Full text of Commercial and Financial Chronicle : September 11, 1958, Vol. 188, No. 5776

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Hs!IVEr--.

ESTABLISHED I S3 9

tilCtilGA

T3

Commercial
Financial

business

i

n

administrj

Reg. U. S. Pat. Office

Volume 188

Number 5776

EDITORIAL

New York 7, N. Y.,

V

V

Vvi 'v\:

.

a

what the New York

Tq meet domestic and foreign challenges, Mr. Nixon's
program includes a reduction in corporate and
upper perance

program;

extension of unemployment insur¬
and adoption of policies to halt inflation.

both the intricate

equipment of national defense,
right arm of peace, and manning the
constantly improving systems of national produc¬
tion, to which our standard of living is secured."

that

should have

we

sure that
"they will meet these tasks with
ability and stamina and pride."

cal labor

relations, it is evident that the President
altogether easy in his mind. For he adds
that "experience demonstrates" the
necessity of

believe

our

con¬

their

tive

to

confine

span

rights to

ber
Richard Nixon

U. S.

in

•

ber's

"ending of summer"
to

from

4,000 to

erators
same

Hence

both

and

I

has

in

$2,032

home

of

to

30
of

in

first

tial

Product

has

has

owners

automobiles

gone

mediate

from

seven

to

40

million,

Anthony

increased

*From

an

Sept. 6,

address

of

by

Nixon

Mr.

before

the

child

to

as

it

is

Gaubis

BROKERS

26

improving

sales

is difficult, if not impossible, to judge
just how long this situation might last, although

term trend is toward progressively more
inflation, in
light of the emphasis placed on expediency, rather than

50th

Anniversary
Harvard Business School Association, Boston,
Mass.,

undertakings in

our

"Securities in Registration"

Continued

Section, starting

MEMBERS

and

STATE

and

INDUSTRIAL

PUBLIC
&

on

on

page

25

State, Municipal

32.

page

MUNICIPAL

PACIFIC

COAST

EXCHANGE

BONDS

Inquiries

Invited

California

Bonds and Notes

MEMBERS NEW YORK AND AMERICAN STOCK

is broad street. new york 5, n.y.

•

dl 4-1400

TELETYPE NY 1-22B2

t.l.WATSON&CO.
ESTABLISHED

V

1832

Members

New York Stock Exchange

California
New

York

Bond Dept.4

Active

Teletype: NY 1-708

Markets

Dealers,

Banks

Stock

Stock

Exchange

Brokers

CANADIAN

lines common
CANADIAN

BONDS & STOCKS

<S0UtflU>€At COMPANY
DALLAS




-

STREET

NEW YORK 4, N. Y.

DIRECT

WIRES TO

&

Domcooh Securities
Grpokatioti

Co.

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

•

PERTH AMBOY

115 BROADWAY

NEW YORK

1 NORTH

Municipal Bonds
for California's

Economy

MONTREAL AND TORONTO

Goodbody

BANK

Expanding

Teletype NY 1-2270

BROAD

Chase Manhattan

♦

DEPARTMENT

'

25

THE

Correspondent—Pershing & Co.

Bought—Sold—Quoted

Exchange

DEPARTMENT

Maintained

and

trans-canada
pipe

New York

•

American

Co.

Associate Member American Stock Exchange

Net

;

&

Hope Street, Los Angeles 17,

Members

OF NEW YORK

EXCHANQES

To

*

Securities

BOND

Dealer

J- •
:y.yy.y.ys&y

Southern

Lester, Ryons

Burnhamand Company

y

Housing Agency

UTILITY

623 So.

Distributor

on

FOREIGN

CABUC: COBURNHAM

Public

Trading Honrs

THE FIRST NATIONAL CITY BANK

DEPARTMENT

%

are

certain

1958.

DEALERS

30 BROAD ST.,N.Y.

;

trends

to be of limited duration, in view of the
underlying risks as judged by such fundamental factors
as productive capacity in relation to
potential demand;
the relationship of stock prices to
earnings, etc.
(2) There is little question but that the very long-

labor

page

market

activity,

earnings' reports do exert a pow¬
erful—even if temporary—favorable
effect on speculative psychology.
It

from

on

stock

and

7,000,000, the number of refrig¬
23,000 to 47,000,000. During the

from

use

increased

BANK

.

following

contrary to those witnessed in

business

num¬

has

SECURITIES

•;

the

and

CORN EXCHANGE

,

submit

eco¬

picture.

(1) The trend of business activity
has been upward since April of this
year. In spite of the fact that inter¬
often

million, the annual produc¬

Continued

24

the

a year,

UNDERWRITERS

Municipal

•

the

•

HAnover 2-3700

Underwriter

of

market

Favorable Factors

.

-

as many as

RAILROAD

BOND

sides

stock

half-dozen most important elements
on both "sides of the medal." •

period, primary and secondary school attendance

Conference

CHEMICAL

FIRST

review

nomic

10:00 AM-5:30 PM E.D.T.
telephone:

Septem¬

on

the

as

securities

Securities

.

20%.

Government,

State and

final

beginning of a new
business "season," this is a good time

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

DEALERS
'

7

tion

largely to matters
page

in

of

unsurpassed

National

from $188 to

a

on

determined

area

progress

Gross

our

representatives

Continued

be

areas presages

widespread emphasis placed

quadrupled. Translating this drama¬
tic figure into individual
terms, we
find that during this same period
per
capita
income
has
increased

Day statement. We suppose,
fitting for the Chief Execu¬
remarks

of at least
In view of the

history.
In the 50-year life
of the Harvard Business School,

was

his

will

highly speculative market

decision,
it is essential that we
constantly re¬
examine our ideas to see if
they ac¬
tually can prevail.
If we are to judge the worth of our
American idea solely in terms of
results, we can point to a record of
economic

mockery of the
collective bargaining
relationship, endanger in¬
nocent third parties and
give rise to lawlessness
and harmful abuses of
power."
:
Labor

interest in

bull market stage. Advocates stock
purchase funds be
confined to "special situations" or reserved for setbacks

world

organize and bargain collectively (and) that the
public be protected.against unfair labor and man¬

a

failure

or

If this is to be the

¬

was

Points to possibility of tax rises en¬
hancing relative attractiveness of bonds. Maintains rising

classless

a.

success

the realm of ideas.

organizations be used solely to advance the wel¬
fare of all the members,1 that
organizations of
working men and women be administered accord
ing to the free will of .their members,, that ^ work¬
ing people be fully protected against any dealings

This

inflation" levels.

closer to Socialist goals of

society through the
medium of private capitalism.

I

is not

therefore, that it

concludes stock purchases at present time
carry undue
risk and should be deferred until
they return to "ex-

In the critical years that face
us, years in which the
destiny of the world will be shaped for decades to come,

Notwithstanding this bit of conventional politi¬

agement practices that make

come

prosperity for all in

.

He is

the exercise of workers'

Market economist details both favorable and unfavorable
factors of the economic and stock market
picture, and

Denies his tax cut proposals favors business and not the
people by pointing out '"business is the people," and con¬
tends we should not fear a
temporary budget deficit so
long as it ensures economic growth. Terms it ironical

which is the

certain

By ANTHONY GAUBIS

Anthony Gaubis & Co., Investment Counselors

'

sonal income taxes;

working men and women of America have suc¬
cessfully met every challenge set before them.
Now they are faced with the task of
maintaining

that prevent

And Stock Prices

Vice-President of the United States

Day statement offered
"Times" termed a "guide to

and management

Copy

Outlook lor Business

Labor

"guarantees," namely that "funds
tributed by workers to the treasuries of

a

-By HON. RICHARD M. NIXON*

reform" for the benefit of business and labor. In
the course of these remarks he said that "the

between labor

Price 50 Cents

Expanding Our Heritage

As We See It
The President in

Thursday, September 11, 1958

40
LA SALLE ST.

CHICAGO

Exchange Place, New Y ork 5, N.Y.

Teletype NY 1-702-3

WHitehall 4-8161

MUNICIPAL BOND
DEPARTMENT

Urntlt of Atttmca
nationalhvyngs association
300 Montgomery St., San Francisco,

Calif.

The Commercial and Financial Chronicle

i

2

...

Thursday, September 11,1958

(1002)

For

The

Dealers only

Banks, Brokers,

they to be regarded,

Lehn & Fink Products

the

rather

New York Hanseatic

While

WOrth

Private

Wires

in

the
the

was

j

McDonnell & fa
Stock
Stock

Exchange
Exchange

However, in early 1956 the com¬

developed and adopted a
continuing
five-year
plan 'de¬
signed to promote the growth of
the company's sales and earnings
through the development of new
products, increased efficiency in
management and operations, and
the acquisition of new lines of
business. This plan is already beginning to show favorable results
and
is
particularly
responsible
for my selection of this company's
the
stock
as
"Security I Like

MUTUAL

SECURITIES
FUND OF BOSTON

Prospectus on Request

,

GENERAL DISTRIBUTORS

11.8%

rc>

*

million,
further increased by 6.2% in

and

3 e^AAAJstoeA CO., INC.

ZERO COURT STREET, BOSTON

(Corner of Washington

1957 to

Sales

9, MASS.

St.)

for the fiscal
are as

ended

year

yet unreport$30

but are estimated at about

ed

million.
At the

I
-

time, 1956 earnings
per share on the
326,600 shares currently outstand'
'
ing; $3.72 was earned in 1957, and
same

increased to $2.93
-

PENSION FUNDS

for

the

first

earnings

of

the

$2.63

year

was

earned.

INSURANCE COMPANIES

months

nine

fiscal

current

INVESTMENT TRUSTS

The

liberal

additional income pos¬

sibilities through the sale of
Put

and

worthy

Call

are

of investigation.

representative
will be

Options

of

our

A

firm

to

who

those

are

;

ber,

\

Inc.

Ask

for Booklet

on

Hoiv to Use

has

of

recurrent

resulted

in

a

high
more

dividend

$1.40

annual

,

preparations, and in Septem-

1957,
was

National Laboratories;

acquired for

sideration

of

a

cash

con-

approximately

$2

Put & Call

Brokers &

120

Broadway, N. Y. 5




BArclay 7-6100

of

Yamaichi Securities Co., Ltd.

;

Tokyo, Japan
Brokers

&

Investment

Bankers

111 Broadway, N.Y. 6 COrtlandt

;

7-5681

capital

fofgh
well

Net

)Net

"

1958

(est.)

Income

*

'

.

:

-v

Sabre-Pinon
Corporation

-

Harbison & Henderson,
Los Angeles,

Calif.

Cohu Eleotronics, Inc.

Inc.

Cohu"1 Electronics,

repre-

Brochure

on

Request

has-^istinguished itself as a leader

in the

in

dustry. This
leadership has

agement
Mr.

Jieaded by
L

while

ofConvair

Kenneth e. Mangum
;

while other

_

1948. to
-,w
i.

from

_

1952, now a division of General
Dynamics Corp. Prior to that he
was president of Trans-World Aif-lines Inc.
\ Cohu Electronics, Inc. has grown
jnt0 a network of five compatible
Cohu

electronic divisions since Mr.
ctPnnPH

The company started in Sa
(California)

as

1954

in

niWdent

in

Q

in

nioCfr,

g

tiny laboratory

a

Kalbfell Laboratories, Inc.

1947, the outgrowth of a part¬

nership started in 1945. The name
!

Price '

$3.67

■

Dividends

$1.70

-

R-»nec

j

'

34-25

was

changed to Kay Lab in

Sep¬

Lab was

then

tember

1954.

Kay

1.50

2«-19

1.00,

3.72

21-16

a^d liabilities were

22-16,.

share-for-share *

27.3
25.7

1955...

23.0

'

.0.20

1954

22 0

'*

1.06

4.8

3.21

1.25

1953

22.9

1.20

5.3

3.58

1.25

2.93
-

1.00

.

acquired on a

basis

by

Cohu

19-14

N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
19-Year Performance

-

y

of

35 Industrial Stocks
FOLDER ON

REQUEST

National Quotation Bureau
IlMMH 'IHWflrtftfl

46 Front Street

23-16
-

Having**

in 1957, and all assets

liquidated

1P57

0.61

the
made
presi-

in

progress

Foreign manufacturing facilities are maintained in company-owned plants ' in England,

*0.9'--.:

T.

for his

items)

N. J.

3.7

e

M !r.

widely

part

products are mainly distribwholesale drug chan-

1*4.5

11

o

known

uted through
uwu uuuu6«

4.0

M

Cohu is

treatment "ems).

$1.20

a

Cohu.

(deodorants, toilet spe¬
cialties, make-up specialties, per¬
fumes, hair specialties and skin

Earnings

Y.

superb man¬

metiques

pe-S*"\Te

\\

ESTABLISHED 1888

72 Wall Street, New York 5, N.

its

through

bath preparations, an<U
sunburn lotions) and Tussy Cos-t

France and Germany

Frederi c H. Hatch & Co., Inc.

lished, lnpaft,

let waters,

Sales

estab¬

been

ments, special skin treatments and
make-up, perfumes, colognes, toi¬

Its

the

electronics in¬

™orants,..Hinds Honey & Almond
5afpan nnrnth^'
-^in.se'creams, hair Grayscalpoducts
Dorothy and
p treat¬
(skin

^tment

Best"

of

growth

dynamic

the

manufacture of more than 500
proprietary drug and cosmetic
Products. It is best known for its
Lysol Disinfectant, Etiquet Deo-

1956

-

NUCLEAR AGE

E. MANGUM

KENNETH

1965.

0.96

*

as

senting ''The Security I Like

1.24

$30.0

potential

gains

'

million in 1955 to 30.1 million by

Net Inc.

As

FOR THE

; Lehn
the star

in

turn

its.very attractive current

as

yield

Statistical Background Data

Sales

RAW MATERIAL

general market.
should

'

Dealers Assn., Inc.

In®.

York,

Affiliate

performance. It is recommended
to all types of investors for its

(Excluding Unremitted Foreign)
(In Millions)

Members

Fink

called

Stock Options

Filer, reunion Co.

the

form

&

nels, department stores, pharmapies, drug chains, grocery chains
and (in bulk) to hospitals and institutions. Its principal plant is
the business of the Ogilvie Sisters at Lincoln, 111. Other manufacturwas
acquired, a long-established ing, general office and research
and
well-known
distributor
of laboratories
are
at
Bloomfield,
hair

interested.

New

methods,

business

sound

of

coupled with the alertness neces¬
sary to capitalize on future trends,
bringing continued stability and
As for the United States, op¬
long-term success, the stocks of
timism for the future is predi¬ the various, companies in "the in¬
cated on the continuously improvdustry must continue to out-per¬

yield on the recent $32 market
price (NYSE).
During the past 18 months two
major acquisitions were effected;

glad to explain the

subject

advent

policy. The curcash payment;
was supplemented by an extra 30£
payment in June, making a total
of $1.70 for the year, and a 5.3%,
rent

The

of

United States.

Lehn & Fink is engaged
„
^

$27.3 million.

June-30, 1958

2-2530

Telephone Richmond

tion

pre¬

over

vious year's sales to $25.7

KELLER BROTHERS
C

continual

that

growth in that market will be at
a
more
rapid pace than in the

ing perfdrmance by the industry
since 1950 as well as on forecasts
that by 1965 the over-14 population figure should reach 137 million
while
disposable
income,
should hit $395 billion. In addition, the refusal of women to age
prematurely has created tremendous demand for preparations to
soften and preserve the skin. Ac¬
Best."
The company's fiver-year plan, cording to the United States Bu¬
reau
of Census, the 45-and-over
put into effect in early 1956, saw
female population in the United
immediate results in 1956 sales,
States should increase from 2L5
which increased

.msf.

Securities Company

attention to foreign; crowth Plan

and

cosmetics

television programs
April 1955 to June 1955.)

pany

TEL. RFctor 2-7815

-

-

.

tins

major

from

BROADWAY, NEW YORK 8

(20

•

write

$25.7

two

Members

York

.-

,

sales growth is based on the well.
'
,
...
,
f
supported premise that sociologit as apparent tnat tne mvestical changes as well as socio-eco- ™en1*; ™ents of
company s
high of $3.03 in 1953. (In 1955 re- nomic changes abroad, especially stock nave not been realized by
suits were adversely affected by in Europe and South America, ■.are,,,*1®;raY®S"ng public. As tne_costhe simultaneous sponsorship of leading to an increased
use
of metlc industry continues to grow
and prosper through the applica¬

Since 1917

American

added

.«

rr

million in 1956 while
earnings fluctuated from a low of
51 cents per share in 1955 to a
to

RIGHTS & SCRIP

New

The

\\ J'

or

Yamaichi

ja

,'c„mt

°

and improved products lor systematic use in the company's

1QC;7

on

Call

reseaich nto the

1,refu?r,l
Grants have been made to the research departments of some of
America's leading medical schools,
?nd°the,r grants are in prospect to
jHf. ?r dermatologieal knowledge.
Th's 13 expected to result in -new
!

$4.07 per share for the year ended

level.

this period sales in¬
creased from $21.7 million in 1952
During

For current information

fundamental properties of the skin

earnings, the net result would be

months

STOCK S
'

^ ca e items, t e com
its atteni ion to,

s/ *n ?

PaiW is turning
more anc* deepei

operations totalling
35
cents per share. If these earnings
are
consolidated with
domestic-'

Hofstein

Irving

branch offices

JAPANESE

to

sub-

the year ended

for

our

em-

.

1957 was net income from

June 30,

lived since the

Specialists in

Direct wires to

11

phasis on research, primarily on
germicidal and disinfectant prod-*

foreign

price

the $16

Additional

COUntries.

other

in

NY 1-1557

Mobile, Ala.

is conducted

of agents

premises

on

South

and

income

dated

in

stock receded within a few
to

manufacturing

ejgn

American
branches have been included in
income. Not included in console

short¬

was

foreign

from

company

Exchange

New Orleans, La. - Birmingham, Ala.

only'E^catise a large percentage

actually remitted

amounts

sidiaries

though

1954,

Canada,
Other for-

greater

July 1, 1949

'

York Stock Exchange

HAnover 2-0700

in

leased

are

Brazil and Argentina.

considerable at-

to note that since

high of $23 was

the latter

was

New

19 R*ctor St., Hew York 4. U. Y.

ucts, js being concentrated in the
continuity of earning power.
In German subsidiary.
this connection it is interesting v
„
?

at

reached

Members

Members American Stock

definite progress has

and

'

Steiner, Rouse & Co.

(page 2).

v

the do-

at

directed

►

Kenneth

of Harbison & Hen¬
Los
Angeles,
Calif,

derson,

facilities

plan

been made in establishing

$13% while the

FRANCISCO

—

are

five-year

been given

have

narrow

sold

stock

Principal Cities

to

a

1952 when the

York 5

CHICAGO
SAN

4- •

E. Mangum,

the company's
foreign business and investments

period

Exchange

Teletype NY 1-40
•
•

Louisiana Securities

—

Bought—Sold—-Quoted

Cohu Electronics, Inc.

business,

tention

Member

4-2300

BOSTON

mestic

during
the years 1952
through 1956*.
The low point
during this

Established 1920

the

specifically

range

Corporation

PHILADELPHIA

in

Fink

&

is

infectant products.

stock of Lehn

HANSEATIC."

Stock

Corp.

2).

company

leading man¬
products
and sanitation,

products

Lehn &

had for the most part kept
market price of the common

the

American

Products

related to
Fink's present line of dis-

its

and

years

120 Broadway, New

Fink

&

viser, Beverly Hills, Calif, (page

chemical

maintenance

for

Corporation

latter

of

ufacturers

A comparatively desultory and
stagnant sales history in recent

yoiCre getting
widest possible coverage,

nor

of the country's

one

Beverly Hills, Calif.

nation¬

This

million.

Investment Adviser

of

range

To make sure

Associate

Lehn

offer to sell the securities discussed.)

as an

IRVING HOFSTEIN

wide wire system.

"Try

be,

(The articles contained in this forum are not intended to
are

our

&

Alabama

Irving Hofstein, Investment Ad¬

Trigger-quick service and
Contacts through

Participants and

Their Selections

particular security.

participate and give their reasons for favoring a

department offers

broad

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

fa the investment

Our experienced trading

a

This Week's

Forum

A continuous forum in which, each

Try "HANSEATIC"

reaches

Security I Like Best

Continued

on

page

14

New York 4, It V.

Volume

188

Number

5776

.

.

The Commercial and

.

Financial Chronicle

(1003)

3

'

index

Keynes's "Greatest Achievement"

,

By HENRY IIAZLITT

Mr.

v:

Hazlitt

explains

famed

Say's Law of markets which
basically holds that a general overproduction of all commodi¬
ties is not possible and that
purchasing power grows out of
production. Depicts as fundamental Keynesian fallacy his

.

attempted refutation

the ground that

held it, and involved himself in
■

We

Expanding

this

alone securing his title

as

fame:
Tians

now
o

c

may

—Allen

volume, "The Breakof Keynesian Economics"

EDITOR

power

lib¬

e

fall

glo-American

and

may
conclude

that

this

was

Henry Hazlitt

essentially
work

a

of

negation unmatched by
comparable positive achievements.

Even, however, if Keynes
receive credit for

were

nothing else

his title to fame would

be

.

to
.

.

secure

(Yet) the Keynesian attacks,
though they appear to be directed

v

.

.

against

variety of specific theo¬

a

ries, all fall to

the ground if the

validity of Say's Law is assumed.1
•*

It is

on

rise

demand

to

for

ducer wants:

nomic but

as

a

in

the

aggregate

looked

its

thus

are

is

subject

recognized

a

special

kind

Association

a

modern statement of

Say's

Laws, I turn to B. M. Anderson:
.

"The

central

involved
war

in the

theoretical

issue

problem of post¬

economic

adjustment, and in
the problem of full employment in
the postwar period, is the issue

or

doc¬

'

"Those who advocate vast gov¬
ernmental expenditures and defi¬
cit financing after the war as the

only means of getting full em¬
ployment, separate production and
purchasing power sharply. Pur¬
chasing power must be kept above
production if production is to ex1 Paul

M.

Sweezy

in

The

New

Eco¬

2

Op.

cit.

3 Vol.
non

1,

edition,

pp.

be

given

in

the

special

Convention

j.f.reilly&co.,!iic.

and

Members Salt Lake

City Stock Exch.
Spokane Stock Exchange

October 23rd.

on

"refutation"

consists

in

Business

40

.___

Investment

Seismograph*
___

8

____

Recommendations

Defense?"

8

Third Line of

a

;

_

18

J

Sonoma Quicksilver Minos
*

Overproduction

From

Washington Ahead of the News—Carlisle Bargeror.

.;

..

■

%

.

........

...

,

^

■

^

•

10

.

.

Indications of Current Business Activity

any¬

Mutual

Funds

NSTA

__

Report

38

_

Singer, Bean

30

-

mackie,

16

&

23

Notes

News About Banks and Bankers

HA 2-9000

classical

Our

theory,

of

Public

that

two

five.

problems

do

upon

4 Economics

and

390.

the
-

-

page

Public
-

Philadelphia

39

Securities—

___—

1

in Registration

Now

Prospective

Securities

Security

Salesman's

—

The Market

West water

36

Coiner

.

.

18

and You—By

.

Wallace Streete

Security I Like Best.

Quinta Corp.

16

The

State

of

Trade

and

2

—

Industry

Ling Electronics

4

—

Washington and You

-

40

Twice Weekly

Witco Chemical

Company

B.

U.

S.

Park Place,

HERBERT D.

Patent

DANA

REctor

Spencer Trask & Co.

Reentered

as

second-class

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

Office

COMPANY,
New York

2-9570

to

Members New York Stock Exchange

7,

Subscription

N. Y.

9576

Subscriptions
Possessions,

SEIBERT, Editor & Publisher
'

J

Other

in

Union,

of

Canada,

Countries,

Every
plete

Boston
.




Glens Falls

Chicago

Schenectady

.

_

8
o?

$68.00

$72.00

per

year,

Thursday

Worcester

Other

city
111.

—

135

news

per

year

year.

clearings,

La

STate

$45.00

Salle

St.

2-0613)

and
per

INCORPORATED

39

BROADWAY, NEW YORK 6
3-3960

Teletype NY 1-4040 & 4041
Quotation

year.

Record

(Foreign

—

Monthlj

Postage

extra.

Direct

Wire

to

Note—On
the

-■

South

Bank

m V. FRANKEL & CO.
WHitehall

Publications

ad¬

(com¬
quotation

bank

etc.).

(Telephone

and

Monday

market

news,

news,

Offices:

3,

every

issue

corporation

and

Chicago

(general

and

statistical

records,
state

issue)

♦

Id

Thursday, September 11, 1958
Other

Nashville

TJ.

Members
per

-

vertising

Albany

States,

and

$65.00

'

TELETYPE NY 1-5

Request

Rates

United

Territories

Pan-American
Dominion

"T

.

on

Publisher*

WILLIAM DANA SEIBERT, President

ST., NEW YORK 4, N. Y.

Prospectus

matter Febru

ary

Reg

Corp.*

Copyright 1958 by William B. Dana

FINANCIAL CHRONICLE

25

f

Corp.

Welfare,

'

WILLIAM

25 BROAD

Dallas

Sabre-Pinon
The

19

PREFERRED STOCKS

TELEPHONE HAnover 2-4300

Chicago'

32

.

Offerings

The COMMERCIAL and

specialized in

■

25

—

*

have

to

Los Angelas

20

—

make

not

on

San Francisco

Alaska Oil & Minerals

this negative truth.

Continued

22

^

Securities

Securities

They do not explicitly build

two

Governments

on

Utility

Railroad

p r o b 1 e m s
tacitly taken for granted. Mathe¬
maticians
seldom stop to assert

and

Reporter's Report

which

specific eco¬
if its truth is

nomic

Reporter

Our

Say's Law is not explicitly needed
solution

inc.

Place, N, Y.

4

—

so

Published

For many years we

40 Exchange

Teletype NY 1-1825 & 1-4844
Observations—A. Wilfred May

would collapse without it" (Gen¬
eral Theory, p. 19). It is true that

p.

Request

upon

_

Direct Wires

right in

1<

Cover

_

assert.

Haberler is

4k

Alaska Oil & Mineral

body is foolish enough to deny it.
is itself, to repeat, essentially
a negative rather than
a positive
proposition. It is essentially a re¬
jection of a fallacy. It states that
a
general overproduction of all
commodities is not possible. And'
that is all, basically, that it does

the

Denver

to

22

Bookshelf

Einzig: "Are British Dollar Reserves

It

in

wires

Pacific Uranium*

Say's
ignoring

Say's Law whenever

HEnderson 4-8504

Thermo King

Man's

Coming Events in the Investment Field

There is still need and place to
assert

_

.____.

of

simply

'

Exchange PL, Jersey City

Direct

(Editorial)

Dealer-Broker

Keynes's
Law

See It

Bank and Insurance Stocks

64-65.

Book IV, Ch. 1, (Edwin Can¬
1904). p. 404 ft.

forth¬

Salt Lake City

We

elaborate solutions of complicated
nomics, ed. by Seymour E. Harris, (New
York, Alfred Knopf, 1947). p. 105.

the

demand

as

whole

power

of

Regular Features
As

supply

as

between the equilibrium doctrine

purchasing

ivill

not

and

the

pictorially,

Teletype: JCY 1160

far as he
denies the belief of Keynes (and
such
disciples as Sweezy)
that
Say's
Law
"still
underlies
the

trine.

and

I

that the proportions must be
right; that there must be equili¬

No General

For

ALASKA OIL

DIgby 4-4970

this qualification.

Modern Definition

GAS

25

_

the great qualifica¬

to

scarcity of money and by general
overproduction. Adam Smith, in
a famous passage in The Wealth
of
Nations3
exploded
the
first
of
these myths. Say devoted himself

A

editorially

coverage,

Year-Book issue of the "Chronicle"

But this doctrine

merchant had two explanations at
hand: the evil was caused by a

-refutation of the second.

15

coming Annual Convention of the National Security Traders

brium.4

as

URANIUM

NSTA Convention Number and Year-Book

tion

nomics

either

upon

own

preliminary — as
a refutation of a
fallacy that long
preceded the development of eco¬
branch-of knowledge. - Whenever
business
was
bad,
the average

LUCKY MC

14

Railroading—Wayne A. Johnston

Supply and demand

of

eco¬

13

_r.

wheat,

for other things.

a

Ensley...

for silks, for automobiles and for
other things that the shoe pro¬

tegral

classical

Crisis in

Full

Supply of shoes

be

to

W.

PINON

GUARDIAN CHEMICAL

shoes, cotton goods,
things that the wheat

that what is called Say's .Law was
not originally designed as an in¬

the

SABRE

4-6551

URANIUM

Marriages Forecast by Federal Reserve Bank of
Chicago.

silks,

other

producer wants.

gives

Dept.

STREET, NEW YORK '

are

merely equal, but they are identi¬
cal, since every commodity may

of

Schapiro

Population Spurt During 1960's Despite Drop in Births and

gives'tise to demand for automo

biles,

comes

COASTAL STATES
The

view
among
the other hand, has

the
great consuming countries.; The
twentieth century world consumes
vastly more than the eighteenth
century world because it produces
vastly rmore. ^ Supply of wheat

and

it

the exception!'

Obsolete Securities
WALL

99

_______

-.prevailing

important to realize, to be¬
gin with as Mises'-* has pointed out,

part

9

Freedom and the Challenge to American Management
\
—H. Rowan Gaither, Jr

If purchasing
production will

off,

great;^producing countries

they

even

when

We're

11

—Grover

long- been that purchasing power
grows,, out /'.of
production. >; The

tyran¬

nical dogma,

Cobleigh

off.

economists,

economics
a

falls

"The

bears

6

Current Economic Trends and Savings
Banking

pand, in their view.

achievement
eration of An¬

scared

obsoletes.

10

'-v.".'.:'

■

greatest

from

Sproul

that

4 h

to

Savings: The Secret of Americah Growth—Norman Strunk..
12

which will be published by the
D. Van Nostrand Company.—

re-

km

3

How Banks Are
Doing in 1958—Morris A.

third and final ex¬

a

Keynes'

was

Achievement"—Henry Hazlitt--...,

General American Oil Co. of Texas—Ira
U.

coming
dawn

THE BRAVE BULLS

.-Cover

Money and Banking and Our Economic Well
Being

cerpt from Mr. Hazlitt's forth¬

to

from

d

r

Nixon

Telephone: WHitehall

This is

fifty

years

M.

Highlights of Small Business Laws—Roger W. Babson

"Histo-

;

consumer

self-contradictory contentions.

Keynes's famous
"refutation" of Say's Law of Mar¬
kets. Some of his admirers regard

akd company

Prices—Anthony Gaubis__Cover

Our Heritage—Hon. Richard

Keynes's "Greatest

to

come

Page

i

Outlook for Business and Stock

purchasing
power must be maintained above production for full employ¬
ment. Charges British economist
opposed the valid classical:
principle only in a sense in which no important economist ever :
on

llCHTfllSTfl

B.S.

Articles and Newj

rate

foreign
must

be

account of the fluctuations lx
of
exchange,
remittances
foi

subscriptions
made

In

New

and

advertisement,

York

funds.

PHILADELPHIA

-

The Commercial
4

and Financial Chronicle

...

Thursday, September 11,1958

(1004)
As

realized.

extreme example,

an

price of its stock should
fall to $25, with the earnings stay¬
the

if

Observations

.

.

.

to

By A. WILFRED MAY

have cited

as

to "the straws"
manifesting the

present speculative wind—if a re¬
curring one—is the proclivity to
stock

choose

of

in-

dustries

on

issues

basis of

the

seasonal

their

The North

being attacked,

now

activity. Thus

income.

policy.

New Dividend Program

search depart -

'

Wealth

it

that

Company

Edison

adopt a policy of annually
declaring a stock dividend equiva¬
lent to all retained earnings, after
will

painstaking analy¬

Captioned "Seasonally Fa¬
Stocks," it lists "issues of

companies whose activities should
be buoyed by the approaching fall
and winter months — this is the
record

stock, which had previously "pronews" closed at 43%, opened up

periods."
Included among such
"timely" industries are retail
stores, school equipment compa¬
nies, toy and general gift special¬
ists, radio-TV, and airlines. Surely
such method of security selection,

*

Jj:

S2

5

is

fortnight,

that two significant de¬
velopments directly bearing on
the
question have occurred. A
proposed Treasury regulation,
supported by an advisory group
to the House Ways and Means

the formal

convention.

they

stock

cut

any

subject to

does

Presi d en t

the

of

if

will

it

common

new

unemployment compensation by some workers.
Department figures also indicated that new layoffs declined
during the week ended Aug. 30. Initial claims for unemployment
compensation fell by 20,800 from the previous week to 275,100,
the lowest since late October, 1957. Ohio, Michigan and Wisconsin

of

is

There

misconcep¬

related

a

reported fewer temporary layoffs as a result of
overs in the auto industry.
California reported an
-

tion, too, in the belief that small
dividends "wash through"

stock

market price
existing shares. Actual ex¬

have a
cash,

ditional

from

dilution

of

reflected

fully

in

ex-divi¬
date—to the disillusionment

dend
of

is

sale

first

the

small

the

after

the

In the steel

L. A. Huey

steel

pointed
dividends

stock

profit from their subsequent

sale; the Revenue Department rec¬

P.

associated

lowering

of

without

con¬

use

livery," the report added.

cold-rolled
November
delivery. Delivery promises there are expected to move out from
the current 2-to-4 weeks to 5-to-6 weeks within a few weeks.
In another producing area, a sheet mill already has booked
enough October orders to account for one-third of an expected
This

V

%

the

market

recession

should

also

weekly declared that in the Midwest
on the books for late October and

are

August shipments.

strike would slow
it would not halt
it declared, is that the im¬

pointed out that an automotive
thend toward a tighter steel market, "but

the upturn

<■»

arising

trade

orders

It further

the

of

completely."

The reason,

provement has come from a broad cross-section
automotive companies have tended to drag their
The

be

of industry while
feet.

the improved outlock for
better tone in appliances, and more buying of

magazine pointed to

spending, a
ment by the farmer.
Howard P. Carroll

Dealer-Broker

Addressing Service

L.

A.

Co., U.

Huey

tional Bank Building. Mr.

S. Na¬
Carroll

formerly President of H. Car¬

was

All

^ave
In

listed

position to

a

than

you

can

There are
States

metal stencil for every firm and

approximately 9,000

and

Cities.

thousand.

per

Special N. A. 8. D. list (main offices only) arranged
as
they appeared in "Security Dealers."
Coat
for addressing NASD List. $8.00 per thousand.
at

a

small

also

supply the list

additional

A.

ANGELES,

Calif.—Milton

Phillips has joined the staff of
&
Youngberg, 704 South

Stone

Addressing charge $7.00

can

(Special to The Financial Chronicle)

In the United

Just

We

With Stone & Youndberg
LOS

names

and 900 in Canada, all arranged alphabetically

States

by

B

this publication, which puts us in
offer you a more up-to-the-minuta list
obtain elsewhere.

on

Spring Street.
Mr. Phillips was
previously with Daniel D. Weston
&

Co.

gummed roll labels

Co., Inc.

Publishers of "Security Dealert of North

25 Park Place




—

REctor 2-9570

—

America"

New York City

SAN

James

FRANCISCO, Calif.—
W.

Pitts

is

now

affiliated

with Sutro & Co.,

460 Montgomery
Street, members of the New York

and

producers, it further

steady increase in
amount

certain

Total

(Special to The Financial Chronicle)

Herbert D. Seibext &

reported, are tentatively predict¬
shipments through October, but there is
The auto companies have
said they will be back into the market for heavy tonnages in
October and some of this tonnage has been booked.
Detroit still
seems hesitant about placing big orders far in advance.
But even if the automotive market takes hold and there is no
strike, steel shortages if any, will be temporary and regional. The
steel industry is still pretty far away from a really tight market.
There is plenty of capacity available and only the steel users who
let their inventories fall below reasonable levels will be pinched,
a

of finger-crossing.

concludes "The Iron

Joins Sutro & Co.

charge.

born

Sheet

a

publishers of "Security Dealers of North Asaer-

l

Pacific

changes.

Coast

equip¬

improvement in the steel market, stated "The Iron Age,"
several months ago in the Midwest and has since moved
eastward to include Pittsburgh ancl mills farther east.
ing

roll & Co.

bank

capital

The

was

with

the

that prevailed earlier this year.
again ordering in terms of quar¬
ters, instead of months or weeks," says one sales official. "We're
booking good tonnages for October, November, and December de¬

20% improvement over

this
directly

against a further

This is a switch from

"Some of our customers are

but

ensue

they can no
many cases they

policy of inventory cutbacks

sheet

possibility
of
difficulty
from a substantial stock

,

ognizing that they do not constitute
income. Presumably this principle

& Go.

Howard

industry, delivery promises are stretching out and
becoming edgy, "The Iron Age," national metal-

mill delivery promises.

stretch-out in

result

dividend device.

The

—

become

are

longer get by on hand-to-mouth inventories. In
have started to rebuild their stocks as a hedge

being

only

case

any

therefrom

on

thus

expenditures;

in

would

is

could

This

struction

Colo.

has

users

working weekly, stated in its release yesterday.
Steel users, it noted, are beginning to realize

(Special (,o The Financial Chronicle)

DENVER,

California.

Workers

investor.

H. P. Carroll Joins

as

future

a

ployment compensation reported a rise of 4,300 to 635.900 in the
ended Aug. 23. Most of the total was in Michigan, New

week

getting unemployment compensation for the week
ended Aug. 23 made up 5.2% of the labor force.
This was the
lowest since December and compared with 5.3% the week before
and 2.3% in the like 1957 period.

new

common

reduced.

''

unemploy¬

compensation benefits in August, the department said, to¬
taled 270,000 or a small reduction from the July total of 284,600.
States paying additional benefits provided by the Federal
Government to workers who have exhausted their regular unem¬

ment

York, Pennsylvania and

amination shows that the amount

we
have just
Carroll
policy won't con¬
serve any more cash than the old
policy, it is not clear how the
need for periodic offerings of ad¬

Since,

shown, the

ing in^pod processing plants.
The number of workers who have exhausted their

of the

be

his

in

doubt

some

model changeincrease in hir¬

without diluting the

which

discontinued,

or

indicate

mind.

argues

exemption

shares

new

plan does not
down the need for additional

sales

and

tax

that

modified

At present, as we have
are

359,948

Commonwealth's
stated

opposition of
Association

out previously, no stock

a

C. AUSTIN BARKER
following the stock dividend,
A 2% increase in 1he cash divi¬ Cleveland, Ohio,
dend (4 cents a share) would cost Sept. 5, 1953.
about the same amount, $718,608.

recip¬
choice
would
penalize the cash-receivers in ad¬
dition to diluting their equity.
where

between

was

year

that to exempt the dividend
ients

of

cash

maintain

to

Bar

The Treasury

(1957)

require $719,8.96' more cash
the $2 rate in the

would

issuing corporation also pays cor¬
responding
cash
dividends
on
other classes
of common
stock,
American

dividend

dividend

Committee, which would require
recipients of stock dividends to
pay taxes thereon at ordinary in¬
come tax rates, in cases where the

the

policy of increasing the
by 4 cents or
cents on the old shares, which
about average for utilities.
a

cash

dividends
at $2 total $35.9 million, paid on
17,997,418
shares. A 2%
stock

it happens

elicited

new

Present

columns on the stock

dividend during the past

the

at

adopted

V

Developments
our

MAY:

pleasure to read your
excellent article on the evaluation
of stock dividends, 1 was particu¬
It

of

Current Stock Dividend

Since

day

Next

all-time high
52%, quickly running up fur¬ larly interested in a point which
ther to 54 and closing the week you raised which has never been
at 52.
As pointed out in a previ¬ raised with respect to the New
York Stock Exchangevof reducing
ous column, such market response
the
indicated yield at the exis a common experience,
It should be realized that since dividend date by, the dilution i'aetor of th'e stock dividend-^-despite
there "will be an additional cash
the continuance of the old cash
dividend paid on each new share,
dividend on the new shares in the
the company
will not be con¬
overwhelming number of cases.
serving any more cash than if it

3%

trying to outguess the crowd oh
the supposition that the rest of
the community are fools who will
be misled into betting on factors
that are so obviously ephemeral,
constitutes the opposite pole from
true investment considerations.
:'

reaction..

MR.

DEAR

the

market

number of workers

published Aug. 23.

stock

enthusiastic

with

greeted

when many entities
their
most
active
sales

time of year

cut the
for the
sixth straight week, the United States Department of Labor re¬
ported.
"':'r
It pointed out that 2,178,000 workers were drawing unemploy¬
ment compensation in the week ended Aug. 23, a drop of 53,300
from the previous week bui 1,038,200 more than in the like week
a year ago.
Part of this reduction also came from the exhaustion
of employment in seasonal industries
drawing unemployment compensation

upswing

An

Review pi July-August was
cited in our column, "A Break¬
down of Stock Dividend "Myths."

ness

the

on

in the Harvard Busi¬

Dividends"

existing and
added
shares.
Characteristically,
the news of this "bonanza" was

dividend

continues to reflect the

week

reports coming to hand on business
production for the latest week

of

"Evaluation

analysis,

Barker's
Stock

Mr.

Company.

nating

annual cash

continuing its $2.00

vored

interesting question of
impact of the stock
we have received the

dividend,
following communication from C.
Austin Barker, senior economist
of the Cleveland Electric Illumi¬

is also underscored by

announcement

ally publishes
only the prod¬

*

:

■.**;;

dilution

the

ceptions about the stock dividend
last week's
by the Common-

leading Stock
Exchange firm
which habitu¬

ses.

Failures

steel

Scheduled

dividend

stock

the

.'

the

Oji

miscon¬

The need, for exposing

a

uct of its most

Production

improvement
and industry.
is scheduled
to reach the highest pace of the year at 65.4% of rated capacity.
In a review of the steel market, "The Iron Age" this week de¬
clared "that an automotive strike would slow the trend toward
a tighter stee! market" but added "it would not halt the upturn
completely." It observed that the improvement; has come from
a
broad cross-section of industry, while automotive companies
have tended to drag their feet. It further noted that there was im¬
provement in the outlook for capital spending, along with a better
tone in appliances and more buying of equipment by the farmer.
In retail trade, the total dollar voHjme last week was from
1% below to 3% higher than at the same time a year ago. Shop¬
pers continued in the latest week to step up apparel purchases
and home furnishings buying held at an even pace, with over-all
retail volume equal or slightly ahead of the similar week last
year,
'
>
this

Sentiment

shown in current

The Dilution Factor

from the re¬

of

Price Index

Business

J

.

brochure

ment

and Industry

American Company's

of

donment

ture, which justifies their classi¬
fication
outside
the
area
of

there comes to

hand the cur¬

rent

Food
Auto

at the stock's market

Trade

Commodity Price Index

the

To be added now
we

Retail

State of Trade

since
proposed change would be experience with the stock divi¬
limited to those cases (as Citizens' dend in the early 1930 s is in line
Utilities
Co.)
where the stock¬ with the current problem of mar¬
That utility holding
holder
is offered a cash-stock ket impact.
choice. But the support for the company of yesteryear paid 2%%
change in this special category quarterly in stock, which 10%
suggests the possibility of its ex¬ annual disbursement the market
at
double
the reported
tension to the taxation of all stock valued
dividends, particularly if the pub¬ earnings. This, together with the
lic is confused over their true na¬ ensuing dilution, led to the aban¬
not

is

Speculative Straw

Another

to

retained earnings
price.

the

up

use

have

Electric Output

Carloading.3

4% stock dividend

out a full

pay

Production

Steel

The

changes,

ing up and
no
other
Commonwealth
would

Stock

Ex¬

Age."

manufacturing

and

July, but the decline was less
second quarter of this year, the
merce

inventories fell further in
than the monthly average in the
United States Department of Com¬
trade

stated.

The

book value of

at the end of July was

total manufacturing and trade inventories
$85,900,000,000 a drop of $500,000,000 from
Continued

on

page

27

Volume

183

Number 5776

.

.

.

The Commercial and Financial Chronicle

(1005)

OF

NORTH

Capital Funds

oyer

AMERICA

$11,000,000

Resources $150,000,000

;

resulting from the

merger

of

Anglo-American Fur Merchants Corporation

COMMERCIAL STATE BANK

r. haroldbach
Executive Vice President

AND TRUST COMPANY OF NEW YORK
i

Directors

francis ariowitsch

nat bass
President, American Pressboard Company, Inc.

-''r,

BANK OF NORTH AMERICA

/■

•«'./

i; '• T : i

;

henry l. bonis'
President, Bonis Bros. Pur Machinery Corporation

joseph f.carlin0
Attorney

rubin eckstein
Vice President

alvin c.euricii
Director, Fund for the Advancement of
Education of the Ford Foundation

We welcome any opportunity to
as

borrower, for business

our

new

serve you—as

depositor,

personal needs. We hope that

or

name—Commercial Bank of North America-

jerry finkelstein
President, Tex McCrary, Inc.
sidney friedman.

Colej Grimes, Friedman &Deijz
Chairman, Executive Committee

aaron j. furman
Investments

john f. gehan

will

soon

President, American Export Lines, Inc.

be familiar

yourself that

we

to

you.

We'd like

neighborly enough

are

you to

learn for

know

to

abraham gevirtz
Real Estate

louis e.goldstein

you—

Vice Chairman of the Board

jack j. holland

big enough

to serve your every

President, Simon Holland & Son, In'.

need.

martin kane
Investments

eugene j. keogh
Halpin, Keogh & St. John

jacob leiciitman
President

COMMERCIAL BANK
OF

sethmarrus
Superior Mercantile and Manufacturing Com pan y

william l.pfeiffer
President, W. L. Pfeiffer Co., Inc. ' '

NORTH

AMERICA

william rosenblatt
Investments

member federal deposit insurance corporation

<

charles d. runyan
Senior Vice President

12 Convenient
MANHATTAN: 116 FIFTH AVENUE

BROOKLYN:

QUEENS:

•

1400 BROADWAY

1574 PITKIN AVENUE

•

Offices to Serve You:
•

528 BROADWAY

815 BROADWAY

•

781

99-01 QUEENS BOULEVARD, FOREST HILLS

•

EASTERN

•

115 BROADWAY
PARKWAY

•

rudolf g. sonneborn
President, L. Sonneborn Sons, Inc,

•

318 GRAND STREET

465 KINGS HIGHWAY

d.mallory stephens
Chairman of the Board

jerome i.udell
Chairman of the Board
Max Udell Sons & Co., Inc.

14-15 122ND STREET. COLLEGE POINT

louis weinstein
BRONX: 352 EAST 149th STREET

Senior Vice President

a. herbert planteroth
Secretary to the Board

Honorary Directors:

earl t. moore

charles evans

channing h. tobias

President, The Central Railroad

ralpii wein

President, Adjusta Company

Chairman of the Board, National Association
for the Advancement of Colored People

livingston, livingston

Retired

& harris

of New Jersey
t'




General Counsel

The Commercial and Financial Chronicle

...

Thursday, September

11,1958

(1006)

6

Money and Banking and
Our Economic Well Being
By ALLAN

Bank of New York

well-

they
and internalized restraint it
fatal. In commenting about
the contributions money and banking make to our economic
well being, Mr. Sproul: (1) likens our banking system to an
archimedean structure which relies on leverage to do its work;
(2) refers to cruciality of commercial banks in translating
Federal Reserve policy into action; and (3) counsels against
periodic attempts to bathe the country in a sea of "Easy
Money" and to subordinate the Federal ^Reserve to narrow
were

a

principal

and medium of ex¬

change, money had utility as

be

could

usefulness. It
to make
fish

as

p

1

not

its

purpose

vanced

nomic state

culture

in

ance

(I

rocket

we

as

tion

I

longer
my

sure

no

of

■■■<„'■

That

.

Allan Sproul

labels).

relative credit
the sense of
making fish hooks from nails, but
Ihey are mighty useful. They help
to make possible a multiple divi¬
not now used, in

of

sion

labor

and

a

broad

induced

been

question about it,

no

undue pressure

by

a

national

Whether

communities.

The money

factor is only one of

lower the amount

of

unduly in times of eco¬

restricted
nomic

time

pessimism,
Is

it

granted

haphazard contriv¬
less satisfactory as

is where the

money

ex¬

and credit. When reserve
mean
the destruction of the pri¬
increased by the Fed¬
vate hanking system on which we
by one-million'or,
now
depend
to
allocate
credit
billion
or
whatever number' of

money

man¬

in, and they have been
piayingj their unhappy role ever
since. They are the monitors of
money (and
credit and, as one
writer has phrased it, "The regu¬
lation of (any) economic activity
is without doubt the most inele¬

agers came

Money and its close
are

became

its

services.

of

of
gold
should always
equal the monetary needs of the
world, and it didn't.

pos¬

am

or

available to the commer¬
banks of the" country in a

supply

destruc¬

sible

raise

reserves

and
manufacturing
processes accelerated, and trad¬
ing relations between people and
nations i multiplied
and becafne
more
complex.
There was no
ordained
reason
why the new

vilization, but
toward

be

can

granting of

cost items as automobiles and ap¬
and if at any pliances, the effectiveness of spe¬
by favor and cial government programs to stim¬
cial
faction instead of by reason of ulate the Housing Industry, and
variety of ways, and in accordance
credit
worthiness
and
likely all that goes with it; the trend of
with its own determination of the
profitability of use, national credit world trade as it affects our ex¬
seasonal, cyclical and long term

can

agricultural

ci¬

or

the

into

trade and

exchange

This somewhat

said

almost

expanding

growing

e c o- j

-

the

principal
trading
nations,
maintained a
growth needs of the economy for policy will be distorted and dis¬ ports and imports and those;of
rough sort of balance with the
credited.
Ultimately that would other countries,- the actions (of

ad¬

more

one

there

commercial credit policy works well or ill, the forces which influence the
fairly or unfairly,
depends in course of the economy, however.
banks, and of the whole banking
great measure in how each indi¬ The timing and vigor and persist¬
system, from day to day and seavidual commercial bank does its ence of an upturn will be deter-j
sort
to season,
but the positive;
revival of J
control of these reserves is in the job* If credit is granted loosely in mined, mainly; by a
hands of the reserve system.
It times of economic optimism; i or consumer appetite for such high

much of the
period.
The

moved

which

mines,.

world's

of

is

utility

long

a

The

laid.

individual

of

serves

monetary reserves of the

But

e.

sort

this

for

world

was

.

well yearly accretion of gold from the
used

hooks, for ex¬
am

the balance wheel in

therefore, even more dependent
their qualities and character to

things can alter the re¬

Many

political authority.
nails

in

recovery

supply was increased sub¬
stantially.
Liquidation of inven¬
tories, of stocks of goods which
had become excessive in relation
to reduced sales, has gone forward
at a rapid rate, but without the
money

charter to open to repay bank loans. Interest rates
in
the money market have de- mitted
or
prudent volume of a and operate a bank is not the
of a license solely to clined dramatically. The cost of'
bank's deposits and, therefore, of granting
For the capital funds, including mortgage
its loans and investments.
It is pursue private profit.
more
slowly
chiefly by working this lever thai recipients it is also the accept¬ money, responded
a
public responsibility. and irregularly than money mar¬
the Federal Reserve administers ance of
ket rates, but existing costs be¬
national credit policy. It is chiefly The Federal Reserve sets national
policy*
The
commercial came slightly more attractive to
in the response of the commercial credit
banks to changes in their reserve banks translate that policy into borrowers, both public and pri¬
position that national credit policy the language of the day-to-day vate, than during the boom pe¬
' \_V\dealings of the people of their riod.
becomes effective.

ignore the rules of self discipline
would be dangerous and might be

When

nomic

the communities
They are less
than is the Fedefal
its glass house and,
of

serve.

struc¬
to do discharge the public responsibil¬
provided ities which are theirs. Because panicky haste wihch might have

by the fractional reserve require¬
ments which determine the per¬

Francisco, Calif.

endangered the long-term growth of our economy. The
known banker warns "power groups," however, that if

store of value

The leverage is

they
conspicuous

on

is an archimedean
It relies on leverage

ture.

support

which

Reserve

the whole banking

sense,

system

doubts present recession has

York Central banker

Former New

a

its work.

American Trust Co., San

Director,

;

Archimedean Structure

An

In

SPROUL*

President, Federal Reserve

Former
Now

situation.

present economic

the

and

fundamental source, to

this

from

funds

management

are

ciphers .you want to use, the. com¬ fairly and effectively among those
who seek it.
)
mercial banks as a whole are able'
And now we might take a quick
to increase their loans and invest¬
look
at
the
national
economic
ments by $ay five or six.
When
weather/> Since sometime in 1957
reserve funds are reduced by one/
>

commercials
whole, is also, multi¬
the

we

have

been

labor

and

with re¬

wages and prices, - the
eventual resumption of expansion

to

spect

Reserve

eral

in

capital

private

and, of course, by the
of

reaping the conse-

peace or war.

expenditures
fateful issue
■ - v'

Following the Summer Lull

recession of 1957.of some abuse of gredit, 53, we have seen the largest de¬
over-optimism
in
capital clines in production and employ¬
plied by five or six, and they have
to liquidate investments and ex¬
goodsxexpenditures, some discrep¬ ment since the end of World War
ancies between labor productivity
ercise greater restraint in'makin'g
II.
We have also seen how effec¬
and labor compensation, some dis¬
loans.
tive are the "built-in-stabilizers"
turbing international political and
of the economy, such as unem¬
These are great powers, these
economic developments, some lisployment compensation and social
leverage
magnified
powers
of
cai mistakes, and the reaction of
banks and bankers.
They should
security benefits, in maintaining
consumers
to all of these influ¬
consumer purchasing power in the
be exercised by men who recog¬
ences and forces.
That is a long
face ot relatively large scale un¬
nize a public responsibility and
way of saying that
since someemployment and substantial de¬
discharge it, without submitting to
Time in 1957 we have been having
clines in / ordinary
income.
We
political pressure or catering to an economic recession.
have seen the advantage of a Fed¬
private bias.
;
I say sometime in 1957, because
eral budget which automatically
The Federal Reserve derives its
one of
the interesting aspects of
goes* in to deficit during a reces¬
powers directly from the Congress; such phenomena is that, even after
sion, when government income,
of the United States. It derives its
the event, when all of the facts
based largely on aggregate profits,
ability to pursue an independent and figures are in and have been
salaries and wages, declines and
course,' directed only by the broad processed by human and median-"
government,
expenses
increase.
economic desires and needs of the ical
brains, no one can be abso¬ We have seen some of the sup¬
people, from its position within lutely sure of just when a boom,
porting effect of increased capital
but not subordinate to the execu¬ ends'and a recession
begins! There
by Federal," State
tive government of the day, and is no one to blow a whistle or expenditures
and
Local
Governments,' when
from the professional character of •
effect

the

banks,

as

a

or*

•

So far in this

q[uences
some,

,

change
.values.

present
and
future
The shoemaker can ex¬
of

change his shoes for sugar and

the

and

gant

unrewarding of public

endeavors."

The money managers

have to try to exert a

restraining,

painter his art for pineapples,
through
the
swift
medium
of
money.
And the saver can help
in the building of a mill or. the

influence on economic enthusiasm

clearing and cultivation of a field,

lowed

putting off until tomorrow,
through the use of money, the
consumption he might have in¬
dulged in today.
.;

sion,

by

when
eager

nearly

everyone

is

else

foii another whiff of credit.
a boom are fol¬

If the excesses of

by the miseries of a reces¬
the

blamed for

money

managers

bringing

on

are

bad times

and, when "easy money" does not
quickly banish lowered produc¬
tion and rising unemployment, the

.

.

strike

(lie men
who administer its af¬
fairly simple proc¬
fairs.
There have been times in
esses.
They should not need many money managers are attacked as
the past*, and particularly in the
trappings nor much explanation, impotent at best and meddlesome
immediate
postwar years, when"
muddlers at worst.
except that money does not man¬
the Executive Branch of the Gov¬
In
odr country
this dnhappy
age
itself.
When, nails
served
ernment, through the Secretary
some
of the purposes of money part is played by the Federal Re¬
of
the
Treasury
and,
finally,
here, it only needed a shrewd serve System, which came into
through the President, tried to
trader to bring in a few hundred being only 45 years ago. The sys¬
dictate the actions of the Federal.
kegs of nails, more or less, to de¬ tem do£s its job, mainly, through
Reserve
System.
But the Con¬
preciate the trading value of all the widely dispersed commercial
gress, and the public with a lively
the nails hereabouts.
The supply banks of the country. The com¬
sense
of its own interest in this
of money and, in
are
the channel
our day, the mercial! banks
matter of money and credit, sup¬
supply of credit must be kept in through which central bank action
ported the Federal Reserve Sys¬
balance with the supply of goods reaches agriculture, commerce and
tem in resisting this invasion by
and
services
if
our
economic industry, and the ubiquitous man
narrow
political authority. Since
growth is to be steady and if our in the street. I am not going to
that test was met, there has been
try to describe the Federal Re¬
money is to maintain some stabil¬
no
overt attempt and not much
serve and all of its works.
I am
ity of purchasing power over time.
disposition to interfere with the
going to try to trim down the
Gold, as the basic money, was whole banking system — reserve professional use of its powers by
the
Federal Reserve System.
I
banks and commercial banks—to
'From
a
talk by Mr. Sproul at the
have no doubt, however, that such
100th Anniversary Celebration of Bishop
a
fundamental, and then to relate attempts will again be made. This
National Bank of
These

are

,

Hawaii, Honolulu, Ha¬

the

waii, Aug. 16, 1958.

use

of banking powep,

derived

is

battle which is never finally

a

The urge to bathe

won.

try

in

sea

a

the coun¬

of "'Easy Money" is

which periodically attacks
politicians and governments. Eter¬
nal vigilance is the price of a cur¬
rency unit which does not dete¬
riorate in purchasing power from
decade to decade, destroying the
value
of
savings
and
pension
ope

LOOKING FOR THE UNUSUAL

.

Beautifully Bound Set of
t

'

Commercial & Financial Chronicles, 1920-1945

it goes, bearing down on
those of weak economic bargain¬

rights

FOR SALE

'

as

ing power, and changing business
into

speculative

a

race

\

costs.

with rising

•

Commercial Banks

Available in New York City—Write or

our

Phone REctor 2-9570




Edwin L. Beck

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

who manage
banks, they de¬
powers, under
archifrom the national, state

Turning
rive

to

those

commercial
their

medes,

and territorial banking laws, from
their

funds,

own

and

provision

from

the

of

capital

confidence

a

gong.

,;

•

.

i/Current. Recessionary Period
Federal

The

; ■<

.people

Reserve

apparently decided that, so- far as
they .were, concerned, the > boom
ended in the closing months of
At

1957.

least

we

can

bracket

a

period between August 1957, when
the

discount

rate

of

the

reserve

3%, to
3l,2%, and November, 1957, when
this action was reversed, as the

banks

increased

was

period in which the
tem
changed
from

from

reserve

sys¬

private capital expenditures falter
temporarily. Finally, in May and
June, we saw the downward trend
of
the economy checked, and a
number of

signs.of anupturn. But
yet know with cer¬

not

do

we

whether this was a false
the real thing; whether
summer lull will be followed

tainty,
start
the

or

a
more vigorous recovery
whether we shall "bump along"

by

or
at

considerably less than maximum
levels of production and employ¬
ment for some time ahead.

policy of
Nor do we know what will be
pressure
on
bank reserves to a'
the collateral effects of the recent
policy of "cushioning the down¬
turn" in business by easing the flare up in the Middle East and of
reserve
position of the commer¬ our reaction to it. It has not been
an
important direct factor in the
cial banks.
•
business
situation^
but
it does
Since
November,1957,
as
it
seem to have put the spotlight on
gradually became clear that not
the-debt
management problems
only had the economy entered a
of the Federal Government and,
period • of reduced activity, but
that the decline would probably by a sort of chain reaction, it has
revived in many quarters a belief
be'greater than in the mild post¬
in the inevitability of further in¬
war
recessions of 1948-49 and flation. This has been reflected
1953-54, the reserve system has
in the stock market and in the
given the commercial banks of the
bond market, and it looks as if it
country a massive injection of re¬
has had an effect on government
serve funds and, as a visible sign
thinking
and,
perhaps, on the
and symbol of its change in policy,
thinking of the monetary authori¬
a

t

the

discount

rate

of

the

reserve

banks has been reduced from 3%
to

1%%.

ties.

Open market operations

and reductions in reserve

The

recent

increase

in

stock

require¬

margin requirements by the Fed-,
provided the commercial eral Reserve may suggest not only
banks with billions of dollars of a desire to check the use of credit
additional
reserves
and
these in stock market speculation, but
some
veering
of
official
banks, in turn, were able,largely also
to eliminate their borrowing from thinking toward restrictive action...

ments

the

banks, to restore their

reserve

liquidity, and again to seek loans

And
from

this

and investments instead of screen¬

President

ing borrowers and closely ration¬

business

ing credit.

labor

,

The

-

monetary

basis

for

eco¬

It

is

guess

the recent

acquires

support

statement of the

restraint
by
and by
seeking wage increases.
unlikely that talk will acin

urging

in setting prices

Volume 188

complish

Number 5776

much

in

the

chastening excessive
it exists

in

these

.

.

The Commercial and Financial Chronicle

.

of

way

the

and

areas,

of monetary action may be
limited, or its exercise compli-;

scope

cated,

by the debt management;
problems of
the
Treasury, but
these straws in the wind could be

significant.

'

4

encouraging, however, that during
the 1957-58 recession the old spiral
of declining production, declining
income, declining confidence, did
widen

its

increase ,its

the

of

the

beyond

and

Emmett V.

nesday, Oct. 8 at 7
The

held

Council's

on

the

Midwest'

p.m.

meeting,

trading floor

Stock

Wed¬

Council, will present the invest¬

519

clubber's

question.
with the

Mr.

approach

this

to

Chicago

area

of

more

to

be

of the

Exchange,

will

examine the problem of portfolio

Chicago Coun¬

cil, making it the second largest
regional

group

in

the

now

&

Schirmer, Atherton,

(Special to The Financial Chroniclb)

BOSTON,

Mass.

Mackey, Jr. is

con¬

now

Atherton

Talbot,

Street.

members

&

—

degenerate into depressions
hot appeared. That should

the

New

National

Association of Investment Clubs.

SAN

Henry

its full course,

run

C.

Mullowney

has

been

added to the staff of Dean Witter
&

Co.,

45

members

Montgomery

of

the

New

Street,

York

and

Pacific Stock Exchanges.

ST.

PAUL,

McFarland,

Minn. —Donald

Jr.

has

staff of Kalman &
cott

to

have
mean

dangered by what has happened,
v In
other words, the crystal ball
is little cloudy, as usual, with re¬
spect to what is going to happen

in

the

next

six

to

months,

but

to what is

as

.o-ryLij: Hi:;:
:

t;

Hi

il l I

rea¬

going

happen in, say, the next six
always barring destructive
developments. Just

years,

international
as

in the

of

case

boom, there is

the

ending of a
specific signal

no

which

tells you when a recession
ends and recovery begins. Despite

the identification of some early
moving economic series, we can¬
not regularly and accurately fore¬
cast the precise timing of an up¬
turn

the

and

ments

In

NEW ISSUE

.

vigor of its move¬
circumstances the

such

,000,000

monetary authorities, and the eco¬
nomic
advisers,
and
all
\vho
would try to see what is over the

hill,

need whatever information
they can get, analyzed as tho¬
roughly as our economic and sta¬
tistical

knowledge

will ' permit.
lot of horse

And then they need

7-

a

sense, defined as the sense horses
have not to bet on human beings.

Because what

going to happen
depend mostly on the

will

now

43A%

is

actions

of

ings

Sinking Fund Debentures due August 1,1983

producers and consumers,

as

as

millions

owners,

of

human

managers

and

be¬

labor

leaders,

as spenders
and savers,
borrowers and lenders, politicians
and private citizens.
And we hu¬

beings
sponsive to

man

not yet fully
demands of

are

the

Price 100%

re¬

(and accrued interest from September 1, 1958J

our

complex economy.

As a recent Rockefeller report
phrased it: ''The functioning of a
modern city or factory (or planta¬
tion) is a miracle of voluntary co¬

'/

operation that

can only be accom¬
plished by people who have de¬
veloped deeply ingrained habits of
playing the rules, of self discipline

and

of

there

internalized
are

power

restraint."

a copy

of

the

any

offering is made only by

which

is neither

which ignore the rules,
self
discipline, and
which fail to practice restraint in
order to gain narrow and
fleeting
lack

advantage,
that

shall fall

we

excellence
must

contest

be

of

marks

of

worlds

our

of the Prospectus and this announcement
solicitation of any offer to

buy securities.

be

Goldman, Sachs & Co.
The First Boston

Halsey, Stuart & Co. Inc.

Lehman Brothers

\

Corporation

Kuhn, Loeb & Co.

Special to The Financial Chronicle)

OAKLAND,
Harbert

and

Calif.—Stephen
Furrnan

Hargis
Mason

Brothers, Central Building,
of

the

Pacific

A. G. Becker & Co.

L.

C.

with

connected

now

bers

nor a

of

Two With Mason Bros.

are

means

offer to sell

which

time, this would
dangerous and might be fatal.

(

an

such State.

performance
goal. In the

our

two

short

Prospectus describing these securities and the

The

economy

which

a

Underwriter who may regularly distribute it within

If

in

groups

Upon request,

business of the Company may be obtained within any State from

Coast

Blyth & Co., Inc.

Eastman

Dillon, Union Securities & Co.

Incorporated

Harriman

mem¬

Ripley & Co.

Kidder, Peabody & Co.

Lazard Freres & Co.

Incorporated

Stock

Exchange.

Smith, Barney & Co.

