Full text of Commercial and Financial Chronicle : September 15, 1960, Vol. 192, No. 5986

View original document

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

ESTABLISHED 1839

Volume

192

Number 5986

AS WE SEE IT

Editorial
All of

in this

New York

Price 50

are

political
speakers should
license." Few of
us have,
therefore, been particularly disturbed by the
often somewhat absurd statements
being made in the
Presidential campaign now getting under way. It seems
to us, however, that Senator
Kennedy the other day
stepped rather over the line of permissible foolishness,
office. We have grown to feel that such
be permitted a rather sweeping "poetic

since what he had

say

tion neither of which

can

well be defended

sonable standard.

direc¬

In agreeing that economic growth will require more Federal

sense

Federal

who

has cut his eyeteeth would take the
study the methods by
(Continued on page 28)

I invite attention to

He calls for

policy to encourage savings and investments.
fact

women

and

of life.

soon

been

that
so

the

hrain

muscle

that

Some

of the proposals offered for
accelerating
growth rate demand with vigor and consider¬

called

comprehension

of
(and oh — how
much this is needed)
and in
the
service
of
the
Kingdom
God.

We know in the busy streets

/
daily life that all living or- /
ganisms must either grow or ;
slowly perish. This is particularly true of the secular insti- tutions conceived

let

and

James F.

Oates, Jr.

people are multiplying rapidly and
about how to live and how to kill
than ever before.
In this setting the monolith
Russia has raised on high the ugly and age-old
challenge of materialism, the flaming faith in the
dictatorship of the proletariat and the passionate
more

shall

lifetime.

our

remember

ever

But

that

end and not the end

access,

they know

basic re-examination

decisions

for

this shrinking world of instant communication and
easy

...

critical
make

and built by

man, such as the State,
the
business
corporation.

for

deepest
role

our

The controversy over how to achieve a faster
growth rate is timely, real and important.
It is
one which we should all take
seriously —- for the
solution we choose may well be one of the most

„

the

convictions and attitudes with respect to the
of government in a free enterprise system.

brotherly love

control

over
our
way
of life and thus
sanctity of individual freedom. The
attendant controversy has divided our people, has
stirred them to heated political
debate, and has

by the Divine
Being to grow in spiritual mo¬

and

threaten

enjoined

tivation,

able persuasiveness an enlarged role for the Fed¬
eral
Government.
Many who oppose this view
think that such expansion would lead to an obnox¬
ious increase in the Federal Government's direc¬
tion

in perception and
of humanity has

All

power.

realize

be exercised

must

it may grow

an indispensable
ingredient
namely growth—economic growth—and

to what measures should be taken by our nation
assure the continuation of such
growth.

reorientation of

our

Statistical Nonsense
one

development.

is, indeed, a require¬
ment of life.
Children are appraised in terms of
physical and mental development. Mature men and

Kennedy's statisticians came up with any
specific figure of this sort—just as it would be interest¬
ing to know how so many mathematical neophytes of
the past came to suppose that they had found a
way to
trisect an angle or to square a circle.

and
tax

Growth is

interesting to know

how Senator

trouble

research

of power;

equipment as well as intangible investments in education,

any rea¬

the

are to succeed in
meeting this challenge,
must, of course,* be strong; strong in faith,
courage and determination, as well as in the full
range of military and economic power.

ful, - non-essential - programs.
Growth is said to require
tangible investments embodying new, modernized plant and

halt. It would in

consist of and says it should be coupled with cuts in waste¬

Day address delivered by the
candidate in the city of Detroit. The flexible standard
of sensibleness and good faith allowed candidates ex¬
tends, of course, to their use of statistics. In point of fact
so
many unwarranted conclusions are being constantly
drawn from sets of figures themselves often
seriously
in question that
ordinarily we should feel much inclined
to pass over the imaginative inferences of candidates for
political office, but when a gentleman who would have
us
place him in the highest office of the land has the
effrontery or naivete (whichever it is) to tell us that
"with an average rate of
growth in this country every
working man in the last eight years would have received
$7,000 more than he has received," the time has come to
a

spending, Mr. Oates specifies the kind of spending it should

We refer to the Labor

call

declaration of war
(cold and hot) against
dignity and sanctity of the individual man.

».

designed to influence the working men
this country—influence them by a means and in

Copy

By James F. Oates, Jr.* President, The Equitable Life
Assurance Society of the U, S., New York
City

artfully
and women of

was

Our Way of Life

claims issue from the mouths of candidates for

the

Cents

Achieving Real: Economic Growth

quite accustomed to hear
half-truths, fuzzy generalizations, and wholly incredible
country

7, N. Y., Thursday, September 15, 1960

growth

itself.

called

seeking
is

means

upon

solution,
to

Economic opportunity

all, the dignity and rights of

free man, the

enlargement and ennoblement .of an individual's
life purpose—these are the real goals to be sought

by society.

These

therefore, the true objec¬

are,

tives of economic growth. We can not destroy such

objectives

growth.

name

achieving

economic

review the record of these recent decades

there is

the

noticeable drift

(Continued

on page

28)

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate

State,

securities

are afforded a complete picture of issues now registered with the SEC and poten¬
tial undertakings in our "Securities in Registration" Section, starting on page 32.

U. S. Government,
Public

Housing,

State and

Municipal

Housing

NATIONAL AND GRINDLAYS

BANK LIMITED

Securities

STATE

Head Office:

AND

MUNICIPAL

Lester, Ryons
So.

623

HAnover 2-3700

London

NEW YORK

ST. JAMES'S

BONDS

PARUAMENT STREET, S.W.I.

Bankers

SQUARE, S.W.I.

to the Government in:

COMPANY

BOND DEPARTMENT

Branches

New York 15

in:

TANGANYIKA,

UGANDA,

THE FIRST NATIONAL CITY BANK

ZANZIBAR,

in Claremont, Corona del Mar,
Encino, Glendale, Hollywood, Long Beach,
Oceanside, Pasadena, Pomona, Redlanda,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier

OF NEW YORK

Inquiries Invited

ADEN, SOMALI REPUBLIC,

NORTHERN AND

SOUTHERN

RHODESIA

Agency
Bonds and

Teletype: NY 1-708

New York

Correspondent

THE

Chase Manhattan

Southern

—

Pershing ft Ce.

Bond Department

BANK

California Securities

Bond Dept.

Notes

Offices

ADEN,

INDIA, PAKISTAN, CEYLON, BURMA,
KENYA,

30 Broad Street

Hope Street, Los Angelea IT,

Associate Member American Stock Exchange
Members Pacific Coast Exchange

KENYA, UGANDA, ZANZIBAR

TRUST

Co.

Members New York Stock Exchange

Branches

CHEMICAL BANK

California

26, BISHOPSGATE, LONDON, E.C.3.
telephone:

Municipal
and Public

HAnover 2-6000

Net Active Markets Maintained

To Dealers,

UNDERWRITER
DISTRIBUTOR

ESTABLISHED

Exchange

American Stock

Exchange

Canadian

STREET

BROAD

company
NEW

YORK

4, N. Y.

JDAXiI.lAS

MUNICIPAL

Exchanges

Teletype NY 1-2270
25

Commission Orders Executed On All

FOR

CANADIAN DEPARTMENT

S'mt/ucedt

BONDS & STOCKS

Block Inquiries Invited

New York Stock

CANADIAN

1832

Members

canadian
securities

T. L.Watson &Co.

DEALER.

FIRST

Banks and Brokers

DIRECT WIRES TO MONTREAL AND

Goodbody & Co.

CIVIC

Dominion Securities
Grporatioti

IMPROVEMENT

MUNICIPAL BOND DEPARTMENT

bank of america

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

•

PERTH

AMBOY

2 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.
CHICAGO

(
I

'
TORONTO

BONDS

CALIFORNIA'S

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehal! 4-3161

N.T.&S.A.
SAN FRANCISCO

•

LOS ANGELES

••

1, \

The Commercial and
2

Financial Chronicle

Thursday, September 15, 1960

(1046)

The Security

Brokers, Dealers only

For Banks,

I Like Best...

experts
in the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.

A continuous forum in

Professional Service
in

Week's

This

which, each week, a different group of

Alabama &

Participants and

Forum

Selections

Their

Louisiana Securities
Corp.—Samuel
Weinberg, President, S. Wein¬
berg, Grossman & Co., Inc., New
York City. (Page 2):

Tex-Star Oil & Gas

MARKETS
•

Positions

than

Tex-Star Oil & Gas

Nationwide facilities for

O-T-C markets.

Corp.

the

with
potential
apprecia¬

equity

New York Hanseatic

high
for

This f

Associate Member
American Stock

Exchange

main

avenues

CHICAGO

and

months ended May

SAN FRANCISCO

duction

Teletype NY 1-40

WOrth 4-2300
BOSTON

•

PHILADELPHIA

•

Nationwide Private

Wire System

gas

GROSSMAN
& CO. INC.
Members

Dealers Ass'n

Security

BONDS
Bids

Odd Lots
Dealers)

(To Brokers and
—

★

—

York 5

Exchange Place, New
Phone:

pany

to reinvest all

earnings, no

cash

dividends

States

join

Attesting

advantageous

1-2762

other

success

have

Interest In

period for the com¬

with net income estimated
been in the $550,000 to

pany,

$600,000 range. Prospects are good
for a -net of $800,000 to $1,000,000
The

Bassett Furniture Industries

company's revenue history
upward

has also followed a steady

Total revenues of $347,100
fiscal
1958
compared with

path.

Va.

year before.
Rev¬
mounted to $609,400 in the

the

$117,800

Commonwealth Natural Gas

enues

LYNCHBURG,
LD

VA.
TWX LY 77

—5-2527—

Institutional Investors.

• •

WANT INFORMATION ABOUT

With

our

firm has

first-hand

the

with

familiarity

entire
We

Canadian securities

market.

handle transactions

in all Cana¬

dian securities, including
corporate
and

stocks,

and municipal bonds,

will

glad to supply

information about
of interest to you.

specific issues

Call

write:

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

B0ST0N10

Oil

new

recent bid of 19 was selling

of New

Yamaichi Securities Co., Ltd.
Tokyo, Japan
Brokers &

111 Broadway,

wise might be

the fur¬

serves

in-'

generating

Gas

stock

common

Oil

natural

or¬

acknowledged
to

one

qVJR Wo*.

finest

the

the real estate
field.

& Gas which has the

Uris

sources

and

the

know-how

the

record

financial re¬

technical

the

Since
war,

brothers

developers

and builders of

develop these assets profitably
over the near-term.
There is no

prime office

space
has
of. the
Alan I. Greene
probably been
merger, Tex-Star Oil & Gas has
strengthened its position.
unsurpassed. They have accounted

doubt

that,

result

estimate

Gas'

proven

Gas

Tex-Star

circumstances to be

solicitation of an

offer to buy,

construed

any

S-SAV\l\&

reserves,

May 31,

1960

was

considerations. Now,
have

as an

offer to sell,

security referred to herein.)

N. Q. B.

investors

extraordinary opportunity

OVER-THE-COUNTER

in the Uris operation
favorable terms, and at a

to take part
on

very

substantial

discount

from

creation

The

Uris

under¬

ability
which

to
upon

20-Year Performance of

rests

construct

the

of values

organization

its

building^

completion have, ap¬

values

far

above

cost. Reduced to simple

Continued

INDUSTRIAL STOCK INDEX

lying appraisal values.

praised

Bay City, Mich.

ive rsally

u n

Gas

Oil

DE 75

——

Percy

this
ganization

Uris,

share at that time).

gas

(This is under

Building

26, MICH.

Harold D.

(selling at about $15
Surrey's re¬
serves
and
undeveloped
leases
were
attractive to Tex-Star Oil
a

industry has $1,213,500, consisting of 6% con¬
vast growth prospects as the de¬
vertible subordinated debentures
mand for its product is practically
due
1974.
There
were
508,719
insatiable.
The
ability
of
the
management of Tex-Star Oil & common shares of $1 par value
Gas to recognize favorable oppor¬ then outstanding
(subsequent to
tunities promptly and
capitalize
May 31, 100,200 common shares
upon them to the utmost has been
were reserved for former holders
amply proven.
'
:
The pattern that is developing of Surrey Oil & Gas Corp.) Other
The

Penobscot

WOodward 2-3855

Oil for- 14% of the office space con¬
made as structed in Manhattan alone in the
of Aug. 31,
and
1959 by Ira Brink- years 1947 to 1959.
Uris Buildings Corporation was
same period was equal to 57% of
erhoff, an (independent oil and
in early 1960 to merge
gas consultant, showed the follow¬ formed
gross.
For
the
same
nine
months, ing: natural gas, 37,423,300 MCF; various Uris real estate holdings
gains of 55% in revenues, 66% in condensate, 682,900 bbls.; crude and marks the first time that out¬
cash earnings and 78% in net in¬ oil, 222,700 bbls.;
and liquefied side investors have been able to
come were reported over the cor¬
participate
in
this
outstanding
petroleum gas, 200,500 bbls.
real estate operation. The decision
responding period of fiscal 1959.
The
company's
own
drilling
of the Uris
brothers and their
The success formula which is
program, plus the Surrey acquisi¬
working so well for Tex-Star Oil tion, have boosted total reserves associates to obtain public partici¬
& Gas is based mainly on devel¬
pation reflected a desire to raise
substantially since a year ago.
•
new
capital
for
expansion
of
oping the gas aspects of the busi¬
Long-term
debt
of Tex-Star operations, as well as estate tax
ness—production, gathering and

by-products.

..■

Exchange

Buildings

and

Tex-Star

1051

Stock

Branch Office

Uris

Surry

Detroit

DETROIT

Headed

Corporation.

Oil &
through the exchange of 100,common

Members

Midwest Stock Exchange

security which appears to me
offer outstanding value is the

incurred.

purchased

SOLD

—

M0RELAND & CO.

Corporation

Tex-Star Oil & Gas
important
acquisition

N. Y. 6 COrtlandt 7-5680

L, A. DARLING

City

Last June,

about

anticipated 1969 net in¬
come
of
approximately $1.10 a
share
(based
on
about 515,000
shares,
estimated
to
be
the
weighted
average
number out¬
standing during the year).
Indicative-of management's
excellence
are
the
high profit
ratios being realized.
Cash earn¬
ings
of
$538,300
in
the
nine
months through May 31, 1960 were

Uris Buildings

Investment Bankers

BOUGHT

York Stock Exchange

New

Members

the company's

reserves,

New York

York, Inc.

Affiliate of

■

write

Securities Company

shares,

com¬

tangible development charge-offs
that are sufficient, to completely
offset tax liabilities which other¬

200

times

now

discovering valu¬

program

function

ther

Gas

of gross revenues,
net income of $406,000 in the

throughout

offices

Canada,

Tex-Star

equal to 75%

CANADIAN SECURITIES?

able

when

York City

Private Wire to New

In addition to

made

Market,

are

additional drilling is

and

under way.

and undoubtedly

fiscal year

exceeded

wells

seven

pleted

$1,100,000 in fiscal 1960.
Traded in the Over-the-Counter

1959

STRADER and COMPANY, Inc.

where

drilling

1961.

fiscal

American Furniture

Life Insurance Co. of

popularity

the

Yamaichi

expected

future.

the total of Tex-Star
Oil & Gas stockholders has mul¬

the

Trading

can

foreseeable

the

...

WHitehall 3-7830

Teletype No. NY

expected

Call

of the com¬

ventures in
Coastal States consist¬

other

For current information

is the policy

As it

nine

31, 1960.

STOCKS

conversions.

debenture

branch offlreg

to our

JAPANESE

gathering
the future.
Samuel Weinberg
system and a
ently has been the biggest pur¬ tiplied from 385 at the end of fis¬
1959
to
about
gas
by-prod¬
1,600 as of
chaser of Tex-Star's gas.
• cal
ucts plant.
With the introduction
;
Tex-Star adheres to a policy of Aug. 31, 1960.
of the present management late in
The
strong prospect of an
drilling proven and semi-proven
the
1957 fiscal year, operations
prospects rather than engaging in $800,000 to $1,000,000 net income
rapidly surged out of the dol¬
wildcatting
to
any
appreciable, in fiscal 1961 is based primarily
drums that had
prevailed since
extent. This practice has resulted on greater gas production and ex¬
the company commenced activi¬
in a superior drilling record.
The panding revenues from the en¬
ties in 1956. Under this new and
Carancahua System and
company had an interest in the larged
extremely capable leadership,
drilling of 22 wells in fiscal 1959, extraction plant.
sharp improvements have been
of which 18 were completed for
With the outlook solidly indi¬
registered and further gains are
a
total of 32 separate producing cating
a
continuation of past
confidently forecast.
zones.
This represents an 82% trends in earnings, Tex-Star Oil
Tex-Star Oil & Gas recorded
rate of success!t _
& Gas is to me an unusual growth
a
net income of $149,626 in the
The most active drilling opera¬ situation witih a high degree of
fiscal year ended Aug. 31, 1958
tions of the company in recent attraction.
>
and doubled that amount in fiscal
months have been in the Mag¬
1959
when
net
income
totaled
ALAN I. GREENE
nolia
Beach
field
in
Calhoun
$299,326. The 1960 fiscal year—
County on the Texas Gulf Coast,
Partner, Davis J. Greene & Co.,
which ended Aug. 31 — was an¬

WEINBERG,

in the

Coastal

and

well

can

gas

Direct wires

approxi¬

Since the end of May,

in all of fis¬

$171,500

Tex-Star

remunerative
interest

1959

cal

pro¬

and

Mobile, Ala.

capital items at the end of May
were
paid-in surplus of $826,665
and retained earnings of $679,875.

extraction plant

the

and

system

NY 1-1557

NAnover 2-0700

was

climbed from $70,400

New York 6, N. Y.

New Orleans, La. - Birmingham, Ala

spring of this year.

profitable
operations: oil

York 5

120 Broadway, New

owned

$125,000
of
debentures
System owns a 40% interest mately
have been converted into about
in
a
plant that extracts' liquid
hydrocarbons from
the natural 15,625 shares of common. There
are
approximately 136,000 com¬
gas delivered through the system.
mon
shares reserved for further
Tex-Star's revenues from this

growing com¬
pany has two

1920

Established

a s

Stock Exchange

Members American

ing

tion.

Corporation

system

York Stock Exchange

Members New

19 Rector St.,

completed in
In addi¬
tion to
gas
gathering activities,
the Carancahua Bay Gas Gather¬
this

resents

Steiner,Rouse&Co.

(Page 2)

by Tex-Star and 75% by Coastal
States.
An
important extension

of Tex-Star Oil & Gas Corp. rep-

Gas Gather¬

ing System, which is 20%

securities in this stock
of 1960, the common stock

project

joint

significant

Partner, David ; J.
Co., New York City.

Greene,

Greene

the Carancahua Bay

standing
market

several ventures.

York City

intensified search for out¬

the

of all

broadest coverage

Y. Security Dealers

Association, Inc., New

leading O-T-C issues.

500
•

Bought—Sold—Quoted

with outstanding re¬
sults by a larger company, Coastal
States Gas Producing Company,
Uris Buildings Corporation—Alan
with which Tex-Star is associated

exploited

Weinberg, Grossman &

Co., Inc., New York City
Members

previously

been

has

Tex-Star

SAMUEL WEINBERG

President, S.

their

termSy the
on page

35 Industrial Stocks
:

FOLDER

ON REQUEST

National Quotation Bureau
Incorporated

46 Front Street

Hew York 4, H. Y.

Volume

5986

Number

192

The Commercial and Financial Chronicle

(1047)

CONTENTS

Outlook for Rebuilding

Savings via Life Insurance
By

Dr.

James

O'Leary*, Director

Economic:

AND

Articles and News

.....

•

now

life

savings, Dr. O'Leary explains why "there is no

today for

reason

cash

value

backward about selling permanent

[being]

contracts.? The

Outlook for Rebuilding

reasons

discusses

for decline

the

savings through life insurance medium;

implications of this for economic

ices

the

points I shall endeavor to

bring about. These
(1) During the
60

past

follows:

are, as

enjoyed an
unparalleled

(again

about

This

Because

also

a period
spectacular
growth of the

business,

1909

saving
through life

James J.

O'Leary

insurance;
(3)
The
productive investment
of life insurance savings has con¬
tributed enormously and in many

economic growth of
the country; (4) In the past sev¬
eral

the

ways

the

however, the

increase

our

Investment Opportunities in Farmers Home Securities

the

rose

annual' rate

Europe Termed High-Cost Food Producer

'/A .-V;- v

„■

current
concern' that
national economy is not grow¬

Despite
our

Regular Features

ing fast enough, the record of our

As We See It

implications at

time

accelerated

rate

eco¬

nomic

growth financed soundly
out of a rising rate of saving by

insurance

explain the capacity of the
economy
to grovK/' $d
vigorously when growth has been

Insurance

and

Stocks_________

policies.

ary

The

Economic Growth

of the

United States
In

beginning

consideration

our

of the role of life insurance in

expanding
useful

the

it will be
review briefly the

economy,

first

economic

growth

the

country

slow

most

other

Coming Events in the Investment Field__

terms

Investment

Recommendations.

sons,

are, of course, many rea¬
most the most obvious being

able

environment

for

risen

Market"

From Washington Ahead

of the News—Carlisle Bargeron

Mutual

Hathaway Instruments

economic

Funds

NSTA

encouraged inventiveness and in¬

News About Banks and Bankers

novation,
risk-taking,
and
the
spirit of competition, which are
the
driving forces of economic

Observations—A.
Our

important, the
American
economy
has
grown
rapidly
because
the
American
people have been willing and able
to

save

Amer. Int'l Bowling

growth. Our economic system has
encouraged
individual initiative
and the desire to get ahead. It has

Perhaps

B.B.M. Photocopy

Indications of Current Business Activity

Notes

Reporter

Wilfred

Singer, Bean

May

Governments

mackie,

Public Utility

Securities

Teletype NY 1-1825 & 14844
Direct Wires to

in Registration

Security Offerings

Los

substantial part of their

Angeles

Philadelphia
St. Louis

San Francisco

Prospective

Dallas

Cleveland

Chicago
Securities Now

inc.

40 Exchange Place, N. Y.

HA 2-9000

most

value

the

dollar

States

last

$480

year,

billion.

therefore,

capacity to develop

been
of

The

Corner

and

For many years we

specialized in

You—By Wallace Streete—

Continued

other

National Patent

Development*

Tax-Exempt Bond Market—Donald D. Mackey

Washington

and

You

Mr, May

is making an on-the-scene study of economic and
political conditions in South Africa.

sav¬

page

AstrothermCorporation*

(All Issues)
Copyright 1960 by William B. Dana
Company

The COMMERCIAL and

FINANCIAL

CHRONICLE

Founded

1868

CLAUDE D.

Subscriptions in United States, U.
Possessions, Territories and Members
Pan-American Union, $65.00 per year;

President

S ELBERT, Treasurer

ST., NEW YORK 4, N. Y.

Boston

Newark

Chicago
Schenectady

Glens Falls

Worcester

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

Chicago

Office:

111.

135

South

(Telephone

Salle

Canada,
$68.00
per
$72.00 per year.

Other Publications

plete

Other

request

St.,

STate 2-0613).

Bank

and

$45.00 per
Note—On
the

year;

Quotation

year.

account

INCORPORATED

39 BROADWAY,

Record

(Foreign

—
Monthly,
Postage extra).

the fluctuations

New

York funds.

NEW YORK I

WHitehall 3-6633

of
exchange,
remittances
for
subscriptions and advertisements

be made

m V. FRANKEL & CO.

rate

foreign
must

S.
of

Countries,

Thursday, September 15, 1960
vertising

TELETYPE NY 1-5

Dominion
Other

GEORGE J. MORRISSEY, Editor

TELEPHONE HAnover 24300

matter Febru¬

Subscription Rates

York 7, N. Y.

SEEBERT,

WILLIAM DANA

Members New York Stock Exchange

*Prospectus

second-class

COMPANY, Publishers

DANA

REctor 2-9570 to 9576

25,

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

Reg. U. S. Patent Office -

Spencer Trask & Co.

Reentered
ary

25 Park Place, New

Nashville

Hudson Vitamin

Products*
*

PREFERRED STOCKS

Albany

Security I Like Best

WILLIAM B.

25 BROAD

The State of Trade and Industry

our

means

Salesman's

ing by the people which have pro-

had

GNP

has,

Security

The Market

Published Twice Weekly

have

Pacific Uranium

Einzig: "What It Would Cost Britain to Join the Common

the abundant natural resources we

amounted to about $117

1959,

billion.

better

the

Struthers-Wells
Dealer-Broker

countries?

several decades. Eor
income
each year and make it
measuring rod,
available for the production of
the economist employes the an¬
capital goods. The heart of the
nual estimates which have been
process
of economic growth in
developed of the gross national
our economy has been the avail¬
product of the United States. The
ability of savings to finance the
term
"gross, national
product"
expansion of our productive ca¬
simply means the dollar value of pacity. Economists who have
all the goods and services pro¬ studied the growth of this country
are
agreed that the basic factor
duced fin the national
economy
restricting growth has been the
during a given year.
limited supply of saving.
^ f ^
Fifty years ago, in 1909, the
A highly important key to the
GNP of the U. S., measured in
economic growth of the United
a

DIgby 4-4970

There

past

lack

Broadway, New York 5

Bookshelf

growth.

people. It also has been the re¬
sponsibility to play a more effec¬
tive role in combatting inflation¬

Cover

can we

possess.
High on the list is the
(6) To play fact that we have been blessed
its part in faster-growing national with a highly stable system of
economy, our business now has Federal, State, and local govern¬
the responsibility to redouble its ment which has
provided a favor¬

sell life

the American people;

of saving by the American

J.F.Reilly&Co.,Inc.

(Editorial)

growth during the past half cen¬

American

in which the United States sorely

baird-atomic, inc.

1.5%

about

compounded.

in 1961

Fuels Policy Proposal Analyzed

bowling

Nadler Sees Improved Economy

(5) This slowing down in the flow
saving through life insurance

pace

means

ionics, inc.

american intl.

Businessman's

efforts to

british industries

Attractiveness of Ireland—Roger W. Babson

other free, society. It
hgs been a
remarkable' achievement.
How

brace & co.

—Norman F. Dacey

was

saving through life insurance has
slowed- noticeably,
for
various
reasons
that
will
be
discussed;

needs

annually.

Bank

grave

harcourt

—Maurice Hart

tury has been unparalleled in any

has

McMillen

years,

; 9

How Mutual Funds Can Meet Life Insurance Competition

from about $1,295 in
$2,700 in 1959. In other
words, GNP per capita just about
doubled during this period, with

capita

the accumula¬
tion

WHltehall 4-6551

years

insurance

measured

dollars)

compounded

Baker, Jr

STREET, NEW YORK

Over-the-Counter MarkeL—What It Offers Investors

population
during the past 50
the rise of GNP on a per.
capita
basis
was
considerably
slower. Again in terms of the 1959
value
of
the
dollar,
GNP
per

been

life

—W.

for

corrected

constant

expansion; (2)
has

dollar

during this period the annual rate
of increase in our national output

has

economy

annually in our
national economy, as measured in
a

Palmer

WALL

Politics, Prospeets and Prices in the American Economy

produced
of

Telephone:

Moderate Business Recession Ahead—William F. Butler

changes in the general price level,
rose
over 400%.
On the average '

years

American

the

—R.

the total value of goods and serv¬

terms

Cobleigh—__________4

Puerto Rico's Tax Exemption Program and U. S. Investor

century

half

this

Obsolete Securities Dept.

•'

growth;

during

words,

obsoletes will

ninth.
,

The Gillette Company—Ira U.

and de¬
plores attempt to force faster economic growth through expanded
Government spending and easy money.
It will perhaps be helpful to have
a
brief review, at the beginning,

immediately follow the

Savings Via Life Insurance

—James J. 0'Leary_^____

the

to sell

..Cover

industry's economist probes

insurance

THE TENTH MAN

Way of Life—James F. Oates, Jr

present to reverse the slowing down in the flow

insurance

opportunity"
of

industry's attention to the "great

insurance

COMPA

page

Achieving Real Economic Growth Without Losing Our

life

directing the

ICHTMIH

B.S.

Research,

Life Insurance Association of America, New York City.
In

Teletype NY 1-4040 & 1-3540

The Commercial and Financial Chronicle

(1048)

have

time

The Gillette Company
i

high returns on
Except for an occasional Castro
Hemingway and the current

home

spate of beatniks, bearded laddies
are almost as rare in our affluent

into

and sales techniques

the Toni in¬
vestment was all paid off within
4M> years. The "Toni," "Bobbi"

bearded ladies. Impor¬
tantly responsible for this smoothshaven appearance of mankind, is
society

Company

Gillette

the

produced

1959,

119

foreign

lot

quite

all

thirds

sells

the

racked up

Gillette

blades

razor

increased

has

and

its second best year in
■?:

1959.

two-

Mate

Paper

the Fall of

United States and

bought in the
Canada

"No

facial cleansers, deodor¬
ants and shampoos, the Toni Divi¬
sion
has
gone
forward and it

well. That's

company.

(Adorn)

including

and

blades

permanents

addition

the

Since

1958.

"Free World" and several

the

home

prospered except during a
changing lull in 1957 and

style

which, in
2V2 billion

countries,

curtained countries
a

have

than 3 billion blades in

sold

all

"Prom"'

and

shaves, and Mix" Toni Home Permanent, and
a
broadened line of hair sprays

American

for

blades

over

permanents, and the effec¬

tiveness of Gillette manufacturing

(by

ment

acquired

was

1955 and

invest¬

some

questioned, at the

analysts

1% an¬
nually) its share of the domestic
market since the end of,World
about

three-quarters

War
names

Three

time, the profitability of this mer¬
ger since the ball point pen busi¬
ness is notoriously a highly com¬
trade petitive one. Paper Mate is the
Valet largest American producer of ball
point pens and this division fits

product
Gillette,

used,

are

and Tech.

Actually Gillette has three main

of sales

26%

and

(3) Paper Mate ball point
pens acocunting for the remain¬
ing 9%.
The Gillette Safety

had

Sales of
new,

able

record

its

successful

modern

is researchhas five re¬
search laboratories, spent $4 mil¬
lion, in this area last year, and

Razor Divi¬
in 1959.

will

Gillette

increase

the

outlay for 1960.

Research not only includes refine¬

including the

ment

widely - advertised, adjust¬
one, blades and Foamy Shav¬

ing Cream all expanded to
highs and the outlook is

most

companies,

year

razors,

Gillette

demand.

minded. The company

Shaving Products

sion

with

the aforementioned
analysts, made money with Paper
Mate each year, and is busily at
work
improving its profit mar¬
gins.

preparation products for
(the Toni Division), which
for around

known

products

despite

has,

and hair

account

for

refill

timeless

shaving
creams
which
deliver
about 65% of sales; (2) cosmetics
women

Gillette's

with

well

preference

product lines: (1) shaving prod¬
ucts including razors, blades and

existing

and

products

new ones but is also de¬
improving manufacturing
engineering techniques all
along the line.
■
V Y■

ideating
voted to

new

and.

still

brighter for this year. After about
The advertising genius of .Gil¬
five years of intensive research1
Sports¬
Gillette introduced this past Jan¬ lette is world renowned.
men
are
never allowed
to forget
uary an amazing new blade called
-

profits. Gillette

its

had

of money

able

war

bate for Gillette.

It's

addition there

split

was

and

1950

another

months,

taken

but

little

produce than the standard blade
although it commands a premium
retail price.
The expanded sales,
and higher profit margins created
by the Super Blue Blade are ex¬
pected to propel Gillette earnings
to a new peak for this year.
And
that possibility should
continue
to interest present and potential
shareholders.

;

Toni Division

Toni

The

chased
to

Due

Company

1948

the

for

rising

was

pur¬

$20 million.
popularity of

"look sharp"
ly in 1960.

frequent¬

Another facet of Gillette's oper¬

ations that offers

vista of expan¬

1957

division, founded in

manufacture

proprietary drugs.

and

Under

market

year.
The
87 V2.

ar¬

division now markets
Thorexin cough remedy and cold
capsules. Addition of new drug
pany-this

products, over time, would seem
highly probable.
Investors who
have followed
Gillette common for any length of

some

These

there.

near

reflect

indicated rise in

$3.75

around

per

$3.34 last year to

for

1960.

discounted

has

* be

for GS was
quotation is
figures seem

its

Whether
pleasing

prospects too heavily is a legiti¬
question. But that the stock
is solid equity with a perceptible
growth factor, nobody can deny.

mate

COLUMBUS,
Group

Valley

Cincinnati,
Governor

Howard

Dennis

■'

25 Years,

Stock

REgent 2-1611

dis¬

but

for

manufacturers

July—for

general.

eighth

the

month—new

ran

below

sales.

