4

110.2

105.2

Sept. 30

108.4

mo.o

106.2

91.4

Sept. 30

126.0

126.1

125.6

barrels

/J,,,

I UWJtilimmimtt

190

173,400

179,200

141,35*

$4,033

$3,823

$3,739

530

559

540

633

780

1,106

$5,196

$5,162

$5,385

28,303
21,509

28,528
"21,718

22,397

$49,812

'$50,246

$54,093

26,290

•25,747

29,030

$31,171,000

$31,172,000

$30,933

31,696

251

254

247

225

228

232

181

209

232

281

260

—

—;

Meat animals

—

RECT

AND

165

169

190

217

239

253

201

232

227

252

142

185

S3.16S

Net

purchases

UNITED

473

469

275

277

261
260

255

246

338

347

166

168

210

297

ST VTES

302

SECURITIES

August:

r-r»^T-iv—

BUREAU

169

483

TRANSACTIONS IN DI¬

GUARANTEED

A.—Month

Net

278

163

of foreign crude runs.
§Based on new annual
capacity of 140,742,570 tons
1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since
introduction of
?Prime Western Zinc sold on
delivered basis at centers where
freight from East St. Louis exceeds

pound.

983,000

Oil-bearing crops

TREASURY MARKET

foods

All commodities

—

jjj^jj^and hay

14,673,530

All

Meats

Feed,

554,170

Commodity Group—

240

1,050

15:
—

vegetables, fresh—;

Livestock
Dairy products.—

100):

commodities
Farm products

62,335
21,676
2,599

2,696

AGRICUL¬
of

products-—

11,766,890

12,321,060 '

75,510
28,204

INDEX

Fruit

531,570

40,135
118,548

July

Sept. 13
PRICES, NEW SERIES

381,420

51,918
125,999

(millions of dollars):

RECEIVED

Tobacco

-Sept. 13

sales

325,190

INSTITUTE

—

Potatoes

Sept. 13

Other sales

—

434,350

Sept. 13

Other sales

Round-lot purchases by dealers—
Number of shares

LABOR

336,310

239,539

15,497

—

Commercial

479,400

9,047

■

25G.344

1,076

Month

—

6,790

3,904
26,901
11,006

MONEY IN CIRCULATION—TREASURY DEPT.

PRICES

Sept. 13
Sept. 13

1,445,110

4,780

14,631

Sales

$46,827,523

1,657,410

Inventories—•

Total

1,426,379

1,796,785

2,809

PURCHASES

July

1,844,405
1,678,829

$03,732,858

585,887

15,771
3,270
479,841

„

2,697,466

1,177,189
$55,038,913

2,459

MANUFACTURERS' INVENTORIES AND SALES'"
(DEPT.
OF
COMMERCE)
NEW
SERIES

3,053,220
503,520

1,223,120

4,852

18,369

2,353

14,793

—

420,350

1,024,107

22,087

5,237

18,053

(barrels)

INSURANCE

2,123,950

1,333,254

69,092

22,611

18,806

(000,000's omitted):

625,060

396,170

63,941

5,303

7,332

—

Group

575,570

64,870
23,849

7,332

(pounds)

2,707,755

•

States)

LIFE INSURANCE

158,770

Sept. 13

Cranberries

10,964
121,402
11,313

10,604

—

(bushels)
(bushels)
T——
Grajies (tons)
Cherries
(12
States)
(tons)
Apricots (3 States)
(tons)

1,524,420

43,130
561,977

1,660,553

——

2,008,150

25,754

47,989

496,132
11,583
115,936

17,807

Pears

3ept. 13

435,695
26,528

1,728,292

Peaches

3ept. 13

200,221
1,308,360

18,315

—..—

(bushels)

707,201
239,901
39,680

1,750,693

—

crops

947,102

—

Hops (pounds)
Ajjples, commercial

3,402,832
•

10,641

(bushels)

(hundredweight)—

—-——

108.92

118,471
■

(pounds)

Sweet potatoes

34,093

47,747
579,132
12,105

—

beans

249,957

1,419,351

—

bag)
grain (bushels)