Now With Eastman Dillon

American Securities

s

(Special to The Financial Chronicle)

Stone & Webster Securities Corporation

Corporation

'

A. C. Allyn and Company

"

Bear, Stearns & Co.

*

'

SAN
Currie

is

Eastman

&

Incorporated

DIEGO, Calif.—Gilbert S.
affiliated

now

Clark, Dodge & Co.

with

He

was

Hornblower & Weeks

formerly with Dean Witter & Co.

Barth Adds to Staff
FRANCISCO,

L. Seewer has

been

Calif.—Ray

added

to

Co., 1404, Mont¬
members of the

New York and Pacific Coast Stock

Exchanges.




Reynolds & Co.

the

staff of J. Barth &

Street,

W. E. Hutton & Co.

Carl M. Loeb, Rhoades & Co.

(Special to The Financial Chronicle)

gomery

Drexel & Co.

Dillon, Union Securities

Co., 415 Laurel Street.

SAN

Dominick & Dominick

'

*

■

;

Salomon Bros. & Hutzler

•

Wood, Gundy & Co., Inc.
William Blair & Company

»

Hallgarten & Co.

Ladenburg, Thalmann & Co.

F. S. Moseley & Co.

Glore, Forgan & Co.

Merrill Lynch, Pierce, Fenner & Smith

White, Weld & Co.

Hemphill, Noyes & Co.
Lee Higginson Corporation

Paine, Webber, Jackson & Curtis
Wertheim & Co.

Dean Witter & Co.

1

September 10, 1958.

•

E.

joined *the

Co., Inc., Endi-

Building.

growth of the economy is not en¬

sonably clear

and
was

(Special to The Financial Chronicle)

the long-term

<

He

With Kalman & Co.

FRANCISCO, Calif.—

may
which to

in

months

some

York

formerly with Laidlaw & Co.;

that, although this recession
need

F„

Co., 50 Congress St.,

of

Boston Stock Exchanges.

toler¬

recessions

cause

Philip

with Schirmer,

•

investment clubs

members of the

is

•

7

(Special to The Financial Chronicle)

than

t

are

Louden

With Dean Witter

professional approach.

Representatives

L.

with Hannaford

California

wil'l follow

Norby

;

FRANCISCO, Calif.—

nected

500

;

,

SAN

Howard

ment

Joins

(Special to The Financial Chronicle)

Kinnon and advisor to the Chicago

Associa¬
on

With Hannaford Talbot

.

Collister, registered

representative of Thomson & Mc-

Chicago

National

or

The cumulative pres¬

which

sures

circumference

speed

able limits.

meeting
of

tion of Investment Clubs

•«It has been and continues to be

not

clinic

Council

to Longer Term

Growth

<

whether to hold

sell.

CHICAGO,
111. — William
C.
Norby, Vice-President, Securities
Department, Harris Trust & Sav¬
ings Bank, Chicago, will address
a

No Danger
*

management

Norby to Address
Chicago Inv. Clubs

where

power,

(1007)

The Commercial and

B

Financial Chronicle

...

Thursday, September 11,1958

(1008)

Returns—Table—Scharff & Jones,
Orleans 12, La.
This Is Blaw Knox—Booklet describing products and services
for industry—Blaw-Knox Company, 1211 Blaw-Knox Build¬

Taxable

Tax

vs.

Exempt

Inc., 219 Carondelet Street, New

Dealer-Broker Investment

ing, Pittsburgh 22, Pa.
'V' V;,'v

Recommendations & Literature
it

Southern Railway, and

possible role of lithium in a
thermo-nuclear fusion device, etc.—Atomic Development
Mutual Fund Inc.,
1033 30th Street, N. W., Washington

Atomic Letter No. 41—Report on

orandum

—

Monthly investment letter

—

Business Conditions in Southern

California—Bulletin—Security
Term-

of 1958—Analysis-—Gairdner

Canada Conversion Loan

Borax

—$15.50.
Economic Outlook for Japan

—

an

a

and

Moyer & Co., 123 South Broad Street,

of New York, 55 Wall Street, New

York

15, N. Y.
Fire and Casualty

Stocks—Analysis of outlook—John C. Legg

22 Light Street, Baltimore 3, Md. Also avail¬
able is an analysis of Travelers Insurance Company.
For Income and Profit—Bulletin on a sheltered growth stockJohn C. Kahn Co., 1108 Sixteenth Street, N. W., Washington
& Company,

6, D. C.

months—Harkisondass Lukhmidass, 5 Hamam Street, Bombay, India.
International Investment—Analysis—'W. E. Hutton & Co., 14

Indian Stock

Market—Review of first sixth

Wall Street, New

York 5, N. Y.

offered by Chile—
Area Development Section, American & Foreign Power Co.,
100 Church Street, New York 7, N. Y.
Japanese Stocks — Current information — Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,

Investing in Chile—Booklet on advantages

New York.

com¬
the listed industrial stocks used in the Dow-

Over-the-Counier Index—Folder showing an up-to-date
parison between

■

York 5; N; Y.

New

York 5,

Also available is a

N. Y.

Street,
memorandum on

& Co., 72 Wall

Clinton Engines Corp.
Rules of the Securities and Exchange
New York Stock Exchange on

Commission and of the

bulletin

an

article

on

$1.50 per year. Also in the same issue is
Supermarkets Abroad, Equity Capital Via

Fall

Co. Incorporated,

Inc.—Study—Manly-Markell Asso¬

Michigan Street, Milwaukee 2, Wis. Also available are re¬
ports on Fisher Governor Company, and American Hospital
Supply and a review of Appliance Makers with particular
reference to Whirlpool Corporation and Ilobart Manufactur¬

way,

New York 5, N. Y.
Gasoline

Natural

Car

Union Tank

Analysis

—

Meeds, 120 Broad¬

—

Memorandum-—Goodbody &

—

Also available is a

J. R. Williston & Beane, 115

Broadway, New York 6, N. Y.
Western Union Telegraph Company—Analysis—Harris, Upham

Broadway, New York 5, N. Y.
Westinghouse Electric — Report — Thomson & McKinnon, 11
Wall Street, New York 5, N. Y.
& Co., 120

For

financial institutions

Now available—

.

■;

■

;

-

•=,

With First Sees. Co.
CSpecial to The Financial Chronicle)

PHILADELPHIA, Pa.—Eastman
Union Securities & Co.,

on:

— William
joined the staff of
Securities
Company,
803

MANITOWOC, Wis.

Dillon,

members

SCUDDER FUND OF

CANADA LTD,

in

1954.

Increased

44%

by

1958.

Stock

of the New York

'

Friday.

(Boston, Mass.)
Association of Stock Exchanga
Firms
Board
of
Governor®

Oct. 6-7, 1958

,

at Somerset

meeting

Hotel.

(New York City)

Oct. 9, 1958

Silver
Hotel

Anniversary Dinner at the

(New York City)
Security Traders Association of
cocktail party
and dinner dance at the Hotel

Oct. 25, 1958

New York annual

Pierre.

Nov. 7-8, 1958

National

(Chicago, 111.)

Association of Invest¬

ment Clubs 8th annual conven¬

E. Scholten has

30-Dec.

Nov.

and

5,

1958

(Miami

Beach, Fla.)

Association
convention
the Americana Hotel.

Investment Bankers

America

of
at

other leading ex¬ First
the appoint¬ York Street.
ment of Joseph G. Flanigan as
Retail
Sales
in
their
Manager
Continental Sees. Adds
Philadelphia office, Philadelphia
(Special to The Financial Chronicle)
National Bank Building.
MILWAUKEE, Wis. —Henry E.
Witte has become associated with
Joins Wayne Hummer
Continental
Securities
Corpora¬

Exchange
changes,

Designed for the sophisticated investor

Association
annual outing at Oakwood Golf
& Country Club; cocktails and
lunch at Eddys Thursday and
dinner that evening; golf, etc;,
Bankers

■

•

Phila. Retail Sales Mgr.
Brochure

Mo.)

Group of the In¬

Southwestern

tion at the Hotel Sherman.

'

v

Broadmoor.

the

Oct. 2-3, 1958 (Kansas City,

Astor.

-

Corp.

Co., 115 Broadway, New York 6, N. Y.
memorandum on White Eagle Oil.

Rights, Trend Registers, etc.

try Club.

Commodity Exchange

;?

Stanley Works—Analysis—Laird, Bissell &
Texas

Allegheny

the

at

Sept. 29-Oct. 3, 1958 (Colorado
Springs, Colo.)
National Security Traders Asso¬
ciation Annual Convention at

vestment

ciates, 11 West 42nd Street, New York 36, N. Y.
Steel—Analysis—The Milwaukee Company, 207 East

,

Outing

Sept. 26, 1958 (Rockford, III.)
Rockford Securities Dealers As¬
sociation annual "Fling - Ding"
at the Mauh-Nah-Tee-See Coun¬

Standard

ing Co.

•

y

Country Club, Sewickley, Pa.

Report — Dean Witter & Co., 45 Mont¬
Francisco 6, Calif. Also available are a
Stocks, and repprts on Varian Associates

(Delaware)

Sports Arenas

New York 5, N. Y. Also available is a review
of Oil Stocks, Electronics and Municipal Bonds.

N. Y.—20c per copy;

Club.

Sept. 26, 1958 (Pittsburgh, Pa.)
Bond Club of Pittsburgh annual

Inc., 72 Wall Street, New York 5, N, Y.
Scudder Fund of Canada Ltd.—Study—Troster, Singer & Co.,
74 Trinity Place, New York 6, N. Y.

Wall Street,

Stop Order—Discussion in current issue of "The Exchange
Magazine"—Exchange Magazine, 11 Wall Street, New York 5,

Straus, Blosser &

outing at the Cleveland Country

Corporation—Report—Frederick H. Hatch & Co.,

Sabre Piiion

at

day

Sept. 26, 1958 (Cleveland, Ohio)
Bond
Club of Cleveland fall

and -Statham Instruments, Inc.

Solicitation of Proxies State¬

ments, Participants in Contests, Consents and Authorizations,
and Reorganizations—1958 Edition — Georgeson & Co., 52
Wall Street, New York 5, N. Y.
Seven Food Stocks for Growth — Bulletin — Bache & Co., 36

Cement

on

an¬

Huntington
Valley Country Club.

—

gomery Street, San

of Philadelphia

Club
field

nual

Food Mart, Inc.

Stocks—Comparative figures—G. A.
Saxton & Co., Inc., 52 Wall Street, New York 5, N. Y.
Put & Call Options — Booklet on how to use them — Filer,
Schmidt & Co., 120 Broadway, New

Bond

Broadway, New York 38, N. Y. Also in the same letter
are brief analyses of Two Guys from Harrison, Inc., Sunray
Mid Continent Oil Company, Pan American Sulphur Co., and

Common

(Philadelphia, Pa.)

Sept. 19, 1958

150

Permanente Cement

Railroad Recovery—Review—H. Hentz

Country Club, Colonia, N. J.

N. Y.

"ABC" Investment Letter—Amott, Baker &

outing at Colonia

and

nament

Rhoades & Co., 42 Wall Street, New York 5, N. Y.
Raytheon Manufacturing Company — Analysis — In current

yield and market performance over a 19-year period —
46 Front Street, New York
Utility

sociation 12th annual golf tour¬

McDowell, 39 South La Salle Street, Chicago 3, 111.
Uranium—Report—Singer, Bean & Mackie, Inc., 40
Exchange Place, New York 5, N. Y. Also available is a
report on Seismograph.
Penn Dixie Cement Corporation — Analysis — Carl M. Loeb,

National Quotation Bureau, Inc.,
Public

Corporate Transfer Agents As¬

Philadelphia 9, Pa.

Pacific

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

4, N. Y.

Maketewah Country Club.

Sept. 18, 1958 (New York City)

—

pany, 488 Madison Avenue, New York 22,
Montrose Chemical Company — Analysis —

Jones Averages and
used

Municipal Bond Dealers Group
annual outing — cocktail and
dinner party Thursday at Queen
City Club; field day Friday at

Bulletin — John II. Lewis & Co., 63
Wall Street, New York 5, N. Y.
Foremost Dairies, Inc.—Analysis—Reynolds & Co., 120 Broad¬
way, New York 5, N. Y. Also available is a report on New¬
port News Shipbuilding & Drydock Company.
General Gas Corporation — Analysis — Bear, Stearns & Co., 1
Wall Street, New York 5, N. Y.
Kerr-McGee Oil Industries—Analysis—Ira Haupt & Co., Ill
Broadway, New York 6, N. Y.
Koehring Company—Bulletin—De Witt Ccnklin Organization,
120 Broadway, New York 5, N. Y.
Minneapolis Moline Company—Study—Cady, Roberts & Com¬

Eastern Air Lines, Inc.

Tax Laws, including Technical Amendments
small business Tax Revision Act—Booklet—First

National City Bank

Co.—Analysis—Newburger, Loeb & Co., 15
4, N. Y.
Gardner Corp. — Memorandum — Woodcock, Hess,

Diamond

Metals.

Federal Income
Act

Ohio)

Continental Baking

Broad Street, New York

(Cincinnati,

Sept. 18-19, 1958

Stores, Inc.

Safeway

Analysis in current issue of

Securities Co., Ltd.,
Broadway, New York 6, N. Y. Also in the same issue is
analysis of Japanese Food Industries and Chemical Fibers

and Non Ferrous

by dinner Sept. 11 - at the Uni¬
versity Club.

120 Broadway, New

Nomura's "Investors Beacon"—Nomura
61

Holdings

Whyte's

at

Municipal Bond Club of Chi¬
cago annual field day at Elmhurst
Country Club; preceded

—

Ltd.—Memorandum—Model, Roland & Stone,
York 5, N. Y>
Chesebrough Pond's Inc.—Data—Alfred L. Vanden Broeck &
Co., 55 Liberty Street, New York 5, N. Y. Also in the same
circular are data on Panhandle Eastern Pipeline Co. and

& Com¬

Limited, 320 Bay Street, Toronto, Ont., Canada.
Canadian Asbestos Industry—E. J. Bonkoff—General Research
Associates, 4 Richmond Street, East, Toronto, Canada—Paper
pany

officers

of

Sept. 12, 1958 (Chicago, 111.)

Y.

Street, New York 4, N. Y.

Broad

annual

announce

7y<

•

RETUR

(Special to Th£ Financial Chronicle)

APPLETON, Wis.
Vincent

Troster, Singer & Co.

with

has

—

become

Clifford E.
connected

Wayne Hummer &

South Appleton

Trinity Place, New York 6, N. Y.

HAnover 2-2400




•

Teletype NY 1-376-377-378

with

formerly
Jackson

&

Paine,

He was

Webber,

Curtis.

•

Street.

With Pitser Staff

(Special to The Financial Chronicle)
1

•

(Special to The Financial Chronicle)

RALEIGH, N. C.
Coble

has

FOR
•

Co., 123

i

74

tion, 611 North Broadway.

With Marshall Cg*

Members New York Security Dealers Association

become

Pitser & Co., 517

5

Bro¬

Restaurant

Analysis — New York
Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
Black, Si vails & Bryson, Inc.—Analysis—Herzfeld & Stern, 30

Research Department, Box 2097,
minal Annex, Los Angeles 54, Calif.

First National Bank,

Company—Analysis—Schweickhardt &

Co., 29 Broadway, New York 6, N.
Anglo Canadian Telephone Company

Customers

of

kers annual dinner and installa¬

Co.,

—

American Natural Gas

Also avail¬

Association

tion

Memorandum — Fulton Reid &
Union Commerce Building, Cleveland 14, Ohio.

Burnham and

Street, New York 5, N. Y.
able is current Foreign Letter.

on

American Monorail Co.

3rd

Sept. 11, 1958 (New York City)

available is a mem¬

Square D. Also
Eastern Stainless Steel.

l'ittston Company and

7, D. C.

annual outing at
Itasca Country Club* Itasca, 111.

14

& Co.,

Society of

Investment Analysts

Chicago

Wall Street, New York 5, N. Y. In the same bulletin are re¬
views
of Baltimore & Ohio Railroad, Phileo Corporation,

(Chicago, III.)

1958

Sept. 11,

Western Pacific.

Laboratories—Review—Shearson, Hammill

Allied

View

Street, Boston 9, Mass.
of Kaiser Aluminum,

Pont, Homsey & Company, 31 Milk
the same letter are analyses

du

Field

Investment

In

h

#

•*

■■■■

.

Also in

understood that the firms mentioned will be pleated
to tend intereeted parties the following literature:

Company, 15 Broad

EVENTS

'

•

Corporation—Analysis—In current investment letter

Admiral

i<

Burnham

COMING

•

—

George S.

affiliated with

Hillsboro Street.

MILWAUKEE,

Wis.

—

Sigurd

Sigurdson is now connected .with
The Marshall Company, 765 North
Water Street.

•

A

INCOME,

sheltered

PROFIT

growth stock.

successful depres¬
sion-proof business since JW:J7.
Company in

Memorandum

on

request.

JOHN C. KAHN CO.
"1108-IMh St., N.W.

Washington, D. C.

Volume

188

Number 5776

.

.

.

The Commercial and Financial Chronicle

(1009)

GAO operates in 15 states and in

General American

n

+•

these

farmouts,

by

it

has

a

50%

ex-

In

to mini-

aims

cash

own

contributions
its

and

ferred arrangement

is one

pre-

where-

net

profits interest, with the partner assuming
all drilling costs.

acquirer of crude in the ground, and
a

its

through

Enterprise Economist

leveraged stock with

operations, it

mize

\

The

a highly
splendid performance record.

In

profitability,

outstanding

Canadian

not

order of about 6.7 to

1) but from

highly competent and

management

Meadows,
pany,

and
years

led

by

founder

oil-wise

Algur

of

the

H.

com-

and now Board Chairman,
Gordon Simpson for many

counsel, and

now

ment" can be sold usually at or
about its face amount so tnat the
seller in reality gets all cash,
And, reverting to the buyer, he
(1) buys all the oil for only 20%
cash, and (2) he's entitled to all

GAO has also benefited by its
corporate long-term relationship with Revehicles, General American Oils, public National Bank of Dallas
100% owned subsidiary,
Ltd.,
100%
(a^ major commercial bank with
and Fargo Oils,
Ltd., where in- a long record and special talents
terest is represented by owner- in the field of oil
financing).

uncertainties

the oil that

ship

the

million

crease

Major Canadian acreage
includes a 461/s% working interest
in -iuu,uw auca m joiiusn v^uiuui400,000 acres in British Colum-

1958 has been sort of

year

lull

year in oil.
Overproduction, induced by the Suez seizure,
heavy proration in Texas, import
a

restrictions

on

.surrounding
the

ultimate

ownership
and profitability of lush
Arabian
nose

are-

acreage,

ondary

may

recover

techniques

sec-

add further production bounties.

Through shrewd and continu¬
application
of
this
highly
leveraged device, which is neither
a direct
liability nor a fixed obli¬
gation, GAO has, up to now, acquired over $140 million in producing properties with a cash

d

m a

TI-,uniuvh

ar-

an

T2

of

a

tankers, and
refinery

soggy

runs

all

—

have

these

loDie.gD

may

of

ing

U.

and ultimate pro¬

reserves

duction; the existing wells
bring in above estimate, and

beaching

the

Ira

can be produced after
$800,000 (and interest) has
been paid off. Often new drilling
on
the property will vastly in¬

ous

works

operations,

through

of

about

26%
of

of

the

bright

prospects

Republic

8.4

outstanding

±n

with

National

Bank

has

arranged most of the reserved oil
production
payments for
GAO.

(In

Canada

rangements

fectiyely

similar

have

financial

been

ar-

ef-

most

worked

substantial present gas production

out with
Royal Bank of Canada.)

geared to a 27 year delivery contract with Westcoast: Transmis-

GAO is the low labor factor.' In

GAO

and

Ltd.
Ltd.

apmiirpH
ihic
acquired
this,
producing wells
in
Saskatchewan,
Alberta
and
British Columbia, and three milSlOn.
sion.

Fargo

has

lion
now

on

167

acres

in

an

British

Columbia

exploratory

farmout

the

widely
held
among
more
so¬
phisticated and informed inves¬
tors, that (1) we are in for unremitting inflation and (2) that
oil in the ground is one of the
If

we

this

assume

securities
than

more

the

we

stock

common

this
this

rvP

atm

of

etoaaiW

ricinrt

lnh^,.

steadily rising labor
clauses, it is
nice to see a company whose total
payroll is only 13% of gross operating income. That's the ratio
age

costs

and

at GAO.

escalator

With cost factors

so

well

with

in

fiscal

Thus

1957

(year

at

55.8%

interest

in

include

serves

is

payments.

million

at

oil

Proven

are now estimated at
net barrels; natural

about

300

billion

re-

111

erating

gas

lines, and

cubic feet,

in East

by

additional

GAO

Other holdings of GAO
a

a

syndicate

a

Company

miles. ,of

156

Baker, Simonds & Co.

39 V2

Texas,

gathering

mile

with

op-

a

trunkline

10

year

has

shares,
strong

share

members of the Detroit Stock Ex¬

change,

preferred

warrants and is
against dilution of

no

18

will

T30i„u

\tt

fewP^

C'

Treasurer;

Y'laudpfi

n^uker
„ruKer»

Jefferson
Portw

P.

liam

L.
Hurley, and Frank J.
Keogh, Jr., Assistant Vice-Presi¬
dents; and William B. Hibbard
a„

.

v

xw+

kindly

announcement

is neither

an

The
Not

a

Montor
,

firm

name

Associates
p.

cnanse Place,

'

JNew

Exchange,
Alkow

&

has

Co.,

F. I. du Pont Branch

the

ground

ue,

uhder

the

Share)

DEPENDABLE

gained great popularity. It's
called a "reserved oil production

a

SPARK

PLUGS

estimated to be worth

lot more than

that—perhaps $2

million—but it may be years

be¬

asset

can

that

fore

subterranean

and

surfaced

be

cashed.

So

Price $28.50 per Share

$1

good, par¬
ticularly when it can be treated
tax-wise as a capital gain.
looks

million

-the

But

he's

getting

pretty

Copies of the Prospectus

a

nouncement

hates to shell out "all cash," par¬

when there's a better
So he puts up only $200,000
delivers to the seller

ticularly
way.

may be obtained
is circulatedfrom only such

in any State in which this an¬
of the underwriters as may legally
offer these seourities in compliance with the securities laws of such State.

even
though
long-term bargain,

buyer,

in cash and

production

pay¬

ment" contract for $800,000

bear¬

"reserve

a

ing

interest
has

ment

oil

Hornblower & Weeks

at 5y2%. This pay¬
no
maturity
date:

Glore, Forgan & Co.

principal is reduced only as the
is actually derricked and sold.
Proration will delay the payout,
oil

but

ultimately

The First Boston Corporation

,

Merrill Lynch, Pierce, Fenner & Smith

Blyth & Co., Inc.

the entire princi¬

Eastman Dillon, Union Securities & Co.
♦

pal will be paid off out of actual
production, with the 5t2% inter¬
est running on the unpaid bal¬
ances

.

Goldman, Sachs & Co.

Harriman Ripley & Co.

Kidder, Peabody & Co.

Lazard Freres & Co.

Incorporated

Lehman Brothers

in the interim.

would the seller take
a
deal like this?
Only 20% cash
and a note that might take years

Smith, Barney & Co.

Stone & Webster Securities Corporation

Now why

off?

this



pay-

White, Weld & Co.

that

to

The answer is
"reserved
production

pay

-

Drexel & Co.

Paine, Webber, Jackson & Curtis

branch

management

of these securities.

any

a

office at 411 North Central Aven¬

since

reserves are

to
M.

Alkow is President.

Common Stock

payment." The beauty of this de¬
vice is that it pleases everybody.
A party owning oil in the ground
agrees
to sell the property for.
say,
$1,000,000.
The known oil

Jacob

Inc.

Company

per

Ex-

York City,

been'changed

September 11,1958

(Par Value $1%

Henry
40

PHOENIX, Ariz.—Francis I. du

offer to sell, nor a solicitation of offers to buy,
offering is made only by the Prospectus.

objective it pioneered in a unique
vehicle
of
finance,
which has

of

Inc

Champion Spark Plug Company

Oil

*

members of the New York Stock

the

New Issue

ef Texas was incorpo¬
rated to acquire producing prop¬
erties, and ambitious to become
a significant factor in the produc¬
tion of
petroleum.
In the first

♦

Now Alkow & Co.
The

827,400 Shares

include

•

ecie anes.

of Texas.

This

a

Potter, Assistant

a

George F. Stoeberl.

in

W.

Mqiii-ipa

vice-presidents, Paul
Chester, Secretary; William E.
Baubie, William P. Brown, Wil¬

_

In

oil

*

Vice

Pont & Co. has opened

case,

are

r»

kef™n, Vice-Present

c

Baker

D

A

Under economic conditions now
prevailing,
and
foreseeable,
it
would appear that the long-term
trend in the price of crude is up.

that

become

Exchange. Officers ocf the firm

very

shareholder's equity,

Sept.

on

members of the New York Stock

distribution.

debt,

no

To Be NYSE Member
DETROIT, Mich.—Baker, Sim¬
onds & Co., Inc., Buhl
Building,

General

of

General American

1936

holdings.

of

GAO.

In

$12 million in its Fargo

American Pipeline

has spent 22 dy¬
shopping for under¬
ground oil and buying it cheap.
And it has done a wonderful job
for
its
early stockholders with
the shares, over a 10-vear period,
rising from a low of 3 *8 in 1948
to a 1957 high of 47%; and today's
price of around 40, a gain of well
over
1,000%. In your catalog of

stocks,

6/30).

some

tion

years

growth

ends

of

year's production alone

company

namic

,

one

million barrels

for oil exploration in Spain; and
entire
ownership
of
General

take

look

American Oil Company
This

one

should

passing

a

production "of 8V2

_

of

brace

premises to be valid, then
the

_____

would be enough to liquidate (at
present prices) all the outstanding principal amount of produc-

best hedges against same.

very

^

(below the $2.97 of 1957)
due to proration, but that shouldn't
the long-term uptrend,

disturb

and

Another point of interest about

approximately a 25% net controlled and an extremely low
enthusiasm for oil.
Against this outla^ of only some $25 million, interest; and about &3,000 acres in tax payout, GAO common has
somewhat gloomy backdrop, eager And the returns on this capital
the Innisfoil Field in Alberta a very considerable attraction,
and
ubiquitous exploration has have been truly amazing.
GAO under an exploration agreement There are presently outstanding
unearthed exciting possibilities in has operated in every year at a with Cities Service Co. whereby 3,045,600 common shares listed on
the Sahara; Alaska; a new strike
profit and, in 20 years, has in- they will spend $2 million drill- N Y. S. E. Current dividend
in Syria; and improving climate
creased its producing properties
and searching, and Fargo will policy is to pay 40 cents in cash
for exploration and development
over 700% and net income over collect 50% of the net. Both GAO and 5% in stock, a program dein
Argentina
and
Chile.
And 1,700%.
Ltd. and Fargo are operating signed to conserve cash resources
above
Today GAO is a large scale profitably, and GAO already has and to recognize growth in net
all there
is the opinion,
petroleum producer with a net a market profit (over book cost) worth through retained earnings,
backed by considerable logic, and
1_
hm
down

slowed

of GAO. Earnings may dip a little
this year

GAO

common.

bia

soundly managed enterprise might
be to join the 5,000 stockholders

two

shares

a

President.

oil, political

The

worthy asset, and

a

sensible inflation hedge. » One of
the most effective ways of owning oil in the ground, and shar(in the, ing in the continued growth of a

of GAO stem
only from intelligent applica-

tiop of financial leverage
a

looks like

and

success

ac*uaJ produc- burgeoning growth

un

tion, GAO has been active in
ploration
and
development.

Company oi Texas
By DR. IRA U. COBLEIGH

An aggressive

record of sustained

Canada, owning 2,960 net wells.

9

Dean Witter & Co.

'

of

Financial Chronicle

The Commercial and

...

Thursday, September 11,1958

(1010)

2,0.

must be con¬
small company's

law these debentures

Highlights of Small Business Laws
By ROGER

W. BABSON

vertible into the

From

stock.

common

Tax Benefits for

Companies

Mr. Babson reviews

the highlights of the

recently passed to help small business,
Investment Act as the most significant

three Federal laws
and singles out the
of the three laws.

Of course,
a

Washington

Small Investment

Ahead

the chief advantage to

of the News

small business investment com¬

By CARLISLE BARGERON

and its shareholders lies in
chance of long-term capital
Mrs.' Roosevelt, now" in Russia, governor on the anti-closed shop
gains which would be tax-favored.
Until now, the death of one Investment companies holding the; has gotten herself involved with issue,
-"-'y..'J'"v'V^ ■"
Republicans over the
It is ironical to see the Senate
whose estate consisted largely of stock of small businesses would California
his interest in a closely held busi¬ be entitled to a 100% dividend- question of whether her husband McClellan committee now throwing up its hands in horror over'
ness often resulted in forced sale
received deduction instead of the was against
corruption in labor, particularly
the closed
of the business to obtain cash for
pany

the

have

break
been

enacted.

Here

are

these

o

f

estate

in

this year's tax

plus
the

provisions
which give

better

these

Roger

corporation—
ordinary loss, rather

as an

a

investment
an individual

capital loss, any

a

loss up to $25,000 on

income tax return and up

rate

on

its short- and

is

loans

ate-term

intermedi¬
from

reduced

5% to 41/2%.

in

this

lished by 10 or more persons.

should

also

note

that
is

concession

ciation

this

depre¬
limited to

not less
$300,000. However, as much

capital
than

equipment and machinery. Build¬
are

break

not

for

as

included. A further

small

accumulated

business permits

earnings of $100,000

without being

liable for payment

surplus

and

half of
SBA.

from

this might

of

be obtained

The small investment

companies thus organized could
make long-term loans of up to 20
or

years

rather than $60,000,

Each

be chartered and
its charter must be approved by
SBA. It must also have a paid-in
must

company

of the special

even

more.

Thev could
to
of

equity capital
small firms through purchase

also

the

surtax penalty.

advance

small

firm's

debentures.

By

With

ally do not feel responsible to the

to work which

is

-

order

-

"union"
HILLS, Calif. — or
-:C.;
Campbell is now shop. •
with Bache & Co., 445 North RoxMrs. Roosevelt hotly denies that
he ever said any such thing. She
bury Drive.
insists he was always in favor of

M.

(Special to The Financial

BEVERLY

The

added to
staff of Francis I. du Pont &

James A. Deak has been

Fully Accredited Course

the

Co., City National Bank

Bldg.

struck

On Investment Cos. Set

press

not

do

devoted exclusively to investment

of

companies is scheduled to be giv¬
en during the Fall semester at the
Bernard
M.
Baruch
School
of

issue

the closed shop.

The dispute was
carried to the National Mediation

Business and Public Administra¬
of representatives
tion of the College of the City
labor, employers and the pub¬
(Special to The Financial Chronicle)
of New York, it is announced.
»
lic. When the board ruled against
LOS ANGELES, Calif.— Nellie
Key representatives of the invest¬
the
miners
the
CIO
members
O.
Sheppard has become asso¬ withdrew from the board, thereby ment company business will be
ciated
with
the
First
Angeles
guest lecturers during the course,
wrecking that agency.
which will meet Thursday even¬
Corp., 210 North Carolwood Drive.
At this point Roosevelt took a^.
Miss Sheppard was formerly with
stand.
At a press conference he ings from Sept. 18 to Jan. 15. Dr.
Cradoek Securities Ltd. and F. W.
said
"the
Government
of
the Harold S. Oberg, Research Direc¬
MacDonald & Co., Inc.
tor of the National Association of
United States will not order nor

With First Angeles

Board composed
of

will

Phila. Sees. Ass'n to Hear

Congress pass legislation

the

ordering the so-called closed shop.
That would be too much like the

Investment

methods

Hitler

subject
the

closed' shop

it

that

in

if

will

he

pay

un-

was

required

dues

a

a

shop the union

The

and

there
the

little

is

union

Taft-Hartley

scribed

»

was

dif¬
has

Dempsey-Tegeler & Co., 210 West

shop

as

til it

YOUR

ADVERTISING

was

Seventh

claims

of

workers un¬
membership of

a

about 14,000,000.

Taft-Hartley

Act

was

an

improvement over the old Wagner
Act mainly because it curbed the
National Labor Relations Board
but there is

a

Street.

de¬

slave labor act when

millions

now

The

YEAR-BOOK WILL BE PUBLISHED BY THE "CHRONICLE"

a

Act

Calif.—Fred R.

Tuerk, Donald A. Rose and Carl
L. Jeschke are now connected with

David

passed. As

ditional

AND

(Special to The Financial Chronicle)

LOS ANGELES,

a matter of fact
organized labor has enjoyed a
heyday under it, organizing ad¬

it

-

Demncev-Tes^Ier & Co.

union

practice

With

Tuerk

Fred

can

become the universal practice.
.

dures,

out of work

ference

RUSH

open-

companies,

out of the union. Un¬

man

the

In

ASSOCIATION,

PLEASE

of

investment

closed-end

and

end

the

One difference is that un¬

thrown

NUMBER

characteristics

include

even

to

shop he cannot be
by the union
if he continues to pay his dues.

der

SECURITY

23rd.

a

In-person

that

concluded

INC

OCTOBER

and

faculty,

management
proce¬
investment company poli¬
cies, management appraisal, meth¬
worker to belong to a union be¬
ods of
distribution, taxation,
fore getting a job the union shop
of the industry
by
was
different.
Under the union regulation
Federal and state laws, types of
shop the worker is given a pro¬
investment company shareholders
bationary period in which to join.
and estate planning.
He does
not have
to

kick

ON

Companies
College

the

will supervise

labor."

toward

and

der the closed

CONVENTION

of

member

the course.
registration for the"
It might be worthy of note that two-point credit course, Economics
168, will take place on Thursday
at this time Lewis and the Presi¬
and Friday, Sept. 11 and 12.
dent were bitter enemies.
Lewis
When
offered
previously, the
had split with the President
in
course attracted one of the largest
the 1940 campaign and had gone
23. at the Warwick Hotel.
enrollments in the history of the
the
air
with
a
nationwide
Warren V. Musser of the Phila¬ on
Baruch School, and marked
the
delphia Securities Co., Inc., 1526 broadcast calling for Roosevelt's
first time a course devoted en¬
C estnut Street, is in charge of defeat.
When
the Republicans
passed tirely to investment companies
arrangements.
had been given for full credit at
the Taft-Hartley Act of 1948 they
any college or university.
brought the little used union shop
Subjects covered in the course
into
wide practice.
Students of

Pa.—Thomas
President of H. K.
Porter
Company,
will be guest
speaker at a luncheon meeting of
the Philadelphia Securities Asso¬
ciation to be held Tuesday, Sept.
PHILADELPHIA,

Mellon Evans,

union.

N.S.T.A.

fully accredited college course

Mine Workers

principal

the

on

A

her out.

bear

the United

1941

In

House

the

of

conferences

join

OFFICIAL

made to

;

For CCNY Fall Semester

White

Roosevelt's

of

files

transcript
—

then

THE

situation is

them.

and union shops.; T

the closed

Chronicle)

HILLS, Calif.

OVER-THE-COUNTER-MARKET

PACTUM

The

for

.

SYMBOL OF INTEGRITY

MEUM

There

Walter Reuthers and Jimmy

Hoffas.

to

*1

power¬

wonder that it has spawned

no

your

"closed"

the

or

The unions have grown

a s

American

DICTUM

anybody else.

membership

while

TRADERS

'■>;(v
forced into the union

men

through the closed shop or
the union shop the leaders natur¬

ful and know no restraints.

opposition

Chronicle)

nil'

this

either

s

being :i n

the

was

championed
the "freedom"

the

NATIONAL

It

made

possible.

labor relations had pondered over

in the

which

conditions

BEVERLY

Granville

a

depreciation available on the same
property
in future years.
You

union.

politicians who brought about the

represented as'
once
having

terpreted

F. I. du Pont Adds

will reduce the amount of regular

ings

law. Look into it!

(Special to The Financial

to $50,-

ordinary

i

Roosevelt

teamsters'

the

shop.
In a
campaign

is

new

With Bache & Co.

a

Small Business Investment Act
joint return. Of course,
loss treatment is
To my mind the most significant
restricted to original purchasers
legislation affecting small business
of common stock in small busi¬
is the Small Business Investment
nesses. Transferees of the original
Act. This is an unprecedented step
purchaser may not claim
this
toward overcoming
one
of the
privilege.
greatest handicaps facing small
In addition to present deprecia¬
business today, namely its inabil¬
tion rates, a separate first-year
ity to obtain readily the equity
allowance of 20% of the value of
capital and the long-term aeot
the
depreciable property up to capital it requires.
$10,000 is now provided. This al¬
Investment companies whose
lowance is boosted to 20% of the
primary purpose is to provide
first $20,000 when a joint income
venture capital for small and ex¬
tax return is made. Of course, if
panding businesses can be estab¬
this extra depreciation is used, it

000

to in¬

gain taxwise and otherwise by
converting these firms into small
business investment companies

this bureau

permanent government
Those borrowing directly
from this agency get a break too,
for the SBA's maximum interest
to

agency.

permits

treat

than

W. Babson

f

individual—or

an

to

o

per year on

$350,000 and elevated

far-

most

reaching

listing

panies, finance companies, or like
enterprises, I suggest you. may

has also raised the
loan limit of the Small Business under this
Administration from $250,000 to

One of

break.

interest at 4%
unpaid balance.

Congress

.small business
a

period. Payment may
annual installments

be made in 10

several

firms

85%.

Space does not permit
additional tax advantages

his

10-year

a

revision

are

incerest

given business exceeds vest me n t companies chartered pamphlet cir¬
gross estate, Federal under this new law. If you have'' culated out
taxes may be spread over interest in venture capital com¬ there, Mr.

of

35%

law

.

ceased in a

new

Included

the

in cases where
of the de¬

of

value

the

laws.
v

Tax Payments

normal

the

highlights

Spreading Estate

death taxes. Now,

gotten
around to doing something for
small business. Three major bills
designed to give small business a
has

Congress

last

At

question of whether
organization.

Pearson

Joins

Co.

Dillon

Eastman

(Special to The Financial

Chronicle)

Calif. —David
associated
with Eastman Dillon, Union Se¬
LOS ANGELES,

C. Pearson has become

curities & Co., 3115
Mr.

Pearson

was

Wilshire Blvd.
with

formerly

Bingham, Walter & Hurry,
the past was an

and in

officer of George

R. Miller & Co. of

Pasadena.

it didn't stimulate

RESERVATION

SPACE

FOR

A

PREFERRED

POSITION.

The

situation




have

closed

CLOSING DATE FOR COPY IS OCTOBER 1st.

states

or

laws

now

that

is

prohibiting

union shop.

18

union if he wants to.
He
cannot be forced to join one.
In
California the issue in the present

join

Now W*fh Fairman Co.

the

(Special to The Financial

A man can

a

campaign is of passing

a

law to

nrnMbit the closed

or

Senator Knowland

is running for

union shop.

LOS

Chronicle)

ANGELES, Calif. —Lewis

Akmakjian is. now with Fairman
°io W-~t s—
th Street,
«*

members

Stock

of

the

Exchange.

Pacific
He

ously with J. Logan &

was

Co.

Coast
previ¬

Volume

Number

188

5776

...

The Commercial and Financial Chronicle

(1011)
and

How Banks

Doing in 1958

are

Increased bank earning power is envisioned by head of invest¬

million, shown

banking firm who predicts demand for bank credit from
private and public sources alike are potentially great and
foretell a rising level of loans and investments. Mr.
Schapiro ,fpoints out that monetary authorities want higher interest rates
despite cost to borrowers and that market depreciation in bond
v

based

-

Bank

.

shareholders

keenly

are

affected

have
of

by

the

made

changes

1957

monetary

headline

and

•

Let

which

1958

ket

or

useful

in

policies

of

thorities.

•

;
.

^gium,

France,

and other

tra 1
•

cen¬

bank s,

our

too,

own,

'have raised

'

'

r-

.'serve
1

.c

of

o

Since

advent
.been

mercial

.permitting
vestments,

have

Rates

and

theory is

to

as

■

of

York

of

$23.5

of

this

for

bank

of

total

loans

are

and

is the

This

profit

$23,462,000,000
-r.'v

'•

•

T-.

volume

.

•

.

.

loans

tivm

and

!»

*-

The

even.

proof

that
be

can

the

banks.

But increased

deposits and
consequent higher tjj.evel of
yield "loans
and investments wil help
future
|Lp
•

The

between

'

s.even

'

0U

is

when

brief

ties.

Sllfh

span

from

S priqi, SUCP

months

;

'

;

as

Paine, Webber Adds

Deposit. gains,

times

HARTFORD, Conn.—Irving U.
Knight
staff of

cur,

has

been

added

however,

have
Disparities ocgeographically, by size and

were

This is

not an

shares

were

ment for the

whole year

greater than the
declared in 1957.

$151.5
For

offering of these debentures for sale
The

by

issued.

1958 is

million

example,

Innerasky,
with
85

J.

H.

Mass.

Jr.

is

Goddard

Devonshire

or an offer to buy, or a solicitation of
offering is, made only by the prospectus.

an

offer to buy,

of such debentures.

-of

;

measures
bring our financial.
dilemma
into constantly
wider
.view, here and aboard.
Despite
the cost to
borrowers, including
the Treasury itself, it is apparent
that the monetary authorities now
want higher interest rates.

hhTTT.-

$150,000,000

;

Standard Oil

-

.

Company of California

'

The banking system is sensitive,
and
'

\

^

quickly responsive to adminaction.
Today's changes

"

4%% Sinking Fund Debentures

istrative
are

Due July 1, 1983

their sud¬
scope.
Only a year
Federal Reserve raised''

unprecedented

in

and

denness

ago, the
the discount rate from 3 to 3V2 %.'

hurried

The

last

shift

November

Price 99.625%

to easy money and low rates

has;
how been reversed to tight money r.
and

higher rates.

Nowhere is the
these changes so dra-

matic

in the market for Treas-

as

July 1, 1958.

•

impact of
■

Plus accrued interest from

•

•

*

and

securities. Here, concretely:
psychologically, through the

rise

and

ury

fall

authorities

leverage
alike.

in

exert

underwriters

lenders and borrowers."

on

...

-

^.

Copies of the prospectus may be obtainedfrom any of the several underwriters only in states in which such
are
qualified to act as dealers in securities and in which the prospectus may. legally be distributed.

quotations, the
their
greatest;

Lenders' Market for Money

banks

Commercial

they now have market deprecia¬
tion in their bond investments,,
even
in-the'-short-term, but this;
will be outweighed by the*

on

bring.

loans and
,

;»

:

Eastman Dillon, Union Securities & Co.

*

An

address

Associate

n

of

Notch,

by

Mr.

Marine

N.

H.,

Merrill Lynch, Pierce, Fenner & Smith

Glore, Forgan & Co.

.

Goldman, Sachs & Co*

„

.:

favor-,

Harriman

......

Ripley & Co.; /

Incorporated-..

'

,

f

investments*;

Smith, Barney & Go*

Kidder, Peabody & Co.

^^

r.'

•

.

F. S. Smithers & Co.

•

.

'

'

>

s

Lazard Freres & Co.
.

Lehman Brothers

'

Stone & Webster Securities Corporation

"
„

Dixville

Kuhn, Loeb & Co.

.

profit margins which higher.

yields
Will

Dean Witter & Co.

The First Boston Corporation

again operating in a sellers' or
lenders' market for money. True,

able

Blyth & Co., Inc.

,

once,

are

Schapiro
Savings

Sept.

5,

before
Banks,'
1958.




„

,September 5,. 1958.-

'•

-

---

;

:
t

"

V *

-

/

.

.

connected

Co., Inc>,

Exchange.

-

continued public deficits and
;
the threat of further money mar- *

&

Street, members of

the Boston Stock

any

Richard P.

—

now

Meanwhile, fear

ket

the

(Special to The Financial Chronicle)

BOSTON,

<

"

to

Raine, Webber, Jackson 8s

Curtis, 111 Pearl Street.

'during 1957,
increased, and

.Thus, the total dividend require-

not been uniform.

:

;

With J. H. Goddard & Co.

I

<

various

dividend rates

1

Example

an

&

(Special to The Financial Chronicle)
,

1958,

.

■

At

additional

City

Small

securities business.

Such earnings

"

New. York

realized
and
the
yield .required
the profit margin, which can be
expressed in dollars and cents per thou¬
-

Dei'iod

aIe,P

.

—

Company Incorporated has been
formed with offices in the Union
Center Building, to
engage in a

-

the

investments.

the

November to June.

_

total loans and
yield
required
i to

difference

earnings,, especially

low—rate
;L

as

WICHITA, Kansas

-

'

by

of most

power

mo.ion in
over 1957,

Company Is

Formed in Wichita

8.80%
of the
Diamond, Turk Admits
capital accounts of $3.2 billion, or
$8.80 on each $100 of stockholders'
Adele
Diamond
and
Nathan
~-M"b, oi course, is excluBernsohn became partners in Dia¬
Slve of Sains or losses realized on
sale of investments, chargeoffs, mond, Turk & Company, 30 Pine
recoveries, and transfers to or -Street, New York City, members
tro^ reserves. Most of the banks of the American Stock
Exchange,
are in a net gain position because
on Sept.' 3.
,X
°*
profits taken earlier this
f
i&n saies of Treasury secun-

time, low
interest
rising costs will cut

earning

IBradley & Co.

^present

-

lower

offset

"

up 3.4%

the

investments.

loans and

no

and

down

in- 1957:

*

yield
gives

dollars of

V

M.

oldest investment house in

Small &

-

required for yields to catch

In

rates

interest,

from

is

margins

Edward

rnnnertimif-

be readily calculated by

can

formula.-

off-

was

Edward

celebrating the 90th
of its founding in

1868.

fivv

($278,600,000) - ($22.50) x
(24,280,000) x (100.0% — 49.0%)

in' thou¬

expressed

ratio'ofThTs'/TeficiT-to"
investments
is
the

sand

'

—

Incorporated,

-emDers is tne Boston Stock Exot

In

ending June 30, 1958 were $278.6
million, shown as follows: /
'

of

than

1

on/1

$23.10 to $22.50; but this

the interest rate or
even, operating income,
is deducted
from
operating expenses. This leaves a dollar
deficit
which
must
be met
by interest

break

tmli'mho

Co.,

change,

on

.set'by-the 3.5% increase in aver- UP-age" :earninS J assets.
Thus, net :
We can safely estimate net op¬
earning'operating earnings for the year eratin£ earnings of the New York

i To compute

income
iiiwiijt

.

&

theBoston'StneTTv''

Anniversary

high

new

Bradley

members of

billion

1957.- The "effect

Bradley Go.

NEW HAVEN, Conn.
M.

$27.0
15%

or

.

Celebrates 90 Years

loans

*23 10

required to break
other

o'ronlnr

"work

upset

the

worthy of mention,

earnings assets, as well "
profit margin improve¬

any

ment,

the

power

is

will probably

when corporate profits

Edward M,

for the 12 months ended June 30, ond investments.
Although the
1958. Reflecting the fall in rates .profit margin trend is again laand The gain in liquidity, the .Y.orab1?' improvement from the
profit margin for the New York
Slx months figure of $21.40
City; bank group slipped from ,W1" be gradual because of the

This

The other two factors

v'.

:•

V-

of

total

billion,

year

_

Tniio

-

Ahead

may

sometimes

-human behavior.

refer

margin

formula

averaged

in¬

for

earnings

the

^eatfanrf^oreteR1 rhdn^Wel
gf t J j £
and investments
the r.
loans, ana investments.

(otal loans and investments which

important to commer¬
cial banks are the policies of our
monetary and fiscal authorities,
They in turn are influenced, not
only by the domestic scene, pro¬
duction, and employment, for ex¬
ample; but also by foreign devel¬
opments, such as the balance of
trade and flow of gold.
In the
•foreground is our national debt
and the question of whether its
'.inflationary effect can be con¬
tained by these policies.
This is
tin

and

To

dollars, and the percent¬
the profit which ijs left
provision for applicable in¬
come
taxes.
Again,, to illustrate,
the New York
City banks had

Clearly

What

average

finance

little,

a

had important

The

$3.5

than

banks

;

City was not,
only beneficiary;

greater

;

a

;

alter

com¬

iT"*.1U;

problematical.

y

level

of

age

lower,

are

loans

r,/

Higher Interest
.

will
York

volume

sands

greater< expan¬

total

••

....

in-

regular quarterly divi-

.

member

York

was

Com

week

general are down, that banks
are earning and paying more.
»

faine(J l6-2'/f5, compared
all
other

billion.

It

last

in

of the three factors basic

investments

increased.

required

even

of'their

sion

Deposits at

banks

■

nrofit

one

power.

reserves

i

of loans and -investments.

—the

widely interpreted.
November, with the

supply.

.

crec^, .from private. and public

2.31%, or a profit margin
$23.10 for,every thousand dol-

to-our

A. Schapiro

easy money, there has
marked addition to, our

.money

Cash

Morris

of

a

to

•

Treasury> to°- Demands for bank

of

■only

and

last

even,

loans and investments.

^'-'The

by

e

s

we

.!iir

_

/

are

watched

*

laps

ac-

Federal; Re-

have
and

'

in

Chemical

Bank,

Other

follow.

In

oi' $16.7 billion and
investments of

Demand

f ,.1V '

country.

estimating New York City
lvqjor
New
City banks.'■ * Thus, greater volume and firm bank earnings for 1958, we must
Thus, in?. 1957,. the New York i'htes mean i n c r e a s e d earning consider (1) the money market
Clearing House banks as a group power. The effect of more volume icveisal to higher rates, and (2)
realized a rate of 3.79% on their is shown by the operating results the sharply higher level of loans
illustrate,
'

tial

'tionsibfdur
j

will

' !

V

the

investments, New

for

New

billion
Credit
•

big

£g/

a

6.1%

$10.3

Great

of

At
midyear, the New
Clearing House banks had

the
au¬

:

3

business,

exceeded the required break-even
rate of 1.48%, leaving a different

freq uently V■moving in, op¬
posite direc- J
-tions. The

■

Total

or

dowered (the
discount T ate,'

bank

by

Government

■

'[, Banks

Rs totaMoans and

required to just break

England, Bel-

how

affected

are

the

;

a

rest

dend.

gains.

investments and the interest rate

.

s.-

the

of
course, the
other centers, too,

The formula

showing

-shareholders

;

equa^-

correlated to money mar¬

are

Potentially

on

lor

New York's third lare-

depos7ts

Exchange

New York

total loans and

this

in

creased its

City increased
their deposits 15.0%
against 5.7%

factors, interest rates, operat¬

is

up.

earned

of

ing costs, and taxes.

identify the profit marbank as the differential,
soread
between the interest

rate

years

in

banks.

tion

^

us

gin of.

are

banks

v.JDhe..components

,

bank

FPm.r, j30, 1957 to June 25,

1958, the Federal Reserve member

T01
to

,

interested in how their banks

'10

follows:

as

one

est

to

—

on

required for yields to catch

type, and individually from bank
bank. To
illustrate, in the pe-

the

($272,800,000) = ($23.10) x
.(23,462,000) x (100.0%
49.6%)

be outweighed by favorable profit margins f

expected higher yields on loans and investments. In
depicting favorable profit margin trend ahead, the eminent
banking analyst is mindful this will be gradual because time is

>

at

erating earnings in 1957 of $272.8

ment

will

taxes

obtain their combined net
op¬

we

investments

»
income

of -49.6%,

keeping 50.4%.
Thus, by multiplying these three
factors according to the
formula,

President, M, A. Schapiro & Co., Inc.; New York City

i

Federal

rate

By MORRIS A. SCHAPIRO*
-

they accrued applicable State

:,nri
and

11

White, Weld & Co.

Financial Chronicle

The Commercial and

of

The fact is that the in- nificant developments in the last
savings in our savings few decades in the savings habits
and Joan associations in the first of the American people and the

money.

half

Loan

Mr. Strunk discusses

Their

States Savings &

Vice-President of the United

the savings habit of

Americans; describes

to economic growth; assures
worried about the current high rate of personal
its

importance

1930's by

then

is the mother of invention," at least so far as America
is concerned, and attempt to dem"Necessity

onstrate that
b

u n

d

nee,

a

the

been

mother of in¬
I do not pre¬

be

to

a

historian,

but
not

and

as
history ma¬

closely

is this: American conby exercising their free
choice, can and do change the
pattern of their spending, disturb
what appears to be the established
agree

on

and

structure,

business

cause

downturn in our economy.

its early years, the United
States met its
capital require-

In the

ments

is

obtained savings funds
two principal sources:
(1)

resources

our

might never have

dollars

for

such

a

other

jnvCsted

Volkswagen or to save

This: competition for
Hnllnr-Vfiipo 111' rnn.limi'l'G is

llin

in

had

banks and

out world his¬

living cannot even be compared other commodity for which the
those
to ours. Likewise, there are coun- consumer can cast his ballot. And,
people who nave had to struU^lG tpc with j-irnolp natnval resources
r ----- because ot their physical or eco- but'with' a very |ow standard of a?
a
nomic environment merely to get
iiv:n„
An
example of tliis is 0 wish to warn
a8S''essive savings that savings
I
you
enough food to eat and keep a
until very recently
and can be sold and merchandised and
roof over their heads have ad- B
n to this day.
that the savings and loan associa¬
vanced slowly, it at all, in mate.
...
tions
will continue to compete
rial
and cultural things.
It is
In comparing our
^
tory

who

in an account in a
loan association and
30% of them had incomes of less
than

the representative of
group
institutions,

-

than

only those people who have what
economists
term
an
"economic

have' developed

that

a

education and a constantly rising standard of living.
culture, art,

.

.

.

.

.

foreign money
were
the American

■

the lush river val-

took place in

ford,

thp

nroeress

petitive abilities of savings institutions in the market place.
If

work, efficiently' functioning gov- needs, such

of the earlv

decide
as

that

as

and

even

riman

and

future •

the education of

Most

heavily
on
a
relatively
few
wealthy individuals for its capital

than

less

of

our

bank

per. w°rker invested
Pa!?!i_a^d..equipment, compared

per¬

the savers in savings

bank savers had

or less.
Forty percent
people with accounts ip

of

$2,000

of

the

Our

and build dams, dikes and on the balance sheets of our ficanals
to
control the river, to naneial
institutions today, .but
make use cf its advantages and they worked longer hours than

energy

to

the classification of necessary to get the
"The gift of the Nile.'
used their surplus

justify

Egypt

as

different

too

know in our

that

from

we

country today.

constantly-

scratch

for

to-

a

next meal and and credit economy such as ours,
labor to lm- producing durable goods in large

fhefr client

hicomei

Th?«

is

■!

Iand> build fences, volume, we must accept the risks tremendnns nddition tr. America's
f>iat|uce a surplus crop to buy 0f cumulative tendencies toward
._„:tai
h*rm equipment, etc. The fact that inflation and deflation. The more
gs cap a.
w^h^d5 fund^Tp^6'Itr' nftPr stylS Ye put into our Products Growth of Middle Class America
Xdh?g tothe r"ba^esUn? .^m ^hkeiyU iltha wl^ i The great change that has octial nfeeds and that these savings havrDeaks :nd \''dl!w?
s^h curred in America in the last gen-

Other nations whose people had
to

ImnorHnt Xthe weni AmeS
l™£?lv now^ has income well
*amily now has income well
can\fford liotha standard of liv?
7, ! botn a standard 01 iiv
fundamentals?
,n8 t ,at dfri"ll(s some ,uxu.nesf
products they areC trying to sell, a"data s° Cnlfnnerearn^La?
alld the price at which thev are what the bieadw inner earns, bast
,'yins to sell them In a moiiev :,ear>. £or example, individuals-

''l0^e

Incidentally, ancient Egypt used
the residential mortgage in a form
not

,

.

.

comlAgTrcra could,be /."vested in such things fluctuations could imnnirinper.a,ti?11 ^as lannly. "se of the
education, housing,
research without serinuslv not be'removed ^iddle class been the The middle
"cuUufe. The aad
^ ^<1 donT SnkTe wfnt lm? classfamily now dominates Amernomadic tribes of ine America
the
1S great fact that has made paired.oi!Individual initiative, free- lca p.° 111lca H we define the midIbe and produced fur- dom
culturally and ecoaction,
and
economic nomical]y*

theii^nexr'neEi^

was coming irom,

next meai

men

enmo

Eskimos ana nomaaic inoes 01
BSKimos and

East
m

(unUl

the

of

discovery

the

Middle East)

oil ther abundance
Truly, savings growth in the American
are the secret of American growth,
History

Over-Savings Thesis

Bringing
fc>>.

to

story

our

...

,

,

^

more

the period alter

the Industrial Revolution, we
thni

the

that

in

early
are

,vincf

most

ctature

their

of

rlonolAiiofl

developed

T7n«i™,q

Enela d

and

-

ployed in

If

.

business which

a

sells

of
our

I

the

have

Savings in
now

America

convinced

you

of savings to
life and times, then you might
importance

income

as

of

one

with an

from $4,000 to

$8,000 we find that today 43% of
the families are in this bracket as

compared with only 15% in 1935,

speaking in terms of constant 1957

worth'your dollars- Today 03% of our famiVV'llO
,
.
who have fniluH thoir rpppecinn ^liile to know a vn,. more about ljes earn more than $4,000 a year,
have found their recession
little
10 l3e a dcPrcssion so far the history and current nature of
We have plenty of evidence that
abl>' thinkina°"Th"rs aUri»ht in favinSs—'P?°P|e save' where families making a lot less than
Em, bu ?'u ind s need today they save, how the savings of the $8,000 a year save money—quite
an ri^nt in American
theory
what we;
people are made avail- a-bit of it—but if you have a hard
things to the American people and

agre'et hat

it should be
_

«

Bu.in...

1S a lu
.

living enjoyed by their

by Stanford

u

^

No doubt about now those em-

,

hv

Mr

st-runir

Confine

hpfn™

sponsored

University, Stanford, Calif,




t

tend

savers

be

to

also

people

and we find a dis¬
tinct correlation, of course, be¬
tween a favorable attitude toward

with families,

thrift

whether

and

not

or

that

are

women

than

minded

who

ings

more

-thrift-

men.

believe, is enough to
picture of the people
save
in
America's leading
institutions, that is, the sav¬
departments of banks and

This, I
give you
thrift

the

We find

family has any children.

a

associations.
that people
with pension plans cover the en¬
tire
range of
employed Ameri¬
cans and that the same is true of
the holders of life insurance poli¬
savings and loan

the

You

know, of course,

cies.

Institutionalization of Savings

American

most

mid¬
the fact that

rise of the American

The

dle class family and

families now can

and do save some money

have not

only resulted in the provision of
a
great deal more capital for
American
industry, it has also
resulted

to

a

large degree in the

institutionalization of savings and
investment. That is to say, more
and

more

of the savings of Amer¬

people are going to financial
institutions—financial intermedi¬

ican

aries—which in turn invest in the
American

in

economy

various

ways.

_

Let

nie

cite

a

few

figures

to

,

f?derabIe justification, that one of houses. You might also people to tive), you might be hard to conwant to vince that anyone making less
the
for this recession was know how to encourage

help

than $8,000 a year would be much

days

reasons

people*^ the fact that the American con- withdraw their savings from their

1

annual

annual

family

less savings and more able to American industry and time living within your income
the prime causes of spfn m^*
government to finance new fac- (which would be normal for an
in the world history
7 m.ain^a^n» and with con- tories, new roads, schools and up and coming business execu-

rplalivelv high
the relatively hieh .standard
tandard

«A

v

of

class

w

Pnr

Ge

Here again, abundance and

saving were

H
and

highly

their history: Examples

Sweden,

many.

VUnVilxr

find

had an economic surplus

nations

way.

lllustra-

are

tions.

modern times, to

die

and

accounts
of less than
Fifty-one percent of the
savings accounts

$2,000.

savings and loan associations
had an account in a bank.

prosperity. The government of the pie Cc\v d,!u aciua.iy cio piouuc.. j0 save
purchase such things.
Pharoahs maintained the fertility
!^pC'fve
U businessmen have tempoof the country by intelligent cons Amencans al" rarily oversold their market and
trol of the Nile at its period of ways have saven.
cannot induce the consumers to
floods. Because of the abundance
Ours has always been a thrifty part with their funds, perhaps
of their economy, they were able nation. Its pioneers may not have (hev oir>ht to look back to two
to save or conserve part of their had cash savings such as we see
The natee of the

of

associations in 1955, 56% had

savings
«

either

sales

or

savers.

Of all
loan

are

savers

clerical

The same thing is true

sonnel.

American^mdustry^today having
111

of

executive,

requirements as it did a genera¬
tion ago.
In the first place, with

? A

incomes

$6,000, and of the savers having
accounts only in banks, 71% had
incomes of less than $6,000.

Hill.

1 ®
" u W*

people haying ac¬

only

had

75%

America today does not rely so

°

and

in the savings and
associations and not in banks,

loan

Charles Crocker,
later in the days of Harand

difference

much

not

the

of

counts

Collins

Hopkins,

Mark

Huntington

savings at financial institutions
recently speaks well for the com-

Improvement in productive faciiities, a Tine transportation net- Americans

leys of the Ancient world. Egypt,
example, had a fruitful influnn

-

.

,

for

pnrp

is

the saver in a bank

a

Thus,

railroads

during the years of Leland Stan¬

others which have ample labor wjth you for those dollar-votes
and resources but whose . people being cast continuously by AmeriPave uot saved, we find that sav- cans jtl our economic election,
The fact that [Americans have
,jn&s an the moving force. If savings are not the mother ot the been favorably disposed toward
111vention.
they are certainly

j°U
W; mof °. -I?e
key to economic progress and the
advances of early civilizations development of our culture,

inal

$6,000.

savings and loan association
to income, occupation or age.

in

dependent upon
for its capital needs

as

nation wit|i

•

$5,000

savings and

being

industry,

.

...

surplus"

We checked those people
indicated that they had more

$6,000.

There

Strunk

than

ciations had incomes of more

between
Norman

of all the savers in
savings and loan asso¬

25%

Only

through¬

that

Savings and

savings and loan associations
incomes of less than $4,000.

and

big

C'eaSCd to oe a iuCtOT 111 AIT1C1

States

picture of savers and their habits
in the fall of that year.
At that
time 35% of all savers in banks

.We do' < "e,ed «>* c'ata to convmee us that the ioreign investor
S

person

products of

League had a survey made
in 1955 and these statistics give a

,

.

find that he
same

business.

United

The

railroads.
,

we

the

Loan

billion, over haff was

$7

dlaj

product:

dollars.

his

there are coun-

as

some

of

look at the Ameri¬

much

very

American

part 0<. tJle total and commerce,
investment in
American hncinpec anrl onmrnprnn
AmpHpnn business
q£-

a

today,

who buys most of the

or

"•"oney^I'm ttiose days and

4..

taking
saver

can

in

breath I hasten to add that

same

In

investment trusts,

a

know

to

jor

labor

In modern times

graduated
a

more

One point we can

sumers,

really been put to work.

have

to

our

tJ'-

•

savings,

for

been

does

need

little

through £i ?uccesslui. By tne same toKen,
he has an equal
right to vote
successive business cycles, to raise against this .hot
model.it he
its standard of living. Had it not doesn t like it and to spend his
^

i

one

Let us look a
at this concept.

and

production

crease

vention.
tend

identify

manufacturer, then

has

necessity,

to

.

demacratization

the

so,

capital

in which these savings are savings which I referred to eariler
is well illustrated by the fact that
made available to American inwhile
in
1935
only 3%
of the
dustry and other users of capital,
We have had what we might people made more than $8,000 to¬
call a democratization of savings, day 20% of American families
earn in excess of $8,000 annually.
That term expresses the fact that
Thus the rise of the American
millions of individuals are now
able to save money and actually middle class family has broad¬
ened the number of investors in
are saving and thus providing
capital for our continued economic American industry and provided
much greater capital for the pro¬
progress. Much of the savings of
the American family today is duction of better houses, roads,
made available to the users of schools and factories—just as the
capital through financial institu- rise of the American middle class
tions, or financial intermediaries, family has doubled and tripled
the market for the products of
as the economists refer to organizations like savings and loan as- American industry.
sociations, life insurance comCharacteristics of Savers
panes, pension funds and mutual

,

than

rather

want

now

or

yourself with.

Even

providing

economic progress.

America's

way

the American consumer ought to
from
Savings and America
have this right.
It is much like the wealthy individuals, and (2)
The cause and effect relation- the right to vote.
foreign Investors. Factual data is
ship between savings and a high
If the consumer likes the highly
hard to come by, but we do know
j>ta.kmrd of living is especially stylized, multi - colored, roomy, that European capital, principally
vivid in America There arc three
chromey, "souped-up" and expen- -Enelish, built the first American
things
that, made
this country
sive automobile turned out by a railroads. In 1914 private foreign
great: (1) Natural resources, (2)
•m
investmentsbillion-quite a States
in the United 'bit of
an
abundant and efficient _iapor certain Detroit
etiiticnt labor he
cagt hig dbUar baUotg for
supply, and (3) savings. These
car an(j make its manufacturhave enabled our nation to in- "^.Vrairfur'Bv the^alne'token"
a

claim

to refute the

the heading "the
thesis"
during the
economists who wouldn't

under

vanced

job to figure out ways to

I would like

well say, no
recession.
strength
al-

over-saving

businessmen
savings that

induce reluctant consumers
to part with their funds; and advises savings institutions they
too will have to continue to compete for the consumer's dollar.
The League official contrasts today's "democratization of sav¬
ings" with past channels of savings flow to American industry
and users of capital; traces the growth of institutionalization
of savings and investment which he shows has replaced direct
investments in securities as the important source of external
finance capital; and refutes the over-savings thesis.

it is their

has

case

though I cannot give them credit
for originating tne idea because
the
same
sentiments
were
ad-

Chicago, 111.