Thus backlogs

continued to recede
and at the end of July were the
since

lowest

late

1958.

worrisome

The
of

the

manufac¬

adjusted,

months to
tion

whether the reduc¬

see

Should

continues.

stocks

liquidation cease—still a definite
possibility — the general business
outlook
would
improve.
Con¬
versely, signs that liquidation was
becoming more pronounced would
have

distinctly unfavorable impli¬

cations.

of the

one

features

per¬

anticipated.. It • will be important
to watch i n v e ntory statistics
closely
for
the
next
several

The various

indications of lack

of buoyancy

in the economy sug¬
gest that GNP probably will not
show a significant rise for the
third

$29.4

$700 million
from June. Whereas the declining

of apparent

tendency

decline for the

billion,

down

July

durable

spread

goods sector

to
as

the

non¬

well. Con¬

there

quarter. Indeed, in the light
inventory tendencies,
is

of a slight
Consumer
spending for goods and services
as
a
whole and capital spending
by business have been high, but
neither

possibility

has

period.

shown

any

marked
outlays

expansion.

will almost certainly be higher

one

the

level.

of
so

The

total

props

relatively good
industrial

pro¬

far this year has been

Governmental

the quarter and exports may
show
in

another

these

for

well

gain, but increases

probably

areas

won't

fully counterbalance the inventory

possible mainly because declining weakness.
Housing expenditures in
production in durables as ,a whole
the third quarter may prove a
has been offset by rising output of
disappointment. There were indi¬
soft goods.

3-year term,
served

the

consecutive
received

orders

manufacturers

duction

elected to

cations in the second quarter

Inventory Adjustment

educa¬

member of the

building

Hurting GNP

executive

activity

that

stabilizing

was

com¬

He entered the investment

mittee.

The announcement

was

3 ESTABLISHED 18941;

C. B. Rhodes
SAN

Charles
a

B. Rhodes is

securities

at 220

Opens

FRANCISCO,
business

STATE AND

Calif. —
engaging in

from

Montgomery Street.

offices

MUNICIPAL BONDS

CORPORATE BONDS

made by

Ralph Elam, of Sweney Cartwright
& Co., Columbus, Chairman of the
Ohio Valley Group.
The group
"serves central and southern Ohio,
including Cincinnati, Columbus
and Dayton, and all of Kentucky.

Elmira, N. Y.
Phone

Declining

Still

only in steel

appointing not

showing

Ohio Co.,

cinnati Regional Manager for C. J.
Devine and Co., New York:

Exchange

159-167 Lake St.

business might stop short of actual

banking field in 1920 and is Cin¬

Rockwell-Gould Co., Inc.
Member Midwest

by postwar standards, there was
good reason until recently to be¬
by

after its extended decline, but in
tion, member¬
Inventory adjustment, which has
ship and pro¬
been in progress all year, now ap¬ July—the latest month for which
gram
committees of the Ohio
pears to have entered a new phase. data are available—a sharp furValley Group IBA and is currently

'■~

Backlogs

Order experience has been

record

President of

Howard H. Banker

Associated With

•

which
have been sustaining the index of
industrial production at a near-

Murphy, Vice-

I '

;

lieve that inventory adjustment

inclined to regard
orders this

are

inventory-to-sales ratios
considered generally satisfactory

the

trend.

With

disturb

succeeds

NORMAN M. FAHR

break

tinuation of this movement would

organization.

now

Order

ness

national

the

times

this

orders in previous
months was pretty much confined
Banker,
to durable-goods industries, weak¬

America

has at various

over

City, but it is impossible as
assess the significance of

yet

turers' new orders in July totaled

Ohio —The Ohio
of the Investment

Association

elected

has

was

Corp. for

York

improvement in

Seasonally

By Ohio Val. IBA

Banker, who

associated with American LaFrance

by $700 million. In the
sharp rise

rose

occurred in business loans in New

business situation.

Columbus. Mr.

was

loans

final week of August, a

In¬

longer, since the in¬

seen.

most

Banker Named

The

Who

much

sistence of this trend is

We Are Pleased to Announce That

been

recession low of 1958. As a conse¬

number

Yv.;' *i

year's high
The current

Bankers

rangement with the Upjohn Com¬

member banks decreased by
$1,150 million. This was in
contrast to experience in the com¬
parable period of 1959, when such

appears

quence,^4hey

sion for the future is the Gillette
Laboratories

had

that

materialized.

not

believed

was

will be asked to

even more

liquidation. Apparently it hasn't,
25,000 to 40,000 in the past fall as a virtual certainty. Whether and this sugggests that the retard¬
seven years arid three major mu-" it will prove sufficient to warrant ing influence of the adjustment on
tual funds are reported to have
a
rise in steel output of normal gross national product may persist
added
Gillette to
portfolio this autumn proportions remains to longer than had been previously

costs

business

about

ventory level at the end of August

from

that

look

increased

have

ers

from

doubt that

tinue

•

good

appears

ing

part of their needs. Steel makers
doubt that this practice can con¬

to like the view. Sharehold¬

seem

scale

moderate

have continued to draw on

Sophisticated stock buyers who
have

to
first time,
actual net liquidation of stocks on

that steel users
previ¬
ously accumulated stocks to meet

stead, it

hinted
within the next
rumor that manage¬

has

summer

1955,

ment has denied.

orders

crease

2-for-l stock

again in

period

summer

have witnessed, for the

widely expected to appear by late

split

advertising in 1959; and there is
no

of net over the

models to be introduced this fall.

Output prospects are also uncer¬
tain in the case of steel. The in¬

but

and board room gossip has

most attractive
the Company standpoint in
is

and

cessors,

long

Present rate is $2.50.

decade.

49c)

events,

past 15 years and there were six
dividend
increases
in the
1950

recognized by tens of millions of
men
throughout the world.
Al¬
together Gillette spent about 17%
of sales—almost $36 million—on

10 for

athletic

major

general. July data show this to be
the case, and there are indications
ran below the pace a year earlier,
that
liquidation may have con¬
continuing the weak pattern which
tinued into August. Bank loans,
emerged in
July. As a result,
for example, showed a declining
dealers' stocks of unsold cars re¬
trend. From the beginning of July
main
uncomfortably
large
and
could be an obstacle to sustained through the third week of August,
business loans of weekly report¬
high-level production of the new

The average pay¬

generous one.

out has been 70%

it has

instead

for

(10

only

not

"cleanup"

the

far

lion in the second quarter.
'

ing the first two-thirds of August

We mentioned the long dividend*
record.

1960model automobiles has been dis¬
So

annual rate of $11

in the first quarter, the
rate of accumulation fell to $5 bil¬
billion

'The

year.

appointing. Sales of new cars dur¬

Dividends

terrific seller and is
stocked by 99% of all American
drug stores. It affords a smoother,
closer shave than any of its prede¬

69c

proved

price

com¬

increased at

the rest of the

for
•

chest available for merg¬

share net from

premium

hesitancy, extending the
element of uncertainty which has
arisen as to the economic outlook
tone

purposes

merger

Whereas total business inventories

show over-all activity
high levels, continue to carry a

as well.
Any high
profit quality product that can be
sold in a drug store is legitimate
er

reports,

business

Late-summer

;

slowing

down in the rate of accumulation.

while they

over $51 million in net
capital which is plenty
for operations and a siz¬

working

year-end the

tion of stocks but rather a

cial conditions that:

since its first

1959

and King
Gillette's face would be instantly

brings

September Survey, the Mor¬ During the first half of the year,
Guaranty Trust Co. of this the adjustment for most businesses
city reports on business and finan¬ did not involve actual net liquida-

the

pany

/i.

.....

gan

business, 1906.
In good
times or bad, men want to look
presentable and they do not pro¬
pose to lose an order, a job or a
social advantage "by a whisker."
At

.<.*«

In its

year

Super Blue Blade. While this

common

Commodity Price Index
>

Financially, Gillette has been a
magnificent performer. It has no
funded debt and has paid divi¬

Gillette in the broadcasts of many

the

TRADE and INDUSTRY

Y Financial Strength

dends

Failures

Business

30% in

earns

net before taxes.
•

Food Price Index
Auto Production

stantly

advertising, world-wide merchandising, repeat sales,

Retail Trade

The State of

but displays a num¬
growth characteristics as
This is due to the con¬

well.

Carloadings

divi¬

broadening product list,
rising standards of living which
emphasizes good grooming, and
the high conversion rate of sales

for its mass production,
and
invested capital.

Viewing the stock of a company famous
extensive

Steel Production
Electric Output

consistently

payer,

ber

Thursday, September 15, 1960

this

that

reliable

and

earner

dend

feel
a

Jine

Economist

By Dr. Ira U. Cobleigh, Enterprise

come

equity is not only

LOCAL STOCKS

The
N.

Robinson-Humphrey
"

^>1'

RHODES-HAVERTY BLDG.

Company,Inc.^
...»

ATLANTA 3, GEORGIA

JAckson 1-0316

Volume

ther

drop

Bank

Last Year

What It Would Cost Britain

last week

the

ended

week

Saturday,
-

Sept. 10, clearings for all cities of
the

United

States

which

for

obtain

weekly clear¬
ings will be 10.7% above those of
the corresponding week last year.
Our preliminary totals stand
at
$21,569,773,705
against
$19,477,679,677 for the same week in 1959.
possible

Our

comparative summary for the
leading money centers for the
Sept. 10th week follows:
(000s omitted)——,

p:
New

York—

Chicago

1960

efficient heat

969,449
826,000

—

589,806

540,639

9.1

Automotive

Buying
Hits

Steel

British

cost

excluded from, and Britain

were

about to meet in London, and the

of the United Kingdom
towards
trade
relations
with
Western Europe will be the main

attitude

topic

industry

extent

will

Australia

the

significant upturn in
again,

This means that October may *nS
European Common Marindustry buying of
October shipment have to be written off as a re- ket.
It now seems that the Common
is at the highest volume for many covery month, just as September
was a few weeks ago, the national
Market's attitude towards British
months, Steel magazine said.
Automotive

sheet

steel

for

Some automotive tonnage

origi¬
August
from the

joined, the ECM.

•

for

late

metalworking weekly comments,

metalworking weekly said

finished

demand

steel

increas¬

ing slowly, with steelmen booking
small orders more actively..One

with

trade

Commonwealth

the

der

receipts gained for four con¬
secutive weeks; the latest week's
tonnage was the best since Feb¬
the

tude

statistics

have

lished showing that

been

would

pub-

the value of

magazine
magazine

The
ine

that
inat

savs
says

pcessioq. ^q^
longer be classed
correction

period..
have

.can no

act

been

the

it's believed
that buying, at least for prompt
shipments, can't be put off much

con-

The

would

Those in favor of joining the
Common Market at all costs argue
that in view of the declining im-

munist political and economic
fluence in said countries.

cent

capacity) when the summonths passed and the inven-

mer

correction

tory

ended.

the

This

that

order placement is
August's by at
10%, but there is still doubt
that September steelmaking op¬
erations will exceed the August
level.

time.

September

top

least

Last

national ingot pro¬
estimated at 1,441,000

was

averaged
'50.6%
compared with 52%
the
preceding week. Part of the drop
net

tons. The ingot rate

due

was

Labor
.

curtailments

over

Day.

Quick

recovery

erations

may

rail

strikes.

and

consumers

of national op¬
stymied by the
steel

Some

have

shippers

been

incon¬

by
the Pennsylvania
Railroad strike. In general, though,
venienced

diversion
has

much

been

shipments
In

the East,

for

the

recovery

..."

American

liable to be affected..it

n^fely^between*! Inl

^jLriesTcomS'Ltt

magazine lists these factors
significant in the low state of

steel

operations:

Other than
ditional

big

wnnH

steel

users

are

not

makersfwho have inventory

probrailroads
which, with poor profit showings,
are
not replacing and repairing
rolling stock more than the abof

their

and

own,

There

are

stimulate

the

spell

would

preference

industries.

What

ruin
is

even

1"istirl

Charles

admit

artificial

buying,

such

McKinnon Admit
Thomson

McKinnon,

seems

J. Jiskoot to

partnership.

Vi'

ft--*'

Continued

page

the

the soPhistrY of statisticians, even
thouSh the publication of the
above figures influenced the at-

Dreferential

elaborating

formula

the

tiations which
tion

To Admit Stout

svsteni

concerned,

Md.—Robert

BALTIMORE,

pleased to

announce

Sons, South & Redwood
Streets, members of the New York
and Philadelphia-Baltimore Stock

Oct.

Exchanges,

Charles

Stout

will admit

partnership.

Joins Shearson,

Hammill

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.

Infante

has

Shearson,

joined

Hammill

Grand

South

—•

Co.,

Avenue.

Stockholm

lead

FIRST

& Co.

Incorporated.

CORPORATION OF MEMPHIS, TENNESSEE

nego¬

to the forma¬

ANNOUNCES THE OPENING

should

about

OF ANOTHER

SUBSIDIARY

our

Brady
us

Trading Department

exporting
Common
tial

;

1930
•

Members New York Security Dealers Association

37 Wall

Si.,-New York

?.•

Direct Wires

Tel. IIAnoyer 2-4850

DEPOSIT

the

BANK

BUILDING

JACKSON, MISSISSIPPI

that in any case the volume

before this obvious solution
become
acceptable
to

would

France,

and possibly other Com¬

CORPORATION

THIS

MUNICIPAL

Market countries.

Philadelphia direct phone WAInut 2-1514

GUARANTY

preferen¬

gible. It will take some time, how¬

mon

Principal Cities

renounce

products

Market under

BANKERS

of British land products imported
by the Common Market is negliever,

such

Corporation
INVESTMENT

arrangements, for the simple

reason
-

ESTABLISHED

First .Jackson Securities

possibility of abus¬
ing the system of certificates of
origin. In any case as far as land
products
are
concerned Britain
could well undertake to

distrust¬

the

Growing Public Opinion for ECM
Meanwhile .pressure,

in Britain

to induce the Government to sign

BONDS

COMPETITION

WILL UNDERWRITE AND
IN

TH EL STATE

WITH

520
was

previously with John J. Keen an

acceptable

why the countries of the Common

that

ful

has become associated with

Edward
staff

the

Market

Mr. John A.

Gar¬

rett

European Free Trade
Association.
There
is no reason
are

.probable that respon-

continue

There was no difficulty: .whatso-'

Robert Garrett

allow themselves to be mislead by

The main objection to this on the titude of the British Press to an
Common Market is amazing degree. Any agreement
.on^ these products are in
th
Common Market would
Britain they could find their way
un+deF +the gu*se of Bnut/rlsh1 prod~

ever

Broad¬

New Yok City, members of
the New York Stock Exchange,
on October 1 Will admit Lodewyk

way,

That problem has its answer in
the form of certificates of origin.

factors

partnership.

Thomson &

sible Quarters in Britain will not

agriculture is

hi Pfn°VpvH,idP

hand

will

ucts mto the Common Market.

solute minimum.

®tain

* gefa«

buying steel in any great quantity.

lems

such

automotive, the tra-

Wynn,

Jr.,

October

com-

petitors even under existing arrangements. The
elimination of

tralian land products. The only

The

trucks
too

effected

difficulty.

without

looked

now

week,

duction

Market is of course, entirely uri- more important, under the inacceptable to France and other tegrated tariff of the Common
countries of the Common Market. Market,
Britain
would
impose
The small farms in France would duties on raw materials and food
be entirely unable to face the from the Commonwealth, which
competition of Canadian or Aus- are at present free of duty.

major, longterm
improvement may now be
out of the question this year. In
some
steel circles, next March is
means

Sparks & Co., 120 Broad¬
New York City, members of
the New York and PhiladelphiaBaltimore
Stock
Exchanges, on

discrepancies as to the extent to
agriculture. which particular Commonwealth
e
particular commodi-

British

however, as far as trading with
the Commonwealth is concerned,
The idea of admitting Common—

fact

way,

agriculture

British

wealth products into the Common

The

nnar-

•

■expected

^ position totally different, =tn^ whic^c^^a^^oM
Suited Compromise
The
against Western European

countries
Com¬
in¬

African
the way

open

J. W. Sparks Co.
To Admit Partner

per

likelihood of much stock rebuild-- that this did not happen put
blame on steel consumption.
•

, .

confi-^eemenf in that sphere.

Industry had

steel

newly-created

resistance to European agricul- ties are
tural integration also reinforces

most

elimination

relation

with between 6 and 7% in 1948.

longer. Until delivery promises
tighten,
however,
there's
little
•ing.

ceptable

entirelv

The strengthening

Cut-backs, ,;in

Commonwealth import compared

sumption of steei has not snapped

sumption is running ahead of in¬
coming shipments,

■

inventory

duties

resulting

sense

reduction

wealth exports conceals wide

would

steel buying. Con¬

on new

the
xne

opposite

imports
Commonwealth exports admitted
to Britain under Commonwealth from Western Europe.
preference represented in 1957
Last, but by no means least, the
only between 4 and 5% of total penalizing of exports of the

the likelihood of adopting a sys-

expected inventories.

than offset the effect

from

doubt pending further mvestigation- The weighted average value
of preferences to total Common-

however, that West German resistance to agricultural integra-

new

significant factor, but actual

still

stocks

Consumer

the

better-than-

with

at
very
low duties would
is prepared cheerfully to jettison present grave disadvantages. It
Commonwealth trade for the sake would increase the cost of living
of being admitted to the Common and the cost of production and

tion is strong enough to remove

into

went

season

orders aret inventories

Another mill's
April.

best since

damper

model

which

free

but vocal section of public opinion ent

automakers

materials

raw

present! admitted

the dotted line of the Rome duty and the increase of duties on
Treaty is on the increase. A small those which are admitted at pres¬

slight seasonal upturn
in orders, characterized by greater
volume of orders, but for smaller
tonnages. Of the major markets,

mill reports daily or¬

Midwestern

ruary.

There is

and

constitutes the only really grave portance of preference its abanobstacle to an agreement. Hitherto donment would not consist of a
delivery is going out
the opposition for British agricul- mjUor blow to the Commonwealth
mills. That means September wili
tural interests to being sacrificed
Whenever conclusions based on
experience a noticeable pickup in
deliveries. Generally, develop¬ only the automotive industry and for the sake of European agricul- statistics are in flagrant conflict
its suppliers are taking anything tural
integration was also con- with those based on common sense
ments in autos will point the way
like _.a respectable tonnage.
And sidered -a more or less equally
ls on the whole advisable to
for steel the rest of this year.
this is less than expected because important obstacle. It now seems, give the latter the benefit of the
The
scheduled

nally

purely British pQint of
the imposition of duties

food

New Market. In support of their atti-

exert

utmost pressure to prevent the
British Government from going
too far in sacrificing Commonwealth trade for the sake of join-

In the absence of any new buya

discussions.

their

Zealand, in particular and to a less

Agam ueierrea

ing trends,

From

view too,

are

and

countries.

What Would Happen in Africa?

living and to the growth of newly-created African

the Commonwealth

steel operations is set back
The Iron Age reports.

Sheet

argument

countries, who must export in order to stand up to USSR inroads, if

+11.5

Uptrend

the

LONDON, Eng. — The Commongrowing market wealth
Finance
Ministers
are

guards the vital interests of Com¬
monwealth

Einzig characterizes the data used in support
misleading. He asks what would happen to the

predict a potential for more than
$100 million worth of electron
beam welding equipment alone.'

3.5

Boston

argument

source.

for

797,000

of being
European Common Market? Answering the influential
of the declining importance of "preference" trade with

the Commonwealth, Dr.

that the electron
process
is now a

Experts see a
metalworking vequipment

Upturn

1,081,049

Should the British jettison the Commonwealth for the sake
admitted to the

production tool. Electrons are ra¬
diated from a filament (normally
tungsten)
and accelerated elec¬
trically to provide a pure, highly

+17.1

Philadelphia
____

reports

bombardment

1959

$11,789,013 $10,078,110

—_

Steel

tions in South Africa.

By Paul Einzig

electrons, streaking
year ago. Preliminary figures com¬ through a vacuum at speeds as
piled by the Chronicle, based upon high as 100,000 miles a second, is
telegraphic advices from the chief being used to purify metals, in
cities of the country, indicate that
welding, and in machining.'
'
'
for

is making
on-the-spot study of eco¬
nomic and political condi¬

to $32.33 a gross ton.

beam

a. Wilfred May

heavy melting steel declined 340

this week will
increase compared with a

clearings

(1049)

export has

slightly hampered.

Scrap
prices
are
fluctuating,
pending a revival in mill buying.
Steel's price composite on No. 1

Above

Corresponding Week

The Commercial and Financial Chronicle

been

Clearings for Sept. 10th
Up 10.7%

movement of scrap for

nonfarm
housing
picture.

Week

show

5986

clouded the

starts

Number

192

DISTRIBUTE

MISSISSIPPI

THE PARENT COMPANY.

The Commercial and Financial

2001) offered Sept. 14 were sought

TAX-EXEMPT BOND MARKET

by several bidders. All of the is¬
sues
involved, excepting $1,130,-

DONALD D. MACKEY

000

York,

high

The

Francisco

San

tax-exempt bond,

The level of the

Attractive

Issue

Investors

•

not been given any
test
since
reaching its

has

•;/.'

Market
leadership
was
again
during the middle of. apparent this week when a large
August.
The moderately heavy group headed by the Bank of
new
issue volume of June and America, Harris Trust and Sav¬
July was disposed of rather easily ings Bank, The First National City
and
the
Bankers- Trust
by "dealers through money market' Bank,
encouragement as well as through1 Company, was successful bidder
a
generally favorable price and; for $21,455,000 City and County
of
San
Francisco,
Calif.. serial
yield structure. Even though
bonds.
This
pre¬
dealers
were
progressively dis~ (1961 - 1980)
counting the easier money situa-' eminently fine credit, combining
both city and county corporations,
tion, yields were still generous:

investment view¬

from almost any

point. .'

■''■ V'A

bidding competition.
As
against secondary

-yV

Price Rise

Substantial

relatively

attracts

always

offerings,

this

issue

strong
*{
market
moder¬

was

the

Bank

groups.

also depend¬

Suffolk

has

been

not

there is evidence that
heavy volume is imminent. With
year,

remains

-approximately

Fast Movers

$400,000,000. The $75,000,000 Cali¬
On Tuesday, Sept. 13, the Penn¬ fornia total will be comprised of
dur¬
investors sylvania State Highway- and $50,000,000 for veterans' aid and

than

weeks

six

did

note
to be disinterest
dismally

dealers
seems

for

higher

points

two

about

and

ago

that there
on the part,

issue
ture

secured

bonds

payable from lease rentals be¬
the
Authority
and
the
State and other highway revenues

are

many

contrived to meet the debt service

quick to sense this market unsettlement and in their bidding dur¬

other

and

virtually

requirements.

credit

state

not in the

A. A
A-,-AA
dealers
have
been

However,

well

These

legal

former

and

including

by Drexel &
major par¬

ticipants, The First Boston Corp.,

are

school

The

bonds.

self-sustaining

and, to an extent the latter will be
likewise.

f
2,398,000 -1961-1980

reported

is $365,987,000 as
against the total a week ago of
$329,084,500. The trend over the
on

Sept.

last month

has

been abruptly up¬

issue volume
increases, pricing must continue
to be realistically responsive.
The dollar quoted turnpike and
and,

new

11:00 a.m.

1,650,000

1963-1988

8:00

1,250,000

1961-1985

Noon

10,000,000

—1_

1962-2000
1961-1989

11:00 a.m.
Noon

3,551,000

1,780,000

1963-2000

1961-1971
1961-1980

8:00 p.m.
Noon
,

1961-1985
1961-1973

11:00 a.m.
10:30 a.m.

1962-1980

11:00

1961-1980

11:00 a.m.

1962-2000
1961-1980
1962-1990
1962-1986

' •
8:00
11:00
1:00
1:00

Colorado

Sept. 20 (Tuesday)

No.

Sch.

Dist..

the

a.m.

1,000,000

1, Wisconsin

a.m.

Newport Harbor Union High Sch.
,

4,270,000

Dist., California

Pen Argyle Area Joint

School*

Springfield, Massachusetts
Beach, FloridaYoungstown, Ohio

;

2,035,000
3,750,000
3,000,000
6,000,000

Authority, Pennsylvania

System

p.m.

a.m.
p.m.

p.m.

Sept. 21 (Wednesday)
Central Delaware Co.

8:00 p.m.

1963-2000

1,050,000

Auth., Pa.

35,440,000
District, Pa

Salina & Clay Central School
No. 1, New York™.

—

Dist.

■

——

Dist., Conn
School District, Ohio

11:00

a.m.

1961-1975

11:00

a.m.

1961-1985
1961-1980
1962-1981

2:00 p.m.
11:00 a.m.
1:00 p.m.

•

West Haven Sch.

1983-1980

3,200,000

Connecticut
Lancaster School

week

past

9:30

25,000,000
10,750,000

Michigan
Milwaukee, Wisconsin
Monomonie, Etc. Joint

•,

2,055,000
5,700,000
2,000,000

price adjust¬ Smith, Barney & Co., Lehman toll road revenue issues have fluc¬ Wocster
and / Eastman
Dillon, tuated little during the past week.
the longer Brothers,
•'•-Sept. 22 (Thursday)
term
bonds, have more closely- Union Securities, is offering the The Smith, Barney & Co. turnpike
12,335,000 ; 1961-1989
represented the level- J"of •'? early bonds at prices to yield 1.50% to index as reported Sept. 8 was Buffalo, New York—.
Honolulu City and County, Hawaii
8,000,000
1963-1980
August rather than the marked- 3.30%. Popular in Pennsylvania 3.82%. On Sept. 1, it was 3.84%.
because
of their freedom
from July and August revenue reports Orchard Park, etc., Central School up level obtaining later in August
certain
state
and
District, No. 1, New York
2,316,000
1961-1987
city property have been encouraging and will
and early September.
;
:
and millage taxation, the bonds help for even greater market sta¬ Roseville, Minnesota
1.000,000
1961-1980
ing

p.m.

Sept. 19 (Monday)
Bangor Township Sch. Dist., Mich. > 1,200,000
Kenosha, Wisconsin
4,120,000

Western State College of

Vero

Blue List total

The

ward

sense.

The group headed
Co,

This is
although

$25,000,000

tween

much heavier volume of new issue

offerings.

bids
(1961-1980)

received

$10,000,000 serial

bonds.

recent new
offerings at a seasonal junc¬
that normally
ushers in a
in

investors

Authority

the market av-^ Bridge

observe that

erages

and

Dealers

July.

ing

2:00 p.m.
10:00 a.m.

Sept. 16 (Friday)

expanded,

yet, to the sizable proportions
that usually generate at tnis time

oughly exploited price-wise
now

Rico
County, New York

h Although the official new issue
calendar

1961-1989
1961-1979

Aqueduct and Sewer

A. Authority, Puerto

Offering

Rico

Puerto

California Announces New

dar
Other

2,690,000
2,000,000

Batavia City School District N. Y.
;• ; '•
Black Hawk County, Iowa——
guaranteed Bridgewater-Raynham Reg. Sch.
bonds seem relatively well priced 4
.Dist., Massachusetts.—
and should be "attractive, particu¬
Nankin Mills School District, Mich
larly to individual Investors and Prince William' County, Occoquan- "
fiduciaries generally.'
"' "/
/Woodbridge Sanitary Dist., Va. 1

when the discount ately priced and looked relatively the announcement that the State
rate was lowered, bond dealers, in cheap. Many investors were quick of California Will accept bids for
the absence of new issue volume to respond and a balance of only $75,000,000 /general obligation se¬
during August, continued to mark $7,000,000 is in account at present. rial bonds on Sept. 28, the calen¬
prices even though the rate
changes
had
been quite thor¬

amount

ing on the issue.*
c These
highly rated

However,

the

bear

from 1.50% to 3.60%?

Larger Issues Scheduled For Sale
In

•

3%%
; issue

apex

will

issues

made

bids

Dealer

combined

recent

Thursday, September 15, 1960

Information, where available, includes name of borrower,
of issue, maturity scale, and hour at which bids
coupons of
will be opened,
Y
i
or 3V2%, depending on the
and will be priced to yield
Sept. 15 (Thursday)

the

serious

following tabulations we list the bond issues of
Pennsylvania Housing
bonds, were awarded $1,000,000 or more for which specific sale dates have been set.

Authority

market

Chronicle

(1050)

ments, particularly for

Performance on

Good

the

The

Thruways

York

New

State

been

have

than

less

Thruway

Another

guaranteed serial
(1985 - 1995)
bonds on Thursday, Sept. 8. Judg¬

market

the recent action of the
bond market, one might have ex¬

least two bids for this
issue of Thruway
guaran¬

pected
final
teed

obligations.

consultations,

After thorough
joint single bid

proffered by the two tradi¬
tional bidding groups.
V The
State
Comptroller
very
was

$3,900,000

account

for

bility
ment

this

important

invest¬

the

indexes

Independent

high
won

Trust

ris

numerous

bids and

by the group composed

Northern

was

County,
Okla.,
School District # 1.
grade
issue
(1962-

1975) attracted
was

represented

averages,

Trust

and

Co., the Har¬
Savings Bank, The

Index

Higher

Chronicle's

1961-1975
1962-1970

1961-1990
1966-2000

yield

>1962-1995
1962-1987

1962-1990

Our

1:00 p.m.

Index

....

week.

Noon
11:00 a.m.
10:30 a.m.
10:00 a.m.

Sept. 27 (Tuesday)

is 3.192% on Athens, Georgia
:
v'
1,650,000
Sept. 14 as against 3.177% a week Cleveland, Ohio—
7,000,000
ago. This, to an appropriate ex¬
Detroit, Michigan
>
8,500,000
tent, represents the easier senti¬ Detroit School District, Michigan-10,000,000
ment expressed in the lower new
Eastern Kentucky State College,
issue
bidding
during
the
past
Kentucky
2,000,000

bond

8:00 p.m.
7:30 p.m.

1,174,000
1,800,000

Edina,' Minnesota

Municipal

and

State

Financial

and

11:00 a.m.
8:00 p.m.
8:00 p.m.

Sept. 26 (Monday)

East Orange, New Jersey

index

composed

outstanding rather than new issue

Northeast Sacramento County

■

Sanitary District, Calif
4,000,000
and
is
consequently
Chase Manhattan Bank, The First offerings
Racine, Wisconsin
3,732,000
bid,
even National City Bank, the Bankers less volatile.
Rockingham County, N. C—-:
'
2,000,000
though it represented the pricing Trust Co., and others. Priced to
Stanton Local School Dist., Ohio__
1,597,000
of this long term issue for retail
yield from 1.90% to 3.25%, more
Wisconsin State Colleges, Wise
2,700,000
at levels considerably lower than than half this attractively priced
Sept. 28 (Wednesday)
similar representations in the sec¬ issue was sold out of account on
California
ondary market. Despite this pur¬ initial offering.
75,000,000
:
Louisiana
portedly bargain pricing, the of¬
15,000,000
Allegheny County, Pa., a credit
fering was not a sell-out as many which
1,194,500
always
attracts
bidding DALLAS, Texas—Rauscher, Pierce Topeka, Kansas-—
thought it would be. On initial above and
Westfield School District, N. J.—
1,000,000
beyond the stark sta¬ & Co., Inc., Mercantile Dallas
offering ■ about
$32,000,000
was tistical factors
involved, awarded Building, members of the New

wisely

the

accepted

8:00 a.m.

1962-1985

4,785,000

Dist., N. J—
;

Commercial

The

pric¬

Tulsa

$4,800,000
This

that

and

Yield

reaching

reflected

week

than

lower

ing

issue

sizable

this

West Essex Reg. Sch.

category.

balance at his writing.

Authority offered $50,000,000 State

ing

quite well taken, with

11:00 a.m.

Rauscher, Pierce

1961-1980
1963-1982
1962-1985
1961-1996

Names Officers

1961-1984

1961-1970
1962-1931

2:00
11:00
1:00
10:00

p.m.
a.m.