1,420,725
1,170,768

-7254,472

—

4.47

389.3

7
W

Early spring

4.56

Sept. 27

Sept. 13

Customers' other sales—
Dollar value

WHOLESALE

18,753
231,204

Winter
■

4.50

4.27

Hay, alfalfa (tons)—
Hay, clover and timothy (tons)
Hay,
lespedeza
(tons)
Beans, dry edible (cleaned) (100-lb. bags)
Peas, dry field (cleaned) (100-lb. bags)

•

4.44

388.8

1,
-

Hay, all (tons)
Hay, wild (tons)-.—-

4.13

Odd-lot purchases by dealers (customers'
sales)—

Short

(bales)

4.23

Sept. 13
STOCK TRANSACTIONS FOR ODD-LOT
ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE
COMMISSION:
Odd-lot sales by dealers (customers'
purchases)—t
Number of shares
Sept. 13
Dollar value
sept. 13

Total

12,100
;

(100-lb.

Sorghum

4.46

Sept. 13
Sept. 13

Other sales

Round-lot sales by dealers—
Number of shares—Total sales

*$50,200

$54,100
12,700
24,100

24,000

■

(bushels)

4.14

Sept. 13

sales

total

i
■!

.—

3.64

MEM¬

the floor—

Number of orders—Customers'
Customers' short sales

2,331,000

Barley (bushels)
Rye (bushels)

Oct.

—

sales

Short

•"

10,426,000

July:

sales

■Short

1,145

;

Total

round-lot

Total

Month

Oats; (bushels)

.Oct.

Oct.

Other sales
-

„■

1,253

(in thousands):

spring
(bushels)
Durum
(bushels)

Other

Oct.

of Sept.

Oct.

Short sales

"r-M.yf.*;

$22,G73,000

All

93.125c

88.28

Oct.

;

Other transactions
Total purchases

Crop

26.000c

Oct.

Total sales

—

——

10.500c

;

Other sales
^

..-.165

$15,742,000

—

-1—L—-J—

^'Winter -(bushels)

100

Other transactions initiated
Total purchases

10.550c

Other sales

Short

106

1,127

—

Corn, all (bushels)
Wheat, all (bushels)—

Total purchases

Short

—

14.000c

BERS, EXCEPT ODD-LOT DEALERS AND
SPECIALISTS:
Transactions of specialists in stocks
in which registered—

Total

Manufacturing

23.850c

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
—

97
588

181

dollars):

26.525c

TRANSACTIONS

SERIES

10.750c

—

AVERAGE

NEW

26.050c

(tons)
activity
Unfilled orders (tons) at end of
period
1949

2.04.,

613

'■

■';

MERCE

24.750c

ROUND-LOT

255

105

.158

BUSINESS INCORPORATIONS
(NEW) IN THE
UNITED STATES—DUN &
BRADSTREET,
INC.—Month of August--.

11.000c

Group-,
Group.

Percentage

26.100c

Production

; ;

AVERAGES:

PAPERBOARD ASSOCIATION:
Orders received (tons)

■

liabilities-'

25.850c

NATIONAL

—

26.100c

MOODY'S COMMODITY INDEX

service

Total liabilities

;

11.500c

Oct.

Public tJtilities

549

•

—

25.900c

Group

Commercial

——;

Baa

PRODUCTION — CROP REPORTING
BOARD U. S. DEPT. OF
AGRICULTURE—

Industrials

■

108

—.

liabilities

Retail

6.196c

Railroad

182,267,000

14,012,000

a,353,364,000 1,227,394,000

206

liabilities

Construction

Average corporate
Aaa

250,722,000

523,998,000

—

Retail liabilities

261

Sept. 30

Oct.

—

DAILY
Bonds

Wholesale

268

Sept. 30

YIELD

U. S. Government

liabilities

—

Group
Group—

Industrials

.198,110,000
66,385,000

r
4

Oct.

—

Public utilities
•

■

number—_

number

Oct.

MOODY'S

•

Oct.

PRICES DAILY AVERAGES:
Bonds-

—:

Total

Manufacturers'

(Millions

Railroad Group

•

$242,622,000

378,737,000
22,488,000
290,371,000
140,950,000

BRADSTREET,

service

|253,939,000

—

——.—Oct.
-

Average -corporate
Aa

000

( ROP

—L.