League,

might

They

wonder we have a

NORMAN STRUNK*

By

Executive

1957.

year

the

in

than

Growth

Of American

is 20% greater
first six months of

this

of

in

factor

a

for

in

crease

The Seczet

Savings

a

Thursday, September 11,1958

...

(1012)

12

auto- savings accounts and buy more of
mobiles, appliances and other dur- your products
by1&?«X, and ExA«n»oC.r^s"o*nd
ables and h?.S been saving hlS
There have been'some very sig- N^W debts ?n?Jrred excluded.
SUIPer stopped buying new

three

boom

point. Take the
years 1926-192H (during the
of the great stock market
prior to the great depres-

make

my

Continued

on

page

20

Volume 188

Number 5776

.

.

.

The Commercial and Financial Chronicle

(1013)

Economic Complacency Is Not

Current Economic Trends
And Savings

Banking

government

quickness

Executive Vice-President,
Association

Savings

bankers
of

continuance

compel

of Mutual

forewarned

are

turnaround

recent

their

in

market

like

that

economist

capital

the

yields

less,

almost paradoxical,

as

some

current

inventory liquidation slowdown

business upturn which he

a

an

year

were

few

ago

forecasting

traction

that

as

oped,
past

business

a

and

soon

which

economists
con¬

deep

as

subsequently

as

devel-

This

were

an¬

ticipating
turn

as

1 y

of $2.2

up¬

of

quick-

and.

1958;
the

slowed

$8
second
quarter,
net accumulation
to

billion in the third quarter
The

1957.

shift from

as

a

it

net

of

effect

accumulation

to

dation of inventories

was

that which

draw several billion

dollars

as

appears

of

nomic

ysis

eco¬

analy-

Current indications

ventory liquidation
Grover

sharpened t o
the
point
business

Ensley

turning points in

be

can

W.

foreseen.

Accu¬

analysis of current economic

term

and

trends,

underlying

and

their

long-

implica¬

tions for business and finance are,
perhaps, all that should be ex¬

from

pected

economists.

analysis of current

Even

business

ditions, unfortunately, is
sophisticated and refined
might
the

be

business
•

of

indicators

found

as

one

current

eco¬

generally to
economists and

are

among

leaders.

Today, such differences

be

as

and differences about

nope,

implications

nomic

con¬

not

centered

of whether

less
or

the

on

not

we

seem

to

question

are

in

fact

ation

and

and

underlying

financial

The

economic

trends.

Signs of Economic Upturn

The signals that an
end was
coming to the deepest downturn
of the postwar period first began
to
be
flashed last May.
Since
then the evidence of upturn has
been
considerably strengthened.
Industrial production advanced in
July to 133% of the 1947-49 aver¬
age, 6% above the April low, and
probably rose further in August.
In

the

consumer

durable

goods

retail

sales

rise in
49

further

brings

advance

(that is,

output in
July index of 114,

less than the
1947-49)

than

17%.

In

a

rise of

nondurable

to

a

more

goods

industries, gains in output have
been
In

uninterrupted
large

part,

production from
.

*An

65th

address
Annual

Association
N.

H.,

of

Sept. 6,

since

the

our

April.

increased

nation's fac-

by Dr. Ensley before the
Convention

Maine,

.

of

Savings

Dixville

1958.




Notch,

call attention to
cent economic

unemployment
sons,
mer

the fact that

cession.

at

5

million

1957.

Even

per¬
sum¬

when

we

regain pre-recession levels of out¬
put

—

and there is

considerable

disagreement as to when this will
happen — we will still have a
troublesome unemployment prob¬
lem.

For the fact is that

our

pro¬

ductivity has increased, as* has our
labor force, and just to get output
back to where

we

were a

year ago

is

we

Inflationary

have

series

been

of

being
just

are

threat of

seem

engendered

by a
events, real and
including:
the
(1)

war

up defense

ol:

fears

re¬

recent

anticipated

or

at least

East

crisis;
budget

Fecteral

(2) an
deficit

$12 billion in the present
fiscal year; (3) price increases in
the steel and aluminum

the maintenance of
free

our

If

Recent actions taken
eral

Reserve

economic

The

industries;

to

by the Fed¬

raise

margin

economic

statesmanship than has

been evident in recent months.

ment expenditure authorizations—■

non-defense

during

the

will

gress

well

as

past
add

defense—•

as

session
to

of

the

stabilization problem.

events

mized.

are

Because of

pact of these authorizations, voted
an
environment of
recession,
will not be felt until late 1958 and

Yet

the

not

to

be

realities

mini¬
of

task of
complicated.

an

over-estimation

For, in

the

of

their

im¬

real sense, it
is almost paradoxical to
speak of
a

very

inflation in the face of

in¬

excess

dustrial

capacity, widespread
employment, and markedly

debt

ury

un¬

in¬

management

Praises Resistance to Tax Cut

present economic situation suggest

In

contrast, and retrospectively,
statesmanship shown

the economic

by

Federal

our

Government

.

borrowers.

to

resisting

for

pressure

premature

tax

for

nonferous

fraternity,

of

such

basic

as agricultural
crops,
metals, and petroleum.
Further, while prices at the con¬

level did not soften during

sumer

the

recession,

mainly because of
increases in food prices, prices at
the wholesale level, particularly

substantially

raw

materials, dropped
and

are

order.
in

Without

manufactured

prices

are

large
goods
on

of

ever,

prices has occurred in

which

are

most

raw

mate¬

subject

policy to active
was

criticism from

price

rials,

ojjer oj securities jar sale

or a

other.

ease

basic

reversal

during the

to

the

In

one

quarter

on

page

an

ojjer to buy securities.

September 10, 1958

$35,000,000

Corporation

Mortgage Pipe Line Bonds, 55/s% Series due 1978

Price 99%
plus accrued interest from September 1, 1958

Copies oj the prospectus

may be obtained Jtorn such oj the undersigned {who are among
the underwriters named in the prospectus) as may legally offer
these securities under applicable securities laws.

ing, restricted by credit stringency
in

preceding years, has strength¬
ened, and the volume o£ housing
started this
an

summer

annual

Perhaps

the

rate

has increased

of

major

close

to

factor

tending downward is business

is

slowing, however, and
a downward
pull

the economy.

r,

Kuhn, Loeb & Co.

ex¬

will exert less of
on

The First Boston Corporation

still

penditures
for new plant
and
equipment. Expectations are that
such capital spending, which fell
more than $5 billion between the
third quarter of 1957' and the first
quarter of this year, will fall an¬
other $2 billion through the third
quarter of the year. The rate of
decline

Dillon, Read & Co. Inc.

1.2

.

Blyth & Co., Inc.

Eastman Dillon, Union Securities & Co.
I

Glore, Forgan & Co.

/

Goldman, Sachs & Co. Harriman Ripley & Co. Kidder, Peabody& Co. LazardFreres&Co.
Incorporated

Lehman Brothers

Merrill Lynch, Pierce, Fenner & Smith

Stone & Webster Securities Corporation

or an¬

my

Continued

to

|

Texas Eastern Transmission

eco¬

judgment, they are
given too much credit or blame, as
the case may be, for the state of

solicitation oj

New Issue

cycle,

Our money managers have an
unusually difficult and responsible
task to perform,
generally under

how¬

has apparently hindered a
readjustment to the lower
levels of output and demand. The
fact that the major correction in

monetary

the

over

nomic turnaround.

which

"administered,"

credits policy

recession

of

area

high

demands, the threat

inflationary rise, and the

salutary, of
if there had been, price
adjustments at all levels during
The

of

judgment, has been sound.
Credit stringency
during the 195657 expansion tended to reduce the

It would have been

recession.

indeed,

in my

course,

the

was,

Had the Government
given

these

Similarly,

and

well

now

to

of inflation would be
greater than
it is, now.

below earlier peak levels.

hous¬

cuts

commodities

output

t

Demand

—

both the Executive and the
Legis¬
lative branches — in

from both business and labor lead¬
ers, not to mention the economic

creased

factory level of economic activity.

First

Con¬

economic

in

re¬

inflationary implications of

these

in

high in August 2957.
Increased
expenditures by consumers have
been made possible by their ris¬
ing incomes, which, by July, had
surpassed the pre-recession level
and probably rose to new record
highs in August,
The renewed strength in con¬
struction and particularly in the
housing market has been one of
the brightest spots in the recent
economic
revival.
Reflecting in
part the liberalization of Federal
mortgage programs in early
spring, and the decline in interest
rates on competitive investments,
mortgage money has become read¬
ily available on attractive terms

and

political society it is essential that
both
"big
business"
and
"big
labor" exert a
higher degree of

quirements
and
the. rediscount
rate, as well as their sale of early 1959 in an environment of
Treasury bills in the open mar¬ economic expansion. The problems
of combating inflation
ket, may have reinforced fears of
will, there¬
fore, be aggravated and the Treasinflation.

industrial

an

to

are

the delays inherent in
(4) the rapid rise in stock'
executing
prices and decline in bond prices. large Federal programs, the im¬
and

will scarcely return us to a satis¬

This announcement is not

high

a

we

Also increased Federal Govern¬

spending in connection

Near

tor in

cost-price structure.
maintain

stepped-

some

gains have still left pact.

twice the level in the
of

re¬

it

as

store
sale, close to the previous record

million units, from little over 900
thousand in late winter.

97

perhaps most important to

even

department

greatest, the upturn has been par¬
ticularly impressive from an April
of

now

question for the

a

future;

emerging from nine months of

July to 140% of the 1947from 130 in June, and

indicated

to

average

raised

average

sector where the decline had been

low

longer-term

to

market
forces, can hardly'
considered coincidental.
The
rigid wage structure, reinforced in
be

have

stable at a high
level since spring, sales at
de¬
partment stores have increased
markedly in recent weeks.
The

of

inflationary pressures.
Analysis of these questions is es¬
sential for all of us in savings
banking.
Intelligent, progressive
savings bank policy can hardly
be formulated today without ap¬
praising the current business situ¬

It is

will

generally

question

of renewed

been

that liquidation

overall

While

been

This is not just

years

As a nation we cannot afford,
year is out. When business begins therefore, to be content with just
to rebuild its inventories in 1959, getting back to where we were in
some
previous period. Economic
further increases
in
production
progress is achieved only through
may be expected.
Meanwhile, other major meas¬ economic growth. The loss already
sustained in the recent recession
ures
of aggregate economic
ac¬
tivity have risen from earlier from under-utilization of our hu¬
man
and material resources runs
spring lows. Consumer expen¬
ditures, which were well main¬ into the billions of dollars.
tained throughout the recession,
have
been
rising this summer.

August

this

five

to

probably stop entirely before the

a
vigorous, sustained,
turnaround, as ori the

not

four

Inflation

business

or

that in¬

some

Economic Growth

rate and

witnessing

whether

still

ago, and still well below the peak
1955 volume.

cut

the

turnaround has within it the seeds

are

has

levels, and

ste^l production is

about half of the second quar¬

to

ter

where short-run

conditions

services,

period of recession.

been

rate

from

output of goods
accounting for the
largest part of the entire decline
in economic activity during
the

and

have not

yet

to with¬

the nation's total

now

underway.
Clearly, the
tools

this

liqui¬

broadly-based

than $15

more than 60%
of capacity.
housing, it is important while
viewing recent gains, not to over¬
look the fact that we are scarcely
back to the level of production

tory liquidation. Such liquidation
had been proceeding at an annual
rate of $9.5 billion in the first

compared with

a n

economic

well iDelow earlier

reached

in

more

little

slowing down of business inven¬

billion

pre-reces¬

In

tories and mines bas reflected the

quarter of

spring

few

regaining

the

expected

the rate of

growth without inflation.
A

we

a

free

surrendering to the
of inflation,
principally of part by the strength of organized
persistent, creeping variety. labor, has also, been a
major fac¬

forces

with the

are

*•

achieve economic

can

many

quarter of 1957; corporate profits

encouraging sign of

the quickness in business reversal; deplores
growth loss due to under-utilization of our human
we

that

billion under the level of the third

hopes will not be discouraged

and trusts

U

product is probably

in the

Finds surprising

and material resources;

the

question is whether
achieve economic growth

Industrial production is still 10
percentage points or so below the
peak of last August; gross national

of the infla¬
sees

than

travel before

by too rapidly rising interest rate before it gets fully underway.
economic

turnaround

basic

can

without

sion levels.

The former Congressional staff economist dismisses

exaggerated, and

as

the
has

fairly prolonged
before upturn.
Nonethe¬
still have a fair distance to

bottom

a

tionary outlook views currently manifested, and

V

a

expected, with

suitable investment outlets to choosing from among competing
investment opportunities in line with such a financial trend

change.

of the

True,

surprising; so far the shape
of this cycle begins to look more

careful le-examination of portfolio policies in
months ahead. This is said to involve a shift from finding

may

leaders.

been

Savings Banks

by

we

.Notwithstanding the many plus
signs on the economic scene, this
is hardly a time for
complacency
among
business,
financial
and

By DR. GROVER VV. ENSLEY*

National

The

Justified

;

13

White, Weld & Co.

Smith, Barney & Co.
Dean Witter & Co.

24

Financial Chronicle

The Commercial and

Thursday, September 11,1958

...

(1014)

14:

the construction and en¬

includes

penditures

The Security

ernization

Rocketdyne research specialist
in advanced development of

instruments for industrial
measurement and control, and a
completely integrated
group of

sion

and

missiles

guided

divisions are headed by

Tel Division which has
developed a broad line of preci¬
Kin

rocket

en¬

Boston

&

contract basis.

Financially sound,

assets are

finds

objective of freedom, in face of

appalling

our

inability to recruit best business brains for

public service, and warns there "is no economic Fortress
America, any more than there is an impregnable>. military
Fortress America." States role of management in our society

life,

success or failure of the free way of
hkve known, -it* which is said to be in jeopardy, at'

well determine the

may

Corp.; A.'.
Allyn & Co., Inc.; Bear, Stearns

as we

this moment.
It would be

,

nice,

as

well

as

ut¬

Corporation,
Hemphill,
Noyes
& ; Co.;
grown to $5,428,093 with a net in¬ Co.;
change,
research,
and Volkers & Schaffers, Inc. hav¬
Hornblower & Weeks; W. E. Hutcome of $190,177.
marketing
ing a major product line in vacu¬
ton & Co.; Ladenburg, Thalmann
The
outlook for 1958 is very
and
sales
um
tube voltmeters and ampli¬
& Co.; Lee Higginson Corp.; Carl
could
be
fiers, specializing in measurement bright, with sales estimated to be M.
Loeb, Rhoades & Co.; F. S.
over
$9 million, an increase of
quickly con¬
and control of extremely small AC
Moseley & Co.; Paine, Webber, ■ verted
into
and DC currents. These are all almost 80% over last year, and net
Jackson & Curtis; Reynolds & Co.; J
income should be close to equal¬
ready
pana¬
precise indicating instruments of
Salomon Bros. & Hutzler; Wertceas
ing the percentage gain.
by the
General Dynamics.

development,

April 1958, Massa Labora¬
tories,
Inc. of
Boston (Massa¬
chusetts) became the third com¬

Shares

In

in

to be acquired - by Cohu
Electronics, now operated as the
Massa Division. This division

pany

of

the

traded

company

nationally, consist of 1,100,000
Class A common. The
1957-1958

Dean Witter Offers

Creation of

the Naval

with

formerly

Kafitz

H.

P.

Dr.

by

opera¬

and
desirable personnel.
Cash dividends are looked for in
the future. Presently the company

,

In

addition,

of Cohu

was

Research Division

a

formed to assist the

outstanding staff of scientists and

engineers.

Martin

Dr.

L.

Klein,

formerly

noted research authority

and manufacturing facilities, thus

any

It

1958.

excellent oppor¬
tunity for investing venture capi¬
presenting
in

tal

an

the

electronics

growing

in

.

..

of $350,000,000 Sears,

Goldman, Sachs & Co.—Halsey, Stuart & Co. Inc.—
Lehman Brothers Head Underwriting Group
The largest

underwritten public

debt secu¬
made yester¬

offering

of corporate

rities

record

on

was

(Sept. 10) on behalf of the
world's largest retailer of general
day

selling to banks and to Sears Roe¬
buck

which consisted
of $350,000,000 Sears, Roebuck &
Co. 4%% sinking fund debentures

of

The offering,

due

Acceptance

executed

Lehman Brothers headed the

347

member

were

which under¬
The debentures

group

wrote the offering.

priced at 100% and accrued

positive,

say

does

not

sents.

Any amounts needed to

construction

1958

complete

obtained

by

will

short-term

and if

we

bank

.

As

are

strengthen. and

respectful of the rights of others,
we advocate the right of freedom
for all and recall what Mr. Justice

nation j

choice

of truth is

get itself accepted in the competi¬
tion
of
the
market." We must

The

issue is

the

sole

long-term
debt of Sears and represents the
first public debt financing by the
company
since 1920.
The
other Sears capital security

standing

is

only
out¬

stock,

common

of

which 75,070,473 shares were out¬

standing at June 30.
From the net proceeds from the
sale of
make

the debentures
an

additional

Sears

capital

will
con¬

tribution

of
$50,000,000
to
its
wholly-owned subsidiary, Allstate

Insurance
its

Company,

subsidiaries

is

which

with

engaged in the

automobile, fire casualty and life
insurance business.

The balance of the proceeds will
be

retained

by

ing capital and

Sears as work¬
used in the first




the first quarter of 1959
purpose of repaying the
bank loans which mature April 1,
1959 and to provide the necessary
in

the

for

for construction.

funds

nature

such

of

The exact

financing will be

determined
at

by market conditions
time.
The company does

the

not

to

expect

now

sell

common

Burden
struggle "-for

has come the heavy

us

is

operative

in

The company

1965

Washington. Its present properties

designed to retire at least

include those of the former Seat¬

80% of the issue prior to maturity.

outgrowth

Sears,

of

an

enter¬

prise established in 1886, has net
assets of more than $1,200,000,000.
sales

totaled
come

other

and

revenues

$3,608,200,000 and net in¬
$161,000,000 in the fiscal

ended Jan. 31, 1958. It op¬
erated, at June 30 last, 725 retail

year

stores,

818

catalog

sales offices
through¬

tle

Gas

and

Co.

Washington Gas

& Electric Co. which were

in

November

operations

the
were

of

converted

merged

late

In

1955.

the

1956

company

manufac¬

from

tured gas to natural gas

and since

spch conversion the company has
been engaged in the development
and

unthinkable,

expansion of its natural gas

business.

unreal¬

totally

and

mail order plants

Since

the

only

people,
shall respond, to

cnoice

then, is how we

as

a

50%

of the voting-

stock, and Walton's Sears Limited,
in which Sears holds a 23% voting
interest.
The
gram

dividends
on

the

expansion

next

few

pro¬
years

on

of

April 9, 1956. Stock
4%

each

were

paid

terests
extent

entitled
were

to

fractional

paid in

the best that has been put upon us.

to

part of the world dominated
international communism.;
is no
ass u r a nee' that,.

.

blandly and effortlessly, freedom

I

cannot

.

.

z

the. Answer?

withhold

Makes

feeling

my

Three

Basic

Points

no
other
I should like in this connection
large- or ac¬ to make three basic points:
quires
such
importance».as- the
(1) The Soviet challenge is not
basic
question of whether, man,
simply - inter-governmental
dif¬
can
save
and enhance the free¬
ference of opinion. This is a chal¬
doms which are at once„ pur her¬
lenge between two total ways of
itage from the past and our trust
life, involving not alone the mili¬
for the future.
tary capacity of each country, to¬
Furthermore,
we
must
have gether with its allies, but the total
clearly in mind that the benefi-. political and economic capacity of
ciaries of this trust are not. alone each country.
.
/.

this

on

canvas,

looms

problem

the American

•

so

people but all peo¬

No longer are Americans
preferred position of im¬
munity—if this ever in fact was
ples.
in

a

the

case.

A

threat

to

freedom

sketched
in
words which bear repetition here:
lem

was

"There

recently

is

no

contemporary

in¬

the

words. Free¬

somehow will survive.

Management

Has

*An

cash

of such interests.

mince

not

us

is under all-out assault from

There

common

May 3, 1957 and June 26, 1958.

Holders

company's

for

stock held

Let

by

merger

company

company owns

Baghdad to know that
the power of thought is denied
expression wherever intimidation,
distortion, subversion or. violencecan
be employed to displace and,
deny-competition. K, - v
/and

that

Our

anywhere is a threat to us.
The
with Seattle extinction of freedom elsewhere
out
the
United
States.
Retail
Gas Co. on Nov. 1, 1955 the com¬
cannot leave us wholly free. The
stores are also operated in Cuba,
pany paid a cash dividend of 10c
extinction
of
freedom
every¬
Central America and South Amer¬
per share on Jan. 2, 1956, and a
where else would inevitably end
ica
by
subsidiaries;
and
retail dividend on
May 15, 1956, of one our own freedom or catapult us
store and mail order businesses
share of common stock of Pacific
into a war which would imperil
are
conducted
in
Canada
and
Northwest Pipeline Corp. (market
all mankind—or both!
Australia by, respectively, Simp¬
value $27,625 per share) for each
sons-Sears Limited, of which the
The broad outline of this prob¬
70
shares
of
and 11

recall Buda¬

ism. We need only to

pest

dom

istic.

that

stock in 1959.

own";

our

principles and standards; yet we,
must not lose sight-of the realistic
of
relentlessness of/the competition
sustaining
the
man's freedom, to lead free peo- * between freedom and totalitarian¬

To

pies everywhere. We did not seek •
this responsibility.
Neither did
presently expects
we
choose the circumstances by
to spend approximately $5;000,000i
which this came, about.y&o^we
on
construction in 1959, also in
must be realistic.
To choose any
anticipation of new business. It
position or policy that would lead *
now
appears that additional per¬
us into a deluded effort to.retreat
manent financing will be neces¬
from the world would be blind,,
sary

adhere^ to

steadfastly

we
position we occupy.

in the

said: "The best test
the power of thought to

Holmes once

V;^'
hdvie^ ho: real

.

a

to pre¬

make real

that American repre¬

dream

~

do

to

expect

the

re3popsibilitywand

opportunity
which awaits
of you, if—if our nation is

serve,

Puget Sound area in the State of

becomes

J

butL

negative,

not

idea

peace

or

survive

to

The sinking fund of the deben¬

Net

interest.

its installment

tomers.

&

Co., Halsey, Stuart & Co. Inc.

contracts

and ruin wherever it has been

tried—an

known

each

is engaged in the
distribution of gas at retail in the

and

and

by

portion

a

sales

imperial-;

an
idea
dynamic for
iwhich
neither sacrifices'
justice nor provokes aggression?";
of the:I am willing to take the chal-;
way
of
H. Rowak GaitfieV,'Jr. lenge of this thoughtful English-;
as
we :--v- ••'/ •:'/
:'

;

the

cus¬

tures

1,

Corp.

conditional

the

1983, was quickly
oversubscribed.
Goldman, Sachs
Aug.

the

repurchase of a
portion of installment receivables
previously sold by Sears.
The
company follows the practice of

merchandise—Sears, Roebuck and
Co.

for

instance

less anarchic than, the petty'
which
has 'brought!

war

The company

Roebuck & Go. Debentures Oversubscribed

political

less offensive than

nationalism

loans.

Record Offering

West?

the

Has

West produce a

the

ism,

rio limit to the -

further permanent financing

1958.

be

V

industry.

against

conspiracy

a

freedom.

Can

it.
V * man as our own. And it is against
this is to pub quickly: it that I would measure the role,
; -/•:. •;
ton Natural Gas Co. at $ 14.70 per and squarely what I believe to be of management. /
share.
We think of man's right to be
the true, Vbuter^osf/'Hbait^'of'i'ttie'';
as
one
of
the verities of
The net proceeds from the sale growing dimensions of manage¬ free
of the stock will be applied to the ment.
There is, in. other words, civilization.
As
men
of justice,,

further
announced
in
April
1$58. This is conserving cash, and should any partial payment of bank loans in¬
curred for construction purposes.
division is working hand in hand dividend be declared, it will prob¬
The company expects to spend
with the others on major con¬ ably be in stock.
tracts with the Navy Department
Consideration of the foregoing approximately $4,400,000 for con¬
Bureau
of Ships,
and the new facts show that Cohu Electronics, struction in 1958 of which approx¬
Convair Astronautics, a division of Inc. possesses a superior manage¬ imately $1,682,000 was expended
in the six months ended June 30,
General Dynamics
ment, combined with engineering

Ordnance Laboratory, was

is

answer

human

the

termine

success

tions,

match these needs.'
answer, but that '!

an

idea

Gas Common Stock I failure

•

records of profitable

with

East has

The

well de¬

Submarine

Military Projects

a

headed

adequate international.

no

machinery to

society

our

inay

.

Division

there is

anagement

free'
Dean Witter & Co., San Fran¬
plans for new financing.
divi¬
The
company's
future
plans, cisco, Calif., is offering publicly life,
an issue of 100,000 shares of com-/ have
expected to add at least however,
are
to
continue the
mon stock (par $10) of Washing—
To
Cohu's total sales volume. course of acquiring other firms

products used in Naval

20% to

J

Washington Natural

detection and warfare. This
is

^

Hailsham continues)

"But (Lord

;

.

ecor

boundaries.

tional

./The role of
in

price range is 6 low, 14 high, and
a
recent price of 1V>.
In 1957, a
gives Cohu a predominant place long-term 51/2% convertible de¬
benture was placed privately for
in sonar devices, underwat e r
sound equipment, and ultra-sonic $300,000 and there are no present

sion

words.

m

—

nomic, social, political, even mili¬
tary— do not transcend its na¬

of

alchemy

Co.

market

Over-the-Counter

the

Co.; and Dean Witter &

Britain's Lord

whose needs

Hailsham)

—

&

-

human society (said

foolish, to think that eco¬
nomic
conditions,
technological
terly

nick; Drexel & Co.; Hallgarten &

heim

and positive

purpose

larly at the managerial level. Traces significant areas of
management responsibility in the preservation of freedom,

&

Instrument

our

report"

"Gaither

the

national

all-pervasive Soviet threat, by all levels of society—particu¬

Securities

Co.; William Blair & Co.; Clark,
Dodge & Co.; Dominick & Domi-

Ford

advance

to

program

Co. Inc.;

American
C.

of

words in calling for

no

and

Foundation

Chairman
minces

Blyth & Co.,
Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Glore, Forgan & Co.;
Harriman Ripley & Co. Inc.; Kid¬
der, Peabody & Co.; Lazard Freres
& Co.; Merrill Lynch, Pierce, Fenner
&
Smith; Smith, Barney &
Co.; Stone & Webster Securities
Corp.; White, Weld & Co.; Wood,
Gundy & Co., Inc.

Cohu's total
approximately $5.3 mil¬
lion
with current assets of $3.9
million, and current liabilities of
hundreds of companies, govern¬
$1.9 million, leaving a working
ment and educational institutions.
capital of $2 million. Sales and
•The Millivac Division acquired
earnings have increased each year
in December 1957, is headquar¬
since 1954, at which time
sales
tered in Schenectady, New York.
stood at $664,424. For the year
It was formed by the merger of
ended
Dec. 31,
1957, sales had
Millivac

Foundation, N. Y. City

Chairman of the Trustees of the Ford

Corp.; Kuhn, Loeb & Co.;
Stanley & Co.; A. G.

Becker

industrial cus¬

military and

both

to

Morgan

developed by the Research Divi¬
sion will be placed on the market.

tomers on a

By II. IIOWAN GAITIIER, JR.*

ol'

Among the members of the un¬
derwriting group are: The First

gines, was called upon to head this
important division. During 1958,
several
basically new
products

equipment. Kin Tel
has pioneered in the development
of extremely stable, accurate and
reliable digital voltmeters and DC
amplifiers, The closed circuit tele¬
vision is now successfully used by
vision camera

replacement
amounted

$193,674,373.

broadcast tele¬ Also, consulting services have
been
provided
successfully for

closed circuit and

and

facilities

store

To American Management

of adding new '
improvement, mod¬

program

and of

stores

a

poration.
The five

tinuing

I Like Best

Electronics, Inc. a Delaware cor¬

the

Freedom and the Challenge

retail stores.
Ex¬
during the five years
ended Jan. 31, 1958 under the con¬
of

largement

Continued from page

address

Stanford

by Mr. Gaither before the

Business

Conference,

University, Stanford, Calif.

Stanford

(2) To grapple realistically
this

total defiance of

our

with

way

of

life, we must project the Soviet
challenge into the decades ahead,
and

certainly for a period of not

less than 15 to 20 years.

this

of

short

is

Anything
and

make-shift

make-believe.

Soviet

The

(3)

challenge

re¬

quires that we seek out and utilize
the best intelligence of American
management—and in turn puts on
management a national

bility

These
that

we

responsi¬

unparalleled dimension.

of

are

simple but hard facts

must

consider

the

lives—the

reckon

basic

issue

with

issue

as

of

of freedom.

Continued

on

we
our

This

page

28

Volume

188

Number 5776

.

.

.

The Commercial and Financial Chronicle

(1015)

seek < to
price
Congress has taken

we

The Ciisis in Railroading
By WAYNE A. JOHNSTON*

The

President, Illinois Central Railroad

mission

•

,

state

There is
in

ness

doubt about the railroad

no

industry's basic sound¬
Mr. Johnston's recapitulation of the recent legislative

He calls for:,

end to

an

fares,

power

over

intra¬

the good. Hereafter
get ICC approval for an
in
interstate
rates
or

won't

we

have

to

wait

so

long for approval at the state level.
Formerly we were up against the
fact there is

law setting a time
states in granting

no

limit

of transportation;

on

these

competitors" is ended.

alt subsidization

gives the Com¬

are to

we

increases.

the

For

example,

on

recent rate increase approved
the ICC, it took the railroads
a

the right of railroads to
diversify and offer complete transj;'portation service; and freedom of railroads to combine.

months
crease

to

on

tion has

by
eight
equivalent in¬

get an
intrastate rates in Mis¬

severely damaged the true

who brought a highly controversial
bill through to success in an elec¬

carriers and has also dis¬

common

rupted

making and intrastate
changes, and both these

increase

Transportation Act and elimination of the 3% freight tax,
the Illinois railroader
explains why he-believes the industry
can handle
people and products most economically providing

Act also

more

changes

recently passed

our

firm step in

rate

when

better and remaining deep-lying problems still to
After expressing gratefulness for the

the "combination of Uncle Sam and

new

service

turn for the

solved.

services.

our
a

the right direction.

the

orderly marketing of
products, particularly fresh fruits
and vegetables. Now
Congress has
spelled out that a true private car¬
rier

is

tion

Another

favorable

the Act is the

all

and

fisherman

produce

to

has

years

such

a

-has

been:;

made

and

V

t

.

a

by the banks*
by

the

railroads
the
,12 5
:

-y ears

e- a

peered

include

items

the

on

3 % I excise

:,

have

years

;

to

come

will
Wayne

take the place •
of'railroads as major

investment,

the

Johnston

A.

ties

Along

-

with

the1 Near

sources

of

of

billion

-

and

crisis,

On

mutual

.

Sputnik

East

the

dollars

now

railroads

take some time for the full bene-t

has

been

losing

set.my watch by that train every
day. We just couldn't give it up,"

appeals

and*"finally

District Court before

the

volume

Really superlative articles and ed¬
were

writers.
the

'

They studied: they got at

railroads.

proval.
fered

a

million dollars
run.

approximately two
on

that passenger

";

signed

to

-

A flood

of editorials called

Congress, to take its foot off
the neck of the railroads. We rail¬
upon

roaders

proud of the fact that

are

fully 99%
editorials

of all the articles and
were

tone.

Radio

lesser

but

and

pro-railroad
television

to

in
a

still

important degree
also told the story
effectively.
-

;;V

a

It enables

far

more

'

'

correct

long

an

"Rates of

held

privately-owned railroad
was

in

troyed. As
of

a

American

sys¬

danger of being des¬
result, many segments
life

became

ested in the problem.

inter¬

We had, for

example, enthusiastic support
from the banking
fraternity. Our

employes, and the employes of the
*An

address

by Mr. Johnston before
Banking, University of
Wisconsin, Madison, Wis., Sept. 2, 1958.

the

School

of




climate

to

a

a

back

particular

traffic

of

level

any
.

carrier shall

not

be

.

to

the

Commission

held

road

purchases

tenance purposes.
from

come

that

roads

raise

main¬

That

.

.

.".

means

are

needed

conditions.

help

certain

hard

funds

came

to

turned

the

inequalities that have
hampered the railroads in compet¬
ing with other modes of transpor¬
tation.

Now, there happens to be a
widespread impression that with
the

3%

Transportation Act

the

tax

eliminated

and

with

law,
problems of the railroads have

been solved.

now

On this point let-me

that

the railroads are ex¬
tremely grateful for all that has

say

been done.
The most important
single step in many years has been
taken toward restoring the rail¬
roads to the status of private com¬
panies competing in a free market
for business. We owe a tremend¬
ous

to

debt to Senator Smathers and

the

hard-working

an

offer

to

sell

the

Interstate

over

has

Compare the

on

tax

dollar.

waterways

carriers

has

Lakes

or

tation

on

the

on

gerial
not

decide

whether

rate is good or bad for the

business. All too often, the govern¬
ment has been deciding whether
a

rate

was

helpful

or

requesting it. The language
doesn't go that far in establishing

freedom,

there.

but

Some of the

regulation should

the

intent

which the

may

and in which the Prospectus
may

extensive

system
dredged

and

make

barge

Not

be lifted

as

.

*

locks

and

channels

that
pos¬

long ago

a

Vice-President

of Quaker Oats appeared at a Con-

Continued

an

offer

to

bu#

"

/

■::

share

to act as a dealer in securities

be legally distributed.

&

of

transportation

sible.

solicitation of

Dean Witter
September II, 1958

the

inland

Transpor¬

ocean.

dams

be obtained from the undersigned only in tb$

undersigned is qualified

is

heavy hand of

now

states in

by

our

growing by

without a golden flood of govern¬
ment money. Our competitors pay
not one red cent for. the use of the

not for the.

carrier

rate

Copies of the Prospectus

been

inland waterways is
another matter. It could not exist

to

discretion
a

built
on

our

regulate rates. In ef¬
fect it says to the ICC, let mana¬
or

rail¬

because
water
transportation is
cheap transportation. Water trans¬
portation is cheap transportation
when it takes place on the Great

di¬

per

of

Some folks be¬
lieve this growth has taken place

(Par value $10 per share)

$14-70

network

leaps and bounds.

-

Price

public

through,

reduced trans¬

Traffic

Common Stock

place greater em¬
.competition between

again

facilities

enormous

Washington Natural Gas Company

Commission to

American

and

100,000 Shares

Commerce

400,000

roads built by the savings of six.
generations of Americans with the

New Issue

;

and

portation charges.

these securities. The offering is made only by the Prospectus
:
f
•
•"
""
;

quarter-million

line

grants, and the
grants has been re¬

the

charter taxes

legislators

nor a

a

land

to

and

over

My feeling is that this privilage
will not be used extensively. For
the Illinois Central, for
example,
it has little application. If it can
help some roads to get back on
equal keel, well and good. Of far

the

from

value of those

reasonable

rates through regular channels.

move

carriage
quarter of the

accused of having received
property as a result of land
grants, but only 8% of the total
mileage
of
American
railroads

Its

greater value, however, is the de¬
sire Congress has shown to re¬

drawn

our

rail¬

pressed

at

-

main

-

Congress

com¬

often

The funds must

loan

to

of

traffic of any other mode of trans¬

portation

truck

miles of all types of trackage was
built by private funds.
We are

private lenders under

strict

is

and

system of

miles

up

particular level to protect the

our

first

of

to

give-away.

nineteenth century? The big dif¬
ference is that our American rail¬

to

improvements,

equipment

the

'

other
." Let
"Rates

of

horse

a

in

.

in

use

carrier shall not be

a

the

phasis

tem

to operate

of

rected

public to the fact that

us

transportation
repeat that sentence.

me

of

a

to

up

protect
mode

easy-to-understand terms, was in¬
strumental in
awakening the
its

.
"

against

It extends

emergency measure.

authority

This advertisement is neither

favorable

are

the total cost of the railroads since
the days the Tom Thumb raced

-

loan provision is in the nature of

regulation.
Its most significant
statement, I think, is this one:

information, relayed in

American

"

ognition of the plight of the rail¬
roads.

.

This

place at the

existing
inequalities in regulation, but the

rather

In the meantime, we suf¬
loss of

The Act represents official rec¬

but in national maga¬

newspapers

zines.

Well

As

bankers will find .particularly; petitors a new national highway
interesting is the loan measure, system that will cost as much as

.

of the

source

problems facing
documented
articles appeared with greater and
greater frequency, not only in the

the

still further action.

written by top-notch

aid.

the victims of the

we are

age of government

strict definition.

more

a

,

itorials

transportation that

government

other segments of American

some

you

purpose

ap¬

.Greater ICC Authority
panies, because of the absence of:, v;
tax on f r e i g h t moved in
Congress has now recognized
was sharply cut
starting last fall, company-owned yehicles, h av e, that state authorities have injured
we were
in trouble:*As a result been encouraged to acquire
fleets, the economic health of the rail¬
of the hearings before the Senate
of,', trucks and barges in recent, roads in forcing them to maintain
Subcommittee headed by Senator years. Now this trend should be. trains no
longer used by the pub¬
George A. Smathers of Florida reversed, because we common car¬ lic..; The new Act gives the Com¬
early this year, ana thenof the riers will be free of. the" 3%;. mission
authority to discontinue
avalanche of stories and articles handicap.«
trains where the public
•j.
,;
...
clearly has
on
the subject"1: ever
One of the most wicked aspects; shown; it no longer wants to use
since, ' the
American public as never before of the excise tax was that it was such
trains, and this again is a
is aware of what has well been a
multiple tax, collected again and step in the right direction.
called "the
deteriorating railroad again as a product moved from its
Another valuable change is the
situation."
i; original state through the various blow the new Act strikes
against
stages of manufacture and distri¬ illegal
private carriers. Truly pri¬
"On Verge of Bankruptcy"
bution.
In
other
words, it in¬ vate carriage is not "for hire" car¬
creased
; v In this crisis in which some of
transportation costs far riage but instead is the movement
the largest railroads in the coun¬ more than the original 3%.
of freight in vehicles owned
by a
try were on the verge of bank¬
company shipping its own prod¬
New Transportation Act
ruptcy, the railroads learned that
ucts. But many truckers, by buy¬
Allow me to briefly fill you in
they had friends—real friends. On
ing a commodity at one end and
the significance
occasion all of us in business think on
of the new
selling it at the other, have evaded
of the newspapers as
Transportation Act. No question
being hardregulation. They have escaped
boiled and sometimes darned in¬ about it, passage of the Act was
paying the transportation tax, and
accurate, especially after we feel one of the outstanding achieve¬ they have escaped tariff restric¬
we've been misquoted. But I want ments of the 85th Congress. Prob¬
tions. This type of gypsy opera¬
to pay tribute to the way the news¬ ably just as important for the car¬
riers and the public is the fact that
men of America covered the
story
of the railroads month after month. Congress has also taken steps for
when

receive

country in various

A provision of the Act which

,

got

we

any

and

other modes of

common carriers will ben¬

efit from

Federal

the

fits to become evident. Many com-'

industry;

Well, the fact is, most of the deeplying problems of the industry still

V Do you realize that the present
federal highway program will

that,

year we

very much have been in the news
all year long. It has been a
year
of crisis. Railroads are a volume

wonder—just

what do the railroads
expect? Th&
world
with a fence around it?

Again,

train

annual' train between Louisville and Ful¬

hearly six m i 11 i o n dollars: in-:
freight taxes for the government.,
The tax repeal will have an im¬
mediate good effect, both psycho-;
logical and actual, although it will;,

,

Competition

line

ton, Ky.
It took 28 months of
;y.
Central, for ex-: hearings before the state commis¬
collected- sion, the circuit court, the court of

<

the Illinois

ample, last

in

bases

business,

publicRecently we succeeded in re¬
nearly a- moving a: round-trip passenger

of

the

stages of processing and distribu¬
tion, all under the exempt label.

American

be relieved

freight taxes.

need and interest nonetheless still
remain strong between railroads

and banking.

half

that

with

month of Sundays to get govern¬
ment approval to remove a branch
a

That meant that

now

a

to be faced.
Take, for ex¬
ample, the tremendous burden the
railroads carry in
competing with

guarantee private loans to rail¬
roads up to a ceiling of $500 mil¬
lion
for capital

more

on

hit

run

like

more

ballgame than

have

The other parts of the Act are de¬

ments.

other;
giant enter-^

recent

tax

the

across

freight ship¬
is the kind of argument we hear.
on Aug. 1,
for the first time since 1942, com¬ But when we ask the protestants
mon carriers were free of the tax: how
they traveled in coming to
which all these years private car¬ the hearing, they invariably
riers have not had to pay. It also: answer: "Oh, we drove over."

j

If

prises in

probably know, it takes

meant

p-

Am erican
scene.

As you

outpouring of

passed, Congress had repealed the

since the Iron;
Hors

result of this

a

made it law by affixing his signa¬ money for years.
Local pride is
ture on August 12.
always deeply hurt when we try
V
"Even before that legislation was-, to remove these trains. * "Why, I

in

than

more

X As

home

is
a

Some of you may

to

do

we

sentiment, Congress late in July
passed the Transportation Act of
1958, and President- Eisenhower

great deal lost •'
and

firms with which

many

done

Subsidized

primary

to

grown

has

loaded.

markets free from regulation. But
the list of
exempt products over:

the

industrial traffic men, our
list of people to
are indebted is a
long

successful bunt in

stop sign Congress

farmers
their

I

com¬

we

that

agricultural exemption clause. The
original intent of Congress was to
haul

newspapermen

But I want to emphasize that

one.

provision of

has raised against the
ever-grow¬
ing list of commodities under the

allow

Tne

employes—the
whom

as
processed
foods,
sissippi,'.twelve months in Ken¬ frozen fruits and
vegetables, im¬
tucky and fourteen months in ported coffee, tea and
business, wrote, thousands of let-,
bananas,
Tennessee.
And mind you, these and
processed fish. Some of these
giant* ters, to Congress, expressing their,
enterprises. A great deal of money views in their own words.
items were trucked back and forth
'
: ; delays were not exceptional.

S'i.. Railroads and banking since the
first quarter of the 19th Century
have-been- closely linked iii

mentioned, chambers of

merce,

primary busi¬
is other than
transportation.

ness

year.

have

whose

one

15

Co.

on

page

31

Financial Chronicle

The Commercial and

16

11,1958

Thursday, September

.. .

(1016)

Champion Spark Plug

THE MARKET... AND YOU

Common Stock Offered

Notes

NSTA

Co.

Plug

Spark

available

is

STREETE

By WALLACE

made

being

today

public

the

to

Champion

of

stock

Common

11) for the first time in
company's 48-year histoiy.

(Sept.
the

underwriting group headed

An

high this week

$27 and react so

■

the

Boston

First

Corporation,

eficiaries

the

E.

John

iCn3o"

Edward

mihin

correctly identified.

are

members crafts and

certain

and

other
no

selling

proceeds

the company. R. A.
Sr., is Chairman of
Champion, F. D. Stranahan, CoChairman.
The
827,400
shares

will

go to
Stranahan,

Hardy

ASSOCIATION
National Security Traders
Association has presented the following slate of officers for 1959,
to be voted upon at the annual Convention to be held Sept. 20Oct. 2 at the Broadmoor Hotel, Colorado Springs:

NATIONAL SECURITY TRADERS
The

as

stockholders,

pictures

the

well

as

We

Drexel & Co.

herewith

which

of

A. Stranahan, Sr.
shown
and Frank D. Stranahan families,

photograph of John

Knob,

give

Rails

were

also

*

neglected to

Nominating Committee of the

represented

offered

being

elsewhere.

securities

or

that

The

proaching

Favored

the

of

appearance

were

shares of the Big Three
has no other equity
makers among the issues
funded debt. <;

plugs — devices which are re¬
quired in each cylinder of a spark
ignition internal combustion en¬
gine.
The company is the out¬
growth of a business founded in
1910
by the present Chairman

the

auto

cently

has

centered

It

on

Disney Story

individual sit¬

uation that had built up

good

support was Walt Disney

Pro¬

which

this

ductions

week's list of
defies

on

was

highs but

new

grouping in any
industrial

easy

standard

the

attributed in of

was

classifications. Its movie film

great part to the fact that the
work
seems to be trying

Headquarters
auto union
and principal manufacturing fa¬
reach
cilities are in Toledo, Ohio. Other to
Co-Chainnan.

the
speculative

low-priced,
shares.

re¬

congestion and
speedily.

A rather odd

with

section

in

est

any

cleaned up
The

auto

Champion is one of the world's momentary popularity was a
leading manufacturers
of spark change, since the only inter¬

and

secondary distributions

and in

much

Auto Giants

about

of

The company

oils which haven't
life even spo¬

ranged from five-figure
radically throughout the sus- bundles up to nearly a quarter
stained improvement that has million in Santa Fe at a clip.
been underway since late in So far, however, the offerings
have shown nothing ap¬
the spring.

the 6,064,860 common
outstanding on Aug. 20.

13.6%
shares

a

,

Robert

the

of
der

a

great extent in the runup
A sobering influ¬
The obvious omissions from ence was a rash of large block
The stock is being sold for the
both in listed trading
account of certain trusts, the ben¬ the strength roster were air- sales

inadvertently given un¬

was

827,400

of

share.

per

of Rubin Hardy of

name

be

to

registered

a

distribution

Philadelphia,

of

Association

making

Traders

Investment

the

of

secondary motors, chemicals, American
shares of
Telephone and assorted spe¬
the
company's 81%
par
value cialties.
common stock at a price of $28.50

for officers

nominees

the

of

could

$6-S7

around

at

scoot above

jointly by Hornblower &
Glore, Forgan & Co. and

giving the photographs

In

all-time

Weeks, with
rotating leadership that, violently seemed
Merrill
at times, included steels, strange impotence..
Lynch, Pierce, Fenner & Smith is
*
❖

ASSOCIATION OF PHILADELPHIA

INVESTMENT TRADERS

Industrial stocks drove for ing
a new

compromise in
contract
dispute with
a

shade

only

for

accounts
over a

a

third of total in¬

come. Other activities include
Detroit, their
Burling¬ the Big Three rather than pull its TV productions, publishing
ton, Iowa; Hellertown, Pa. and in
activities that range from
a strike that would complete¬
Canada and England. Subsidiaries
books
to
comic strips, the
also operate in France, Ireland, ly disrupt production of the

plants
are
situated at
Mich.; Cambridge, Ohio;

Australia
United

and

States

Mexico.
In the
Champion employs

1959

models.

Originally, the huge amusement park in Cali¬

long stalemate since the con¬
about 4,200 people.
tracts expired in the spring
The company has specialized in
was
taken to be a strategic
the manufacture of spark plugs
until new model
for use in a wide variety of ma¬ maneuver
ternal

coumbustion

Produced
of

Earl

Charles

Hagensieker

& Co., New

York.

Kelly, Carl M. Loeb, Rhoades

>

Vice-President:

Second

Bodie

Thorsen, Glore, Forgan & Co., Chicago.

First Vice-President: Edward J.

applications.

extensive

range-

Secretary: Earl L. Hagensieker, Keinholdt & Gardner, St. Louis.
Treasurer: Charles A.

each

Bodie, Stein Bros. & Boyce, Baltimore.

Nominating Committee are Edward R. Adams,
Co., Inc., Atlanta, Ga.; Edgar A. Christian
Suplee, Yeatman, Mosley Co., Inc., Philadelphia; Ralph C. Deppe,
Edward D. Jones & Co., St. Louis; Elmer W. Hammell, First
Securities Co. of Chicago; John C. Hecht, Jr., Dempsey-Tegeler
& Co., Los Angeles; Alfred F. Tisch, Fitzgerald & Co., New York*
and William J. Burke, May & Cannon, Inc., Boston, Chairman.

and

a

the famous Disney

on

must field.

strike would be

•',

*

❖

tion in

a

-i-

*

❖

•

The

❖

.

;■

Disney

quarter results posted a
steady uptrend un¬ 50% increase over a year ago.

dividend

of

30

cents

the

In

calendar

year

:'fi

$

The

per

share, payable Oct. 15, 1958
stockholders of record Oct. 1.

It all adds up, as

derway for months.

year

terly

chemical strength,

to which has been
as

fanciers

*

that

in

any

persistent
other major

as

1957

of the

are

far

as

Disney

concerned, to one

leading growth situa¬
But where

around.

tions

others in the

growth picture
of 20 to 30

command ratios

group, was featured by suc¬
times earnings, Disney until
Champion had net sales of $89,- cessive new
highs in Eastman
283,000 and net income of $13,its recent spurt was holding at
Kodak and good strength and
783,000, equal to $2.27 per common
a ratio of around 10-times. In
occasional new peak in
share.
In the six months ended an

With K. V. Spivey

Now With R. L. Ferman

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

1958 the company had others. Such heavy blue chip
of $43,480,000 and net
concentration helped offset
income
of
$7,381,000, equal to
the lack of quality leadership
$1.22
per
share,
compared to
$40,489,000 and $5,955,000, or 98 in recent weeks, although the
cents a share in the comparable
activity leaders on any given
1957 period.
Per-share earnings session still featured issues
are
based on the 6,064,860 com¬
that fall considerably short of
mon
shares outstanding on Aug.

June

net

Calif.—Russell F.

MIAMI, Fla.—Edwin R. Graham

with K. V. Spivey

is now with Robert L. Ferman &

& Co., 1732 Loma Vista.

licensing,

based

production was in full swing characters, and in the music

since 1919. The board
directors has declared a quar¬

of

Members of the

Clement A. Evans &

now

ties in merchandise

designs,

ably in each year since 1911 and
has paid dividends on the com¬
mon stock without interruption in

PASADENA,

$16 mil¬

its activi¬

Champion has operated profit¬ had shown the first interrup¬ June

Joseph E. Smith, Newburger & Co

Philadelphia.

Norman is

a

lion investment and

operation has
reported earnings
available from any single manu¬
The
steel popularity was increased
facturer. The company estimates
directly linked with the in¬ by some 700% in the last five
that about .90% of total gross sales;
dustry operating rate which years, some estimates of this
comes from the replacement mar¬
ket.
In
this
country
between hit a high point for the year year's results running as high
300,000 and 400,000 retail dealers this week after the holiday- as $4 million. It has shown it¬
handle Champion spark plugs.
shortened period last week self recession-resistant — the
lieved

President: Lester J.

an

materials and
the company's line is be¬ painful.
by it to be the broadest

types,

sizes,

in

fornia Which was

Company, Ainsley Building.

,

30,

sales

breaking out of its three-year
range the issue is still well
below a 15-times ratio and has
long way to go if it is to
anything near the
same ratio that other spectac¬

a

achieve

.

™P?Ug,aS Bark

SDGCfell to Tin<vFlNAWmAT. Chronicle)
(Special to The Financial f^ui?/YKrTr*T T'Y>'

LAKELAND, Fla.
Pace is

now

—

Samuel P.

with Douglas E. Bark

& Co., Vanity Fair Arcade.

Joins Smith, Barney & Co.
"
"

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.

William R. Gaynor

20, 1958.
—

Bill Andrews Inv. Opens

(Special to The Financial Chronicle)

MIAMI, Fla.—Rudolph T. Bard
is

now

with

&

Co.,

8340

Frank

L.

Edenfield

Northweast

SAN

Co., Inc., Russ Building.

Joins

Boyd Easton

National Co. Adds

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

OMAHA, Neb.—Rodlin E. Bun-

ROCKFORD, 111.—Ervin E. Ball
has become associated with Boyd

ney

J. Easton, Inc., 427 East

of

was

—

Second Louis A. Quan is with Waldron &

Avenue.

He

FRANCISCO, Calif.

State St.

formerly with Robert G.

Lewis & Co.




has been added to
the

Omaha,

Building.

National

First

the staff

Company

National

wild

gyrations

of

Bank

items

already

Apart from the issues
were where
ability to hold up earn¬

GROVES, Texas—Bill Andrews
provided by low-priced Artengaging in a securities busi¬
loom Carpet which had in¬
ness from offices at 1935 Ray Av¬
creased in price about four¬
enue under the firm name of Bill

is

With Waldron & Co.

(Special to The Financial Chronicle)

The

growth

show.

High Rail Leverage

Mystery in Artloom

is with Smith,

Barney & Co., Russ Building.

Frank Edenf ield Adds

being of investment grade.

ular

ings was

demonstrated, most

already has been dis¬
counted in the market price,
Andrews
Investments.
He was fold
through the summer and there was considerable hunt¬
formerly with FIF Management
in half a dozen recent sessions
Corp.
had backtracked to where it ing among the cyclical items
where not only have operat¬
was around two-thirds under
Bailey Adds to Staff
its peak. Various investiga¬ ing results been pared hard
(Special to The Financial Chronicle)
tions into this strange per¬ but where the whole of the
FRESNO, Calif.—Paul S. Bird, formance have yet to turn up
dreary story has yet to be told
Stanley S. Hildebrand and Arthur
any explanation for it all. This
W. Rutherford are now connected
such as Baltimore & Ohio
failure to uncover at least a
with
Bailey &
Company, 2303
few reasons why an issue sell¬ where six months results
Fresno Street.
of which

Volume

Number

188

5776

.

.

.

The Commercial and Financial Chronicle

(1017)
off

Were

earnings
.

by half. Full year
expected to be

are

far below the. 1957 and 1956
results but the line's indicated

-

dividend is well sheltered and
there is

Blyth-Dean Witter

refunded
with

Group Offers Standard
Oil Co. (Calif.) Debs.

however,

prior
at

less than

to

cannot

July* 1,

borrowed

money

purpose

high leverage factor
An offering of
$150,000,000 4%%
capitalization so that sinking fund debentures due*July
improvement in business gen¬ I,. 1983 of Standard Oil Co... of
in

a

debentures,

.7

a

rate

4.40%.

of

be

1963

for

that

interest

There is

a

of

sink¬

ing fund of $3,000,000 a year be¬
ginning in 1968 and extending to
1982.

the

„

-

-Of

net

sale of the

proceeds

from

the

debentures, $50,000,000

erally late this year and early California was made .on "Sept. 5 will be used by the
company to
by
a
nation-wide
investment
year
could result in
repay outstanding bank loans. The
banking group headed jointly by
remaining proceeds will be avail¬
sharply higher results: T""
Blyth & Co., Inc. and Dean Witter
next

able

& -Go.

The illustration most cited

-

is the way the
snap

line was able to
back after the 1954 busi¬
recession.

ness

pendence
resulted
than

at-99%%

to

ai^d

yield

maturity.":

in¬

accrued

about

4.40%

7":

The debentures

are

to

climb

in

came

of

more

;

at the option of the company com¬

of

gross in
close to

1955
being

commencing July 1,
104.625% to par in 1981.

The

for

and

sale

at

and

of

development
is

prospective

lands.

The

listing

of

fornia,

a

Stock

Exchange.
Conipany of Cali¬

leader in the petroleum

annual field

of

com¬

also

manufacture

petrochemicals
chemicals.

and

ous

argicultural

are

a

world-wide

PAUL, Minn.
has

of

Pioneer

been

Smith,

under the

Marshall

;

*

car.r-'V

Robert J.

—

added

to

American and

an

7

.

The

-

the

MINNEAPOLIS, Minn.
La

Hue

&

Co.,

liam
&

Building.

G.

Lawrence

;-

utable to rather concentrated
,

attention

from

various

the

financial services and houses,
the studies
Union

as

centering
Carbide

on

and

such
Dow

Chemical
the quality items
—although there was a some¬
what odd and better feeling
about Olin Mathieson despite
—

the fact it is
dividend

now

basis

half the

on

that

it

was

formerly. Industry indices in¬
dicate that improved business
is expected later this year in
the chemical business

gener¬

ally Twhich could help Olin
rebound importantly, and in
addition
week

an

it

this

announced

expanded participa¬

tion, through its E. R. Squibb
cancer research in

division, in
a

five-year,

$7

million

pro¬

gram.
7

Of

the

chemicals,

du
laggard
marketwise since despite gen¬
eral .improvement it
is ex¬
pected that its results will be
Well under last year and that
the coverage of the dividend
will be sd meager a trim in:
the yearend extra is in line to
bring payout to $6 against
$6.50 last year and in 1956
and $7 in 1955. Nevertheless,
Pont

was

top

somewhat

"

*

If

the

broadly diversified opera¬
tion, leading position and the
uncertainties in its huge hold¬
ing of General Motors stock
kept du Pont solidly planted
0 n
buying recommendation
fasts and enabled the issue to
nudge to

an

high for this

occasional

America

in

your

plans, investigate the

one

a

a

of the world's leading

vides

new

year.

natural

vast

resources

for industries

enjoyment of Chile's ideal climate

and its

pro¬

for yourself? Combine

come see

personal look at business possibilities

with

location in Chile.

outstanding scenic and

recrea¬

tional facilities.

ducers of minerals and wines, Chile pro¬

FOR MORE INFORMATION

on

the ad¬

using agricultural products, lumber and sea¬

story in Union Carbide
similar, a decline in re¬

vantages Chile offers and for a copy of the

food. Further

The
was

are

growth possibilities of

Already

Why not

expanded operations in Latin

new or

booklet

icals, fertilizers,-paper manufacture and

sults anticipated this year, but
the high - standing and the
fakelihood of a fast earnings
.

increase when the business

growth is expected in chem¬

many

other fields*

as

well

as

in the nation's

fast-growing iron and steel industry.

re¬

"Investing in Chile," write General

Manager, Cia. Chilena de Electricidad, or Area

Development Section, American & Foreign
Power
,

*

Co., 100 Church 7St., New York 7, N. Y.
*£
*

,

' 1

.

x

f

,

t

„

.

,

„,

.

,

takes hold make it an
attractive investment .despite
covery,

new
highs for 1958 v which,
however, are well under the

Compania Chilena de Electricidad, Ltda.

peak posted in 1956.
in this
article do not, necessarily at any
time coincide w th those of the
"(Chronicle " They" are presented
as those of the author only.]

%

With Pitser & Co,

/

[The ' views' expressed

(Special to The Financial Chronicle)

RALEIGH, N. C.—L. L. Ray is
-




"

Art investor-owned

•

-

T
• •

"

j

'

utility serving

over

320,000 customers in

the Santiago-Valparaiso area with electric power and light

~

SANTO DOMINGO 789-CASILLA 1557

:

SANTIAGO, CHILE

•

.

7

.

.

.

how with Pitser & Company, 322

Forsyth Street.

<

'

-

ASS OC I AT ED _W I T H

1

n

T H E

'

A M E R i C A N

'

&

FOREIG N

POWER

is

—

with

"Wil¬

Bache

Co., Grain Exchange Building.

strength 'hilargely attrib¬

was

:■

Joins Bache Staff

sustained

chemicals

as

foreign

a

.7.77 7 7

PUT: CHILE IN YOUR PLANS
Strength in Chemicals

direc¬

Schmidt

well-rounded program of sports
There will be
"truckload" of prizes in addi¬

tion to

With Smith, LaHue
(Special to The Financial Chronicle)

staff

W.

and entertainment.
a

Milavetz

of

Outing Chairman have developed'

..

ST.

committees

tion

The operations of the
and those in which it

company
has stock interests
in scope.
7
;

intends to apply;
the' debentures on

Day

PHILADELPHIA, Pa.—The 33rd

day of the Bond Club
Philadelphia will be held on
engaged
in
the Friday, Sept.
19 at Huntingdon
and
distribution of Valley Country Club.
The vari¬

oil

proved

pany

company

Standard Oil

Hold 33rd Field

wholesale

the acquisition

The company estimates
exploratory expendi¬
$375,000,000 in 1958.
%

the New York

1958
The

processing

of natural gas and

and

tures at

Phlla. Band Club to

products; the production,

purposes.

capital

redeemable

period

for

capital and exploratory
'expenditures and other corporate

high de¬ mencing with* prices" which scale
heavy industry downward from the: 12 months

on
in a

14%

which

Its:

terest,

crude oil

and

.

.

the

industry, is engaged in the pro¬
duction,
transportation, refining
and
marketing of crude oil and

17

S YSTEM

The Commercial and Financial Chronicle
18

...

Thursday, September 11,1958

/

(1018)

the pub¬
dollar reserves
but not nearly as strong as is be¬
lieved in many .quarters as a re¬
sult of the optimism generated by
the publication of figures relating
to the secondary dollar reserve.

than would appear from
lished

Reserves
A Third Line of Defense?

Aie British Dollar

EINZIG

By PAUL

about

evaluates recently published reports

Economist Einzig

relating to
LONDON, Eng.

Biddle & Co.,

used for the purpose of borrowing

changes,

But it is
of a sub¬ in the United States.
stantial British secondary dollar possible to envisage situations in
which such transactions on a large
reserve in the form of privately
scale would not be very easy.
held securities
United

the

in

Canada

ceived much
most

true

For

people

official

the

d

the

of

tain from

a

that

the amount of

such securities

ab'out

was

Paul

Dr.

Einzig

million
as a complete surprise.
Sub¬

$3,000
came

sequent calculation of the present
value of these investments pub¬
lished in The London Times puts

nearly $4,000 million.

the figure to

reasonable to assume that
the realization of the "existence of

It

second line of

substantial

a

long way
towards strengthening confidence
in sterling.
It is indeed remark¬
able that the British authorities
defense«has

gone

a

eral

position to draw freely on their
sterling holdings.

th

the Over-the-Counter

ing attention to the existence of
this secondary reserve during pe¬
riods of flights from the^ pound.

restrictions there are
Eventually the announcement was many
exceptions
to
this rule.
dragged out of them through the During the war patriotic consid¬
initiative of a Member of Parlia¬ erations facilitated the effective
exchange

as a

gen¬

cumber¬

not be mobilized without

partner.

Securities

Investment

to

Needless

negotiations.

some

the extent to which the secu¬
could
be
realized in an

say,

rities

the

anti-capitalist
Labor

last

the fears of

a

attitude

of
and

Government

return of the Labor

Government have been mainly re¬

authorities

in

are

a

position

to

commandeer them from their pri¬
vate holder is worth remembering

when

opinion about
backing of sterling.

forming

an

the

view,

long
their

of

assets

is actually

it

of patriotism

act

to

remove

Today P. R. Mallory common is one of the respected electronic
on the N. Y. Stock Exchange. It is currently available

stocks traded
at about 32.

De¬

from

an

shares

bought

dollar

within

the

v

short

at

notice

and

not

nearly

enough attention has been paid to
the
existence of
large Britishowned
we

investments.

dollar

Once

allow for the latter the overall

picture is bound to become much
more favorable to sterling.

Not

accounting, and sales, that told the story—not where the stock

as

this

Such "hidden reserves" may be

substantial. But they cannot
be regarded as a third line of de¬

very

fense for

price). As one salesman friend of mine said to me when one of
prospective clients complained that a certain investment was
unlisted, "I asked my client, would you rather buy this stock now
at a level that looks like a real value cr wait a few more years
be listed then on some exchange,

stronger factor in its industry but if this comes to pass
it may, look at the profit you will have missed."
There have oeen so many wonderful opportunities in the
Over-the-Counter Market during the past 20 years one hardly

possibly
as

Having said this it is necessary
to
warn
against
allowing
the
pendulum to swing in the direc¬
of

over-optimism. It would
be entirely wroqg to regard this
to

and

add

the

estimated

amounts

that

ized.

Some

were

retained,

would

of these

be

real¬

investments

even

during

the

.early part of the war when the
British Treasury was practically
down to its last dollar,
such essential

.

to

a

be

Frank

securities

and

their

owners

ware

post

to

re-enter

the

B.

retain

their

dollars for^fear

is

re-transfer
should

their
a

money

sudden

into
need

arise.

Taking everything into considconclude

Victor
and

J.

it'seems reasonable to
that sterling is stronger

Stock Exchange but it was

if you

and
are

ability.

To

certain

of

coming to
You can't
of these companies because their shares are not listed.

The Over-the-Counter Market is the most
you

B.

In

for

pursuing

this

broker offer

Joseph W. McDonough

prolific hunting ground

find if you are looking for greater than average oppor¬
capital gains.
conclusion, and to be specific, if you are interested in

can

tunities

Franklin & Co.

have your investment dealer or
suggestions to you. Look into the various com¬

subject further,

some

panies that are making outstanding progress in any field where
you think you would like to put your bet on the future.
It will
take some time and study, but large rewards do not come easily.

ated with

Cohu & Stetson for 34 years.

the investment profits that are
companies requires an open mind.

uncover

these

discard any

Mr.

Joseph W. McDonough, associ¬
Winslow, Cohu & Stet¬
son, New York City, as a trader,
passed away Sept. 6 at the age of
64.
He had been with Winslow,

science

electronics, drugs, chemicals as well as the usual business oppor¬
tunities that are available to aggressive management and business

Villa

Samuel

ability to take advantage of the miracles of modern

opening the doors to young and vigorous companies in the
of
rare
metals, metal fabrication, atomics, super-fuels,

fields

Chiavetta,

Co.

Opportunities Are Still Available

Today young companies are blazing new trails in the fields of
advanced science.
Engineering skill, "management know-how"

Co.,
210
West
members of the

with

to see what an nonToday it is listed on
not so many years ago

do when it becomes of age.

yourself, and there are hundreds more like it that have emerged
from the "Counter" market in the past 20 years.

Pacific Coast Stock Exchange. Mr.
Bolton and Mr. Villa were for¬

was

knowledge locked

retail

Charles

merly with J. Logan &

my

wanted to buy it you would have had to go to the
Over-the-Counter Market. Take a look at the record and see for
that

associated with Marache,

Dofflemyre
&
Seventh Street,

Sedach

can

These

Sedach

of

record worth checking if you would like

the New York

ANGELES, Cal.—Kenneth

now

a

listed stock

that

they may not have an opportunity
dollars

are

small amount of that stock but that investment firm

a

field.