11:00 a.m.
11:00 a.'fh.
11:00 a.rq,

taken down from the account
at this

and,

writing, close to $16,000,000

remains

balance.

All factors

$5,400,000 serial (1961-1990) bonds
on

Sept. 13 to

group led by T;.e

First National City

being considered

Bank

and in¬

and

York

this to have been a good
performance. In the first instance,
the State showed good judgment
in
not
insisting on competitive
bids in

fair

moted

believe

been

justifying

the

case

award

before.

the managers exercised
in their judgment
of
that

had

been

projected

had

Secondly,
leadership

on
flimsy premises within
period.

MARKET

market

cluding

ance

investor

reception; the
being about $3,400,000.

(State)

Connecticut
New

brief

Jersey Highway Auth., Gtd.__
--

Pennsylvania (State)
(State)

Orleans,
Chicago, 111

L. Bayless

In the San An-*

Kocurek and

Arnold J. Kocurek have been pro¬
to

Senior

——_

—

—.

Heights, Ohio__

Fairbanks,

SERIAL
Maturity

ISSUES
Bid

1978-1980

3.55%

3.40%

1980-1982

3.25%

3.10%

1978-1980

3.15%

3.05%

1978-1979

3.00%

2.85%

—

Rockwell-Gould

Oct. 4

Street, members
Stock Exchange,
tive.

Mr. Fahr

of
as

was

the Midwest
a

formerly with
Corp. for

the American La France
over

25 years.

1978-1979

3.00%

2.85%

3V2%

1977-1980

3.25%

3.15%

33/4%

1978-1980

3.60%

3.50%

1980

3.35%

3.20%

3y2%

1980

34th

3.15%

3.55%

3.40%
3.40%

1980

3.75%

3.65%

September 14, 1960 Index=3.192%

1961-1980

8:00 p.m.

8:00 p.m.
8:00 p.m.

1961-1980

1,775,000

1961-1989

Oct. 5

(Wednesday)
1,

Lee

County, Florida
Los Angeles Department of Water
and Power, Calif
Washoe

John Joshua Co. Formed

1,870,000

Co., Nevada

1970-1984

2,000,000

1962-1980

12.000,000

7:45 p.m.
10:00 a.m.

—

1982-1990

9:00 a.m.

2,615,000

1962-1988

8:00 p.m.

1,400,000

1962-1999

11:00 a.m.

2,500,000

Oct. 10 (Monday)
CaJdwell-West Caldwell School

District, New Jersey
Michigan College of Mining &
Technology, Michigan
Port of Portland, Oregon—

John Joshua & Co., Inc. has been
formed with offices at 225 West

3.55%

7:30 p.m.
11:00 a.m.

2,000,000

District, Mich.//

representa¬

2.80%

3.25%

1981-1980

1,050,000 >1961-1980

(Tuesday)

California

well-Gould Co., Inc., 159-167 Lake

Noon
2:00 p.m.

2,100,000

Randolph Twp., New Jersey

School

11:00 a.m.

2,500,000

District, Wisconsin/
Plaquemines Parish, La.

Alameda Co. Water District No.

3.00%

1979

1981-1980

Clifton, New Jersey.—

1974-1975

1977

2000
1962-1976

1.000,000
1,500,000

Lakeview

has become associated with RockAsked

7,000,000

Alaska
Mount Horeb, Etc. Union High Sch.

Halpern to Vice-Presi¬

ELMIRA, N. Y.—Norman M. Fahr

314%

New York City, N. Y

Cleveland

Bridge Auth., Cal.-

N orman Fahr With

$48,900,000 Public Housing
Authority ..serial
issues
(1961-

3y4%

„—

La.

To'l

Vice-Presidents,

3V4%

(N. Y., N, Y.)
Calif—

James

to Vice-President;

tonio office, Louis J.

31/8%

—_

Baltimore, Md
Cincinnati, Ohio___
New

3%%

New Housing Auth.
Los Angeles,

office

California

The

33/4%

(State)

Houston

for Housing

3%%

—

and

President,

and Milton

Bonds

REPRESENTATIVE

New York (State)—_

Vermont

Competition

upward
a

bal¬

the

the pro¬

dent.
Keen

Rate

California

Harriman

Sept. 29 (Thursday)

Ex¬

Clyde Hawkins to Senior Vice-

Ripley & Co.,
Philadelphia National Bank,
Phelps, Fenn & Co.; Stone & Webr
ster Securities Corp., and others.
The offering has thus far met with

Stock

has announced

changes,
motion

Midwest

—

Oct. 17

Street, New York City, to Dallas, Texas
in a securities business.

(Monday)
4,000,000

—

2,000,000

1961-1980

1:45 p.m.

engage

Martin

Benis

Treasurer,
Secretary.

and

President

Oct.

and

Robert S. Persky,

Los

Angeles Co. Flood

District, California

(Tuesday)
A

Control

10,000„000

Volume

192

Number 5986

The Commercial and Financial Chronicle

$21,455,000

(1051)

& CountyCitySan Francisco
of
CALIFORNIA

6%, 2%%, 23A%, 2!/2%, 3%, 3%% and 1% Various Purpose Bonds
Dated October 1, I960

October1, J 961-80, incl.

Due

ISSUES, AMOUNTS, RATES,
Payment and Registration

MATURITIES AND YIELDS OR PRICES
(Accrued interest to be added)
•

$15,000,000 Hetch Hetchy Power Bonds—1955, Series G

Principal and semi-annuol interest (April I and October I) payable, at the option of the holder, at the office of the
Treasurer of the City and County of San Francisco, California, or at the fiscal
agency of the Cify and County in New
.......
York, N. Y. Coupon bonds in denomination of $1,000 -egistrobie oniy as to both principal and interest.

Due: $750,000 October V, 1961-80, Incl.

$5,000,000 School Bonds—1956, Series E
$330,000 October 1, 1971-75, incl.

;

•

Tax Exemption

In the opinion of counsel, interest payable by the City and County

„

$1,000,000 Playgrounds and Recreation Centers

Due: $335,000 October 1, 1961-70, Incl.

its bonds is exempt from all present Federal

and State of California personal income taxes under existing statutes, regulations and court decisions.

upon

Bonds—1955, Series E
Due: $70,000 October 1, 1961-65, Incl.
•

Legality for Investment

$65,000 October 1, 1966-75, incl.

We believe that these bonds

$455,000 Hospital Bonds—1954, Series E

savings banks, and in California for savings banks, subject to the legal limitations

Due: $35,000 October 1, 1961

$30,000 October 1*1^?-75, Incl.

Other

Hetchy
■

Purposes

Coupon

..Coupon.

Amount

Rote

$1,190,000

Rote

Other

Helch

Hetchy"
Yield
,

-•

Due

1961

1,185,000

1962

1,185,000

27, -1

1963

Yield

1.60%

27,

1964

2.15%

27,

1965

2.30%

2Vi

2.40%

1967

2.50%

100

2VJ v

1968

1,180,000

1969

for the
cisco

payment of said

23/4

1970

2.80%

public

moneys

upon all property within said City and County of San Fran¬
(except certain intangible personal property, which is taxable at'
without limitation of rate or amount;
'

rates)

2.80%

1971

2.90%

1972

2.95%

1,175,000

1973

100

Tax Gain,

These bonds will be

1,175,000

1974

'.*3.05%

1975

3.10%

750,000

1976

3V4

1977

.374

1978

existing regulations to amortize

•

3.20%

750,000

;

discount. Investors

value, and

par

required under

ore

•

premium poid thereon.

any

3.15%

750,000

Amortization of Premium

initially issued by the above named political1 subdivision at not less than their

taxable gain may accrue on bonds purchased at

3.05%

1,175,000

ioo

„

750,000

1979

750,000

1980

Legal Opinion

above

The
'

bonds

100

underwriters

are

offered when,

shown

not

whose

and if issued and

will

names

Orrlck,-Dahlquist, Herrington & Sutcliffe,

Bank of America

Harris Trust and

furnished

Savings Bank

fv.'1

The First National City Bank

N.T.&S.A.

.' •

-•

'My.

Attorneys.
/'

-.'.•r.M

The Chase Manhattan Bank

received

by the underwriters "listed below,

printed

request,

each bond.

Bankers Trust Company

Y.Y ''"'A-

Blyth & Co., Inc.

Harriman

'.'"^'^.y*

C. J. Devine & Co.

Ripley & Co.

Smith, Barney & Co.
A

Incorporated

Phelps, Fenn & Co.

Wells Fargo Bank

The Northern Trust Company

R. H. Moulton & Company

White, Weld & Co.

.•

Company
The First National Bank

Weeden&Co.
Incorporated

Ladenburg, Thalmann & Co*.

William R. Staats & Co.

Bacon, Whipple & Co.

Reynolds & Co.

Company

Schwabacher & Co.:

Kean, Taylor & Co.

;

Incorporated

Dempsey-Tegeler & Co.

r-"V,-.

Industrial National Bank of Providence

Kalman & Company, Inc.

Dallas Union Securities Co., Inc.

Lawson, Levy, Williams & Stern
>

Dittmar & Company,

A. E. Masten & Company

The Continental Bank and Trust
of Salt Lake

City National Bank and Trust Company

White-Phillips Company, Inc.

•

Company

Irving J. Rice & Company
'•*

Incorporated

Yates, Heitner & Woods
'

September 13, 1960

Cavalier & Otto

of Minneapolis

City, Okla.

Wells & Christensen

Cooley g-. Company

Incorporated

* G. G. Haas & Co.

Shuman, Agnew & Co.

Granbery, Marache & Co.

•

Hooker & Fay, Inc.i

Stern; Lauer & Co.

Green, Ellis & Anderson

Rodman & Renshaw

J. C. Wheat & Co.

Hailowell, Sulzberger, Jenks, Klrkland & Co.

Underwood, Neuhaus & Co.

Van Alstyne, Noel & Co.

Incorporated

Federation Bank and Trust Co,

Eikins, Morris, Stokes & Co.

A circular relating to these bonds may be obtained from any of the above underwriters,

Kenower, MacArthur & Co.

Thornton, Mohr and Farish,

Hill Richards & Co.

Schalfer, Necker & Co.

Arthur L. Wright & Co., Inc.

Northwestern National Bank
1

Oklahoma

Townscnd, Dabney & Tyson

R. D. White & Company

•

The First National Bank and Trust Company

of Boston

Davis, SKaggs & Co.

Trust Company of Georgia

Model, Roland & Stone

A. G. Edwards & Sons

The Provident Bank

Rockland-Atlas National Bank

First National Bank in Dallas

Spencer Trask & Co.

Seasongood & Mayer

Dreyfus & Co.

R. W. Pressprich & Co.

New York Hanseatic Corporation

Estabrook & Co:

•

of Seattle

Rotan, Mosle & Co.

'''

Incorporated

Chicago

Frantz Hutchinson.& Co.,,»Ginther & Company

;

Eldredge & Co.

J. A. Hogle & Co.

City

Reinholdt & Gardner

Mid-South Securities Co.

Inc.;

Seattle-First National Bank

.»

Crocker-Anglo National Bank

F. S. Moseley & Co.

Roosevelt & Cross

Fitzpatrick, Sullivan & Co.

The National Bank of Commerce;

■

Incorporated

of Dallas

;

other

Incorporated

;

Republic National Bank

Anderson & Strudwick

yV> Stern Brothers & Co.

Clark, Dodge & Co.

Co.;f- William Blair & Company
■

First Southwest Company

v;'

Wm. E. Pollock & Co., Inc.

•

A. M. Kidder & Co., Inc.

Incorporated

James A. Andrews & Co.

Shearson, Hammill &

of Oregon

J. Barth & Co., The Boatmen's National Bank
of St. Louis

Paine, Webber, Jackson & Curtis

security First National Bank

American Trust

;

well

The First Boston Corporation

of New York

Lehman Brothers

and

subject to opproval of legality by Messrs.
San Francisco, California, a copy of whose legal opinion will be

Not re-offered

;'yi '■

deposits

bonds and the interest thereon

2.60%

1,175,000

Sutro & Co.

for

security

2.70%

1,175,000

The

bank's invest-

subject to taxation by said City and County
limited

2.60%

2.70%

1,180,000

■

the amount of

Purpose and Security

2.40%

1,180,000

The Illinois

upon

for other funds which may be invested in

bonds, issued under provisions of the Charter of the City and County of San Francisco and the lawj of the State
of California for various purposes, in the
opinion of counsel constitute valid and legally binding obligations of the City
and County of San Francisco and the Board of
Supervisors thereof has power ond is obligated to levy ad valorem taxes

2.30%

1966

eligible

are

These

2.00%

1,185,000

1,180,000

trust funds and

California.

1.60%

1,185,000
1,180,000

legal investments in California for

legal investments for savings banks and

are

■

1.80%

2.00%

likewise

are

which

Price

1.80%

bonds

Purposes

Price

•

and

ment,

Hetch

legal investments in New York for savings banks and trust funds, in Connecticut for

are

Freeman & Company
as

well

Walter Stokes & Co.

Corporation

Prescott&Co.

other underwriters

not

Wagenseller & Durst, Inc.

shown whose

names

C. N. White & Co.

will be furnished

request.

Financial Chronicle

The Commercial and

(1052)

City Securities

Wall

Corporation, Circle Tower Indian¬
apolis 2, Ind.

Also

pany

DEALER-BROKER

UNDERSTOOD

FOLLOWING LITERATURE:

INTERESTED PARTIES THE

SEND

Notes

leading

Cameron

—Saunders

Industry

Ohio. Photography

—

Report—

Co.,

Hentz

Limited, 55

survey

Canada.

same

report is a

York

—

Securities

gases,

Canada

Financial—

Standard

ence

Co., 36 Wall Street, New
York 5, N. Y.
Bache &

Fire

Casualty

Lomb

area

for investment

Street, New York 5, N. Y.

—

Continental

reviews

Union

Co.,

rish
York

Brooks

Inc.

Inc., Ill Broadway, New
York 6, N. Y. In the same issue
are reviews of the Japanese Con¬
struction Industry, and Sugar Re¬
fining Industry. Also available are

reports on Kansai Electric Power
Co. Inc. and Chubu Electric Power
Co., Inc.

Japanese
a

list

the

—
Review of
securities including
top securities in

Economy

and

economy

the

market—Nikko

overseas

Japanese Stock Market

Second

Broadway,
the

available

Also

administrative

new

ment

6, N. Y.
discussion of

York

New

the

amend¬

investment
Japan and analyses of Sony,

law of

foreign

Mitsui Bussan, Fuji Electric Man¬

ufacturing,

Steel

Nippon

Tube,

Rayon, Toyota

Isuzu Motor, Toyo

Motor, Mitsui Chemical Industry,
and Kirin Breweries.
Natural

Package—Review—-

Gas

Wall

New

Street,

York

Over-the-Counter lendex

showing
son

counter

Folder

compari¬

the listed

industrial

used

Averages

—

up-to-date

between

stocks

Inc., 14
5, N. Y.

the

and

Pow-Jones

over-the-

industrial stocks used

Par-

the

issue are data

same

—

Report

Maid

Hardy

—

24,

Shoe

United

and

Electric

Gas

Rochester

randum

Johnson,

—

Lane,

Space

and

Savannah

and

South

Refining,

Sugar

•*

Solvents Corporation

Commercial

Marietta
Company— Food Fair Properties, Inc.—Analy¬
Charles A. Taggart & Co.,
Analysis—Walston & Co., Inc., 74 sis
Wall Street, New York 5, N. Y. 1516
Locust
Street, Philadelphia
Also
available
are
analyses
of 2, Pa.
United Shoe Machinery and a bul¬
Food Giant Markets — Report—
—

the

dividend

tax-free

status of California Oregon Power,
Pacific Power &

American

New

Light, and Port¬

Motors—Analysis—L. F.

Co.,

Shell Oil Company.

American

Report

—

Seating

Reynolds

Co.,

120

States

Insurance

Com¬

ada.

circulare

are

Also available L

State

York

thority

Bulletin

—

United

Salle

ing, Seattle 1, Wash.

—

Co., 1 Wall Street, New York 5,
available

Also

randa

memo¬

are

Page Hersey Tubes and

England Electric System.

New

Products

Gertsch

Woodcock,
French,

Inc.,

Inc.

Shield

Analysis

—

Fricke
&
South Broad

o y e r,

123

Street, Philadelphia
Green

Northrop

Helene

specialists in

We offer

than 500 securities.

professional and institutional investors

Plan

Richards

9, Pa.

Parker

Analysis—Auchincloss,

Redpath, 2 Broadway, New York
4, N. Y. Also available is a dis¬
cussion of Union Bag Camp Paper

and

Corp.

bulletin
^ '

color.

Techni¬

Inc.

—

Report

nation-wide private wire

Co.,

621

Engineering—Bulletin

Hammill

Co.,

system for the purchase or sale of blocks of over

NEW YORK

OFFICE MANAGER

Street,

Pittsburgh

Plate

Glass

Company

14 Wall

& Co.,

Street, New York 5, N. Y.
is an analysis ot

available

Gross National Product.

Company,

—Kentucky

South

320

n e

Inc.—Memorandum—

Saunders, Stiver & Co., Terminal
Tower

Building,

13,

Cleveland

Ohio.

TROSTER, SINGER & CO.
Member New York

Security Dealers Association

terested
office

Trinity Place, New York 6, N. Y.

o m p a

n y—

Teletype NY 1-376; 377; 378

opening a New York City
out-of-town member, or

Reynolds Metals—Report—Purcell

inquiries will be treated with
confidence.

the

New York.

Company, 61 Broad¬

6, N. Y.
Also
available is the September Mar¬
ket and Business Survey, which
also contains data on Ex-Cell-O,
New

way,

York

Milling

Machine,

Acme, Tomotor,

Analysis—J. A. Hogle
Wall

and

—

Report

Eppler,
Fidelity

—

Inc.,

Tower, Dallas

1, Texas.

Stroben Named

By Hayden, Stone
CHICAGO, 111. —Donald R. Stro¬
been

has

Chicago
Co.,

appointed

Hayden,

Stone

West

Jackson

Blvd.,

office
141

members

Navada

Co.,

Co., Inc.— Report

Exchange

Place, Jersey City 2, N. J.
Coast

Analysis —
&
Co., 42
Broadway, New York 4, N. Y.
P.

Corp.

of the

Chicago

and

Manager

Corporate t Department,

the

New

York Stock

formerly

was

Glore, Forgan &

its

as¬

Co.

Business

New

Underwriting Department.

AVAILABLE

Na¬
Cross

Street, New York 5, N. Y.

Sierra

Peter

Co.

Edwards

Light

Turner,

sociated with

F. Hutton &

South

Dl, Commercial and
Financial
Chronicle, 25 Park Place, New York
7, N. Y.

Co., 50 Broadway, New York 4,; Exchanges He

—W. C. Doehler Co., 15

firm.

Jewelry

Guerin

3, 111.

strictest
Box

HAnover 2-2400

New

non-member
All

for

and

Exchange business is in¬

Zale

ben
Insurance

Chicago
&

Power

Indsutries—Memorandum

Remco

San Diego Imperial Corporation-

all phases

New

and

Engineering

Sons, 409 North Eighth Street, St.
Louis 1, Mo.

Union

Company.

Over 30 years experience in
of the Over - The - Counter

Ap¬

—

memoranda

are

Memorandum—A.

—Analysis—W. E. Hutton

the

An¬

Los

14, Calif.

tional

AVAILABLE

Stock

Works

praisal—Woodcock, Moyer, Fricke
& French Inc., 123 South Broad
St.,
Philadelphia
9,
Pa.
Also

Wisconsin

geles

Cincinnati

Yrrk

Melpar Inc.

Jersey Natural Gas Co.

Spring

Ryder System, Inc.—Analysis—E.

the counter securities.

Machine

South

Records Inc.

—Shearson,

report

Schaevitz

Reserve

Spring Street, Los Angeles

and Liberty

Whitin

available

Fifth Strfeet, Louisville 2, Ky.

-14, Calif. Also available are anal¬
yses of Pabst Brewing Company

Insterstate

long experience and

Re¬

New York 6,

Analysis—Freehling, Meyerhoff &
Curtis Industries—Analy¬
Co., 120 South La Salle Street,

sis—Hill
South

are

and

Smelting

Fahnestock

Also

Co. and Denab Laboratorieis.

Company

fining Company, Minnesota & On¬

port—William R. Staats & Co., b^O

Advertising

Outdoor

Springs, Colo. Also available are
on Cryogenic Engineering

American

Street, Chicago 4, 111.

reports

Products

Oil

Universal

—Report—Carl M. Loeb, Rhoades
& Co., 42 Wall Street, New York
5, N. Y. Also available are data

Pacific Automation Products—Re¬

W., Atlanta 1, Ga.

—Copley and Company, Inc., 409
North Nevada Avenue, Colorado

OVER-THE-COUNTER

Corporation—An¬

Pacific

United

Company, Incorporated, 231 South
La

Company

Insurance

alysis—Blanchett, Hinton & Jones,
Inc., 1411 Fourth Avenue Build¬

Illinois

The

—

Broadway,

America—Report—Allied Invest¬
ment
Agency, 1559 West Devon
Avenue, Chicago 26, 111.

Au¬

Thruway
—

Memorandum

—

& Co., 120
York 5, N. Y.

New

19 Stocks With At¬
tractive Price Earnings Ratios.
New

Carbon

United

Marietta Street,

Company-

Broadway, New York 5, N. Y. Also
available is a report on United
States Steel Corporation.
American

Co., 11

Memorandum—Francis I. du Pont

120 Broadway,
N.
York 5, N. Y, Also available

report

Courts

General

General Electric.

land

Zenith.

report

Watt, 6-8
Street, Toronto, Ont., Can¬

Jordan

—

same

Corporation-wReview— tario
Paper
Company,
Olin
& Co., 65 Broadway, Mathieson
Chemical
Corp.,
and
N. Y. Also available Thermo King Corp
is a review of Simplicity Pattern
Washington Steel CorporationCo.
Analysis — Charles A. Taggart &
Olivetti—Review—Cooley & Com¬ Co. Incorporated, 1516 Locust St.,
Diversa Inc.—Analysis—Hein Co., pany, 100 Pearl Street, Hartford 4,
Philadelphia 2, Pa.
150 Broadway, New York 38, N. Y. Conn.
Westinghouse
Air Brake
Co. —Dunn
Engineering
Associates, Onyx Chemical—Analysis—Boen- Analysis — Hallowell,
Sulzberger
Inc.—Analysis—Schirmer, Ather- ning & Co., 1529 Walnut Street, Jenks, Kirkland & Co., Philadel¬
ton
&
Co., 50 Congress Street, Philadelhpia 2, Pa.
phia
National
Bank
Building,
Boston 3, Mass.
Outboard Marine Corporation — Philadelphia 7, Pa. Also available

American

letin

data
a

Machinery.

the

S. A.

Ltd.—

Canada

Memorandum—Watt

Memoran¬
dum—Bruns,
Nordeman
& Co.,
115 Broadway, New York 6, N. Y.
Ward

de Mexico,

Co.

Gas

Union

4, N. Y.

Montgomery

An¬

—

—Report—Intercontinental, S. A.,
Paris 15, Mexico 4, D. F. Mexico.

Street, Pershing

Broad

Co.,

York

New

Memoranda

—

Acero

Tubos

ysis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
Minute

Co.

Pipeline

alysis — Straus, Blosser & Mc¬
Dowell, 39 South La Salle Street,
Chicago 3, 111.

Corporation—Anal¬

Maid

Co.—Analysis—
Co., Inc., McKay

Grand Rapids 2, Mich.

Transwestern

Company,

Minute

Shaine &

Tower,
&

Transmission Co.—

Betts

Thomas
H.

Broad¬ 1, Texas. Also available is a re¬
4, N. Y. Also in port on Tidelands Royalty B.

New York

Rothschild

James Richardson & Sons,

—

J. R. Williston & Beane, 2

—Analysis—Schweickart & Co., 29
Algoma Steel Corp. Ltd.—Data—
Broadway, New York 6, N. Y.
Draper Dobie & Company, Ltd.,
Consolidated
Water
Power
&
25 Adelaide Street, West, Toronto,
Paper Company — Report—Loewi
Ont., Canada. Also in the same
&
Co.
Incorporated,
225
East
circular are data on Page Hersey
Mason Street, Milwaukee 2, Wis.
Tubes Ltd., Falconbridge Nickel
Mines,
Ltd.,
Toronto
Dominion Continental Assurance Company—
Bank and Salada Shirriff Horsey Analysis—William Blair & Com¬
pany, 135 South La Salle Street,
Ltd.
Chicago 3, 111.
Alico Land Development—Memo¬

the

Securities Co., Ltd., 61

—Nomura

Seattle

Avenue,

Co., Inc., Bay & Drayton Sts.,
Se¬ Savannah, Ga. Also available are
memoranda
on
Insurance Co. of

Survey

—

memoran¬

dum—Pacific Northwest Company,

Street,

curities Co., Ltd., 25 Broad
New York 4, N. Y.

Analysis

—

Letter—

Investment

for

Analysis—H. Hentz & Co., 72 Wall
Street, New York 5, N. Y.

Inc.*
Report in
Mercantile Bank Building, Dallas

—

Whitin

Laboratory

Works,

Tennessee Gas

5, N. Y.

Carothers

—

consideration

Inc.—Card

Atherton
& Co., 50
Street, Boston 9, Mass.

Congress

Also available are data on

Co., 40 Wall Street, New

Marine Petroleum Trust

Corp.

memoranda

Albertson's

Corporation—Review—

Schirmer,

Analy¬

—

1000

York,

Company

Co.

Magnavox

Railroad
analysis of Canada

Stocks, and an

Dry

available is
Co.

Also

study of Tractor Supply

Tennessee

and

Can

Telegraph

attractive

discussion

Review —Ira

—

eration Corp.
R. H. Macy &

Coastal States Gas Producing —
—Hemphill,
Noyes
&
Co.,
15
Motorola
Data — Goodbody
Memorandum—Blair & Co. IncorBroad Street, New York 5, N. Y.
2 Broadway, New York
York 5, N. Y. Also available are Co.,
*
*
*

Japanese Economy — Analysis in
Wash.
current issue of "Investor's Digest"
—Yamaichi Securities Co. of New

York
a

—

Machine

Review

—

Limited

Labatt

John

Corp.

Tennessee

and Ther¬ Haupt & Co., Ill Broadway, New

Decca Mead Johnson — Analysis — Blunt
Records and Crowell Collier.
Ellis & Simmons, 111 West Mon¬
carbons,
Brunswick
Corp.—Report—A. M. roe Street, Chicago 3, 111.

Booklet

Insurance Stocks—

Analysis—Kidder, Peabody & Co.,
17 Wall

work

comment—Equi¬
Limited,

market

table

Service, Stouffer Corpo¬

Johnson

ration, Frito Company
mo King Corporation.

in
chemicals,
metals plastics and nuclear
Kidder & Co., Inc., 1 Wall Street,
energy—Booklet L, Union Carbide
60 Yonge Street, Toronto 1, Ont.,
New York 5, N. Y. Also available
Corporation, 270 Park Ave., New
Canada.
is a report on Miehle Goss Dexter.
York 17, N. Y.
Comparative Yields of U. S.
—
Report—
Public Utility Common Stocks— Brush Beryllium
Treasury Issues — Bulletin — Au¬
Stearns & Co., 72 Wall Street, New
Comparative figures—G. A. Saxbrey G. Lanston & Co., Inc., 20
York 5, N. Y. Also in the same
ton & Co., Inc., 52 Wall Street,
Broad Street, New York 5, N. Y.
circular are data on Jarrell Ash,
New York 5, N. Y.
Factors and Commercial Finance
Laboratory
For Electronics and
Western Europe — Discussion of
the Steel Companies.
Companies with particular refer¬

letin

Street, heimer, Neu & Co., 120 Broadway,
Electronics and Copeland Refrig¬
New York 5, N. Y.

Broad

N. Y.

Western

way,

of Polaroid Corporation.

Products and Processes

Canadian Investment Letter—Bul¬

reports

are

Wall Street, New sis—Cohen, Simonson & Co., z5
5, N. Y. Also available are Broad Street, New York 4, N. Y.

Bobbie

Calif. Also in the

Ont.,

Toronto

Street,

—

available

alysis—Troster, Singer . & Co., 74
Trinity Place, New York 6, N. Y.

York 5, N. Y.

Street, New

& Co., 72

Market—Analysis Stern, Frank, Meyer & Fox, Union
Bank
Building, Los Angeles 14, September

Bond

Canadian

916

Company,

Trust

Cleveland

Yonge

period — National Quotation
Bureau,
Inc., 46
Front Street,
Vew York 4, N. Y.

year

Activity—B u 11 e t i n—

Euclid Avenue, Cleveland 1,

both as to yield and
performance over a 20-

market

Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.
Business

Bureau

Quotation.

Averages,

City Banks—

York

New

National

the

Circular on

—

Data

—

York 4,

Bausch

Stock

Inc.

Droulia
New

Bank

—

Analysis
issue of "Science and Investment —McLeod, Young, Weir & Com¬
Survey" are data on Dymo In¬ pany Ltd., 50 King Street, West,
Toronto, Ont., Canada.
dustries and Radiation Inc.
Korvette—Report—OppenBabcock
&
Wilcox — Report— E. J.

WILL BE PLEASED

THAT THE FIRMS MENTIONED

Analysis

Globus &
Co., 660 Madison Avenue, New
York 21, N. Y. Also in the same

AND RECOMMENDATIONS
IS

—

Anodyne

INVESTMENT LITERATURE

Thursday, September 15, 1960

—

McDermott

Struthers Wells Corporation—An¬

Editorial Research and
Production
Young

woman

well-known

now

Specialist
employed by a
on a secondary

institution

management level.
Possesses energy,
a
bread educational background and
strong
experience in
both
financial fields.
If your

and

editorial
organiza¬

planning to expand or improve
its publications department, you may
be well rewarded by getting in
with her.
Box C-915, Commercial &
tion is

Financial

New

York

Chronicle,
7, N. Y.

Park

Place,

Volume 192

Number 5986

The Commercial and Financial Chronicle

exemption
cost

over

there is

ing

and U. S. Investor

ings
free

New York City

the

time

the

investment

Puerto

wealth

then

tax

available

exemption

describes

the

program

United

business

American

Puerto

pay

income

tax

Rico

tax

holding

able

States tax

by distinguishing the benefits of the various

programs

from each other.

Rather than wishing to

tion of

liquidation before the end of the exemption period,

tax-free

tax at any
from the
operations if
either
resides in

does

United

States

over-emphasize the attrac¬

How

vestor

tax

against
liability.
the

is
to

States

in¬

advantage of this
take the situation

pattern? Let

of the corporate

United

investor first.

Advantages to the

vantages
in

lies

fact

internal

States
not

mainland

the

Rico's

Puerto

source

that

Tax
is

tem

Act

readily

own

1954.

This

available

elsewhere. As

because

Internal

Revenue

generally

1939.

Code of

the
end of my paper. The important
point here, however, is that the
way was constitutionally open to
Commonwealth

the

dramatic

Industrial

The

1954

cation

and

period. Similarly, sales
of the stock during that period
will not be taxed in Puerto Rico,
and

modifi¬
tax

successful

the

further incentive,

emption

Incentive Act of

extension

and

business—or

before the end of the 10-year ex¬

invest¬

the mainland.

from

ment

offer

incentive to

tax

the

The Puerto

Rican

branch

prof¬

its of an ordinary United States
corporation would be fully sub¬

ject

the United States.
subsidiary corporation
required to carry on
the
exempt Puerto Rican busi¬
ness, and obviously this must be
a
corporation with special status
to

tax in

A separate

is therefore

under the United States tax laws.

trade

bear the full rate of corporate tax,
since the 85% deduction, available

ac¬
or

than
must

dividends from most domestic

done

apply. However, in this circum¬
stance, the Puerto Rican with¬
tax does not impose an
additional
burden,
since
it
is
wholly absorbed as a foreign tax

continental

North, South and Central holding
America, or in the West
,

Indies.
Such

corporation receives a credit.
special deduction which results in
a

A domestic corporation qualify¬
under section 931 has one

maximum United States tax burben of 38%, or 14 points lower

ing

material

than the usual tax rate. Even this

burden,

however,

the attraction of the Puerto Rican

exemption.