Straits-tin (New York)-at—

-.'7

shipped between

number

Commercial

U. 8. Government

'77

——a_—

number

Construction

15,403,000

;

QUOTATIONS):

(primary pig. 99%)

MOODY'S BOND

•-

,316,156,000
! 131,175,000

-j—; .1363,095,000

Wholesale

at——s.-—

refinery

Zinc 4East St. Louis)

■-

148,442,000

172,312,000

30,596,000

*——.

Lead (New York) at
Lead ASt. Louis) at
tZinc .(delivered) at
-Aluminum

*'<>

71,569,000

212,808,000

8,895,000

——Oct.

—

Export refinery at—_—

'!.••••

Eleeti-olytic copper—
Domestic

j 21,318

!■

Wholesale number —.

605,969

PRICES:

rc-METAL PRICES (E. & M. J.
„r

and

V■'

384,855,000

■

**.

—

Oct.

INDUSTRIAL)

lb.)—_—r

stored

Manufacturing

739,266

77,637,000

piK iron (per gross ton>_

EUSINESS FAILURES—DUN &
INC.—Month of August:

Oct.

—-Sept. 27

Scrap steel-(per gross ton)—.—

•

..Sept. 27

AND

—

COMPOSITE
Finished steel (per

y' 'Total

Retail

goods

foreign. countries.

<
'

—

credits

Ago

—$255,652,0001 $269;096,0d0

exchange ——-Li——-1——* 1

Based

57,716,000

645,432
544,872

INSTITUTE:

(in 000 kwh.)—

(COMMERCIAL

IRON AGE

Dollar

12,288,000
7,929,000

INDEX—FEDERAL RESERVE

AVERAGE

BRADSTREET, INC.
7

warehouse

.667,277
557,921

COAL

Domestic

construction

State

shipments

7,918,000

Year

Month

Public construction—

CONSTRUCTION

construction

6,820,865

——.

Revenue

;—_—i

Exports
Domestic

28,428,000

ASSOCIATION OF AMERICAN RAILROADS:
7"

of that dates]

Month

DOLLAR ACCEPTANCES
OUT¬
STANDING — FEDERAL RESERVE
BANK
•OF NEW YORK—As
of August 30:

:■ '•

.173,470,000
28,624,000
138,322,000

Kerosene

either forth*

are as

BANKERS'

2,105,000

1,978,000.

12,310,000

bulk,tc3*rninals, in transit, in pipe lines—
gasoline (bbls.). at
—Sept. 26

Pinislied and unfinished
..

82.2

Imports

.—-Sept. 26

of quotations,

cases

Ago

65.9

>1,901,000

Sept. 26

(bbls.).

average

Kerosene output, (bbls*.)."

Residual 4uel

Ago

'70.4

or,

are

Latest

stills—dally

output; (bbls,>—_-_i——

■

Distillate

§1,918,000

Dates shown in first column

that date,

production and other figures for tha

cover

Year

;

gallons each )——i!—

Gasoline

§71.1

Oct. 12

Month

Week

;

and

AMERICAN PETROLEUM INSTITUTE:
Crude «il and condensate
42

Oct. 12

month available.

month ended

Week

TUii.-wXWUi.WtTW

$19,127,900
EXPORTS

CENSUS

—

AND

$58,167,000

" $26,400,000

$1,407,900
1,036,600

$1,691,800

IMPORTS

Month

July

(000's omitted):

Exports
Imports
•Revised figure.

A<nnnn

—

$1,419,000
1,065,000

1,146,500

The Commercial and Financial Chronicle

...

Thursday, October 9, 1958

(1510)

(Special to The Financial

Chronicle)

FRESNO, Calif.—Ralph K.
inson has joined

Sponsoring
Education Program

Mutual Funds

Rob¬

the staff of Hall

tion,

High;

Investing in Mutual Funds Continues

•.