Bolton,

Walter

buy

Excluding dividends paid, which were substantial over the
years, the capital appreciation was over 800%. The large rewards
went to those- who bought before this stock was listed, although it
showed excellent profits in the years that followed.
Then there are stocks like Hooker Electric Chemical; here

Four With Marache
LOS

traded

it up.

iSpecial to The Financial Chronicle)

holdings is

was

One fine company I

was

trading

bought thousand of shares and to the best

T.

them

these concealed dollar

to

succeeds

of

privileged to read a very detailed report that was prepared by one
of the leading investment firms about that company. (It was then
known as Marathon Paper Co.)
I persuaded a few of my clients

sales

a

it

remember so well
recently merged into American Can
on the "Big-board."
I remember
Over-the-Counter back in 1936 and I was

begin.
It

years

many

when

not

J^is truef i eration,

securities could




Hewitt

Mr.

value

tirely out of proportion to the dol¬
lar

as

to

Marathon Corp.

after

concentrating on both
the
retailing
and
wholesaling
phases of the business.

likely to surrender them
or repatriate them during periods
of flights from
the pound.
The
only time when a proportion of
are

of simple arithmetic

as one

industry

where

knows

Betz, Jr. who resigned his Dela¬

likely to
become mobilized is
during periods of absolute confi¬
dence in
sterling. Should there
of the secondary reserve to the
be a flight to the pound through
$3,000 million of the official gold
and dollar reserve. A large pro¬ the anticipation of an upward re¬
valuation many illicit holdings of
portion of the British dollar in¬
dollar securities may be switched
vestments constitutes
essential
back into sterling, to benefit by
participations, the Realization of
such
revaluation.
Many more
which would inflict
on
British
firms losses and disadvantages en¬ holders, however, would prefer to
matter

fund

a

think

we

was

Mr. Hewitt entered the

1953

several times today's price for it. The same shares may
the company could be larger and

and pay

Mr. Hewitt has been associated

mutual

spectacular profits made in such situations
it. The Polaroid stock that is today

Polaroid and others like

his

country

sterling. The authorities
a position to
com¬

in

not

mandeer

Wars Against Over-Optimism

Defense"

<,<v

have been

selling at about 67 on the New York Stock Exchange, started
out only a few short years ago in the Over-the-Counter Market
and could have been bought for less than $1 a share (adjusted

|

with the investment business for

In

"Third-Line of

traded.
There

executive,

are

tion

a

specialized electrical components was destined to become

industry did not let the fact that this stock was net listed deter
them.
Again it was management, engineering, research, good

grasp

being wasted.

The investors who had the
and vigorous manufac¬

major beneficiary of the great growth in the entire electrical

a

of Socialist spendthrifts number of
years and has headed
They profess to believe that by or
held partnerships
in several
Hitherto too much attention has
transferring their assets abroad securities firms. He was a mem¬
been paid to the existence of large
they safeguard a corresponding ber of the New York Stock Ex¬
foreign-owned sterling balances
part of the national wealth from
change for 17 years.
which are liable to be withdrawn
the

this;;siock for less than 5.

turers of

joined
the
organization in January,

throughout

If you will look back into the records you will dis¬
was
not so many years ago that you could have

insight to perceive that* this then young

first

and abroad.

it

that

cover

Appointed by

Hewitt

(adjusted for stock splits) would be

about $7,300.

—not WHERE the stock is traded!

1955, as an area sales manager.
The following year he was named

some

V-;

It is the company, its product, management,
opportunity for growth, that creates great investment rewards

worth
and

Delaware Fund

Delaware

market, and to this list can be added hun¬
spectacular in performance than the

Today, that same investment

was

Hewitt

of space we will only offer a few ex¬

to the State of Florida
A 100 shares bought in
tlie late "forties" could have been acquired l'«' less than $1,000.

a
vice-president of the Funds'
without substantial
sponsible
for
evasions
of
the
losses necessarily
varies widely. restrictions on transferring capital distributing company. In his new
position he will coordinate, direct
Even so, the fact that these hold¬
abroad. Many people went so far
and supervise sales of the Funds'
ings exist and that the British

to take the line that, taking

'

the great growth that was coming
bought this stock when it was unlisted.

emergency

af

had

see

trust funds.

common

Mr.

The

'

have been buying securities for even the past ten years
you may remember when Florida Power and Light common was
traded "over-the-counter."
The farsighted investors who could

operation
of
exchange
Since
1945, however, a

The above figures refer to

the

It you

PHILADELPHIA, Pa.—The ap¬
control. pointment of William W. Hewitt
number as sales vice president of Dela¬
Brit¬
ish
private
holdings
of dollar of people in Britain felt they were ware Fund and Delaware Income
equities, bonds and other realiz¬ morally justified in circumventing Fund, and director of sales of
control provided
able securities. They do not in elude the
that they Delaware Distributors, Inc. has
announced
direct investments in American or could do so without running un¬ been
by W. Linton
/
Canadian business which could due risks.
Nelson, President.
ment.

clients,

dreds more, some even more
few we list here.

-

partment5 of Butcher

Although British people are prob¬
ably more law-abiding than the
citizens
of most countries with

their

amples of investment opportunities that have been available via

Cos-

w i

the

of

of

Examples of "Counter" Opportunities

to the limitations

Due

& Sherrerd
and from 1954 until he joined Yar¬
p In addition to the British dollar
nall -Biddle & Co. he was a Trust
holdings declared to the Bank of
Investment Officer of the Phila¬
England, there are bound to be
substantial British dollar invest¬ delphia National Bank in charge
of
investment
analysis and
of
ments which are not so declared.

took the initiative for draw¬

never

drew

attention

foresight tp buy them when they were "UNLISTED."

an-

cement

F.

Wm.

the

the most conservative investments available there
and insurance stocks, and the

are

A Few

made that

grove

a,

seems

such

was

to

Government bonds, bank

as

the

At
time

n o u.n

only

the

H. S. Valentine, Jr.
M r. Valen¬
sterling crisis of 1957 was largely
the result of the sudden reduction tine has been
of India's sterling balances.
But associated with the investment se¬
the substantial amounts held by curities business since 1930 when
the Crown colonies are not likely he joined the sales department of
to be withdrawn in circumstances Blair &
Co.
In
1932 he joined
that would cause acute embarrass¬ Scudder, Stevens & Clark.
From
ment. From this point of view it 1934 to
1949
he
was
associated
is important to bear in mind, how¬ with the Land Title Bank & Trust
ever, that as and when colonies Company
in various capacities.
achieve independence they are in From 1950 to 1954 he was manager

Parliamentary
answer

of it is held by

This
in itself safeguard Bri¬
heavy withdrawals. The

not

does

months ago in
the form

part

larger

countries of the sterling area.

s o m e

e

firm.
same

overseas

opportunities

the

in

large part of sterling

a

is not held in a
realizable form. Moreover, by far

announcement
m a

that

held

investment

past two decades have made fortunes for those investors who

part-

general
ner

example, that have been emphasized .by the "Chronicle," and
advertising and literature distributed by thousands of repu¬
investment houses that have brought attractive, unlisted,

highest quality industrial and public utility securities, but the"
"growth stocks" that have emerged from this market during the

a

as

the

table

Not

ad¬

been

hand, it is equally

On the other

One of the most publicly misunderstood phases of the securi¬
the Over-the-Counter Market. Despite the facts,

such

J r.

;

.

Independent
'■•

attention.

has

1

general public is still only vaguely aware of the magnificent in¬
vestment opportunities that exist in the Over-the-Counter Market;

Stuart Va¬

lentine,

re¬

other leading ex¬

an¬
that

nounced

H.

mitted

Colonies Become

When

i

in

and

States

and

By JOHN DUTTON

ties business is
for

PHILADELPHIA, Pa.—Yarnall,
1528 Walnut Street,
members of the New York Stock

generated by the publication of figures
the secondary dollar reserve.

In recent

—

^========

.

existence

the

Securities Salesman's Corner]
Is It Listed?

Yarnall, Biddle i Co.
Exchange

months

of

Valentine Partner in

approximate extent of British dollar holdings.
Concludes
sterling is probably stronger than published data indicate
"but not nearly as strong as is believed in many quarters as a
result of the optimism

figures

As in eyery

market the successful investor investigates carefully
be a winner—but it
a stock is traded that counts but the company

and knows full well that not every stock can
i

is also not where
and its growth

potential that tells the story of the future.

Volume

188

Number 5776

.

.

The Commercial and Financial Chronicle

.

(1019J

Continued from page 3

seldom

wanting where the power
exists, for the desire of accumula¬

tion

Keynes's "Greatest

(i.

e„

demand
desire

Achievement"

saving)

just

will

occasion

effectually
consume; it will

to

as

change the objects

on

as

a

only
which the

demand will exercise itself.'"?

But

when

some

asserts

one

that

$15 Million Norwegian

five,

that

or

Two

Crucial

Contradictions

importation of capital, equip¬
required for the develop-;

ment

Bonds to Be Offered

of the

Norwegian

economy.

Interest on, and
principal arid frit,

inadvertent dropping of

istration

the

corporate trust office of The
First National City Bank of New

of type in the

statement

York, the fiscal agent.
The
at

bonds

the

will

be

redeemable

option of the Kingdom

Norway,

and

on

after

Oct.

-

.

adopt, and this is to assert that
ment are "two essentially differ¬
sense in which
Say's Law
is true it is "mere
tautology." If ent activities" without even a
it is
tautological, it is so in the- "nexus'*" (p. 21), so that saving
same sense in which basic
logical not
only can exceed investment
and
mathematical propositions

tautological:
equal to the

"Things
same

to each other."
to say

this
forget it.

thing

are

but chronically tends to do so.

will market the bonds to the pub¬
lic. This same syndicate handled
the last previous Norwegian issue

here, also

$15,000,000 flotation.

a

Net proceeds from the financing
will be applied to the acquisition

of

1,
be¬

1968, and the sinking fund,
ginning April 1, 1962, is designed
to

retire the

entire issue

turity.

by

ma¬

sale

of

the

bonds

in

the

Salle

New

and

•

••

Francis R.

States

Say's

money markets.

partment.

v

which

a

century
Keynes "refuted"

Law

only in a sense in
important economist

no

held it.

ever

To Save Is to Spend

Risking the accusation of beat¬
ing a dead horse, I should like
to

address

myself

to

one

more

effort, by Keynes to disprove Say's
Law, or what he calls "a corollary

of the

doctrine" (p. 19). "It
supposed," he writes,
any individual act of ab¬
staining from consumption neces¬
sarily leads to, and amounts to the
has

same

been

"that

same

thing

causing the labor

as,

and ' commodities

from

thus

released

supplying: consumption

to

be.invested iri the production of
capital wealth"; (p. 19)./; And he
quotes the following passage frOin
Alfred Marshall's Pure
Theory of

pdineUic '.VqXues (p; -34); in. illus¬
tration :-V:

"The
is

;'V !7

whole of

expended

in

V

man's

a

the

;yy

income

purchase

services and of commodities.

of

It is

indeed commonly said that a man
spends some portion of his income
and

another.

saves

■familiar / economic
man

But

it

axiom

is

a

that;

a

purchases labor and commo¬
with/.that portion of his

dities

income
much

which

he

as

he

saves

just

as

does with

that he is
said to spend. He is said to
spend
when he seeks to obtain
present

enjoyment from1 the services
commodities

which

he

w/m

and

purchases.

He is said to save when he causes

the- labor

and ;

the

commodities

which he purchases to be devoted
the production of wealth from
which he expects to derive the
to

of

means

enjoyment

in

the

fu¬

ture."

there's

This doctrine, of
course,
goes
much, further back than Marshall.

Keynes

could

have

quoted

more

to Cities Service

than meets the eye!

his

bete

noir, Ricardo, to the same ef¬
"Mr. Malthus,"
wrote, Ric¬
ardo, "never appears to remember
fect.

that to

he

exclusively

spending."6

Ricardo

further than

this, and in

ing

A newspaper

is to spend, as surely

save

what

as

Malthus

and

calls

went

one

and

of

"I

ished

generally

by parsimony

transferred
consume

with

to

on

still

of

power

occasion

of

effectual de¬

two

elements,

the will to

chase; but I think the will is
5 David

(Scraffa
'

6 Ibid.

Ricardo, Notes
edition), p. 449.
p.

309. *

on

pur¬

very

Malthus

\

7 Letters of

Bonar
p.

Literally
a

directly to Malthus:

and

a

few ounces of

paper

of world-wide

news

typographers, block-long high-speed presses,1

while the

news

is "hot."

chemical analysis

printed

;

There is much more, also, to a
a

con¬

with

mand -consists

than

to read¬

paper

.

gallon of gasolene than

would show. The motor fuel

sup¬

plied at Cities Service stations is the end product of

another

"We agree too that

•

are

power "to

set

.

Ricardo wrote

the

ers

dimin¬

they

—

the

another

sumers."6

And

are

more

and fleets of vehicles to rush the

deny that the wants of

consumers

is much

printer's ink. It is the end product of acres

photo organizations, diligent local staffs, skilled edi*

tors and

Keynes's chief contentions in ad¬
vance:

bit of

of forests converted into newsprint,

much

answer¬

answered

a

Ricardo to Malthus, ed. by
(1887). Letter of Sept. 16, 1814,

43.




everyone

connected

newspaper goes unseen

except the newsboy who sells
it. Editors, reporters, copy

boys, makeup

men, engravers,

typesetters—this is but

a

tion of the hidden army

brings

you

the

news.

frac¬
that

job which reaches out to four continents. All this

quired

a

capital investment from Cities Service of

than $179,000,000

Only in this

in 1957 alone.

way can

,

a

re¬

more

.

the petroleum needs of the pub¬

lic be met-and petroleum, next to food,

product in America today.

..

appear

Stock

in their

;

Schanck, Jr., is part¬

marks
the
third ner in
charge; Andrew D. Buchan,
time since the end of World War II
is manager; William C. B. Magoun
that the Kingdom of Norway has
raised new capital in the public- is also associated with the De¬

as one docs not

than

more

him.

Midwest

Exchanges, did not

attempted

before

lines

Street, members of the

York

To sum up, Keynes's "refuta¬
tion" of Say's
Law, even if it had
been successful, would not have
been original: it does not
go an
inch beyond Malthus's

refutation

some

Bacon, Whipple & Co., 135 South
La

;:

!

Through the

"Security Dealers of North
America," the personnel of the
Municipal Bond Department of

equal

are

—

Mid-Year 1958 Edi¬

tion of

listing.

"v/

The

United

CHICAGO, 111.

One does not need

long

as

are

that

Municipal Department

demption price, if any, in respect
of the bonds will be
payable in
currency of the United States, at

an

in the

Bacon, Whipple & Co.

The Kingdom
of Norway
on
Sept. 5 filed with the Securities
and Exchange Commission a
reg¬

covering the
proposed public offering of $15,existing depression is the result
Keynes1
alternates
constantly 000,000
15-year
external
loan
of
a
general overproduction of between two mutually contradic¬ bonds of
1958, to be dated Oct. 1,
everything, it is necessary to re¬ tory contentions: (1) that saving 1958, and to mature Oct.
1, 1973.
mind him of the error.
and investment are "necessarily
An underwriting syndicate head¬
There is still another line of equal,"
and
"merely
different ed
by Harriman Ripley & Co. Inc.;
attack, on Say's Law. which
,a£pacis-nf the same thing", (p. 74), Kuhn, Loeb & Co.; Lazard Freres
Haberler among others seems to
and (2) that saving and invest¬ & Coi, and Smith, Barney -& Co.
two and two make

and

ment

19

'

is the most vital

v

•.

,

and Financial Chronicle

The Commercial

(1020)

20

\

in

Utility Securities

leaves

the

that

Assuming

doubt.

same

year-end extra is paid as last

for

television

Kansas-Nebraska Natural Gas Co.
Kansas-Nebraska Natural Gas

"

*

*

*

.

supplies gas to adjacent areas

northeastern Colorado, with
a. population of over 312,000.
Gas is served at retail to 154 com¬
munities, and at wholesale to 66. The area is largely devoted to
farming, with a substantial demand for gas for irrigation. The
company's revenues are derived about as follows: domestic and
commercial 35%; other gas -utilities 80%; industrial and. institutional 21%; field sales 8% ; miscellaneous operating revenues 6% r
The company produced 54% of its gas needs and purchased
46% in 1957. At the end of 1957, it directly owned about 1,020,000,000 Mcf of gas reserves and controlled an additional 734,000,000 Mcf under purchase contract, most of these reserves being in
the Hugoton Field and Camrick Fields in Kansas and Oklahoma.
The company has a wholly-owned oil subsidiary, Excelsior
Oil, with oil production and reserves in Logan Coiinty, Colorado
and interests in exploration and development in various areas.
Oil production is probably around 400 barrels a day. Excelsior
last year participated in the drilling of 23 wells, the results ob¬
tained being 6.25 net oil wells, 3.50 gas wells and 6.25 dry holes.
An extraction plant at Big Springs, Nebraska, was completed late
in 1957 with a daily capacity of 25,000 gallons of propane, 8,000
gallons of butane, and 6,000 gallons of natural gasoline. If the re¬
sults of the current drilling program are reasonably satisfactory,
Excelsior is expected to begin to show a good return on its invest¬
in 1958.

ment

of

Sale

for

gas

larger quantities of gas, offsetting
loss. Nearly half of the nation's

transmission

will

line

built

be

Colorado for

in

stock

1953-56 these two billion or 54% of all institutional
virtually reversed, savings funds.
Thirty percent went into currency, % Another type of financial interdeposits and savings accounts and mediary is the insurance company,
onlv 11% into securities.
These held a total in savings of
In the 1926-29 period
18% of approximately $82 billion,
the savings went into private and
Next are the pensions funds. We
government insurance and^ pbn- >refer to them,as the ."non-insured
sion
reserves.
In the 1953 - 56 pension funds," that is, funds not
period 28% went into insurance handled by life insurance comand pension reserves.
The big panics. Most of the'm are admingainer here was, of course, gov- jstered by the trust departments
eminent
insurance and
pension 0f banks, but some are union manreserves.
aged and some are managed by
Institutional
savings,
that. .is. individual trustees.
This is the
money placed by Americans into
newest form of financial interfinancial institutions rather than
mediary and at the, end of last
directly invested in securities, in- year had resources of approxicreased an average of $21 billion mately $19 billion.
v/V
annually
during
the
last five
Finally, we have a fourth type,
years.
This compares to a direct the
mutual
investment
funds,
year

were

investment in

In

the

number of/
place, the

a

first

tion

insured

Federal agency
to

-

$10,000 by a
looked pretty good
to

up

there

him, even though

wa$ net

promise of capital gains and the
return was only 3% or 3)2%. In
was in many cases the
investment he would even

only

fact, it

Professor

sider.

Jules

con¬

Bogen

of

New York University points to' ihef
failure of the mutual investment

43.4%;

33.3

insiitutions

were

when
so

the

to

$2.56

$1.75

$16.87

33-33

17.0

2.44

15.4

2.38

1.60

15.18

40

-

1.12

14.27

28

-

1.20

13.20

1.64

1.12

1952

9.8

1951

8.7

2.11

1950—

7.7

.1.95

1949

6.5

1.79

1.00

1958

5.5

1.78

.

,

'

1.00

evidence of the fact that

are

about

open-end

$10

billion

have

still
of

yearning for safety
where their dollars

a

the

fact

not

bond

that

and

or

relatively

than

.

.

American in¬

typical investor

a

tion*

ago,

different

a

a genera-/

type

of

assets,

day's investor does not have cap¬
ital sufficient to permit him to

bonds reached a total of, $50 bil-

In

.

free or virtually

one

ability to: set asidq:

varying sums of money at.vary¬
ing times. Liquidity Or tbe.ability;

erage

a

or

diversifica¬

needs above .all' conve¬

He

tion.

nience and the

margin each year and the total
outstanding is declining. ■.
It is appropriate to note that

nominal

risk free

Which provides broad

his investment without

to cash "in

have exceeded sales by a

buy-

only

typical

vestor today being a man of con-siderably smaller average means

billion of public savings are currently in savings bonds/' Savings

Ameri-

stock

the

With

tbc-Jast--4ew—years -redemptions

n-

Tut chases

that' today

is

/

concerned.

investment medium is needed. To¬

lion during the middle 1950's.

$22^ billion.-

in Securities

principal

are

and

funds

in

bil-r

people,

loss

or paying large brok-*
commission fees is also
important. He needs, as you can
see, institutions such as our mod*-

undue

or

.

8.92

9.13

•

.

savings

and

comes

closest tol

I hope that I will be forgiven if I
point out that savings and loan
tent
associations now hold twice the
ings banks. You also see it in the .proportion .of the ;savings they
decline in importance of the in- held in 1920.
This great-relative
dividual as an investor in
real increase -in - the
importance of
estate mortgages. The institution- savings and loan savings all has
al investor, such as the savings < come in the last 10 years.
aM:loan association, has put him v These'financial institutions are
out of the home mortgage busi- getting $4 of every $5 that Ameriness
in all
but the small 'rural can families save out of their incommunities.
You see it* in the comes. -^ThesC are the institutions
tremendous influence currently of that are doing most of the invest*
the pension funds and mutual in--ing today-—investing in obligations

-

19*15

14

insurance and

medical

retirement

est' growing savings' medium, hav-'
ing grown from $2/} billion in plans. Whereas in 1928 there were
28
million
ordinaly life insur¬
1947 to almost $20 billion today,

securities with ■insurcompanies and to a lesser exwith pension .funds and savx

corporate

,17-12
-r

in

ance

38-33

18

trust

-

23-17

9.89

-

$1

than

more

I have included United States
savings bonds in tlii; table for take excesdve risks. He does not
completeness and comparison be- have the time or talent to, analyze?
cause they
were such a popular corporate, fihatfeial 'st4teinebts and;
lotm of savings until recent years. the vagaries of the financial and
The. United States Treasury is not investment market. BasjcaH/ he
what we would calf-a "financial needs an investment/ that is 'rislc

investment
patterns: The great increase in socalled
direct placement of new

.24-19

11.13
-

savings

every

I

are

shift

-26-21

"

12.53

;s

1.21

1.201

.v

grow

pension funds and life insurance 192*0 were equalsJo little more
companies and these institutions,%than ■ one-fourth/-of the Gross Na- meeting the needs "of today's aver*^
//
then, are making the security and. tidhaT Product tbaf yea/mow they age ■ investor. ■
mortgage
investments
for " the; are equal/ to; two-thirds of • our \ Along .with this/ development
has come the tremendous growth
American people.
much expanded GNP.
in
popularity of life insurance,
You have seen one result of this /The pension funds are the fast-

24

1.87

*■

10.3

into

net

have

only $6 billion was incompared
increase in institutional

net

a

Decline

28

1.30

12.1

16.02

$4
lor

These

net in securities

savings of
"-

Price Kange

g:

other

In

very

year,

vested

Approximate

„i.65

as

yields on bonds'
attractive and when
there was a bullish sentiment in institution.'//•;
the stock market through most of Your will note that almost $43
1957

were

$2.40 com¬

Book Value

..

to

investment

Common Stock

.

billion over the

$1 of net.
investment in securities.
Even in

'

$19.8

putting

are

$4.1 million bank loans.

.

bonds

words, the people in this country

100.0%,

:

"Dividends

Share

(Mills)

funds

lion in each of the past few years

portion of the savings of the total institutional savings have 'era-da'y. savings and ioan associak
American people, as individuals, grown ten-fold since 1920 while tions. Our institutions provide all
features to -Savers and
is going directly into securities, our Gross National Product has of these
Rather
they
are
putting -then*'increased only four- times.vTotal fixed dollar investors. For equity,
.investments Something" like / the
money into financial institutions*. savings in financial institutions in

Earnings

Revenues

—

period.

five-year

same

The

18.3

$49.8

-r

securities

and stocks—of $5

Gas may also have been a factor.
company's record in the past decade has been as follows:

1954

the

In

figures

sales to Northern Natural

1953_

think, for

I

along,

reasons.

an

as

came

.

heating sales), together with
higher income taxes due to reduced credits from drilling, seem
largely accountable for the dip in earnings.
Reduced field

*

institution

intermediary

typical
individual
investor/ in
securities /got
Of the total savings, 47%- banks, savings and loan associa- American
pretty,
went into securities.
Only; 10% lions mutual savings banks, the badly burned in 1929 and later.
went into currency, bank deposits credit uniorts and Postal Sgyings/ The government savings bond and
and savings accounts.
At the end of 1957. they held $132 the account in a financial institu^*

conditions (partly offset by increased

1955

gone

sion).

pared with $2.58 in the previous year; for the first half earnings
were $1.59 vs. $1.74.
The decline in irrigation load due to weather

1956

would/have

you

financial

The

Of American Growth

ers

16.6

(937,000 shares)

equity

Earnings for the 12 months ended June 30

1957.

if

far without parallel devel¬
opments in the field of finance. '/*

small

9.1

*Does not include

The

doubt

investment

cans

*$24.1

stock

Total

.

12

Savings—The ^cie!

Percentage

15.4

•

Total debt

i

thing.4

same

process
has required tre-1
amount of capital and T

very

.

Sinking fund debentures.

Common

Continued from page

reserves.

^Long-Term Debt -Millions
First mortgage sinking fund bonds
$8.7

Preferred

Your

mendous

better

Excelsior may spend about $1 Va mil¬
production facilities/
;/• /- % •
of March 31, 1958, capitalization was. as follows;.

utilization of gas

;

the

somewhat

done

\

goods

world

the

In

able

are

quality at loweiv prices.
of finance we have'

of better

...

to a great extent the irrigation
dehydrated alfalfa — called a

lion for drilling and other
As

and

.

•Jvonder ingredient" because it brings the value of fresh green
pasture to poultry, cattle and pigs every month of the year — is
produced in the company's area, using natural gas from the
Kansas-Nebraska system. The dried alfalfa is put in pellet form
and can be stored without spoilage for very long periods of time.
This development has been very beneficial to the local economy.
Volume of gas sales last year increased by nearly 20%, much
of the increase being caused by well-head sales, which were over
three times as large as in 1956.
Revenues gained 16% but due
to a decrease in the drilling program total taxes were up 29%.
Net earnings were $2.56 a share vs. $2.44 in 1956.
Last year's construction
program approximated $8 million
but estimated expenditures for 1958 and 19J39 are expected to be
at about half that level, internal cash should be ample to take
care of
these expenditures so that no equity financing appears
likely for some time. About half of the $3)4 million to be spent
on
construction this year will be for drilling and gathering.
A
23-mile

scale

of

.

irrigation dropped considerably last year
because of heavy rainfall.
However, 1,271 additional irrigation
Customers were added and further development is expected be¬
cause of the normally semi-arid
conditions of the region. With
favorable crop conditions alfalfa dehydrators purchased much
i

streamlined

to offer the consumer more

years,

and Nebraska and

in western Kansas

v

economies

A portion of the dividend has been tax-free in
but this is not expected to be the case in 1958
presumably due to reduced drilling expenditures. The stock is
selling at about 16.5 times recent earnings.
recent

You

sets.

plants, took advantage of the

your

of '39 Vz

price

durable goods such

consumer

automobiles, refrigerators and

-as

would

By OWEN ELY

same way

that you developed a mass market

(20c) the rate would be $1.30, and on this basis, the yield
approximate 4.6% based on the recent over-the-counter

year

.

the

.

cents have

which

Public

'
for savings in much

December. This year three quarterly dividends
been declared, without the usual October extra,
the total amount of 1958 payments .somewhat in

and

October

of 40

Thursday, September 11,1958

...

•

•

•

ance

every
are

policies in force, or one for
four persons; today there
million

83

such

policies out¬

two
had 3
ipension or annuity in 1928. Social
security was
unknown.
Today,
considering dll types of life insur¬
ance
policies and annuity con¬
tracts, there are .1.6 policies for
every American or,- on the aver¬
age, -five for every family.
The

standing,
persons.

ohe" for

or

Virtually

no

.tremendous:, resources

every

one

of

the

life

insurance companies and the noninsured

dividends

were

also

paid,

in

and

10%

pension -funds

that have

veStment funds in the stock mar-

in 1948.

The company is involved in the "Memphis case" and has noti¬
fied

the FPC that it will "freeze" present operations, as they,
pertain to wholesale customers of interstate gas, until the Supreme
Court hands down

a

strong

an

Oct.

were;

application with the

allowed to go into effect

1, 1957, subject to refund.
United States Supreme Court earlier this,

The
down

a

price orders
The company has been

dicated.
company's dividend policy has been somewhat irregular
recent years, with changes in the quarterly rate and extras
The

in

today havC resources totailing' about $290 billioq. Some
pertinent statistics abouj; them are
given on the data sheet left at
your seats.
' .
-

ruling which nullified minimum well-head

by the Kansas Corporation Commission.




institutional

process

handed

paying under protest the purchased gas cost and royalty increases
resulting from the minimum well-head price order. The impact
of the decision on past and future payments has not yet been in¬

the

—

-

:

year

Which

buyers, for various reasons prefer,
The principal savings -institutions
these private intermediaries in the savings and investing

an

reported earnings, although they

and; in- the* relatively
market for the blue-chip

stocks

increase in wholesale rates of $650,000 a year, equal
to about 33 cents a share.
The increase is being excluded from
for

FPC

growth of life
ments, obligations of public utility
companies and railroads, otyliga- .insurance and retirement plans
have made these institutions tretions of manufacturing concerns,
'mortgage dbligartions on homes, .mendous forces in the investment
.market.
'
r
'• »
farms and commercial real estate
—all of which we consider "inInstitutional Investment
vestment'/versus short-term com*
Preferences' -v
mercial, self-liquidating credit of
:
Most
life; insurance
company
the type made by banks.
.and pension fund investment de,
1
cisions are
madg by people who
"
Savings Institutions Vital
know and prefer to invest in se¬
I think .it may safely be said
that these financial institutions curities, either bonds or stocks,
and who do not. really understand
have grown up. in answer to a
"definite economic need.
To put or like to invest in. mortgages,
this concept - "democratization of even .FHA insured mortgages.
I know that insurance compa¬
savings" into the frame of refernies are a big factor in the home
ence commonly used by businessmen, we tapped the mass market mortgage market, but the mort-

'market,

decision.

On March 15, 1957 the company filed

of Federal, state and local govern-

ket, giving constant support to the

*Stock

,

We find that these financial intermediaries of three big segments
or

types

The

and

one

largest group

small segment,

consists of de-

posit-type institutions—the savdepartment of
commercial

ings

resulted

from

•

'*

.

,

this

.

.

Volume

188

5776

Number

The

...

Commercial and Financial Chronicle

(i62i>
is

savings,

choice

investment for most life insurance

and
loan
associations,
known then as "building and loan

companies,

associations,"

gage

'

actually

second

a

to.be

made

the

after

:d6.vyii ,rii\^Philadelphia

tiVe

with the

compared

other

yield;on^viiTen' the^ first savings

investments.

In

the

banks

same

asspciatibii;-^vas

and
to

started

eornmerc'ial^yi^ .means, for

th?t.; hrea to acquire
Even in the 1920's most

prefer. short-term

and

1831
loan

tion.

pro-

such

■

ruiito

te

onlv -invest

and

iiiitiruhI

'

in

in

-

tLon

as

a

first

sten

true

savers

loans that .sayr;

consumer

and

loan

people,
think of acquiring.. •

.Savings
as

ond-ffpor

club

or

services .of

>

for

to

as

in

savers

in

savers

savings

i

t

These

same

reasons

As

or

the

ings* and

a

as

these,

the

ors,

only

is

the

them,

1865,

district

to continue

a

at

over

mem¬

the

30

firm

leave the

at

4th

arid

years agQ

general investment

1528

until the present.

a

Walnut

Street

..

;
Bioren & Co., maintain mem¬
berships on the New York Stoq|k
Exchange, Philadelphia-Baltimore
Stock
Exchange „. and,: ^pn,, the
American: Stock Exchange. In ad¬
dition; to a general brokerage ahd
investment business,! the firm,is
actively engaged, in undenvriting
of corporate and
municipal secu¬
,

investment, fund.
companies,

lifeinsurance

important
living ex¬

in

of the first to

financial

business

Thus the

obligation, and that

mutual

one

Chestnut Streets
_

one does not have a dol-V

lar for dollar

"

most

old

saver's dollar ready for him.
Of all the institutional invest¬

.

Exchange

are

Established

the

general living ex¬
pay medical bills, to

firms

was

savings and
loan association is
always to> have

The

Of-

with

them.

prime objective of

meet

V

placed
011

Pa.-^Bioreh

of Philadelphia's oldest

Walnut Street.

investors than
individual. Most finan¬

were

one

celebrating their
93rd Anniversary and the
open¬
ing of new offices Sept. 8, 1424

dealing with other people's
in a trustee capacity are

plus earnings

Co.,

ber

conservative

rich

lars

associations, these
frequently cited rea¬

travel expenses:

conser¬

•

sav¬

to

more

•£■}uSl inifirbO? Of' dol—

downpayment on a home,
a
car, for vacation and

a

buy

&

New York Stock

institutions have
as
their
prime
objective
returning to

money

penses,
to

93 Years inWIa.

cial

not

make

Celebrating

PHILADELPHIA,

.

money
the

and

Biorea

Financial institu¬

more

-

of

banks

the

tions

loan

To

sons:

made

use

from

the most

are

locations

one

to

withdrawn

P.

vative investor.

loan

may

J.

slanted toward

011

banks

and

associations.

wouldn't-tp^large and attractive financial
officesi-y manageriady from the

and. loan^associations.': part.,.time

much,

so

downpayment

apply when savers come to get
honip:t«w thsir ITxGriC
jr.*?srfl*»o4-

toward

room

both

and

-

ings

or

as a

of

Brothers of Salt Lake City.
It also means that
your finan¬
cial
planning will have to be

not

house, the purchase of durable
goods,
and
vacations.
This
is

Most commercial bankers.
do; notr^.P^nership.,,,^ ^
,'v like long-term home mortgages as.
Although the term; "building
ari investment of the banks'funds,, and
:loanv still persists to.' sohie
even its savings funds, :and
ifgiV-r degree^:the character of our instieri a choice will 'alinost' always' tutioiVshas
changed, tremendously,
prefer short-term loansr.eveh'non- - .physically .from
one-ropni*. ;.§ecsecured

things

but

save,

personnel

Company,
Kuhn,
Company, N. W. Harris
Company, or the Walker

and

a

mort-

jliie "rponont

also

frequently

so

savings and loan associations were
gages as a second choice. This is ^^-lAhersof a small community
not true, I realize, with the Bank,:&roUP .Who bought serial shares
of, America, but that great bank ih the:,building and loan, associa¬
loans

People

the
and

Loeb and

seem

saving for old age, for emer¬
gencies, and for children's educa¬

home,
in

a

powerful

know

Morgan

to be

working people

essentially commercial .Ah

are

lenders^

",u*

wayA,

in

to

different

most common and

; attractive; investments in securi-^lJothopd cooperatives, not far adtie's have been made and only if .vanced from the basic tenets set
the: yield on mortgages is attract

,

We find that people have
many
reasons for
saving. The

-

.

small ..neigh-

were

21

know,; invest almostA few .people to. skilled business ex- are to
pension funds, banks and savings
meet
general
and
wholly in first mortgage loans on ecutives and an experienced staff:
loan
associations, all have rities.
penses and medical bills.
,".:
single family homes. We do this financially, from assets of $2\->
fixed dollar obligations to their
; This is the case, of course, with
in part because the law points us
billion in 1920, $10 billion in 1946, so-called
savers and policy holders.
As a
"passbook-type savings."
iit that direction, in part by tra-*Ato:$50 billion today. - *i
Form Variable Inv. Plan
result, their investments will be
r.:;: The other great forms of
savings
dition, and in part because vouf-' ' The -growth of several of the
largely in bonds and fixed dollar
(Special to The Financial Chronicle)*
are insurance
company and pen¬
people know and understands and mother types of financial intermedobligations.
sion fund savings.
CHICAGO, 111. ~ Norman D.
These clearly
like horrie mortgages as an invest-You cannot expect that: there
iaries is almost as startling and are for old
Finkel is engaging in a1 seeilrftifca
age and family emer¬
ment just as the.managers of most:
will be any great move to author¬
spectacular:
business from offices at ,19
gencies. iv
South
ize
pension, funds prefer marketable"
banks, insurance companies La Salle Street under; the
We
find
that
a. good
firm
saver
securities.
and savings and loan associations
T
•
Government's Role Favorable;
name of Variable Investment Plan
knows how to save and tends to
to invest in common
Public policy has permitted and be a rather consistent
stocks, or, if Co.
saver.
He
Multiplicity ot..Institutions
even
they were so authorized, that a
encouraged the development knows that he must save
regu¬
It is in part because of this fact
of seyeral types of financial instisignificant portion of their funds
larly and that he must resist, or
Forms Gilbert Inv.
that various types of investors
would be so invested.
by. ,.tutionsv It certainly has refused at least
postpone, the purchase
Time does not permit any fur¬
tradition^ and preference invest in to give any one type of institution of
SOUTH PLAINFIELD,
Nf J.-non-essential
items.
He
be¬
different ::types -of securities and a
ther elaboration here.
The point Paul N. Gilbert is engaging in a
monopoly .in this field,
lieves that even an
urgent need
obligations that I think it is for-;;ft
no "secret, of course, that
simply is that more and more securities business from offices jat
for things
is a poor reason for
tpnate that we have-a miiltiplielty 'the commercial banks have rethe users of capital—that is, busi¬
2425 Plainfield Avenue under the
not saving, and he believes that
of financial institutions and that rented and-.resisted the
nesses
and
governments — will
develop- everybody can save if he tries. He
firm name of Gilbert Investment
have to reckon with financial in¬
public 'policy has permitted, even... ment of the savings and loan busibelieves that the non-saver has
Mr. Gilbert was previously
stitution
executives
in
encouraged, the development of ness.
their Co.
This is somewhat natural
only himself to blame for not
a number of
search for money.
with Berry & Co.
types of savings and
because one business group never
you

may

,

.

;

.

,

v,

,

•

ix.

-x

x.

x-x

,

x.

saving.

Onge

the

has

saver

mastered

the

simple secret of savings —
which is merely not to spend ev¬
erything he has—he cannot blame
will also be resisted

disc,

so;

....

.

:The

mercial vbaiTk

department
-

or

the

.; The

mutual

finance^ .of-

make

era

the

should

ments

for .-the

credit union

itlv/i

qj*

places

start

to

.fot invoefnaent qf- relativc-

means
fi4*<sii

s

not encouraged the development
qt different;ihstitulions, we, would

a

r\

f»i^

1

.

Ao /4-

m

>

1

1

c*f

A'f

4-

<4;l-k

ir*

«*«4 h

v«

of the

;

sav-

when

or

will

it

be

is

for

to

is

some

whosg

you

people

urge

to

Maybe
psychology

save.

reverse

\

It would

can.

and certainly
peal .to,them on a.different,not,the .great volume of Savings
example, if an,individual (ic^. aA-ailable to meeti the great and

as

be a great tragedy
country if Americans lost

our

their

will

the

to

result

as
they might
great inflation.

save

of

a

.

sire& absolute safety ahove every?;

wide variety of the capital

thing else, there
him

bonds and. Postal
safer

no

saviogst.There

investment

in

c.

the

We have

the

world,' of course, than hie fixed ;
dollar, direct obligations of the
United States Government., If a.
saver
desires
almost 'equivalent
safety but a somewhat higher re-

now

reviewed

a

their

save

increase

type savings

investment

in

versus

to

of

means

that

When

he

or

a

wante

commercial

to

take

as

n

Record 180,721,000 pounds of
aluminum foil rolled in 1957—

greatest supply at attractive
prices in the financial institutions

most of it on Blaw-Knox Mills

investment

funds

you

'the

direct

the

American

loan

saver

associations.

The

financial

want

to

some

As fast
up

as

versatile aluminum foil

by supermarkets, food

departments
looks great

—

and

for foil

"ance
many
more

As ryou know.
life insurance contracts are
savings contract than incompany.-

a

surance.

.This

'

"broad

;

What is it that motivates
_aon

a

per-

not to spend all that he earns?

What makes
The

a

United

saver?

States

of mortgage loans

source

mercial
and

and

that

industrial

pension

have

a

considerably greater proportion of

Savings and

their

resources

invested

in

of financial Loan League twice has had con- •equities 4 than
do
the
life
in¬
developed es-,ducted motivational surveys on surance companies.
It will be as
sentially in the years after World this basic question and the results important that you become ac¬
War I, reached adolescence fol¬
give real clues as to the reasons quainted with the investment of¬
institutions

lowing

the

maturity
Prior

to

If

your

are

gobbled

home-builders, defense

long list of industrial

users.

The future

and for Blaw-Knox, the World's leading

helping American enterprise build" futures.

company

is concerned with rolling

metals, with road building,
munications

on com¬

property;

funds

be produced, it is

Throughout industry, Blaw-Knox equipment, engineering
and research

*

(

a

—

can

processors,

builder of foil mills.

.

^

integrated oluminum plant at
of over 115 aluminum foil mills built by Blaw-Knox.

need
will find
you

the banks, insurance companies,
industry by the
people and seen a lit- " pension funds and savings and

giso

We

one

everything from heot-'n-eot meafs
new

more

'executives
of
our, corporations
explore, of ;will have to know more about the
course, the significance of all this 'functioning
and
the investment
risk with his capital and invest Jn
American corporate business preferences of the various finan¬
in the stock markej, the mutual
.financing, but before we do that cial institutions. They will have
investment funds are available 1o and in order to have the entire
;to know, for example, that sav¬
him. 1
'
;
;.v
picture, we ought to look just for ings and loan associations deal
For one who has to,, be forced
a few: minutes at the reasons why 'almost
exclusively in first mort¬
to
save
and- wants
to. combine people save money.
•
gage
loans on. homes; that life
savings with life insurance 01;'an
'insurance companies are the chief
"
"annuity, there is the life insurs
Why People Save
association

bank. "If

radiators roll from Kaiser's

Ravenswood, West Virginia. It is

American business will

capital.

car

in

.turn -aikl
considerably
greater American
.xonveniehce,; he is offered: a. saVrxitLe of what
ings account in a savings .and Jooks like.:

loan

and

financial

these

financial institutions
of

source

the

institu-

more

look

coun-

noticed

money,

growth

intermediaries
and

look at where people

tremendous

tional'

The

bit of

history of savings in this

try, taken

Significance to Businessmen

needs

a

WRAP IT IN MIRRORS. Miles of aluminum foil for
to insulation

of the country through the mechanism of a free market.,

are available to
United/States Governments

'

driv¬

It is fortunate for all of us that
savings habit is pretty well
engrained into the typical Ameri¬

to

is

often

the

the

jSbA^^ric^ti^ people,

..flor

is

that you could use!

the

of

purchase

and

children

as

buy rather than to

Stlfll,

investments

postponed

save

business

the

Federal Government had

which.provide

the

can-

I don't know what good that in¬

there

nimit^fuiicijs

be

formation

therefore,: gets the

"•b

that

items

they first start to work.

right

at

has

*

Of eijfl —

chance"

and

save:
he

save

ing force behind individual' and
family savings: 'Most good savers

tage dyer us because of the existence of, payroll
savings arrange.

aot

hot

realization
such

advan-

some

does

does

"of

,

specialty> SK6i>s:<Sucte^ "savings Credit' uniqhs have

\rirla

"some-

'to^ouf people^ as we compete frequehtlythe
same
money.

the

he

guilt feelings.
The
knowledge thaf there is no real
urgency about non-essential items,

employed
sales practices
that have been at least frustrating

ahd loah associafiohS whicli offer
ortly. savings, accounts and hoi,we
lOarrst credit 'unions:-which pro-

;

have

funds

he

considerable

times

^typer "of ••d.rnancial

,..seryires/.^ri^vt^

/
,

store

most

com-,,

-

iV; .ih :a;. Way

if

when

..

banks

.

y

>

others

.by the commercial
andt no doubt, by some of
thej;.e a variefV of TifiOur people a| well,
,,

b ^handlebnly one type of wei%4iaii-

you

—

or

fabricating

chemicals, processing of

Blaw-Knox is the forward-looking

com¬

company

want working with you. Our brochure, "This Is Blaw-

Knox,"

describes

our

products

and services

for industry}

Write for your copy today.

group

were

great

after

deoression

World

War

and

II.

the. 1920's, for example,




why people save and

differences
and the

between

non-saver.

some

the

of the
saver

ficers

of

nancial

quite

a

number

institutions

years ago

as

it

of
was

fi¬
50

for corporate executives

BLAW-KNOX COMPANY
1211

Blaw-Knox

Building • 300 Sixth Avenue

Pittsburgh 22,

Pennsylvania

22

The Commercial and Financial Chronicle

(1022)

Nelson Chman of

Bank and Insurance Stocks

...

Thursday, September 11,1958

Navy
Our

League Convention

Reporter

Governments

on

PHILADELPHIA, Pa.—W. Lin¬
By ARTHUR B. WALLACE

ton

By JOHN T. CHIPPENDALE, JR.

Nelson, President of Delaware
Fund,

Fund and Delaware Income

This Week

Insurance Stocks

—

companies report on their half-yearly

operations at the mid-year date, enough of them have issued in¬
come accounts to give us a clear idea of how things went for the
fire-casualty industry. And, a sufficient number of large units
reported to give us a good cross-section. As is customary with
the group, there were a number of specialist companies whose
contribution to industry results weights the scale somewhat on the
favorable side.
*

vention which

will be held in
P h i

.

May.
During the

Phoenix, which are for group.

\

•

■

>

Agricultural
Glens Falls

19

CG.7
GO.7
G9.1

Union

„

Prov,

65.3 /

;d

Wash.

63.0

•

G4.7

-

-

43.1

44.2

62.1

39.4

G1.9

Pacific

Insurance

Y

—

'

—

63.0

41.2

G1.9

62.1

39.4

38.8

GO.5

58.7

34.4

34.8

&

,v

.''

v.

—

+

8.8

5.5

...

+
.

4.1

1.6

—

1.0

—

4.3

—

1.3

0.9

+

5.1

6.5

-

22.8

G7.3

Fire

Merchants

Camden

—

Fire—

59.2

39.7

% :

39.3

4,4.7

••

'Y

44.0

•

—

—

Y—

40.9

G7.4

66.0

40.4

72.4

06.0

40.5

Cas.w

67.4

68.2

31.8

,:30.9

Fireman's-Fund-

62.4

63.7"

41.1

41.0

American Insur.—
American

Auto—

Continental
'

68.8

62.5

Fidelity & Deposit

Reinsurance

Hampshire-

57.6
56.8

Insur—

39.8

1Y

+

0.7

3.1

-

42.7

65.5

"",43.3

+

6.0

—

-

sinking fund be¬

any

time

prices

at

41.7

—

—

7.4

9.9

—

program

2.5

—

9.2

.

for

will

This program

1958.

estimated

involves

2.(i

other

the

time

same

loans of

the member

off, contrasted with

banks in

New

York

63.7

-•

—

7.0

—

7.2

expenditures

and its subsid¬
approximately $82,000,000
consists of an expansion of its

the

by

the
companies that, we might say, (almost make a habit of doing well
in underwriting. As to the less satisfactory showings, there are
enough companies going more in the red in underwriting largely
to

offset

performances for the 1958 half are, as a rule by

those

therefore

City

>
-

f
'

were '

increase in loans at this

time last year.
The trend of discounts and advances at the Federal Reserve Bank
an

-

''&■

of New
'

York, and decline in loahs' among the member banks iii '+
this area, probably explains in some measure the' holding of ther'
discount

-

The

w

1 n/- M •x™

..

.

impending

•

1

L

*

V

*

»

-

-

Vl,

-

•

...w

.

- ; v

-•

financingby thd .Treasury is the subject of considerable discussion, among, money market; special- ' *
ists and, in spite of all the talk that is being hegrd, it is; the ^
-

consensus

Some

new money

that it will be in the short-

market followers

or

intermediate-derm range.

of the. opinion//that the new
money operation of the Government will be confined entirely to v
a short-term issue or issues. The upward trend in
yield of Treasury
money

are

bills

seems to indicate that the gradual squeeze on money rates
continue, and this most likely;means that the Treasury will/
have to pay more for the funds which will be borrowed in order
to meet the deficit.
'
^
Y
X:
'
.

will

-

.

purchases of Treasury bills by institutions that
liquidity purposes,, and the commitments by
others in them for protection against higher interest-rates and'tighter credit conditions, the return on the most liquid Govern-':
ment issue is expected to continue to advance. This will in time ^
bring about a higher discount rate for the Central Banks of the!

must have them for

company

'•

System.

'

""

•

'

'

•.

iaries of
The best

'

In spite of the

.

complete the financing required
for
the
company's
construction

2.0

,

Discount Rate

hand, discounts and advances of the System have
slightly, indicating no rush by the member banks: of the
system to borrow from the Central Banks at the discount rate**,*,*
In addition, the discounts and advances of the Federal Reserve
Bank of New York, last week, were down' sharply, while at thq

:

but are otherwise re¬
the option of the

at

on

Normally, when Treasury bills go to levels that are in excess
the discount rate this fact generally results in an increase in '
the Central Bank rate, so that this rate is above the rate of return '••••
available in the shortest and most liqpid Government obligation.

at

company;

rate, with rumors going :

declined

scaling from 1051//2% to par.
Sale
of
these
securities

V

3.5

—

»

7.5

43.4

43.8
42.0

4.7

of

of

ginning March 1, 1961, will retire
approximately 95 % of the bonds
prior to maturity. For a period of
five years the bonds are not re¬
fundable at an interest cost of less

0.9

\

in- in¬

now

The Federal Reserve Bank

jumped to 214%.

The Usual Pattern

proximately 5.71% to maturity.

6.9

—

2%.

of New York would increase its discount

pipe line bonds, 5%%
series due 1978, were offered yes¬
terday (Sept. 10) by a group of
underwriters headed by Dillon,
Read & Co. Inc. at a price of 99%
and accrued interest, to yield ap¬

deemable

that six of the Central Banks have

around that it would be

$35,000,000 Texas
Transmission Corp. first

than 5.71%

means

discount rale to

however, did not increase its rate, which still remained
There has been considerable talk that the Central Bank

at 1%%.

of

A semi-annual

sure tightening of the
money market
raising of the discount rate by the Federal
Chicago and Minneapolis, last week, from 1%%

the

New York,

mortgage

6.9

+

V

the

On

Transmission Bonds

3.2

—

.

0.3

—

38.7

59.1

0.8

This

creased

Offers Texas Eastern

8.1

—

to 2%.

appointed a Rear
He holds the Legion of

Eastern

in

■

>.

—

__

—

7.8

—

4G.2

59.S

67.2

—

-

Phoenix

7.2

3.5

39.5

46.3 ,;

687

66.1

Insur.

43.1

55.8

V

+

38.1

Y

64.0
•

67.7

Accept—

Continental

Fidelity... Phcnix

41.4

55.9

58.3

New

Standard

—

,

indicated

Reserve Banks of

*

Gen.

Northern

7.0

—12.9

40.9

-

-+15.1

+ 22.6

57.6

54.6

27.3

-

ther evidence of the slow but

is

Dillon, Read Group

1.2

+18.2
—

—1.3 ■■■%,
■'Y~ 6.4

41.3

G5.2

Ship-

Insurance

;

2.3

;

"

0.5

—10.1

+38.1

v

.38.9

..

Insurance-

Aetna

Bankers

Federal

2.8

—

were

dation Ribbon.

4.0

—

7.1
5.6

.-r.7.7

-4 42.5,

57.4

G1.0

&

Y43.0

—

Y—

*

37.8

Crty.

Fid.

S.

43.5'

'35.5 ; '

very

serve

Merit, Bronze Star and Commen¬

5.4%

+

0.4

.!"• rrr' 5,4

36.6

:

43.6

38.2

U.

'

'.vi

61.0

20.8

Paul F.

—

38.0

64.3

.St.

36.0

a

and in 1955 was

1958

—

market, even though this operation is being carried out in
deliberate fashion. The free reserves of the Federal ReSystem went down again last week with the result that they '
the lowest they have been since the middle of January. Fur¬

money

>

firm but maintained
interest in the Naval Reserve

issue

the money '
Y*Y':

on

v

•

The monetary authorities continue to keep the restraint on the

Nelson

investment

8.4

39.7

—

4.5

—

%41.1

& M,_

Seaboard Surety—

*

-—

""'35,5

74.6

70.1

New Amsterd. Cas.

40.9

41.4

36.3';/
""42.3-".'

63.9

G4.1!

Cas

Maryland

/

61.2

.

9.2%'
'•

40.5

41.7

.

66.3

/

Linton

his busi¬
ness, he returned to active duty
with the Supply Corps in Phila¬
delphia,
North Africa, Italy,
France
and other parts
of the
Mediterranean,
and
finally in
Washington, D. C. where, with the
rank of Commodore, was Direc¬
tor of Operations of the Foreign
Liquidation Commission.
In August, 1946 he rejoined his

Admiral.

yyy'

■■

The uptrend in

pressure

Monetary Restraint Continues

In

40, on a
of absence from

an

Government issue.

;■

escort
Sea.

leave

-Profit Uor Loss)—»
Margin •',/%/

43.9%

.-.45.3%

■

63.1

(J4..0

.1 5

Ins. Co. No. Amor.

National

61.5%r

63.9tf

Inr>.~
—

Insurance

Home

on

duty over the
North

-

available in Treasury bonds.

market.

convoy

the restricted side.

raising part of its needed new money through
the sale of Treasury bills, with $100,000,000 a week being obtained

Air

An

■1

are

yield of near-term issues is keeping the

:

1957

those that

are

from the sale of the shortest

force

on

The Treasury is

with the Naval

,t

«>*:

than

World

War, Mr. Nel¬
served

YY/'Y;

1958

1957

1958

"

■

r

to Prem. Written

to Prem. Earned
1957

•*; .**.

■'

...

Expenses!Incurred

Losses Incurred
,

Y

;

very much

son

•••

and

ladelphia

in early
first

breather, with volume

a

coming new money raising operation of the
Treasury is having an influence on the current action of the mar- >
ket for Government obligations. Also, the large volume of new corporate and tax-exempt bonds that are being introduced for sale
is providing Government bonds with plenty of competition because
th»-ithsse-ese+Hpities-are raueh-raerg
toi a " ~

National Con¬

portant in size showed some improvement

.

taking

It is evident that the

1959

League's

There was some

in their combined loss
and expense ratios; some showed up even worse than in the 1957
first half. Fire losses continue, on a 12-month basis, to run ahead
of the previous year; and while numerous rate increases in the
lines have been granted around among the States on automobile
categories, most of these categories continue to plague the carriers.
If only our motor car operators were as careful with their
driving as they are careful to prevent, let us say, the burning of
their homes, the insurance companies would be profitable with
their underwriting!
Fewer accidents would mean fewer repair
bills for the insurance companies, and there would be fewer outragcous jury verdicts in which the carriers would be the victims.
However small the improvement in the 1958 first half under¬
writing showing was, it was headed in the right direction.
In the investment part of the business there were better re¬
sults to act as balm for the harassed underwriters. In a group of
nearly 100 units listed by Alfred 1VL Best Company, Inc., a leading
statistical organization in the insurance field, investment income
was, for the half, about 0% greater than in the like period of
1957. Further, whereas the sharply lower stock market in 1.957 had
piled up serious portfolio depreciations among the companies, the
1958 first half has gone a long way toward balancing out that
shrinkage; and in many cases the paper losses were more than
wiped out. More of that later.
There is given here for a group of the more actively traded
stocks their loss and expense ratios, 1958 first half versus 1957 first
half; and the underwriting protit or loss margin. In a majority of
vcases, loss margins are the rule, albeit of less severity than a year
earlier. The data is for parent companies only, except for Home

General

f

o

Navy

the

,

improvement in underwriting results, but by
no means such as to cause us to change our stance so far as buying
recommendations are concerned. A majority of companies im¬

appointed

recently

was

Chairman

While not all insurance

The Government market, although still on the defensive be¬
cause of the gradual tightening of money and
credit, appears to be

seems

and
gas

rang

system

by

100

million cubic feet of gas per day,
other

improvement in the 1958 half. It
hard to justify any great expectation of better

that

transmission

up

and

gas

transmission
to
the

additions

facilities

products

transportation system.

results for 1958, unless, of course, there is a marked improvement
in the second half. Thus far, this department sees no pronounced
indication of this.

Upon completion of this expan¬
sion program, the company's nat¬
ural

gas

increased

system capacity will be
to 1,860 million cubic

\

'

Long Governments at Yield Disadvantage

feven
up

r*

v

though yields of long-term Government bonds have

sh^t-ply, and this has resulted in

institutional investors,

these securities

some

gone

minor purchases by

a competitive
The uptrend in
yields of non-United States Government obligations have reached
levels that are now attractive to institutions and they are buying
these securities in sizable amounts, in spite of the fairly ample
supply that is coming into the new issue market for sale.

are

not yet in

position with corporates and tax-exempt bonds.

feet per

Form

Carr-Rigdon Co. Formed

day, including deliveries
from its gas storage facilities.
Among those associated with

Porter, Noyes, Inc.

CORPUS CHRISTI, TexasWASHINGTON, D. C. — CarrDillon, Read & Co. Inc. in the of¬
Noyes,
Inc.
has
been
liigdon & Co. has been formed Porter,
fering are: Morgan Stanley & Co.;
formed with offices in the Driscoll
with offices at 1129 Vermont Ave¬
The
First
Boston Corp.; Kuhn,
nue, N. W. to engage in a securi¬ Building to engage in a securities
Loeb & Co.; Blyth & Co., Inc.;
ties business. Joseph O. Wall is a business. Jonathan H. Noyes is a
Eastman Dillon, Union Securities
principal of the firm.
principal.
& Co.; Glore, Forgan & Co.; Gold¬

OVERSEAS

NATIONAL

man, Sachs & Co.; Halsey, Stuart
& £o., Inc.; Harriman Ripley &

AND

Co.

Christiana

GRENDLAYS

Securities Co.

BANK LIMITED

PREFERRED

Amalgamating National Bank efjbuBa M.
and Grindlays Bank Ltd.

M BISHOPSGATE,

Chase International
The

Doit

appointment of Russell H.
as
vice-president of Chase

International Investment Corpora¬

tion,
wholly-owned foreign fi¬
nancing subsidiary of the Chase
Manhattan Bank, was announced

—

Sold

—

LONDON. E.CJ

London Branches t

Quoted

IS ST. JAMES'S

SQUARE, S.W.1

§4 PARLIAMENT STREET, S.W.1

Laird, Bissell & Meads
Members New York Stock

Exchange

Members American Stock

Bankers to the Government in: adfn, unya,

Exchange

120 BKOADWAY, NEW

V9ANDA, ZANZIBAR A SOMALILAND PROTBOTORAM

Branches in:

YORK 5, N. Y.

Telephone: BArclay 7-8500
Bell

Teletype—NY 1-1248-49

Specialists in Bank Stocks




MMA,

PAKISTAN, CEYLON, BURMA, UNPA* )

TANGANYIKA. ZANZIBAR, HQ AND A.
,

.

AMN, fOMAULAND PROVECTORATR,
WRTBKRN AND SOUYHttBl

,

velopment supervising operations
in Japan and Indonesia, and the
resident
ran.

•

representative
'

in
-

'

•

Tehe¬
"L.

Chicago Inv. Analysis
Annual Outing
-

-

Bought

Bank for Reconstruction and De¬

Inc.; Kidder, Peabody & £0.;
by Robert H. Craft, C. I. I. C.
CHICAGO, 111.—The Investment
Freres
&
Co.; Lehman
president.
Analysts Society of Chicago will
Brothers; Merrill Lynch, Pierce,
Following World War II Mr. hold their annual
outing at tha
Fenner & Smith; Smith, Barney
Dorr served with the rank of Min¬ Itasca
Country Club on Thursday
& Co.; Stone & Webster Securities
ister as United States delegate to
Sept. 11. Golf, tennis and other
Corp.; White, Weld & Co., and
the Inter
Allied Reparation
sports will be featured. Tariff for
Dean Witter & Co.
Agency, Chairman of the Inter¬ golfl and dinner is
$11.00; golA
national Commission for Restitu¬
only $5.50; dinner $5.50.
Form N. C. Roberts Co.
tion of Monetary Gold in Brussels,
(Special to Tns Financial Chronicle)
Members of the Committee ara
chief of the Marshall Plan Mis¬
SAN DIEGO, Calif.—Norman C. sion to Turkey, and general coun¬ George K. Hendrick, Jr., Blunt,
&
Roberts Company has been formed sel to the United States NATO Ellis
Simmons,
Chairman;
.with offices at 625 Broadway to Ambassador in Paris.
Roger K. Ballard, Jr., Glore, For¬
engage in
a
securities business.
During the past five years Mr. gan & Co.; Robert B. Bruce; J,
Partners are Norman C. Roberts Dorr has been a senior member Gayle Slomer, Blunt Ellis & Sim¬
of the staff on the International mons: and John C. Weiner.
and Helen M. Thompson.
Lazard

Head Office!

COMMON

R. H. Dorr V.-P. of

Volume

188

Number 5776

.

.

The Commercial and Financial Chronicle

.

(1023)
ing, payable

on

of record

Sept. 19.

Oct.

*

News About Banks

The

1, to holders

outstanding.

Franklin National Bank of

v

Island,
Franklin
Square,
York, with common stock of
$14,077,000; and The Central Islip

By-

New

Bankers

and

OFFICERS, ETC.

REVISED

CAPITALIZATIONS

with

stock

common

as

of

merger

Commercial

State Bank and Trust Company of
York
and
Bank
of North

this column

New

America,

approved

by

the

New

*

*

continue

as

D.

r

'
.

-

John

close

of

business

consolidation

!i«

.

*

ef¬

S:

By

Chairman

«

stock

Sept. 2 at

;

Richard

C.

Excelsior

Bain

will

Savings

join

Bank,

the

*

if

,■

til

\

s;:

'

;

ident of
Bank

York,

Hughes,

and

Dr.

Chairman,

that

Company

Mr.

proposal

our

New

York

structive
better

to

form

both in the provision

banking

services

to

Island's

Harold

became

of

rector

the

Fort

State

Banking Department
Deposit
Insurance

Corporation becomes effective
of

the

with

start

the

Bank

business

combined

operating

North

in

within which

America,

New

abandonment of

Leichtman, President.

jective

of

no

our

becoming

of

The

brings

merger

into

which

being

institution with assets of

$150,000,000
and
twelve
offices
throughout the city. Prior to the

consolidation,
Bank

Commercial
totaled

resources

000,000.

Bank

showed

of

assets

over

North

can

lieve

$120,-

Under

563

will

is

issuing 470,-

share, to effect an exchange
3,617 shares of new stock for
share

Bank
each

of

stock

and

share

America

Commercial

of

million,
it

serves,

The

for

Bank

North

of

the

are

in

not

including
reported by

was

of

Board

of

Albert C.

re¬

Mr.

of

holders

E.

If

Board Chair¬

of the merged banks.
of

North

of

America, is Vice-

of

Bank

of

Director

increase

in

dent

of

the

the

of

Runyan,

recommendation

by

stockholders
State

York

Banks,

80,000
as

is

is

ap¬

and

the

shares

will

stock

for

subscription
in

stock

the

America, occupies
position in Commercial

the

the

of

one

giving effect to the

dividend

distribution.

Vice-President

the

of

R. Har¬

been

officers

Executive

retained

in

the

continues

office

at

116

at

a

later

a

dividend

of

plans to

$2.50

per

share for the last quarter of 1958

merged in¬

the

be

have

outstanding

the

of

the

Fifth

bank

are

located

in

Manhattan, Bronx, Brooklyn and
Previous

for

/

articles

appeared




in

Spring¬

joined the

270,000

proposed

of

tional

died Sept. 4 at the age of 82.
Cook
was
President of the

7%

over

dend rate

increase

of

the current annual divi¬
as

adjusted.

The Board of Trustees also de¬

clared the regular quarterly divi¬
dend of $3.50 per share on the
160.000 shares presently outstand¬

Third

its

title

and

Trust

.

,

structure

Mr.
old

National

First

•/

Bank

111.

title

to

capital stock of $275,-

First

National

Bank

Bank

of

been in

to

'"if

?•••

•-

■

$300,000 by sale of new stock,
Aug, 21.
(Number of

effective
shares

outstanding, 30,000 shares;
value, $10.)

'

i

l

The

;* fc

'

']:

if

First

National

efforts

The

common

000

to

$200,000 by a stock divi¬
effective Aug. 28.
(Num¬

of

shares

shares,

1949, has

outstanding—2,000

value $100).

par

if

who has

pany,

and

Pittsburgh,

in

Trust

Pa.,

the

Mellon

of

Com¬

Frank

Vice-Chairman
Denton,
bank, announced.

of

been

R.

0

Northeast

National

Bank

with

career

Mellon

Bank

in

1952. At that time he

was assigned
Planning Division of
Department. In May,
1955, he was appointed an Assis¬

Trust

tant Vice-President

in the

responsibil¬

assigned

to

■

correspondent

commercial
in

new

and

bank and

business

originating
Northwestern Ohio

Michigan,

000.

-

By

a stock dividend, the com¬
capital stock of The Lubbock
National
Bank, Lubbock, Texas

increased

was

$1,250,000,

$1,000,000 to
August 22.

(Number
outstanding*,
125,000; par value, $10.)

business

Detroit

in

which

Metro¬

will

con¬

E. A.

Anderson, Assistant Man¬
of The Bank of California's

ager

Seattle

by the bank's
City Division, under the direction

31

of

service

Ellis

B.