Moreover,

advantage

sales after the end of the

exemption

ex¬

period

only the post-

Puerto Rican corporation.

it may be liquidated tax-free into

dividend

its United States parent if the
distributions to the parent out of
parent owns at least 80% of its
the
Puerto
Rican
earnings are
stock (other than non voting stock
subject to the approximate 30%
limited and preferred as to divi¬
Rican

withholding

TaxA

dends).

Theoretically, therefore,
The bulk of this tax cannot be
all of the Puerto Rican profits of
absorbed by way of credit against
such a corporation can, if accumu¬
the United States tax which has
be brought home to the
to be paid at the maximum inter¬ lated,
United States free of any tax. By
corporate rate of 7.8% on the
way of contrast, a Puerto Rican
dividend.
Hence
the
overall
Puerto
tax

Rican

burden

Considered
The

corporation, like, other
foreign
corporations, cannot be liquidated
tax-free
without
the
prior' ap¬
Foreign Corporation proval of the Commissioner of
and

come

answer

United

States

to about 57%.

Hemisphere Trade
Corporation is a familiar vehicle,
but it is not very satisfactory for
Puerto
Rican
operations.
The
Code defines it

reduced

15% under recent
legislation, effective July 31, 1961, if the
payer
is engaged in manufacturing in
1

Puerto

Rico.

which

domestic

meets

this

case

for

the

Internal

investor in

367

stems from the fact that

Revenue
the

Code.

cor¬

each

these three tests:

(1)

95% or more of its gross
income must be derived from

This advertisement is neither

earned

income

The

and
available

from

businesses,
made

any

list

siderable

The difficulty with a domestic
of its income in Puerto
Through the use of one of corporation under section 931 is
these vehicles, the Puerto Rican that all of the benefits of the sec¬
income may thus be kept within tion may be lost if there is not
the
corporation
free
of
both meticulous adherence to its statuUnited States and (during the ex¬
Continued on page 22

enough
Rico.

offer to sell

nor a

solicitation of

offer to buy
September 14, 1960

New Issue

such

property

the

for

businesses,

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

use

exempt from
tax for a period of 10 years. In
addition—and manufacturers with
these

experience in overseas operations
be particularly appreciative
of the following—there is an ex-

1,500,000 Shares

BOSTON CAPITAL CORPORATION

will

emption from insular and munic¬
A Federal Licensee under the Small Business Investment Act of 195$

ipal property taxes for a period of
10 years, and from mu¬

from 5 to

years.

titled

(This does

fees and excises for 10
Tourist hotels are also en¬

nicipal

exemptions,

these

commercial hotels receive

exemption.
*

and
50%

not

involve supervision of management

investment practices or policies)

Common Stock

;

(Par Value $1J

Worthwhile Repeating

this

calling

worthwhile

Price $15.00 per

enormously attractive program to
the attention of American busi¬

again.

ness

exemption

The

granted by the Governor, who ad¬

through
Exemption
Office. Once granted, the exemp¬
tion has the protected status of a
contract between the exempt
business and the Commonwealth.
In the absence of fraud, it can be
revoked only because of failure
to comply with the Act or because
of arbitrary interruption of pro¬
duction by - the .exempt business
for more than 30 days. In order
the

ministers

program

Industrial

the

Tax

prevent abuses from trading
or
speculating in the exemption,
certain transfers of property or
interests in the exempt business

In the
an

opinion of counsel the 1958 amendments to the Federal Internal Revenue Code permit

investor in the stock of

come,

small business investment company to

deduct from ordinary in'

rather than from capital gains, any loss he may sustain with respect to

Copies of the Prospectus may be obtained in any State in which this announcement is
several underwriters

may

such stock,

circulated from, oehy mth of the

lawfully offer these securities in such State*

SHEARSON. HAMMILL £ CO.

require the approval of the
nor during the exemption

Gover¬
period.

However, partnership and stock
interests may be freely sold if a

change of control does not result,
and
otherwise
may
be salable

Governor's
approval.
There is no inhibition on trans¬

BACHE 6 CO.

FRANCIS I. DUPONT £ CO.

HAYDEN, STONE £ CQ.

E. F. HUTTON £ COMPANY

SHIELDS £ COMPANY

WALSTON £ CO., INC.

HAYDEN, MILLER £ CO.
L F. ROTHSCHILD £ CO.

MODEL ROLAND £ STONE

with. the

fers

by operation of law or

death

tance, no

debts.
impor¬
approval is required to

liquidate

pledge

Finally,' and

exempt - corporation
or more owned

which is an- 80%

PRESCOTT, SHEPARD £ CO.. INC.

GOODBODYfiCO.

RlTER £ CO.

secure

obvious

section

the

produced

Jan. 2, 1947, and

the

production ojta con¬
of designated addi¬
tional articles, from artifical flow¬
ers to paperboard and paper pulp.
also

under
This

foreign
Federal
income
Accord¬
taxes.
And, under section
ingly, the liquidation of a Puerto
Code, a domestic cor¬
Rican corporation will normally
poration may be treated like a
entail a 25% capital gains tax.
foreign corporation if it earns
931

extends to the manufacture of the
in Puerto Rico

the

corporation.

The Western

poration

emption program initiated in 1947.
Several types
of exemption are
now
available
for eligible new
businesses which make application
before Dec.
31, 1963. Eligibility
wide range of goods not

over

Puerto Rican corporate form. Be¬
cause it is a domestic
corporation,

reduces

approval
In fact there are three choices—
has been granted in some recent
the United States does not tax the
ing tax of 30.45%! on distribu¬
a Western
Hemisphere Trade Cor¬
situations, but it is not easy to
tions to non-residents (20% if to
earnings of a foreign corporation
convince the Commissioner, as the
poration; a domestic United States unless these
United States citizens, not includ¬
earnings are derived
statute requires, that a principal
corporation which
qualifies for from sources within
the United
ing corporations) will not apply
the benefits of Section 931 of the
reason for the Puerto Rican ar¬
if the exempt business, conducted
States. A Puerto Rican corpora¬
Internal
Revenue
Code; and a tion is considered to be a
rangement is the avoidance of
in corporate form,
is liquidated

mainland,
follows the

back to it again at

come

the usual Puerto Rican withhold¬

from the

men

accumulation

for

reinvestment

sys¬

understandable

business

shall

its

United States investor

advantage of this pro¬
gram? If the business can be kept
free of United States tax, its earn¬
ings for 10 years will be entirely

Instead

has

take

taxation, now incor¬
the Puerto Rican in¬

system of
porated ill
come

How is

United
laws

revenue

Commonwealth

subsidiary of another corporation,
domestic or foreign.

investors

the

apply in Puerto Rico.

the

ad¬

emption period) Puerto Rican tax.
In each case, dividend distribu¬
of its income tions to the United States parent

of its business, other corporations, with the resulting
maximum rate of 7.8%, does not
incidental
purchases,

Puerto

Corporate

Investor

The

conduct

All

lesser

United

take

Mr. Baker makes the reminder that in most cases the investor may

regular inducements under usual tax laws.

his

United

business.

(3)

jurisdiction.
qualification
makes

prefer to continue the business beyond the exemption date because
of

have

not

the

must be derived from the

tive

years

because

points made by going over the various investment vehicles avail¬
and

exempt

seven

citizen and resident, for example,
can credit the Puerto Rican with¬

advantages. This paper illustrates the

(2) 90%

another

latter

sense,

arrangements which

States.

the

withholding

recipient

The

holds for mainland investors and

States

be made to obtain these

can

for

briefly outlines the advantages which the Common¬

first

outside

sources

the exempt

Analytical legal appraisal is made of the "enormously attractive"
situations

keeping

and

be paid out as dividends

within

start

Mr. Baker

inducement to retain¬

ownership

years can

Rico.

appreciation in value
will be taxed. Finally,

corporation alive in that the earn¬

By R. Palmier Baker, Jr.,5" Partner, Lord, Day & Lord,
,

(1053)

WM. C RONEY £ COMPANY

WOODCOCK, MOYER, FRICKE £ FRENCH

year, and the average annual rise
since 1957 is one-half of 1%.

Moderate Business
Vice-President and Economist, Chase

F. Butler,*

Manhattan Bank, New

those
offer

Butler notes profits squeeze
resulting from rising unit labor costs. Foresees cutback in auto sales
furthered by self-imposed consumer credit restraint. Citing slow-down
in economy's over-all growth rate, advocates remedy via reduction
of tax burden on saving and investment, and holding wage rate
rises within economy's ability to pay them. Warns against massive
Government spending as anti-recession method.
promptly enough to be effective. Dr.

;
/

run

still

plans to

carry

capital
expenditure
programs
for
1 9 6 0, which
means

sus¬

tained

high

level

ex¬

will

Short

books

will

fall

good year for

though not a
In some respects it

year.

prove

that

business,

general

sales

disappointing year
in many lines will

short of earlier

expectations.

of record
highs in production and employ¬
ment without inflation—and that's
a considerable accomplishment.
Yet

will

At the

clear

same

year

time, it now seems
economy
is ap¬

the

that

Administration

new

take

action

have

down

boom

the
William F. Butler

1960

the

in
the
defense
effort.
that, it is unlikely that

step-up

penditures in
key area.

this

Thus

prospects

much

rapidly
effect

of the recession

could

enough
the

course

actions

tion.
There

are

number

cogent

for

expecting 1961 to be
a
recession year.
Of these the
most significant is the prospect

reasons

decline

ment

business

plant

new

the

turn.

weakness,
and now
picture similar to that
6-9 months before past recessions.

time,

sales

auto

Instalment credit has risen

rapid¬

ly in the past 18 months and has
point where the cur¬
rent rate of repayment takes 13%
consumer

income

after

Experience in recent
gests that individuals

taxes.

years

sug¬

equip¬

cession

are.

in 1957-58. Thus, there

were

good

1961

will

recession

than

the

Housing
their

1.3 million to 1.5 million

reluc¬

are

rate

(the rate

reached in nearly 1959). While re¬

ports

that

The

present prospect is that the
1961 recession should prove to be

about 2%

Prices

per

industrial

have held stable for

products

than

are

sticky in

in¬

The

odds

an outcome in the
two seem very high.
up, the most probable

such

sum

into

move

recession

nation

phase

will

moderate

The

1961.

industrial

the

that

outlook

decline

production

might

run

she. to nine months and carry

Reserve Board index

Federal

the

10-15%,

down

However, the

taining

forces

enough

to
generate
by late-1961

advance
1962.

sus-

Surveys

attitudes

consumer

increasing reluctance

buy

du¬

rable goods.

People are concerned
about the future stability of their
incomes,
worried
about
higher
prices, and more inclined to defer

autos, refrigerators
other such products.

purchases
and

renewed

early-

X V.'.

/'Yhv

/'A

Longer-Term Problems
the

economy

should

re¬

with reasonable promptness

cover

the

from

recession

that

seems

lie

ahead, there will remain a
serious
long-term
problem
of

business

purchases

slow-down
squeeze

early stages

recession and to increase be¬

fore

general

turns

up.

operate

maintain

after

come

business

taxes

the

recession. By

in¬

personal

early

doing,
expenditures
for

support

non-durables

touch

off

services

and

for

recession
than

and

accounted

half of the decline

in GNP. While there is

way

appears

profits

unit labor

—

costs have risen more than

activity

The built-in stabilizers

for this

The major reason

(2)

non¬

be maintained in the

they

sales
period of in¬
ventory
liquidation.
Inventories
are not top-heavy as measured by
in

decline

Any

years.

Consumer

durable goods and services tend to

stages of

Inventory Adjustment

(3) Thus the rate of investment
new
plant and equipment has
held

been

slowed

the

and

down

advance

showed

this

the

econ¬

omy's

productive efficiency.
The
appropriate
remedy
in¬
volves two things: Reducing the
tax burden on saving and invest¬
ment, and increasing excise taxes
if need be; and (2) Holding the ;
rise in wage rates within the lim¬
its of the economy's ability to pay
With

them.

tremendous

the

worldwide responsibilities the na¬
tion

faces, such actions are essen- ;

tial.
The

longer-term danger in the

period ahead is that the nation *
might resort to massive govern¬
ment spending to deal with the
1961 recession and promote eco¬

little

nomic

increase.

precarious, it might

the

1961

swing to
billion in

(in

confront.

con¬
*A

deficit

was

1958).

given by Dr. Butler at the 1
Meeting of the
American Sta¬
Association, on Aug. 22,
1960,

report

Annual

tistical
at

Palo

Alto,

Calif.

Moderate Recession
"

This adds up to the prospects of
a

moderate recession. Here is how

the

Broadcasting Inc*
,

Common Stock

arithmetic

works

out:

Declines of the following gen¬
eral dimensions appear in prospect
between mid-1960 and mid-1961

(figures in annual rates):
Sbillions

per

Share)

mid-'GO

Plant

change

mid-'61

37.0

Sbill'n.

perct.

32.2

—

4.8

—13%

44.5

40.7

—

3.8

—

+5.3

eqp.

—7.0

Consumer
durables

Inventories
Total

Price $8 per share

__„$86.8

Expenditures
other

securities and in which the

Prospectus may.legally be distributed.

Consum.
dur. &

F. Eberstadt
September 14,1960

Co.

SbiH'n.

23.5

First Jackson

Securities Corp.
JACKSON, Miss.—First U. S. Cor¬
poration of Memphis, Tenn. has
announced the opening of another

subsidiary, First Jackson Securi¬
Corporation, with offices in
the Guaranty Bank Building. This
corporation will underwrite and
distribute municipal bonds in the
State of Mississippi in competition
with the parent company.
George L. Lenox, Chairman of

ties

the Board of First U. S.

perct.

2.2

11%

non-

Corpora¬

tion, will also be Board Chairman
of the subsidiary. William F. Sut¬

294.3

9 9

ton

98.6

105.0

6.4

nies.

S404.3

$422.8

$18.5

serv.

Total

rates

change

mid-'Gl

21.3

Governmt.

—24%

increase
;

mid-'GO

Copies of the Prospectus may be obtained from the undersigned and
only in states in which.they are qualified to act as dealers in

$65.9 —$20.9

could

Sbillions-

Housing

—12.3

areas:

others

has

Exports

almost

110,000 Shares

•

prices.

growth.
This route would
also sap our economic vitality and
might hold up fairly not only fail to produce genuine1
well, while imports might decline economic
growth but
it would
moderately. While
the
nation's hence reduce our ability to meet
balance of payments position the
challenging problems which

they

not worsen much in

offering is made only by the Prospectus.

(Par Value $1

•

powerful

appear

areas

year.

in the past month or two show an

trast,

Rollins

•

have

sales

many

would remain

This

making

and produce

1957-58

annum.

unfold to

elements

recession.

While

rise

could

annual

recent

the

stability

three

starts

could

events

tractable

recessions.

postwar

from

that

to hope

reason

severe

than

favorable

—

costs

train of

next year or

Recessions

been achieving the sort of economic
of the na¬ growth of which the nation is
tion, the - greater availability of capable. Very briefly, the prob¬
mortgage credit plus efforts by lem is that:
builders
to meet the price
credits rise above new credit ex¬
and
(1) There has been a definite
requirements
of
cus¬
tensions, as was the case in 1958. quality
slow
down
in the economy's
This could mean a cutback in au.to tomers could support such an up¬ over-all growth rate — from 4%
sales from 6.0 million this year turn. Housing expenditures could per
annum
from 1947 through
to something like 5 million in 1961. rise
by $2- billion in the next 1955 to 2% during the last four

could

phase

prolonged recession is im¬
possible. Under certain conditions

forces

downward

the

downturn into the re¬ ment.
pave
the
way
for
an
upturn.
of
the
business
These expenditures could rise by
Plant and equipment expendi¬
cycle. While the precise timing of tures in current dollars have not
a
$10 billion rate in the year
the burning point can be affected
regained their 1957 peak. This lag past standards, and steel inven¬ ahead (that is almost one-fourth
by decisions yet to be made by in investment reflects the
tories are on the low side. None¬ less than the increase that took
lag in
business
and
government,
the
business
is
trying
to place in the first year following
profits — corporate profits after theless,
downturn will probably come in
economize on inventories so that the 1957
taxes in the first quarter of this
downturn).
early 1961.
However, it could
any general drop in sales
could
year were only 5% above the pre¬
Government expenditures could,
come late
this year if a move to
vious peak in the first quarter of lead to a severe cutback in orders on
the basis
of present
budget
cut capital expenditures and pare
1957.
The lag in profits
is ex¬ in an attempt to squeeze down the prospects, rise
by some $5 bil¬
inventories in anticipation of a
level of inventories.
plained by two developments:
lion in the year ahead.) Federal
recession
should
gain sufficient
The shift in inventory buying expenditures could
'Wages have continued to in¬
go up $2 bil¬
momentum.
cut demand by $9^2 billion a year lion or more
crease
more
rapidly than output
in the declining
Sees Similarity to Previous
in the
first
six months
of
the
per man-hour, raising unit labor
phase
of the
1957-58
recession
proaching

This does not mean that a severe

and

against

of Strength

Elements

While

the

a great
business

general

decline.

for

reached the

resistance

overwhelm

durable

whereas

four-fifths displays

other

present

area

production,

increasing

they

Slow-Down

same

will probably be lower next year.

invest¬

and

of an impending down¬
But
they
have displayed

volatile

the

goods

indicators

The

yet given an unequivo¬

not

cal signal

companies

Auto

phase of the cycle.

taken to spur
recovery in 1961 could have pro¬
found implications for the future
growth and prosperity of the na¬
However,

recession.

could be tant to incur further debt once
changed if international develop-, this point has been reached. Next
ments should call for a significant
year may see repayments on past
These

into

areas

ly after the downward turning
point, followed by three years of
recovery and good business;

out

which
ahead.

heading

view L.at the economy is

have

the

confirm

tend

are in the
work
appear
to
be
powerful
preparing capital
enough to bring on a recession,
budgets for 1961. However, a sta¬
there are also significant elements
tistical analysis would point to the
of strength in the picture. They
possibility of a 15-20% drop from
to
provide
substantial
the end of 1960 to the end of 1961, promise
support in the period ahead. In
or somewhat less than that in the
fact, prospects in a number of
1957-58 recession.
process

be re¬
membered that the postwar busi¬
ness cycle pattern has involved a
decline
in
industrial production
of 10-15% in the year immediate¬

amassed.

are

and

leading

Bureau's

National

The

illustrates

significant characteristic of the
U, S. economy—only about a fifth
of economic activity takes place
a

Signals

Warning

magnitude of the decline in

Most

ture.

could

buying in 1981, it
be comparably large.'

indicators

The above arithmetic

possible swing in in¬

the

ventory

is difficult to foresee at this junc¬

case

was

projects

good return can go

downward

the
However, it should

1957.

models

Business

resist

than

pressures

inventories
1961

situated

ter

rate

plant

•

plant and equipment expenditures

is that busi¬ generally comparable in intensity
moderately and duration with the three pre¬
after Labor Day. Steel operations vious recessions. In some signifi¬
cant respects, the economy is bet¬
should move higher. Auto output
will

investment

The

The present prospect
ness
should pick up

high

cutback in ex¬

new

equipment. Business must reduce
the rate of growth of capital assets
in an attempt to maximize the rate
of return. This means that only

that 19S0 will be recorded
as a good year, foresees a subsequent serious downturn to follow
in early 1961. Excepting for a major step-up in defense spending, he
believes no Government anti-recession action could
be invoked

forecast

Thursday, September 15, 1960

Squeeze

Thus,
profits have been
squeezed by rising unit labor costs.
A decline in the rate of profit in¬
variably leads to
penditures
for

York,'

Leading bank economist, while asserting

Profits

The

Recession Ahead
By William

Chronicle

The Commercial and Financial

(1054)

284.4

—

balance,
would

GNP

decline

from peak to

less

annual

than

President

Charles

Shapiro

both

compa¬

is Vice-Presi¬

dent and Manager of First

Securities,

and

Mrs.

Jackson
Martha K.

Mize, Secretary.

trough.

However, industrial production
could drop 10-15%
from top to
bottom. Output of durable
goods
might
go
down
15-20%
while
non-durables could decline 5%
inventories are worked off.

Morgan Davis Office
HARWINTON, Conn.—Hurlbut G.
Clark
is
representing
Morgan
Davis & Co. from offices on Burl¬
ington Road.

Volume

192

Number 5986

The Commercial and Financial Chronicle

just

Politics, Prospects and Prices
In the American Economy
By Dr. W. L. McMillen,* Associate Economist, Morgan Guaranty
Trust

Company of N. Y., New York City

(1055)

that

denies we

year;

of such

are on a verge

the

Curran,

of inflation,

their

wisely.

capital

Too

spending

often,

has

also

writer

of current eco¬

points

aggravated

points

and

expenditures
out,

purchasing

situation."

undesirable
regarding

not
more

ness

the

of busi¬

course

two

three

There

years.

along these

results will be

The

danger for the
longer

this;

run

current

some

shall

for

This

beliefs.

bias

will

as great as we have been
believe; (4) if the winner i&

will not be

Wayne L. McMillen

extreme

as we

have

hope to show that those in charge

purchases for business firms

(for. Inventory and for plant and
equipment) have a great oppor¬
tunity to make a contribution to
our general economic stability.
In

unless

have

fused about

thinking
the dogs
This

become

con¬

But

into

misled

not

the

favorite

basic beliefs.

our

should

have

should

will go to
favorite wins.

country

unless our

does not permit a
fact, their contributions could re¬
thorough discussion of the do¬
sult in the next substantial step
mestic issues.
For this reason, 1
toward taming the business cycle.
have selected only a few of them.
Lastly, I shall venture the opin¬
Should
the
government play a
ion
that
prices will be rather
greater role in the economy? Too
only
slight
dur¬
stable with

ing

the

but

six

the

over

flation

may

rise
months or
five

reappear

so,

in¬

years

para¬

mount issue.

govern¬

only in terms of the Fed¬

Government.

eral

remote

and.

seems

it's

is paying

who
But

the

many

the

of roles

the
Federal
Government
plays
quadrennial emotional
should be that of state and local
We shall continue on this
governments.
;
:•
"binge" under the glare of both
How should the local govern¬
footlights
and
floodlights.
The
audience
is
both
domestic
and ments pay the bill? There is one
spree.

But

the New York
out

when

that

Scotty Reston of
has pointed

Times

curtain

the

goes

down,

the

leading

the

only President in his¬

man

can

say,

tory from General Washington to
General Eisenhower to campaign
on

Jack Paar's Program.

President

can

make

No other
claim!"'

that

of the two
men
in the "Drama of
1960"
(perhaps even their very
political existence) depends on
pleasing most of the audience.
Both men are young, but it is safe
the

Now,
leading

much

steel

two

hence, we'd have

to in¬
from the

production
million

115

265

million

tons

for

1980.

Our
to be

4.2%

per year (vs. Russia's 6.8%).
quite interesting that this is

It is

exactly

the

increase

American

for

the

Furthermore,

steel

past

it's

rate

average

duction

for

success

and

way

only
from

taken

and

given

shall

consumers

the

the
pro¬

years.

exact

tury.

an¬

(with the
unfortunate
consumers already being aided by
government charity or with in¬
necessary

exception

comes

den

that

greater bur¬

would

them

income

of the

fast

What happened to
this summer? Things

our

morally

hair by Jan. 20, 1965. Our
Comments on Growth
foreign neighbors will, in most
Comparisons
part, sit through the drama in rel¬
ative darkness, confused by the
Is
our
economy
growing fast
conflict between (a) our preach¬
enough?
My observation is that
ment to them in regard to political
almost
every
industry
in
the
and economic freedom, political
United States is eager and waiting
and economic sanity, and political,
to
grow.
If .not growing, some
social and religious tolerance on
impediment
to
growth
is
the
the one hand, and (b) our demand
cause, such as a limited market,
that our own politicians ignore
inability to expand productive ca¬
this preachment in their domestic
pacity, or costs that are relatively
policies. We must watch the play too
high.
and

less

should

detachment

remember

that

when

the

down and the "good
man" has triumphed, he will re¬
ceive a
shock
under the cold
shower of responsibility.
Having
curtain goes

the grease paint in
the winner will then
muffle the type of appeal he made
during the campaign and will bite

washed

away

this shower,

his

lips

embarrassment

haps
the

our

that

not,

Greece,
more

economy grown as

the

but

and

Russians?

data

economies

The

1948-49

also

the

rate

far during this cen¬
Khrushchev
at

steel

seem

production does not

such

chore

for

us.

with Russia's larger
population Khrushchev's per cap¬
ita production would still be con¬
course,

were

below

emergency

ing
29

we
can

single

than

the

hopes
One

years.

war-shattered country,

growing to do than

did in the postwar period. One
see no need for such growth

son

much

not,

are

and

1 Of

such

course

approach

should

also prove

that Taiwan, Japan and Greece
overtake Russia, especially Japan.

will

2 Of

production
during these
had not reached the boom rate for
from

recovery

unfair

It's

there

had

the low levels
select

the depressed 1938
averaged the three
1939

form

been

the

one

years

base

1931-34.

such as
base, so I have
1937, 1938 and

for

volume.

1937

the

accelerate

income

greatest

the

and

depreciation

number

the

volume
to

for

the

of
base

average

years,
year

but
was

for the three

satisfac¬

our

plicated for

the

tax

policies

productive

prop¬

re¬

the

extreme tendencies

monopoly, whether of the
firm

labor.

first

order"

each

have

our

lifetime will
I doubt it.

Russia

half

mistakes

The

One of

the

fact that the

due

were

1959

steel

"discombobulated"

labor.

know

that

monopoly power pushes up prices
and this applies to the price of
labor.
We
want
high wages as
long as they are the result of
productivity. We can't afford them
if they're merely the consequence
of labor monopolies. Let's apply
equal rules in regard to monoply
—whether it is monopoly of pro¬
ducers or of labor. Having done

will

overtake

these

point markets

under

the

rather unrelated

in this

look

Inter¬

country than those in most

this

Money has

centu,ry.3

way,

did the

the

rest

the

tional

Product

(through
to

ments

the

net

banks
the

Sales

second

not

went

half

interest

which

the

for

"common

use

his

throughout

accelerated

1960.

Government.

insurance

savings

also

state

and

some

act

Most

payments
payment

including

the
,

fluctuation.

the

Politics

payments

companies,

loan

of
go

for

accelerated

even

quarter
may

saviiigs

associations—

How

tary

and local governments, pen¬

continued

rate

(

and

Job

about jobs?

idleness

Figures

The involun¬

any

Continued

funds, etc.

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

substantial
on

this Stoc\.

the Sjnall Business Investment Act of 1958

involve supervision of management or investment practices or

policies)

Common Stock
($1 Par Value)

Price $7.50 Per

seems

Copies of the Prospectus may be obtained from the

undersigned.

fast

Filor, Bullard & Smyth
Bregman, Cummings & Co.

Sprayregen, Haft & Co.

for

Germany
higher than that in Russia,

September 15, 1960

seem,

through the second quarter. Clearly
the culprit was violent inventory

money

under¬

during the first
Amazing as it

this

commercial

rent

but

interest

savings,

mutual

goes

only

man"

banks,
to

cost

not

Government

through the

1958,

and

what

Final Sales.

rate

back

gets

tax) half of its interest pay¬
corporations.
About 10%
of

Government's
the

Government

Federal

economy.

have

economists refer to
Final
1959

3 The

Govern¬

By subtracting the rate of in¬
ventory change from Gross Na¬

country of the free world,
and also lower than they were in
this country during the first third
of

his

ment, .and so
did the foreign
buyer. In a »■ postmortem of what
happened
one
may
eliminate
inventory fluctuations and then

will absorb

facts.

normal

and

consumer did not be¬
confused and went merrily

come

and have been lower

are

demand

nately the

.J shall indirectly point up a few
by the statement of a

est rates

other issues
few

capacity.
■;
The foregoing was about all that
happened .which was of special
note during the first half. Fortu¬

conditions.

new

not

normal

shorter ones and
time when there
such- a
gap
between

were

came

was

things, let's permit, growth

the

they

grown

Russia

the

We had had rather re¬
experience with steel strikes

but

With current

the growth rate in West

entire

economy.

cent

A Federal Licensee under

prevalent reasoning, you can just
as properly argue that West Ger¬

strike had

the

Venture Capital Corporation of America

Hardy & Co.

com¬

yeaiy

Per¬

over¬

me.

325,000 Shares

indicate that
Germany,

for

month?

handle it—

even

ISSUE

not

could

ordered too much steel."

company

that

The

(This does

caused

Perhaps

Now, because of
purchasing decline, my own pur¬
chasing department will have to
cut down its ordering. Because we
thought orders would come in at
a
boom rate, at least throughout

profits). The biggest single cost is

This advertisement is neither

NEW

interest

businessman

sending me
100,000 "swidgets"

the impediments to growth is that
of
high
costs
(and
thus
low

sion

years.

orders?

Secretaries could

impediment is

erty should be changed. Let's
duce

stock

do
in have protested, "Why can't you be
industry's natural really nice, sensible people and

discouragement of investment
saving. The high tax rates on

and

steel

hypothetical

The

the

attack

What

and then life wouldn't be

tion.

calculating

fall.

would

writers

assumed

cut

Also

sense.

the

violent

keep

was
at
the peak of recovery before the
recession, and 1939 was a year of re¬
covery from the recession.
So 1938 was
considered the base only for the purpose

the

time
a

grow? Let us first try
removing some of the impediments
to growth a ltd I believe growth

substantial

year,

that

Government

can

course

But

1929.

find

same

suffered

began

the

will

the

common

rates

be, 10 feet tall.

desire

About

more.

and

shocked

were

every

West

Japan

in January—it seemed a
shame to break up the
party. But
a
little later many businessmen

22%

feet

now

Russians

What

had

lot

forget
that Russia,
much lower level

and with
a

five

not

starting

.more

increase

ton

the

should

about

without add¬

1961

This

million

for

single building

machine.

there

could in¬

production

million tons in

ours.

rapidly than that of Russia.

take us?

many

over

promises he has made to us, and

Has
as

going

nicely

gray

overt emotional involvement.

economy

were

untenable—the

governments have
to forecast that one oi> the two already assumed ,the responsibil¬
.
leading men will have plenty of ity of helping them).

with

the

people.

those

low

Tc meet

least in
Of

period

should

be the goats if the expenditure is
reasonably

past

consumer

government..

the

consumers

the

prevent

consumer

The logical answer is

goats?

that all of

the

which

Then,
the

the

income

tential

way. It must
actual or po¬

one

the

through 1955.

years

tional

worldwide.

1960

this

our

estimated

inclined

somehow

that

bills.

Federal

It
are

fellow"

"other

in the midst of our na¬

are

ment"

"the

think

rationalize

Political Issues
We

paper

often

rate

grow

order to release

needed

crease

been led to believe.

Furthermore,

not

man," there will be a bias awav
from our basic beliefs.
Also, it siderably

impending,

of the

administration toward

the one we've labeled as the "bad

port the view
that a serious
not

there will be a

man,"

basic

led to

tempt to sup¬

recession

of growth so

in his

that

annual

doesn't need to

business

"good

fact

creasing about twice

irrelevant, but illus¬

the

period.

toward

not

States

our

the discussion

should

nual rate of increase in the United

bias

second

portion

While

million

265

and

100

the

pres¬

the

denounced, and for this we
should be grateful; (3) if the win¬
ner is the one you and I label as

prices.

sure on

he will be more consid¬
the interests whicn he

(2)

has

will

create

(1)

erate

political
thinking
which

1965,

1961, and

rate of increase would have

sesses.

lines

trative,

during

debt and home mortgages from in¬

market

1980.

decades

will do much less
than than he promised,
and he
should receive our gratitude for

is, however,

would

tight

has

she

of-4.9%, the second 5 years, 3.5%
the third and 1% the fourth
5-year

crease

leader,

Russia

that

Somewhat

also

for

removing impediments to growth.

why I think the out¬ then he will go to work and use
real
the
elections
will not the
ability which he pos¬

greatly affect the

labor

the sake of argument.
If the 265 million is for real rather
than just a dream and we felt we

I shall state
come

where

point

decade

purchasing end of companies re¬
duced
their
rate
of
ordering.

word

The

capacity

our

of their

businessmen's "timing

facts

economic growth, and the need for

for

businessmen

inventory

already

certain

out

criticizes

and

American

necessarily assume that Khrush¬
chev is infallible, or even that he
is truthful, let's take him at his

ranging from rate of growth comparison with U.S.S.R.

prospects

timing

the

during his first 5 years (starting
with 60% the first year), a rate

McMillen's paper covers the spectrum

proach

been

I'd

will

1960, 78 million in

Dr.