...•

• V. /

■

:;i-l''

Other

Exchange.;;/
.7 7-777; 7
/;.7 Exchange Commission, became
> Mr:
Wiesenberger
confirmed, effective on Sept. 1Z 1958./* / 7
that a further important feature
The * fund is unlike any other
...

during the six month period in¬

Pennsylvania with $47,986,000; Illinois with $34,406,000;.
with $30,619,000; Massachusetts with $30,350,000; . Ohio
with $24,770,000; Florida with $23,496,000; Michigan with $23,254,000: Minnesota with $21,008,000; Texas with $19,413,000; Washington with $15,857,000; Iowa with $15,037,000; New Jersey with
$14,158,000; Kansas with $13,167,000; Oregon with $10,528,000, and

this project was the distribu-v
tioii of his well-known reference
of

out

Association

comprises

146

and

open-end

and

reported that the nation's investment companies
in net assets, sales and shareholder accounts
during the six months period ended June 30. The number of share¬
nation-wide

both

panies totaled 3,671,285 on that date,

types
new

scope

the

Initial

FREE ON REQUEST

Lazartl

J Incorporated
Investors

I
I

ESTABLISHED

(

I
I

1925

report of The Lazard
Fund, Inc. for the period ending

Sept. 30, 1958 disclosed net assets
$122,851,003 equal to $14.45 a

list of securities selected for

possible long-term growth of

{

capital and income.

shares out¬
standing.
The fund started on
July 11, 1958 with $117,937,500 or
$13,875

j Incorporated 'I

the 8,500,000

share.

two

was

and

one-half

A mutual fund

list of securities for current

•

income.

than 90-day maturity.

Albert J.

J
1

I
I
■

investing in

A prospectus

on each
fund is available from
your

investment dealer•

The Parker Corporation

200 Berkeley Street

Boston, Mass.

I
I

month

period and to date $84,420,086

Income Fnnd

Corporation;

ern

loan industry realized that money
once saved by individuals in sav¬
ings and loan associations is now"

has been tackled before by
financial
community,"
Mr.

Standard Oil (New
du Pont (E. I.) de Ne¬
Co.; International Busi¬
Machines Corp., and South¬
Pacific Company.

Saving Years and the Retirement
;.

How. to appraise which in¬
vestment company or mutual fund

not

fluctuate.

is most suitable for them and how

worth

(4)

choose

among

the .nearly

250

face

drawable

for

such

value

Largest in History

accounts offer an.ideal

investment

the

National's Sales

loan

Years.

quarter.

less

than

one

In certain instances pres¬

ent holdings are less than our ob¬

Broad

Street

Sales-;

Corporation,

7 tunes

size

relative

commitments—the
is

simple

cluded

are

one:
some

long

individual
run

test

performance. In¬
equities of com-

are

with¬

They

IN the

PessArtties in

ELECTRONICS
Merest Yoii?

WHY NOT
INVESTIGATE

the national distributor for shares 7 here and abroad under the supers

vision

of National Investors.

professional

investment

Proceeds to the 22-year old in¬
managers. >
jectives; they simply represent
"More recently,"
what, in light of market conditions vestment company/ from 84,322 7
Mr. Wiesen¬
and our judgment, we have been new shares sold during Septem¬
berger emphasized, "this growth
either able or willing to acquire ber totaled $920,285.
This repre¬ has been accelerated by the in¬
as
of Sept, 30,
a
gain
of
36%
from creasing awareness on the part of
The bulk of the sented
portfolio naturally consists, as it $677,096 in August and 82% from the investing public of the inex¬
is likely to at all times, of selected $505,983 in September 1957.
orable march of inflation.
The
issues of leading companies; here
Redemptions of National - In¬ 7 dollar of a century ago is now
there is ample scope for judgment vestors
shares
by
stockholders worth less than 20 cents. The dol¬
both in the names selected, and stood at $232,715. As a result, net lar of 20 years ago has shed more

the

always

are

penalty.

lawstnent

diversified '' Industries

new

fund

money

the month of September

totaled
an

than half its

invested in the mutual

$687,570, which
all-time high.

was

"It

also
.

of
.

value."

the hope of the

TELEVISIONE L E CT ROW C S

FUND, IMC.
A Mutual Invest¬

ment Fund
assets

whose

arepwnarily

invested: fur possi¬
ble long-term

growth of capi¬