President.
continue

Merry,
Mr.

to

Senior

Adams

supervise

Vice-

also'will

the

inter¬

national Department of the bank.
The other new division, which

headed

by Robert M. Surdam,
Vice-President, is responsible for
all correspondent bank
mercial
other

business
of

areas

The

United

com¬

all

States.

Office,

after

47

with

Office in 1911
has

Bank

of

has

com¬

nounced

:Ii

(Number
—

750

of

in

Bank

Canadian

of

Sept.

Alaska

Com¬

was

Wichita, Kans.,

$

if

of

Bank

Effective

$720,000 to
Aug.
29.

Com¬

main

sinco

Region, with headquarters
Halifax, Nova Scotia. He suc¬

ceeds

will

of

branch

superintendent of the bank's At¬
at

stock

Unwin, Manager of

Toronto

lantic

100,800 shares, .par value $10).
capital

announced

1956, has been appointed regional

(Number of shares outstanding—
if

Can.,

Toronto,

that George S.
the

an¬

9.

Canadian

The

from

was

TV

of

Toronto, Can., it

merce,

merce,

common

active

been

shares,

stock dividend, the com¬
capital stock of The Union

The

he

sj:

a

$1,008,000;

department

1929

The Hon. John Valentine Clyne
has been elected a Director of

fective

increased

In

for many years as the bank's rep¬
resentative in that territory.

The

Aug.
27.
shares
outstanding
par value $100).

messenger and

a

every

Assistant Manager.

capital stock from $50,000 to
$75,000 by a stock dividend, ef¬

mon

Bank

as

bank.

elected

He

joined the Seattle

in

served

the

of

bank.

the

Mr. Anderson

on
Aug.
continuous

of

sS

National

it

retired

years

if

if

First

and

throughout

the

if

was

from

effective
of shares

Northeastern Indiana, except

commercial

is

,

mon

two

Edward
Adams, Jr.,
Vice-President, will super¬

all

Charles

retire

years

in

J.

Loughlin,

October

after

who
nine

Regional Superintendent

as

Tazewell M.
been

elected

Board

of

joined the bank in 1923, and was
successively Manager of the Ot¬

member

Directors

of

of

The

Virginia, Richmond.

the

Bank

His elec¬

at the September

$7,000,000 to $8,000,000 by a
stock dividend, effective Aug. 26.
(Number of shares outstanding—
800,000 shares,

In
other
action,
the
board declared a third
,

25

par

if

i.t

cents

value $10).

new

stock, First

capital

a

Bank's
quarter

share

on

the bank's 360,000 shares of stock

stock

common

from

$6,000,000 to
$7,000,000, effective August 20,
(Number of shares outstanding,
700,000 shares; par value, $10.)
if

Bank

if

of

Asheville, Asheville, N. C„ will add $150,000 in
capital funds by issuance of .5,000
new shares Sept.
30, according to
Philip Woollcott, President.

Mr. Unwin

tawa and Montreal main branches

before

his

pointment.
the

if

ville, Tenn. increased its

The

Richmond.

of

increased

from

meeting of the board held Sept. 4

dividend

was

American National Bank of Nash¬

*

Carrington, III has
a

and 42 years' service.

Nashville, Tenn.

By the sale of
if

«

the First American National Bank

Bank¬

ing Department.

,,

of

Houston, was granted permission
by the office of the Comptroller
of the Currency to open a new

of

to the Estate

in

and

divisions.
Senior

vise

the

Mr. McMichael started his bank¬

ing

the retail level.

on

activities

ities of the Out-of-Town Division
have

if

Vice-President

of

appointed Director of a new
Marketing Division effective Sept. ibank. n
v •
.*
1, it was announced by Donald F.
James L. Cowan is President
Valley,
NBD
Chairman,
and
and William E. Carlisle,
Jr.,. is
Henry T. Bodman, President. The
Cashier.
The bank has a capital
Marketing Division will coordi¬
of $100,000 and a surplus of
nate
the Bank's marketing and
$150,-

By

been

•'*

Bank

Texas,
increased
its
capital stock from $100,-

Director, National

Detroit, Mich.,

charge of the Bank's Outsince

if

of

.

stock from $100,000 to $200,000 by
stock dividend and from $200,000

dend,

McLucas, Senior Viceand

Bank

changed, Floydada,

National

Company of Rockford,

John N.

President

22 years.

McMichael has

.

a

ber

National

S.

the

of

stock is issued

new

First National Bank of Decatur,
Ala. increased its common
capital

of

effective Sept. 2.

mon
if

22.

000, surplus of $475,000 and undi¬
vided profits of $130,000.
;

par

..-V*

*

.

Rockford,

to

First National Bank of New Bed¬

ford, Mass., for

tion took place

an

Chair¬

Bank, New Bedford, Mass.,

of

represents

The

-

*

Selby, S. Dak. increased its

Board

of the First Safe Deposit Na¬

shares which will
on completion of
offering to stock¬

than

more

if

Cook,

which

Avenue,

*

Queens.

W.

$10 per share on an annual basis

Manhattan, formerly the main of¬
fice.- of Commercial State Bank.
offices

man

The

holders. This is the equivalent

main

Branch'

Trustees

on

staff

stitution.
The

bank

if

Irving

the

declare

Commercial

and

of

The Board of Trustees

Bank of North America.
All

Board

of

*

Rockford,

with the Jamaica National Bank.

appointed

date.

remains

the

of

Huntington office. He
the
banking profession

divi¬

price and timing of
offering will be determined by

Bank of North

Bank of North America.

New

will be in charge of Se¬

Francis

subscription

the

Bach

Queens

be

by

ratio

(Number

tinue to be handled

Bank\

Bank

the

old

National

National

of

same

of

formerly Ex-

Department

for eight after

institu¬

committee

the

Long

if

Banking

stockholders

ef¬

2.

Sept.

politan

lis

on

offered

a

Vice-Presi¬

Friedman, Chairman

executive

of

Vice-President

Superintendent
50%

a

on

dend to stockholders of record

President

America,

Senior

consolidated

tion. Sidney

meeting

increased

$1,000,000,

outstanding—25,000 shares,
-

been

of

Bank

Sept. 22 and 30,000 shares will be

North

and

Queens

curity's

special

a

distributed

North America.
D.

the

New

Chairman of Commercial Bank of
Charles

National

field Gardens, L. I. has

Simmonds, Jr., Chair¬

at

proved

Louis

Goldstein, Board Chairman of

Bank

has

Bank

John W. McCabe,

entered

Sept. 30.

man

National

ecutive

The

will be submitted to stock¬

crease

D. Mallory Stephens, Chairman
of the Board of Commercial State
as

Directors.

Drescher

*

recommended

an

stated that the proposed in¬

man,

Leichtman.

Bank, continues

member of

a

of

Vice-President

a

23 years,

Trustees

of New York

Company

was

to

value $40).

par

sales

A.

capital stock by 110,000 shares to
a total of 270,000 shares.

consoli¬
excess

if

S:

stockholders

to

outstanding.

Capital funds
dated institution
$11

of

chester

the

if

State

share

one

Bank

Bank's Board

Kochellc, New York.

for

permit the orderly

since

and that these prospects

shares of stock, par value $5

each

good

are

Pres¬

ment of

per

of

prospects

as

National

Security

develop¬
Security National Bank of Long
banking within the State,
Island as a Vice-President, George
might be
A. Heaney, President, announced.
delayed, if not prejudiced, by the
Mr. McCabe, who served with
existence of protracted litigation."

approved
Commercial Bank

of North America

more

of the New York State Legislature
of progressive
legislation which

$30,-

stockholder

terms,

the

Neck, the. bgnk
$7,000,000

Drescher, who joined Se¬
curity in 1955 as an Assistant
Vice-President, was formerly
Comptroller of the First West¬

objective

attained

as

Mr.

the enactment at the next session

America

000,000.

merger

be

now

tenure

Maass'

Island, George A. Heaney, Presi¬
dent, announced.

affiliated,

our

of

Security

ob¬

promptly through legislative than
through court procedures. We be¬

State

exceeding

believe

we

Mr.

of Fort

Heaney had served

elected

shall continue to pursue.

we

However,

over

fective

Trust

111.

$500,000

Na¬

Security National when

Walter

*

an

and

com¬

First

of

Vice-President and Di¬

a

1950 and will remain

the

implies

way

common

$190,000r

to

Aug.

.

could appeal ex¬

"This decision in

by Jacob

capital

bank after the
will show

share

per

record

'*•" Decatur, effective Aug. 21; ■*.-•

been

Mr.

pired Sept. 8.

we

Bank

of

of

dividend, the
stock

Rockford,

from

Long
bank with

largest
excess^

of

stock

a

capital

tional

Neck

ident

courts. The time under the statute

8

institutions

announced

was

as

Sept.

executive

$30

of

$

By
mon

of-Town Division

ceedings, we have decided not to
appeal the Board's order to the

Commercial

the

as

of

York, it

of

value

par

-;\:-;v

to $47,000,000 and from one office
tqjsev^n*
I ' MHRV""

of law to the evidence in the pro¬

Federal

•;

grew in resources from

Act of 1956 and the ap¬
of erroneous standards

plication
York
and

$20).' ""

shares

merged with Security
in May of this year.

our

Reserve System denying
application is based on a mis¬

Company

Bach

George A.
granted a leave

during the
period of its greatest growth and

Federal

R.

the Security
Long Island.

000. Mr. Maass served as President
of the Fort Neck bank

construction of the Bank Holding
Mallory Stephens

:

National

of

of

was

third

resources

of the Board of Governors of the

D.

Neck

succeeds

chief

shareholders,
and
our
equally
During
strong conviction that the order President

our

'•

Security President be¬

new

comes

con¬

public and in the interests of

Bank

Maass

The

E.

First

is

x——

of absence due to illness.

The

Corporation

Fort

Heaney, who

White

of

•

.

Seaford, L. I., has been

National

County
Plains,
issued the following statement:
"Despite our continuing belief
Trust

the

of

J;

Joseph

Jr.

elected President

James S. Rockefeller, President,
The First National City Bank of
New

*•

at

Herman H. Maass, former Pres¬

New

York, on Oct. 1 as Vice-President
and
Counsel, it was announced
Sept. 9 by Willard F. Place, Pres¬
ident.
.' ';V'
•

I*

.

offered

stockholders

.

standing—40,000 shares,
*

be

and from

the age of 61.
-

amount¬

$500,000 to $600,000,
#
* o '
«f
' ~,
$600,000 to $800,000 by
the sale of new'
;The Morgan County National
stock, effective
Aug.-25.
(Number of shares out¬ Bank of Decatur, Ala. changed its

Harry Hoyle,-Chairman of the

.•

rate

new

to 33 cents per share was
declared payable Sept. 15 to; stock¬
holders of record Aug. 22. Wooll¬
cott announced the new stock will

The

from

at the

ing

*

a

capital

Board of Directors and President
of the Tappan Zee National Bank
Chiefof Nyack, N. Y., died

and

#

stock dividend, The First
National Bank of Des
Plaines, 111.,
increased
its
common

Butt, who will

Executive Officer.

dividend, the First quarter

$600,000 to $1,200,000,
Aug. 29.t
(Number of
outstanding — 120,000
shares, par value $10). •

Aug.

was

if

v

stock

a

effective

Long Island.*
■

Bank for Savings, New York.- He
succeeds

the

The

The dividend rate on the Bank's
stock has been increased from the
annual rate of $1.20 to $1.32
per
share.
A dividend for the third

shares

fected under the charter and title
of The Franklin National Bank of

*

Edmund F. Wagner has been
elected President of the Seamen's

of

22.

Aug. 21, Page 718,
July 31, Page 419, July 3, Page 13.
on

of

stock from

of

$200,000 shares merged; effective
The

dividend

National Bank of Newport
News,
Va., increased its common capital

National Bank, Central Islip, New

York,

The

$90,000 will be paid Oct. 1 to
stockholders of record of Sept. 18.

*

Long

CONSOLIDATIONS
NEW BRANCHES
NEW

on

23

G.

Toronto

He

is

office

Toronto

branch

by

Ontario

in

at

Lawrence

Greenwood, formerly

intendent

ap¬

succeeded

super¬

a

Region and

previously Manager of the bank's
Mr. Greenwood

branch at Seattle.
entered

lowing
and
came

ronto

the

service

Manitoba
an

in

bank

in

branches,

Assistant

branch

1938.

in

Fol¬

Saskatchewan

he

be¬

Manager, To¬

1953, With

ap¬

pointment as Manager at Seattle
following three years later.

The Commercial and

24

Financial Chronicle

.

Thursday, September 11,1958

(1024)

We See It ;

■.As

j

■

>

-

of the country.
voting are now
not very far distant. It was natural perhaps, therefore,
that the President should say as many complimentary
things about labor and labor unions as he felt that he
could—the more so since he evidently felt obliged to say,
even if somewhat obliquely, that there was a good deal
with the wage earners
election year and the days of

to do

that have

This is an

State of Denmark. There are,
serious shortcomings in what the President

rotten in the

however, some
had to say, and

If

hope we do—we must not

disheartening by reason of the fact that
these same infirmities run through the labor policies of
the Administration from one end to the other, and, as a
matter of fact, through the attitudes of the New Deal and
they are the more

the Fair Deal in even

The trouble is that

the President, as his

predecessors

reveals a lack of understanding of what
of business go round, and of the nature
of governmental policies required to give the greatest
assurance that they will continue to
turn—and in the
right direction. It is true that he includes a vague state¬
ment "that the common economic interest of employer and
employe is prosperity," but he seems to say that the driv¬
ing force which keeps the wage earner at his work is his
always also did,

personal worth and accomplishment," and
dignity as a free man working in company with
free men." He offers no suggestion as to what keeps

"own sense of
own

longer hours than those of
when nerve try¬
ing problems are encountered not infrequently by reason
of the behavior of organized wage earners, but this after

management at work much
wage earners,

all

was a

and what keeps them at it

Labor Day

Now the fact

outgiving.

of the matter

was

Adam Smith who many, many years ago

butcher,
the brewer, or the baker that we expect our dinner, but
from their regard to their own interest. We address our¬
selves, not to their humanity but to their self-love, and
never
talk to them of our own necessities but of their
advantages. Nobody but a beggar chooses to depend
chiefly upon the benevolence of his fellow citizens." The
said that "it is not from

the benevolence of the

basic fact that self-interest is the

motivating fact of our

economic lives holds today just as

it did when one of the

greatest thinkers of all time so clearly and

simply enun¬

ciated it.

e s

developments

unfolding

e'

close

suggest the need for
vision

long range

over-

commitments.

-

..

/ of recent shifts

the circumstance that there are a

good

many

affected by

in the world

today who are not ready to accept it—a good many of
them not in Communistic countries but, as a matter of
fact, within our own borders. It is because this is the way
that human beings are made that the general principle
holds everywhere regardless of the political or social sys¬
tems in force, and, so we believe, will always hold. It is

given full play with a minimum of
restrictions of any sort that the United States has long ago
reached an economic stage that is the envy of the worid.
By and large until quite recent years at all events, we
have asked only that self-interest be enlightened, and that
it not be pursued to the point where the liberty of one
infringes upon the liberty of another.

because it has been

Proper Conditions Essential

Dut this system of natural liberty does not function
well, it may even ultimately fail, if the conditions neces¬
sary to its proper functioning are not maintained, and it is
here that we find not only the New Deal and Fair Deal

philosophies and programs but those of the present Ad¬
ministration in Washington seriously defective. As a mat¬
ter of fact, retreat from the rigors of natural liberty began

in the business and

financial climate, and implications
of these shifts for

savings banking

policy, underline the importance
of constantly appraising the

fail to re-establish the pre-con¬
•

changing economic scene. In an
economy as dynamic as ours, the
savings banker must be ever alert
to

■

He must be aware of
in. .order con¬

change.

events

economic

Current Economic Trends ifill
And Savings

Named to NAIC Board
'''The

Banking

not great reached in the autumn.bf 19^7, «t
stave oil the end of the 1955-57 boom period,
inflation or to prevent recession. Yields
on
short-term securities
To
achieve and maintain high- have risen even more dramatic- .
level production and employment, ally.
U. S. Treasury bill yields
other
public policies
must
be recently exceeded 2% - from 'an
soundly conceived and executed, earlier 1958 low of less-than ; i(i
wage and price policies of labor of one per cent. These recent.deand
business must
be
realistic, velopments have important imit

great,

is

power

is

enough in and of itself to

and

in

dence

confi-

have

must

consumers

determination

the

of

public and private policy-makers
to fight inflation.

plications for the business
ery

as a

nation, vigorously

lick all forms of in-

to attack and

l'lation, from the creeping to the-

variety, seems to be
inflationary fears,
While the present economic realities do not justify such fears —

galloping

behind present

The unexpected

-

t;

elected to the
Association's Board of Governors

as

offerings to raise funds for capital
expansion.
^ J
There

is

a

these .trends

real

daneer

that

if

Shares, Inc.; William F. Shelley,

Boston Fund, Inc.; Henry J. Si-

Jr., National Securities
& Research Corp. and Charles F.
Smith, Financial Industrial Fund,
*nc*
monson,

°ther
Board
peor8+e D- Aidxrebi, IinGorporated
fllvest01cs: Herbert R. Andeison,

continue, the resur-

rising prices may precipitate ac- gence in businesss will be halted
tions on the part of businessmen' before it has a chance to get fully
and

consumers

which will result
of

realization

the

in

.

their

pectations.

Fred E"."Brown, 'Tri-CohtinenEdward B. Burr, The

are

rapidity of the. tal' Corp.;

turnaround
in corporate bond One William Street Fund,. Inc.;
yields has caught many investors Em 1 en
S. _ Hart, . Institutional
and would-be borrowers'1 by sur- Shares, Ltd.; Leland M. Kaiser,
prise. Though they have ample: Insurance Securities Trust Fund;
funds for investment, some finan- Edward A. Merkle, The Pennroad
cial institutions have shown little Corp.; W. Linton Nelson, Delainterest in recent offerings in the ware Fund, Inc.; Harry I. Prankexpectation of further - increases aid, 2d, Affiliated Fund, Inc.; Edin yields. At the same time, some ward*P. Rubin, Selected American

it has been
termed, which may be characterized as the widespread expectation of, and resignation to, steadily

inflation,

logical"

Companies ! has been en15 to 21 members, re-

Oct. .1, he said.
New members

nevertheless

to real

ex-

underway.

Not only will plans for

business spending be

home-building

.

modified, but

flight

from

the

activity

may,

also

^fmetSCo

cSTf

-

E^n

dollar,

?u .e^s*. Inflationand wipe
can dull
thrift
incentive

seem

basic

not to be aware of the situation.

requirements which we have all
too generally abandoned has never been better expressed
than in the words of Adam Smith: "All systems either of




rnhncrm "

y

XrtciInr S
T

,

A

-q

Schaeffer,

'

«>a

McW •

United'States
IV

SchoellkoDf

T

rm.n .

qp..,r fipc

pi

w

,?Ml-ltllJ1i

Niagara

.

home building and purchase. Re-

RptiHnpc ■ mpmhm

w'hn

have

uS.em+ploy?ient' ^.e cumulative stricted. availability ofofcredit to compieted three years' George on
service E
effects
.of economic
maladjust-- prospective purchasers
automo- the Boarcj include
ments, resulting from the erosion, biles would also seriously hamper Clark Hugh w Long Jame
M;
t

must, the expec ed recovery in that in-. Q
s L
sholley and Francis S.
and bust.; .dustry in 1959. Such .developments Williams
Less sophisticated observers of would, indeed, be a serious blow: ~
National Association of Inthe economic scene can hardly be to a sustained business recovery. vestment
Companies
represents

of

the

value

of

the

dollar

lead inevitably to boom

-

bias,
however, when a supposedly sophisticated school of academic
economists accepts and preaches
a
doctrine that inflation, of the

blamed

for

an

inflationary

creeping variety, is not only inevitable but necessary to economic

146 open-end investment compaReexamination of Portfolio Policy nieg . (mutual< funds) and 24
If recent financial trends con-_ dosed-end' investment companies
Ree„amjna*ion of Portfolio Policv

tinue, the main concern of savings with combined net assets in excess
bankers may shift from finding of $12 billion at July 31, 1958 It
suitable investment outlets for has been in existence since 1940.
sharply increased savings flows, to

.

...

Fortu—
nately, demonstrable evidence in
then, I fear, we are lost.
the actions of

our

monetary and
Congress,
Branch of

fiscal authorities, of the
and

the Executive

of

Government, clearly indicates

a, ? .?n.f awareness

influence

Eaton

Balanced

Howard

the gages, and hence the volume of. gbares Corporation FundJoseph JS.
out ducing funds available foi mort- welch Wellington and
Inc

existing savings as surely as cani

our

came into power. It would not
to say just when the labor unions and
agriculture were first regarded as sui generis, but it was
a good many years ago. At any rate, at least two serious
failures to maintain a climate in which natural liberty can
function well still exist, and the President in his recent
utterances as well as very nearly all other political leaders

easy

Rnh'

w

S?

be influenced. Here, recent signs
psycho- of strength are attributable in F *' ,*
logical inflation, will have the' large part to the availability of
same
disastrous
effects
on
our
mortgage funds on liberal terms.,r> f.
economic, social, and political life. Rising
interest rates in other, j h
It is not necessary to enumerate sectors ot the capital market, how»
r,
these effects before such a group ever, may have the effect of " re- F
ri
A

Iiivest-

of

fifecting the increased activity of
the Association and providing for
wider membershio remesentation
on the Board, it was announced by
Joseph E. Welch, President,
The election of 11 new members
;and the retirement of five present
Board members becomes effective

present excesses of
human resources —" corporations, discouraged by reexists a threat cent increases in interest rates,
busines recovery. "Psycho- have postponed anticipated bond

considering
capital and
there

underway and, of course, -for

the

of Governors of

Association

jagged from

iecov-

mutual savings banking;.

general lack of confidence in
ability,

our

ment

a^ain approaching tnt? peaks

are

Board

National
....

....

,

.

their

While

affairs.

economic

long before the New Deal

One of these

-

rapidity

from page 13

be

altogether

super¬

mortgage
'V

.

terms,, the

broader

In

*

in the long area.

as

whether it reflects real or

This fundamental truth is not in the least

of great

T h

well

as

Eleven New Members

A

is—notwithstanding the

pronouncements of New Dealers and neo-New Dealers—
that by and large what keeps men and women at their
work benches or desks and what, holds employers' nose
to the grindstone is simply hope or expectation of eco¬
nomic reward—for themselves not for "society" or "man¬
kind." It

market
"

stantly to strengthen his bank and
the savings banking industry.
;

makes the wheels

other

to¬

gether with aspects ,of liquidity,
result, also, in greater savings
bank interest in this area of the

may

liberty. It is this requirement that
neither the President or any of the others seem to under¬
stand.
'
/"
'
•
*'

Continued

Understanding

government, securities,

term

natural

of

ditions

Attractive yields on short-

flows.

greater measure.

Lack of

"his

.

really free—and we certainly

to remain

we mean

changes in mortgage

concomitant

being . . . completely
simple system of natural
liberty establishes itself of its own accord. Every man, as
long as he does not violate the laws of justice, is left per¬
fectly free to pursue his own interest his own way,, and to
bring both his industry and capital into competition with
those of any other man, or order of men." The other req¬
uisite lies implicit in this classic exposition by the first
champion of laissez faire. It is that no man or group of
men shall be permitted to interfere with the right of any
t>ther manor £roup of men fo "bring his inte
capital into competition with those of any other man.";'
preference or of restraint . .
taken away, the obvious and

Continued from first page

of inflation and

a

.

of the evils
-

,,

{

This spring and summer, there

determination to

fight it.

was an

unusual upsurge of savings

bank investments

Implications For Savings Banks
The recent manifestation of in-

flationary

tendencies

has

been

evident in financial markets. Mar-,

ket

yields on government and
securities, in both the
short and long end of the maturity
business

range,

recent

have risen substantially in
weeks.
Long-term yields

Plans

,,

yields suggests a careful ieexam'WA^urTVCT'OTV
ti
c
tvnch—
ination of portfolio polices in the: . eton investment Plans Inc has
months ahead. Moreover, deposit: J^on;
^ §£
gains, whileL
continmng^ large, aye gouthern Building officers are
not as much greater than a year James M Johnston Preside„t and
ago
as
they were in earlier chairman o£ the B^ard. James H

new

a

accompanied by
corporate- security

record highs,

fall-off

in

in mortgages to

Lemon,
T
«
'

Vice-President; Bernard
-

Q^rofQrv.

r

S^^r.

!jraTl', Jr*%:Al'easuJrer: and i!alpn
S. :
Richard,

Treasurer

Assistant

All

are

Secretary-

associated with

investments. Government security
nnsi>° » e on ac
.
holdings, on balance, continued to
H^nrv 14 "Fcrlv
be reduced. Rising yields in corIxenry n. i-igiy
porate and government security
Henry Harry Egly, partner in
markets, however, may soon at- Dillon, Read & Co.,. New York
tract an increasing amount
of City, passed away Sept. 3 at the
funds from savings banks, with age of 65.

Volume

J 88

Number 5776

.

.

The Commercial and Financial Chronicle

.

25-

(1025)

Continued from first page

of
course—especially when stocks
again decline to attractive buying
levels ex-inflation assumptions—

,

Outlook ioi Business

just

business activity.
The probabilities

And Stock Prices
on

sound

ticians.

ing

economics, by

great

a

poli-

our

This consideration is hav-

deal

influence

of

on

buyers of goods and securi-

some

ties—just
spring of
months

as

of

the

was

1946

and

in

case

early

when

1937,

the

the

theo-

retical effects of inflation

porate

the

in

earnings

on

also

were

cor-

being

given

the

the

basis

of propaganda

theoretical,

of
bilities

under

the

ber

outcome

bearing

assump-

are

ly to develop in the forthcoming
Congressional election compaigns,
and.

possi-

earnings'

dubious

to

short-

potential

equities;

ages

as

of

the

voting, will have

for

the

on

various

panies.

empt

issues,

might

much

better

investments

—

prices
the

ministrations
stantial

bonds,

the first time since 1929 (except
for a brief period in 1933). (Government bonds subsequently rose

one-

in the

sharply from the

than

they

be resold at higher levels

can

to these institutions.

(4)

The intermediate earnings'
for
some
companies is
quite good. This is particu-

larly true where the managements
heeded the warnings of a probable

business

sometime

stressed
where

1957

by

7(which

we

throughout
costs

down

readjustment

in

to

1956),
and
been brought

have

the

levels

dictated

by

changed competitive conditions.
(5) The politically-inspired acof Congress early this year

tion
in

encouraging
the
speculative
building of homes and a speeding
up
of highway construction, assure the maintenance of a
higher
level of over-all activity over the
balance
was

of

1958

than

that

which

witnessed in the first half.

(6)

The recent excess of oddselling over odd-lot buying,
and the very large "short interlot

est,"

suggest

that

until late 1930, while stock prices
declined in the interim to

outlook
now

we

not

may

have reached the level of

overcon-

before;6 a^maior 'decline tn'Totl
prices is to be experienced

if
of

the

there

if

no

\ Ivnoir?,

short

int6r6st

is

"long" positions; and the
rate of odd-lot short

lation

to

tradicts
odd-lot
ish.

total
the

of

Bgciinst
low

very

selling in

business activity and stock prices
decline very sharply by that time,
The inflationary propaganda being
used to encourage the purchase
equities

could boomerang, as
*eac* the majority of those
running for Congress to promise
^

iText yel?-0 iSstTs'"hSr
predecessors in the fall
i„a^uch
nrosneritv
andnTationa^

sales,

is

that

into

the

odd-lot

holdings

newly-formed

mutual

n

,.

fiQnorj

boom

similar

to

(which has been quite
those

which

their crests within 10
the

end

spriouslv

businessmen

hv

and

all

nrndont

of

or

each

reached
12

years

major

war

,lllvest01s-

<*uii? clearly during the past few

wccks that it is more concerned
with reversing the recent Wall
Street sponsored spiral of mflaJionary psychology than it is m
keeping money
easy
for the
°f insuring

business

those

a

further

rise

activity.

facj.

j

Apart from
sincerely believe

who would

like

to

the

see

Capitalistic System preserved

owe

to

cooperate

with

Reserve Board's

the

efforts

Federal

to

try

to

check

inflationary psychology in
1800), is now over. To the order to prevent another 1929extent that history is any guide 1933
boom-and-bust: It has usuto the future, we should now exally paid to take Federal Reserve
pect progressively greater world- action into consideration in
prowide competition as manufacturjecting probable price trends for
ers
try to seek markets to take common stocks
particularly
the place of those which had. been when
such action coincided with
—

and

adverse

appraisals of the

outlook

(2) With no pent-up demands in
this country, there is little basis
for the type of "follow up" of a
business recovery such as that en-

based

relation to
prospects,

on

stock

near-term

market

prices

of

peaks
each
were

of
of

1946

and

the past
these

also

at

the

two

market

years.

instances,

purchased

at




In

win

two

or

tax

On the other

instead, there should be a
swing toward conserva(which, at the moment, seems

—but refused to

by

earnings'

favored

believe

mer

or

of

in

that

on

the

of

early

months

of

1946.

stocks

The

prices

conditions should be kept in mind,

very

raising

whether

part

of

higher

freight

taxes

to

long-term

to

Southern

4.1%

all

has

obtain

cars

I

does

of

deferred

make

if

up

improve.

point of
view, the recent expanding inter¬
est in the highly
speculative, lowpriced stocks and in the steel is-

with
have

continues

bituminous

(coincident
New

with

York

Stock

equaled

high

a

"Times"

Average
again

for

the

the

effect

"Never sell

that

news."

may

the trend

on

the

also have

Under

the

a

six

store

as

for

U.

the

is in
during the

upsurge

S.

bank says that in each of the first

months.

investor,

sharp population

1960's. Writing in its monthly review, "Business Conditions," the

a

circumstances, I be-

lieve that the
to

to

opposed

been

continue

to

and
be

is

ex-

aggres-

in attracting new industries
plants to its lines. This in-

and

creased

manufacturing

*

the national

activity

average,

Currently, with traffic picking
U,P> it is estimated that net income

Per common share this
.

should

year

amount to at least $4 a share as
compared with $4.79 a share for
the year 1957.
Finances
will
be
further
strengthened by the proceeds of
the recent $22,000,000 offering of
the 4^s of 1.988.
This will bes
added to $35,897,000 cash items
reported on June 30, 1958. Net
working capital 011 that date was

$17,531,000 compared with $13,179*000 on June 30, 1957. Net depreciation of equipment obliga-

tions this year above maturities
will add about $4,500,000 to the
cash

In view

flow

of

js

this

year.

strong finances and

prospects of improvement int

carloadings, the
rate

of

the

$2.80

current

dividend

secure.

§ame amount

This

as

seems

^

paid

was

in 1957.

Despite the recent decline in

bearing
of stock prices over

next three

to

—

births and marriages, the Federal
Reserve Bank of Chicago states,

De-

velopments in the Middle and Far
East, which appear to be gradually weakening our international

prestige,

in

In

should

you

strike

on

decline

citting the evidence of substantial population growth
ahead, Chicago Federal Reserve Bank emphasizes this will
not automatically spell
prosperity and expansion.

10

years), certainly should not be
lightly dismissed with the cliche
to

a decline, the

—

not

than

more

the

Population Spurt Seen During 1960's
Despite Drop in Births and Marriages

that
1936

was

ship-

by the steam utilities is

—

Industrial

that

for

to

late

coal
.

important strike in the auto¬
in

sive

the

demand

similar

has

management

road's

While

immediately preceding substantial
declines. The growing
possibility

starting

of

is serving a
territory
continues do grow.
Th®

pected

lines,

market advances,

industry,

to

if gross
expand, net inwill rise more

ments have shown

an

a

Consequently,

stages

mobile

for

means

great
maintenance to

traffic

is very reminiscent of the
market's action during the'final

of

of the

business.

which

come
probably
rapidly than for most of the major

sues,

of stock

This includes

sources are

The road

au-

7.6%

Also, it

not

should

revenues

short-term

a

because

export

modernized

July 1 amounted

roads.

road

deal

End of Bull Market

011

compared

Class

the

that objective.

From

roads

also

bad order

he

^ve months of 1958, the number
°t' births fell short of the same

the speculator, would be more
to sell than to purchase

Does Not Insure Prosperity
Although
dence that

there is strong evipopulation growth will

he substantial in the years

ahead,,

the bank emphasizes that this will
not

automatically spell prosperity

an(j expansion.

Countries such

a®

jndia and

China, with a remarkahiy high gr0wth in sheer numbers, have not been able to in¬

earlier.
crease their capital
equipment arwf
scant half-milloh output fast enough to reap th®
during the period imme- marriages were recorded 111 this benefits of such
gains,
diately ahead, always excepting period—toe smallest number regIf
a year

inclined

Moreover, a

stocks

issues

which

designation
tions"
110ns,

are

of

entitled

"Special

and/or
una/or

where
wnere

to

funds
lunas

being reserved for additional
chases

on

setbacks

of

the

Sitna-

istered

in

any

Nevertheless,

on„rf

or,

Phila. Inv. Women Meet

delphia will hold the First Dinner
meeting of the 1958-9 season on
er
f
1*
loco
f
Ronoiuu" nt
Sept. 15, 19d8 at The Barclay at
6:15 P*m*

at

hats

as

illustrations.

Miss Felker has designed many
prize winning hats, several having
won

first

and

w*

a

dominated by the numerous
people born in 1942 and
1943, will be old enough to marry

agers,

young

and

have familities

And after

war crop
twenties.

second

prizes and
in Philadel-

a

of their

own.

brief respite, the post¬

anYthine short of a strong reversal
3,« «rong revel sal

S10w

more

nroductioi*

rapiaiy

inam
population. Even more crucial,- is
the en,argement of the country's

stock o£ productlve equipment ana
iinn
tion

*increase is +* prove
£ to LL*

In recent

n

a

li
boo®.

decades, U. S. popula¬

tion growth has been concentrated
at

the

extremes

The

have

of

the

young

increased

dis-

age

and
far

aged
mor®

raPidly than the people in th®
working age range. This is slated
tQ ch

when the.h

outpour-

Employment opportunities for

population spurt.

I

™

The
and

19o8 slide-off

•

•

in

marriages

births probably came in part

from the decline in business activ-

ity.

Marriages

were

also

limited

standal.ds there

America pageant in 1957.

Ua standard

^Lnge^rthe mamfge-bfrth pal- "Jf <of high ^school and coUe£
tern could forestall the
coming graduates begins, the bank says,

I"195,? a"c' 1951. has designed for
also Orchids at
Atlantic City and
to Miss

must

alike
scarcely

by the number of people reaching

wear

g

^

must

of babies will enter their tribution.

outstanding awards
phia, Walnut Street Easter Parade

inflationary Miss New Jersey to

the y

»iivjn£ is to advance

crop

According to the bank

this

meeting
will be Miss Elsie L. Felker, Millinery
Designer.
Miss _Felker's
subject will be: "I Love Hats." "I
Love Hats," traces the history of
men's and women's headgear from
3,000
B.C. to present with 36
miniature

points

^ years ahead i|all but.a.teeo? todayTi ^'eenenormous

speaker

years
the bank

purffi^jut, the population spurt just a

more.

Guest

live-month penod

during the postwar

are
die

vestment Women's Club of Phila¬
basis

1929, in the spring of 1937,
the

to

as

PHILADELPHIA, Pa.—The In¬

Conclusions
I

reporters

as

ex-

has brought higher rate producing,
With the drop in gross, net commodities to the road
further
operating income declined 11.1%, increasing its profit margin which
while net income dropped 16.5%.* is higher than for most roads and

questions

answer

to

pers.

balanced budget in the
Congressional campaigns

coming

Some

rise

to

continue

opinion that soft coal will play dn
even
larger role in Southern's

tomatic yards which has reduced
operating expenses, particularly
switching, and also has provided
better and faster service for ship-

a

view

of

of

for the first

its property and has installed

be

from

point

year

in
and

The

ex-

to

Carloadings

the fact that the
bulk of traffic decline was of low
rated commodities.

sub¬

long-term

prove

stocks.

result

rates

Ad¬

a

particularly

common

bond

in

joyed subsequent to the 10% dethe forgoing
consideration, it is
Cll5e?
actl.vlty }n 1949 logical to conclude that the case
and in 1953-1954, or in other pefor hUyjng stocks for intermediate
nods after a thorough deflation
or iong-term holding is
definitely
of our economy.
In the case of more
precarious than is that for
housing, the current level of conmaintaining
substantial
buying
struction (xvhich exceeds the anreServes.
To be sure, the shortnual rate of new family formaterm psychological or momentum
tions by at least 300,000
units), fact0rs could permit a
temporary
suggest that activity in this field
extension of the advance, as did
is likely to decline
sharply in 1959. the Mideast "crisis."
However,
(3) Stocks are currently selling this does not seem to us to warat historically high relationships rant
purchases of stocks that are
to earnings and dividends, just as
likely to move with the market
they did in the spring and summer as a whole, any more than did
of 1929; in early 1937; in the first similar
considerations in the sumhalf

should

continue

months of this year were
oft 17.9% from tne like 1957 traffic in future years because of
Period. However, gross revenues* this situation. It did not suffer
declined only 8.3%. This was the to the same extent as the coal

under

Truman

to

companies

pand their facilities.

whole.

a

seven

hand if,
definite

it to themselves and their families

since

based on pent-up demands
post-war reconstruction.

and

endorsement,
and

witnessed

investors

,

the

(1) There is definite evidence
that the recent world-wide post-

after

and stock market recovery into
or through 1959 should be ques-

in

,

^

Unfavorable Factors

war

rent h?pes and exPectations of an
extenslon of tlje Present business

sake

funds )
tt.

atfemnts

anv

to'Lw^budgeT tCcu^

re-

by pressures on the part of security dealers to get small investors
from

on

the

Furthermore, the odd-lot figbe temporarily distorted

switch

to

936

con-

ures may

to

of

built

as

<6> The federal Reserve Board
under the dedicated leadership of
unusually bear- Chairman Martin, has indicated

odd-lot

conclusion

trader

OJn-

wav

level

a

government

maintained

these

the TVA.

as

the Southern System

where the spread in favor of stock tism
yields exceeded 2.5%.)
unlikely), we would still be faced
(5) The political climate seems with the prospect of an attempt
With costs under good control
quite certain to become progres- to try to balance the Federal budg- and
indications that carloadings
sively less favorable during the et in spite of the serious, even are
narrowing the margin of dethree to six months immediately if temporary, adverse effects such cline from last
year, it would seem
ahead. It is extremely unlikely action would have on business to indicate that
earnings in the
that the business stimulants voted activity
and
corporate
profits final months of the year will show
by Congress early this year, in during 1959. A hint to that effect
improvement over the earlier ones.
order to help bring about a re¬ has
already been issued by PresiIn
addition, Southern is not
duction in unemployment by the dent Eisenhower at a
recent press
likely to run into the equipment
November election, will be re- conference, when he stated that difficulties of the majority of carPeated in 19-59 unless, of course, he was going to emphasize the riers. With an expanded car fleet,
need for a

vulnerable

fortunately

of 1929

of

was

Roosevelt

The existence of this buying power is leading some individual investors to purchase stocks

summer

as

expected

try

com-

tions as to future
competitive panies over the next few years. If
conditions, rather than on demon- candidates who favor raising taxes
strated earning power; et cetera, on
corporations
and
on
high
(4) On the oasis of cash divi- bracket incomes and the type of
stabilization

Railway
.

year as compared with the indus-

outlook

and

.

Southern Railway has made an
outstanding showing so far this

important

an

industries

Southern
.

Novem-

relative

extensive publicity.
dends
(rather
than
on
yields
(3) There is currently a large which
include
the
"value"
of
(even if exaggerated) institution- stock dividends), equity
prices
al demand for equities
by pension have
recently reached a
yield
funds, newly-formed investment basis barely equal to that obtaintrusts, and life insurance com- able on government bonds
for

hope and expectation that

rising

that

the
economic and political issues like¬

which proved unduly high largely
on

they did in late 1937, and

as

in the fall of 1946 in face of

marriageable
,

.

iL

age.

,

were

By

today's

few babies
.

.

on

these young people may require—
an(j pr0vide—a rate of economic:
growth considerably beyond any-

thing

seen up

until

now.

With Harold E. Wood
(Special to The Financial Chronicle)

ST.

Ri^'
rising

PAUL, Minn.
is

now

—

Arnold J.

connected

with
tst~

born m the depression trough 20 Harold E. Wood & Co., First Na~
to 25 years ago.

tional Bank Building.

The Commercial and Financial Chronicle
26

...

Thursday, September 11,1958

(1026)

going

12

The

Continuing the American
Revolution

Expanding Our Heritage
No

abolished and 86% of
labor force has been covered

has

been

through¬
exciting fact

the

wond

the

Federal
that

must

learn

new

programs

budget

is

the

a

factor.
cannot

almost

confiscatory

income
rates

in

brackets stifle and
prevent risk-taking and encour¬
age
tax avoidance devices. The
the

We
add

we

taxes.

In the area of personal

dollar deficit in

inflationary

major

We must make known
out

view

objectively

can

one

billion

current

the

excise

costs and prices.

upon

up.

presently obtained from all other

the impact of wage demands

ness,

while they are

down

going

are

Continued from first page

the Federal
are prepared to

to

highest

small lost of revenue caused by
the
American
Revolution budget unless we
right and jus¬ that
reduction of these rates
concluding that ours which captured the imagination of levy the taxes to pay Tor them, some
Inflationary pressures are1 also would inevitably be offset by the
is
a
nation in which idealism the world 180 years ago did not
created by the excessive use of new investment and business exrather than materialism
is the end at Yorktown but that it is a
We -must' follow pansion which would result.' * .■*.
dominant national characteristic. living, vital idea today; that it is private credit.
his Square Deal speech at OsaI realize that for someone in
the idea which we believe can credit policies which will prevent
watomie, Kansas, 50 years ago,
most surely satisfy the aspirations these inflationary exceses to the political life even to suggest conWhy Are We on the Defensive?
of
giving every American
an
extent possible.
c. i;
- * M > rsideration 6f such proposals as
If our case is basically so good, of people for economic progress,
equal place at the starting line,
But it is completely unrealistic
these rimstr seem somewhat foolindividual freedom and national
but we have made more progress why are we on the defensive in
to assume that inflation' earn be hardy. The charge will inevitably
independence.
toward that objective than any¬ so many areas of the world?
The solution to the problem we controlled entirely' by lthe motre- be"made that such reforms will
It is superficial and inaccurate
one dreamed was possible.
to contend that if it were not for face is not to be found simply in tary policies of the Federal Re- benefit business and not the peoAnd, ironic though it is, of all
better information and propagan¬ serve system or the spending pblif plePT suppose this would be a
the Communists this
would not
the great industrial nations, the
Communism is one da. In the words of Hegel, '"Na¬ cies of the Federal'Government. ' good place for a politician to plead
United States, the strongest de¬ be the case.
Business also has si'job-to do in
tions are what their deeds are."
the Filth Amendment* but I am
fender of private capitalism, is of the major forces opposing us
in the world today.
But it does And a nation is strong only when preventing inflation. • It rrtust re* going to take the more risky
the one which has come closest
sist upward pressure^4'upon1 c&sty* course of pleading guil^~but not.
not help us in fighting Commun¬ it is engaged in realizing great
to achieving the Socialist goal of
It must redouble its &ff6rts to cut a§"charged.jr'
ism to confuse it with other and objectives. Once it loses its sense
prosperity for all in a classless
- ' *
y '
y„ yy
different forces.
One of those of mission, a nation's days are down on waste ahd'to l'ftid the'
society.
We have achieved the
numbered.
real economies in production • arid ' y
/Business Is the
wide distribution benefits claimed forces is the spirit of nationalism
I suggest that we examine the distribution.
Tntistf y Ii^lalizeyth^y^
which is so powerful in the de¬
by socialism while avoiding the
American idea in the light of these haVe the daring. ahdVf^agihattbh-wliich fPr&sident Lbwell
so
controls and restrictions on free¬ veloping nations of the world.
considerations to see if it has the to price for volume sales with" low aptly called "the oldest art and
It is ironic in the extreme that
dom inherent in a socialist sys¬
vitality and drive to prevail. What unit profits.
•*fhe newest' profession-'* meeds po
the United States should ever be
tem. And this happened not be¬
are
the dangers we must guard
Organized labor also Shh^-^ re- defense."' But let us understand
cast in the role of opposing legiticause we took from the rich and
mate
nationalist
movements. against and the goals we should sponsibility in this ar'ea.';TDUHrig-vonce* and for all that "business
gave to the poor, but because we
seek to attain?
the postwar years labor' -sought is the people:" The people own it.
Many of the ideas which motivate
gave everyone an opportunity to
Let us recognize at the outset and
got large wage' "increases in And their ownership is becoming
nationalists
stem from
share in a constantly increasing today's
that we shall not win this battle order to keep up with Inflation, ever more widely diffused.
They
American history and have been
pool of wealth.
simply by standing still.,'We are The momentum of this,, process make their living out of business,
taught in American universities
ahead now but the only way to continued during the years ' that "'-They depend oh business for progOur Maligned "Affluent Society"
at home and abroad.
consumer
price v' level - Was' ressy for - opportunity, for their
-These ideas of freedom, democ¬ stay ahead is to move ahead. Let the
I recognize that among some of
it not be said of our generation stable. The result was ah upward mutual well-being and for the dethe critics of our much maligned racy and independence are now
in other parts of the that we set as our goal—simply push of costs on prices that was an velopment and production of (the
"affluent society" it has become at work
world. But unfortunately, we find holding our own. Let us resist the important factor in fhe'inflation-"military equipment which shields
something of a fashion to deplore
temptation
to
be satisfied
by ary trend starting in late"11955.? v the nation against aggression, y
and condemn the mere conveni¬ they are sometimes used against
The remedy for this'evil*most
Prosperity for the American
There is no merely putting another guard on
ences
of living as though these the United States.
the cash box. Let us, on the con¬ consistent with our free' inslitu- 'people is inseparable from profcreason why this should be so.
On
necessarily precluded the success¬
trary, boldly expand the heritage tions is self-discipline at the bar-" Perity for American business. We
the contrary we rather than the
ful achievement of our real and
we have been so fortunate to re¬
proper aim,
which is—the full Soviet Union should be the natu¬ ceive to new heights both mate¬ gaining table. Unless'this remedy cannot raise the floor
is used the pressure from coitsurh- unless we raise the ceiling
ral champion
of legitimate na¬
oprealization of the physical, men¬
rially and spiritually.
ers for government action ,to conportunity. The best way for
tal and spiritual capacity of every tionalist movements.
Standpat, defensive thinking is trol inflation will become irre- American people to improve their
The ideas of our Bill of Rights
individual.
not adequate for the challenge we
sistible.
Likewise there will be living standards is through polland our Declaration of Indepen¬
Self-examination of this char¬
face either at home or abroad.
dence are the most exciting in his¬
strong demands to control byriaw7 cie8 that promote maximum
acter is healthy and constructive
those
union
activities- that1 are uess growth;;
|
. tory.
It is time we recognized
Turns to Three Economic
in a free society, but I respect¬
that these ideas are still on the
monopolistic in character-. s This .?• -*n summary, We
Problems
fully submit that few Americans march. Let us make sure we are
can be avoided if our uriidn lead- ■ J1®.
Va temporary
are
interested
in
materialistic
May I turn to three specific ers in their contract: negotiations "deficit, to put us in a strait
marching
with
them and not
economic problems in which gov¬
things as ends in themselves. We
are guided by this basic1
against them.
us
know
that
material
well-being
ernment must play a part if we
—that wage increases which force ^11^^^6
msure
Through all history, America's
and spiritual and cultural achieve¬
are to push forward with the vigor
leaders have recognized that the
price increases are not in thfe best ' economic
ment are related.
But it is as
require.
our

these struggles for
tice without

by social security.
We have not reached the goal
Theodore Roosevelt proclaimed in

_

^

People

.

has

of security
of
the

busi-

must not allow
budget
jacket

true

today as when the Roman
poet said it two thousand years
ago that man must first eat be¬
fore he
*

become

can

philosopher.

a

we
could make no
stupid blunder than to rest

However,
more
our

is

have
more

materialism

on

case

This

that

all

offer.

to

We

country

automobiles
and

and

beautiful

our

comfortable
homes.
But

our

luxurious

even

visiting

be impressed by

may

skyscrapers,

our

was

destiny

to

extend
now

the United

which

on

founded

defend,

the

—-

freedom,

and

preserve

of

rights

If

man.

America makes this clear we can¬
not

but

most of

of

support

the

receive

of the world.

the people

major reason
for the Communist appeal in the
What

then is the

they will see more than this if world
today? Its appeal is not in
they wish.
They can see the the Marxist
philosophy as such.
throngs that go to our churches Communism with all its evils has
to worship God in freedom. They
appeal primarily because it ap¬
can observe the even-handed jus¬
pears to be on the march advo¬
tice of our courts of law.
They
cating and promising change.
can
read our free press, attend
Our answer therefore must be
free
trade
union meetings, and
to talk less of the threat of the
watch our preparations for free
Communist revolution and more
elections
this
November.
They
of the promise of the American
can visit our schools and univer¬
revolution. This is what the world
sities where the only restraint is
wants to hear
We have nothing
the

restraint

conscientious

of

Home

they

and read things
firm some
of
the

provided

remain true

we

to the best elements in

can

that will con¬
charges

times

-

tradi¬

our

A

time

time

to

such

—

as

the

workers.

American

some

mind,

these facts in

With

will

unemployment

temporary

mean

for

occurrences

con¬

should be given to in¬

sideration

stituting permanent
reforms in
our
system of unemployment in¬
surance.

Specifically, to the extent feasi¬
ble,

12

the

million

covered

now

under

our

sation

workers

should

be

not

brought

unemployment compen¬

system.
prolongation of benefit pe¬

The

riods

now

in effect

should

measure

as

a

temporary

made

perma¬

state

be

govern¬

nent.

The

Federal and
should

ments

work

together

to¬

that

sacriifces and of moral and spirit¬

And

values.

ual

it

is significant

These

proposals

are

sound

not

only for reasons of plain human¬
ity, but also because the flow of
They will read of gangsters in
income provided
by more ade¬
some labor
unions, of the bitter The most recent changes in Rus¬
quate unemployment compensa¬
struggle for racial justice, of our sia, Poland and Yugoslavia have

have-

been

leveled

against

us.

sending their
experts here to learn our methods.

to note that they are

tion

serves

to cushion the impact

been in the direction of increased
over rising rates of crime
of the business cycle. The faster
delinquency. But if they read incentive and decreased state conThey have gained partly we carry out this basic reform,
wisely they will see that these trols.
the greater can be our assurance
events are news precisely because because they are moving our way.

concern

and

the moral conscience of America

If

is rebelling against injustice and
discrimination.
We believe it is

move

morally
rob

fight
our

of

American

for

racial

rate

our

and

fellow

worker.

justice

religions faith,

freedom

for

hoodlums

for

wrong

the

a

discrimination

minority

We

are

tle

is

because

group.




cannot

against

The

to

traditions
decent regard
tole¬
any

be because

we

revive

course

should follow if

we

to win this

therefore
to

the

idealogical bat¬

clear.

fullest

We

must

pioneer

our

to

occur,

lem

is

major economic prob¬

inflation.

the

tinent.

We

must

the

Communist

are

a

decadent

a

con¬

the

a

If

dilemma.
reform

tax

afford

will

a

we

until

look
we

that must be

we

the cost and price

policies of busi¬

conferencejshciuld not be
out outlining
of the new frontiers
j-JJ" America in the years ahead,
exciting potentials of a dy-

tax cut, .our economy

denied

vitally.

7.
^".^lia.mlc?.
7.
The
importance
of economic °.m/
tPmv unbelievable,
growth to our fiscal position.-.is':
A. $^$9'.-WJj®*1 S1"088 na^0,?f
indicated

l^uuuc-t is within our reach by
.raterate of
if
in-

by the fact that if our

to grow, atethe
would have $10
and by 1968,
we can
billion
more
in tax receipts in.crease bur growth rate, to
r
1962 than if we were To, continue V „■ Completion
of our 41,00-mile

economy were

of 5%

year

a

we

5%.

.

of interstate highway system, doubling the facilities of our colleges
and
universities, elimination of
Blueprints Further Economic
- the
pockets of poverty that
Reforms
v' y
y y
trouble the conscience of a rich
Consequently, I suggest the .fol- nation, restoring the vitality and
lowing proposals not .as Adminis- beauty of our cities through urban
tration policy but as ,areas that renewal—all these goals are atshould have top priority for con- tainable well within this generasideration by the Administration tion.
and by the Congress in its next
And when we consider the exsession.
■
yr.. .•
y .plosive
progress which will
be
In this day of rapid •teehnolo'gi- produced
by expanded research
cal change we need more liberal in industry, medicine and other
treatment
of
depreciation " :for areas, ,the prospects are breathbusiness taxation purposes. Only taking in their magnitude,
in this way can we stimulate-the
But exciting as these prospedts
taking of risks by .investing in are> lhe greatest goal of all Ires
new plants and equipment, y
' in the international area. Arnold
We
should
consider : the eco- Toynbee wrote in 1951 that 300
nomic effeccts of downward ad- years
from
now
this
bloody
justments in business taxesvThere Twentieth* Century will be reare strong reasons to believe that
membered not for its splitting of
the stimulating effects of even a the atom, nor for its diminutions

to

grow

at

recent" rate
'

the

iy2%.

.

small cut in the corporate tax
of 52%

rate

0f distance and disease, nor even

for its shattering wars, but for
a "having been the first age since

would lead to more rather

than less revenue.

should

y^

also

be

in which
it practicacivilwhole
human race." This is the ultimate
challenge for us in this last half

the dawn of civilization

to a complete overhauling ^people dared to think
of the present hodgepodge of ex- ble to make the benefits of
cise taxes. If the taxes on liquor ization
available to the
given

cigarettes are left as they are,
general manufacturers' excise
approximately 1V2% would
bring in as much revenue as is

and

tax of

we

and: fhdr^r, genuine
"r"'yy'vy-y: •

needed stimuli tor growth.

a

closely — the monetary
fiscal policies of government,

.

wait-for needed completed wit.
we believe
we-J?1
some

been

have

watched

people,

that

we

inflation

areas

and

to

When
of

causes

the lie
charges that
give

eco¬

as are

security-. ;y,y

budget deficit, this would appear,yy* New Frontiers for America /
a completely academic ques- ,!,
.
,
,,
.
tion. But we are faced here with

Consideration

A second

into

developed

such

"miore yncome

expected" $12 billion

our

to be

mild.

find three main

that

in

bound
will remain brief and

spirit of adventure and growth—
vision

setbacks

occasional

that

nomic activity,

their way.

We

our

man

•

it will

lose

we

that of tax reform;* In the

light of

can

These

present.

ward the objective of

tion.

lem is

one

through which we are passing at

establishing
higher minimum standards for the
The Communist world has made
level of benefits, their duration
also gains but at the cost of inhuman and their coverage.

Struggle for Right and Justice at

see

fear

to

searching for the truth.

Unfortunately,

boldness the

and

dynamic and growing econ¬
omy is bound to cause hardships
equality and constitutionalism—
to some of the people involved
have universal validity and appli¬
in the process of change. As new
cability. The rights we have de¬
businesses come into being and
fended are natural rights which
others
grow,
some
will be re¬
come
from God.
All men are
placed. And in a free economy we
created
equal.
In
this
sense,
must expect readjustments from
America indeed has a mission. A
States

to offer.

The Soviet tourists
our

alone.

opponents
have much

our

principles

principleyw^i^ywill keep
from doing
oughL-to<:do to
growth. Our goal should
interests of union members.
r
*
P iashion a tax ^structure
Our third major economic'prbb- which, will
create^ more jobs,

of the Twentieth Century,

Modern-day Malthusians to

the

Volume

188

Number 5776

,

.

The Commercial and Financial
Chronicle

.

(1027)
contrary

notwithstanding, if

statesmen

keep
of

Twentieth

us

of

will

see

of

of

be

seeing

than

to

that, the

enough to

play

a

-

with

drop in total inventories in July came from a fall of
$400,000,000 in manufacturers stocks, with the decline split equally

in

made

is

between

not

It

tion

effort

struggle,

must

our na-

be

can

y

000 to

be

total without

from

community.
'The

In

take

to

America's

heart

School

monition
nomic

"to

weld

prowess

David's
to

their

similar

a

facilities.
■

ad¬

the

duction

dream

and mankind.

of

Inc.,

A.

Messrs.

last

than

/

/

month.

as

of

95%

an

of

this

'

estimated

month's

<

403

5,026

units

compared

to

production will be 1959
share for the new versions

Buick will be the first of the

publicly, again barring strikes

in June and 30.5%

is

slated

which
to

1959 models to

could

go

on

delay the an¬
display in dealer

above the

/

856.

from

to $104,770,-

the

$56,213,291 of the prior month and exceeded the
/
$33,359,346 of July a year ago, by 214.1%. The July, 1958, level
..was 11.7% less than the record high of
$118,626,434 set in May.
-

Steel

.

industry will spur the nation's recovery from
doldrums, "Steel" magazine predicted on Monday

economic

339,890 tons compared with a monthly average of 214,000 tons
since the recession nit the industry in June, 1957. -

:

■

r

OKLAHOMA CITY,
Gillespie &
Co:

Okla.

M.

has

*

—

Demand for

»

Federal

business.

.

Partners

Mr.

with

Whittington
Guerin

&

CORAL

..

2C4

in

a

;

Loving, Jr., limited
Gillespie-was for¬

Honnold
was

&

Co.- Mr/-

with

Eppler,

securities

business.

was

at

a

(Special to The Financial Chronicle)

ANGELES, Cal.—William
Zander is conducting a securi-

West Sixth

Car

Sept. 6, 1958 output decreased by 247,of the previous
week, but increased

Loadings in Week

Prior Week but Were
were

11,745

Ended Aug. 30 Rose 1.9% Above
13.4% Under Like 1957 Period

revenue

cars

or

freight in the week ended Aug. 30, 1958
1.9% above the preceding week.

Loadings for the

week

ended

100,188

1957

decrease of

week, and

a

Aug.

cars, or 13.4%

30,

1958 totaled

offices

Street.




at

1319

645,432

below the corresponding
or 17.7% below the

138,934 cars,

corresponding week in 1956.

Automotive Output Held at Low Levels Last
Week As
More Manufacturers Moved Into 1959 Model
Assemblies
Automotive

production for the week ended Sept.
5, 1958,
according to "Ward's Automotive Reports," remained in low
gear
although several more manufacturers turned to the
assembly of
1959 models.

j

Last week's car
output totaled 13,793 units and compared with
II,572 (revised) in the previous week*' The past week's
production

total of

and trucks amounted to
18,819 units, or a decrease of
under
that of the previous week's
output, states
:
'..-a- i
f
Last week's car
output rose above that of the previous week

1,663

cars

units

"Ward's."

ton

to

$42.67.

steelmaking

prices

scrap

rose

another $1

The tone of the market is easier with mills gen¬

look.
.

Last week the agency
reported there were 5,026 trucks made
States. This compared with

week and

8,910 in the previous

17,416

Lumber

a year

ago.

Shipments Advanced 10.8% Above Output in
the Week Ended Aug. 30, 1958

.

;

Lumber shipments

of 462 reporting mills in the week ended
10.8% above production, according to the

Aug.

30, 1958, were
"National Lumber Trade Barometer." In the
orders were 5.6% above production.
Unfilled
to 45% of stocks.
Production was 3.3%
and

new

orders

above the like

6.9%

were

week

in

Business Failures Turned

period

same

orders

new

amounted

below the

previous week and

1957.

Sharply Lower in Holiday Week

Commercial and industrial failures dropped ta 191 in the
holiday week ended Sept. 4 from 246 in the preceding week, Dun
& Bradstreet,
Inc., reported.
Not only were casualties lower
than in any other week this
year, but they also dipped below the
208 in the comparable week last
year and the 196 in 1956. Failures
9% fewer than in the similar week of pre-war 1939 when
209 occurred,

were

Liabilities of $5,000 were involved in 16.9 of the week's casual¬
The toll in this size
group declined considerably from 213 in

ties.
the

previous

small

week

failures

and

with

last week and 23 in

liabilities

in

excess

185

a

year

A

ago.

milder

dip brought

liabilities under $5,000, down to 22 from 33
1957. Twenty concerns succumbed involving
of

$100,000

against

as

25

in the

The

American

capacity

for

Iron

of steel

the

and

Steel

companies

week

Institute

will

beginning

announced

average

Sept.

8,

*109.8%

1958,

that

the

of steel
equivalent to

preceding

week.

This week's decrease centered

principally in retailing, where

failures

dropped to 91 from 138, while the construction toll de¬
clined mildly to 28 from 35 and commercial service to 15 from 18.

In

contrast, manufacturing casualties edged up to 35 from 34 and
wholesaling to 22 from 21. More manufacturers failed than last

year

and service

concerns

mortality fell below

a

equalled their 1957 level. In other lines,

year ago.

Geographically, casualties turned down from
week

in

six

of the

nine major

regions.

the

preceding

The total in the Middle

Atlantic States declined to 55 from
80; in the East North Central
to 28 from 49 and in the Pacific to 46 from 69. On the other
hand,

week-to-week
North

increases

prevailed

in

Central and Mountain States.

the

South

Atlantic, West

Trends from last year were

mixed, with five regions reporting fewer failures and four report¬
ing mild, increases.

Wholesale Food Price Index Set

a

For Week Ended

New Low for the Year

Sept. 2

The wholesale food price index, compiled
by Dun & Bradstreet, Inc., fell again last week to $6.39, setting a new low for the
year 1958. The previous low of $6.41 was on Jan. 7 of this year.
While the index of Sept. 2 was down 0.8%

prior week, it

was

up

1.1%

from the $6.44 of the
from the $6.32 of the similar date a

year ago.

rye,

operating rate

•

by 2,221 units, while truck output dropped by
3,884 vehicles dur-1
ing the week. In the corresponding week last year
90,704 cars and
17,416 trucks were assembled.
/*

erally holding back orders pending clarification of business out¬

LOS

business from

50, up 2 points.
"Steel's" composite of

William E. Zander Opens

ties

of

points; Cincinnati at 77,
points; Detroit at 74, up 0.5
point; Western district at 70, up 0.5 point; Wheeling at 68.5, down
11.5 points; Eastern district at
63, up 2 points; Pittsburgh at 54,
down 2 points; Cleveland at
52.5, down 2.5 points; Birmingham
at 52, down 1.5 points; Buffalo at
51.5, no change and Youngstown

engage

He

that steelmakers had to pay double time and a
quarter for holiday

St. Louis at 79% of capacity, down 3
down 0.5 point; Chicago at 76, up 2

GABLES, Fla. —Fred¬

Aragon Avenue to

Steel operations last week declined a half point after eight
straight weeks of improvement." Furnaces were operated at 63%
of capacity with output about
1,700,000 tons of steel. Considering

work, the cutback was remarkably small. During the week
July 4, operations fell 10 points with district rates as follows:

Turner.

formerly with Slayton & Co., Inc."

E.

that

that of the comparable 1957
week and
increase of 1,070,000,000 kwh. above that
of the week

an

..

erick E. Wood has opened offices
at

shipments the largest in two

ing briskly at the retail level, breaking the log jam of finished
goods that ,has blocked sheet orders, this trade weekly further
reported.
."
'

are

Frederick E. Wood Opens
J

below

,

Graham

merly

programs with June

/The railroad equipment market, which has been depressed all
year, is showing signs of life and household appliances are mov¬

Gillespie and Eugene
Whittington, Jr., general partners,
partner.

iiighway

•

Charles M.
and

reinforcing bars has improved steadily, aided by

C.f

been

formed with offices at 4305 North¬
west 43rd Street to
engage in a

securities

July, it noted, was significant in another respect in that
bookings for fabricated steel exceeded shipments for the first time
this year. As their backlogs
grow, fabricators will abandon handto-month
buying policies and build inventories of structural
shapes, "Steel" stated.
-

-

Gillespie Co. Opens

kwh.

347,000,000 kwh. above

5.1%

The construction

the

i

Mr.';-

J.
Forlenza, floor,/ broker,'
representing Rubber Group;- Ed¬
win E. Nugent, Harris, Upham &
Co., representing Silk Group; and
Joseph Fischer, Joseph Fischer &
Co.,
representing
Non
Trade
Group.

c. M.

For the week ended

000,000

above

Output Set to Attain Highest Pace of 1958
At 65.4% of Rated Ingot
Capacity

-

^

preceding week.

below; shipments 1.6%

,

.

the

$555,150,809 of July 1957.

last.'/ ;:.T ■ ■?*'■
Rousselot;f are:
Christian V Baur,7
y .
.,V/, '• .. • /'/■'
' ' • -r
Harmon, Lichtenstein & Co., repIf bbsejwcd that building requirements are at a seasonal
peak,
resenting the Metals Group; Louis
helping to offset the unexpected slowness in automotive buying.
Cohen, floor broker, representing /-Construction bookings for May, June and
July surpassed those of
the
Hides Group;
Benjamin B.y any three-month period on record.
Millenthal, Millenthal & Tyson,
July soles of fabricated structural steel used in construction
representing Commission Houses;';
reached the highest level in 14 months. Fabricators booked orders
Felix

.