Russia

grew

million

1961.

country, and

say

fines; and predicts economic improvement will occur by the middle
nomic news,

this

produce 71 million tons of steel in

downtourn—which he de¬

competition,
but
we
must no such need. The nature of a
panicked by unjustifiable growth curve is such that in the
fears, some of which may be po¬ earlier stages growth is at a much
litically inspired.
According to higher rate, such as in this coun¬
the New York Times, Krushchev try near the turn of the
century.
not

told

recession for the balance of this

higher

sian

Mr.
New York bank economist discerns

We dare not underestimate Rus¬

steel

venture

Russia

than ours.1

A. L. Stamm & Co.

page

The Commercial and Financial Chronicle

(1056)

wires

also the

and

Vice-President, New York Hanseatic Corp.,

By Maurice Hart,*

New York

„

inquiries that

some 10 teletype operators,
girls who record each trade
and believe it or not a board boy.

economy

with

ably originated when men bought
and sold securities pretty much
way

has

store or mill.

presume when
the Stock Ex¬

change

was

organized se¬
curities which
not

were

traded

the

Exchange
were
referred
to

those

the

"over
counter"

and

for

perhaps
of

lack

bet¬

scope

market

Counter Market

some

of them

quite humorous. Recently I was
part of a golf foursome. One of
the

members

time.

first

team

through the medium of the Overthe-Counter Market. A large per¬
of the stocks now

centage
on

listed

the stock exchanges came from

the Over-the-Counter Markets

such

popular trading favorites as

asked

a
Polaroid, Ampex, Transitron, Up¬
the john, and Pfizer and many others
casually were all formerly traded over the

in.

When I

met

was

for

counter.
"

mentioned Wall Street and added
over-the-counter

securities, this
his reaction.
"Say," he said,

was

fellows

"You

have

some

racket."

"Why do you say that," I asked.
"Well," he went' on, "I see you

bring out

a
it

and

stock

at $3
to

goes

$4 a

the

day. Wow, what a mark-up."

same

Perhaps his ignorance is excusable.

was

order?"

the

How

There
traded
listed

Well, let's see.

big is it?

are more

over

issues of securities

the

counter

than

are

all the national exchanges

combined.

supplied

Here

are

some

figures

the National quota¬
Bureau,
publishers of the
"pink sheets."
These sheets are
by

tion

published

said,

Eastern,

three

which

Western

favorably with all
major national: ex¬

the

sections

bond

shares of stock

over-the-counter

Most
are

to
a

dealers

retailers of securities. In order

they must not only have

steady supply of the securities

they

retailing but also

are

a mar¬

sell¬

ket in which to execute their

orders.

ing

Many

completely
that

our

ignorant

the

fact

trader who maintains the

market in the stock might be as¬
a market risk which could
easily resulted in a sizable

suming
have

loss.

Closer

Now let's take
Over

What

its

the

Look

closer look at

Counter

function

Market.

purpose?

How important is it to our Ameri¬
can

industry and economy?

How

bearish

bullish

and

the

are

almost

Over-the-Counter

the

broad

even

cape,

the

or no

inter¬

prefer
That is

Offers

Top

enlarged

trading

their

depart¬

ment and a number of them

al¬

have

issued

pamphlets to acquaint their
clients with the opportunities for
investment

over

securities.

our

the

counter

economy

ex¬

pands and new industries are de¬
veloped there will be a constant
flow of interesting new issues that
will be offered to the public: In
addition, many fine family-owned
probably be going pub¬
lic. Thus there will be many new

firms will

opportunities for investment in
growth companies. As here¬
tofore they will all first be avail¬
able only on the Over-the-Counter
Market:
- .*■ ' '

future

*An

address

by Mr. Hart before the
Society of Junior Investment
Aug. 24, 1960.

York

New

Analysts

stock

J. A.

Brady With
Greene & Company

the research

certain sixth sense.

Portfolio

opened

over-the-counter

department, he frequently has to
depend on instinct, his feel of the
market and

exchange firms who have

of stock

ticker, and is helped by the infor¬
mation given him by

A further indication

evident by the number

this is

either

same

The trader's plans must

time.

dealers on the

other hand have little

'•

•

;

•

.v."-

•

John A. Brady has joined Greene
& Company, 37 Wall Street, New

Choices

est in retail distribution but
to

trading business:

they maintain trading

The interest of investment secu¬

markets!'in rity analysts undoubtedly lies in
what

securities in which they

the

Over-the-Counter Mar¬

decide to
ket offers in the way of investment
Without these trading
for their clients' portfolios. In this
■:.0
organizations the over the counter
'i'i ,i
business would find it hard put to respect the Over-the-Counter Mar¬
ket offers a tremendous variety.
operate.
It is certainly a market of ex¬
!The questions are often asked,
tremes.
From Government, mu¬
"How does a trading department
and triple A corporate
work?"
"How do they pick the nicipal
bonds
to low-priced speculative
stocks they specialize in or trade?"
issues.
The securities of some of
"What
exactly does the trader
the world's largest and most suc¬
do?" The decision in which stocks
cessful corporations are available
to specialize is arrived at in many
only over the counter. The stocks
ways. The trading departments of
of the largest banks, insurance,
underwriting firms for instance
John A. Brady
and many utility companies are
usually specialize in the stocks
traded
almost entirely over the York
with which the firm has become
City, in their trading de¬
associated through various under- counter, as are the securities of partment.
the World Bank. In addition, there
Mr. Brady was formerly asso¬
writings, and which are traded
over
the counter.
In the case of are, of course, the railroad equip¬ ciated with Spencer Trask & Co.
ment trusts and many Canadian since
1943.
stock exchange firms, the trading
and foreign securities.
To these
department usually specializes in
we
must by all means add the
the over-the-counter securities in
specialize.

which the firm

research depart¬

electronic stocks

currently pop¬

Of course, there are many low-

priced
hand

stocks

there

are

but

the

WASHINGTON, D. C.—Sidney B.
Wachtel, former economist with
Laidlaw & Co., has been appoint¬
Shares of the

stocks like Chris¬

tiana Securities which sell around

$13,000
world's

share.
largest lumber

per

Weyerhaeuser Timber,
over

the

counter

company,
are

are

traded

those

Time, Inc., the world's largest pub¬
lisher.
The Grinnell Corporation
(the largest fire extinguisher com¬
pany), Anheuser-Busch, American

of course, are familiar names

trading houses.
Interest in proposed new issues
is

usually indicated by the calls
from

received

large

stock

ex¬

change firms inquiring whether a
will

market

made

new

When

A. T. Brod & Co.

other

department, if they have Marietta, American Express, Bank
reports from statistical of America (the world's largest
services«$:o which they subscribe, bank), and Aetna Life & Fire In¬
articles in financial periodicals or surance
Company are available
by an exchange of ideas with other only over the counter. All of these,
one,

Wachtel Joins

ular.

ket, and frequently trades in 50share lots or even less.
He was

the

He must have been

'X'."

recent years.
of

trading

and

entirely traded
Market,
surprised amount to some $150 billion. Mu¬
at my startled look.
"Well," he nicipal bonds outstanding repre¬
continued, "your trader made the sent some $60 or $70 billion and
market 200 to 210." "How do you
mutual funds
about $15 billion.
figure we made $1,000," I inquired. When we add to these,
banks, in¬
"That's easy," he replied in
all surance
companies, utilities and
sincerity, "we sold you 100 shares industrial corporate
securities, it
at 200 and you probably sold it at
must run into space-like figures.
210
that's $1,000."
How active is it?
There are, of
It so happens that the stock re¬
course, no official volume figures
ferred to has a very volatile mar¬ for
over-the-counter
"We sold you 100

assumes

500

over

Pacific ment recommends to their clients.
But even among professionals, it Coast.
On
an
In the strictly over-the-counter
average
business
seems
to
us
in
the
Over-the- day
all combined sections will trading organizations, the decision
Counter Market there is an amaz¬ carry approximately 26,000 listings as to which stocks to trade in or
ing misunderstanding of the Over- or quotations of over 6,000 indi¬ specialize^ are arrived at in vari¬
the-Counter
Market's functions vidual stock issues and approxi¬ ous ways. In most firms of this
and mechanics.
mately 1,800 bond issues. In the type the partners are usually ac¬
The other day I had lunch with course of a year an average of tive in the trading department and
a
senior partner of a stock ex¬
25,000 issues will be covered in make the decisions. Their choice
change firm. "By the way," he the daily service.
Certainly the may be dictated by the interest
said, "you made $1,000 on some value of all unlisted securities far that seems to develop in a pro¬
business we gave you yesterday." exceeds the value of listed securi¬
posed new issue: It may be sug¬
Naturally I thanked him and asked ties.
Government
bonds
alone, gested to them by their own re¬
"What

principal and

active

Our

business

what

the

whom

gentleman

acts

also

the

take posi¬

changes.

Hart

great extent by the securities in¬
dustry ' itself.
There are many
misconceptions on the Over-the-

and

ways
be subject to immediate
department change and he must adjust himself
requires a large staff and is equally to new market conditions.
all of whom are members of the a very active department.
More Although a trader may specialize
National Association of Security so recently, of course, with the in any given stock he is not alone
Dealers.
The association was es¬ increasing interest in bonds by in the field. In some cases there
tablished by an Act of Congress institutional and individual inves¬ may be as many as 15 or 20 other
for the regulation of the over-the- tors. I might add that we do busi¬ houses trading in the same secu¬
counter
business in conjunction ness in over the counter securities rity. In this the over the counter
with the Securities and Exchange all
over
the world.
While our trader differs from the specialist
Commission.
trading department is considered on the floor of the Stock Exchange.
One of the primary functions of one of the largest of its kind there The floor specialist has a decided
the Over-the-Counter Market is are, of course, numerous trading advantage as all the orders in the
to supply venture capital and sea¬ departments of various sizes not stock in which he specializes are
son
new
securities that come on only in New York but in financial funneled through him. In the case
the market. The Over-the-Counter centers all over the country.
of the over-the-counter trader, it
Market makes it possible for the
is a free-for-all. While the trader'
Explains Mechanics of Trading
small business as well as the large,
reads the financial pages, watches

Counter

in Over-the-

Counter Issues

securities has increased greatly in

except

Over-the- to raise the capital funds our con¬
Counter Market is so wide, the stantly growing economy requires.
The utilities, natural gas, chemi¬
number of issues traded is so large,
and TV,
and the volume is so, I might say cals' 'drugs,1''' bill "Radio
astronomical,
thgt,it has been minerals and most recently elec¬
called, and I think rightly, ""the tronics are some of the industries
world's greatest market." Never¬ which in the early d&yS'!of their
enormous
theless, it is the least known and development required
I am sure the least understood, amounts of venture capital, most
which
was
raised
primarily
not only by the investor, but to a of
The

Increased Interest

in they have an order or not. Except
actually for commission orders, the firm

issues

ment compares

stuck.

name

the

different issues. market risk.
The expert trader
day we will put must be adaptable and versatile
through anywhere from 1,500 to to the constantly changing market
2,000 or more trade tickets. Fre¬ winds.Some top traders make
quently the volume of , business markets in as many as 75 differ¬
transacted in our trading depart¬ ent issues. Thus, he may be both

newly formed corporations to have
a public market place for the se¬
Without the
The Over-the-Coi/nter Market is curities they issue.
also frequently referred to as the Over-the-Counter Market industry
would find it much more difficult
Unlisted Market.
Maurice

the

ter term

•

The interest in over-the-counter

What makes it tick? The Over-the-

Market

trade.

tions

they bought or bartered place but is conducted by dealers
all over the country, practically
supplies in a

the

300
•

markets

maintain

How does it operate?

it?

big is

whether

the account of their firm

large quotation board

about

which

expands.

the counter" prob¬

The term "over

have

and mechanics of this market in order to

scope
'

fact that the "over-the-counter" market is

greatest and yet the least known, Mr. Hart

help of

outlines the
make better known its
portfolio building potentialities. In one of his comments, he shows why
the floor specialist has an easier job than the over-the-counter trader
who competes with as many as 15 or 20 other traders in the same
issue. Noting the increased interest being manifested in the unlisted
market, Mr. Hart foresees a greater growth for the market as our
the world's

secu¬

3 card

Aware of the incongruous

rity analyst a very..challenging
opportunity.'
•
Keep in mind that every new

system which in turn requires the

City.

variety, offers

of its large

exacting
profession. Answering the thou¬ issue is first traded over the
sands of telephone and teletype counter even if it's slated to be
; •
;
calls that come in daily to an ac¬ listed eventually.
Hundreds of stocks now listed
tive trading department, they must
be prepared to buy and sell the on the New York or American
Exchange were formerly
securities in which they maintain Stock
trading markets. This they do for traded over the counter.:' \ aC-'/;,,;
counter trading is a very

nationwide wire

our

Thursday, September 15, 1960

very

experienced staff of 24 men made
up of traders, assistants and order
clerks service these
telephone
emanate from

essential, perhaps the most
essential, part of the over-thecounter
business
and
over-the-

ton, Philadelphia, Washington and
New Haven.
A well trained and

Over-the-Counter Market
—What It Offers Investors

I could

go on and name hundreds

years

oped

During the past few
large interest has devel¬
shrewd investors in

among

the excellent opportunities offered
in foreign securities—the stocks

Investment

the

T. Brod & Co., 931 Fifteenth
Street, Northwest, members of the

New York Stock Exchange.1
Before

entering

the

brokerage

business, Mr. Wachtel held several
government
financial
posts, the
most recent
ury

being with the Treas¬
Department's Office of In¬

ternational
Prior

Finance.

was

associ¬

ated with the Department

of Eco¬

and

others.

Director

Advisory Department, and Man¬
ager of the Washington office of

that,

nomics of New York University.

Dominick Firm
To Admit Two

widespread interest
of such fine corporations as Phil¬
usually add the stock
to our trading list as soon as it is lips Lamp (the European Genehgl Dominick
perhaps I can give
& Dominick,
14 Wall
Unilever (one of the
tion based on our firm's activities. released from registration by the Electric),
world's largest soap and cosmetic Street, New York City, members
In New York our stock trading de¬ SEC.
If we are members of the
of the New York Stock Exchange,
partment comprises a staff of about underwriting group, we are not companies), Bowater Paper (the on Oct. 1 will admit Andrew V.
well-known English paper com¬
40 people.
For the handling of permitted to trade a stock until
Stout, Jr., and John Morrissey to
pany), and Farbenfabriken Bayer
our
daily volume and to service the syndicate expires.
partnership.
(the large German chemical-drug
the thousands of calls we have
Describes Trader's Functions
corporation).
six telephone turrets, each consist¬
Harry Johnson Opens
The research departments of the
No
discussion
of
over-theing of 200 interconnected lines.
(Special to The Financial Chronicle)
Except for the extensions to our counter trading or trading depart¬ stock
exchange firms are con¬
central switchboard these lines are ments can be complete without a stantly scrutinizing listed securi¬ MILL VALLEY, Calif. — Harry
direct
private wires
to
banks, description of the functions of the ties for possible interesting situa¬ Johnson is engaging in a securi¬
brokers and dealers. We also have trader, the hub of the over-the- tions.
It seems to me that the ties business from offices at 288
trading, but
some indica¬

stock.

is evident

direct open telephone lines to Bos¬

counter

business.

Traders

are

Over-the-Counter Market, because

Miller Avenue.

Volume 192

Number 5986

The Commercial and Financial Chronicle

(1057)

just

that

with mutual funds.

•

not

surance,

;
w'tjji

must

funds

said

that at

their

the

mutual

obtained

"War

and

mutual funds industries
insurance
the

business

mutual

the

meet

fund

new

Peace"

between

extent, they did not enter
into
competition
with ' the
life
companies. Their action thus dif¬

of retaliation.

Mr.

industry to recognize it has

competition.

insurance

proposed

Insurance

the

industry;

investment than

proposes

insurance

life

avers

mutual

funds

insurance

which would

growth investment for earlier years and become
for

later

years,

the

mutual

cash

of¬

values

value

rapidly, thus reduc¬
fering of a $12 million stock issue ing the insurance companies' risk
—for the risk is only the differ¬
by a company entering the vari¬
able annuity field points up the ence between the policyholder's
of

seriousness

those

have

waged
for

right

this

new

the

sell
in¬

vestment/in¬
hy-

surance

brid

and

feel

that

r e

pression

incon¬

veniences
tendant

at-

rest

days

upon

In the de¬

the '30s when
appeal to the

the industry had to

commissioners

state

torium

upon

registration

this develop¬
make the life

solid foundation.

strictions

run

surely
industry

insurance

despite the \
and

amount

Under

long

will

ment

policy.

the

who

now

face

the

and

the hign
premium policies, that risk was
more rapidly transferred from the
company to the policyholder. Term
insurance has changed all that; it
provides no cash values to lessen
the companies' risk.

d e.t e rmined

fight

the

who

Norman

Dacey

the

for

mora¬

payment

sold to

all

are

cross-section■■ of

Ameri¬

A mutual fund which I

or¬

ganized in 1938 has insurance cov¬
erage provided by the John Han
cock Life Insurance Company at l
flat rate of $3.60 per year per $1,-

now

The mutual funds

importance
'thd

nine

estate

life

other

funds.

one

has

its

plight

investment management

investor's

fixec.

own

choosing

whose performance record will be

exposed daily to the searching eye
of the public.
If the life insurance industry is
going into the mutual fund busi¬
ness, perhaps the mutual
funds
should go into the life insurance

business.
New Mutual Fund Aim

Incidentally,
investors
cumulate

growth

are-

would

during

years

that

there

who

their

many

ac¬

earning

common

stock

but

fund

recognize

who

balanced fund may be more
suitable
at
retirement.
Unfor¬
a

$1,000. Tht
groups being covered are all quite
similar. If the Hancock can prof¬
itably provide the coverage foi

tunately, they are locked into the
made a real effort to
more volatile fund by their capi¬
tal gain tax liability. The solution
co-existence, even to" the
point of banning, through the in¬
may lay in the establishment of
a "1970
strumentality of the NASD, the $3.60 per year, how does one jus
Fund," a "1975 Fund," a
use
by mutual fund salesmen of tify the other premiums which "1980 Fund," etc. Each fund would
time

sales literature
way

should

are

suggesting in any
existing life insurance

that
be

surrendered

and

100-200%

cult to

the

fering rates

proceeds invested in mutual funds.

same

can

It is diffi

how

such

the

denied

highest
the

life

fact

that

tual

funds

level,

cold

and

they have
inescapable

insurance

and

mu¬

dif

be set by under¬

writers

higher?

understand

supposedly all
mortality table.

using

the

A Mutual Fund Life Insurance Co.

its

;date

growth fund until it reached

after which it would
automatically convert to a bal¬
anced fund, not by selling its com¬
mon stocks but merely by putting
incoming new money into bonds.

The mutual fund industry has
well lie in the come of
age. It is time for it to
Mutual Func stand erect.
tive, not because mutual funds
It
has
fought its
provide protection (for they ob¬ Life Insurance Company which
way upward through the stigma
viously don't) but because life in¬ will not deal directly with the of a second-class
investment, ac¬
surance
persists in calling itself public but whose only busines. cepting without real protest a
will be supplying life insurance
a good investment (which it isn't).
Statement of Policy which brands
for voluntary and contractual in¬
its field organization as an army
.Mutual Funds Awakening to
vestment plans offered by mutua. of
financial
cut-throats.
Thou¬
are

fiercely

The solution may

competi¬

organization

Competition

funds.

Because

will

non¬

obviously undersell
and sale as a
;•
<
•
••
the mutual fund field by the in¬ even the $3.60 per year per. $1,001
as
a
security under the critical eye of surance
It wih
savings
account.. surance industry
proponents
of- rate for such coverage.
the
Securities
and
Exchange When the policyholders found the variable annuity will provoke eliminate the present curious in¬
themselves in financial straits and an "agonizing reappraisal" of the consistency in rates for such plans
Commission,
they I can
success-,
fully ■ develop a-popular demand demanded their savings, the com¬ posture of restraint which has —all mutual fund.plans will offer
for their product.
Be¬
panies could not deliver.
They characterized the funds. Perhaps coverage at the same rate.
There are those who feel that were actuarially sound but they the; cold fact that the insurance cause it will not be out selling its
had just never counted upon sucn companies
are
moving into the merchandise, it will not have the
at best the variable annuity is but
mutual
fund
business
with
all enormous promotional expense ol
a
clumsy duplication of the job a demand for cash. If they had
their
merchandising
skills
and life insurance. It will have no in¬
now
being done so ably by the sold nothing but term insurance
department
expense
mutual funds.v Certainly, it might prior to .. that mtime,v there would $ 1 most
unlimited promotional vestment
may
awaken
mutual such services as are needed will be
be well for prospective purchas¬ have been no demand upon them budgets
fundmen to the realization that supplied by a revolving committee
ers
to consider that it is essen¬ for the "savings" they were hold
life
insurance
is
their
greatest of investment experts from the
tially an investment and that an ing and they would not have had
to apply for a moratorium.
competitor and that they had bet¬ participating mutual funds. The
historical record of demonstrated
While officially maintaining an ter recognize that fact and plan capital to get it under way can be
investment skill is the one most
their sales effort accordingly.
provided by a bond issue sold to
of
.dignified
reserve
important factor to look for when attitude
; Of course, many funds are be¬ the participating funds.
selecting investment management. toward the mutual funds, the life
The certificate which the Mu¬
holden to the insurance industry
Many feel that insurance com¬ insurance industry has been en¬
Life Insurance Com
for the insurance coverage which tual Fund
panies, historically committed to gaging in a knock-down fight at
investment
in
debt
Reputable they offer in connection with their pany issues to each insured par¬
obligations, the ".salesman- level.
contractual
plans.- There is nc ticipant in the mutual fund ac¬
men
in -the
are not particularly well qualified
industry have not
cumulation plan can contain tables
above
to manage a portfolio of equities. been
quietly distributing question but that the life insur¬
provision is r an important showing the amount of annuity
The variable annuity will be in literature describing mutual fund ance
which the company will provide
the experimental stage for a long shareholders as "lambs being led additional feature of a contractual
various
retirement
ages
for
the
mutual fund .slaughter." investment plan. Mutual funds and at
time.
It would seem prudent to to
stemmed from
the fact that it had sold life in¬
values,

the

rate of $9 per year per

invite

cash

companies under¬

$1,000 and at least

better be left to
They have at the

but with

At least, Proposes

000 at all ages up to 55.

'•

are

prospects.

planning might

cash

announcement

policies

They write similar plans for other fund;,
merely stated with increas¬ at a base rate of $6 per year pei
ing persistence that life insurance $1,000. Several mutual funds of¬
investment
was
not a good investment and fer
plans with lift
that the investment part of estate insurance at $7.20 per year pei
of their

same

Recent

programs

cans.

outright competition
the

which

upon

bewildering to any lay¬
Ostensibly, these
invest¬

ment

com¬

structure
cost group

have

balanced fund

life

affiliates, have

denied

not

plans

and

offer

the

life" 1 insurance1 ' in

provide protection;

objective for mutual funds

new

provides

into

have

and

with the funds.

provide insurance for voluntary and contractual investment
is said to constitute a "perfect 'variable annuity.'"
Mr. Dacey comments on the unexpected effect term insurance has
had

fund

entered

Co.

would

plans

that

mutual

of age and to

Life

Mutual

similar

from

man.

panies who, through the variable
annuity and through their own

Dacey admonishes

come

based

fers

and

entry of mutual funds into the life

propose
way

life

the

rate

these low

this

By Norman F. Dacey, Norman F. Dacey & Associates, Inc.,
Bridgeport, Conn.
on

The

from

coverage

regular insurance companies.

Reflections

provide the coverage which makes option.
Thus, he will not nave
their plan more desirable. To this realized a
profit and will not be
extent, they are captives of the liable for a capital gains tax. Here
life companies.,
is
a
N
perfect "variable annuity"

coupled

least they

insurance

Perhaps this present invasion of

profit, it

can

sands of honest fundmen, emulat¬

ing

the

industrious

insurance

man, have
the bushes

gone out and beaten
for business only to

have

industry and persist¬
as "high pressure."

ence

their

damned

The

average

mutual

fundman

doesn't understand the outcry. He

has

just 'gone right

The
cans

will

working.

generation of Ameri¬
its financial security

owe

largely to him.

defer

entering

tract until

into

such

While

con¬

those who offer it

point to concrete results instead
of merely high hopes and good in¬
tentions.
It

passed

■:

industry or from indi¬
long associated with that

insurance

that

this

periodically

and

pious resolutions agreeing
be beastly to each other,

the

salesmanagers

fought

each

Curiously,

life

segment of the
industry has raised

one

insurance

mutual funds.

Company, 30 Broad St.,
York
City, has announced

New

that Harold M. Wit is

ated with their firm.

now

associ¬

Mr. Wit

was

formerly Vice-President and Sec¬
retary of The One William Street
Fund.

With Keenan & Clarey

(Special to The Financial Chronicle)
such plans each $1,000 which the investor
walk a tightrope, trying to mer¬ has accumulated in mutual fund MINNEAPOLIS, Minn. — Eugene
Smilev is now connected with.
He will not be "selling" P
chandise their plans in competi¬ shares.
tion with life insurance but with¬ his shares and buying an annuity Keenan & Clarey. Inc., First Na¬
out offending the companies who but merely exercising an annuity tional Bank Building.

sponsors

who

offer

This announcement is neither
The

offer to sell nor a solicitation to buy any of these securities.

offering is made only by the Prospectus.

These

the

are

com¬

September 1h, 1960

NEW ISSUE
:

•

■

•
.

■

Company

objection to the growth of the

•

'•

•

panies who have been supplying
the

with

funds

life

insurance

191,667 Shares

guaranteeing the comple¬
periodic payment plans in
event
of
the
planholder's

feature
tion of
the

death

during
accumulating
nest

the
his

Harvest Brand, Inc.

he was
mutual
fund

years
•

arrangement has
proven
very
popular
and
an
The Boomerang in Term Insurance astonishing
volume of creditors
This development was probably reducing term group insurance is
Many life under¬
inevitable. There is an old adage now in force.
which says, "if you can't lick 'em, writers have bitterly protested
this plan which made insurance
join 'em." For a long while now
mutual fund combination.

Allen

Life Insurance in Mutual Funds

new

panies into the mutual fund field
via the organization of their own
new mutual funds or by purchase
of control of older, dormant funds.
These companies are training their
sales organizations in the skillful
merchandising of a term insur¬
ance

Allen &

other tooth and nail.

competi¬
tion for the mutual funds origi¬
nates. An allied development has
been the entry of some life com¬
industry

met

not

principally. from - the life?

viduals

leaders of the two in¬

the

dustries '

can

Harold Wit With

This

egg.

companies have watched
with dismay as the mutual funds
deep inroads into their sale
insurance .pol¬
icies.- The trend toward term in¬

under

of investment-type

spokesman for the New York life

■

Price $6 per

protection available at a premium
far less than they could offer it

made

Common Stock

the

life

surance

tional

had

and away from the

high premium policies has
far-reaching effect upon the

insurance
It

tradi¬

was

dowment

and

high premium en¬
retirement income

policies. which built up the huge
reserves

Which --the

companies

hayer.put to-work-so profitably fAr
so .many years^ Such policies built

underwriters
observed
who

that

were

policies.

association
the

life

supplying

sourly

Copies of the Prospectus may be obtained only from such of theas may lawfully offer these securities in this State. •
•
- •

underwriters

companies

the

mutual

funds with this low-cost coverage

industry.
the

individual

competition with the life agents

were

"devouring

young."
ers

S.
RELLUF.D

own

But then, life underwrit¬

in the field- have deplored the

growth; of -all- low-cost- group in-»*

••

, ■

■■■

...

..
-1.

■

—

Boston

An underwriting group

headed by

STOCKS

BY LEO I.

This Week

500,000.

—

Business

Small

the

Act

The

1958.

wide
of executive, advisory, and

range

financial

is John P. Chase, a

man

Board Chair¬

activities.

principal

executive officer of John P. Chase,
Inc.

since

the

Chase

1932, and

Shareholders'
John
and

Trust

Powell

Boston

Jr.

director of the

ration

and

serves

President
corpo¬

chairman

before the extent of dam¬
be measured in claims upon individual

can

drop of 4

investment opportunities.
securities often is ignored: or forgotten due;
to stockholder difficulty in following performance of over-thecounter issues, the status of most insurance stocks. Once directed,
such attention will reveal the positive market trend existing today
for insurance stocks in contrast to. the general securities market.
This

and

Boston.

new

casualty stocks

trustee

Fund

it stormed the Atlantic Sea¬

Insurance, Great American Insurance, Travelers, and U. S. Fidelity.
Insurance coverage of catastrophes, the chief reason for the
livelihood of the fire-casualty business, is one of the main essen¬
tials of modern living.
Hurricane Donna provided a harsh but
clear-cut experience to the public that insurance companies stand
ready to fulfill their roles of insuring uncertain risks. While in
this instance the overwhelming publicity carries adverse implica¬
tions for insurance companies, the lasting effect may well be one
.of arousing the public to seek more adequate insurance coverage,.
Another effect may be the direction of investor attention to fire-

Investment

property damage

points in the stock prices of Home Insurance and Aetna Insurance;
3 point drops occurred in several issues, including Glens Falls

under

company's priY

experience

into

group

On average,

vice-president of Harris Intertype
Corp.
Other
directors
include

fire-casualty stocks, since the beginning of 1960, have
^registered a gain of approximately 5%, while the 500 stock Stand¬
ard & Poor's Average, for example, has declined by some 5%.
Several issues, of course, far outperform the averages.
To date,
market appreciation by Merchants Fire Assurance and U. S. Fidel¬

Wendell B. Barnes,

Administrator

ity & Guaranty head the list of the representative stocks presented.

of the Small Business Administra¬

This sustained market action is supported by the trend of net

of Allied Research and J

the board

Service Corporation.
director

former

and

tion from

He is also

financial

1959 and

1955 to

now

which on average are running about
5% ahead of a year ago. By midyear impressive writing gains, in
excess of 14%, were registered
by Northern Insurance, Govern¬
ment Employees Insurance, Aetna Casualty & Surety and Ohio
Casualty. The table presented includes, for comparative purposes,
individual company gains in investment income. The investment
earnings thus far are in line with the 10% rise estimated for 1960.
premiums

associate

senior

with
Shearson,
Co.;
and
Carl
R.
senior vice-president; of

Hammill

Hauers,

John Hancock Mutual Life Insur¬

Company.

ance

The

corporation intends to in¬
primarily in equity securities

vest

(sales)

written

small

selected

be¬

lieved to possess attractive

growth
will
advisory and man¬
counseling services -for

possibilities.
also provide
agement

The

company

business concerns.

small
The

corporation has

board which will assist

cal

evaluation

individual

includes

nautics

in techni¬

Bid

Recent

Indie.

Yield

Inc.t

I960

Divid.

Aetna

Casualty & Sur.
(Fire) Ins. Co.
Agricultural Ins. Co._

$1.20
2.60

4.1

1.5

87
87

66
61

1.4

Aetna

3.0

3.2

—5.4

1.60

4.8

-2.0

—2.8

American

1.30

4.6

> 2.2

—1.6

1.80

5.1

N.A.

—06

Insur.

Boston

Co.——

Continental

Casualty.

" 74

1.20

1.6

2.2

t o

ever

Professor:

of
at
;

speaking
extemporane¬

before
Marcus Nadler

group
of
electrI c /and
a

gas
in

y,■■

!-o;,,,y ,v.;;.y

;;v, ••

utilities marketing executives
New York City on Sept.
12,
"in the midst of

justment"

rolling read¬

"barring un¬

that

and

foreseen events" over-all business

will

conditions

greater
along the line.
The occasion was the opening ses¬
sion of the three-day 24th Annual
Ebasco Services Client Companies'
Marketing Conference.
/
*
J
"There will be no boom,"
he
-said.
"Nonetheless, it will be a
well-defined upswing in all busi¬
ness
areas
regardless of what
man succeeds to the Presidency."
display

all

improvement

—

Nadler said

Dr.
was

did

not

that while

1960

recession year, it never

come up

down in

1960 because

short

the

profit margins are growing tighter,
industry will continue to spend
more
money
to compete in the

stated that the American economy
was

the

supply of mortgage
•money. This situation should im¬
prove and should contribute to a
better business tone."
He
said
that while corporate
of

University,

ously,

been

."have

Yor k

New

have been somewhat
uneven, Dr. Nadler said.
"Home
starts,"
he
explained,
GNP picture,

and

Finance

activity

volatile

most

the

tures,

Nadler,

Dr.