6, 1958,
12,025,000,000 kwh., according to the Edison
Output last week was somewhat smaller than

estimated at
Electric Institute.
was

in the United

City, the valuatioh of

New, York City permits in July climbed 86.4%

Dinner

by

8%

an

,

the

Pontiac

building permits issued in 217 cities rose to another all-time high
in July, Dun & Bradstrcet,
Inc., reported.
The aggregate was
$724,235,660, up 3.4% over the previous record level of $700,633,-

President

announced

*s ^ase<I 0,1 average weekly production

The amount of electric
energy distributed by the electric light
power industry for the week ended
Saturday, Sept.

and

/,

It observed that

.

bow

founding of Commodity Exchange,
Inc., 25 years ago.
members

totaled

Boosted by a sharp rise in New York

recep¬
tion and dinner to be held Oct.
9,
1958 in the Grand Ballroom of the
Hotel Astor in celebration of the

-Other

trucks

nouncement, while Buick
showrooms Sept. 19.

their committee will be in
charge
of all arrangements for the

Committee

were

Although the threat of strikes clouds the outlook, the statis¬
declared, passenger car output in September is sched¬
at 19a,500 units, an 8%
improvement over August's 180,313
-u-nit total.
:/

.:/•'/
Purkiss and

and

was
*101.6% and pro¬
the actual weekly production

130.5%.

or

cars, a decrease of

models, it added, compared to

Rousselot,./ partner,

Klein

last week

tical agency

Committee/J:?

Francis I. du Pont & Co.

models

uled

';v".

announced by

was

Harold

of

Electric Output Continued to
Decline in the Latest Week

Michigan plants and outlying B-O-P

,

Anniversary Dinner Com¬
for Commodity
Exchange,

mittee

A year ago,

19L7^1)49^ *>ro^uc^011

1'

Loadings of
new

*hg turned out, "Ward's" noted
Lincolns and Thunderbin
7 the
Wixom, Mich, plant. This
facility will end activity in mid-September.

appointment of Joseph A.
Klein, Joseph A. Klein & Co., and
Albert Purkiss, Walston, &
Co.,
Inc., to be Co-Chairmen of the*
Silver

pro¬

only 1958 models stir

More

The

car

v

of

The

Commodity Exchange
Dinner

passenger

are

I

America

rate

month ago the rate

a

placed at 2,097,000 tons,

registered

8,910 in the previous week.

its campus

ultimate

like

with Chevrolet, Cadillac, Edsel, Mercury, Plymouth
Studebaker-Packard idle, "Ward's" estimated the week's out¬
at 13,793 cars contracted to 11,572 the week before.
Pro¬

put

50 years from "
could mark the realization of

now

a

t/However,

and

eco¬

drive,.

tical function in society," the cen-'
tennial celebration which will be
on

industry United States

Turning out their first

skill and
creativity in their dan¬
gerously neglected social and poli¬

held

the automotive

and Qldsmobile at both their

businessmen *

Dean

adjusted $11,000,000,000, while retail sales gained
to a $16,700,000,000 total.
^

Reports" disclosed,
into 1959 model
assembly.

be proud of the
magnificent;
contribution its
graduates have;:
made to the nation in its first 50

If

was

by $100,-

the past week, "Ward's Automotive
although several more manufacturers moved

can

years.

off

duction remained in low
gear

business '

Business

were

actual

week ago.

ended Sept. 8, 1956.

"

Harvard

steady, and retailers inventories

average weekly

an

before.

For the like week
duction 1,632,000 tons.

Wholesalers

an

amount

maximum

a

the

makers.

$12,100,000,-

total just as'
the Communist effort is total.
And no effort in a free nation

contribution

goods

000, and retailers' goods on hand came to $24,000,000,000.
Sales of manufacturers in
July rose $600,000,000 to a total of
$26,300,000,000 with the gain split about evenly between durable
and non-durable goods makers.
Wholesale sales rose $100,000,-

inadequate appro¬
priations for developmental loans,
technical assistance, and
informa-j
To win this

non-durable

Manufacturers stocks at the end of the month stood at
$49,300,000.000.
Wholesalers' inventories amounted to

should,;

we

and

a

on

27

Output for the week
beginning Sept. 8, 1958 is equal to about
65.4% of the utilization of the Jan. 1, 1958 annua!
capacity of
140,742,570 net tons compared with actual
production of 61.7% the
week

000,000.

"notj

is

durable

stocks stayed

pitifully

tion.

manufacturing and trade sales, however, rose for the
up $800,000,000 in the month to an

"'103.7% of capacity, and 1,666,000 tons

The

statesmen:

diplomats alone.
enough to increase, as

Industry

This

straight month, going
adjusted $54,000,000,000.

part
is

It

our

Total

-

greater

a

decision

June.

the

■

that this responsi¬

say

of

end

equalled the drop from the end of May
end of June, but was less than the
$700,000,000 average
monthly decline in the second three-month period of 1958.
to

Aid
a

and

our

the

fourth

of freedom.

rests

in

or
.

International

the side

bility

of Trade and

1

achieved

freedom

people could have

mission

I,764,000 tons of ingot and steel
castings (based
for
1947-49) as compared with

production

this

slavery?

More

on

Century

progress

climate

4

page

can

The critical question is

this

climate

No

from

breakthroughs 1

realization

approach

-—will
a

Continued

scientists, the last half of

objective.
in

businessmen

pace with tne

our

the

and

our

Commodities quoted higher the past week were flour, wheat,
butter, eggs, steers and hogs. Lower in wholesale price were

oats, bailey, hams, lard, coffee, cocoa and potatoes.
The index represents the sum total of the price per

Continued

on

pound of
page

28

Financial Chronicle

The Commercial and

28

Thursday, September 11,1958

...

(1028)

industries.

in the non-durable goods

centered

June

cline

continued, although at a slackened rate, in the adjusted
value of manufacturers' inventories, which at the end of

book

Industry

The State of Tiade and

and its chief function
general trend of food prices at the wholesale level.

foodstuffs and meats in general use

31 raw

is to show the

Index Rose the Past Week
Spurred by Far East Situation
The grain futures market showed greater strength in the past
week than it has in over a month. All contracts on the Board of
Trade at Chicago closed at prices higher than those of the previ¬
ous
week.
The major influence in this rising market^ was the
•fighting between the Chinese Nationalist and Communist loiccs
and the statement by the President that the United States would
Wholesale Commodity Price

Formosa.

defend

000,000 in the similar

Retail

previous week.

at the end of the

prices were down last week in active trading. The
opinion prevails that the supply will be more than sufficient for
world use even though the producing nations agree to market
stabilization plans. Profit taking and liquidations had cocoa prices
fluctuating early last week. Then, news of the larger than esti¬
mated Ghana crop dropped prices well below those prevailing
at the close of the prior week. In the world sugar futures market,
Coffee

ended 25 to 50 cents lower than at the previous
despite a recovery in late sessions. The late gain
8, the most severe August
decline in more than 30 years.
Salable receipts of cattle in the

slaughter lambs and ewes was

moderately active in Chicago and

prices held firm.
order volume continued to improve

in the latest week

despite only moderate demand from the auto
is anticipated for this week.
In
the
domestic market, cotton prices

industry. An even

Steel

faster pace

continued

to lose

ground. The sharpest decline was recorded by cotton for delivery
next July. Provisions of the new farm bill are expected to have
more influence on the July contract than the high support level
for cotton this season.

Like Period

a

Ahead of

week
retail
volume equalled or edged slightly ahead of the similar week a
year ago. Gains in children's wear, linens and furniture were off¬
set

by dips in major appliances and new passenger cars.
The total dollar volume of retail trade in the period ended on

Wednesday of last week was from 1% below to 3% higher than
a year ago, according to spot estimates collected by Bun & Bradstreet, Inc. Regional estimates varied from the comparable 1957
levels by the following percentages: South Atlantic States +2 to

+6%;

England and West

New

West South Central

South Central and
—1

+5; East

Central +1 to

North

0

+4; Middle Atlantic

to

4-3; Mountain and Pacific —2 to 4*2 and East North

to

Cen¬

in the buying of children's wear
college wear continued. Favorable weather also helped to
bolster selling of sportswear, handbags, gloves and other acces¬
sories. Interest in women's dresses remained mild.
Purchases of
The back-to-school upsurge

men's slacks

clothes increased, but

work

and

generally lagged.
stepped

wear

Consumers

week.

Bed

room

sets

purchases

up

moving

were

furniture

of

well

shopping in men's

during

and retailers

the

reported'

heightened in linens and
up appliance buying in
appliances slipped. Best
mixers, clocks and frying
pans. Purchases of air conditioners dwindled to a standstill.
The holiday stimulated sales of picnic food specialties, ice
cream, fresh fruit and vegetables.
Purchases of dairy products
lamp sales ahead of last year. Interest
bedding. Although promotions perked
some
cities, over-all volume in major
sellers were smaller items such as irons,

week ago, while the call
goods dipped miidly.
Grocers reported volume up
noticeably from the preceding week and from last year.
As buyers converged on the New York market, an upsurge
began in women's coat and suit orders. Calls for better dresses

and

bakery goods matched the level of

for

issue

decided

be

can

three

on

expanded,
fabrics

with emphasis on the relaxed silhouette, textured
strong colors. Wholesalers reported a rush on re¬
juvenile wear, particularly in young men's styles on

and

orders

for

which

retailers

were

caught short.

the Dallas and Portland

cruise

wear

Orders
week.
York

for

or

was

off in

holiday markets, purchases of sports and
bettered

a

year ago.

Not

perhaps—cer¬
in the news
these days—is the military front.
We live in an age when both this
the one most

country and its principal antago¬

the capacity to destroy
each other. Nothing but the sheer¬

nist possess

est

insanity

solution
tween

kind

a
be¬

differences

the

of

anticipate

could

by military means. This
would be not

us

"solution"

of

moral

and

While

mankind.

we

concern

must

be

prepared militarily to defend our
freedom, we must never cease
searching for the peaceful way of

avoiding

holo¬

thermonuclear

a

caust.

upholstered furniture

remained strong the past
briskly throughout the gift show in New
with ceramics proving exceedingly popular. In the Atlanta

purchases

and electric

were

goods.

reported

heavy

in

dinnerware,

plastic

Both attendance and sales expanded at
There continued to be heightened inter¬

floor covering markets.
est
in curtains and draperies.

Re-orders

were

coming

in

on

novelty cafe and tier styles.

Steady volume was transacted in wholesale food markets dur¬
ing the week. The Dun & Bradstreet wholesale food price index
dropped to $6.39, a new low for the year.
Transactions

although
sateen

some

and

in

cotton

improvement

bark

gray
was

goods continued to be sluggish,
noted in print cloths, broadcloth,

cloth.

freedom

of

pursue its
objective of
domination, utilizing every
stratagem and tactic at its com¬

essly

to

world

mand.

conclude

to

dissolved

of our

balance

the

for

tone

will set

issues

politico-economic

major

these

of

resolution

The

century and will shape the
lives of the next century. The is¬
sues
cannot
be
evaded: among

own

them

strength and political viability of

we—the

that

establish

tive,

must ask: How does the

we

Soviet

issues?

perspec¬

own

our

challenge touch upon these
The Soviet challenge, we

know, is all-pervasive. It will be
felt increasingly by American in¬

and labor; we
the troubled

business

dustry,

have only to look at
state

nations—are losing on the political

with

shall continue
quickly
effectively to engage in this

East,

States

the

and

other

of

relations

economic

our

South

sustain

which

its

Middle

America, the

offensive.

economic

future superiority and

This is in spite of the

fact that:
—We have witnessed in Russia

astonishing recovery and re¬
from the devastation

an

habilitation

and casualties of World War II;
know

—We

built

a

Soviets

the

have

most formidable military

establishment and in the future
will

have

and

weapons

weapons

systems
capable of delivering
catastrophic
destruction
in
a
matter of minutes to any

the

of

nation

world;

mounted
political of¬

—The Soviet Bloc has

economic

an

and

against the freedom of
independent, less-developed
countries
and! exploits tension
and turmoil everywhere; and

fensive
the

Soviet Challenge

Persuasive

To

our

assure

developed areas of the world; the

explosive implications of the pop¬
ulation trend; and th e in dustrial

All

especially

strides,

areas

security.

the fate of the under¬

are

total output.

is that Russia is

Relatively, our economic superi¬
ority is diminishing and we seem
unable or unwilling to make the
economic investments which will

however

is of lesser importance.

large,

the

free¬

and

issue,

other

Any

dom.

the

from

totalitarianism

tween

free

United

incontrovertible

have

•—We

proof of Russian scientific and
technological strengths and ca¬

which challenge our
nurture the Soviet econ¬
omy and ominously enhance its
military technology.
pabilities

own,

But this is not the
To

engage

Russians

us

can

on

whole story.

any

front the

exert their total eco¬

power—the totalitarian na¬
their
political system
it possible for the Soviets
and
to marshal firmly their resources
battle for freedom with all the
and plants, their manpower and
resources at our command.
ers
believe what they say—that management, to be totally com¬
Inseparable from the political they do not want a military war. mitted to Russia's political goals.
communist
technique
not
front is the third battle ground— Khrushchev, however, has declared The
the economic front. This may be war in the field of "peaceful pro¬ only permits but makes manda¬

front, and that
to lose unless

prepare

the most important
it

is

this

in

social

duction."

man

Issue

political

empty stomachs

revolutions, that
the prel¬
political collapse. The only
exceptions have been where free¬
political

cause

economic collapse can be
ude to

dom is

so

a

When

uncertainty leaves
incentive to work out politi¬

certainties.

World

Without economic

activity

and
strength,
political and

vitality,
strength.

nant
years

it

is

the

tory

last

40

World

since

million

and

took

communism
was

War

over

industrially

an un¬

country. During
II
30,000
factories

there

and

towns
were 37.5

70,000

destroyed,
casualties

and

12

million

instantly

economies only in
develop in accord¬
democratic principles

mobilize their
of

time

war,

with

ance

superior methods for marshalling
and managing their economic re¬
sources.

Sheer

Total

of World Population

the
very
certain
changes in the world political pic¬
ture
is the
sheer total of the
Among

USSR is the
industrial and eco¬

world's

people.

Nations

study

power in the world — its
national product, in abso¬
of
man's
freedom
in
the lute terms, exceeds that
of the
ahead. If this is the case, United Kingdom, France and
certain that a
very
great Western Germany combined. And

world's

Thus,
prove

activity

the

of

gives the Russians a sub¬

devastated,

there cannot be real

social

evidence

derdeveloped
were

vitality,

this subject, that
the Russians will

particularly

Russia, it

Economic

cal

sure

stantial basis for their confidence.

are

wholly unacceptable.
little

am

total economy, to

The

people that the

freedom

to

I

most

years,
War II,

deeply imbedded in the

consciousness of

makes

economically

Management

and

know that

We

believes

of

ture

what he says on

often

status.

Economic

he

nomic

concentration of their
be directed al¬
wherever
their
bury us. The issue could not be leaders want, in response to de¬
stated more sharply.
And a re¬ velopment
plans,
military re¬
cent study of the Committee for quirements,
economic offensives
Economic Development says flatly and changes in the world's shift¬
that Khrushchev's threat cannot be ing political picture. It is impera¬
dismissed
as
merely
as
"idle tive that the free nations, which
boast."
traditionally have been willing to

front of all, for

that

area

feels first the effect of his
and

Asia and other areas.
Unquestionably,
the
Soviet
challenge on the economic front
will mount. I think Russia's rul¬

we

we

economic

deaths.

factors

day lull.

wear

quality

area

gross

the ebulient Khrushchev has pre¬

will

greatest

dicted

will be in the

period

that "in

of time"

overtake

its

decisions, in man¬
agement's grasp of the political
realities of life, in management's
of

the

nomic

can

to be the greatest determi¬

test of management

Today

second largest

of men's




that cannot be
struggle be¬

connotations

cal

in

me

giant

those

those which have politi¬

are

us

we

most

ahead

important economic issues
of

Looking at today's world I am
forced

determinant within this

Most of the increase

can

the

that

fact

the is¬

being tested—is the political front.
The Soviet Union continues ruth-

be management. And the

the United States Department of Commerce.

moment

one

the

overlook

be tested—is

will

Trading in carpet wool remained quiet.
dyeing and finishing plants reported a pre-holiSpotty orders were received with a shift from processing

activity on women's apparel.
Advancing mildly again in July, manufacturers' new orders
totaled $26,300,000,000
after seasonal adjustment, according to

It is true that
still have a

we

lead

ternational

the free nations.
A second front on which
sue

Middle Atlantic

to

for

In

military establishment and its in¬

unfettered

exercise

to

capacity

The most obvious

tainly

alternatives

Housewares sold

market,
ware

equalled

While attendance

in

wisdom.

fronts:

canned

a

moment

making

To American Management

tral States —1 to —5%.

and

this

substantial

Freedom and the Challenge

fundamental

continued to step up apparel purchases last
furnishings buying held at an even pace, over-all

requirements.

consumer

What alarms

for

As shoppers

to

contrast, only 17% of our GNP is
in capital expansion for
the future,
and 8 to 9% in our

invested

from page 14

annihilation
of
organized
society but an abandonment of our

Year Ago

27% to industrial and
development, and 47%

purposes,
economic

at

only

Trade Volume in Latest Week Slightly

and home

'

military programs.

decline in effect since Aug.

Chicago livestock market were the largest in six weeks, although
only a few thousand head over the prior week. Prices on live
steers remained unchanged at the close of the week.
Trade in

ours.

corresponding period in 1957.

close

a

growth is approxi¬
three times greater than
According to the recent
Rockefeller Report on "Foreign
Economic Policy" the Soviets al¬
locate their GNP 26% for military

mately

23, 1958, an increase of 4%
(revised) was reported. For the four weeks ended Aug. 30, ^1958,
an increase of 2%
was reported.
For the period Jan. J, 1958 to
Aug. 30, 1958, an increase of 1% was registered above that of the

Continued

is its alloca¬

GNP

the total

Industrial

of

-'"'-V

In the preceding week, Aug.

Butcher hogs

ended

that of the United

tion and the fact that Russia's rate

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended Aug. 30,
1958 showed an increase of 4% from that of the like period last
year.

present

billion.
the Soviet

ago

years

33%

was

than

according to

and sales of women's and

weather stimulated purchases

Cool

its

from

States; in 1958 it will probably be
45%; and within 15 years it may
equal our highest GNP to date.
But of far greater significance

City the past week

10% above the like period a year ago,

observers.

trade

prices reflected the increased tension in the Far East and closed
higher by several points. Prices in the domestic sugar market
remained unchanged from the preceding week.
week's

GNP

last year. In the preceding

volume in New York

sales

trade

advanced 5 to

years
will rise

Only eight

1958, a decrease of 1% was

the period Jan. 1, 1953 to Aug. 30,
reported below that of 1957.

15

170-180 billion to $450-475

week, Aug. 23, 1958, a like increase was reported. For the four
weeks ended Aug. 30, 1958, a gain of 3% was also registered. For

children's apparel were brisk.

the week-end, prices held
Principal interest centered
on the progress of the harvests in Texas and Louisiana.
Flour was
unsettled after advances during the week, but closed higher than
Although trading in rice slowed at
even with those of the previous week.

next
GNP

above the like period

—

probable that over the
the Soviet total

it

makes

month of 1957.

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended Aug. 30,
1958, rose 3%

growth

roughly twice that of the U. S. —
even
if slower than in the past,

This compared with $53,800,-

July had dipped to $49,500,000,000.

economic

total

sia's

A de¬

from

27

Continued from page

and

a

short historical

the

surpass

States in per capita
.

-

Soviets will
the United

output.

The relatively fast rate

of Rus¬

is

A recent United
predicts that the

population—which today

the order of 2.7

on

billion peo¬

in 40 years.
What
are
the politico-economic
implications of this?
Is it eco¬
nomically possible for the pres¬
ently
over-populated areas to
ple

—

will

sustain
of

still

themselves

onrl

the

in

greater demand

resources?
cinn

double

Can

political
whirh

on

face

their

aggres-

mP V

Volume

Number

188

5776

.

.

.

The Commercial and Financial Chronicle

(1029)
where needs
in

not

are

check—or

will

Second,

met, be held

it

explode and

that

population pres¬
sure will
present strategic targets
for communism's offensives, just
as
accelerating nationalism does
in Asia, the Middle East and Af-

ness

involve

the world?

all

the

rest

This

rica.
We

that

hope

can

Soviet

the

will mis-manage itself into a col¬

lapse.

But it is hazardous to rely

such

on

hope. Far too long have
ourselves
wifh the
notion
that
the
Soviet
system
somehow would stagger and col¬
We must recognize that
lapse.
within Russia, however we de¬
spise her political techniques and
ends, there is an increasing and
influential segment of the Soviet
a

deluded

we

population

which

the

fulfillment

responsibility

of

possibly

each

well

thereby

requires

manager

and

of

only

his

to

and
total

our

national

imperative objective of long-run
economic growth and strength. It
is the manager's duty to partici¬
pate in the formulation of policies
which
this

the

assure

objective

of

achievement

establish

to

and

within his

business, industry and
community the environment
which supports those policies and
the

nurtures this concept.

Third, the challenge to manage¬
ment

includes

than

more

a

cessful response to the profit mo¬
includes the recognition

tive—-it

growing

the direction
over-all

or

.

not

drive of the

of

purpose

the

alter

large,

commu¬

nist rulers.

that

decades

The Soviet Union has

an

of national purpose

international

domination,
strated

objective
it

and

urgent

with the

of

has

world

demon¬

for its

objectives. When measured
the threat of communist
world domination, our sense of
national
purpose
is inadequate,
dangerously inadequate.
t>i.;
against

t

I

not

discounting our po¬
litical freedoms, our social and
cultural heritage, our dedication
to the spirit of liberty.
But I do
am

believe

that

we

similar

sense

of

—to

advance

We

must

There

is

do

not

national

what

we

the

take

have

purpose

stand

for.

offensive.

hazard in

great

a

simply

reacting to the Soviet challenge.
to a Soviet
action has been negative and de¬

Too often our response

fensive.

We must have

a

positive

shared and
supported
by the bulk of the
people, which ensures the realiza¬

program

of

our

own,

have

witnessed

acceptance

educational

responsibility

an

ever¬

of

war

must

social

This

needs.

which support

and their

has

long

American
been

for

noted

its

in¬

genuity and skill, for its organiza¬
tional
ability, lor the efficiency
with which it meets competition
and
adjusts to change. The ac¬

celerating

the

progress,

change

technological
rapidity of social
of

pace

here

and

throughout the
world, and the impact of the in¬
creasing power of international

communism

demand

that

we

modernize many of our social and

political institutions if
survive

we

to

are

a
free society. Here,
the. pervasive test: will
the traditional skills of American

then,

as

is

management
the

These four

adequate to
ahead?

prove

unprecedented

tasks

of management

areas

responsibility suggest

per¬

many

sonal questions for each manager:

interests?

"Have

accepted the respon¬
Such a program will be
sibility to understand and to help
composite of the aspira¬ formulate
and advance the policies
tions of free men and a clear
which
ensure
progress
and se¬
recognition of communism's de¬
curity?
termination and growing capacity
"Do we promote or penalize our
to thwart this realization.
officers and employees who serve
To advance our objectives and the
public interest?
to
meet
the
Soviet threat, we
"In what ways are we contrib¬
need, then, a sense of national
uting to our future strengths?"
purpose and a positive program.
If you will ponder the peril,
We need this at all levels of our
this list of suggestive questions
society. We need it urgently and
would extend to great length.
extensively
at
the
managerial

of

Responsibility

future

our

has

a

to management
significance for
because management

we

particular influence on our
conduct and well-being.
then
are
some
important

of management

responsibil¬
ity in meeting the challenge?
^
areas

First and foremost,
must

accept

its

management
responsibility,

along with others, to maintain
dynamic economic strength and

for
without
a
viable
economy the U. Sr cannot fulfill
the
aspirations
of
its
people,

growth;

maintain

a

viable

democratic

so¬

ciety and discharge its historic re¬
sponsibilities to freedom and the
free world.
The full acceptance
of this

responsibility demands an
realism, an at¬
titude
fully responsive to
the
period of protracted peril ahead.
The complacency, over-optimism
attitude based on

and

which has
recent
past

under-estimation

characterized

our

replaced by vigorous and
dedicated efforts to enhance all

must be

strengths—spiritual,
moral, economic, social and politi¬
cal. Above all it must be an atti¬
our

inherent

tude of selfless

dedication to

national purposes.




our

help

elsewhere

the

erect

and

free
bul¬

to

which

our

own

political freedoms, we must
export
education
and
training.
And until education can meet the

indigenous needs of these coun¬
tries, we must export skilled man¬
power too
scientists, engineers
—

other experts essential

and

the best brains

the

best executive

experience and
for the nation.'

We

"He lias been unable to do it...

must

face

I

embrace

should

like

fac¬

many

mention

to

a

to

an

received."

end of

the

brutality of Soviet

the

Get

reality

and

economic tac¬

Federal

government must be

Best Brains?

Government is by far the larg¬
est business we have and the most

demanding.
To
make
the
ma¬
chinery of government function
smoothly and efficiently requires
far

more

than

tax

dollars; it re¬

quires the finest managerial skills
and
techniques we can muster.
An

This

is

indictment

an

serious

ment

of

nature—an

the

indict¬

especially of American

agement.

man¬

is

It

equally an indict¬
political environment

ment of the

which deters too many from
gov¬
service.

ernment

But how does

free

management, in

society, respond to the

ernment's call for the best
tive

improve the

by which
technological
employed and by

processes

scientific

resources

which

and

are

decisions

carried

The

out.

and

made

are

Russians

have

demonstrated,

particularly
in
technology, great speed
efficiency in telescoping the
time interval between discovery

weapons

and

and

operational

stances
move

some

talent

they have proved they

at

the

help reshape the environment
that

service

to

government

positive attraction
patriotic duty?
is

It

time

to

is

a

remind

business

of
good
good public relations—it
is imperative. It is imperative not
merely
in
supplying our
best
or

talent to

government,
basis, but it is

term

a shortimperative

on

tion

as

world

time

fast
the

may

as

we.

fastest

carry

In

the

speak

of

business and

we

cern

of

for

our

the

our

with it the

concern

speak of

successful

democratic

under¬
the

means

American

in

indus¬

try, of labor. This means also ef¬
leadership in both public
and private life to help
under¬
standing develop.

fective

American
exert

segments

must

management

leadership
of

in alerting all
nation to the

for

our con¬

operation
governmental

the

responsibilities of
threats to our prog¬
existence as a free na¬

awesome

and

tion.

When

closer

that

have

we

toward

progressed
educational

our

democracy

will
and
outperform its
competitors.
Let

doubt

no

outdistance
totalitarian

beware of miscalculating

us

the dangers that beset us. Let us
take care not to suffer defeat
by

America.
del

of

our

national

our

respon¬

We

around

see

us

in private enterprise

all

on

sides,

well

as

a

in

as

lag time

in the transformation of manage¬
ment attitudes. As a people con¬

fronted
some

problems

by

than

any

ever

more

awe¬

faced before

by man, we are simply too slow
to
respond
to
the
inevitable
changes necessary to meet our

America

inevitable

burdens.

ment

well

can

this

from

which

take

the

long

a

lesson

academic

in

world

recognized

ago

the

need for refreshment of the well-

springs

through

the

sabbatical

leave of absence. Chesterfield said
it

all, I think, when he declared

that

"no

In no

does

man

who does

country

prospered

than

in

with it

our

earth has busi¬

to

the

as

paid.

responsibility of

"penalty" that must

a

I reject the penalty no¬

this is a part
of our liberty.

Let

carries

service. I have heard this

public

cost

handsomely

Success

responsibility; and I refer

course

be

on

more

own.

there

be

cannot

of

basic

the

mistake. Busi¬

no

indeed

and

been

men

can

should

make deci¬

large reservoir of

for

men

multitude of jobs—most of them
obviously at less than top rank—

a

and

all

at

levels

not Federal

of

government,

alone.

make

it means
decisions.

the

capacity

This

is

to

why

I

terest

scholars

by

of in¬

and business¬

we

future

of

our

Only .by
future and

We need to recognize, too, that
national commitments call for

management's

attention—the

immediate

func¬

tioning of government and public
service, the collaboration of gov¬
ernment and private programs to
blunt communism's thrusts and to
their

economic

well-being,
ourselves
about
peril and what we must do

and
the

would

Our

state

future

other

one

—

area

I

of

one's

competence to

rap¬

to manage efficiently a

progress,
to

of

provide for all the emoluments
"freedom—and yet carry to its

ultimate

success

our

historic

responsibility—depends

not

only in sci¬

ence,
engineering, business ad¬
ministration and other matters of
immediate

—man

will

and

be

de¬

termined, in all probability, on
the political-economic fronts far
from

our

shores.

It

world, Russia

facing fearlessly, the
responsibility to it

our

the

freedom

freedom."

to

perfect

Anything
our

less

past,

unworthy of tomorrow.
This is my
ment's

concept of manage¬

responsibility in the

pre¬

servation of freedom.

R. 0. Willmore With

Growth

where he

seems

to

mandatory, then, that there be

me

an

Our

was

in

future

strength

and

com¬

a nation will develop
proportion to our ap¬
proach to excellence in American
as

direct

for

Growth

charge of all the

activities.

he

with

financial

was

the

A.

O.

Smith

Corp., and prior to that was on
planning staff of Pitts¬

the control

burgh Steel Co.

Two With Hooker &

Fay

(Special to Tire Financial Chronicle)

SAN

FRANCISCO, Calif.—

Aurelio F. Ferrau and William J.

Kirby
with

have

become

Hooker

&

Street,

Fay,

associated

221

members

Mont¬

of

the

New York and Pacific Stock

Ex¬

changes. Mr. Kirby was previous¬
ly with Lawson, Levy, Williams &
Stern.

McAndrew Adds

to

Staff

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.—Mrs.

Diane

E.

to

staff

the

Inc., Russ

Teller

has

been

of McAndrew

Building,

added
&

Co.

members

of

the Pacific Coast Stock Exchange.

Hill Richards Adds
(Special to The Financial Chronicle)

PASADENA, Calif.

—

Aida M.

Lovell has been added to the staff
of

Hill

Walnut

Richards

&

Co., 490 East

Street.

,

•

Joins Harrison Staff
(Special to The Financial Chronicle)

himself.

petence
in

research

Previously
analyst

gomery

private action. The issue of free¬

governmental

communism

we

responsi¬

our

the

than this is unfaithful to

assist the free nations to advance

relevancy to its busi¬
ness
purposes, but to excellence
in the final product of education

our

vs.

from

freedom—the

'In addition to these several mat¬

ters which call for

tion—excellence

Capital Abroad

of

The

1950s, '60s

right to hope for what
Hocking calls "the most important

of excellence in American educa¬

entire way of life.

concert

withdraw

bilities around
will penetrate.

of its resources to the attainment

a

irreversible.

'70s will stand in sharp con¬
trast to the recent past.
Where

and

firm's research

men."

importance

Private

of
changes

years

see

Inc., managers of
Industry
Shares,
Inc.,

lack

a

icies is of inestimable and critical

participates in the
management of governmental pol¬
management

the

be

10

will

we

of

of

immeas¬
urably upon education. It is man¬
agement's
duty
to
employ
its
talents, its leadership,, and some

maintain that the degree to which

to

Another

Soviet offensive of the

society of growing complexity and

If good management means any¬

thing,

soft.

softness and
which will

manager

York

quote from the New

idly embrace the accelerating and
unpredictable benefits of science
and
technology, to maintain an
ever-increasing rate of economic

a

apa¬

a

Research,

I

Times—"because

who

do need

enough.

listlessly and

This forum had to be cancelled—

community hold a
intelligence. But we

sions,

Fortress

be

Blunt Ellis Simmons

central importance.

on

not

CHICAGO, 111. — Robert O.
example of this lack
of concern was a shocking event Willmore has
become associated
at a prominent eastern university with Blunt Ellis & Simmons, 208
South La Salle
only three weeks ago. There, as
Street, members
part of an annual conference on of the New York and Midwest
foreign policy, the university Stock Exchanges, in their research
Until recently Mr.
scheduled a forum by a group of department.
experts on rockets and missiles. Willmore was vice-president and

the

monopoly

im¬

baleful

educating

business

us

an

quicksand concept of such
false Fortresses
America, we risk
losing all. Up to now we have

Interest

of

let

even

ideological
would

drift

we

cita¬

but

that

and

nothing else."

ness

of

business well

Lack

A

also

thetically, aimlessly and witlessly

if

business management is to get
a
clearer insight
into the me¬
chanics of government. Manage¬

nation is the

freedom,

pregnable

have

sibilities.

Our

of

remember

of the peril and the dimen¬

dom

transi¬

decisive margin of power.
We

of

public
This

government, too great

that public service on the
part
its key people is not merely a
idea

exists.

shareholders

a

as

well

as

so

broader

a

scope

And how does management

nature

understanding of management, of

gov¬

execu¬

hour when

an

a

until

standing

sions

can

twice

shoulder
the
ress

into

peril*

in¬

modem

In

use.

the creativity and productiv¬
our human resources, and

age

the

the

of

aware

nation's future is in unprecedented

urgent part of this task is to

our

reflect

ity of

If

well

supply all the top people for
government. No more than any
other segment of our society does

the

institutions

apply our democratic prin¬
ciples, respond to change, encour¬

Russian economic threat. But they
cannot do all that should be done

World War II.

Public Service Is Crucial

ness

Government

vitality of our
the ways in

goals there will remain

—

not

Can

these

"More often than not the most tics
of excess buying where it
default.
qualified, most promising people suits her political purposes, of sub¬
There is no economic Fortress
refused to take a government
job— sidization, and of dumping.
In
America, any more than there is
and when they did they left it so these situations, where our
pro¬
an
impregnable military Fortress
soon that
they hardly gave value ducers cannot possibly compete,

few of paramount importance and

pressing urgency.

It will be reflected in

and

inherent virtues of

Obviously, just as the Soviet
threat cannot be met by
govern¬
ment alone, so also it cannot be
handled by private interests alone.

going to get
contry, the
talent, the widest
put them to work
am

in

tion;

also

national
What

societies
wark

To

T

described

tors.

challenge
an
especial

skills.

industrial society.

merated

Managerial

was

ment

to the American people was this:

The four areas of management
responsibility which I have enu¬

The

has

"When General Eisenhower

most

management

a

Areas

from

you

campaigning for the Presidency in
1952, one of the most appealing
and persistent promises he made

national objectives

requirements.

Fourth,

and the barriers to human

level.

shock¬

are

to

include

now

progress.

both

quote

education.

the dynamism and
social institutions,

and
daring
use
of
capital. We must export
not only risk capital but
manage¬

social

"What are we doing to increase
productivity?
/
v
tion of our ideals and principles,
"Are we making the maximum
preserves
and extends freedom use
of our skills, talents and man¬
and
independence
everywhere,
power
in our own and in our
and eliminates eventually the risk
nation's best

of

findings

me

a

con¬

Mr. Drummond:

broadened corporate activities

its

ability, by force when
necessary, to induce the Russian
people and its satellites to work

and

The

Let

on

intelligent

private

What is more, Mr. Drummond prepared to protect and
support
responsibility by industry and
reports, the situation is getting private industry as it moves into
business to employees, to the com¬
worse, not better, and it has been foreign markets.
munity, to charitable purposes and
There are people in government
getting worse steadily since the
to

sense

business

fail

we

connection.

ent, has recently reported
study which does make this

suc¬

within

do

guished

ing.

the

of

sometimes

obvious

Drummond, the distin¬
Washington correspond¬

nection.

requirements

industry must
respond increasingly to a "non¬
profit motive." The past several

Kremlin

make the

Roscoe

reflect

by now—with
an elaborate system of incentives
—enjoys a built-in vested interest
in order and stability. The occa¬
sional changes of face that we see
the

to

prosperity but that, in
addition, his management policies
the

But

processes.

busi¬

profitably,

contribute

the

not

run

29

SACRAMENTO, Calif. — Eliza¬
beth
T.
Wiltse
is
now
with
Richard
A.
Harrison Inc., 2200
Ri-vtAAnfh

StrPPt.

The Commercial and Financial Chronicle

.'.'.Thursday, September 11,1958

(1030)

30

Total Net Assets of

Scudder of Can. to
Become

This
late

fall

will

Exceed 860 Million

distant

Canada
become an open-end fund.
news will break during the

future,

By ROBERT R. RICH

Scudder Fund of

Lehman
underwriter
financing.

or

winter.

Broad Street

Investing to Purchase
Custodian Fund

Assets of Jefferson
The United States

With Reynolds &
(Special to Tut Financial

Co.

CHICAGO, 111.—Leo E. Drew
now
with Reynolds & Co.,
South La Salle

District Court for the Southern District of
a plan of reorganization for Jefferson

approved

has

York

New

Chronicle)

*

.

which, if adopted by shareholders of Jeffer¬
son
Custodian at a special meeting scheduled for Sept. 30, will
result in the purchase of the assets of the fund by Broad Street
Investing Corporation.
The couri-approved plan is a sequel to action taken by the
Securities and Exchange Commission last March
14, when it
asked the court for an injunction against certain directors and
officers of the fund and requested appointment of a receiver to
hold the fund's assets for the purpose of reorganization or liquida¬
Custodian Fund, Inc.,

is
39

Street.

A MUTUAL

INVESTMENT

the

of

of
It

currently

of

this

on

a

TO
DEALER OR

rata

RESEARCH CORPORATION

then dissolve.

Eilablishtd 1930

assurances

120 Broadway,

Now York 5, R

involved

Tj

like

period

!

month

To

Upward

Fund sales for the
August 1958, the last

of

introduction

before

companion

Wellington

of the

Holdings in

Kail Securities
•'

1

.

>$¥

'

New

,4 "-A*. "

••

7

*

'

stocks

common

V*

•

'

added

to

Puritan

portfolio of
during the three

Fund

months

the

ended

Equity

July 31, 1958, were Carrier; Glid-

A mutual fund investing in a

I
|
|

Fund, again established a new alltime sales record, according to A.
J.

|

$10 million, the highest for any
August period in the 30 year his¬

Wilkins, Vice-President.

amounted to over

August sales

The
comparable August figures are as
tory of the Wellington Fund.

I

Incorporated
Income Fund

^

A mutual fund investing in a

I

list

I

ern

__

$10,003,000
8,700,986

$1,296,014

Increase

each

fund is available from
investment dealer.

ord sales

since
able

totals during the

Boston, Mass.

Louisville & Nashville RR.;
Rubber; South¬
Pacific; Spiegel; United Art¬

RR.; General Cable; Great North¬
ern

St.

ern

rec¬

period

Jan. 1, 1958.
The compar¬
eight-months figures are las

follows:

Eight months 1958 $75,760,841

Eight months 1957

63,718,673

Increase

12,042,168

The Parker Corporation
200 Berkeley Street

Rwy.; Hecht; McGregor-Don-

Louis

The total assets of the
on

RR.;

Norfolk

was

>

during

continued

management
have been

present

Aug. 29, 1958, were

&

Newton I.

paid out to
the
third

they

as

'

-

*

Portfolio

Changes

submarines,

*

changes in
portfolio of BulFund,
Ltd. in the
seven
months ended July 31, 1958:
investment

.

New additions of common

stock

Ry., and Truax-Traer Coal Co.

Public Service Co. of New Hamp¬

made in Phillips

Petroleum;

St.

Louis

Public

Service,

land

"A", and Sinclair Oil.
made

Record

&

Public

Colgate-Palmolive; Simmons, and

of

Wilson & Co.

Indiana

Cerro

securities
for

and

their

diversified,

'"vesting

selected
INCOME.

current INCOME

APPRECIATION
possibilities.

Prospectus on

ras

Possible,

for

high

■

-§

*

the Oct. 31, 1957
year-end. Shareholders, he
said, increased from 11,615 to 13*-

Pasco;
&

Atlas

332.

Inter¬

Laboratories

reduced

were

New

and

in

Oil

Al¬

Jones

/.'■%

..

nois

&

changes
Colonial Fund:

portfolio

major

lowing

Chemical:

(G. D.) Searle & Co.
were

.

During the past quarter, the fol¬
made by The

commitments were Ashland

&

Refining Co.; Central Illi¬
& Gas Co.;. Fibrd-

Electric

board Paper Products Corp.;

North

Inc.;

High

Aviation,

American

Laughlin Steel.

I

involved.

Fund

on

Request
Common

A

Investment

Stock Investment Fund
objectives

of

this

Fund

possible
long-term capital and
income
growth for its shareholders.

are

CALVIN BULLOCK
Established 1894

ONE WALL STREET,

NEW YORK 5

Nationally distributed through investment dealers hy

\

'

Prospectus

upon

request

Dei aware Distributors, inc
300 Broadway,

Camden 3, N. J.,

Lokd, Abbett & Co.

Nam*.
New York

Address-




assets

I'

commensurate f

Wl,h the
risk

Prospectus

as

net

fiscal

holdings

the

Cyanamid;
de

Minerals

Positions
lied

total

all-time high of $53,-

31, 1958, an increase of 33% over

Kendall; Kennecott Copper; 3 M's,
and

an

the $39,973,000 at
from

American

national

at

499,000 at the quarter ended July

Ohio; Texas Co., and West Penn

were

Fund's

the

were

Service; Standard Oil Co.;

Powder;

Colonial Fund's current

Northern

Gas;

Northern

Gas;

Eliminated

Investing in

the

In

that
Illinois

Viscose;

High Assets
Fund;

For Colonial

N. Y. Quarterly Report to shareholders,
President
James
H.
Orr stated

Associates;

Group

Electric

State

Decreases

in American

de¬

the

power.

Trust; Diamond Alkali; Em¬

ployers

class

as

Richfield Oil; Spiegel, and

shire;

-(H. I.) Thompson Fiber Glass Co.
ings were C.I.T. Financial; Cruci¬ Increases in
holdings were made
ble Steel; Curtiss-Wright; Hawai¬ in
Aetna
Casualty
&
Surety;
ian Pineapple; Niagara Mohawk American Chain & Cable; Cleve¬
Power; Pullman; St. Joseph Lead;

nuclear

and

most significant
development in the atomic field
to
date.
He
predicted equally
impressive growth will follow in
•nuclear propulsion of tankers and
merchant
ships, in the use
of
radioactive isotopes in industry,
and in the generation of electric
stroyer,

The following shows

the

nuclear... carrier,

a

cruiser

nuclear

Bv Bullock Ltd.

West¬

Eliminated from common hold¬

Steers/ Jr., President,

Atomic Development Mutual

Electric.

|

ih

remain

be

At $55 Million

were

Welling¬

$750,188,326.

incorporated mutual fund pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to

will

Assets Peak

the Aug 31, 1957
16,000 (and 36,000 ac¬

Rwy.; South Penn Oil; South¬

were

ton Fund

—A U. S.

the

,

ists; and White Motor. Increases
were made in Atlantic Coast Line

ern

J
A prospectus on

your

__

...

This continues the trend of

I.

ical;

iger, class "A"; N. Y., Chicago &

August 1958
August 1957

of securities for current

of both
and

will

and

the

under

;lock

follows:

income.

of

Fund, Inc.,, announced thatv the
quarter amounted to $484,194 as
assets had reached
^against $406,369 during the second fund's j net
quarter, and $393,100 during the $55,117,000^— a- new high since
inception pf the fund less than
third 1957 quarter. live years ago.
'
"*t * '
Capital gains distributions dur¬
Mr. Steers referred to the
ing the same periods totalled $1.~
growth of the Atomic Navy from
381,603, $1,347,704 and $1,211,521
one submarine
(The Nautilus) in
respectively.
1955
to
a
presently authorized
fleet of 36 vessels, including 33

Mansfield Tire &

'

Baltimore

number of Man¬

Income dividends

|

capital and income.

its

-

Atomic Fund

shareholders

den; Hammond Organ; Interchem-

|

to

one

of Canton

operations

its "subsidiaries

year's

last

counts');

f

possible long-term growth of

of

end

the

,

ESTABLISHED 1925

list of securities selected for

-

that

Pennroad

and

active

high. The May 31 total amounted
to
22,000 (and 47,000 individual

|

|
|

at

The estimated

Puritan Fund Adds

Wellington

Investors

I

is

accounts), and

Continue
month

statements

reports

It is the present intent
Carton

substantially
aged Funds shareholders came to ;in -the past.22,000 at the end of- last month,
representing 51,000 separate sharebolder
accounts, another record

Treasury Department ruling that the transactions
tax-free both to Jefferson Custodian and its share¬

Share Sales

|

in

Canton

on

million

basis in exchange for its own shares and would
The plan is conditional to the receipt of satisfactory

Wellington Fund

j Incorporat ed

made

has

effect

Pennroad.

20.9

to

rose

third quarter.

total

INFORMATION

out¬

a year ago.

Aug. 29 from 19.7 mil¬
lion three-months earlier and 16.2

holders.

MUTUAL FUND

this

stockholders.

outstanding

Shares

by

are

the

volume
(less
the last of such investments which
load charges) during the quarter
Pennroad,' now
holds
and
the
just ended amounted to $4.3 mil¬
•initial step looking to the liquida¬
lion compared with $3.7 million
tion or the affairs -of Canton is
during the second quarter of fiscal
being taken at the request of
1958 and $3.6 million during the

transaction,

pro

to

Funds

Managed

Jefferson Custodian would distribute the
shares of Broad Street Investing received to its own shareholders

NATIONAL SECURITIES &

and

affairs

total'num¬

shareholders.

of

ber

million

YOUR INVESTMENT

holder of

than

shares outstanding and

approximate $120 million.

FOLDER AND PROSPECTUS

Pennroad Corp.,

than two-thirds of

standing stock of Canton, has felt
for several years that it
should
Aug. 31, 1957 total of $51.7 million. dispose
of
all
its
investments
involve
its
personnel
in
At the same time, he disclosed which
•the management of a company's
new highs in quarterly sales, total

plan ot reorganization to be submitted to shareholders
provides for the sale of the assets of Jefferson Custodian to Broad
Street Investing in exchange for shares of Broad Street Investing
valued at asset value free of any sales charge. Upon completion

WRITE FOR

The
mole

the May 31 total of
$54 million and 17.5% above the

The

FREE INFORMATION

Slayton reported assets of liquidated.

Mr.

higher

interim, the affairs of the fund have been under the direction
temporary receiver^and the asset value
its shares has risen from $4.40 to $4.92." '
Broad Street Investing is the largest mutual fund in the group
investment companies sponsored by J. & W. Seligman & Co.
is a diversified fund now in its 29th year of operation, and

assets

tbeklethii

For Pennroad

11 Man¬

*

of Thomas J. Ahearn, Jr.,

Tkaflcmd

net

$60.7 million at market close on
that date. This figure was 12.3%

tion, as subsequently directed by the court. At the time, the SEC
advised shareholders of Jefferson Custodian that its action "should
not lie construed as a reflection on the value of their shares."
In

FUND

assets of the

A special meeting of the stock¬
Funds,
Inc. share classes' holders of Canton Company of
has
been
called
for
passed the $60 million mark for Baltimore
the first time during the quarter Sept. 15, 1958 to consider and act
ended Aug. 29, Hilton H. Slayton,
upon
a
recommendation of the
President of the nationally dis¬ board of directors of the company
tributed
fund
group
announced. that its affairs and business be

Total

aged

Brothers will be the
of any new

Company
laged Fu nds Inc. To Liquidate

Ma i

Mutual Funds

Open-End

Sometime in the not too

Canton

—

Chicago

—

Atlanta

—

Los Angeles

-

Volume

188

Number 5776

.

.

The Commercial and Financial Chronicle

.

(1031)
Auth.

European
Coal
&
Steel
Community,: 5s '78;. Mich. Cons.
Gas, 6y4s '82; National Fuel Gas,
5V2s '82; Paeific Tel. & Tel.,~-5%s
'87; Pittston Co., sub. notes 6V4S
'76; Public Service Co. of N. H.,
5%s '87, and Utah Power & Light,
Additions

to

existing holdings
Power Co.; Kern

Interstate

County Land Co.; Laclede Gas
Co.; Sinclair Oil Corp.; American
Tel.

& Tel., 5s '83; Mich. Wise.
Pipe Lines, 6y4S *77; and Sperry
Rand, s. f. deb. 5y2S *82, ex. war.
-

Decreases

son's

Hud¬

in

made

were

Ltd.;
Co.;
International Paper Co.; Ohio Edi¬
son
Co., and Union Oil Co. of
Bay

Oil

Inspiration

Gas

and

Consol.

Co.

Copper

California.

Eliminated

from

Creole

were

from

15

page

this

the

portfolio

Petroleum

Prentice-Hall. Inc., 5%

The Crisis in
in

cause

dollars

to

shelled

one-and-a-half
make

out

the

waterways navi¬

coming
it

sets

One

is:

LONG

Bald

Coast

affiliated

become

M. S. Walker &

Street,

Calif.—Earl L.

BEACH,

has

with

Co., 125 East First

members of the Pacific
Stock
Exchange. He was

formerly with Kerr

and

operation.

Neither shippers nor carriers pay
one cent in tolls and that, he said,
is

a

And

three

the

by

Presidents

the

way,

the

of

last

United

The second

carriers, thus far to

avail.

no

the

recover

through

traffic

passenger

burdened

by

10%

a

*

(Special to The Financial Chronicle)

LOS

s.

ANGELES, Calif.—James E.

Castaldi
have

and

William

become

H.

Haskell

connected

with

Paine, Webber, Jackson & Curtis,
626
South
Spring
Street.
Mr.
Haskell was formerly with Shearson, Hammill & Co. and Walston
& Co.

Well,

mentioned

still

excise

tax

Presidents

the Hoover

and

has

business

our

been

pas¬

lost

to

the

than 85% of all

more

been

The

lines.

intercity

remaining share has

into

cut

sharply by the air¬

Most of you are aware,

I am

that the airlines receive sub¬

sure,

stantial government benefits.

larger

and-out

cash

for

ceived

them

of

so

many

receive

subsidy

The

longer get the outsubsidy they re¬

ones no

through

but all

years,

huge

a

the

indirect

of air¬
ports and navigational guides fur¬
nished by the government.
use

giant

airport for

new

Washington to be built at Chantilly, Va. The original appropria¬
tion) is for $12^ million, and

EATON & HOWARD

BALANCED FOND
17

CENTS A SHARE

come

up

are

40 million

dollars needed to

plete the work.

Washington,

m

th

CONSECUTIVE

QUARTERLY DIVIDEND

EATON & HOWAHO

STOCK FUND
13

CENTS A

SHARE

Dividends payable Sept. 25 to shareholders
of record at 4:30 P.M.,
Sept. 10, 1958.
24 Federal

Street, Boston, Mass.




the

But

other

hand,

funds.

It

and income taxes.
Chantilly Airport,

property

pays

the

railroad

new

like the National Airport before it
and
like airports all across the
land, is built with the tax dollar.
Sometimes they say we railroad
Presidents
bellyache too much.
Boy, we've got a bellyache to bel¬
lyache about!
Well, you may wonder, what
can be done?
We certainly are not
going to drive the trucks off the
highways, stop planes from flying
through the sky, force barges to
drop anchor.
Can the railroads

lick the combination of Uncle

ever

Sam and

competitors?
great hopes we

our

have

I

can.

firmly believe that the good
of

American

the

public

I

socialized

of
the

the

of

rest

transportation
world

over

(except for

large railroad in Canada). I
put particular hope in the trans¬
portation study committee estab¬
one

lished by the Senate under S 303*
The

Senate, in holding the

tensive
the

al

learned

year,

about

ex¬

hearings it did earlier in
railroad

the

recognizes there

great

deal

problem.

It

other matters

are

the

public facilities they
economic

true

roads will
I

have

worth

I

to leave

not want

do

lean

government if they are to
succeed. Quite the contrary. Noth¬
on

will destroy the railroads
more
surely than reliance upon
government help. All the railroads
need is a chance to fight with the
same weight gloves, with a referee
that breaks them when they clinch
and who keeps an honest score
ing

card.

in

w->+v>

lished

the

in

Accordingly, it estab¬

committee

a

to

make

a

strength and capacity. You all

have heard many

times the story
what they did in World War II,

of

when

their

even

friends

only

today,
notice

sion

can

railroad

a

short
armored divi¬

carry an

the

across

instantly
are
ready to perform any task given
them. No other form of transport
handles people and products so
economically when all costs are
other

No

vital to

national defense.

our

Backbone

The

railroads

from

hell

to

new

railroad

have

about

problem.

been

studied

breakfast.

toward
was

rail lines.
I think it would be

took

we

good idea

a

look at what is hap¬

a

pening

in Russia.
We all have
awakened to the fact that Russian

industry
rate

is

growing

at

rapid

a

and

is fast catching up with
What is not so well known

is geared to its railroads.

At the end of World War

II, the
transportation plant was
badly damaged.
The
Russians
could have built a giant highway
system

They

Hitler did in Germany.
could have done so with
as

relative

ease:

the

far

more

concrete

steel,

country is flat,

and
at

smashed
200-mile

of

thousands

With

marine
enemy

from

area

army,

planes,
lines in

we

the

was

lines

time

after

Time

General

Van

communication

of

were

Aerial re¬
connaissance
proved the vast
destruction done by our forces.
The
reports flowed in — "The
marshalling yards at Seoul have
been
blasted
out of
existence,"
out for good.

knocked

Coast

East

line

is

at

out

for

Sinanju

car,

60

to

The

two

-

axle

throughout

common

90-ton

capacity, large cars,
by American standards. New
lines are being laid. Diesels and
electric
engines
are
replacing
steam.
line

More than

have

last

two

wide
total
new

been

in

the

Train radio is in
than

More

use.

1,400 miles of

electrified

years.

half

the

mileage has been relaid with
rail during the last decade,
of it in 151-pound section,
that is big rail.

some

Freight

operating their rail¬
impressive
fashion.
moves
in
density
un¬

matched

even

are

in

main

our

on

lines
listen

And

States.

railroads

in

1957

ton-miles

total

million) than American
railroads
(626,000
million
tonmiles). This record was made de¬
(680,000

the

spite

fact

has

States

the

that

times

three

United
much

as

rail mileage as Russia.
One

is

for

reason

this

perform¬

is that Russia does not have

good highway system. Another
that 85% of all her traffic is

carried by
The big

rail,

as

against the less

thing is that Russians are

convinced

the

that

most

eco¬

nomical form of transportation is

basing their bid
greatness on their

rail, and they

are

industrial

for

rail

program.

roads

are

True,

their

not yet up to ours

ficiency (they

rail¬
in ef¬

great amount
labor), but nevertheless
catching up rapidly.

hand

use a

within a they are
locomotives wpre
I think there is a lesson to be
operating through the very learned here. American railroads

skip-

shelled with heavv
cannonaded with
ground artillery, we strafed with
bombed,

naval

we

guns,

have been

they
and

we

can

modernizing as fast
get the funds to do

as
so.

Since World War II, well over a
billion dollars a year has been

spent in modernizing the Ameri¬
can

railroad

plant.

Even

though

lowest

return

they all

fill

a

come

Those

rockets and machine guns, we or¬

railroads

long bookshelf and

ganized sabotage and guerrilla at¬
tacks. But we never stopped the
Red
railroads
from
delivering

on

ammunition and

studies

freight

siderable

speed
signaling, expanding our
new piggy-back service, perform¬
ing more and more of our work

down to

the

same

general conclusions that railroads
are

over-regulated

and

railroads

suffer because of government sub¬

sidies But I place particular faith

supplies; in con¬
auantity, too."

In s' ort,
and

his

concluded Van Fl°et he
staff

were

witnessing,

handled

have

the

investment of any of the major
industries in our country, we are

building

maintain

ers

by

as

trucks

many em¬

electronically
yards,

our

own

private

right-of-way, whereas the truck¬
ers use a public right-of-way. We
almost half the nation's to¬

intercity tonnage for a tenth of
the fuel used by other modes of
transport in handling their half.
Nothing yet devised by the mind
of

is

man

wheel

efficient

as

rolling

the steel

as

steel rail at &

on a

minimum of friction.

The

simple

fact is

can

handle

that

railroads

less

at

more

cost.

As the editor of "Trains Maga¬

so

printed

in

Mil¬

"The barge boys know that, and
do the truckers.
That is pre¬

cisely

why they scream

heaven

to high
Washington

whenever

scratches

even

the

surface

of

truths.

these

They
inherently
can't compete and they know it!"
Nine years ago I had occasion
address

controlled
installing high¬

this

School

of

Bank¬

"We must have railroads in and

for

America

—

solvent

railroads,

strong railroads, manned by alert
and respected workmen, directed
by progressive management, mod¬
ernized to fit the needs of Ameri¬

enterprise, operating under
policies of government, and
commanding
the
confidence of
the American people."
Yes, there is a crisis in the rail¬
road industry, as the title of my
can

sound

talk states.

But that crisis

can

be

met successfully by that same for-*

mula
some

I gave in 1949.
We have
big problems ahead of us—-

the

problem of government sub¬
sidy I mentioned, and the prob¬
lem of devising better contracts
with

unions to eliminate out¬

our

moded

of

lem

working rules, the prob¬
attracting sufficient risk

capital to feed

our

modernization

program, and many others.
Two of the subjects which

be

studied

in

addition

to

will
the Senate group,

by

I lave

those

men¬

tioned, are ownership of one form
of transportation by another, and
Federal policy on consoli 'ations
and mergers. On the first point I
strongly feel that railroads should
have the right to offer a complete
transportation service. The public
will

benefit

permitted

carried in this country.- diversify

than 50%

Yet, writes Van Fleet,

dive-bombed

ton-miles

ing here at the University, and I
opened with these words:

few days, enemy

directly:

economics:
than double

to

even

of

destroyed.

hard

than

Europe, is headed for the scrap
heap in Russia. In its place is the
four-axle, roller-bearing car of

ance

assured that the enemy's

the

of

move more

good

Instead, the rulers of Rus¬
upon an ambitious

program.

freight

a

Fleet

facts

with less than half

embarked

rail

Manchuria to

the battle lines in Korea.

these

Railroads

available

,

navy

outmoded form of transport
is going to fade before the
onslaught of trucks, barges and
airplanes? If there are, listen to
an

that

produces

Russia

and

trucks.

more

over

wondering if there are still
people who harbor a linger¬
ing doubt about the railroads, who
may still think the railroads are
am

zine," which is
waukee, puts it:

1

Russian

carried

skies

or

some

Russia's Ambitious Program V

Russian

the

suicidal trend

Railroads Not Outmoded
I

is that Russia's industrial
progress

the United

controlled

this

stop

suffer the consequences.

tal

this:

we

must

move

War, Russians witnessed
inability to knock out Red

in

through 1953. You will recall that

national

blindness that handicaps the effi¬

our

to

Fleet, commanding general of our
fighting forces in Korea from 1951

a

by

progress

we

efforts

Korean

written by

General James A. Van

ex¬

the

In World War II it

thrilling fashion than in a report

Dozen"

nothing

rs

the

more

two.

or

rail

They

in

told

But

our

ployees.
And mind you, those
less-than-half-as-many railroad¬

of Defense

defense

of

devices.

lines
through Iran,
by American and British
railroaders, that carried the mil¬
itary supplies that helped stop the
Germans
at
Stalingrad.
In the

the

roads

bone

day

influenced

manned

and

else is the
story of the railroads as the back¬

"We
of

so

nowhere

Probably

To ouote him

studv

is

form

considered.

alwavs

Now there

States.

United

locations that had been

a

on

almost

Railroads

tions in 18 months.
a

were

flabbergasted at the flood of men
and materials they carried. Even

study and report its recommenda¬

"Dime

built-

enormous

have

railroads.

sia

Railroads have

a

Russians in their attitude

the impression that railroads must

good," "The bridges
are destroyed."

dealt

periences

with

you

completely cleared and the

Undoubtedly their wartime

ours.

deal about

government and the railroads, but

need

Act of 1958.

rail¬

beacon.

a

good

a

the

use,

the

of

glow like
said

"The

beyond those
Transportation

an

that the dam¬

aware

line restored within

if

relating to Federal regulation that

overhauling

find

stories

photo¬
but you

seen

graphs of piled-up cars,

with exactly

up

one.

Korea.

allow the railroads to go the way

rec¬

our
competitors begin to
their fair share of the cost of

sense

will not

to

out

come

com¬

Union Station at

on

with

built

was

ex¬

that Congress will
with the additional 30 to

pectations

States

Once
pay

Just last month the government
a

same

three

solution, and I
any impartial

a

that

setting
will

answer

already

last

Commission

such

confident

student

have
the

the' United

of

am

senger

maintain

and

I

that

ommended

discourage travel. I'll say this—
it has been a mighty effective tax
—it
still
is
discouraging travel
every
day.
Passenger traffic is
carried by the railroads at a tre¬
mendous annual deficit, which is
particularly burdensome to the

announced

|th consecutive"
'quarterly dividend

user

are

peace¬

You all have read

not be

latest

Railroaders deal

of train accidents and

to

highways, inland waterways and

is

Eastern railroads. Most of

seek

government

charges the
government now dis¬

airports?

Passenger Traffic Burden
Our

they seek is:

answer

Should

under

daily with the ravages of
fire, flood, landslide, earthquake
and the damage caused
by acci¬
dents.

the

toward

almost

age is

make their study.

railroads

with

have been hobbled in

cient in favor of the inefficient. We

characteristics

same

of

they

even

conditions.

time conditions.

may

States and the Hoover Commission *
funds the
all have urged user fees for water burses to
construct

traffic.

!

questions.

true

portation? I think they have the
answer
to that question
before

and unadulterated sub¬

pure

sidy.

ries

Two With Paine, Webber

the

uncover

annually is being pumped in for petition that exists today in trans¬
maintenance

the private automobile, which car¬

& Bell.

to

war

Those

study be¬

tion is required in the public in¬
terest in view of the intense com¬

to

M. S. Walker Adds

out

under

Just how much regula¬

established early in World War II

(Special to The Financial Chronicle)

Senate

to several basic

answers

billion

gable and that another $40 million

Corp.;

Electric, 5s '87.

than

He said Ameri¬

have

taxpayers

can

more

rimack-Essex
and Tampa

to

our
own
military
another
demonstra¬
tion of the
capacity, the durability
and
the flexibility of railroads

Railroading

gressional hearing on federal aid

pfd.; Mer¬

Electric, 5%s '87;
Puget Sound Pr. & Lt., 6^s '87;

time

frustration,

to water carriers.

'87.

were

Continued

31

if

the

the

railroads

same

are

freedom

to

is enjoyed by other
On the second point—

as

industry.

consolidation—it likewise will be

beneficial to all if railroads have

greater freedom to combine.

The

is not new at all.
The
Illinois Central, for example, is
composed
of
more
than
200

process

smaller roads. Several ma^or

solidation

studies

con¬

going on
right now, and Congress and the
Commission
could
help a great
are

deal by proper laws
easier consolidation.
the

Whatever

permitting

problems,

if

we

keep alert and keep our thinking
progressive,

none

will

be

insur¬

mountable.
I

am

had

hopeful that what I have

will be
understanding
the current railroad crisis.
I also
to

helpful

here

say

to

you

today

in

hope I have left you with the con¬
that our railroads basi¬

viction

cally
that

are
we

a

sound

will

successfully.

industry

resolve

our

and
crisis

The Commercial

32

an^Financial Chronicle

...

Thursday, September 11,1958

(1032)

ADDITIONS

★ INDICATES
SINCE

Securities Now in
corporate purposes.
Underwriter—None.
Bankers Management Corp.
(9/26)

expansion and other

Y.

★ Aberdeen Estate Programs, Inc., N.
Sept. 8 filed $20,000,000 of three series
Proceeds—For investment.

of programs.

expire Oct. 15, 1958); and 2,500
to employees under the stock

shares are to be offered
purchase plan. Price—

capital. Address

per share.
Proceeds—For working
•—Route 128. Reading. Mass. Underwriter—None.

$20

filed 400,000 shares of common stock (par 25
Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. Office-

velopment of an oil and gas property. Office—1305 Con¬
Life Bldg., Fort Worth, Texas.
Underwriter—

tinental

Fort Worth, Texas.
Oil Co.

American-Caribbean

be

shares of common stock (par 200).
supplied by amendment. Proceeds — To

American Mutual Investment Co.,

wells. Un¬

per

shares of capital stock.

Company may

aecond trust notes and construction loans.

purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive. Silver Spring, Md. is President
American-South African Investment Co., Ltd.

develop shopping centers and build

Bankers Southern, Inc.

or

'

18)

.

stock (par £1—
South African). Price — Proposed maximum offering
price is S28 per share. Business—The trust, incorporated
Aug. 27 filed 1,000.000 shares of common

laws of the Union

under the

of South Africa, has been

medium for investment in the
common
shares of companies engaged in business in
South Africa, with particular emphasis on those engaged
in mining gold. The trust may also invest to a certain
extent in gold bullion. Underwriter—Dillon, Read & Co.

organized to provide

a

Inc., New York.
Ampal-American Israel Corp., New York
8 filed $3,289,100 of 10-year discount convertible
principal amount,

Aug.

payable in cash or in State of Israel Independence Issue
or
Development Issue bonds. Proceeds—For develop¬
ment and expansion of agricultural, industrial and com¬
mercial enterprises in Israel. Underwriter—None.
Anderson Electric

1957

23,

Corp.

1,003,794 shares of class A stock (par $1)
and 15u,569 shares of class B stock (par 60 cents), the
class A shares to be issued in exchange for oil and/or

stock

14,700

shares

common

(par $1).

Price

—

—

Anita Cobre U. S. A.,

Inc., Phoenix, Ariz.

1957,

30,

filed

Price—At par

Selected Securities, Inc.,

Phoenix, Ariz.

Arden Farms Co., Los Angeles, Calif.
June 4 filed 172,162 shares of common stock

(par $1)
being offered for subscription by holders of outstand¬
ing common stock at the rate of one new share for each
five shares held on July 7, 1958; rights to expire about
Sept. 22, 1958. Price—$14 per share. Proceeds—To pay
off an equivalent portion of the company's current bank
loans which, at May 15, 1958, amounted to $8,450,000.
Underwriter—None. Statement effective July 7.
Arizona

Public

Finance

Co., Phoenix, Ariz.