•,

economist

govern¬

this

throughout 1960. Capital expendi¬

■;

local

and

echoed

have

ments

Marcus Nad¬
ler.

state

Federal,

D r.

to the glowing expec¬

both

abroad.

and

here

markets

competitive

highly

pointed out the slug¬

Dr. Nadler

gish state of inventories, but said
hand to mouth buying

that while

will

exports

continue,

ac¬

celerate and investments will also

in the months ahead.
He did not see a "major war"
between
the United
States and

be higher

despite this "hot and

But

Russia.

between

relationship

cold

one

our

their

means

our

which seeks to
system
by
every

and

country
destroy

disposal,

and

de¬

uncertainty which this
nerves imparts,
American

the

spite

war

good."

will

business

On the political scene, Dr. Nad¬
predicted
by
many
ler said that a major
responsi¬
.economists. ; Y y';Y'iYYvYy" Y'
tations

ties- but

price of commodi¬

these

forces

same

are

bility of the new President will
to

both

dollar

integrity

the

protect

our

and abroad.

here

Harold H. Scaff, Vice-President
rapidly being brought under con¬
of
Ebasco
and
William
Byrne,
trol," he added. Y
Dr. Nadler told the utility exec¬ Ebasco Director of Utility Market¬
utives that there has been no evi¬ ing,
presided at the
Sept. 12
dence
of
major abuses in our marketing session.

2.8

Continental

Insurance

2.00

3.9

—3.7

—5.7

businesses.

Draper,

Federal Insurance Co.

1.00

1.6

7.4

9.4

Fireman's Fund Ins.__

1.80

3.5

0.1

—0.5

Astronautics

Glens

1.00

2.8

—0.9

—4.6

—5.5

—6.7

17.8

20.4

3.0

—3.2

2.6

0.0

Charles

and

di¬

Falls

Insurance

15 ::

1.00

4.5

Govt. Employees Ins._

1.00

1.3

Instrumentation

Laboratory at Massachusetts In¬
stitute of Technology; Dr. Merritt

Great American Ins.—

1.60

3.5

*1.10

2.2

the

have

accord-

1961,
i

government

—7.2

Insurance,-

Globe & Republic Ins.

rector

1959

Department of Aero¬

Dr.

and

months

and

highest levels ever. People
been
spending more than
before in our history, and

their

twelve

better

to influence the

First Half

Mean

~~ 1960-1959

Margin

Invest.

Price

..-Price Range

.■

Gain

....5

Approx.

-A''"

and

industries

small

of the

Head

advisory

Consumption

"The forces of inflation continue

Profit
■

businesses

Underwtg:.

Leading Fire-Casualty Insurance Stocks

securities with equity features

even

which is basically sound.

economy

expenditures — two of the three
factors contributing to the Gross
burgeon
National Product—have been at

should

which

economy

fire-casualty

insurers, market psychology brought about

company

Management of Boston Capital
has

by this catastrophe

age

capital appreciation.

Corp.

for

board. While considerable time will pass

objective will be investment

mary

for

licensed

and

1940

trend

immediate result of this week's

the

was

market

lashing given by hurricane Donna

end, non-diversified management
investment
company
registeredunder
the
Investment Company
Act

stocks

closed-

Insurance Stocks

abrupt setback in the strong

Boston Capital Corp.

this slightly

golden year of I960
will witness a slightly improved

HURRICANE DONNA DENTS RECENT MARKET STRENGTH

$22,-

Rules out major war.

"tarnished"

$15 per share, the offering will

proceeds

regardless of who occupies the

areas

President.

The fourth quarter of

a new small busi¬
investment company. Priced

gross

business

all

upswing

BURR1NGTON

office

Capital Corp.,

realize

196J

Thursday, September 15,

Leading

Shearson, Hammill & Co. offered
on Sept. 14 1,500,000 shares of the
$1 par common stock of Boston

BANK AND INSURANCE Nadler Sees Improved Economy in 1961
economist does not expect a "boom," but a well-defined

Capital

Stock Offered

ness

Financial Chronicle

The Commercial and

(1058)

Farmers Home Securities

of the Col¬

Hartford Fire Ins.—_

lege of Engineering, Pennsylvania

Home Insurance Co.—

2.20

3.7

0.3

—2.0

State

former

Ins. Co. of N. America

*1.80

2.7

4.3

—2.1

manager of the Burroughs Corp.
Research
division;
and
Rulon

Maryland Cas'lty Co..

1.50

4.1

2.4

—1.7

Merchants Fire Assur.

*1.60

4.2

—1.5

—7.5

Williamson, Dean

University,

and

vice-president-material,

Nagely,

Capital Corp. will retain

Boston

Allied Research and Service corp.,
75

Federal

Street,

Boston,

National Fire Ins..,
New

North American Aviation, Inc.

Mass.,

149

Northern Insurance

-110

119

2.00

1.7

—0.2

*2.20

3.9

2.9

1.50

3.5

—3.7

*0.72

3.0

6.0

8.4

Phoenix Insurance Co.

71 ;

3.00

3.9

—0.8

—5.9

—

0.80

3.6

2.20

3.9

2.5

*1.44

2.5

4.0

Springfield F. & M.„

1.00

3.0

Standard Accident

Trapani Joins

25
58

St. Paul F. & M. Ins..

and

consultant.

Prov.-Washington Ins.
Reliance Insurance

adviser

investment

its

Travelers

(Indemnity) 102
U. S. Fidelity & Guar.
43
Western Casualty Ins.
47

D. H. Blair & Co.

"•Increased

Ralph

firm

pany,

Blair

Com¬

42 Broadway, New York, as

counter
was

the

trading

firm's

over-the-

department.

formerly with Goodbody & Co.

dividend

investment

expected,

under 50%

4.0

1.6

19 —1.7
13

—3.2

—3.3
;

3.1

—5.2
r

0.1

N.A. Y '5.6 —0.5

1.00

2.5

2.2

0.0

' 46

2.00

1.40

1.0 —0.8

I960

1.40

3.0

4.4

2.6

first

half

1959.

improves, cash dividend increases can
this time since cash payouts remain
investment income for fire-casualty companies
at

cash

Casualty & Surety, Government Employees Insurance, In¬
surance
Company of North America, New Hampshire Insurance
and Springfield Insurance.
The most recent declaration is by
holders of record October 3.

Thus far in 1960

CITY BANKS
CIRCULAR

•

acquisition activity includes American Surety

Members

120

York

American

Stock

Exchange

Stock

Exchange

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

7-3500

Teletype NY 1-1248-49

Specialists in Bank Stocks

credit

counseling

Home

the

Administration,
United

the

States

and

Farmers

agency

Department

Agriculture. Of especial interest
of the
investment

It offers an
opportunity in one or

agency.

(1) Banks

notes

$15,000 in size and
carry a 4% return to the investor,
with a five-year optional redemp¬
tion period with an attractive re¬
average

newal feature. These loans may be
area served
by the

community

underwriting experience, barring further catastrophes,
should continue to trend upward due to higher premium rates in
force, improved selection of risks and better expense control. Only
seven

results.

the

issues

presented

With investment income

earnings for 1960 in

excess

the rule rather than the

experiencing less profitable
consistently improving, operating

are

of 25%

exception.

over

1959

are

expected to be

delivered in any

can

$35,000,000.

These

notes may be redeemed at the end
of 90 days or held for an addi¬

tional

12-month

which time

ketable.

they

These

comoetitive

tage

option,

these

term

the flexible

re¬

particular advan¬
investors. The full

most

Government

short

the

have

and

during

period,

are readily mar¬
notes
today are

guarantee applies to

notes,

well.

Any lending institutions or indi¬
viduals

funds

interested

investing

these

guaranteed loans
snculd write to the Administrator,
Farmers
Home
Administration,

Washington 25, D. C.

bank and participation in the pro¬

Form Life Sec. Corp.

would enable the banker to

gram

be of service to

agriculture in his
with no risk factors

involved and with

(2)

Overall

and

amount

newal
may

located in the

Glens Falls Insurance.

able

market

forms:

three

Company by Transamerica Corp. and Freeport Insurance Co. by
Springfield Fire & Marine Insurance. Two companies have pub¬
licly become merger candidates, Massachusetts Bonding and, more
recently, New Amsterdam Casualty. Strengthening the trend to¬

Marine, and

Laird, Bissell 8 Meeds
New

assisting farmers with credit

ward life insurance with fire-casualty coverage are steps taken in
1960 by Great American Insurance, St. Paul Fire &

LEADING NEW YORK

Members

facility and ease of committing a
investors, institutions, sizable amount of money at one
and bankers. It has particular sig¬ time.
nificance for banks directly serv¬
(3) For short term needs a very
substantial block of notes bearing
ing farm communities.
Among the financial institutions 3% return to the investor is avail¬

individual

United States Government. These

Several

past. Recent changes in

A^'eultural credit is of interest to

Aetna

group.

institutions

financial

other

brought renewed interest in the FHA

purchase in¬
dividual loan notes, fully insured
by the full faith and credit of the

and

agricultural program.

is the insured loan program

Western Casualty, an 8Vs% stock dividend payable October 14 to

BANK STOCK NOTES

interest rates have, of course,
/ ■'

during I960,

over

income

especially

of net

declarations
of

banks

dividend increases to stockholders al¬
ready have been declared in 1960. Stock dividend declarations and
payments this year have been made by Hartford Fire Insurance,
as

Manager

cash

fImprovement in first half

York Stock Exchange mem¬

New
ber

has joined the

Trapani

—

2,000

—1.5

Casualty Ins..—

Ohio

About

have invested in these insured loans in the

1.1

of current invest-

reminded

are

opportunities in the insured loan program of the Farmers Home

Administration.

2.6

Hampshire Ins.

Individuals, institutions and banks
mant

loans

substantial

bearing

with

servicing.

to
commitments,
interest
and

five-year redemption fea¬

may

be purchased in blocks

$2,500,000. This offering

for the institution that

wants

(Special to The Financial Chronicle)

LOS

ANGELES,

curity

For institutions wishing

make

ture

Calif.—Life Se¬

Corporation

business

securities

conducting

from

at 7715 Sunset Boulevard.
are

Martin

dent;

Remi

President;

the

Treasurer.

and

offices

Officers

Schwartz,

Presi¬

Saffran,

Vice-

Devora

Saffran,

Volume

192

Number

5986

The Commercial and Financial Chronicle

(1059)

m.,

...

let science make you

Relax

Some

hand in

things to

come

comfortable

ordinary-looking liquids are mixed together. In minutes they

react, and the mixture foams and rises to become one of today's finest cushion¬

Learn about the
on now

exciting work going

in chemicals, carbons, gases,

metals, plastics, and nuclear energy.

ing materials—light, tough polyether foam. This is the magic of chemistry.

Write for

Booklet

People everywhere
foam. It
your

can

favorite chair

mattress

are

enjoying the restful luxury of this

be tailor-made for any use
or

or even

automobile

firm enough to give restful support in

firmer for the safety padding on your

board. In thin sections, it's being used as an interlining
insulation for
foam in rigid

new

soft enough for the cushioning of
a

"Products and Processes"

L, Union Carbide Corpora¬

tion, 270 Park Avenue, New York
17, New York. In

Canada, Union

Carbide Canada Limited, Toronto.

automobile dash¬

for winter clothing and

sleeping bags. And because it contains countless tiny cells, this

panels makes a highly effective insulation for walls and refrigerators.
Many of the chemicals needed to produce these useful foams

...

polyethers to form the structure, fluorocarbons to expand the foam, silicone oils
to determine the cell

size, and catalysts to trigger the reaction

...

are

created

by the people of Union Carbide. Their continuing research in the ever-changing
world of chemistry

promises to bring many more wonderful things into your life.

...

hand

things to come

The Commercial and Financial Chronicle

(1060)

THE MARKET

ments

AND YOU

...

which

from

year

doubled

were

10%.

last,

Attractiveness of Ireland

/.'■*v,.>■.

High Yielding Convertibles

BY WALLACE STREETE

From

straight yield point of
view, the oddities are the convertible

combination

the

and

oiin Mathieson's convertibles is
4.8%, for instance, against a remany desks bare in Wall Street, the strife elsewhere. Also keeping turn
of 2M>%
on
the common
added
up
to
low volume and the
followers
of
the
coppers stock. Reynolds Metals, which has
widespread disinterest.
restrained is the decline in the been suffering lately in tune with
steel operations

The rebound in

price

metal

the

London, other aluminum producers, has

The O'Dougherty Castle

2nd convertible preferred offering
a 3.9% yield against the nominal
was
hardly cheering since it their price level more than three 1.1% for the common. These are
indicated no great rush of fall cents a pound above the London not the only such by any means,

The island which

49.2

think

—

orders.^ The rate was 52% in the

toel.

thought this was a good op- verdant,

portunity to spend a week there,
Hence, we disembarked at Cobh.
'
:
'; f

holiday-shortened week which raised doubts that Amerito 52.7% of capacity can
producers
could maintain

the

after

"Ireland"

distinct

two

too-high

upward

sharp

hopes

bounce

for

last

once

year's long-strike ended. Tied in
so closely with another giant segment of the economy, the auto
makers, the steel rate indicated
that both are doing a bit less than

normally
of

down

business

record

make

double-barreled bar to any excesmarket enthusiasm.

sive

(Eire) there

Dry has

with

scattered
lis

now

bottling

around.

the

which

Castle

built

tip

this

Mrs.

Babson's

200

years ago.
It
constantly in trouble. It was
by the English some
40
years after it was built; then the

taken

—--

—

plants
to

was

■

O'Doughertys 'got,

Company Giving—Leo J. Shapiro

addition

wen-Known

been

abroad,

rapiuiy

bring home with me and have an-

chiefly

northwestern

ancestors

expandto the
point where it services 53 foreign
Canada

jng

are high cliffs. As I worked
the West Coast and noticed
this beautiful, unoccupied ocean
frontage, I systematically took
samples of the soil. These I will
up

country, which has the remnants

settled

was

The

^ At-rsrrt-it-

L/f If 11/ VJ LI L^T Xj»
JL>V/VyXVOAiJLjJUI?

4%%.

than

oetter

countries

Come?

Lows to

New

plus

meadow

Protestant section is O'Dougherty

Businessman's

anticipated for this year,
an
above-average yield of

Florida Some of this
farm land extending
to the water; in other places

ing that of

politically,

Scotch.

record profit last year and a new
peak

Land

Ireland is smaller in

aiyzed. This land sells at a low
prjce per acre and is fairly rocky,
suitable,
from
our
standpoint,
only for pasturage. It also is difficult to purchase large tracts of

all year despite

four points

than

of Pasture

than Pennsylvania, yet it has

area

consists

divisions

{The views expressed in this article The Republic of Ireland

which has held in a range of less

Value

Although

IIiai-vc.uua
marvelous ^CCU1 frontage CALee„.
ocean
exceed-

pre-holiday week, but ran around stocks represent _gopd value de- do nQt necessarily at any time co£„. comprises four-fifths of the area;
54%
during the normally slow spite the uncertamties and yields cWg whh those of the «chronicie» its population is independent, and
summer month of August.
run b to b Vz%_tor inspiration, They are presented ^ tJwse
, the largely Catholic. Northern Ireland
Kennecott and Phelps Dodge.
author only.]
Steel
production has been a
consisting of six counties is still a
member of the British Commondrag on the well-being of the
The neglected item in the soft
wealth and is largely Protestant.
general economy all year, in part drink
section
is
Canada
Dry
because

on
its way to Liverpool.
As rather than coal. Little wood is
neither of us had been to Ireland, left in Ireland, but the fields are

thargic market and a week starting from the country were continuing
off with
a
hurricane that kept at about a normal level despite

—from

The Steamship Mauretania, upon Hotels are reasonable, the food is
which Mrs. Babson and I were good, but bathrooms are scarce
travelling, stopped at Cobh, Ire- and cold. The rooms are heated
land to drop off a few passengers by open fireplaces, burning peat

preferreds that
than
the
common
which they are con-

hobble the stock market this week

By Roger W. Babson

and

to been back in a mundane pattern, yield
more
particularly
when it
appeared stocks into
le- that shipments of the rea metal vertible. The indicated return

continued

irregularity

Price

bonds

Thursday, September 15, 1960

...

bac,k

acres.
However, I
this land might be

thousand
think

should

excellent investment for those

with patience who are willing to
visit Ireland once
every
other

and talk with those to whom

year

+f°r they rent.

diversified -Survey Press, 814 North Michi- about 40(years, and^thereafter the
j was much surprised at the
S<
gan Ave., Chicago 11, 111.
(cloth)P y
Th^rp ic
lpcenn
temperature of Ireland. I saw
$5.75.
—$5
Jhfnh ma'v
palm trees growing in the southaiveismeu

ana

™
*
•
*
v its
well-known and
The averages, +
toying with1 their soft
their
drink
jine
its
wine
and
line,
lows instead of witn even
lows instead 01 with even crkiHtc ^ivieinn hnc hppn crowing1
.

iars
year s

spirits division has been growing

thl cautfon®

mustrated

starkly

steadily' now accouPtinS for some Current

Economic

Comment

countries

^here property has^jeen

portion, and J^was toldtaat,

freezLake
xl

lom
«

tin L

iLm i6

™

posted or whetiier new ones are

action

many

kfy issles

well

since

threat
well

oil and

the

niSsibilitv

they

"market"

the

have

thedebate'

the

ones
was

deflate^ already.?

While

burned

•

L°W Price"Earnings Rat,os

Housing; Significance

stolen

little

whether

lower

higher raged on, a growing number
of market
spectators were

voted to issues with a modest
price-earnings ratio because some

of New

nal

J?«<»

tion.

spectacular

the

Lorillard,

Investment - Donald. C. Streeverid

.no.

T3,ir.;

and

of Economic

Bureau

Busi-

RncPoroh

when

TTn

haPilin thy succes|.

was

rvP

tsr

tinno

tmued
tinued

on a

^1I»H

fnr
called for

activity

con-

high plane that hardly
raainv
raging hMr market.
bear market

Protected

Well

High Yield

lnn

15_times

to
•

-i.r

....

whirb

^Wester:n ■which
einlan Railwav and lias nronosed
r/hp

fftn

Npw

T o»ic

and, in addition, comoari-

season

with

vpflr

will

ndo

fa^rable became Vel win
strike olaeSed
nerfod of
as

covered
covered

earlv month

1959

reoorts

vXn actfviibS
when activities

neriod
period

a
a

stepped

cover

abnormally

rLm

Ynrk

Phi

well

Tw0

Applicable

Broadway,

270

rLu^nf

^
^

Thev

m-'e

JLnkV ?1+p

ysis

lnternational

i,■ ?

Paper which made the
lows list and in the process

sold at its poorest price since 1958

although
nf

the

paper

industry

H'c

competently

run

sales

Ind a
f

company

growth and
was

tv.«

rSl

over

last

itnm

•

„

•,

f-4

„

44.

ii-4

RAdr,in^
«,esi

ainea

?auy

increased

jast year
an(i

wben

j.Q

tbe

Boulevard.

Mr.

Cosgrove

was

formerly with First California Co.

=================

NSTA

NOTES

its

dividend

quest).

the present rate

economies

the

that has

fits

better

even

food

payout
field

the

merger

yet to show the full bene-

International Coal Trade—Bureau

man

2
'

that

^ar5ings'

between

Hunt

for steadily

Parle
L $

Street,
•

day, Sept. 28, at the Barclay Hotel.
Nominees for

Boston,

Mass.

President:

Foods

National

Central

Credit

Society

increasing Association,

Inc.,

1617

Sherman

position immediately.

its yield of around 1.6% is not
more

liberal

ones

one

around.

201 California Hall, Berkeley 4,
Calif,

(paper)—single copies on
additional
copies,
20c

request;

each.

•

•>

•

office for

Willard

1960-61

Rice,

are:

Eastman

■

Dillon,

Union

Securi¬

ties & Co.

•

The merger imProved Avenue, Madison 1, Wis. (paper),

jts financial

the

The Annual Meeting and Election of the Officers of the In¬
vestment Traders Association of Philadelphia will be held Wednes¬

Houghton Mifflin Company,

Hunt had been expanding through
retained earnings and funded debt

INVESTMENT TRADERS ASSOCIATION OF PHILADELPHIA

Copper shares, after an initial It has, however, larded the cash
reaction to the Congo unrest, have payment regularly with stock pay-

lsi

South Coast, passing Cosgrove has become affiliated
with Eastman Dillon, Union Securities & Co., 3115 Wilshire

Social
Stratification and " Right
year and one which will probably
Wing Extremism — Seymour M.
~
—
.
make an even better profit-show- which, among other
things, kept Lipset—Institute of Industrial Reing this year.
its cash dividend nominal, hence lations, University of California,
t_

vviin j^aaiixiau

LOS ANGELES, Calif.-Robert T

the nation's most efficient rail- tions, Retail Index Division, A. C.
roart' and its abilitv to sho« Nielsen Company, 2101 Howard
proflts is demonstrated histon- street, Chicago 45, 111. (on re-

reputation

dividend rate

twice

earned

With Eastman Dillon

a^am thls year to boost the return Originators' Brands — Profitable
a bit more' Norfolk is biUed as But Precarious-'Industry Rela-

and Wesson 0il which was ef" and the Liquidity Problem of the
^ fected in midyear- Even before the Credit Union Movement—John T.
wif? merger, Hunt was building up a Croteau — Credit Union National
with

the rest of Ireland has about 3'"

national

hbnXfUII

Building

ch^^
Practice—James F. Munce—F. W.
t vTr" Dod§e Corporation, 119 West 40th
yielldal^ay^ Street, New York 18, N. Y., $14.75.

^able 4%.

New

pTnprS Industrial Architecture: An Anal-

m,^rtIrW

United

Shannon

O-XldnilUll,

fearinJ™?" 00°.000 People. Ireland has excelDle
cL^inefv erL^flfl fn
lent banks, department stores, and
trlVels o^er lbe wmlH
hotels'
;rayej£aye

" 161,116

^^"l/LToUTn ^"ef

ood

and along the

One-

lanQ

the

near the famous Blarney CasThe oor,uiation 0f Northern
Ireland is almost 1.500,000. while

handsome

worthl

family

iand

cfatpq

siaieS

from

ta their' ldsliLT thf Rtar' H".
due to thenr kissmg of the Blar-

mnLn

Housing Codes, New York State— Star inhabitants
P"
1- Background of Code Fn- sPier habitants.
1: Background of Code En- P'er inhabitants.
forcement Voj 2 Mode[ Housing
we started at Cobh and went

Code

Planes

f CU"°US suPersVllons- mey are dred sixty miles southwest of Dub-

Virginian
merger
are
effected, of Mines, Department of t h e InThen there are quality issues earnings -could
run
double the terior, Washington D. C. (paper),
that
have
been
a
bit
roughly dividend commitment. And that
.
u
«
•
handled recently, such as Inter- makes it, in time, a candidate for Its Yaar
Harri"

rrti

paratory to a strike.

that

Vol.
Vo1-

Housing

loadea up heavily pre-

customers

new

Railway. Whatever the

portion of the year. The road is
just
entering
the
high-profit

were

earnings.

Wpctr.rn°

„

«&

UKTd wt^heart^ TtS? ZtlT
They where.

—

agreemenMhat
its $3 dividend by earnings running half again as much despite
a
decline in profit in the early

tast

ffel

reaf elte ls *P°rts-

dwellings, Multiple wonderful old castles such as the
the Nicke1 Dwellings,
Mobile Homes, and Pr?n9.land Castle, built in the
J^h^'v^tn^hnw tht Pcn^n' Mobile Home Courts; Vol. 3: Ad-"11th Century, the Ashford Castle,
the 6V2% yield from Great ™te
™as yeit to snow tiicec o- ministrative Guide
Division of and
the
Ballynahince
Castle,

Northern

cnn«

their

Norfpi»

Then, too, individual situations
of
merit abound, not the least
being

makes

Till'

ill., 51.50.

economic

Thfs

weR-located

have laughter and humor

fmerchandising
0f
its Kent pa g'n Iu
50
'
settle for a trading
brand! has calmed down t0 where paign
reasonably stable, until its price-earnings ratio is below Disposal of Industrial Radioactive
tte fate of the general economy
10_times and its yieid a definitely Waste — Machinery
and
Allied
through the fall and winter was ab0ve-average 5'/•>%. On either Products Institute, 1200 18th
more
clear. They took comfort basj
jt is not overvalued, nor is Street, N. W., Washington 6, D. C.
from the fact that, while there
ife p/E ratio high since others in (
;;) 25c'
were
trouble spots, the general the
group command prices of 12
of

es-

sec-

tion in Southwest Ireland is beautiful>' and many other lakes
abound throughout Ireland providing fishing, hunting, and other

„

market,

level

took

and

yet the title of the real

owners

j£t

lege of Commerce and Business

willmg

cattle

tate finally returned to the oriffi-

Reserve Regulations, etc. - Col-

Some attention was being de-

the"

and

•

over

looked

s tional Income; Financing State
lm" Buildings: The 1960 Bond Issues;
Monetary Policies and Investment

one of the safest investments in
Transportation
Administration, U n 1 v e r s 11 y of this troubled world.
Illinois, Champaign, 111. (paper)
,
Dublin has an excellent airport
been so of the skyrockets of recent months on request.
i '
of Ireland
; with planes going to all the lead--"J-have reached 50 or more time^ Capacity Utilization and Business VJ The people of Ireland are most
^n
1 Hd
ft f

rail

lows

new

year which leaves ro.om for
provement in the dlv
n

taclud-

the steel and auto shares as

ing

—

nrti *»«<»«•

nnor,

First Vice-President:
Second

John

Vice-President:

Knob, Drexel & Co.

Jack

Christian,

Janney,

Dulles

Battles Inc.
Treasurer:

Secretary:

Herbert E. Beattie, H. A. Riecke & Co., Inc.
William R. Radetzky, New York Hanseatic Corp.

SEATTLE SECURITY TRADERS
The Seattle

ASSOCIATION

Security Traders Association

will

National Security Traders Association

entertain

members

who will be visiting

Seattle after the Sun Valley Convention, at a dinner to be held
Sept. 17 at the Olympic Bowl. John I. Rohde, John R. Lewis, Inc.,
is president of the Seattle Association. Other officers are Paul
Johnson, Blyth & Co., Inc., vice-president- Larry Sisson, Pacific
Northwest Company, secretary; and Robert Wight Bank of California, N. A., treasurer.
,
(
V.
.

Volume

192

Number 5986

The Commercial and Financial Chronicle

(1061)

get through with it as soon as
possible.
■■■;
7
In Oregon the Democrats have a

FROM WASHINGTON

ernment executive posts with the

Departments
tt1

t7i

CARLISLE

Senator

Kennedy
his

over

may

Western

well

trip

the reports in the newspapers say,
but the fact is that the crowds

managers

confines

his

There

Southern

California

there

confessed

about

the

Burns

knew

Creek

But

him

the

from

local

regarded

his

as an

services

Administration for 11
states

midwestern

He later founded the Offiee

Partner

Now With F. L. Putnam

and

training
program
throughout its 38 offices.

-'' (Special to The Financial Chronicle)

Closely

Albert M. Lord

ATHENS, Ga.

Managing

Claggett will assist Hutton
Raymond Stuart in an
expansion of the firm's commodity

„

mocjities

Co., .298 for

...

associated
and

many

with

Mr.

^ FrNANCIAL Chhonicls)
ww

HnwkSfi'c

T nZ™

Claggett

®os^on Stock Exchange. He
formerly

for

many

years

r y

nothing

-w

h||B

^^
that

reached

politicians

column.

llllllBMlil—lllill» jMBKmmmmL,. ^

were

-s

^BBBl

side.
cam¬

now

Idaho

uphill s'truggle, but
stumped—Michi¬
and California—he

in other states he
gan,
Oregon
thinks he is

possible

likely winner.
It is

and

even

important to note, however,

that this optimism does not indicate a conviction that he will win

all of those states. The cur¬
polls show him running be¬

any or
rent

hind Nixon in California and Ore¬
gon. Rather, it reflects belief that
the Senator and his backers may
have the capacity to do what must

done—to

turn

with
of

present

out the

this

vote

year's

the

issues—

and

cope

special problem

religion.
So far Senator

Kennedy has de¬
people

fined the choice before the

the

broadest

possible terms.
with the Demo¬

Dynamic

action

crats,

stand-pat stagnation
Republicans and V

versus

with

the

President Nixon.

He is trying to make

battle instead of

one

between Ken¬

nedy and Nixon. It is not that
and Nixon are alone running, he
contends, but a battle between
the
Democratic
and
Republican
parties.
T
'
This is good strategy.
In 1952
and 1956 the Republicans did not
win. Eisenhower personally won.
The party lost in
Senate.

;

both House and

The Command

Kennedy has dropped his chant
that this is a second rate nation,
having found that was not going
over

well.

His contention

Guidance

System for the Air Force Titan, shown here

Telephone Laboratories and is manufactured by Western Electric.

his

uplifted,

right

fist

How the Air Force
Bell

Suppose

clenched,

area

voice doctor accompa¬

diaphragm;

the

intensity with which he
appealing to his audi-

screeches is
ence,

particularly

teenagers

and

women.

the

art

presenting

aid of notes.

he has not mas¬
organizing and

speech without

the

accuracy

asked to guide a 110-ton
a controlled velocity

with

nose cone

could then sail free of

tiny preselected target

6000 miles away.

Command Guidance System which
guides Titan with "pinpoint" accuracy.
new

For the first few hundred miles of
v

a
Nose cone of an Air Force Thor-

Able

Unlike Nixon,
tered

puts Titan

This was the objective for Titan which was
given by the Air Force to Bell Telephone
engineers and scientists. The result was a

This gives

constant trouble with his throat.

But

that its

all control and hit

nying him, but the doctor says
Kennedy will pay no attention to
him. He speaks almost altogether
with his throat instead of using
his whole

you were

missile into space

tumbling out, he is a compelling
figure in the spotlight.
a

test

"brains"

missile,

guided

developed

for

ground control

and sends instructions to

the

Titan, being recovered from the

on course.

Commands

are

keep it precisely
also

engine off at the moment of

sent to cut

proper

the

velocity.

new

it.

outset.

however, he makes up in intensity.
But

some

of the streak of inner

Target I

accurate this
guidance must
of cut-off, when Titan may be
traveling some 24,000 feet per second; a
difference of one foot per second in the speed
could cause a miss of one mile.
at

the time

The system has already

guided missile
accurately that they could be
recovered thousands of miles away by wait¬
ing ships. And it will play a key role in
forthcoming satellite and space probes.
:

nose cones so

This
of

our

new

guidance system is the product

many years

search and

bring

you

world.

South Atlantic.

BELL

TELEPHONE

of communications

re-

experience—which also help
the finest telephone service in the

throws

ICBM

But he doesn't read

make any pretense
it away at the
What he lacks in clarity,

speech

Bell

To show how

be:

flight,

center tracks the missile

his

Remington Rand-Univac computer.

Telephone Laboratories Command Guidance System
gives deadly

his voice straining, and the words

He has

the first and second stages separate, was developed

now

don't take advantage
of his dynamic leadership into the
world of new frontiers, we will be
surpassed. He wants to deal with
the problems of the unemployed,
the aged, the poor and the Negroes.
The dynamism he preaches is
what
Senator
Kennedy himself
projects most easily to his audi¬
ence.
With his jaw set and face
that, if

Flight information is analyzed by

SYSTEM

TWlth £

served for 23 years in U. S. Gov- Matthew Lahti & Co., Inc.

-ti,

Franklin Street, members of the

commodity markets

years,

(flpeclal

ronton

•

reclama-

generally on the optimistic
Alaska, where he began his
paign two weeks ago,
is
counted

Mr.

Courts Adds to Staff

so.

reports

com-

During World War II he was
Agent in Charge and Chief Compliance Officer of the War Food

voted for it twice and would

continue to do

the

Partner J.

statc except utatl-

tion project—a major local issue—
and then added blithely that he
had

„

Pocatello, Idaho, when the candidate

Presi-

Hutton

Theodore Weicker, Jr.

are
..

OT,„

also the inevitable
goofs, like the ehfibatrassment at
were

and

Stock; Exchange, it^ hasi beeni an- Board.

£,°un<;ed

Benson is a Mormon apostle and

ator, eloquent and forceful at one young undergraduate making his is now with Courts &
whistle stop on the West Coast,
valedictory address, and wanting East Washington Street.

sounded flat and bored at the next.

;

former

,0rJ-t0-l in some localities, yet dent of the New York Mercantile

retary of Agriculture Benson. Mr

re-

tentative half-wave,
followed by a gesture with both
were
generally relatively small, hands in front of
him, in which
The crowds were big and enthuhe seems to push the audience
siastic in Idaho and Oregon, but
awav
'
were inexplicably small and silent
in more wavs than one
Kenin Washington. And in Detroit, it
In more ways than one' Ken
was far below estimates. The Senn^dy gives the impression of a
sp0nses

Agriculture

Investigations and
of the
? Nixon
had, however, better Company, 61 Broadway, New York Chicago Board of Trade and was
V watch out in his treatment of Sec- City, members of the New-York assistant
to the President of the

maddening to some of

reserve

his

Claggett,

polls show Nixon Exchange, has joined
running ahead in the votes.
modity staff of E. F.

pleased

JtlUi lOIl HO,

in both states the

BARGERON

Interior.

registrations of 60,000 this Hi. 1?
year and in California the Democratic registration is as much as John W.
lead in

...Ahead of the News

was
with

The Commercial and

Plains.

The

subject

NEWS ABOUT

New Branches

•

New OHices, etc.

•

Revised Capitalizations

•

the

well

involves

the

exchange

share of Mount Kisco Na-

one

National

for
of

Bank

Westchester stock.

The combined bank would have
in

resources

Sept.

Chairm

Oct.

became

Assistant Sec¬

retary in 1943

•

Assistant

G' L' Fa""worth

Vice-President in

1947.

Chase Manhattan Bank, New

The

Assistant

Gowan

de¬

George
Champion,
announced.

partment,

who joined the
Chase National Bank in 1921, is
Hummers,

Lane

Maiden

charge of the
branch where he

formerly

was

Assistant Treasurer and Manager.
He

appointed to the official
as an Assistant Man¬

was

staff in 1946

ager, a title which was changed
to Assistant Treasurer at the time
of the Chase National Bank, New

New

Manhattan,

Bank

and

York

York,merger.

which merged with Chase
National ilk 1929. He has been a
member of the official staff since

when he was appointed

Manager
vania branch.

Ac-

Pennsyl¬

at the

sistant

stock dividend prior

But,

stock.

quest this dividend, an adjustment
would be made in the share ex¬

change ratio.
*

application has been made by
the
Toronto-Dominion
Bank to

incorporate

also

Treasurers

They

nounced.

an¬

was

William

are

the

Kinkead died Sept. 6

Eugene

title

Trust Co.

company

the

with

York

New

trust

Toronto-Dominion

of 84. He was Chairman
Executive Committee of

at the age

the

York,
title
Hibernia Trust Co. He also
as Chairman of the South

the Colonial Trust Co., New

he founded under the

which

of the

...

■

.•

Manhattan Bank, New

Chase

announced Sept. 8 that it
permission
from
banking authori¬
to conduct full-scale bank¬

York,

received

has
West

German

business,
effective
im¬
mediately,' at its
branch in
Frankfurt/Main, Germany.
Pre¬

ing

brokers loan division; viously the branch has served
Coronella,
United West German banks and United
States department; James J. PheStates military personnel.
lan, credit department; William T.
The
branch,
located
at
11
Phillips, petroleum department;
Taunus-Anlage since its opening
and Theodore A. Platz, Jr., avia¬
in 1947, through its close relation¬
tion department.
ship with West German banks,
#
*
*
Bur goon,

Charles

will

elected

been

has

Rodd

Thomas

Senior Vice-President

and Carter

Director of the Mor¬
Guaranty Trust Company of

L. Burgess a
gan

York,

New

Henry

York,

New

Chairman,

Alexander,

made the announcement.

Director of J.

Mr. Burgess, was a

Morgan

Co., Inc., before its

with the Guaranty Trust
Company of New York in 1959.
Subsequent to the merger, he be¬
member of the bank's Di¬

rectors' Advisory
Rodd

Mr.

advanced

Assistant

Vice-

President in 1947 and Vice-Presi¬
dent

1951.

Treasurer

was

business

subsidiaries

German

individuals

fully

and their
as
well as
of

businesses

and

Pa., and The
of Tamaqua,

President

received the

*the

from

First
He

1917

1951, when he was elected Chair¬
man

of the Board. Mr. Arnold

active

mained

Sept. 30.

the

until

time

this
his

re¬

position

death.

New York State

shareholders

The

subscribed

Bank

of The

Vice-President

combination

underwriters

stock

three

groups

headed

The

National
York

and

awarded

City

Bank

John

was

the $50,000,000 New York State Thruway Au¬
on

Sept. 8

thority

bonds

1985

July 1,

bid

100%

maturing Jan. 1,
1995. The group

for

combination

and 3.45s, a net in¬
terest cost of 3.4612411%. On re-

3V2S,

3.40s

DcLay

The

Walter

Curran,

New

Brothers

Lehman

Chase Manhattan Bank, The First

*
*
National Bank
of offering the bonds are scaled from
N o r f o 1 k,
Norfolk,
Neb., has a yield of 3.20% to a dollar price
*
*
*
changed its title to The BeLay of 100, according to maturity.
Included in
the
underwriting
Official charter establishing the First National Bank of Norfolk,
first
new
bVnk in Watercown, Norfolk, Neb. It was effective as group are:
Bankers Trust Company; Mor-.
Mass.
in nearly
100 years was of Sept. 1. gan Guaranty Trust Company of;
presented to officers of Coolidge
■.
*
*
*
Bank
&
Trust
Co., Watertown, The application of the Newport New York; Chemical Bank New'
Mass., at the State House in National Bank, Newport, Ky., to York Trust Company; Kuhn, Loeb
Boston.
purchase the assets and assume & Co.; Harriman Ripley & Co.
The
bank will
be located
on
the liabilities of the Highland Incorporated; Smith, Barney &
Mt. Auburn St. in Coolidge Square Bank, Fort Thomas, Ky., has been Co.;
Halsey, Stuart & Co. Inc.;
in a new building so that the bank approved by the Comptroller of Blyth & Co., Inc.; Lazard Freres
is scheduled to open in October.*- the Currency. No date of effect & Co.; C. J. Devine & Co.
Officers
Phelps, Fenn & Co.; Manufac¬
tfethe bank *. at» the ..has,been determined for the taketurers Trust Company; The Ma¬
presentation of the charter in the over.
•
rine Trust Company of Western
State House included F. Marshall
'
*.
*
*

stock dividend, The First

Everett,
Roy
Papalia,
Vernoh,. National Bank of Perryton, PerryStoneham, Secretary, and Peter jton, Texas, has increased its comToomasian, Treasurer.
•
mon capital stock from $200,000
',■■■■■//
*
*
*
to r $400,000,
effective Sept.
1.

New

York; First National Bank of

The \ Northern
Trust
Company; Goldman, Sachs & Co.;
Continental Illinois National Bank

Chicagd;-

Bank of America
Hallgarten & Co.;
Kidder, Peabody & Co.
Trust Company of Morris
Ladenburg, Thalmann &
Co.;
Morristown, N. J., announced the
/-:/*
*
*
& Co.; Eastman
election
of
Donald
E.
Kyle as The First Security Bank, Glasgow,' Glore, Forgan
Vice-President and Trust Officer Montana,; has
converted into a Dillon,. Union Securities & Co.;
R. W. Pressprich & Co.; Salomon
by the Board of Directors. He national bank with the title of
will assume charge of the Trust the First Security Bank of Glas- Bros. & Hutzler; Barr Brothers &
Department
Nov.
1,
succeeding gow, National Association, Glas- Co.; Blair & Co. Incorporated; The
William E.
Abel who has sub- gow, Valley County, Montana. It First National Bank of Oregon,
Munsiek,

George

mitted

his

'of/Number of shares outstandingCounty, 4*000. shares, par value .$100.)

President

resignation

Arizona.

son,

The

also

Board

Assistant

and

Co.;

S.A.;

Loeb, Rhoades & Co.; Bear,
Stearns
&
Co.; Drexel & Co.;
*
*
Equitable Securities Corporation;
Secretary.-Bank of America, San Francisco,

tive date was AuS- 31.

appointed

Robert H. Barnum Assistant Trust

Officer

Trust

N.T.

has a total of $572,094.90 in sur- Portland; White, Weld & Co.; The
plus and capital, and T. H. Markle Philadelphia National Bank.
Merrill Lynch, Pierce, Fenner
is
President,
and
Leroy
J.
Whittleas the Cashier. The effec- & Smith Incorporated; Carl M.

position with the Southern Arizona and Trust Company in Tuca

Mr.

Volz, who has been
the bank since 1928, is the

Herman P.

since it

established.

was

facilities

banking

the

1927.

military

offers

also

bank

The

Kyle

Dec.

was

elected

was.

1959

10,

Vice-President.

Army Shopping Center at Czerny

Ring, Heidelberg.
*,* ' '
/'
*
*

consolidation

Theodore

•"'u-V'"'-

-v-

•

Malmberg has been
of The
Dime

elected

President

Savings

Bank,

Y.,

of Williamsburgh,

announced Sept. 12

was

by the Board of Trustees of that

its

bank.

Comptroller of the Currency
has approved the application for
the

S. Clark Beise announced Sept. 13.
At the same time, Mr. Beise announced

The

of Morgan

and Co. from 1949 until
merger with Guaranty Trust

dend, effective as of Aug. 29.
(Number of shares outstanding6,000 shares, par value $100.)

from $3,250,000 to
$3,575,000. The surplus has increased
from
$6,750,000 to $7,562,500. The combined total of
capital,
surplus
and
undivided
profits is $12,337,500.
capital

Thruway Bonds 1
Being Marketed

Hornblower & Weeks; Mercantile
joined the bank 'in.';Calif., has named its New York
Trust Company; Paine, Webber,
appointed Assistant Representative, Vice- President
Jackson & Curtis; W. H. Morton
with
Trust Officer in
1935, Assistant .Vernon C. Richards, to head the
& Co. Incorporated; F. S. Moseley
Vice-President who has been in Secretary in
1942, and was elected National Division at its head of- &
Co.; Shields &' Co.; Stone &
charge of the Frankfurt branch Assistant Vice-President in 1954. fice in San Francisco, President

/,/;/■,

nations.

other

•'

associated

P. Morgan & Co. in 1935.

with J.
He

Council.

became

able

also

now

serve

merger

came

Ontario.

Bank

Bean,

The

South Orange,

Trust Co.,

Orange

ties

appointment of five Assist¬

The

ant

an¬

terms of tne

the

York,

1946

Bank

where

National
served

the shareholders. The,
:
*
*
»
rights to subscribe to these ad- Heyward T. Denyes, of Norfolk,
ditional shares expired Aug. 31. / has been advanced from regional

County Trust does not re¬

the

served

joined
Bank,
New

Park

National

the

;
1922

McGowan

Mr.

share for

new

held

has

President,
Mr.

'-*/ t

exchange

the

metropolitan

the

dents

Thomas

and

Hummers

its usual 5%

McVice-Presi¬

Edward

promoted

has

York,

Richmond, Va., to
proposed institution, stockholders 32,389 shares, or 99%. Sealed bids Virginia,
of Bankers Trust would receive were
requested from the local Senior Vice-President, Herbert C.
stock of the holding company on brokers for the purchase of the Moseley, bank President has an'
a share-for-share basis.
However, unsubscribed shares in accordance nounced.
each share of County Trust Stock with the previous action of the
:
* ' *
*
would receive 0.85 of a share of shareholders, and 111 shares were The First National Bank of Austin,
the holding company's stock. Also, purchased by
Hanrahan & Co., Austin, Minn., has increased its
under
the terms of the agree¬ the highest bidder.
common capital stock from $400,j
This action has increased the 000 to $600,000, by a stock diviment, County Trust may declare

29, 1S34 where

and

been

company

According

joined

Chemical New

holding

nounced.

Farns¬

one

of. Pottsville. The
each ten shares expected to be

share in the ratio

per

Vice-President

the

Bank

consolidation, under the title or
the
Miners National Bank of
effective date is

$35

Merchants

South Dakota,

Bryant,

approval of their application for

and

Farmers

Helm.

York

Thursday, September 15, 1960

32,500 shares ($10 par value

the

meetings, nor has a name for
new

worth

for

set

have' been

Harold

Mr.

stock) by the issuance of rights
to subscribe to additional 1 shares

issue

yet,

banks/ As

both

*
*
National

*
Miners

The

the shareholders^ Pottsville, Pottsville,
of the Worcester County National First National Bank

stockholders
no dates
stockholders'

Board and the

serve

$225,000,000.

* v«.

On July 12, 1960

proval of the New York State
Banking Board, the Federal Re¬

announced

excess

The plan,
to the ap¬ Bank,* Worcester, Mass., voted to Tamaqua, Pa., have

subject

however,

Company,
was

bank holding company.

Trust

York

to form

intention

their

vealed

New

Bank

have re¬

Co., White Plains, N. Y.,

L. Farnsworth has been
Executive Vice-President

Chemical'

Capital Stockholders, Warrants for
the right to subscribe to 7,360 progressed from his starting posi¬
tion of bookkeeper and janitor to
shares, at $36.00 per share, in the
Cashier of that bank. A few years
ratio of one new share for each
fifteen shares held of record on later, he accepted the position of
Vice-President for the First Na¬
Aug. 30, at which time there were
outstanding
110,400
shares. On tional Bank of Salem, South Da¬
Sept. 27 the Warrants will expire kota.
In 1917, Mr. Arnold was named
and thereafter will have no value,

of the

Comptroller

tional Bank & Trust Co. stock

75
Consolidations

Currency,

BANKS AND BANKERS

elected

offering to its

Bryn Mawr, Pa. is

which ' is
approval of the

proposal

the

banks' shareholders
Office

George

Financial Chronicle

(1062)

Citizens Na-

that

Mr.

Richards'

suc-

in New York is Ralph W.
Fellman, Vice-President at the
cessor

office

head

who

has

worked

closely with clients in the New
York area the past five years. National
Bank
and
Trust
Co.,/
Mr. Richards, assigned to San
Bergenfield, N. J., under the title Francisco offices most of his 37of the Citizens National Bank of year career with the bank, has

Webster

Securities

Corporation;

B. J. Van

Ingen & Co, Inc.; Wert-

heim &

Co.; John Nuveen & Co.

9
I

Distributors Group

Names

DALLAS, Texas—Robert M. Gib¬

tional Bank of Englewood, Engle-

son

wood, N. J., and The Bergenfield

Southwestern

has been named
Regional Manager
Inc., spon¬
investment
advisor of

Dallas,

for Distributors Group,
sor

and

His terri¬
date has held the New York position since
tory will include Kansas, New
been determined.
•/'//.,
1955.
in 1959.
■
'
Vice-President, has
Mexico,
Oklahoma,
Texas
and
*
*
*
Mr. Richards served in various
*
*
*
ated with the bank for 39 years
Western
Missouri.
He
recently
James M. Large, Chairman of the offices
there until moving east was Southwest Sales Representa¬
Mr.
George M. Bargalini, Vice- and succeeds Henry W. Weber,
Board, William R. K. Mitchell, in
1955. He was . promoted to tive for Fitch Investors Co. :;s
President of Manufacturers Trust now retired.
Company,

New York,

succeed

will

Lewis

New York,

formerly
been associ¬

Mr.

Malmberg,

Earl

Mark

Treasurer, was elected Vice-Presi¬

dent.

late

Supervising Officer of the Bank's
*

staff for 35

bank's

The

Irving Trust Company, New York,
the promotion of Har¬

Boards

Kisco National Bank

dent to Senior Vice-President.

Mount

Mr.

Brownson,

associated with

Office

approved
If

Trust

bank

Co., New York, and County Trust

Bank

The

Directors

Bankers

Na¬

their

& Trust Co..

Y.,

announced

agreement
two

completed,

con¬

institutions.

the

combined

called

Branch Manager in 1933 and As-

sistant Vice-President in 1937, and

the

Provident
Trust

the Board

White

of the

Board

Tradesmens

Bank

ditional
to

in 1946

was

elected

ad-

sistant Vice-President in 1950 and
Vice-President in 1955.
*

Vice-President, assumes
former responsibiliVice-President in charge

Foulke's

Bryn

Mawr

ond

branch

office

National Building

management

immediately, Frank T. Board of the First National Bank
of Ontario, Ontario, Calif., died
Sept. 1, 1960. Mr. Arnold had the
ties as
distinction of being the oldest
of the Trust Division.
*
active banker in Southern Cali-

The

new

the

Sec¬

under the

Harvey

Leff.

Oscar Arnold, 85, Chairman of the

immediately.

Effective

Mr.

Siegler Branch

Philadelphia, Pa.,

Executive Vice-President

effective

Howard,

E. N.

appointed Director of

staff training at the head office, AKRON, Ohio—Edward N. Sieg¬
that at the meeting of
Mr. Fellman joined Bank of ler & Co., members of the Mid¬
of Directors held Sept. America in 1946, advancing to As- west Stock Exchange, have opened
Co.,

8, William G. Foulke, Senior Vice-

National

Westchester,

would
of

and

Benjamin F. Sawin, President of

Vice-Chairman

Mount President,

Sept. 9 in letters to their share¬
holders that they have tentatively
solidate

Division.
*

Kisco,

the

and

Y.,

announced

Directors

old G. Brownson from Vice-Presi¬

Irving Trust Company since 1935,
is in charge of the bank's Branch

the

tional Bank of Westchester, White

Plains,

Englewood. No effective

and

been

years.

has

Jolls

Mr.

Branches in Queens.

announces

formerly

appointment

his

Jolls,

John

the

Group Securities, Inc.

■

fornia.

Trust Company, his

Sixty years

banking,

ago

career

he began

with

the

Blunt, Ellis Branch

S K O.K

IE, 111..

—

;

Blunt, Ellis &
branch of¬

i i

Simmons has opened a

fice at 57 Old

Orchard, under the

management

Robert/L/ Du

Gene, partner in the firm// -/,

i I

J!
w i
1

•'"

Volume* 192

Number 5986

The Commercial and Financial Chronicle

Fuels Policy Proposal
Analyzed
Rumblings of action

to start

mand

the

"America

guard against
the public interest for the sake of creating mo-

markets,"

This

belief

obstacles to the hunt for oil, petro-

is through the traditional
policy of creative competition upon
which this nation has thrived."

which discusses

Trust Letter quotes the Ford

in detail the situation created for the
energy

«.

■

and

for

the

National

new

originally asked for

eration
the

"optimal

various
to

sources

economic

fuel

their

uses"—in

end-use controls

Building.

•

East Colorado Blvd

sold at the

and

jje wag formerly
the First
California Company and Harbison
& Henderson.

Proceeds will be used to re$95,500,000

fund

••

■■

•

■■■

debentures

members of

the Pacific Coast Stock Exchange,

market for delivery Oct. 3.

parks, Jr. has joined the staff of
McDonnell &
Co., Incorporated,
Tower

reopened

were

Howard E.

—

P-

ma-

■

■■

•

consid¬
of

re-

productive

other

Colo.

With Pasadena Corn

Policy

energy

most

allocation

and

M^nAnn^ll

DENVER,

formulation
Fuels

words,

consumers.

Henry C. Brunie, President of
Empire Trust, in an introductory
paragraph to the Letter, says that
,

"behind these attempts are serious
implications to interfuel competi¬

tion and to freedom of
choice.

consumer

informed

public

will support

straint,

competition, not re¬
the key to this nation's

continued

prosperity."
points out that "to¬
day low-cost energy largely means
petroleum. Petroleum means oil
The

and

Letter

natural

gas.

almost

get

three-quarters of our energy from
petroleum, most of the rest from.
1

<coal."

«"

-•>

•

1** '•!£.'

Says Controls Would Mean

Monopoly
A

policy of end-use controls on
energy fuels "could deny all con¬
sumers—
industrial, utility and
residential—their right to burn oil
or

for

gas

coal

any

could

purpose

for which

substituted,"

the

newsletter declares. "End-use

con¬

trols thus establish monopoly mar-

kets, restrain competition and tend
to

eliminate

when

competitive

pricing

they eliminate the freedom

to sell and the freedom to

out that the "nub of the

buy."
points
agitation

for

Policy is

Continuing,
a

the

Letter

National Fuels

new

the old prediction that our petro-;

leum
our

running out faster than
It was said that we'd run

coal.

out of

oil and

first in 1925,
recently by
1960.
Fortunately, no genuine
oil
scarcity
ever
has occurred.'
Right now our proved oil and gas
then

gas,

1941,

reserves

are

all-time

high:"

The Leiiev calls attention to the

fact that just recently the ultimate
oil resources in continental United
States

recoverable

methods

Steel for automobiles: another

current

estimated

the
U. 'S:
Geological Survey at5 235
billion barrels.
"This-represents
nearly four times the total oil
production since the start of: the
American petroleum industry". 100
years, ago, the newsletter adds.
were

Coal" resources,

•

other

the

The automotive

one

"When weighed in terms of

;

•*

•

"There

they
'

years

time

same

ended

car

households all point toward

cars

sheets

of these

steel
our

fertile field for

products. Great Lakes Steel and

Weirton Steel division of Weirton,

Weirton, for example, recently developed

most

first to have

powerful strip mill and the
electronic computer

incor¬

porated in its original design. Its assignment
is

meet

dustry

peak demands of the auto in¬

with

the

finest

quality

steel

and

special automotive problem, and much

So, automotive steel is another important
of growth

in which

National

for hot ard cold

auto

Detroit

This

our

major proportion

requirements.

the years,

Corporation, in cooperation with its

In such ways, we

industry is

Lakes Steel Corporation,

supplied

area

forms, is plainly indicated for the future.

long been identified with

strip and

growth

as a

steel

the auto industry

yet

produced.

greater use of galvanized, in this and other

Great

consumer over

Virginia, have worked closely with

fastest and

differential-coated galvanized steel to solve

and the steels of which

In addition to its dramatic

with still greater reserves,"

made.

has consistently

the

also

suburbs, the growth of

National Steel has

division,
;

ginning of that 10-year period and
the

are

rolled

10-year

period in which we have not pro¬
duced petroleum approaching all
of the proved reserves at the be¬
at

the

America's biggest customer

been

1959. And the

the automobile. The automotive

•

hasn't

new

auto makers to meet this need for the new.

mand for

the

•

run

steady and substantial increase in, the de¬
-

rate of about 425 million tons per

;

than in

has constantly provided a

completing

West

move

multiple

Letter says.
"Present coal production is at the

year.

11%

now

Production will

years.

persistent increase in number of families,

competition from competing fuels,
this figure to as little as

about

industry is

biggest

the

price

other estimates have scaled down

of its

;

50% to 906 billion tons, according
to the Empire Trust Letter.

tons,"

growth at

1918; by 1958 economically re- ; :;
coverable coal had shrunk nearly

billion

even

area

hand; amounted to 3.5 trillion tons

industry and
is

current
-*

have

one

of the

grown

along with the

will continue to do

principal aims of

$300,000,CCO expansion

Steel
cus¬

tomers, concentrates its long experience in

steelmaking and its research facilities

so.

exploration of

new ways to

our

future

progress.

program.

For Great Lakes Steel, it includes a sub-

This STEELMARK of the American

stantial

steel industry tells you a

and

begin

the

increase

steelmaking capacity

"mill of the future"—which

operation

1961

the

will

world's

product is

steel-made, steel-modern and steelstrong.

Look for it when

you

/
f ^e8'j

buy.

the newsletter adds.

difficult to

"Thus it is

see

how

gas," the newsletter
continues.-^The problem is to locate what
"So

tax

long
policies

know is there.

:/ -■» v.
*

NATIONAL
STEEL

the nation avoids
and restrictive con-

NATIONAL STEEL CORPORATION,-GRANT BUILDING, PITTSBURGH, TA. Major divisions: Great Lakes Steel Corporation

this nation is in danger of running
out of oil and

made

(special to the financial chronicle)
It
was
also
announced
that PASADENA, Calif. — Robert L.
$5 million of the Dec. 1, 1960 Henderson has become associated
debentures
already
outstanding with Pasadena Corporation, 618

„

industries by efforts to inaugurate the Future, Inc. which predicts
another congressional
investigation that in the next 20 years the deof national fuels resources.
:;
:;
■■

investigation

positive

J°ins ivici^onneii oiair

fuelsvFphndation-financed Resources for

Proponents have urged such

bentures are priced at par.

truly

and low in

securities.

be^tures, dated Oct._ 1, I960, and
maturing April 3, 1961. The de-

"The

*rols that could create artificial proacli
cost," the Letter adds.
In stressing that the coal industry itself is still strong, the Empire

published

will
T.

°?}Ja.new lsf^e^

$134 mllhon 334% six-month de-

expressed

John

—

j-ne tsanKs tor cooperatives or-

newsletter

the

offering

Knox, Fiscal
Agent, and a nationwide selling
gr0Up
of recognized dealers in

ap-

Y?'k

recently

The

through

to sacrifice

nopoly

turing Oct. 3, 1960, and for lend¬
ing operations.

Banks for Coops,
Offer Debens.

leum will continue to be abundant

v,°Jt £ontrol> is

by which U. S. energy needs
be met best at lowest cost and
with abundance for the future.
can

newsletter

75%,
petroleum

for

must

efforts

warns

means

increase

demand

will double.

;

new National Fuels
Policy with endEmpire Trust Co. of N. Y., in its recent "Letter,"
to plead for
competition and not for controls. The way to obtain
plentiful oil and gas, it warns, is not
by creating monopoly markets.

for coal will

while

controls prompts

use

(1063)

Midwest

Steel

Corporation:

•.

Straa^-Steel-Corporation.'*' Enamelstrip Corporation.

•

The Hanna Furnace Corporation

•

Weirton Steel Company

National Steel Products Company

■■

(1064)

The Commercial and Financial Chronicle

Thursday, September 15, 1960

recession in the shortthe outlook for the

moderate

Funds Report

ROBERT E. RICH

Peoples

underwriter

become1

a stockhold¬
Karasick & Co., Inc.,,

^/Securities Corp., and
in

The
It

Favorites
a

the last four years despite
scattered recommendations by fi¬

investing in "growth"
stocks. Send for free booklet-pros¬
pectus by mailing this ad to

seasoned

Ford

nancial district counselors to "Gas

vestment

status.

up!" Joining this fraternity of the

years ago,

CALVIN

LTD.

two

Established 1894
STREET,

YORK

NEW

the steels.

were

left

the

six

other

shares
live.

and

135 S. La Salle St.. Chicago 3, IU

15th

the

total

The

seven.

Standard

are

spot

of Jersey,

the No.

away

which is sixth in the over-all

com¬

pilation, and Socony Mobil, Phil¬
lips Petroleum, Standard of Cali¬

acquiring

investment status
and Beth¬
lehem. Big Steel moved from No.
16 in 1958 to the 10th spot last
past

for

few

years,

and now is tied with Socony

year

the

eighth. Bessie has gone over
span from No. 37 to No.

same

34 and

now

to 28th.

Indeed,
lock

strong

that

appear

urgency

these

boxes

un¬

past

couple of years as the first five
among institutional favorites show
no
change in
ranking.
Behind
Standard
of Jersey are General
General Electric,

Motors,
can

FUNDAMENTAL

Investing in

I selected fdr

common

stocks

possibilities of growth

in income and capital

K.%,
"•v.

two

.V'"

over the years;

Ameri¬

Telephone & Telegraph, with
duPont

Nemours

Co.

favored

most

which
and

No.

was

No.

this

two

group,

ago

years

1959, now is 20th.
the ..other
hand,
Common¬

Edison

wealth

has

1958

the

over

28th

No.

has

from

span

same

Com¬

Southern

33.

pany

makes the best showing in

this

division.

It:

wasn't

/.even

the top 50 until this sum¬

among

At latest report it .was

mer.

Gas

United

Corp.,

49th;',

the

con¬

/ *

Fund,

;

declared

Inc.

com¬

proportion

sizable

of the assets
small business
company
that "went

investment

public" recently, according to Dr..

Interestingly,
America's
pre¬
growth stock, International
Machines, continues to
move up in this select group. Car¬
rying, by far, the highest price tag

Business

the

favorite

from

come

No.

50,
17

1958

has

DIVERSIFIED

A balanced investment

stocks.

the

ago

years

and now 37th.

ture

50.

favored

the

Last

year,,

is
not
booming and standard economic
indicators
are / conflicting,
the

George
Putnam Fund and Putnam Growth

respectively,
Sept.. 15.

It's

grade by coming in 50th.
again, ranking 53rd.
/

out

Swiftly

working

its

way

into

Motor

for

brought
took

Co.

vies

out

severe

with

excellence

When
a

the

few

West¬

per¬
was

years

ago

shellacking and left

internal

own

$4,013,000,

strong indica¬

developing

nificant''advance
of

Harold

/X/' Schreder,
Securities,

meeting of investment represen¬
tatives at'the 12th annual Mutual

I960 record high plateau-

"The

overall

market

business

has

from

96%

Combined

net

reached

assets of
all-time

high of $260,785,000 on Aug. 31.

the

and

masked

total

funds

the

for

\'///./i///Y. ,<///■//

period.

same

12%

than

less

creased

both

Fund Dealer's Conference.

level

$33,526,000, an increase of
1959. Redemptions in¬

totaled

economist of
Inc., said at a

89%

a year ago/For the
months of 1960 com¬
'sales / of
the two funds

eight

bined

executive

.•

■

August

first

improving business conditions,"

/increase

from

for a sig¬
anticipation

.tY.,

..:" s|s

August, amounted to

Fund during

ac¬

tions that it is preparing

tre¬

Phila. Inv. Women
Announce Officers

fact," he added,^fihi^pfdlOnged PHILADELPHIA, Pa.—The
Investment
Women's
Club
of
divergence/ in
business activity
and the stock market has been Philadelphia which played an im¬
going

since 1955. For example,
major 'soft' industries

1960's

top 50.

Incidentally, if
vorites

rank the fa¬

the basis of investment-

holdings
alone,
some
differences do emerge.
Thus, while Standard of Jersey
and G. M. cling to the first and
second spots even on that .basis,
the

two

I. B.

M. Texaco

rounds out

/////i

"Desire for income is the most

portant

the

Week"::

pro¬

America

announced its

has

gram,

establishing

role

"Invest

for the 1960-61 season.

officers

/ Miss Dolores Dougherty (Bishop
has "been

Inc.)

and /Hedberg,/

Street

delphia

Batchker

'Group

scene,"

Sept.

investor

interest

come,
on

date he will

steady

- •

the

Booth

the'

Bank).

National
Miss

season

Serving

/the

coming

for

Treasurer

Joan

Brown

fads-

such

and / undiminished.

Characteristically,

:/:"•///;

THE

;•//.

Lazard Fund, Inc.

income

44 Wall St.,

New York 5, N. Y.

motive is the most constant under
all

kinds

of conditions;/it is the
appealing to the ladies, who
increasingly control our nation's

Dividend Notice

most

wealth;

the

greatest

need

The Board of Directors today

;// declared

younger people, the prime objec¬
tive of future planners. Moreover,

per

dend is

15
in

Brown

talk

cease

Problems

gathering

their

and

mutual

1960. The divi¬

payable from net invest-

ment income.

/'7,/

Pitfalls

R. S. TROUBII

'■-./;

arranged by
the
Sales
Corporation

Street

dealers

his comments

Investing for Income

seminar

Broad

limited partner.

made

payable October 15,

September 19,

tor."
Mr.

1960, to stockholders of record

to the present inves¬

dividend of 8 cents
the Capital Stock

of the Fund

income is equally important to the

for

same

Funds.

the other hand, carries

As of the
a

Mutual

fads 'sweep

eventually /is carried
to excess
only to ebb away. Interest in in¬

Batchker, Eaton & Co., 120 Broad¬
way, New York City, members of
the New
York Stock Exchange.
be

investment

said, "but, if experi¬
any guide, we know that

—Policies,

all

ence

general partner in

"Investment

To Be General Partner
A.