Sept. 2 filed 902,808 shares of common stock, which are
Issuable as 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¬

lier registration statement. Under an underwriting agree¬
between the company and Public Development

ment

Corp., the underwriter, the latter will be entitled to re¬
ceive 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

Associated Grocers,

Inc., Seattle, Wash.
(par
$59) and $1,500,000 of 5% subordinated registered deben¬
ture notes, second series, and $606,000 of 5% coupon
June 30 filed 4,788 shares of common capital stock

debentures.

association.

To

Proceeds

be

—

offered

For

members

to

working

capital.

of

the

Under¬

writer—None

limited

a

partnership, which notes were assumed by

the

Dec. 31, 1957. The notes are convertible al
time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 per
share. Underwriter—None.
Campbell Chibougamau Mines Ltd.
shares of capital stock

March 10 filed 606,667

(par $1;

506,667 were issued in connection with the ac¬
quisition of all., the assets of Yorcan Exploration Ltd
(latter proposes to distribute said shares ratably to it*
stockholders of record Dec. 16, 1957).
The remaining
of which

100,000 shares are to be sold for the account of the Estate
of A. M. Collings Henderson on the American and To¬
ronto Stock Exchanges.
Price—At market. Proceeds—

Office—Toronto, Canada.

selling stockholders.

To

Un¬

derwriter—N one.

★ Capital Finance Co.,

Underwriter—None.

nix, Ariz.

Carrtone

filed 600,000 shares of common stock (par 10
Price—$5 per share. Proceeds—For expansion,
working capital and other corporate purposes. Under¬
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¬

best-efforts basis.
Building, Seattle, Wash.

dent, respectively, on a

Office—4112

Association, Inc.
stock (par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell such shares at the market. Price—60
cents per share. Proceeds — For construction of racing
plant and acquisition of equipment.
Office—Charles-

★ Charlestown Racing

Sept. 9 filed 4,000;000 shares of common

town, W. Va.

Cinemark

Underwriter—None.
II

To

be

Fidelity Life Insurance Co.

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
foroptions. Price—To public, $6 per share. Proceeds—For
FRASER

Digitized


Consumers Power Co.

(9/23)

29 filed $35,000,000 of first mortgage bonds due
1988. Proceeds—To repay short-term bank loans and for

able bidders: Halsey,
&

notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office — 937 Acequia Madre Rd.,
Santa Fe, N. M. Underwriter—Watson & Co., Santa Fe.
N. M.

(jointly).

★ Citizens Life Insurance Co.

of New York

(9/25)

150,000 shares of common stock (par $2).
be supplied by amendment.
Proceeds—For

Sept. 4 filed

general corporate purposes. Control—Over 98% of stock
by Citizens Casualty Co. of New York. Under¬
writer—Lee Higginson Corp., New York.

owned

^

Aug. 27 (letter of notification) an
of shares of common stock (par

undetermined number
$1)

to

be

offered to

(with an oversubscrip¬
tion privilege). Price—At the market (estimated at about
$3.8712 per share). Proceeds—For working capital. Office
408 Junipero St.. San Gabriel, Calif. Underwriter—None.
a

pro

rata basis

Clute Corp.

Aug. 21 (letter of notification) 300,000 shares of common
stock (par one cent). Price—$1 per share. Proceeds—To
of

additional costs of construction; and for retirement
obligations and working capital. Office — c/o John

Harlan Lowell, 2200 Kenton, Aurora,

Colo. Underwriter

—Lowell, Murphy & Co., Inc., Denver, Colo.
Columbia & Rensselaer Telephone Corp.

(letter of notification) 2,800 shares of common
(no par) to be offered for subscription by stock¬

holders at the rate of one
held.

Price—$60

new

ner

telephone

Chatham, N. Yr.

share for each 2.572 shares

Proceeds—For construction
Office—19 Railroad Avenue,

Underwriter—None.

Commerce Oil
Dec.

new

share.

plant.

Commonwealth Services, Inc., 300

New York 22, N. Y.

Consumers Power Co.

.

(9/24)

Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬

short-term

pay

bank loans and for expansion and im¬

provement of service facilities.
Stanley & Co., New York.

Underwriter

—

Morgan

4

Cooperative Grange League Federation
Exchange, Inc.
June 20 filed $400,000 of 4% subordinated debentures,

shares of 4% cumulative preferred stock (par
and 200,000 shares of common stock (par $5).
Proceeds—To be added to working cap¬
Office—Ithaca, N. Y. Underwriter—None.

10,000
$100)

Price—At par.

Counselors

Research

Fund,

Inc.,

St.

Louis, Mo«

shares of capital stock, (par one
cent).
Price—At market.
Proceeds—For investment.
Underwriter — Counselors
Research Sales Corp., St.
Feb.

filed

5

100,000

Robert H. Green is President.

Havana, Cuba

767,838 units of voting trust certificates,
representing the ownership of one share
of common stock
(par one-half cent) in each of 24
Cuban companies.
Price — To be supplied by amend¬
ment.
Proceeds—For capital expenditures, exploration
costs and other corporate purposes. Underwriter—None.
March 31 filed

each certificate

Daybreak Uranium, Inc., Opportunity, Wash.

1,156,774 shares of common stock (par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774 shares for selling stock¬
holders.
Price—At market.
Proceeds—For exploration
Jan. 29 filed

and drilling costs and

other corporate purposes. Under¬
Wash.

writer—Herrin Co., Seattle,
Derson Mines Ltd.
June 5 filed 350,000

shares of common stock.

Refining Corp.

16,1957 filed $25,000,000 of first mortgage bonds due

Sept. 1, 1968, $20,000,00 of subordinated debentures dut
Oct. 1, 1968 and 3,000,000 shares of common stock to b€

Price—$1

share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.

per

Inc.

(letter of notification) 30,000 shares of class A
common stock (par $5). Price—$6.60 per share. Proceeds
—For general corporate purposes.
Office — 2127 East
Aug. 11

Lake

Underwriter—Craig-Hal-

St., Minneapolis, Minn.

Minneapolis.

Electronic Supply Co., Los

Angeles, Calif.

(letter of notification) not in excess of $50,000
aggregate value of common stock (par 50 cents) to be
sold in State of California only. Price—At market (es¬
Aug. 8

timated at

about $12.25 per share).

Proceeds—To sell¬

ing stockholders. Underwriter—Bateman,
Los Angeles, Calif.

Clary Corp.

on

Shields & Co. (jointly);

Harriman Ripley & Co. Inc.

Bids—To be received up to 11 a.m. (EDT) on

lum, Inc., also of

-

Price—To

Stuart & Co. Inc.; Morgan Stanley

Co.; White, Weld & Co. and

The First Boston Corp. and

Electric Power Door Co.,

(9/15)

Productions, Inc.

June 30 (letter of

of

filed

working
Underwriter—None.

Cuban-Venezuelan Oil Voting Trusts,

July 2
cents).

writer—None.

28

class B common
Proceeds — For
capital. Gffict—503 E. Fourth St., Bogalusa, La,

multiples of $50 each to class A and
stockholders. Price — $37.50 per unit.

Louis.

Metairie

Inc.,

Laboratories,

(New Orleans), La.

stock

Bankers

Credit Corp.

Consumers

ital.

Phoenix, Ariz.

Sept. 4 (letter of notification) 100,000 shares of common
stock (par $1.50).
Price—$2 per share. Proceeds—For
working capital. Office—921 East McDowell Road, Phoe¬

applied
against costs of selecting and acquiring interests in oil
-or gas explorations.
Office—-New York, N. Y. Under¬

Feb.

•

Aug. 22 (letter of notification) $300,000 of 10-year 6%
subordinated debentures, series of 1958, to be offered in

Park Ave.,

accepted

—

outstanding shares of common stock

(par 20 cents). Price—Related to the current market
price on the American Stock Exchange. Proceeds—To
selling stockholders. Underwriter—None.

Sept. 23 at office of

Aug. 4

Proceeds

July 1 filed 419,000

company

Austral Oil Co. Inc. for 1958, or to any selected persons
company.

Consolidated Cuban Petroleum Corp.

any

pay

* Austral 1959 Corp. for Oil Exploration
Sept. 9 filed $5,000,000 of oil exploration agreements for
1959, to be offered to any person who has an optional
right to such offering under a similar agreement with
by the

Offering—Indefinite.

York.

expansion and improvement of service facilities. Under¬
writer—To be determined by competitive bidding. Prob¬

stockholders

subsequent to that date.

bearer

construct refinery.

Calidyne Co., Inc., Winchester, Mass.
4 filed 230,875 shares of common stock (par $1)
These shares are issuable upon conversion of an ag¬
June

Arcade

85,000 shares of common stock.
($3.75 per sharefT Proceeds—For invest¬
ment in subsidiary and working capital. Underwriter—

Sept.

share*
shares of stock.
Proceeds — To
Underwriter—Lehman Brothers, New

follows: $l,00u of bonds and 48

$100 of debentures —d nine
Price—To be supplied by amei^nent.

of stock and

Aug.

of

$12 per share.
Proceeds
To go to selling stockholders. Office — 700
N. 44th Street, Birmingham, Ala.
Underwriters—Cruttenden, Podesta & Co.. Chicago, 111.; and Odess, Martin
& Herzberg, Inc., Birmingham, Ala.
class B

properties and the class B shares to be issued as com¬
Underwriter—Cador, Inc., Far Hills, N. J.

writer—None.

of notification)

(letter

Far Hills, N. J.

Cador Production Corp.,

Aug. 7 filed

debentures, series E. Price—61.027% of

Dec.

of common stock. Price—At
Proceeds—For general corporate
Underwriter — Bankers Bond Co., Louis¬

($100 per share).

par

—

(9

McDonald, Holman &

gregate principal amount of $923,500 of 10-year 3% con¬
vertible subordinated income notes of the Calidyne Co.,

Inc.

Price—$10.20
share. Proceeds—For investment in first trust notes,

Dec. 17 filed 490,000

—

ISSUE

REVISED

missions.

discharge current liabilities and to drill ten
derwriters—To be named by amendment.
1

Underwriter

April 14 filed 8,934 shares

gas

(N. Y.)

Feb. 28 filed 500,000

Price—To

Houston, Texas.

Co., Inc., New Y7ork.

ville, Ky.

★ Amber Oil Co., Inc.

.,

10

offered in units as

cents.)

purposes

Sept, 5 (lette-* of notification) 125,000 shares of common
jstock (par $1). Price—$2 per share. Proceeds—For de¬

JLeeford Co., Inc.,

Office —At¬

lanta, Ga

Feb.

★ Addison-Wesley Publishing Co., Inc.
Sept 3 (letter of notification) 13,600 shares of class B
common stock
(no par), of which 11,100 shares are to
be offered for subscription by stockholders (rights to

ITEMS

•

PREVIOUS

Ethodont Laboratories,
Feb.

At

20

par

expense

tion.

filed

Eichler & Co.,

Berkeley, Calif.

300,000 shares of common stock.

Price—

($5 per share).
Proceeds—To cover operating
during the development period of the corpora¬

Underwriter—None.

Exploration Service Co., Ltd., Far Hills, N. J.
Aug. 11 this company and Amkirk Petroleum Corp.
(latter of Fort Worth, Texas) filed $400,000 of working
interests (non-producing in Sinu Valley Project), to be
offered for sale in $12,500 units (of which $8,000 is pay¬
able in cash and $4,500 is to be represented by promis¬
notes). Proceeds—Exploration Service Co. to ac¬
quire 80% interest in a certain concession from Amkirk
and for exploration program. Underwriter—Cador, Inc.,
Far Hills, N. J.
sory

Federal

Commercial Corp.

May 21 (letter of notification) 300,000 shares of common
(par 10 cents). Price—50 cents per share. Pro¬
ceeds—To make loans, etc.
Office — 80 Wall St., New
stock

York, N. Y. Underwriter—Dumont Securities Corp.. New
York, N. Y.
Fields7

Louisiana Corp.,

Baton Rouge, La.

July 31 filed 400 shares of common stock (no par) $500,-6
000 of 6% debenture bonds and $50,000 of promissory

Volume

5776

Number

188

.

.

The Commercial and Financial Chronicle

.

notes to be offered In units of four shares of stock, $5,000
of bonds and

ceeds—To

Price—$7,500

$500 of notes.

take

over

mont Motor Hotel

working capital.

contract

a

per unit. Pro¬
purchase the Belle-

to

in Baton Rouge; for equipment; and
Underwriter—None.

First Backers Co.,

April

7

Inc., Clifton, N. J.
$1,000,000 of 12% notes, payable

filed

months after date

issue

of

nine

in units of

$100 or in mul¬
of principal amount. Pro¬
ceeds—To be used solely for purchase of notes and other
indebtedness issued in payment for improvements on

tiples thereof.

Price—100%

homes and secured by mortgages or other liens upon the

(1033)

selling stockholders. Underwriter
McDonald & Co.,
Cleveland, Ohio, and Kidder, Peabody & Co., New York.
—

it Florida Water & Utilities Co., Miami, Fla. !
Sept. 4 filed 55,000 shares of common stock (par $1).
$7 per share.
Proceeds — Together with other
funds, to be used to reduce the company's indebtedness,
lor working capital, and for
property additions and im¬
Price

—

Underwriter

provements.

Beil

—

&

Hough,

Inc.,

St.

Petersburg, Fla.
Forest
March

Sept. 2 (letter of notification) 18,750 shares of common
stock (par $5).
Price — $16 per share. Proceeds — For
construction

poses.

Underwriter—None.

★ Fleming Co., Inc.

and

acquisition of

new

frozen foods facili¬

ties; acquisition of new frozen foods equipment, and
working capital. Office — 600 Garlinghouse Bldg., Topeka, Kan. Underwriter—None.
•
★

Florida

National

Development Corp.
Aug. 7 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For development of land, promotion and sale of
existing
properties, payment of mortgage and working capital.
Office—438 Mercantile Bank Bldg., Miami
Beach, Fla.
Underwriters — James Anthony Securities Corp., New
York; and Schwerin, Stone & Co., Great Neck, L. I.,
N. Y.

Statement to

be withdrawn.

★ Florida Steel Corp.
Sept. 9 filed
Price—To

74,925

be

(9/29-10/3)

shares

supplied

of

by

stock

common

amendment.

(par

$1).

Proceeds—To

to be
•

Office—Brooklyn, N. Y. Underwriters—Statement
amended.

Fred

Astaire Dance Studios
(Metropolitan New
York), Inc. (9/15)
Aug. 7 (letter of notification) 299,940 shares of common
stock (par 10 cents). Price—$1
per share. Proceeds—For
constructing and furnishing new dance studios. Office—
487 Park Ave., New
York, N. Y. Underwriter—Willis
E. Burnside &

•

Garrett

Aug.

<9/18)

Corp., Los Angeles, Calif.

filed

28

$10,000,000 <of

subordinated

w

''

convertible

borrowings

filed

150,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro
motion of company's
products, working capital, addi¬
tional inventory and accounts
receivable, for research
snd development and for other
general corporate pur

improved properties.

• Frontier
Refining Co., Denver, Colo. (9/22-2€J
Aug. 29 filed $2,000,000 of 5V2%, 5%%, 6% and 6l/z%
serial debentures, series of 1958. Price—$1,000 perunit.
Proceeds—For working capital.
Underwriters—Peters,
Writer & Chirstensen, Inc., and Garrett - Bromfield &
Co., both of Denver, Colo.

debentures due Sept. 15, 1978. Price—To be
supplied by
amendment. Proceeds—To repay short-term

Laboratories, Inc.

26

39

Co., Inc., New York, N. Y.

Fremont Valley Inn
Aug. 6 (letter of notification) 300,000 shares of common
stock. Price—At par ($1
per share). Proceeds—To erect
and operate an activities
building, comprising a restau¬
rant, cocktail lounge and coffee shop. Office—3938 Wilshire Blvd., Los Angeles, Calif.
Werner & Co., Pasadena, Calif.

Underwriter—Oscar G.

incurred

to

inventories and accounts receivable
relating to defense production contracts. Underwriter—
Merrill
Los

carry

Lynch, Pierce, Fenner & Smith, New York and

Angeles.

General Aniline A Film

Corp., New York

Jan. 14, 1957 filed 426,988 shares of common A stock
(bo
par) and 1,537,500 shares of common IT stock (par $])*
Proceeds—To the Attorney General of the United State*.

Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 p.m.

(EDT)

on

May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been postponed.
General

March 31
stock

mon

Devices, Inc., Princeton, N. J.
(letter of notification) 40,000 shares of com¬
(par $1) to be offered for subscription by

stockholders

the

at

rate

of

approximately 18.5 sharea
April 15; unsubscribed
Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter

for each

100

shares held about

shares to public.

—None.
•
Genung's, Inc., Mount Vernon, N. Y. (9/17)
Aug. 27 filed 145,825 shares of common stock (par $1)„
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for working capital. Underwriter—

NEW ISSUE CALENDAR
September 12
San

(Friday)

September 30 (Tuesday)

Diego Imperial Corp.__
(J.

Hogle

A.

&

-Preferred

Co.)

September 15
Cinemark

II

(Watson

New

$700,000

(Morgan Stanley &

&

Co.)

(Willis

E.

$300,000

&

Co.,

Gas

September

(Offering-

Inc.)

&

and

Corp.;

&

Stuart

(Offering

to

Glore,

Co.,

shares

Bonds

White,

Inc.)

Weld

&

&

Co.)

Co.)

11

&

&

Pierce,

Co.

Inc.)

Fenner

&

Stanley & Co.)

Frontier Refining

Kidder,

(Bids

Smith)

Christensen,
&

Co.)

Ripley
Co.

&

and

Inc.

and

to

.Equip. Trust Ctfs.

(Thursday)

(McDonald,
ft

Florida

♦

Michigan

Bell

Peabody




18

be

to

74,925

shares

new share for each seven shares
held; war¬
rants to expire Sept. 20, 1958. Unsubscribed shares to b®
offered to stockholders until Oct. 20, 1958; then to pub¬

one

Price—$3

per

share.

$6,450,000

Proceeds—For general fund®

to be used for expansion. Office—119 W. Rudisill Blvd.,
Fort Wayne, Ind.
Underwriter—Northwestern Invest¬
ment

Inc., 502 Gettle Bldg., Fort Wayne, Ind.

*

it Greenacres, Inc.
Aug. 28 (letter of notification) 125 shares of common
stock (par $100), Price—$500 per share. Proceeds—For
general purposes and in acquisition of further timberproducing and other unimproved real property for tha
temporary or permanent use of the company. Office—
4427 Rainier Ave., Seattle
8, Wash. Underwriter—None.
Guardian Insurane® Corp., Baltimore, Md.
Aug. 16, 1957, filed 300,000 shares of common stock, of
which 200,000 shares are to be publicly offered and th®
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which

Equip. Trust Ctfs.

received)

to

warrant

are

to be sold at 25 cents per

organizers,

incorporators,
management,
and/or directors.
Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
Gulf

Bonds
$17,000,000

Bonds
$10,000,000

Co

Debentures

$40,000,000

(Bids to be invited)

Montana

$20,000,000

Power

Loeb & Co.

to

to

(jointly); Stone & Webster Securities Corp.; and Salo¬
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¬

Brothers) $24,000,000

be

invited)

$40,000,000

be

—-Bonds

invited)

$8,000,000

be

invited)

Bonds

$10,000,000

Universal Cyclops Steel Corp
G.

Becker

&

Co.,

Inc.)

(Bids

to

be

invited)

facilities

aggregating

about

$1,500,000,

and

for

other

corporate purposes, including additional working capital.

$22,500,000

Underwriters—Morgan
McDonald

Bonds
$20,000,000

it Harshaw Chemical Co. (9/30)
Sept. 9 filed $7,000,000 of 20-year debentures due 1978.
supplied by amendment. Proceeds—To b»
used for the retirement of indebtedness totaling $3,500,-

000, for capital improvements to chemical manufacturing
-Debentures
Debentures

& Light Co

poned.

Price—To be

(Bids to be invited) $110,000,000

(A.

Halsey, Stuart & Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith and White, Weld & Co.

Bonds

and Lehman

Southwestern Bell Telephone Co

Utah Power

Utilities Co.

mon

Pennyslvania Power Co
to

States

Aug. 14 filed $17,000,000 of first mortgage bonds, serie®
A, due 1988. Proceeds—Together with cash on hand, t®
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:

.Bonds

Co

New England Telephone & Telegraph Co.—Debens.

$400,000

(Monday)

Co.)

$80,000,000

(Thursday)

invited)

(Bids

Common
&

invited)

Debentures

South Carolina Electric & Gas Co
Common

Corp

(Kidder,

be

Telephone

(Bids

(Friday)

Holman & Co., Inc.)

(Tuesday)

Telegraph Co

(Bids to be invited)

.

Co

29

to

$5,310,000

Co.—

(Bids

Common

September

Steel

Equip. Trust Ctfs.

received)

(Bids to be invited)

Laclede Gas

150,000 shares

$290,000

(Thursday)

Gulf States Utilities Co

(Kuhn,

Common

Co.)

September 26
Management

13

Bonds

$20,000,000

Moore-McCormack Lines, Inc

Imperial Packing Corp
&

be

to

(Bids to be

Citizens Life Insurance Co

(Simmons

EST)

a.m.

(letter of notification) 31,011 shares of com¬
(par $1) to be offered to stockholders on the

12

stock

mon

writer—None.

(Offering to stockholders—no underwriting) 510.005 shares

Corp)

(Thursday)

•

$3,975,000

Common

Great Northern Life Insurance Co.

lic.

(Tuesday)

Postponed Financing
Bonds

received)

(Tuesday)

Norfolk & Western Ry

1

$15,000,000

Price—To be supplied by amendment.
Proceeds—For
working capital and other corporate purposes. Under¬
writers—Joseph Mandell Co. and Louis L. Rogers Co.,
both of New York, on a best efforts basis.

basis of

484,000 shares

Co. Inc.; Kuhn, Loeb & Co.; Lazard
Smith, Barney & Co.) $15,000,000

(Lee Higginson

6

November 18

(Bids

Preferred

September 25

11

Pacific Telephone &
(Bids

of)

be

$7,440,000

Bonds

December

(Wednesday)

Great American Realty Corp., N. Y. (9/23)
Aug. 18 filed 484,000 shares of class A stock (par 19
cents). Of this stock, the company proposes to offer
400,000 shares and certain selling stockholders 40,009
shares, the remaining 44,000 shares being subject to
option to be offered for the account of the underwriters^

Aug.

Equip. Trust Ctfs.

received)

November

(Bids

Wisconsin Electric Power Co

Bankers

be

Class A

Pittsburgh & Lake Erie RR
(Bids

Ry

to

preferred and

Co

(Bids

'•

&

of

common

Indiana & Michigan Electric Co

$35,000,000

(Morgan Stanley & Co.)

Freres

of

Norfolk & Western Ry

$2,000,000

Consumers Power Co

(Kingdom

Common

Preferred & Common
shares

shares

Street, New York 16, N. Y. Underwriter—James
Anthony Securities Corp., 37 Wall St., New York 5, N. Y.
Offering—Indefinitely postponed.

(Bids to be received) $25,000,000

$10,000,000

Bonds

September 24

'

Cincinnati & Suburban Bell Telephone Co.—Debs.

(Tuesday)

EDT)

a.m.

$11,000,000

(Thursday)

210

November

$200,000,000

(Joseph Mandell Co. and Louis L. Rogers Co.)

(Harriman

EDT)

October 21

Great American Realty Corp

Norway

invited)

8

(Bids to be received) $15,000,000

Co

11

Power

(Monday)

September 23
Power

Idaho

Debentures
«te

Garrett-Bromfield

Consumers

a.m.

(Bids

$28,000,000

Co

Writer

(Peters,

11

515.6

Debentures

September 22

Bonds

Manufacturing Co

(Thursday)

Standard Oil Co. (Indiana)
(Morgan

be

150,000 shares of class A

stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—For general corporate purposes.
Office—1 K.

$24,000,000

$9,000,000

Debentures

Lynch,

Arabol

—Bonds

Garrett Corp
(Merrill

to

Norfolk & Western

of)

American-South African Investment Co.,
Ltd.
Common
Read

Co.)

(Wednesday)
Addresograph-Multigraph Corp

Preferred

by
113,500 shares

Co.)

Co.; Reynolds & Co. Inc.

(Tuesday)

Common

September 18

•

(Bids

(Bids

$24,282,600

EDT)

&

October 9

Corp

Peabody

(Dillon,

Witter

Common

&

Glassheat Corp.
eeb. 12 (letter of notification)

85th

$25,000,000

(Offering, to stockholders—to be underwritten by
Smith, Barney <fe Co.) 141,113 shares

stockholders—underwritten

to

Dean

October 14

Chemical

(Offering

by

Indiana, Inc.__

a.m.

EDT)

Underwriter—Buckley Enterprises, Inc.

•

common

Debentures
a.m.

October

145.825 shares

(Commonwealth
(Bids

Thiokol

and

(Wednesday)

(Blyth & Co., Inc.)

Rico

Co.

Common

Walker &

Public Service Co. of
Puerto

$70,096,100

Madison Gas & Electric Co

$2,554,400

—

H.

underwriting)

Co., New York.

Georgia Casualty A Surety Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1).
Price—$6 per share. Proceeds — For general corporate
purposes.

Common

$50,000,000

stockholders—underwritten

September 17

(G.

$750,000

(Wednesday)

October 7

Preferred

Forgan

Genung's, Inc

$7,000,000

Common

Inc.)

(Kidder, Peabody & Co.; Bache

Common
100,000

1

(Bids 11:30

Tropical Gas Co., Inc
,

Co.)

Wellington Equity Fund, Inc

(Tuesday)

Co.)

&

Secuirties

Halsey,

&

National Fuel Gas Co

$8,580,000

Inc

Peabody

Webster

Co.,

October

Tennessee Gas Transmission Co
(Stone

<fc

stockholders—no

to

$299,940

Corp.__Debs. & Com.

16

Service

Gas

McDonald

Mountain States Telephone &
Telegraph
Co.

(Metropolitan

(Kidder, Peabody & Co.)

(Kidder,

G. H. Walker &

-Debentures

and

—Common

Burnside

North Carolina Natural

Suburban

(Alkow

Common

York), Inc

Co
Co.

Israel-Negev Petroleum Corp

(Monday)

Productions, Inc.u_

Fred Astaire Dance Studios

Harshaw Chemical

&

Stanley

&

Co., New York;

and

Co., Cleveland, Ohio.

Continued

on

page

34

The Commercial and Financial Chronicle...

Brothers, Merrill Lynch, Pierce, Fenner & Smith and
Reinholdt & Gardner (jointly); Eastman Dillon, Union

Continued from page 33

Stone & Webster Securities Corp.. Bids
—Had been expected to be received up to 11 a.m. (EDT)

Securities & Co.;

ic Haydu Electronic Products, Inc.
Sept. 3 (letter of notification) $300,000 6% convertible
subordinated debentures due Dec. 31, 1968. To be of¬
fered for public sale. Price—$100 per $100 of debentures.
Proceeds—For working capital and for general corporate

on

Hoagland & Dodge Drilling Co., Inc.
shares of capital stock.

Price—$10
per share. Proceeds—To be used in part for the ex¬
ploration of mines and development and operation of
mines and in payment of indebtedness. Office—Tucson,

in

acquiring latter

company's

Minerals

Vegas, Nev., and South San Francisco, Calif. Underwriter
Watson Co., Inc., Little Rock, Ark., on a best

•

Imperial Packing Corp.

To

Life Insurance

$15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under-j
writer—To be determined by competitive bidding. Prob¬

repay

Crenshaw
Reeves &

filed

best efforts basis.

(par 10

150,000 shares of common stock

cents). Price—To be related to the market price. Pro¬
ceeds—For working capital and to enlarge research and

shares of common stock (par $1).

June 2 filed 5,000,000

Price—$5 per share. Proceeds—For working capital and
other corporate purposes. Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.

ir International Rectifier Corp., El Segundo,

Calif.

(par $1),
of which 80,000 shares are to be sold for the account of
the company and 100,000 shares for selling stockholders.
Price—To be supplied by amendment. Proceeds — For
general corporate purposes. Underwriter—Blyth & Co.,
Inc., San Francisco, Calif., and New York, N. Y.

Sept. 9 filed 180,000 shares of common stock

Investors

Mortgage & Financial Corp.
$250,000 of investors income certificates

Realty

July 24 filed

(6%

10-year maturities)
stock.

common

125,000 shares of class A

and

Price—The certificates will be offered in

various

class A

common

100%

denominations at
stock

at

$2

certificate, and the
share. Proceeds—For

per

per

the purpose of owning, buying and selling, and other¬
wise dealing in real estate, or matters pertaining to real
estate and the improvement thereof, in the areas in
Which

the company

Office—Aiken, S. C.

will operate.

Underwriter—None.

• Iron Mask Mining Co.
Aug. 28 (letter of notification)
assessable

common

1,000,000 shares of non¬
(10 cents per
Address—Box*

Price—At par

stock.

Proceeds—For mining

share).

expenses.

Underwriter—None.

411, Sandpoint, Idaho.

• Israel-Negev Petroleum Corp.
(9/30)
Aug. 29 filed 750,000 shares of capital stock (par 20
cents). Price—$1 per share; but the company may grant
to purchasers of 100,000 or more shares a discount of
37Yz% from the offering price. Business—To engage pri¬
marily in the business of exploring for, acquiring inter¬
ests in, developing and operating oil and gas properties
in Israel. Proceeds—For drilling and exploration pur¬
poses. Underwriter—Alkow & Co., Inc. (formerly Henry
Montor Associates, Inc.), New York.

• Istel Fund, Inc., N. Y.
Sept. 8 filed (by amendment)
shares

of

common

stock

an

(par $1).

additional

Price

—

100,000

At market

Proceeds—For investment.

Underwriter—John R. Boland

30 Broad St., New
•

&

Co.

Inc

''

York, N. Y.

Jacksonville Capri

Associates Ltd.

July 23 filed $325,000 of limited partnership interests.
Price—$5,000 per unit.
Proceeds—For the purpose of
acquiring and operating the Capri Motel in Jacksonville,
Fla.

Underwriter—None.

Statement effective

Kinsman Manufacturing Co., Inc.
Aug. 25 (letter qf notification) 1,482 shares of
stock

(no par).

Price

—

$100

per

share.

Aug. 28.
common

Proceeds

—

To

pay- off short-term

capital.

obligations and to improve working
Office—90 Mill St., Laconia, N. H. Underwriter

—None.

Laclede Gas Co.
18

1983.
due

tiled

$10,000,000 of first mortgage bqnds due
refund 4%% first mortgage bonds

Proceeds—To
1982.

Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman

tive




Mortgages, Inc.
July 28 (letter, of notification) 296,750 shares of com¬
mon
stock (par 25 cents).
Price—$1 per share* Pro¬
ceeds—To be invested in notes secured by first and
of the company. Office—223A Independence
Building, Colorado Springs, Colo.' Underwriter—Copley
& Co., Colorado Springs, Colo.
agement

Motel Co. of Roanoke, Inc.,
Nov.

Underwriter—Southeastern Securities Corp., New York.

derwriter—None.
'

—

Fund, Inc., St. Paul, Minn.

6 filed 40,000 shares of common stock:. Price—At
Proceeds—For investment.
Office—1002 First

market.

National Bank Bldg., St. Paul, Minn.

Martin Co-v Baltimore,

ing, which was expected on July 2, has been postponed.
Issue to remain in registration.

stock, 6% dividend series, the latter shares to be offered
principally to holders of whole mortgage notes and re¬
lated warranty agreements, although the company re¬
serves the right to offer such stock to others.
Price—
For preferred stock, at par ($200 per share).
To be used principally for the purchase of

Proceeds—
additional
mortgage notes for resale to others. Office—2633 15th
Street, N. W., Washington, D. C. Underwriter—None.
notification) 5,000 shares of 6%
cumulative preferred stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of one
share of
4383

(letter

of

prefei^ed and one share of common stock. Price

per

unit.

Proceeds—For working capital. Office—

Bandini Blvd., Los

Underwriter—

Angeles, Calif.

None.

Sept. 3 filed 700,961 shares of capital stock to be offered
subscription by stockholders of record Sept; 26, 1958
at rate of orie riew share for each five shares held; rights

expire on OcL 24, 1958. Price — At par ($100Tper
Proceeds — To repay advances from American
Telephone & Telegraph Co., the parent; and for general

to

share).

parent

of Illinois
Aug. 20 (letter of notification) 12,606 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record Aug. 25, 1958 on the basis of one new
share for each 12 ^ shares held. Price—To yield a maxi¬
not to

,exceed $300,000.

Proceeds

—

short term loans and for working capital.

Margaret St., Pekin, 111.

To discharge
Office

—

416

Underwriter—None.

Mid-West Durex Co., Kansas

over

owns

shares.

'{*

,

,

and for working capital. Underwriter—Investment Sales,
Inc., 532 E. Alameda Ave., Denver 9, Colo.
v

1

'

.

.

.

,

(N. Y.)

May 9, 1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment.
Sponsor—Ira Haupt

York.

A

'

-

Estes Park, Colo.
May 16 (letter of notification) 2,916,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
National Beryl & Mining Corp.,

Proceeds—For mining expenses. Underwriter

share.

per

—Birkenmayer & Co., Denver, Colo.
National Educators Finance Corp.
stock.

Price—At par

train

To

50,000 shares of common
(50 cents per share). Proceeds—
persons to implement and carry

(letter of notification)

June 4

the

and

Western

procure

plan of development and operation.
St., Boulder, Colo.
Underwriter—
Securities Co., Boulder, Colo.

projected

Pearl

Office—1406

National

Fuel Gas Co.

(10/1)

sinking fund debentures due
1, 1983. Proceeds—To refund $15,000,000 outstand¬
5J/2% sinking fund debentures and to repay bank

Aug. 22 filed $25,000,000 of
Oct.

ing

Underwriters—To be determined by competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co. and Stone &
Webster Securities Corp. (jointly); White, Weld & Co.;
Harriman Ripley & Co. Inc.; Kuhn, Loeb & Co. and Wertheim & Co.: (jointly); The First Boston Corp. Bids—•
Expected to be received up to 11:30 a.m. (EDT) on Oct.
1 at Room 2033, Two Rector St.. New York 6, N. Y..
bidding.

Eastman

it Nebraska

City, Mo.
July 14 filed 725,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of plant

Underwriter—None. Control—The
80%' of the 3,504,809 outstanding

'

Investment Trust Fund, Inc.

Municipal

loans.

Middle States Telephone Co.

mum

& Telegraph Co*.'

'

(9/30)

out

Mayfair Markets
24

'

& Co., New

Investment Corp.

20 filed $6,000,000 of warranty and repurchase
agreements and 5,000 shares of cumulative preferred

Aug.

March

.

4

States Telephone

corporate purposes.

Md.

of sinking fund debentures, due

July 1, 1978. Proceeds — Working capital and general
corporate purposes. Price—To be supplied by amend¬
ment. Underwriter—Smith, Barney & Co., N. Y. Offer¬

Mason Mortgage &

.

Mountain

lor

Hogle & Co., Salt Lake City, Utah.

June 11 filed $25,000,000

Investors jnc.

Picture

Motion

July 11 filed 200,000 shares of Common stock (par $1).
Price—$10.75 per share. Proceeds—For investment. Of¬
fice—1000 Power & Light Bldg., Kansas City, Mo. Un¬

lhare.

Mairs & Power

purchase of land, construction and working capital.

For

par

Aug

Roanoke, Va.

18,1957 (letter of notification) 60,000 shares of com¬
share. Proceeds—

stock (par 40 cents). Price—$5 per

mon

Magna Investment & Development Corp,
May 26 filed 56,000 shares of common stock and $500,000
of 6% convertible debentures. Price—For debentures, at

Underwriter—J. A.

properties to be selected by the man¬

second liens upon

exercise its rights to its pro rata
amendment. ProceedsTogether with other funds, will be applied to pay shortterm construction notes payable to banks, and any bal¬
ance will be applied to reimburse the company for ex¬
penditures made for property additions. Underwriter—
To be supplied by amendment.

Office—Salt Lake City, Utah.

.

Smith, Barney & Co., Kidder, Peabody & Co. and Blyth
& Co., Inc.

Aug. 28 filed 15,400 shares of common stock (par $25).
Of this stock, 12,000 shares are to be 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 to be
offered for subscription by existing stockholders at the
rate of two new shares for each 11 shares now owned;

ters.

.

price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program
through 1959.
Manager-Dealers —

stockholders. Office—24751
Blvd., Torrance, Calif. Underwriter—Daniel
Co., Beverly Hills, Calif.

(in $1,000 units); arid for common stock, $4.50 per
Proceeds—For contractual obligations, for work¬
ing capital, and other general corporate purposes. Busiaess
To engage primarily in the development and
operation of various properties, including shopping cen¬

Power Co. :r.'

Montana

July 1 filed 100,000 shares of common stock (no par)^
stock will be offered only to bona fide residents
of Montana. Price—To be related to the current market

The

Lowell Gas Co., Lowell, Mass.

—$60

J. E. Plastics Manufacturing Corp.
July 28 (letter of notification) 39,852 shares of common
stock (par 10 cents) of which 38,750 shares will be sold
publicly. Price—$2.12y2 per share. Proceeds—To selling
stockholder.

other in-

aggressive and expanding life and

Iricj

(jointly). Bids—Had been expected to be received, up
(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.

to noon

share. Price—To be supplied by

International Opportunity Lite Insurance Co.

Dillon,

body & Co.; Smith, Barney & Co. and Blyth & Co.,

Securities Corp.

but the parent will not

development department. Underwriter — S. D. Fuller &
Co., New York. Offering—Being held in abeyance.

Corp. (jointly); White, Weld & Co.;
Union Securities & Co.; Kidder Pea-

Webster Securities

Eastman

Proceeds—To go to selling

(N. Y.)

Industro Transistor Corp.

Cleveland, Ohio.

Longren Aircraft Co., Inc.
June 18 (letter of notification) 34,000 shares of common
stock (par $1). Price—From 80 cents to $1.40 per share.

Washington, D. C.

'

Feb. 28

Merrill

companies and related companies and then to
operate such companies as subsidiaries." Underwriter—
First Maine Corp.. Portland. Me.

July 24 filed 600,000 shares of common stock (par one
cent). Price—$1 per share. Proceeds—To develop and
operate graphite and mica properties in Alabama. Un¬
derwriters—Dearborn & Co. and Carr-Rigdom & Co.,

bidders: Halsey, Stuart & Co. Inc.; Lehman Bros.;
Lynch; Pierce, Fenner & Smith, arid Stone &

able

lurance

in the production of citrus juices and by-products
working capital.
Office—Anaheim, Calif. Underwriter—Simmons & Co., New York, N. Y.

Power Co.

Montana

1,000,000 shares of capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
of "young,

two warrants to pur¬
Price—$1 per unit. Proceeds

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds—./Together with other funds, to be used to,

March 28 filed

and

both of Washington, D. C., on a

purchase the Leader Building in

share.

common

one

drilling, exploration and development' of oil and
properties.' Underwriter—None.

gas

Underwriter—None.

penses

Industrial Minerals Corp.,

Y.
participations in partnership
per participation. Proceeds—

Price—$10,000

Interests.

(9/25)

stock (par 10 cents) and

common

chase

Leader-Cleveland Realty Associates, N.

July 16 filed $1,280,000 of

Aug. 21 (letter of notification) 290,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ex¬

!

Consolidated, Inc., Salt Lake City, Utah

Aug. 29 filed 1,000,000 units, each consisting of one share

efforts basis.

2,000 shares of class A
subordinated debentures
and 2,000 shares of class B stock (par $15) Jto be offered
first to stockholders. Price—$15 per share for class A
and $100 per unit to stockholders (each unit consisting of
$85 of debentures and one class B share). Proceeds—For
expenses of setting up production and distribution; man¬
ufacturing and operating expenses and for operating
capital. Office—210 North 30th, P. O. Box 5070, Boise,
Ida, Underwriter—First Idaho Corp., Boise, Ida,

to

'

derwriter—None.

South San

—Sam

Aug. 22 (letter of notification)
stock (par $15), $170,000 of 6%

share for each 8.8 shares

expire in September,
stockholders; $26 to general
public. Proceeds—For test equipment and woricing cap-4
ital. Office—7601 N. W. 37th Avenue, Miami; Fla. Un¬

working capital. Offices—Las

Francisco foundry and for

Co., Inc.

Idaho Manufacturing

one

Rights

date.

—For

penditures

Underwriter—None.

the basis of

per" share

Price—$24

Proceeds—Together with a $175,000 mortgage loan from
the American Brake Shoe Co., will be used to meet ex¬

■

on

record

of

owned

of

stock

June 12 filed 27,000

Ariz.

postponed indefinitely.

stockholders

(par 10 cents) to be offered in units of $100 of
debentures and 30 common shares. Price—$100 per unit.

Underwriter

York, N. Y.

July 8, but offering has been

Laughlin Alloy Steel Co., Inc.
Aug. 28 filed $500,000 of 6% subordinated callable de¬
bentures due June 30, 1968, and 150,000 shares of common

Office—1426 West Front St., Plainfield, N. J.
— Berry
& Co., Plainfield, N. J. and New

purposes.

•

Thursday, September 11,1958

(1034)

34

Consolidated Mills Co., Omaha, Neb.

Sept. 9 filed 49,423 shares of common stock (par $10)
to be offered for subscription by common stockholders
at rate of one new share for each eight

shares held (with

oversubscription privilege). Price — $10 per share.
Proceeds—For/general corporate purposes. Underwriter
an

'/*,

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¬
ing capital. Address—P. O. Box 550, Rocky Ford, Colo.

—None.

Underwriter—IAI

pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,

Securities Corp., Englewood, Colo.

Milgo Electronic Corp.
Aug. 6 (letter of notification) 10,000 shares of common
stock (par $1) to be offered for subscription by present

Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To

Houston, Tex.

Volume

188

Number 5776

.

.

The Commercial and Financial Chronicle

.

(1035)
New England
Telephone & Telegraph Co.
July 31 filed $40,000,00u of 34-year debentures due Sept.
1, "1992. Proceeds
To refund a like amount of 4%%

Pennsylvania Power Co.
Aug. 1 filed $8,000,000 of first mortgage bonds due 1988.
Proceeds—To redeem

—

first

mortgage bonds, scries B, due May 1, 1961, which
to be redeemed on Nov.
1, 1958. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co. Bids—Were to have been
)
received at Room
2315, 195 Broadway, New York, N. Y.,
up to 11 a.m. (EDT) on Aug.
26, but company on Aug.
20 decided to
postpone refunding program.
intended

are

like

a

amount

(jointly);

Brothers, Eastman Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and Ladenburg, Thalmann
& Co.

and

(jointly); Merrill Lynch, Pierce, Fenner & Smith
Witter & Co. (jointly).
Bids — Tentatively

Dean

Aug. 29 (letter of notification) 150,000 shares of common
stock (par$l). Price—$2
per share. Proceeds—For capi¬

on

Springs, Colo.
★

Natural Gas Corp. (9/15-19)
July 31 filed $5,200,000 of subordinated income deben¬

15, 1983, and 520,000 shares of common
(par $2.50) to be offered in units of $20 of deben¬
tures and two shares of stock. Price—To be
supplied by
amendment (a maximum of $33
per unit).
Proceeds —
Together with funds from private placement of $13,750,000 of 5% % first mortgage pipeline bonds due June

of

one

common

share for each six shares held. Price—At
par

-Northwest Gas & Oil Exploration Co.
Aug. 22 (letter of notification) 300,000 shares of

Ponce

for

Underwriter

common

Co;, Inc., New York 5, N. Y.

v/f-::."/.

★ Norton Portland Corp.
Aug. 19 (letter of notification) 29,265
voting class B capital stock (par $1).
shares.

Proceeds

For

—

to

others.

be

to

Price—$8

de Leon

Trotting Association,

share for

offered

to

share.

per

Chenango

Inc.

liabilities, for new construction and working capital.
Office—Bayard, Fla. Underwriter—Robert L. Ferman
Co., Inc., Miami, Fla.
Prairie Fibreboard Ltd.

Aug. 18 filed 209,993 shares of

common stock (par
$1.50)
be offered for sale to residents of Canada in
the Prov¬
of Manitoba, Saskatchewan and
Alberta and to
residents of the United States

&

•

shares

of

non¬

"only in the State of North

Dakota."
struction

Canada.

Price

$3

per
share.
Proceeds — For con¬
Office —Saskatoon, Saskatchewan,
Underwriter—Allied Securities Ltd., and United
—

purpose.

Securities, Ltd., both of Saskatoon, Canada.

outstanding trade obligations; to

—None.

and

for

working capital.
Me. Underwriter—

Portland,

y;- /

Price—$10

V-yZ

-/•>■/...

—

Underwriters

—

Harriman

Private

Ripley & Co. Inc.;
Co.; and Smith,

&

Springs,

Colo.

Underwriter

Enterprise, Inc., Wichita, Kansas

May 5 filed 125,000 shares of common stock. Price—$10
share. Proceeds
To be used to organize, or re¬
organize and then operate companies in foreign nations,
per

★ Norway
(Kingdom of)
(9/24)
*
v
Sept. 5 filed $15,000,000 of 15-year external loan bonds
of 1958, due Oct. 1, 1973.
Price
To be supplied by
amendment.
Proceeds—To acquire and import/capital
equipment required for development of the Norwegian

Kuhn, Loeb & Co.; Lazard Freres
Barney & Co.; all of New York.

Office—Colorado

—

principally, but not exclusively,' in the Far East, Near
East and Africa.

Underwriter—None.

★ Promotive Singing, Inc.
Sept. 3 (letter of notification)
stock.- Price—At

($10

par

7,000 shares of

per

share).

common

Proceeds—To

purchase, sell, produce and promote entertainment for
profit. Office—720 Glenforest, Rd., N. E., Atlanta, Ga.

—

basis of

Oil Inc., Salt Lake
City, Utah
April 4 filed 597,640 shares of common stock

held;

•

(par

$1)
by common stockholders

to

be offered for subscription
record March 24, 1958 at the rate of
IV4 new shares
for each share then held.
Employees may purchase

50,-

$1.75

share; and to public, $2 per share. Proceeds—
For mining, development and
exploration costs, and for
working capital and other corporate purposes. Under¬
per

writers—Harrison S. Brothers & Co., and
both of Salt Lake City, Utah.

Whitney & Co..

Oil & Mineral
Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various

—To acquire and operate
mining claims and oil and gas
equipment, and a reserve for future operations. Business
properties. Underwriter—Universal Securities Co.. En¬
terprise Building, Tulsa, Okla.
'

O.

T.

March
mon

C.

6

Enterprises Inc.
(letter of notification)

23,200 shares of com¬
Price—$5 per share. Pro¬
completion of plant plans; land; construc¬
and operating expenses.
Office—2502 N. Calvert*
class

B

stock

(par $1).

ceeds—For
tion

St., Baltimore
Sparks, Md.
'

18,

Md.

Underwriter—Burnett

*

1

.

..

&

on

Oct.

6,

1958.

Proceeds—To reduce bank

loans.

common

shares

Price—$100

per

Underwriter—

Blyth & Co., Inc., New York and San Francisco.
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
—Rassco Israel Corp., New
York, on a "best efforts"
basis.

★ Raytheon Manufacturing Co.
Sept. 6 filed 379,954 shares of common stock (par $5)
lo be offered to officers and other
key employees pur¬
suant to the terms of

stock option arrangement under

a

the company's Key Employee Incentive
Plan; and 90,300
shares to be offered to holders of the company's

common

stock

common

412%

1971

purchase warrants issued attached to

notes

now

its

outstanding.

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.

Co.,'

.

preferred share for each 20

rights to expire

share.

of

000 shares of unsubscribed stock. Price—To
stockholders.

one

Richwell

Petroleum

Ltd.,

Alberta, Canada

Production Corp., Salt Lake
City, Utah
April 18 filed 767,818 shares of common stock (par $1),

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 of
the company and 824,000 shares for the account of cer¬

100,000 shares are to be offered by the company
exchange for oil and gas properties and 3,000 for serv¬
ices; the remaining 664,818 shares are to be offered to

at the rate of

•

Paradox

of which

in

the public*

Price—To be supplied by amendment. Pro¬
selling stockholders.
Underwriter—Market

ceeds—To

Securities, Inc., Salt Lake City, Utah. Statement

effec¬

tive JP*ifr 5.
'

Peckman Plan Fund, Inc.,
19 filed 20,000 shares of

May

Price—At

market.

Pasadena, Calif.
common

Proceeds—For

stock

investment.

(par $1).
Under¬

writer—Investors Investments Corp., Pasadena, Calif.

Peerless Weighing & Vending Machine Corp.
27 (letter of
notification) a maximum of 25,000
shares of common stock (par $1) to be offered to minor¬
.

June

ity stockholders

on

the basis of

four shares held.

*

one

new

share for each

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, III.
Underwriter—None.




tain selling stockholders. The
company proposes to offer
the 1,174,716 shares for subscription by its shareholders
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 &
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on

"best efforts" basis.

Robosonic
June

12

filed

Price—$3

per

contract basis

National

Container

the basis of

Corp., Salinas, Calif.,

on

one St.
Regis share for 18 shares of stock of
Growers Container. The offer
expires on Sept. 29, Un¬
derwriter—None. Statement effective Aug. 28.

San

Diego

Imperial Corp. (9/12-15)
70,000 shares of 5}At% cumulative convert¬
stock. Price
At par ($10 per
share).
Proceeds—To retire $550,000 of promissory notes.
Under-.,
writer—J. A. Hogle & Co., Salt Lake
City, Utah.
June 2 filed

ible preferred

—

Sheridan-Belmont Hotel Co.
Aug. 19 (letter of notification) $250,000 of 6% convertible
debentures due Sept. 15, 1963 to be offered for
subscrip¬
tion by common stockholders on a
pro rata basis. Price.—
At par. Proceeds—For
working capital.
North Sheridan Rd., Chicago

14, 111.

•

Office

3172

—

Underwriter—None.

Simplicity Pattern Co. Inc., N. Y.

Aug.

15 filed

42,500

i

shares of

common stock
(par $1).
price within a range not
less than the bid price and nbt
higher than the asking
price quoted on the New York Stock Exchange at the
time of offering. The shares will also
be offered from

Price—At

time

to

the market

time

on

or

at

a

such

Exchange at a price within the
go to Joseph M. Shapiro,
selling stockholder. Underwriter
Lee Higginson
Corp., New York. Offering—Indefinitely postponed.

foregoing

range. Proceeds—To

the

•

—

South

12

Carolina

filed

Electric

&

Gas Co.

$10,000,000 first and refunding mortgage
Proceeds—To repay bank loans and for

bonds due 1988.

construction program.

Underwriter—To be determined

by competitive bidding. Probable bidders;
Halsey, Stuart
Co. Inc.; Kidder,
Peabody & Co.; Eastman Dillon,
Union Securities & Co.; The First Boston
Corp., and
Lehman Brothers (jointly). Bids—Had been
expected to
be received up to 11;30 a.m.
(EDT) on Sept. 10, at 70
Broadway, New York, N. Y., but sale has been post¬
&

poned.

1

• Springfield Fire & Marine/Insurance Co.
Aug. 25 (letter of notification) 9,400 shares of

common

(par $2) to be offered to employees of
Springfield^
Monarch Insurance Co., under the
company's Stock Pur¬
chase Plan For
Employees. Proceeds—To

Corp., N. Y.

automatic telephone answering instru¬

selling stock¬

holders.
•

Standard Oil Co.

Aug.

28

$200,000,000

Price—To
retire

be

(Indiana)
of

(9/18)

debentures

due

supplied by amendment.

$60,000,000 of short-term

Oct.

1,

Proceeds

bank loans, and

mainder will be added to the
company's
and will be available for
capital

1983.
—

the

To
re¬

general funds

expenditures and other

corporate purposes.

Underwriter

—

Morgan Stanley &

Co., New York.
Standard Oil Co. (New
Jersey)
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 for
each four Humble

Oil shares. The offer is expected to
remain open until Oct.
14, 1958. Exchange Agent—Mor¬
gan

Stanley & Co., New York,

Stanway Oil Corp.
Aug. 14 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per
share). Proceeds—For de¬
velopment and operation of an oil well. Office
9151
Sunset Blvd., Los Angeles 46, Calif. Underwriter—U. S.
Corporation Co., Jersey City, N. J.
—

State

July 9
stock

Life, Health & Accident Insurance Co.
(letter of notification) 50,000 shares of common
(par $1). Price—$5 per share. Proceeds—To be

invested in stocks and bonds and to
acquire other life
insurance companies. Address—P. O. Box
678, Gulfport,
Miss.
Underwriter—Gates, Carter & Co., Gulfport, Miss.

Strategic Minerals Corp. of America, Dallas, Tom
$2,000,000 of first lien mortgage 6% bondi
975,000 shares of common stock (par 10 cents). Prica
—For bonds, 95% of princir>al
amount; and for stock $3
March 31 filed

and

per

share.

Proceeds—To erect and operate

one or mora

chemical

processing plants using the Bruce - Williama
Process to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc.. Austin, Texas.

Strouse, Inc.
July 29 (letter of notification) 26,850 shares of

common

stock

(par 10 cents) to be issued upon exercise of war¬
Price—$1 per share. Office—Main & Astor Sts.,
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc.,

rants.

Philadelphia, Pa.
Suburban Gas Service Inc. (9/16)
Aug. 18 filed 100,000 shares of common stock (par $1),
of which 50,000 shares are to be offered
by the company
and 50,000 shares by
selling stockholders. Price—To be
supplied by amendment. Proceeds—Together with other
funds, for retirement of bank loan and of obligations

incurred in connection with minor acquisitions and for
purchase of fixed assets of Redi-Gas Co.; the bal¬

the

ance,

Industries

500,000 shares of common stock, class B.
share.
Proceeds—To manufacture on a
an

St. Regis Paper
Co., New York
July 8 filed 118,746 shares of common stock
(par $5)
being offered in exchange for outstanding shares of
capi¬

stock

★ Oak Ridge, Inc.
Underwriter—None.
Sept. 4 (letter of notification) 100,000 shares of common»
Public Service Co. of Indiana, Inc.
(9/17)
stock (par $1). Price
$3 per share.' Proceeds— For ».
Aug. 27 filed 242,826 shares of cumulative convertible
working capital.
Office—11 Flamingo
preferred stock (par $100) to be offered for subscription
Plaza, Hialeah,
Fla.
Underwriter—Henry & Associates, frie.y Hialeah,
by common stockholders of record Sept. 16, 1958 on the
Fla. "

Rocky Mountain Quarter Racing Association
31, 1957 (letter of notification) 300,000 shares of:
stock. Price—At par ($1 per
share). Proceeds'
—To
repay outstanding indebtedness.
Office—Littleton,
Colo.
Underwriter—R. B. Ford Co., Windover
Road,
Memphis, Tenn.
Oct.

common

Aug.

★ Preferred Risk Life Insurance Co.
Sept. 8 filed 250,000 shares of common stock
(par $1).
Price—$4 per share. Proceeds—To increase capital and
surplus.

loans by stockholders
Office—98 Exchange St.,

economy.

and

new

Aug. 7 filed 400,000 shares of common stock
(par one
cent). Price—$1.50 per share. Proceeds—To pay current

per

repay

None.

Greenfield

—

Pro¬

inces

(par 10 cents).
Price—$1 per share. Proceeds—
For acquisition of additional gas and oil interests and
corporate administrative expenses.
Office—150 Broad¬

38, N. Y.

held; unsubscribed shares
holders

None.

tal stock of Growers

500,000

to

stock

way, New York

one

working capital.
Office—27
St., Binghamcon, N. Y. Underwriter—None.

($1

share). Proceeds—To pay off obligations and
telephone plant construction. Underwriter—None.

defer

ment; the enlargement of the research and development
facilities of the
company; patent and patent applications;,
public relations, and for working capital. Underwriter—-

•

Proceeds—For

common

per

(EDT)

to

Price—At market.

stockholders at the rate of

share

debenture

Co.

offered to

a.m.

decided

(letter of notification) 30,250 shares of com¬
stock (par $5) to be offered for
subscription by

mon

stockholders at the ratio

notification) 207,143 shares of

to be

to 11

25

common

'/

stock

up

Aug. 22

on

shares of capital stock (par $1).
ceeds—For investment.

each

1, 1979, to be used for construction program and working
capital. Office—Fayetteville, N. C. Underwriter-r-KidNorth Carolina Telephone
June 19 (letter of

company

Policy Advancing Corp.

stock

:v' ''/"••'

but

pending improvement in market conditions.

viarcn

due Aug.

der, Feabody & Co., New York..

27

★ Philadelphia Fund, Inc., Philadelphia, Pa.
Sept. 5 filed
(by amendment)
an
additional

North Carolina

tures

Aug.

sale

Management Co., Colorado

first mort¬

Lehman

l^ad been expected to be received

■

5%

bonds due 1987. Underwriter—To be determined
by competitive bidding. Probable bidders;
Halsey, Stuart
& Co. Inc.; Kidder,
Peabody & Co.; White Weld & Co.;
Equitable Securities Corp., and Shields & Co.

gage

★ New London Co.

talization of the finance
company and mortgage loan
company. Office—814 South Tejon St., Colorado
Springs,
Colo. Underwriter—El Paso

of

35

if

will

be

capital to be
Office—Up¬
land, Calif. Underwriter—Kidder, Peabody & Co., New
available

any,

for

general

added

to

working

corporate purposes.

York*

Continued

on

page

36

The Commercial and Financial Chronicle

(1036)

36

outstanding short-term bank loans

35

Continued from page
Sumpter Oil & Gas

Co., Inc.

of notification) 200,000 shares ol common
stock (par 10 cents). Price—$1.50 per share. Proceeds
For development, exploration and operation of an oil
and gas lease.
Office — 8400 Wisconsin Ave., N. W.
2 (letter

Sept

1957 filed 40,000 shares of common stock (public
offering of 500,000 shares now planned). Price—$25 per

Transmission Co. (9 16)
filed $50,000,000 of first mortgage pipe line

Au*. 20

bonds

Price—To be supplied by amendment.
and for expansion pro¬
Underwriters—Stone & Webster Securities Corp.,
Weld & Co., and Halsey, Stuart & Co. Inc., all of

Twentieth Century Investors Plan,

Proceeds—To repav bank loans
gram.

capital stock (par 25
amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada only.

Thiokol

I

Chemical

$1) to

Aug. 22 filed 113,500 shares of capital stock (par
be offered about Sept. 17 for subscription by stockhold¬

share for each 12 shares

the rate of one new

ers ac

held

To t)e supplied by
company's
general funds and be available for general corporate
purposes, including expansion of facilities principally
at its Utah Division. Underwriter—Kidder, Peabody &
(with

Price

14-day standby).

a

—

Proceeds—To be added to the

amendment.

Co., New York.
Thomas Paint

Products Co.

May 26 (letter of notification) 1,250 shares of common
stock (par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
share of stock and $50 principal amount of debenture#
to be offered to stockholders on the basis of one unit for
each two shares of stock owned (500 of the shares are

President of the company). Price—
Proceeds—For working capital. Office—
St., S. W., Atlanta, Ga. Underwriter—

being offered to the

$60 per unit.
Whitehall

543

None.

Timeplan Finance Corp.

(letter of notification) 27,272 shares

March 25

cumulative preferred stock

of 70-cent

(par $5) and 27,272 share#

unit#
of one
unit
Proceeds
For working capital.
Office — 111 E. Mali
St., Morristown, Tenn. Underwriter—Valley Securitiei
(par 10 cents) to be offered in
share to each class of stock. Price—$11 per

of

common

stock

—

Corp., Morristown, Tenn.

Utah
April 15 filed 220,000 shares of common stock, of whicl
200,000 shares are to be publicly offered. Price—$5 pe:
Tip Top Oil & Gas Co., Salt Lakei City,

Proceeds—To drill two new wells and for

6hare.

corporate
&
...

Underwriter

purposes.

—

genera]

Andersen-Randolph

Co., Inc., Salt Lake City, Utah.
Trans-America

Uranium Mining Corp.

shares of common stock (pai
mill). Price—25 cents per share. Proceeds—For land

acquisition, exploratory work, working capital, reserve*
and

other corporate purposes.

fred

E.

Underwriter—None.

of Waterloo, la.,

Owens

Al¬

is President.

Montreal, Canada
capital stock (par $1) to
be issued upon exercise of options exercisable at $4 per
share.
Proceeds—To pay outstanding liabilities, to in¬
crease working capital and for general corporate pur¬
Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5)
Price
$10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, includini
office furniture, fixtures, equipment and office space, by
lease or purchase. Office — Wilmington, Del.
Under¬
writer—None.
Myrl L. McKee of Portland, Ore., If
United

—$4

per

Proceeds—For drilling for oil and gai
Street, Coudersport, Pa. Under¬

share.

Main

N.

writer—None.
Treasure Hunters,

—

President.

ic United Funds, Inc., Kansas City, Mo.
Sept. 8 filed (by amendment) $15,000,000 of periodic
investment plans without insurance and $3,000,000 of
plans with insurance.

Proceeds—For research pro¬

gram, exploration, and it is hoped, recovery
and sunken treasure and exploitation of lost
mineral

other

deposits.

Brooklyn 26, N. Y.

Office—130

East

Aug. 8 (letter of notification) 410 shares of capital stock
(par $20) being offered for subscription by stockholders
of record Aug. 29, 1958 on the basis of one new share for
each 10 shares held (with an oversubscription privilege);
rights to expire Sept. 30, 1953. Price — $375 per share.
Proceeds—For operating a life insurance and a sickness

of buried

mines and
18th Street,

Daniel Stack is President.

Under¬

Tricon, Inc.

instalment purchase contract for land and im¬

provements; for construction of plant, tools and equip¬
ment; advertising and working capital. Office — 540
Steamboat Rd., Greenwich, Conn. Underwriter—Sano &
Co., New York, N. Y.
Triton Corp., Newark, N. J.
Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4.000
aha res of 6%
preferred stock (par $100) and 48^000

shares of

common

stock

(par $1) to be offered in units

of $8,000 of

debentures, 20 shares of preferred stock and
240 shares of common stock.
Price—$10,240 per unit.
Proceeds—To acquire, own and operate interests in pro¬
ducing oil and gas properties. Underwriter—None. Of¬
fice—11 Commerce Street, Newark, N. J.
Timothy H.
Dunn
•

is

President.

Tropical Gas Co., Inc., Miami, Fla.

(9/16)

Aug. 22 filed 25,544 shares of convertible preferred stock

(par

$100)

to

stockholders
one

preferred

be offered for subscription by common
record
Sept. 9, 1958, at the rate of
share for each 27 shares held; rights to

of

Price—To be supplied by amend¬
ment. Proceeds—To acquire the capital stock of South¬
eastern Natural Gas Corp., for payment of the company's
expire about Sept. 30.




company.
Office—2 White St.,
Underwriter—None.

insurance

Concord, N. H

United Security Life

& Accident Insurance Co.

Aug. 22 filed 120,000 shares of class A common stock.
Price—$3 per share. Proceeds—To provide the reserves

required to be held in life and accident insurance poli¬
cies, and to pay the necessary expenses in producing
insurance. Office—Louisville, Ky.
Underwriter—None.
Edmond M.

Smith, is President.

/

Land Development

Corp.
Aug. 15 filed 1,200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
added to the company's general funds and used to de¬

11,1958

the balance together

with further

borrowings under a bank agreement and cash generated
the business will be used to carry forward the con¬

struction

of the company

program

and its subsidiaries

amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined by competi¬

Halsey, Stuart & Co.
Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co., and
Smith, Barney & Co. (jointly). Bids—Were to have been
received in Room 2033, 2 Rector Street,
New York,
N. Y., up to noon (EDT) on Sept. 9, but were postponed
tive

Probable bidders:

bidding.

Inc.; First Boston Corp. and

Sept. 3.

/;

"

Inc. (10/1)
of capital stock (par $1).
Price—$12 per share. Proceeds—For investment. Under¬
writers—Kidder, Peabody & Co., Bache & Co,? Reynolds
& Co. Inc. and Dean Witter & Co., all of New York.
Wellington Equity Fund,

Aug. 29 filed 2.000,000 shares

WeaverviHe,
*
"
June 6 filed 89,391 shares of common stock to be of¬
fered for subscription by holders of outstanding com¬
mon stock at the rate of one new share for each three
shares held. The record date is to be supplied by amend¬
ment.
Price—At par ($5 per share). Proceeds—To be
applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction and conversion program. Underwriter—None.
Western Carolina Telephone Co.,

N. Car.

...f

■■

Western Heritage

Life Insurance Co-

150,000 shares of common
Price—$2 per share. Pro¬
expense incidental to operating an insurance
Office—533 East McDowell Rd.» Phoenix,

Aug. 8 (letter of notification)
capital stock (par,50 cents).
ceeds—For

company.
Ariz.
Underwriter—First

American Investment Corp.

Industrial Shares, Inc., Denver,

Western

Colo.

July 16 filed 1,000,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For investment.
Underwriter
Main St.,

—

Andersen, Randolph &

Co., Inc., 65 So.

Salt Lake City, Utah.

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
rate of one new share for each four shares held and ona
additional shares for the balance of such holdings in
excess of the number of shares divisible by four; also
to be offered holders of outstanding 5%
subordinated
debentures of record March 24 at rate of five shares for
each $1,000 of debentures then
share.
Proceeds—For working

held. Price — $60 per
capital. Underwriter—

None.

System, Inc.

Wilier Color Television

April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 share§

Proceeds — For
Office—151 Adell Avenue^,

publicly offered at $3 each.

to be

are

general corporate purposes.

Yonkers, N. Y. Underwriter
Broadway, New York 6, N. Y.
•

Wisconsin

—

Edwin Jefferson, 39
(9/24)

Electric Power Co.

Sept. 3 filed 510,005 shares of common stock (par $10)
to be offered for subscription by holders of outstanding
common at the rate of one new share for each 10 shares
held

as

of

privilege).
ceeds—For

Sept.

24,

(with

1958

an

oversubscription

Price—To be supplied by amendment. Pro¬
capital expenditures. Underwriter—None.

velop Pineda Island near Mobile, Ala.
Office —For
Lauderdale, Fla. Underwriter—Palm Beach Investment

Prospective Offerings

Palm Beach, Fla.

United States Telemail Service, Inc.

375,000 shares of common stock (par $1)
Price—$4 per share. Proceeds—To purchase equipment
and supplies and for working capital and other corporat#
Feb.

filed

17

purposes.

Office—Salt Lake City, Utah.
New York.

Underwriter-

Amos Treat & Co., Inc., of

Sept.

1,

Co.

Steel

,

March 21 it was announced

that the company plans addi¬
the form of common stock,

tional financing this year, in

preferred stock, or a combination of the two, including
loans.
Proceeds—For expansion program, work¬
ing capital and

Price—To be supplied by amendment.
$10,300,000 of bank loans and for
Underwriter—A. G. Becker & Co.,

1978.

Proceeds—To

Acme

bank

Aug. 5 filed $22,500,000 of sinking fund debentures due

Inc.
•

and

inventories. Underwriters—Blyth & Co.,
& Smith.

Merrill Lynch. Pierce. Fenner

Addressograph-Multigraph Corp.

(10/8)

construction program.

Sept. 9 it was announced company plans to offer to its
common stockholders of record about Oct. 7, 1958, the

Inc., Chicago, 111., and New York, N. Y. Offering —
Temporarily deferred due to present market conditions.

right to subscribe for 141,113 additional shares
mon
stock on the basis of one new share for

Universal

Aug. 8 (letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pay
expenses and cost of plant option; for first year's pay¬
on

accident

and

writer—None.

ment

Proceeds—For investment.

United Life & Accident Insurance Co.

Universal-Cyclops Steel Corp.

Inc., Washington, D. C.

Aug. 14 filed 1.946,499 shares of common stock (par one
cent). Price—$1 per share.

Employees

Co., Inc., 308 South County Road,

(letter of notification) 7,500 shares of commor
stock (par $1) to be offered pro-rata to stockholders or
the basis of one new share for 10 shares owned.
Prict
27

Office—203

Underwriter—None.

poses.

Trans-Eastern Petroleum Inc.
Feb.

bank borrowings, and

July 29 filed 225,000 shares of

U. S.

Nov. 6, 1957 filed 3,000,000
one

it Union Bag-Camp Paper Corp., N. Y.
Sept. 5 filed 380,000 shares of capital stock (par $6.66%)
to be offered to such executive officers as have been
or
may in the future be granted options pursuant to
the company's Stock Option Plan.
United Asbestos Corp., Ltd.,

(9/17)

Corp.

City, Mo.

& Co., Kansas

Stowers

Texas

April 30 filed 2,000,000 shares of
cents). Price—To be supplied by

•

$10,000,000 of plans for the accumulation
Twentieth Century Investors, Inc. Price—At
Proceeds — For investment.
Underwriter—

filed

June 20

of shares of

market.

Calgary Co., Abilene,

Kansas City,

Mo.

White,
New York.
Texas

maiuet.

Price—At

Thursday, September

in

on

of common stock (par $1)
Proceeds—For investment. Underwriter—-Stowers & Co., Kansas City, Mo.
June 20 filed 2 000,000 shares

1, 1979.

due Jan.

Kansas City,

Mo.

Gas

Tennessee

11

Twentieth Century Investors, Inc.,

Nashville, Tenn.

pending passing of necessary

up
•

Underwriter—Equit¬
Offering—Held
legislation by Congress.

Proceeds—For investment.

Securities Corp.,

able

Co.

(letter of notification) 100,000 shares of com¬
mon stock
(par $1). Price—$1.50 per share. Proceeds—
To extinguish present indebtedness, increase reserve for
contingencies and working capital. Office—511 Securi¬
ties Bldg., Seattle 1, Wash.
Underwriter—H. P. Pratt
& Co., 807 Hoge Bldg., Seattle 4, Wash.

June 20,

share.

..

Tungsten Mountain Mining
Aug.

D. C.

Inc., Washington,

Exempt Bond Fund,

Tax

New York.

Underwriter—None.

Bethesda, Md.

and short-term notes

payable to suppliers, to the repurchase of notes receiv¬
able currently discounted, and the balance for general
corporate -purposes. Underwriter—Glore, Forgan & Co.,

...

|

.

repay

Oil

Recovery Corp., Chicago, III.

June 4 filed 37,500 shares of class A common stock. Price
—$4 per share. Proceeds—For exploration and develop¬

properties, and the balance for other corporate
purposes. Underwriter—None.
ment of

Uranium Corp. of America, Portland, Ora.
April 30,1957 filed 1,250,000 shares of common stock(par
16 cents).
Price—To be supplied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.
Graham Albert Griswold of Portland, Ore., is Pres¬

ident.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—305 Main St., Park City,
Utah.
Underwriter—Walter Sondrup & Co., Salt Lak«
City, Utah.
stock.

Utah Oil Co. of New

York, Inc.
May 6 (letter of notification) 300,000 shares of capital
stock. Price
At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
—

•

Utah

June
1988.
gage

26

& Light Co.
$20,000,000 of first mortgage bonds due

Power

filed

Proceeds—To

redeem

$15,000,000

of

first

each 20

rights to expire on or about Oct. 22, 1958.
Price—To be determined later. Proceeds—For general
corporate purposes.
New York.

• Arabol

mort¬

bonds, 5Vi% series due 1987, to repay $4,000,000 of

Underwriter—Smith, Barney & Co.,

Registration—Scheduled for about Sept. 17.

Manufacturing Co., N. Y.

Sept. 9 it was announced that

(10/9)

bids will be received at

of Justice, Office of Alien Property,
Room 664, 101 Indiana 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,
515.6 shares of: common capital stock (par $100)
and
210 shares of 6% cumulative preferred capital stock (par

the

Department

$100)

Utah Minerals Co.

April 11
mon

of com¬

shares held;

of this company.

Austria

(Republic of)

July 15 it was announced that the country contemplates
the issuance and sale of $30,000,000 bonds. Proceeds—For
electric power projects and

other improvements. Under¬

New York.
early November.

writer—May be Kuhn, Loeb & Co.,

ing—Expected in October or

Offer¬

it Bank of New York
Sept. 9 it was announced stockholders will
30 on increasing the capital stock by 110,000

vote Sept.

shares to a
Following approval, it is pro¬
posed to issue 80,000 shares as a 50% stock dividend
and offer to stockholders the right to subscribe for the
remaining 30,000 shares in the ratio of one new share
for each eight shares held after giving effect to the stock
distribution. Price—To be determined by trustees at a

total

of

270,000 shares.

>

Volume

-iL,Wht w«MtU trcwt m

Number

188

5776

The Commercial unci Financial Chronicle

(1037)
later

date.

Proceeds—To

increase

capital

and

surplus.

Underwriter—Morgan Stanley & Co., New York.
California

July 14 it
keting

Electric

determined.
not

the

of

securities to be offered has been
these two points will probably

Decision

be reached

Proceeds—To

Power Co.

company contemplates mar¬
85,000,000 and $7,000,000 securities in
Neither the exact date of the offering

1953.

the nature

on

until

mid-August
bank

repay

late

expected

ing later in

announced

was

between

October,
nor

Co., all of New York.

or

early

September.

Great Atlantic & Pacific Tea Co.

Feb. 19 it

was

Hadley Corp.

shares

of 5% cumulative convertible preferred stock
(par $10). Convertible into common stock at the rate
of $2.86 per share. Proceeds—To retire
outstanding notes
of a subsidiary in the amount of
$768,000.
'

Central

Louisiana

Electric

Co.,

Inc.
company's financing
program for the year 1958 anticipates the sale of both
debt and equity securities (probably
preferred stock)
aggregating approximately $5,000,000. Both issues may
be placed privately.
March 28 it

was

announced that the

Cincinnati & Suburban Bell Telephone
Co. (10/21)

July 7 it
ized

having

announced that the directors have author¬

was

the

sale

of

not

exceeding $25,000,000

maturity of not

a

debentures
than 35 years. Proceeds

more

—To repay advances received from American
Telephone
Telegraph Co. which owns 29% of the outstanding
stock

of

the

Underwriter — To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Glore.
Forgan & Co. and Eastman Dillon Jnion Securities &
Co. (jointly). Bids—Expected to be r«'^:.ved on or about
company.

determined

Oct.

21.

Aug. 25 it

was reported that the company may issue and
$25,000,000 of preferred stock. Underwriters—May
be The First Boston Corp. and Glore Forgan &
Co., both
of New York. Offering—Expected late in 1958 or
during

the first three months .of 1959,.

v

'

Petroleum

Co.

Aug.

18 "it was reported that the stockholders are to
Sept. 15 on approving a proposed- offering of
$10,000,000 20-year convertible subordinated debentures.
vote

Underwriter—Dillon. Read & Co., Inc., New York.
Denmark

Sept. 2 it

(Kingdom of)
reported that

was

$30,000,000

may

market this year.

can

and

$18,000,000 of first mortgage

will

vote

an

issue of between $20,000on the Ameri-.

possibly be placed

associated

companies, with subscirptions to be
accepted from Oct. 13 through Oct. 31, 1958. Price—To
be announced on Oct. 1.

Duffy-Mott Co.
Sept. 2 it was reported that a common stock offering is
planned, partly for selling stockholders. Business—A
leading processor off "Sunsweet"
prune
juice, and
"Clapp" baby foods. Underwriter—Kidder, Peabody &
Co., New York.
Equitable Gas Co.
July 18 it was announced that the

company expects later
in the year to issue and sell additional
securities, prob¬

ably preferred stock, to

approximately $5,000,000
of additional funds. Proceeds—Together with
$7,000,000
from private sale of 4J/2%
bonds, to repay short-term

holders
W.

bank loans and for construction
program.

Underwriter!

Weld & Co., all of New York.
Florida Power & Light Co.
Aug. 20, McGregor Smith, Chairman, announced that the
company plans the sale of 300,000 shares of new common
stock.

Proceeds—To finance construction program. Un¬
derwriters—May be Merrill Lynch, Pierce, Fenner &
Smith and Kidder, Peabody & Co., both of New York.
Offering—Expected in October.
Service Co.

March 24 it

unsubscribed

Scranton &

term

and

reported that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬
cision as yet has been made as to the
procedure the com¬
pany will follow.' Proceeds—For repayment of shortnotes

Underwriter

loans
If

and

for

construction

program.

determined

by competitive bidding,
probable bidders may bev Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner &
Smith, and White,
Weld & Co. (jointly); Blyth & Co.,
Inc.; The First Boston
Corp.; Lehman Brothers.
General

7

—

Public

if approved,

and

to

approved
connection with

Co.

Co.,

&

common

Co. for any

preferred

stock

common stock¬

was

sold

Previous bond issues
.

stockholders

offer certain shares

on

(on

a

the

same terms to
employees, in¬
cluding officers, of System companies. Clearing Agent—
Merrill Lynch, Pierce, Fenner &
Smith, New York. Of¬
fering—Expected late in November.

Grace Line

Company plans
government

Inc.

to

insured

stockholders.

were

ship mortgages

on

approximately $18,000,000 of

bonds

the

new

The

secured

"Santa

by

first

Rosa"

preferred

and

"Santa

financing will comprise two issues of $9,Underwriters—Merrill Lynch, Pierce, Fen¬
Smith; Paine, Webber, Jackson & Curtis: Smith,
Barney & Co.; White, Weld & Co.; and F. Eberstadt &

000,000 each.
and




Chas.

placed

Proceeds—For

expansion. Underwriter—
Glore, Forgan & Co., New York.
Offering — Expected

sometime in October

Idaho

November.

or

Power Co.

Sept. 2 it

;

—To

be

was

determined

by

competitive

bidding.

Probable

bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc., Lazard Freres & Co. and The First Boston
Corp.

(jointly);

Lynch, Pierce, Fenner & Smith; Salomon Bros.
and Eastman
Dillon, Union Securities & Co.
(jointly); Equitable Securities Corp.; Kidder, Peabody
& Co., and White, Weld & Co.
(jointly). Bids—Expected
Hutzler

to

be

received

Oct.

on

14.

Indiana & Michigan Electric Co.
(11/6)
Aug. 26 it was announced that the company plans early
registration of $20,000,000 first mortgage bonds due 1988.

Proceeds—To

retire

bank

loans

program.
Underwriter—To be
tive bidding. Probable bidders:

used

for

construction

determined

by competi¬
Halser, Stuart & Co. Inc.;
Eastman Dillon, Union Securities &
Co.; The First Bos¬
ton Corp.; Harriman
Ripley & Co. Inc. Bids—Expected
to be received up to 11 a.m.
(EST) on Nov. 6. Registra¬
tion—Planned for around

JapanJ(Empire
and

was

Sept. 24.

stated that

American

York.

an

issue of between $30,000,000

may

soon

be publicly offered

market.

mid-year,
late 1958

but which

sale

early 1959.

or

construction

program.

may now be deferred until
Proceeds—About $8,000,000 for
Underwriter—To be determined

competitive

bidding. ( Probable bidders: Halsey,
Inc.; Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and

Stuart

&

Co.

Stone & Webster Securities
gan

4%%

debentures

Corp. (jointly); Glore, For¬

& Co., and Goldman Sachs & Co. (jointly).

Kansas

Power

&

due

November, 1992. Underwriter
by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.
Bids—Had been tentatively scheduled to be re¬
ceived on Sept.
16, but on Aug. 26 it was voted to post¬
be

determined

bidders:

this refunding program because of
present market

pone

conditions.

-

Midland

Enterprises, Inc.

March 28, company announced it
plans to issue on or
before Dec. 31, 1958
$3,200,000 of first preferred mort¬
gage bonds.
May be placed privately. Proceeds — To
repay bank loans and for working
capital.

Midwestern Gas Transmission Co.
March

24

it

announced
that this subsidiary of
Tennessee Gas Transmission Co. has
applied to the Fed¬
Power Commission for permission to issue
first
mortgage bonds, unsecured notes and common stock.
Proceeds—To build pipe line system to cost about
was

eral

006,000.

Underwriters

$111,-

—

Stone

&

Webster

Securities

Corp. and White Weld & Co., both of New York.
Montana-Dakota Utilities Co.
March 24 it

was announced the
company plans to issue
(about $10,000,000) in the latter part of this year
early 1959. Proceeds
To repay bank loans.
Underwriter—To be determined
by competitive

bonds
in

or

-—

Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Smith and
Kidder,

Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
Moore-McCormack Lines, Inc.

March 24 it

was announced
company plans to issue and
$24,000,000 of government insured bonds secured by
first preferred ship mortgage on the
liners S. S. Brasil
and S. S. Argentina.

sell
a

Underwriters—Kuhn, Loeb & Co.
and Lehman
Brothers, both of New York.
Offering —
Postponed because of uncertain market conditions;
New

York

March 7 it

State

was

Electric and

announced

Gas Co.

that approximately $7,500,000

from additional financing will be
required for construc¬
tion expenditures for the balance
of this year. The man¬
agement intends to negotiate a new line of

credit with a
equity securities later
1959, depending upon prevailing
market conditions. Underwriter—For
any common stock:
The First Boston
Corp., New York.

group of banks and expects to sell

this

year

in

or

early

(10/9) (11/13) (12/18)
be received this Fall
by the company for the
purchase from it of $19,200,000 equipment trust certifi¬
cates due from l-to-15
years, viz: Oct. 9, $7,440,000; Nov.
13, $5,310,000; and Dec. 18, $6,450,000. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler. !
.

Northern

Kansas Gas & Electric Co.
March 31, G. W. Evans,
Chairman, announced that com¬
pany plans to sell some bonds originally scheduled for

by

of

—To

* Norfolk & Western Ry.

Proceeds—For public works
Underwriter—The First Boston Corp., New

projects, etc.

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds—To redeem a like amount

Bids will

of)

$50,000,000 of bonds
the

on

June

Light Co.

10

it

Illinois

was

Gas Co.

announced

company

will sell late

this

$10,000,000 mortgage bonds. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co Inc.; First Boston Corp.; Glore,
Forgan & Co.; Blyth & Co., Inc.
year

Pacific Gas & Electric Co.
20 it was reported
company

March

undetermined

amount

plans sale of an
preferred stock

of bonds and/or

in the latter part of this year or
early 1959. Underwriter
—(1) For bonds to be determined by competitive bid¬

ding.

Probable bidlers: The First Boston Corp.; Halsey,
Co. Inc.; Blyth & Co., Inc.; (2) For preferred
Blyth & Co., Inc.
r

Stuart &
stock:

,

Feb.

14 it was announced company
plans to issue and
$10,000,000 of first mortgage bonds due 1988. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Equitable Securities
Corp.

sell

Kentucky Utilities Co.
June
mon

16 company stated it will sell bonds and/or com¬
stock in the last quarter of 1958.
Underwriters—

For any

common

stock:

Hilliard

&

For

Son.

competitive bidding.

Blyth & Co., Inc. and J. J. B.

any

bonds, to be determined by

Probable bidders: Halsey, Stuart &

Inc.;

Eastman Dillon, Union Securities & Co. and
Lynch, Pierce, Fenner & Smith, (jointly); Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
MerriJl

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.
(10/7)

Aug. 25 it was reported that the company plans the sale
of $11,000,000 first mortgage bonds due 1988.
Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Inc.; The Milwaukee
Co., and Dean Witter & Co. (jointly); The First Boston
Corp.; Equitable Securities Corp.; Merrill Lynch, Pierce,
Fenner & Smith; Otis &
Co., Inc.; Smith, Barney & Co.
Robert

Union
and
on

W.

Baird

&

Securities & Co.

sell

an

Co. (jointly); Eastman Dillon,
Bids—Expected to be received

undetermined

amount

of

first

mortgage

Oct. 7.

Master Fund, Inc.,
Fairfield, Calif.
Jan. 27

it

announced this newly organized invest¬
to offer to bona fide residents of
California 10,003 shares of capital stock
(par $1). Price
ment

*

bidding.

(10/14)

reported that the company plans to issue
and sell $15,000,000 of first
mortgage bonds. Underwriter

and

issue

to

...

Madison Gas & Electric Co.

plan authorizing the
an
offering of common
l-for-20 basis), also to
a

the

iP. U.
Chas. W.

Heublein, Inc.

Utilities Corp.

stockholders

directors,- in

Paula."

(par $50);

Stockholders

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which
100,000 shares are to be sold for the account of selling

Co.

was

ner

proposal

bonds.

rights offering to

privately.

secure

—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White,

stock

the

on

Under previous

Aug. 20 it

April

6

Scranton & Co. and Estabrook
stock.

Underwriter—Kuhn, Loeb & Co.,

ic Dow Chemical Co. (10/13)
Sept. 9 it was announced the directors have authorized
an offering of
175,000 additional shares of common stock
to employees of company and of its subsidiaries and cer¬

Gas

Oct.

company will seek authorization of the Connecticut
Commission.
Underwriter — Putnam &•

New York.

tain

Electric Co.

for-10 basis; 100,000 shares of
preferred stock

&

sell

Cosden

common

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 1-

Merrill

Commonwealth Edison Co.

000 to

secondary offering of

a

voting stock is expected in near future. UnderwritersMay include: Blyth & Co., Inc.; Carl M. Loeb, Rhoades
& Co.; Hemphill, Noyes &
Co.;* Smith, Barney & Co.;
and Merrill Lynch. Pierce, Fenner & Smith,
;

&

common

reported

loans.

The shareholders of the company at a
special meeting
held on June 25, approved an amendment to the certi¬
ficate of incorporation authorizing an issue of
200,000

—$10 per shar ,y less an underwriting discount of 8^%.
Proceeds—For investment.

year.

Hartford

Central

Offerings—"Santa Rosa" offering
September and "Santa Paula" offer¬

in

37

was

company Wans

Pacific

Telephone & Telegraph Co. (11/18)
Aug. 22 it was announced company plans to issue and
sell $80,000,000 of 32-year debentures due Nov.
1, 1990.
Proceeds—For

construction

program.
Underwriter—To
by competitive bidding. Probable bid¬
ders: Halsey, Styart & Co.
Inc.; Morgan Stanley & Co.
Bids—Expected to be received on Nov. 18.
be

determined

Pacific

Telephone & Telegraph Co.
was reported company plans to offer to its
preferred stockholders 1,594,604 additional

Aug. 22 it
common

and

shares of

common stock on the basis of one new share
each eight common or preferred shares held.
Price
—At par ($100 per share). Proceeds—To
repay advances
and to reimburse the treasury for

for

capital expenditures
previously made. Underwriter—None. Control—Of the
832,000 shares of 6% preferred stock (par $100) and 11,936,835 shares of common stock (par $100) outstanding
of Dec. 31, 1957, there were owned
by the American
Telephone & Telegraph Co. 640,957 preferred shares and

as

10,790,943

common

Panama

shares.

(Republic of)

July 14 it

was announced a public offering is expected
approximately $26,000,000 external bonds. Proceeds—
To redeem certain
outstanding debt and for Panama's

of

feeder

roajl

program.

Underwriter—Lehman

Brothers,

New York.

Pauley Petroleums, Inc.
Sept. 2 it was reported that the company plans early
registration of 500,000 shares of common stock. Under¬
writer

—

William

R.

Staats

Registration—Scheduled

for

&

Co., Los Angeles, Calif.
Sept. 17. Offering

around

—Expected in mid-October.

Peoples Gas Light & Coke Co.
Aug. 1 the directors approved a program for the offer¬
ing of approximately $17,000,000 of additional capital
stock to stockholders in October. Underwriters—Glore,
Forgan & Co. and The First Boston Corp., both of New
York.

Continued

on

page

39

-

%

Financial Chronicle

The Commercial and

38

..

Thursday, September 11,1958

.

(1038)

The following

Indications of Current

latest week

week

Business Activity
(Latest
Week

AMERICAN IRON AND STfcEL INSTITUTE:
Indicated Steel operations (per cent capacity)

Revenue
Revenue

0,544,735

1:7,937,000

*7,892,000

7,727,000

8,327,000

28,200,000

*28,005,000

28,693,000

29,51b,uU0

1,978,000

1,791,000
12,004,000
0,710,000

1,708.000

1,871.000

033,087

022,204

745,620

525,245

505,022

624,697

Electric output (in

$284,377,000
71,509,000

$397,801,000

$513,900,000

195,490,000

212,555,000

202,311,000

301,405.000

205,916,000

172,312,000

175,705.000

242,108.000

181.860.000

40,490,000

20,000,000

59,237,000

'

-

(per gross ton)

'<;pt.
INDUSTRIAL)

—

'el)l

——

-Sept.

—

577,000

134

114

12,025,000

6

12,272,000

12,707,000

144

•

ami

246

290

C.188c

6.188c

6.138c

5.967c

191

4

$50.17

3

26.000c

26.100c

26.150c

26.575c

Wholesale

25.050c

24.925c

25.425c

24.825c

Retail

Iept.
Iept.

3

other

All

number

number

14.000c

10.550c

10.800c

13.800c

Commercial

10.500c

3

10.000c

10.000c

10.000c

10.000c

24.700c

24.700c

24,498c

26.000c

95.125c

94.625c

95.500c

92.875c

89.02

88.39

91.08

Total

91.62

93.82

number

95.16

96.23

98.88

94.41

93.38

94.56

96.69

92.35

90.06

91.62

93.52

90.06

84.30

84.94

86.91

83.53

88.81

89.09

90.20

90.34

91.48

94.12

97.31

91.48

(tons)

Crushed

3.55

3.30

3.57

4.37

4.30

4.15

4.42

Stocks

3.99

3.82

4.11

Produced

9

4.18

4.10

3.96

4.25

Shipped

4.41

4.30

4.17

4.41

Refined
Stocks

Produced

4.42

4.23

4.09

3.92

4.31

9

392.3

393.4

403.9

417.1

'

339,845

275,008

299,431

265,643

307,590

293,915

299,148

Cake

92

93

407,334

419,411

465,523

109.81

108.68

1,920,830

2,592.340

2,178.690

494,010

479,370

1,773,920

1.008,820

1,866,380

2,612,850

2,253,290

1,218,930

644,630
33,900

57,200
387,350

541,850

633,540

-Aug. 16

618,410

845,290

224,565

\ug. 16

119,710

135,890

154,420

892,010

677,041

Aug. 16

792,756

1,027,900

831,461

3,053,220

4,082,260

3,213,720

Aug. 16

503,520

663,800

690,990

2,697,466

3,610,490

2,838,311

4,274,290

3,529,301

1.903,800

sales by dealers

Aug. 16

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

$154,312,556

$62,830,596

Customers'

short

1,258,228

other

Aug. 16

1,366,950
15,196

1,566,651

of

Short

shares—Total

sales

$69,512,553
538,510

492,770

192,780

sales

Aug. 16

434~350

538,510

492~770

Aug. 16

381,420

452,750

413,290

562,090

of

shares

ROUND-LOT STOCK

ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR

>

Total

SALES

ACCOUNT OF MEMBERS
round-lot

—

of

sales

of figures

customers

ultimate

(E.

&

M.

'

J.

Louis

£71.853

(per long ton )___„•_

(per long ton)

Gold

(per

(per

88.625c

ounce).

ounce)

;—

—

OF

78.750d

$2.78274

94.933c

$35,000

$230,038

32.590c

22.590c

36.590c*.

29.000c

29.006c

32.000c

29.500c

29 500c

33.500c

$61,000

362.385

$84,090

$1.55000

$1.55000

$1.55000

$1.55000

$1.55000

$1.55000

$2.00000

$2.00000
26.100c

28.086c

24.682c

24.000c

25.986C

35.25GC

35.250c

35.250c

74.000c

74.000c

$2.25

$2.25

$2.25

pound), bulK Laredo
pound), boxrd Laredo
(per ounce)

97%

(per

pound)__

,

i

—•

(per pound—ounce—ton)
grade ingot weighted average

grade

(per pound)
93.0

Sept.

foods

118.3

93.6

2

110.1
106.2

lhan

farm

and

foods

Sept.

2

110.2

125.9

111.9

106.4

112.1

125.9

-

126.1

107.3
'

Aluminum,

annual

grade primary pig
(per

pound)

'

>

•'•■Nickel

Bismuth

100.1

125.9

99%

Magnesium ingot

.

(per

pound)

———

$251,111

S1.700GG

v

•

$1.70900

;

*

,

$1.70000

-

$2.00000

*Revised figure.

tBased on the producers' quotation. IBased on the average of the
platers' quotations.
§Average of quotation on special shares to plater.
^Domestic* five tons or more but less than carload let boxed. §§Delivered where freight )
.

producers'

and

figure, ^Includes 1,120,000 barrels of foreign crude runs.
capacity of 140,742,570 tons
§Based on
as of Jan. 1, 1958, as against Jan. 1, 1957 basis of 133,459,150 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds

from East St. Louis exceeds 0.5c.

one-half cent

tflncrease all stocks.

new

.$35,000

$35,000

$237,769

74.000c

(per

Aluminum, 95%
119.2

-

94.218c >

94.957c

26.782c

(per

Cobalt,

92.5

90.909c'

75.000d
82 80398

(per ounce, U. S. price)—•

■"•Cadmium, refined

100):
113.7

•

88.625c

75.000c'

$2.80511

...

'

Commodity Group—
92.6

10.000c

Exchange-

York

New

London

10.000c

Louis—

(per pound)

118.7

£92.012 '

•

(per pound)

2

£72.959

£73.688 '

§ Cadmium

2

13.800c

£91.726

'

£64.274

Antimony

Sept.

10.800c
£71.484

10.656c

£70.384

:

14.000c'

11.000c

10.856c

pound)
(per pound)—_

£64.566

iCadmium




£210.631

*

j

423,260

pound.

£200.582

£206.056

10.500C

9,265,310

a

£208.613/

10.000c

8.842,050

commodities other

24.397c
£199.815

£73.893.

Antimony

_Sept.

25.694c

25.179c
£205.813

10.500c

936,610

products

28.098c

25.674c

26.088c

:

£63.598

16,334,950

commodities

£4,557,745'

10.500c

15,398,340

AD

55.432,513

£63.831

875,000

•Revised

45,613,472
$758,054,000

55,555,432

at June 30

pound)—East St.

(per

19,312,590

Processed

44,707,315

QUOTATION'S)—-

long ton)—

(per

18,437,590

AlJ

937

$763,006,000

(per

York

New

East St.

prompt

673,040

Farm

646

companies.

individual

45,746,221

pound)

(per

15,346,570

S. DEPT.

for

.

refinery

14,673,530

U.

382

$786,752,000

Aug. 16
—

532

of

!

of

1,418

customers—

omitted)

ultimate customers—month

Aug. 16

=

(a)

4,400

693

disclosure

ultimate

to

lOOO's

June

from

Platinum, refined

NEW SERi.ES

(a)
)

—

Aug. 16

(1947-49

482

(a)

(a)

4,018

—

Quicksilver (per flask of 76 oounds)
fAntimony, - New York, boxed—u

saxes—

PRICES,

467

(a)

INSTITUTE—

sales

—

43,568

pounds)—•

-

avoid

to

sales

LABOR

198,427 >

48,742

—

(1,000

etc.

Other

WHOLESALE

41,086 :

bulesj

Sterling Exchange (check)—
Tin, New York Straits

(SHARES):

sales

,

60,142

Short
Total

/

354,870

33,846

....

30—.-

Silver.

Round-lQt purchases by dealers—
Number

48,101

(a)

Silver,

192~780

TOTAL

33,424

45,564

341,167

_______

Silver and Sterling

Aug. 16

Other sales

,

65,676 ?:

128,501

_

ttZinc, London, three months

$43,069,428

434,350

72,366

77,799

.

30———

PRICES

Zinc

Round-lot sales by dealers—
Number

..

287,779 '

§§Zinc, prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)_
i_

842,323

$55,131,067

1,351,754
$63,089,444

30—

tfThree months, London

12,274

1,269,937

'

•

%

88,399

.

shown

■KLondoiv

854,597

11,772

Aug. 16

value

1,578,423

5,446

Aug. 16

6ales

1,275,383

Aug. 16

sales

*182,734

311

Common,

$63,515,062

1,298,033

Aug. 16

Customers'

Dollar

1,485,737

$67,022,937

.

(a)

Common,

1,223,120

Aug. 16

value

r

81,357

Export refinery (per pound).—_T___
tfLondon, prompt (per long ton)
tfThree months, London (per long ton)
Lead—
'• ''
' '0'/ ;

(customers' purchases)—t

shares

of

Number

Dollar

65.405.000

105,878,000

162,223

..

Domestic

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot

■

74,534,000
94,014,000

3__

30

Copper—

1,604,290

3,200,986

205,214,000

66,351,000

August:

299,510

Aug. 16

Aug. 16

sales

180,047,000

53,599,000 ;

84,589,000

:
2

____

31,124

ELECTRIC

Number

METAL

Other sales

69,368,000 i.

169,030,000

ii

30

:

June

1,723,190

sales

Short

Total

81,102,000

«

•

June

Month

460,305

—Aug. 16

sales

purchases

71,433,000
61,675,000:

70,242,000

43,206,000

72^490,000

;

June

June

Revenue

388,405

round-lot transactions for account of members—

Total

183,095t

45,678,000
_______

;

(1,000-lb.

(a) Not

71,900

673,046

—

146,563 >

340,786

—

Kilowatt-hour

-Aug. 16

sales

179,741

225,276

^

_

Shipped

388,090

9,944 '

-'5,001

11,583

_

(tons)

Fiber

EDISON

transactions Initiated off the floor—

Total

Total

444,550
626,610

„„

5,024,000

$44,299,000.

of

Produced

207,065

——Aug. 16

7,629.000r

PROD¬

Produced

17,500

599,640

$61,445,000

76,260

Shipped
Motes, Gral)bots,

191.700

408,420

SEED

—

_

June

'

June

Stocks

507,980

-Aug. 16

$65,375,000

(tons)

Stocks

210,110

2,118,840

7,719,000

(running bales)—'

Stocks

1.143,400

342,410
1,523,970

4,164,000

30

June

June

(tons)

Shipped

Hull

ug. 10

4,692,000
12,715.000

7,390.000

127,093

Shipped

16
Aug. 16

Other 'sales

$14,039,000'

5,685,000

21,^92,000

(tons)

Stocks

110.28

41,400

Short

$18,959,000

81

18,784,000

..

i

(tons)

Produced

108.75

5

ug.

sales

1,059-

%___

30

(pounds)

•

Linters

purchases

1,260

13,966,000

(tons)

June

(tons)

Hulls—

418,314

500,450

Total

1,253
5,788,000

(pounds)

Shipped

qs

sales

Total

99

v

Meal—v

and

Stocks

290,919

95

Other sales

Other

153,;

99

$22,673,000

COMMERCE—Month

Produced

Short

74.

161

•

1

COTTON

(pounds)

Produced

INDEX—

.

181.
570>

181

r.

-

OF

Consumption

9

sales

235

'

Oil—

4.90

4.31

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
— Aug. 10

Total

11

.

125

___

(pounds)

4.53

4.48

4.39

———Aug. ..0
30
Aug. 30
—Aug. 30

Other transactions initiated on the floor—
Total purchases

-

640

____

(pounds)

4.13

4.79

4.50

——

I
<•

94 t

12

105

.—22

liabilities

(pounds)

4.40

4.84

9
9

ASSOCIATION:

sales

52
38

Oil-L-

Crude

4.64

9

Iept.

Other sales

50
41

>

613

(tons)

3.49

ROUND-LOT

Short

.

68?

.

96'

;
"< •'

255

.

AND

(tons)

4.06

—Sept.

73

'V:'

;.

-~~~±

Seed— "•■.'
Received at
mills

9

9

Sept.

at end of period

'

•

*

Cotton
-

-—-Sept.

of activity

Percentage

Unfilled orders

46

-

:a_'

1

service

SEED

9

Iept.

-

.

i

June:

89.92

94.71

iept.

OIL, PAINT AND DRUG REPORTER PRICE
1949 AVERAGE = 100

120

13

.2

liabilities

UCTS—DEPT.

iept.

—

(tons)

123.

,.-

101

—

liabilities

COTTON

88.40

92.64

Total

3ept.

Group

:_i£i

_

_

liabilities

Commercial

9

(tons)

539

127

—

__

2_

liabilities

3ept.

A

37"
121

580

.

105

j

_

.

liabilities

Wholesale

Stocks

Group

_

—

number—

89.92

..

NATIONAL PAPERBOARD

service

Manufacturers'

87.61

90.63

DAILY AVERAGES:

—

39

40
95

.

10.500c

11.000c

9

3ept.

28 f

45

48

;

42

:_______

10.500c

10.750c

9

,

38 '

248%

Y

.

30

...

.

BRADSTREET,

&

—

10.550c

10.750c

9

MOODY'S COMMODITY INDEX

——

___

10.500c

3

9

.

257

•

July:

3

9

Group

•

.

.

—-

of

3

9

—

390-

'

620

—

development..—

Construction number

9

—

*

34

'

INC.—Month

9

—

40',

65

31

—1_

buildings

enterprises—:

and

public

Construction

Baa

service—.1

FAILURES—DUN

BUSINESS

Retail

——

i

19

1.353

v

406'

36

—i—

3

Group

399

19

1.418-

67

._i

systems--

3

Aa

417
.

420

—i_~

Manufacturing number

Group

95 '

"

$66.42

iept.
3ept.
iept,

•; 4'2

:••

"

—_

5i,
service

$42.17

at

U. 8. Government Bonds

432
20

■

77

1,499

-

.

30

77

—-—

and

water

Conservation

$66.49

————

27*
20

169 {
536

524
■*'"

33

i

"

162

208

2

$42.50

Bonds

Average corporate

37
23

171

263

Military facilities
Highways

$66.49

—

YIELD

.

■

$42.83

—

Group

>43

542

——-—

buildings

51

-

75

;,25

—

.,x_——I

207
''42

41

:•

:——

buildings

,

"

1

—

\

70
46

52

v—

private—

-

151'

75

.

—,

f

159'

50

•

nonresidential

Other

11,678,000

9

Production

227

'....

v.

'

$66.49

Average corporate^.—

Orders received

243

——

Hospitul and institutional--.—

Sewer

MOODY'S BOND PRICES DAILY AVERAGES:

Industrials

146

Educational

———-3ept.

(primary pig. 99% )
(New York) at—

Utilities

169

157

—_—

—-—

Residential

2

(New York) at

Public

169

'

__—

—v.—

construction

Public

QUOTATIONS):

at

(St. Louis) at
(delivered) at
Zinc (East St. Louis) at

Railroad

310

—_

recreational-—-

and

other

2

Lead

Aaa

315

—

and telegraph
public utilities—

Other

3ept.

——^pt,

—

JZlnc

BOND

326

——

institutional

and

construction

Public

'Export refinery at

MOODY'S

297 f

—a———_

Administrative

„

ton)

(E. & M. J.

refinery

Utilities

193

-

76

DUN &

Electrolytic copper—

Industrials

814

185

Telephone
All

10,030.000

428.000

,

(per lb.)

steel

Pig iron

7,095.000

433,000

149

INDEX—FEDERAL RESERVE <
= 100
Aug.

000 kwh.)

Scrap steel (per gross

*8,280.000

455,000

tug.

AVERAGE

Finished

Public

.

24.056.000

8,340,000

lug.

——

COMPOSITE PRICES:

Railroad

735

__

Industrial

MINES):

(tons)

(COMMERCIAL AND
BRADSTREET, INC. —

U. 8. Government

39

754

buildings

Miscellaneous
Farm

$314,122,000
108,206.000

212,808,000

^ept.

FAILURES

Domestic

: .52

public, utilities-———-—___________—

^ept.
iept.
'ePt.

EDISON ELECTRIC INSTITUTE:

METAL PRICES

392

52

warehouses—
and garages—

Educational

Hospital

544,872

1,155

377

—-—._

—_

restaurants,

Railroad

——

—

lignite

and

SYSTEM—1917-49

tin

52,472,000

ENGINEERING

—

—

DEPARTMENT STORE SALES

Aluminum

00,887,000

1,110

375

Religious

Social

Pennsylvania anthracite (tons)

Btraits

154,876.000

*60,994,000

1,586

1,200

__

——.——

Other nonresidential

34,114.000

3.124.

1,539

'

S. BUREAU OF

(U.

Bituminous coal

Lead

25,914,000
120,417.000

$4,477 1

2,979

1,627

.

—___ _—

Stores,

171,683,000

27,548,000

*132,398,000

S4.397

3,114

$4,613

——.x__

buildings and

Ago

OF

;—.———_

——;

Industrial

Commercial

Year

Month

———

Nonresidential

OUTPUT

IRON AGE

construction

Office

178,715,000

of that dates

Previous

millions):

Nonhousekeeping
buildings

7,609,000

045,432

-—Aug.
(no. of cars)— tug.

municipal

and

173,750,000

7,101,000

07,018,000

Federal
COAL

construction—

new

DEPT.

S.

(in

July

Nonresidential

13,241,000

28,024,000

.Aug.

—

construction
construction

State

173,470,000

11.754,000

138,322,000

„

construction—.

Public

7,280,000

*ug.

at
at———

S.

U.

Private

11,895,000

Aug.
————Aug.

CONSTRUCTION

of

(nonfarm)
New
dwelling units
Additions and alterations—

6,766,315

transit, in pipe lines-

——

NEWS-RECORD:
Total

0,874,735

lug.
Aug.
Aug.

—

freight loaded (number of cars)
freight received from connections

ENGINEERING

CIVIL

(bbls.)

0,803,335

AMERICAN RAILROADS:

ASSOCIATION OF

Total

Private

gasoline (bbls.) at—

(bbls.) at_—.
Distillate fuel oil (bbls.)
Residual fuel oil (bbls.)

CONSTRUCTION—U.

BUILDING

2.097,000

1,032.000

are as

Month

81.9

00.5

either for tlfe

are

Latest

LABOR—Month

(bbls. ot
——Aug.
-Aug.

average
—

bulk terminals, in

and unfinished

Kerosene

of quotations,

cases

Ago

Ago

*1,006,000

in

or,

Year

Month

lug.

gallons each)———.—
Crude runs to stills—daily average
Gasoline output (bbls.)—
Kerosene output (bbls.)——
Distillate fuel oil output (bbls.)
Residual fuel oil output (bbls.)

that date,

on

production and other figures for thfc

cover

Dates shown in first column

month available.

Residential buildings

42

Finished

§1,704,000

statistical tabulations

month ended

*61.7

§65.4

—Sept.

Equivalent to—
ingots and castings (net tons)

or

Week

Sept.

Steel

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—dally

Stocks at refineries,

Previous

or

of dMl- mean

a""!

bid and

**F.o.b. Fort Colburne U. S. duty included.

ask quotation at morning

ttAverage
session of London Metal Exchange,

,

Volume

188

Number 5776

Continued

from

.

.

.

The Commercial and Financial Chronicle

tions.

37

page

Office

,

(1039)

197

—

Auburn

Ave., N. E., Atlanta, Ga.

Underwriter—None.

May

* Pittsburgh & Lake Erie RR. (9/24) '
are expected
to be received by' this company on
Sept. 24 for the purchase from it or $3,975,000 equip¬
& Co.

Probable bidders:

Inc.; Salomon Bros. & Hutzler.

★ Puerto Rico

11

(EDT)

a.m.

St.

(9/17)

$100,000,000 4%% debentures.

this

it

on

$6,500,000 in bonds

summer."

authorizing

that

announced

was

The

fering—Has

postponed.
about Sept. 30, 1958.
Union Electric

sjd^k "sometime
voted

on

will

soon

short-term

may

run

and

for

to

be

tive bidding. Probable bidders:

Sanborn

Scientific

construction

determined

program

Co.

To

offer

17,000
standing preferred stock.

shares

the

Petroleum

Research

(Mass.)

in

Southeastern

Aug. 26 it

July 1

program

for

the

government

in

country.

United

been postponed.

be

the

new

fiscal

And the deferred

the

lion's

slated

Grip

a

indications

market

will

underwritings

where

and his client have

find

the

market

stocK

is

its

banker

for

the

moment,

seasoned

and

issue

new

bond

$150

million

tures

may

point.

of

25-year
be taken as a

The

sponsoring

price

a

Quite to the

the debt

contrary

securities markets

of 99%

case

a

yield

experienc¬

are

The

largely to the

upheaval

in U.

S.

Government obligations

since the

Administration

parted

company

with

of

its

aims

"balanced"

a

of

Indiana,

Hardening of money rates nat¬
urally plays its part in the dis¬
turbed atmosphere, but the firm¬
ing up- of credit costs is part of
the same parcel observers see it.They do not find business storm¬
ing the banks for loans.
Rather
the Treasury
is facedwith the task of raising consider¬
able new money and, since it can¬
not market any large quantities of
long bonds, naturally will turn to
the banks using short, and to the
extent possible, intermediate ob¬
ligations.
Things appeared to be moving
in the rignt direction this week.
Governments
firmer

had
and

tone

assumed

several

a

large

new"

corporate undertakings, in¬
cluding Sears, Roebuck's behe¬
moth offering were reported mov¬

ing well.

although, at least in¬

negotiated

as

concerned,

finding

Sears,

that

a new

new

100 for

of the

"Big Five" insurance firms

When a firm, engaged in an ex¬
panding
business,
needs
addi¬
tional
capital it often becomes

to pay the price de¬
by the lender. That was
case,_ when
Texas
Eastern

necessary

manded
the

Transmission
ket for
Its

came

mortgage

bonds, having

a

accorded

were

of the

Such performances hardly

new

low

inducement to brush

of the

issues

that have




with Francis I.

was

Co., Statler Center. He
formerly with J. Logan & Co.
OIVIDEND NOTICES

million
A

stock of American-South

Co.,

due

on

Cerro

Third Quarter Dividends

Cash Dividend No. 153

30 cents

(Special to The Financial Chronicle)

BEVERLY
ton

HILLS, Calif.—Mil¬
Phillips is now affiliated

A.

with

J.

B.

Hanauer

&

Co.,

140

South

Beverly Drive.
He
was
previously with Stone & Youngberg.

Taylor Adds to Staff
E.

Gooaland

and

of

de

a

share

the COMMON

STOCK

Pasco

Cerro

of

Directors

Corporation
at a meeting held on Septem¬
ber 9, 1958, declared a cash
dividend of twenty cents (20£)
per share on the Common Stock
of the Corporation,

payable on
September 30, 1958, to stock¬
holders of

record

on

67Vi cents

a

share

on

Payable October
Record

Date

1,

1958

September 19, 1958
Kenneth H. Chalmers

Septem¬

on

HILLS, Calif.—Max
is now with Taylor

Company, 439 North Bedford

Michael D. David

the

$2.70 PREFERRED STOCK

Secretary

ber 19, 1958.

(Special to The Financial Chronicle)

BEVERLY

Board

The

Diversified Closed-End
Investment Company

Pasco

de

CORPORATION

Joins J. B. Hanauer

65

Broadway, New York 6, N. Y.

Secretary
300 Park Avenue
New York 22, N.Y.

Drive.

pipe

carrying

this

of

September 30,

cents

(12c) per share
capital stock
October 15,
1958

day on the

payable

Corporation

stockholders

ness

INTERNATIONAL

Street, New York

twelve

record

at

the

close

of

JOSEPH
Vice

President

S.

STOUT,

and

Secretary

for

5%%

a

a
an

1958

mean

Co.

a

new

of
of

St. Louis

New

coupon

public offering
indicated yield

Ahead

offerings on sched¬
week
materialize,

that bankers will be

total of
issues.

that

COMPANY

Boonton

around

amount

Indiana's

$262

ENGINEERING

Standard

$200

million

projected debentures makes

up

September

Directors

5,

Dividend No. 220
Dividend of Twen¬
ty-Eight Cents (28tf) per share
on all the outstanding stock of
Combustion Engineering, Inc.
has
been
declared,
payable
October 28,1958, to stockhold¬
of record

at

CONSECUTIVE DIVIDEND

the

close of

business October 14, 1958.
Otto W. Strauss
Vice-President and Treasurer

of twenty cents
on

the

24,

1958,

record

at

September

to

A
a

dividend

stoclc

payable

the

Radio

(20c) per share

common

Company,

of

the

September

stockholders
close

of

of

business

15,' 1958.

HERBERT M.

quarterly dividend

per

share payable

on

of A5i
October

1# 1958 to stockholders of

rec¬

ord a* the dose of business

Sep¬

tember

12,1958,

was

declared

by the Board of Directors.
ROBERT O. MONNIO

KINGSLAND,

Assistant

Common Stock

The

1958,

Aircraft

of

Corporation declared

ers

190TH

Jersey

Dividend No. 102

COMBUSTION

beings watched

Week

next

handling
But,

AIRCRAFT RADIO

CORPORATION

8,

A Quarterly

million

SHOE

busi¬

1958.

20-year maturity,

was

If the major

of

the

of

the investor response to

issue

The

Oil

to

Wall

declared

On

of 5.71%

it will

of

been

line

market.

ule

14
dividend

has

September

rate, just about the highest yet on
this turn of events in the money
And

NATIONAL SHARES CORPORATION
A

mar¬

closely.

levels.

some

into the

$35 million this week.

first

were

some

now

du Pont &

DIVIDEND NOTICES

issues

falling to

ANGELES, Calif.—Robert

J. Garoutte is

Paying the Price

this

issues

off;

offering

DIVIDEND NOTICES

interested.

were

recent

offered any

this

ment
to major institutional
in¬
vestors, for inquiry was reported
heavy and reports had even some

footing from which

jcidedly weak again,

of

and

(Special to The Financial Chronicle)

for

tap

on

$28

Investment

yield of 4%% and it ap¬
that this was an induce¬

deals

Treasury list turned de-

and

common

a

to work.

But the

true

Roebuck

price of 99 with

It looked

sofar

both

African

of $350 million of 25-year deben¬
tures. Bankers priced the loan at

peared

budget.*

held

same

week's

Co.

ferred stock of Public Service Co.

syndicate

for

&

Salomon Bros. & Hutzler
(jointly);
Kuhn, Loeb & Co., and American Securities Corp.
(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities &
Co., (jointly); Leh¬
man Brothers;
Kuhn, Loeb & Co. and A. C. Allyn & Co.
Inc. (jointly); The First Boston Corp.; White, Weld
&
Co.: Kidder, Peabody ft Co

the

LOS

$10
million
debentures
of
Garrett Corp. and $24,282,000 pre¬

in

4.40%. The Triple A rated de¬
benture attracted brisk demand.

ing tough sledding these days due

rities

With F. I. du Pont Co.

situ¬

are

deben¬

of
-

the

Thursday.

fixed

markets.

of

Standard Oil Co. of California's

street

same
cannot be said to hold true of the

in

/;:j"

Wednesday,

an

appear

the

but

change

no

.

time of sale.
may

investment

amount

This big one is
Thursday provided

opportunity
to fit forthcoming issues to cir¬
cumstances
prevailing
at
the

be headed up a one-way

The

Other issues due for marketing

that'the

way out of the current wilderness
via the, leadership of negotiated

The

year.
The type of securities has not yet been
on.
Underwriter—To be determined by com-'
petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld &.Co.; The First
Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬

this syndicate

share.

for

ation.
-

are

for the credit.

agent

there

Getting

to

head

to

are

company plans to sell about
securities in the last half of the cur¬

decided

financing involved is in the neighborhood of $250,-

substantial.

issue

two

announced

new

rent

syndicate of commercial banks in
Canada and the United Kingdom.

States,

was

$12,500,000 of

Bank, The First National City
York, and Bank of America National Trust
& Savings Association. The Chase Manhattan Bank will

opera¬

new

Wisconsin Public Service Corp.

Bank of New

ability will offer additional common stock to its share¬
holders in the near future. Proceeds—To expand

There

Fall.

a

The three institutioxia which
are The Chase Manhattan

Fidelity Fire Insurance Co.

now

American

that

the

with

until

$5,000,000 first mortgage bonds. 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

As a first step in the pro¬
being negotiated between the

cooperation

banking firms and

Underwriter—

list is

the

Corp.
Offering—Not expected
early in 1959.

or

of

Su¬

Kuhn, Loeb &
♦Co. and Kidder,
Peabody & Co., both of New York, have
been selected as financial advisors to
develop a financial

announced that the company in all prob¬

was

of

State

Proceeds—

March 4 it

the

stock.

Fund

(Government of)
the Government announced

additional

capital
Lehman Brothers, New York.

York

Venezuela

v

gram a short-term credit is

its

New

Society. Underwriters—Expected to be Leh¬
Brothers, Smith, Barney & Co. and Merrill Lynch,
Pierce, Fenner & Smith, all of New York. Offering—
Expected in mid-autumn, probably late in October.

^ Scudder Fund of Canada, Ltd.
Sept.- 4 it was announced that this corporation late this
year plans to become an open-end Fund and issue some
of

the

(expected within two months).

Boston

1958

Worcester Gas Light Co.
Aug. 18 it was reported that the company plans the sale

Chemical

exchange for out¬
Underwriter-—Paine, Webber,
Jackson & Curtis, Boston, Mass. Offering—Expected in
October, 1958.

shares

stock

common

public, the proceeds of which
and $60,000,000. Approval

with

First

late in
issue of

an

man

reported company plans to issue and sell
100,000 additional shares of common stock, of which it is
to

competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; Smith,
Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly); White, Weld & Co.,
Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);

between $50,000,000
rests

plans to issue

—

The

transaction

Light Co.

Probable

Products Co.

be offered to the

&

announced that company

$10,000,000 of first mortgage bonds. Proceeds—
To retire bank loans and for construction
program.
Un¬
derwriter
To be determined by

expected

Co.f St. Louis, Mo.

reported that

was

preme Court

was

intended

the

of

by competi¬

Halsey, Stuart & Co. Inc.;

Instrument

been

announced

was

Universal Oil

Smith, Barney & Co., Glore, Forgan & Co. and Blair
& Co. Inc. (jointly); White, Weld &
Co.; Equitable Secu¬
rities Corp. Last preferred financing was done privately
Aug. 4 it

had

construction program.

on

Aug. 13 it

loans

Bids

Power

was

and sell

company plans to market
$30,000,000 of common stock in the latter part of
this year or in the first quarter of 1959. Proceeds—Foi

plant to

compauj

increase in bonded indebtedness of $6,500,000, and an increase in preferred stock from 25,000
shares to 50,000 shares.
Proceeds — For repayment of
bank

Wisconsin
March 17 it

about

the

an

Underwriter—For bonds

been

March 28 it

preferred

or

stockholders

de¬

termined

'"V-f"vv-.-■

15

Underwriter—To be

previously incurred.

ferred share. Dealer-Manager—Harriman
Ripley & Co.
Inc., New York.

by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Of¬

Joseph Light & Power Co.

April

market

Telephone Co.

was announced Missouri Public Service Com¬
mission authorized the company to issue
$110,000,000 of
35-year debentures. Proceeds — To refund outstanding

Sept. 17 for the purchase from the
Commonwealth of $9,000,000 public improvement bonds
of/1958, series B, due annually, July 1, 1959 to'>1978,
inclusive.

Bell

July 10 it

Halsey, Stuart

is to restore government balances

Virginian Ry.
i
Aug. 26 the directors approved a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$10) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug. 1, 2008 on the basis
of $11.50 principal amount of debentures for each
pre¬

stock

•

Southwestern

Bids will be received by the Government
Development
Bank for Puerto Rico, 37 Wall
St., New York, N. Y., up
to

authorized

preferred

Jackson & Curtis.

•

(Commonwealth of)

stockholders

of

purpose

short term obligations

Power Co.

an
additional 100,000
(par $50). Underwriters—
Stone & Webster Securities
Corp. and Paine, Webber,

Bids

ment trust certificates.

9

shares

The

which have been reduced by the repayment of excessive

Southern Colorado

CALENDAR

000,000.

39

Vkm'Pr*tid*ni and Tnatvnr

Secretary

September % 1958

The Commercial and Financial

40

Chronicle... Thursday, September 11,1958

(1040.)
labor turnover

BUSINESS BUZZ

U. S. Depart*

—

Labor, 341 Ninth Ave.,

ment of

New York

l, N. Y.

$3.50 per

—

year.

Washington
Capital

and

nomic collapse.

weapons

The reasons for

the move are

electronic

partly economic, partly as de¬
but mostly polit¬
Ike and his team lined up
a
lot of support for the con¬
troversial extension of the Re¬

ical.

ciprocal Trade Agreements Act
on
the promise of bailing out
the Western miners.
They got
the trade act extended all right,
but missed in a bid to get Con¬
gress to approve a half-billiondollar mineral sudsidy program.

White House team
is
scurring around frantically
trying to administer props to
the mining industries before the
Now, the

succeed, Ad¬

they'll

good

are

Chances

elections.

November

ministration insiders say.

Copper, lead and zinc are

the

objects of the Adminis¬
tration's affection now.
But
prime

including

others,

tungsten and
help

fluorspar will probably get
too.

Strangely, the State Depart¬
is
wielding the bailing
bucket now in the effort to keep
the miners from sinking. It took
over the task after the Interior
Department missed in the effort

help
lawgivers.
to

State

Capitol Hill

from

get

economic
meeting with

Department

experts

are

now

officials of other friendly min¬

producing countries in the
hope of working out voluntary
limits on shipments of lead and
zinc to this country.
A club
backing up the U. S. negotiators
is the implied threat that the
eral

President will acceed to an earl¬
ier recommendation of the U. S.

Commission

Tariff

for

higher

these min¬

duties and quotas on

times

before,

most re¬

cently in the case of Japanese
textile and ferrous scrap ship¬
ments

this country.

to

Special Copper Study
In

the

of copper,

case

which

be an even
candidate for
help, the State Department has
instituted a special study of the
now

to

appears

priority

higher

Economic
Affairs, recently confirmed re¬
ports that the Department was
giving a lot of consideration to
sistant

demand from several Western

including
Sen.
Mansfield, for a stockpile

Mike

program
One

for copper.
the

of

depressing

biggest

the

Sen.

manded

industry

some

Mansfield

that

announce

problems

copper

inventory of

an

tons.

to

the

150,000
de¬

lias

Government

plans to purchase

up

100,000 tons of domestically-

mined

27

Italian

copper

cents

claims
was

a

at

no

than

less

pound. The Senator

that

once

announced,

the
the

program

market

would firm and the government

would have to buy only a frac¬
tion of that amount.

Defense Department, Too

costs,
other

source—the

Defense

De¬

partment. The missile and high¬
speed plane programs have thus
far depended

fairly conven¬
tional metals, particularly new
high - temperature
stainless
on




spite

stepped

Nations; Balance and Prospects
Productivity; Industrializa¬
tion of the Southern

metal"

military

for

plating

and
low
weight.
A
magnesiumlithium combination, interlaced
with steel fibres for reinforce¬
ment

ers,
on

Practice;

Beryllium, used up to now in
applications as an alloy

"Some

beryllium producers has al¬

ready received a

contract to try

develop methods of forming

to

particularly
leading edges of wings for hew
hypersonic aircraft.
Its high
temperature
and fairly light
weight make it ideal if the
problem of brittleness can be
use

tal

solved—and

metallur¬

many

government

Commerce
Department, the new Office of
Civilian

share of loving attention.

the

experts in gov¬
frankly worried
sluggish state of the

industry.

So far, they're having

ernment
over

tool

are.

only limited success in holding
the tool makers away from the
brink of a real financial crisis.
The industry has

for

Department

the

time

some

caused by

been caught

in

squeeze

a

slack industrial activ¬

being pushed hard
to

soak

big

up

in an ef¬
chunks of

tools.

surplus

The

machines

[This column is intended to re¬
flect the ((b&hind the scene" inter¬
pretation from the nation's Capital
and may or may not coincide with
the "Chronicle's" owns views.]

the first half of
total allocations of
the schools and colleges
In

category.

year,

to

This
compares with 1,200 sent during
all of 1956 and only
1,750 in
2,745 units.

pected to run between

shipments

ex¬

are

400 and
year if

800

is in addition to the normal first

gram

year's depreciation and applies
to
both new and used equip¬

5,000 of these surplus tools.

for

the

rest

all goes well.

that

the

of

the

This would mean

tools

for

schools

pro¬

would absorb better than

There

is

one

the

problem

could

slow

walk.

While the tools

program
are

that
a

free,

however,

the government has stepped up
sur¬

plus.
are

now

that

the

declare any¬
where from 12,000 to 15,000 tools
government

surplus this
even

run

will

year.

Some guesses

the figure

as

high

Harper &

1951-1958

Sterling,

Harrold

—

Fact

Business

City

Book

New

York

Economic data — New
State Department of Com¬

Section,
and

of

Department

Sociology,
Princeton,

What Really Happened

on

the

"You

Auto

Now"

Buy

—

York

112 State Street, Albany

merce,

7, N. Y.; or 342 Madison Ave.,"
New York

17, N. Y. (paper) on

request.

cal

Taxes

in

West

Virginia

Edwin W. Hanczaryk and

—

James

Thompson—Bureau of Busi¬

H.

Roy

J.—paper—on request.

Report
in

—

International Fi¬

Research, College of Com¬
merce,
West Virginia Univer¬

Campaign—Bureau of Advertis¬

ing, American Newspaper Pub¬
lishers

Association, 485 Lexing¬

ton Avenue, New

Schools

York 17, N. Y.

Commercial

for

Personnel

—

Leo

Betty G. Fishman
Business

Bank

Fishman and
—

Research,

Bureau of
of

College

ness

sity,

Morgantown,

W.

Va.—

Commerce, West Virginia Uni¬

Morgantown,

versity,

W.

Va.

(paper).

Employment and Earnings

—

Monthly statistical data on em¬

ployment,

hours,

earnings and

TRADING MARKETS

Botany Mills
Wurlitzer Co. Com.

as

Park

Fashion

Indian Head Mills

United States Envelope

Morgan Engineering

Carl Marks & Co. Inc.
FOREIGN
20 BROAD

SECURITIES
STREET

TEL: HANOVER 2-0050

Estimates

—

American Cement

year.

as

in Research

Stake

Maurice Holland

N.

hidden by Pentagon budget

its release of older tools

711 Fifth Avenue, New
22, N. Y. (paper) 50 cents.

Princeton University,

planners, but insiders guess that
it has been running well over

time,

mittee

Economics

larly in the purchases of special¬
ized tools. Actual dollar figures

same

Problems of

—

Development—Com¬
for Economic Develop¬

U. S. Area

F.

have held up fairly well
in the past two years, particu¬

the

"Little" Economies

Pound

Government tool-buying pro¬

At

copies

single

year;

per

Brothers, New York.

grams

a

Money

$1.75.

—

Government Buying Increases

are

Total

of Chicago Press, 5750
Avenue, Chicago 37, 111.

—$6

Management's

paper.

to

the

to

versity

York

Economic Impact of State and Lo¬

Monthly

Dis¬

Income

Supply;
On
the -Theory
of
Optimal
Investment Decision;
Making Currency Reserves "Go
Round";
Measuring Economic
Growth: A Comment, etc.—Uni¬
Ellis

time.

any

special allowance of 20% in
the
first
year
equipment or
machinery is purchased.
This

industry wanted.

delivery at

take

minute.

Relative

nance

The schools
have asked for a total of 108,000
such
surplus
tools,
most
of
them
in
the
general purpose
lapse at

best the

the

last

the

by

1957.

But it's far short of what

be

the

But officials admit it could col¬

by providing hefty depreciation
to their customers flopped. The

ment.

on

may

shows promise.

This program

amounted

industry could get was

able to

not

tools

for

government to the schools.

tools to

a

have asked

Personal

and

tribution; Demand for Currency

ment,

donated

are

ernment sales of surplus tools.

give the tool makers a boost

who

the "tools
for schools" program, calls for
placing these surplus machine
tools in high schools and col¬
leges for vocational and engi¬
neering training courses.
The

ports, and a heavy flood of gov¬

Congress

unit.

each

operate

dubbed

plan,

this

this year in

for

generally

tight budgets, and many of them

Shipments to Schools

ity, rising imports, only fair ex¬

Efforts

dollars

several

of

Welfare,

Education and

Health
is

Mobiliza¬

Defense

and

and

these

industries aren't the
only producers getting top prior¬
ity from government business
protectors.
The machine tool
industry now is also in for a

to

installation
hun¬

and

dred

op¬

program

erated jointly by the

tion,

required to pay

running

Schools
A

are

costs,

Tool Industry

Mining

schools

transportation

industry's markets.

fort

gists believe it can.
Machine

to

the

these are gen¬
eral purpose tools, which tend
to shoot the largest holes in the
Most of

Economy,

Investment in Human

on

skin -and

as

of

1958 containing articles
Capi¬

August

25,000.

Political

of

Journal

building!"

shaping pure beryllium for

and

Institute

—

3, England.

tallest

have the

anything to

do

considered

sleeper in the race for new mis¬
sile-age weapons.
One of the
two

will

people

in electronic gear,
a
possible

copper

etc.

Bankers, Lombard Street, E. C.

limited

also

of the Institute of Bank¬

August, 1958—With Articles
Finance for Lending Institu¬

tions; Medium Term Credits in

being tested.

are

—

56,

($1.00 per year).
Journal

equipment

strength

high

of

because

Via Veneto

Affairs,

Rome, Italy—15 cents per copy

it for armor

develop

to

Italian

"wonder

one-time

the

with

Provinces;

Commercial Air Traffic

and

considerably

up

Government's

of

ground in defense uses. In re¬
cent
months,
experimentation
has

Containing arti¬

—

Italian

on

Report on Somalia to the United

high

of

Affairs

cles

forming
troubles,
and
problems, is again gaining

$100 million

■<

•Meanwhile, help for some seg¬
ments of the mining industries
may be
building up from an¬
other

in

Titanium,

Secretary for

Congressmen,

is

now

Lexington Avenue,
17, N. Y.—$5.

420
York

magnesium.

Thomas C. Mann, As¬

problem.

a

tion,
New

country's 40-odd mis¬
use large amounts of

20 of this

siles

-

dustry—American Gas Associa¬

Some

construction.

plane

arid

on

-

Historical Statistics of the Gas In¬

Magnesium alloys more and
more are being used in missile

Machine

This sort of threat has worked

Education,
Hudson, N. Y.
(paper) 50 cents.

Irvington

coming to the fore¬

are

Economic

for

tion

BOODLE a CO

front.

erals.

several

demanding better
As a result,
little-used

are

the rare or

of

minerals

is

ment

increase,
complex

these

.

,

September, 1958—Con¬
taining articles on Would You
Have Signed It (Declaration of
Independence); Common Own¬
ership—American Style; Infla¬
tion is a Burglar; Beneficiaries
of Free
Market Upgrading;
Source of Money, etc.—Founda¬

Freeman,

materials.

basic

with

State Dept.

Aid from

1A/

gear

of

makers

some

fense measure,

New York

like.

the

re¬

Press, 120 West 31st Street,
1, N. Y.
•

age

steels, aluminum alloys, and the
But as speeds, armament

D. C. —The
Administration is
determined to rescue the West¬
ern mining industries from eco¬
WASHINGTON,

Eisenhower

Booklet

—

garding material wanted—Vant¬

g-i» j

A.

Writers

New

For

SNOODLE a CO.

A
gJ
JlTL I i/fAb

Beliinl-the-Scene Interpretation*
from the Nation's

•

•

•

National Co.
Cormac Photocopy

Corp.

SPECIALISTS

LERNER & CO.

NEW YORK 5, N. Y.

TELETYPE NY

1-971

Investment

Securities

10 Post Office Square,

Boston 9, Mass.

Telephone

Teletype

HUbbard 2-1990

BS 69