Vice-President

motives,"' according to Fred E.
Brown, President of the Broad

potential

become

of the group.
Miss Elizabeth

President

elected

(A. Webster Dougherty
& Co.). Named Secretary is Miss
Katherine Merscher (The Phila¬

fundamental

is next and G. E.

the Big Five>

third-ranking issue is mighty

oc¬

stock

,,/ *

sales of shares of

Total

'''

will

For

economy

market's

stock
tion

the

the charmed circle is Merck & Co. —steel and automobile—have not
been able since
1955
to exceed
That top-flight drug was 85th two
their record production levels of
years ago. Last year it was No.;
that year.".//.
66. Now it has only two rungs to
///'
'
.* /'/# sjc
' #
climb to become one of the

Philip

formance.

payable

both

"While

stock

however,

is being managed

'.Techno Fund

cents,

round,

Pacific just did manage to

Union

completely recovered these days.
From No. 27 in 1958, Westinghouse
rose
to 19th last year.
At latest

inghouse

not

As for U. S. Steel, which finishes
12th-position. It could
eighth on an over-all basis, it
work its way into the top 10 in
comes
in seventh on the basis of
no great time.
:
:
reporting
investment
companies
Probably the most impressive exclusively.
;
" /■"'/:/.
performance of all, however,; ;has
All in all, it would appear that,
been turned in by 'Westinghouse
even though many
of the "breadElectric. After all, I. B. M. never
and-butter equities have been sold
did lose its halo. But a few years
on
balance, there has been little
ago Westinghouse was dubbed the
tendency to engage in wholsale
"Ailing Giant." But plainly Wall
liquidation.
/
:
Streeters regard the company as

16th.

and

the pic-/ mendous amount of divergent and
greatly altered. Two corrective activity in the nation's
years ago—as now—there wasn't various industries and individual
a
single
railroad
among
the.; stocks," said Mr. Schreder.' "In
Viewed

the

was

cents

by the Clyde Williams Investment
Management Co., of which Dr.
Williams is President.

Group

Outside

report it

in bonds, preferred stocks and

in¬

investment

net

come

INVESTMENT FUND,«

from

slipped from 35th two
vice-president ."and
ago to 47th. ?<■-;■/■;: /"/,> /':'

years

the near future.

S-l, declared regular distri¬

butions

trary, has

striking

mier

ries

and

24th.; Texas

gone

1959

Utilities

20th

15th
now

from

fallen

company

still in the fifth slot.

cupy

common

/•"'

Fidelity

electronics

expected to absorb a/

are

of Techno Fund,

Inc.

it fell to 47th last year/

make the

would

there has been

INVESTORS,

44th

From

in¬

utility
division,
fornia and Gulf Oil.
v
■//•■ ?/•/ other disappointments have been
Aluminum Co. of America, which
Returning to lybtf, we find that
there were only two steels among has been falling steadily and now
the top 50, U. S. Steel, which has is 44th, and Monsanto, 30th' two
the

Selected Investments Co.

respectable
six
15. Now Stano-

1 favorite
stocks of all kinds; Texaco,

among

been

rorpectus from your dealer or

(Standard
out, which

back

restore

seven

ago

year

highly
the first

among
lind is

far

less 'than

had fallen

of Indiana)

american

the

trust funds and insurance

oils.

were

Selected

"// '•

ago.

years

companies,
ADDRESS-

panies

Thus, going back to 1958, it will
be found that of the 15 top fa¬
vorites of investment companies,
common

NAME-

attained

has

ap¬

—

BULLOCK,

WALL

been

Clyde Williams, Chairman of the
During the last year, however, it quarterly dividend of 11 cents,
Techno Fund board.
/// '/.'.;/;/■.'/
Yet a spot check of the 50 most has begun a steep climb, reaching payable Sept. 24 to stockholders
favored stocks of financial insti¬ the 27th slot. *
of record Sept. 7.
'
/://v. / ;//■■■ / .The fund already has invest¬
;/'., i;/;/'/./:
Y';YY\'
■
*
' *
'
' ' V'■' ment
interest
in
the
National/
tutions discloses that companies in
Utilities
have,.woven a crazy
these bread-and-butter industries
Keystone-Discount Bond Fund, Resistance Corp., and is expected
quilt, with hard-headed investors
remain high on the roster by com¬
Series B-4, and Keystone High- to make equity loans to several:
showing considerable selectivity.
electronics-firms in/
Grade Common Stock Fund, Se¬ other small
parison with a year ago or even
Thus, American Electric Power,
friendless in 1960

ONE

has

Co.

Trust

Irving

Investments in

Indeed,

ing
A mutual fund

train

•

poration.

unhappy stockholders.
the
number
of
share-1 pointed registrar of the common
holders shrank steadily. But now stock of Guardian Mutual Fund,

a
secret that oil
have had few friends dur¬

scarcely

stocks

//>.'/

economist made his com¬
ments to a gathering of mutual
fund dealers and representatives
at a seminar in Washington, ar¬
/The

ranged by Broad Street Sales Cor-

-.investment manager of the growth
/ stock mutual fund.

is favorable."

longer term
•

Organization has

C. Morton

future,

term

Treasurer

September 12,1960.

;

/ .••/'■ //

fund

representatives.

Broad Street Sales is general dis¬

tributor of the Broad Street

DIVERSIFIED GROWTH
STOCK FUND,

Investing for long term growth

[possibilities in securities of companies!
economic

■'

"All

in many fields of scientific and

WELLINGTON

development.

FUND

Balanced Fund seeking

Massachusetts

Group
Investing Corpo¬
ration, National Investors Corpo¬
ration and Whitehall Fund, Inc.
Street

—Broad

TWO

WELLINGTON

EQUITY

FUND

/.'■ *

for

the economy in
that

there

capital,
reasonable current income,

Equity Fund seeking
possible long-term growth
of capital and future

the

and

income.

economist

will

about

sure

Massachusetts'

mid-September is
be a long period

growth

DIVIDEND

know

Life Fund

—a

conservation

profit possibilities.

—an

for the United States
years that lie ahead," ac¬

the

Broad

"We

will

know

Wellington Company, Inc.
Ask your investment

Hugh W. Long and Company
Incorporated

dealer for prospectuses
or

Westminster at Parker

•

Elizabeth, New Jersey

write

tion is over.

♦

Philadelphia 3, Pa.

the

elec¬

year

timing of

upturn

the

1961 unfolds. But regardless
a

continuation

of the uneasy and uneven

have

per

Life

the

Fund

dividend

share from net

payable

income,
to

holders

certificates of record
close

business

cyclical

of whether there is

trust

about

when

about the character and
the

We will know

September 19, I960

Street

Group of Mutual Funds.
monetary aspects

cents

investment

cording to Dr. John W. Harriman,
for

paying

been

plateau

experiencing

September 16, 1960.
otlateac/ubeth

tfn&ttiatice
SO State

C/Co&JtUa/Qtife

^cm/tany, Trustee

Street, Boston 9,

Yt/

Incorporated 1818

Mass.

Volume 192

Number 5986

...

The Commercial and Financial Chronicle

(1065)

5 L/l

Pierce, Fenner & Coy. TTVfl T1 PI CtPfY
m*'
V
IdJlClbLU
i! T,g members have r>
J
Af-PavnU
^
viiciuut
6 ele„Cild tw wc jiAauwyc -DOndS Ulterea,.
Exe™.tlve
spedfi'c phase oTthHlSys activi- To TuVP^tOr^
tiesMrs
Margaret
LLvrence
inVCSCOrS •

■

(Yarnall

Biddle

'inc

Co.

Anna

Lee

(Stroud fc

—EnterteinmenP

Mutual

Co 1—Fdura

Virginia

)

Cotellesse

Mi«

Mss

Isabel

(Pennsylvania

Funds

Publicity

BI a e«

Corn)—

Corp.)

It has also been announced that
the organization will hold its first
dinner meeting of the new season
at

the

Barclay Hotel
SeP4- 19'
TT

Monday.

Fuller &

offered
of

Brand,

Inc.

share.

offered,

•

j
purchased

„

i3
k

?„g

I"St

,Sdi

000

"^syndicate" bought

Hetch

paying
a

Hetchy

$15 000

Power

The

dollar

bond's

price

Wiiliim

at
the

tan

Bank;

Bankers

Trust

Com-

pany; The First Boston Corpora-

total

was

White' Weld & Co.; Weeden & Hemphill,

syAdicateTaM a
$229. Bid
100.049

gations, the

public

Tne

sale

offering

mium of

was

and

Noyes

tional Bank of Oregon; Seattle-

pany's stock.

' First National Bank; Lazard & Co.

the

;• v-

com¬

Proceeds from the issue will be
i used

by-the

to retire
other indebted¬

company

notes payable and

to establish a new automated
plant and geographically diversi¬

ness;

fied

branch

plants

tion

Harvest

the

distribu¬

and

for: additional

centers; arid
working capital.

Brand, Inc. is engaged
of
formulating,

business

manufacturing,
distributing
and
selling feed supplements, minerals
and

pre-mixes

industry.

for

The

livestock

the

Pittsburg, Kansas-

based

company
operates - prin¬
cipally
in \ the
Midwest.
The
company's products are marketed

under

the trace

ade,"

which
is
livestock

among

name

"Stock¬

widely

known
the

feeders

Midwest.

Used in simple or com¬
plex type mixes to supply min¬
erals, proteins, vitamins and drugs,
Harvest Brand products are man¬
ufactured in loose

block forms.

;Upon completion of the financ¬

ing, outstanding capitalization will
consist

solely of 375,000 shares of
stock.

common
;

For the five months ended May

31,

the company had net
$793,302 and net earnings
of $47,683, equal to 21 cents per
1960,

sales of

common

the

225,000

then outstanding.

John Kemper Branch

MUNCIE, Ind.—John A. Kemper
& Company has opened a branch
office at 120 East Washington St.,
under the management of William
K.

Hughes.

there's

With Wm. R. Stoats
(Special to The Financial Chronicle)

BEVERLY
liam

HILLS, Calif.

Luyties, Jr. is

William

Wilshire

Blvd.

with

Stone

Staats

—

Co,

was

9742
formerly

Jit's easy-to make
'take

Youngberg.

Joins Bache Staff
(Special to The Financial Chronicle)

Privman
Bache

a telephone call /
or so it seems. But
look at alRhat's behind this modern convenience.

-New York

HILLS, Calif.—Irving
joined the staff of

are

—

Maurice

Harris, Upham & Co., 1400 Frank¬

Joins Walsfron Cn.

Stretching from cduntry to coun¬

Eilers

has

work

become

Co.,

—
Marcus B.
affiliated with

Colorado Street.

Inc.,

64d East
He was formerly

with First California Company.

same

necessary

area

say

ment

five

tankful of

'
.
^
possible, thousands of people
.

are

continents; utilizing the most modern facili¬

exploration, production, transportation, refining,
marketing.

required has exceeded

The
a

invest-,

Only in this

more are

way can

being spent,

America be given

what it needs for progress-more
and better

billion dol-'

lars. And to improve and expand these

facilities, millions

ways

friendly Cities Service

"Fill 'er up" and drive off with

research" and

seeking

holds true for the petroleum industry, too;

simple thing to drive in to

ties of

■

Walston

this one'metropolitan

But to make that

with activity.
Today there are over 70 million
phones in the United States serv¬
ing homes and industry. They are
a vital part of our everyday life.

try, these wires hum

(Special to The Financial Chronicle)

PASADENA, Calif.

than 4,000,000

.high-quality gasolene, f

lin Street. He was previously with
Henry F. Swift & Co.

station,

(Special to The Financial Chronicle)

Calif.

at wprk in

The

Now With Harris, Uoham:
OAKLAND,

17,000,000

improve the phone system.

It's

Wong has become connected with

over

Meanwhile,. 7,000 scientists,, engineers, and technicians

has

Co., 445 North Roxbury
He
was
formerly with
B. Hogan, Inc.

Arthur

care;of the

City phones' and

of. wires and cable requires over 60,000 people.

miles

Drive.

to Cities Service

with

For instance, to take

BEVERLY

than meets the eye!

Wil¬

now

Co.,

9478

formerly with Shearson, Hammill

are

ma^ks

of the

& -Co.;

<*■ Incorporated; The First Na- Santa Monica Boulevard. He was

by the company and
shares by certain selling

stockholders.

l-resspi.cn

„

per

150,000 shares

Pressprich

-'The group also paid a premium Security First National Bank;
, Joins Hemphill, Noyes
$569 for an issue of $1,000,000
Crocker-Anglo National Bank;
(special to the financial chronicle)
Playgrounds and Recreation Cen- c. J. Devine & Co.; Phelps, Fenn BEVERLY HILLS, Calif.—Harry
ters Bonds. Bid was 100.057 and & Co . R H Moulton & Company; E. Lewis has joined the staff of

bonds mature from Oct. l, 1961 net interest cost was 2.87%.

number

corporated; F. S. Moseley & Co.;
New York Hanseatic Corporation;
Paine, Webber,arid 3%. & Curtis;
2V2%i 23A%, Jackson
Reynolds & Co.; Schwabacher &

Harvest

Thalmann
&
Coci+nofo
*r
Pn-WnV
R*™'

associates

price

•

Whipple & Co.; J. Barth & Co.;'

combination of 6s, 2%s, 3s, 3y4s
Is.

tion; Lehman Brothers; HarriFor $5,000,000 School Bonds, the man Ripley & Co. Incorporated;
?°' g™up paid a premium-of $279. Smith, Barney & Co; The North- Co.; Shearson/Hammill
*
Bid was 100-016 and net interest ern Trust Company; Wells Fargo Shields & Company.
of ^ was 2.86%.
'
Bank American Trust Company;

premium of $10,099 for

Ladenbure

8 WfcKffSL

USj

$21,455,000 City and County
The

1 r?

?ly.tlV%
?

wui°nnn r!

•
-

Associates include:

•

The syndicate also
"The First National City Bank The Boatmen's National Bank of
$6,455,000 Various Purpose Bonds, of New York; The Chase Manhat- St. Louis; Clark, Dodge & Co. In-

Ame"c.a N.T. & S.A. due Oct. 1, 1961 to 1975, inclusive,
""derw"ting syndicate on Sept They carry coupons of 6%, 2y4%,

in »
ine 1980 matu ri- to maturity.'
in iy'y- The iy»u maturi- to maturity.

n0' be'"g reoffered-

„

„...

Par
par

sold

41,667
first

and

stock

common

being

°I
of

Freres

Sept. 14, 191,667 shares

the

Co.

100.067 and net inte,reftsVcostJ°
the borrower
3.05%.
The

Common 0ff6r6d
D.

and

Qf
XIdl Vt/Sl £>1 d/llQ

(Beneficial

Savings Bankl—Member-

and

Subject to award, the various
award are priced to yield from purpose bonds are priced to yield
1.60% in 1961 out to a dollar price from 1.60% to 3.10%, according

■

tion- Miss

to 195°. inclusive, and subject to

petroleum products.

jobs

j 1

The Commercial and Financial Chronicle

(1066)

personal

property
are
not
re¬
having these character¬
istics.
Moreover,
even
if
the
Puerto Rican corporation is con¬
sidered to be engaged in trade or
garded

Program and U. S. Investor
Continued

from

page

tory requirements.
The section
provides that a domestic corpora¬
tion shall be subject to United
States tax only on that, part of
its income which is derived from
within

sources

United

the

States

of at least 80% of its gross income

is from
the

the

its

active

business.

possession

States and 50%

United
of

within

sources

income is from

gross

conduct

Rico

Puerto

trade

treated

The

from Puerto Rico creates two dif¬

ficulties: In the first place, section
931

provides that payments ac¬
tually
received
in
the United

Thursday, September 15, 1960

if assess the reality of this risk with¬
Service sees out reference to the particular
that "the lion's, not to say the state of facts.: However, the In¬
ternal Revenue Service does have
hog's" share of the overall profit
is attributed to the exempt sub¬ this additional weapon to support
To

use

Harry Rudick's words,

the Internal Revenue

business and thus resident within

sidiary and only a small share to
States, the tax applies the taxable parent, it may con¬
apply only if at least 80% of the only to that portion of the gross clude
that
the
subsidiary
has
gross income of a corporation is income of the corporation having charged the parent more than a
derived from Puerto Rico.
a source within this country. Thus
fair price. In that case the Service
In the case of a Puerto Rican a domestic
corporation, although may, under section 482 of the
corporation, the question of where offering the ultimate advantage of Code, apportion part of the sub¬
title passes and the status of the a tax-free
liquidation, and thus sidiary's income to the parent.
title passage rule for determining freedom from United States
At first blush, it would appear
capi¬
the source
of
income are very tal
the
gains tax as well as Puerto that
consequences
of this
much less important. If the cor¬ Rican tax
during the exemption treatment would not be affected
poration is not engaged in trade period, does not have the operat¬ by
whether
the manufacturing
or
business in the United States,
ing safety and certainty which can subsidiary is a Puerto Rican cor¬
then, as in the case of other for¬ be obtained by incorporating the poration or a domestic corporation
eign corporations, no part of its business in Puerto Rico.
qualifying under section 931. In
gross
income from manufacture
the latter case, however, where
Problem of Pricing
and sale will be subject to United
the manufacturer carries on some
the United

;

"possession" for this purpose.
statutory requirement that
States tax, even though part of
80% of the gross income of the
that income may have a United
corporation be derived in effect

States

source.

The

reason

With

choice

final

reference

between

Puerto

for this

the

Rican

corporation an d a
corporation
result is that non-resident foreign which
qualifies under section 931,
corporations are taxed only on I should refer to the problem of
what the statute refers to as fixed
pricing, which is raised where the
or determinable annual or period¬
subsidiary in Puerto Rico sells its

Service
might take the position that the
excessive price
charged to the
United States parent represented
in part the price paid for goods
and
in
part the manufacturing
company's share of the profits
mainland

the

activity,

assertion that

the

corporation

has derived more than 20%

of its

income from United States
sources, so that it no longer quali¬
gross

fies for the benefits of section 931
on

any

income.

its

This risk

does not extend to a Puerto Rican

corporation.

Continuing After the

;

Exemption

Period

discussing the benefits of the

Puerto

Rican:tax exemption pro¬

gram^ it may be that we Over¬
emphasize the attraction of a taxfree liquidation before the end of
the exemption period. The success
of the business

enterprises already
Puerto
Rico
by
mainland, investors suggests that
established
in

most

the

cases

investor

will

prefer to continue the business
beyond the exemption period. In
States are to be included in the
these cases the great advantage of
taxable
gross income
regardless ical income from United States product to its parent or an affili¬ from distribution of the goods in the program is that it provides
of the source from which derived.
sources, and gains on the sale of ated corporation on the mainland. the United States. It is hard to capital for the development and
Thus
arrangements have to be
made for the actual receipt of in¬
come
in
Puerto
Rico, although
received

once

monies

these

immediately
depositary.;.

<L)

Formula

Apportioning

The real difficulty arises under
section 931 in the case of a cor¬

ture in Puerto Rico but sell

part of its output on the
mainland.
For
purposes
of de¬
termining its geographical source,
the
resulting income * is appor¬

The

the

United

the contract of sale.
o.

the

from

income

United

; The

fied

sale.

the

States

New

the

O
O

the

sales

o
o

transac¬

of tax avoidance. This
long standing qualification really
expresses the dissatisfaction of the
Treasury with the rule. This dis¬
satisfaction is due in part to the
purpose

that

Jthe

broad

sales

transaction

necessarily
where

turn

should

the

not

the

transaction

hence the
;

source

took

place

place,

attributable

amount sufficient to

disqualify all of the income of the
corporation from the benefits of
section 931.

■

recalled^

In this

regard, it will

that, these

benefits

4-H

OS
H

•—

"44

4-H

Pp a

•©

^
^

•

§
©

Q
a

ft)

•J

& ©
©

03 cq

.S ^

O
v

•

a
PJ

a
03

>-5 >3

»-8

CCJ ;

ftS'I.sj

Tfl

r}C

•

tf)

Tt<

TfC

&■'

•••••

fC
-

«SS 0

«,

OOOOOO
•«.

'C-H

#«.

«s

"«■»

i-C.
4J

<©

•n

Tf
^

Ttf

'K-£

sa 2«
M £ a

D. ®
0.44

.3
.

4-1

•

Eceg

O ^

ft)

^ |«
.Sun.3

OOOOOO
OOOOOO

OOOOOO
*44

■:

D< Si

©-a

Q\ o </>

m
ft

•"9

•

s'a 4)
a
®.B

3
cci

§,

"©

*44

«C

*©
©

•s§25
«.2

.SP?

<a>

•w

r©

S
O

o
°

n
>3

•

o
en

cn.cn

vfi

•2

■sS

44-

♦4

"42

Cl,

§■

■8

£
V»

*3'

^
'

■

P
4-»

■5 4

°
-r

-ft

oT
©
CD

•8
^
0)

1
g

-ft

S--7
.

H-5

i-j

nfl

d
Hj 1-5

Z S
-»■58

d*:o

<fl

•O

at:
3 P

ftv

ft
>

HN H'
cn m

I—'

OOOOOO
OOOOOO
0s

13
CD

#»

OOOOOO
m

.8
©

f
p*

Ho*©

o
(S

m
w

#4 f

r»

Tjt

^
•

«5«

® s fl

©.la 5
pa
^

-B

*••!
ft
^

!fc.

-2
®

££££££
1-5

ce
m

•-4

OO
©

■gcv.SrP
OiH 4

»
00
©

OOOOOO

*44

M«ss
v'

■**

4->

m
cn

4-»

g
-ft

•©

in
m

.2sc^

o
m

«••••

m
00

V-'/.

^ 5 ^
cci

•

•©

to the

selling side of the business may
be
assigned
to
United
States
sources

7 1

4—)

The risk of this uncertain state

and

18
5 s

of the income.

a domestic corpora¬
tion under section 931 is that part

income

03
v.

of the law to
of the

title

passed. Instead, the
Treasury is urging that the place
where the sale was negotiated is
the place where the substance of

s
c

■*

*
<ar

spite its lack of success in the
past, that the source of income on

•

■

the Treasury is again urging, de¬

(§(§)'(§)(§)(§(§

which

.Vrf.'L i.

d w

•&V
®

Jf
Ml

Lj
r*

coverage

pending

CO '1'

by insurance companies
today has greatly minimized the
business importance of the point
at which title passes. There are
cases

offered

several

000000

IT)

o
4-4

*44

tions has been arranged in a par¬
ticular manner for
the primary

fact

*©
©

***

rule is quali¬
Regulations by the

where

fc
ft

statement that it will not be fol-:

lowed

the

000000

York.

the

■

•©

m: I

title passage

2 •£

-o

contract

Con¬

delivery is made

versely,

.SI

con¬

source

c
©

livery to the buyer at that point;
to the goods passes at that
point; and under the title passage
the

2 ^ :
o-nll

£
^

•ft.

title

Rico is

States.

Thus

.©•

J©-

b. San Juan calls for de¬

rule Puerto

selling element
is the country in which the goods
are sold. As stated in the Regula¬
tions, the sale takes place at the
time when and the place where
the rights, title and interest of the
seller in the goods are transferred
to the buyer. This is the so-called
title passage rule, under which
point of passage, where the risk of
loss of the goods shifts from the
seller to the buyer, is a matter of
the intention of the parties. This
intention is normally expressed in
tract f.

o
o

of1 the

source

C/3

3
«0

within

complex formula
partly to the manufacturing,
which clearly has a Puerto Rican
source, and partly to the sales ac¬
tivity, which may well have a
source

stantial

under

•

Is ^
g

Q>
-w

sub¬

poration which plans to manufac¬

tioned

may

transferred

mainland

oH
W

H «T3H

Volume -192

Number 5986

expansion of the business out of
the

.•

The Commercial and Financial Chronicle

the

United

States

tax

which

credit

take

(1067)

the

for

Rican

Puerto

cidentally,

tax-free

earnings during the imposed on dividend distribution. tax withheld (and as to which the
exemption period. Thereafter the However, the parent corporation Puerto Rican withholding tax rate
business may be continued under receives a
foreign tax credit for is reduced to 20% if he is also a
the
usual
rules
of -the' Puerto the allocable
portion of the Puerto citizen of the United States).
Rican tax system. As I have
said, Rican corporate tax as well as the
these generally follow the rules
Bona Fide Residence
withholding tax, so that the net

features

the

1939

Internal

Revenue

result is not unfavorable.

Code, with the important prin¬
cipal difference that Puerto Rico

has

invest in

flexible

depreciation policy

individual

•

the

citizen

mainland

who

wishes

continue

part
of its investment in any real or
personal property in Puerto Rico
acquired after Dec. 31, 1954, for
or

any

agriculture, construction or
manufacturing. This can be a real
use

inducement

expansion

the

business at the end of the exemp¬
tion period..
/,•
.

The

corporate

tax

Tates

Puerto

Rico, range from 21% on
the first $25,000 of taxable income

his

mainland,

residence

will

the

Puerto

for

the

States
he

cor¬

porate investor will choose. Al¬
though the Puerto Rican tax ex¬
emption is available to sole pro¬

excess

which

other

Code, he thereupon
exempt from United

this

take

withholding

individual

income

which

dividual

Puerto

Rican

*An

although he continues to
from

for¬

other

mitted.

the

The

middle

rate

York,

Europe Termed
High-Cost

Food Producer

income

Chase Manhattan

liability

in either

income

for

tax /

tax

exemption

substantial

jurisdiction. This will be

true whether the investment is in

ment

sole: properietorship

attractions

from

offers

program

attractions
the

slightly in

excess

distributions,

form

to which he may

tion,

form,

the

Puerto Rican corpora¬

the

in partnership form. (In¬

Europe

policy that in¬
importing more food and '
releasing labor inefficiently used

farms

mainland.

The

These

six

nations

Common

economic

monwealth,

needs

hence

and

industry.

invest¬

designed to further

are

Bank recommends

farm

cludes

den which is

without

Beverly

Hills, Calif.

prietorships and partnerships, as eign sources or from the United brackets the tax burden on mar¬
well as corporations, operation of States itself. Thus if Puerto Rican ried couples is comparable to that
the business in noncorporate form residence is established by the in¬ imposed on the mainland.
;
As to individual and corporate
does not exempt the United States dividual, he may draw down the
investor from the ordinary rates earnings of an exempt business investors alike, the Puerto Rican

by Mr. Baker before the
Investing and Operating

Puerto Rico sponsored
by the Bank of
America N. T. & S. A. and First
Na¬
tional City Bank of New

corresponding United States rate,
but income-splitting is not per¬

received

tax.

address

Conference
in

this tax is materially less than the

income

the program
which is not

ments.

income

assurance

always provided by tax arrange¬

ap¬

all

be taxable in the United States on
income

in¬

tax
tax

advantage

with

instance

from

tax

receives

sources,

maximum of 36.75%

its

tax

stance, and this is also

1954

becomes

of United States tax. This insula¬
on prof¬
$130,000. On dis¬ tion can be obtained through use
tributed earnings, this tax "com¬
of the corporate
entity but, of
bines With the withholding tax of
course, the United States resident
approximately 30%i; to. produce' a
maximum Puerto Rican tax bur¬ is fully taxable on the dividend
to

the

normally choose
corporate form
that

government

plies. However, a salary as dis¬
tinguished from a dividend would
be
subject to Puerto Rican in¬

Rican

investment

States

United

sub¬

can

the policies of the mainland
as well. Investors can

vance

that

the

Rican residence. Under section 933

exempt Puerto Rican
business, and who also wishes to

option to write off all

investor

citizen

of the few unusual
Puerto Ricah in¬

stantially change his tax position
by establishing a bona fide Puerto

which permits the taxpayer at its

individual

the

United States

residing

the

structure

part¬
nerships are taxed as corpora¬
tions.) The dividends paid by the
corporation have a Puerto Rican
source, and hence are not subject

one

tax

come

the

solved

Com¬

they

problem.

ad-

there

the

European

have

Market

their

not
yet
agricultural

basic

Economically speaking,
too many
farmers, too

are

farms,

too
much
ineffi¬
ciency, too many controls, and too
much protectionism in agriculture

many

the Continent.; This opinion is

on
(A

•

;

■

■'••©

S-J

v©

s
©

•v.

tJo^

-M

-H V. t r ©

>"V

;

S —T:

to -

^
*

;• v

c.,.<
as

1§

-a

•

C/3
•

•

■

53:'-

CO
CO
4m

S :

"cO

•

hex

r® >•
&V

Sm4

v.-

•

B ^

<ZJ>

*>»

-^
.2

af3
E

4M
*^4

-S5

>»

_f=

•

pJaC

PQ
V)

I**

B
as

<3
•

>-»
©

; ;

©*■«
-

_B
"©

pp s

a>
:

^
©

B
B
©

CO
©

•c

B
©
cau

8
C

^
4m

JZ
MM

*2
<70

JB.

-B

"©

pfl

52P

'M
•c
ex

"©'

DO
<2
S

S;
«

•

CJ>

oa
©

E
s

53
4m

E—i.

-£

S2 UJ
o

•a

Zf
o

M.T

Qm
.K

c/T
Um

fir

E—'

•c

S
GJ>

CJ5
,

i
PC

•

G-J

r/3
CO

1:3
©

JS
CO

•e

•

-a
©

CD
B

CO
o

G-J

'©

-3.

CCS

B
©

•E
E—»•"'

o
-

American

Secu-

ELK1NS,
W.
Va. —William
O.
Wingfield is engaging in a securi¬
business from
offices here.

u
c
V

"©

cx
cx

North

| W. O. Wingfield Opens
m

ties

Mail

associated

B
©

'rities Co.

.5 ^

with

was

©S
CO

<*1

B ^
MM

BaJ
'

E—«

pes

~C3

Exchanges. Mr. Williams, who has

GJ>

become

Alan

^recently been with Murch & Co.,
Jlnc., was formerly Cleveland
^manager for Central States In¬
vestment Co. and prior thereto

•

...-g

E—

has

—

/the New York and Midwest Stock
CO

Ohio

with Ball, Burge & Kraus, Union
^Commerce Building, members'of

b::.

Williams

;

(Special to The Financial Chronicle)

.CLEVELAND,

jtS

CO
t

B
°

-B

B ■;

I
B

©a

Ball, Burge & Kraus

;

\ A. S. Williams With ^

G-2

oa
CO

■

•s

,the Common Market."

S
©

s
o

short

CO
4m

°a

re-

agri-

will favor the over-all interests of

k—j

•SM

•

litical problems in putting through
such a program. But, to the degree
that the Commission's agricultural
policy leans in this direction, it

•

•;b:

B
©

B
•

E—'

"©

8
c

*■=

lines

some

industry where labor
supply. In short, the
real
problem is
not only to
strengthen but to shrink the base
of agriculture in the Six over the
long term. There are great po¬

eco¬
more

gradually shift

"©

eSj®

cau

-©

-E

£ , oa

U-

_©

im,

vculture

C_2

®!

•n

to '

u>
s

•

oai

•»©

and

from

G-J

•

4m'
©

cau

©a

S=J.

•

C-2

-=C

could, with great
dividends, import

»sources

•

■

'5J>
©

*8
B

.•MM

■§

i
•

(4—i

Six

foodstuffs

g-o

■giS:
5
to

B
1

£■

•

•B

-fi

-o

•a

PQ 8

-Q

"S-2
CO
CO

G-J

CO
•

S-

•

CSU

'•■CO

-g

•

CO
.

4®

C_J

high-cost producer of food,
Report on Western Europe,

nomic

uOa

«l

4M4

"Bj

"the

DO'S

f ^

mm
7C

13%

countries, the Six
^represent* the ; world's
market
for
agricultural

largest

flU>

E "

E—'

73
4m

•

/—»

£
SK

Market,

employs
quarter of the labor

goods."

g
J-

for

and

To other

together

E—i
C-)

13
"e3

<■■■.■

|-B

■■

'l .-'v■,

S
©

C/3

£
b
©

U)
©

X
©

-B

B«

Gm>

^
cd

—

r ■:

pJB

-a

5
®
-

•JJ!3

DO
•

E—'
©
©

>"•

mm
CO

Common

says

the

force.

E-M

one

m±C

rest

accounts

production

>B
'

the

roughly

total

,©

policy

Common

the Chase Manhattan

the

agriculture

"Within

,uj

the

E—'

£
B

B™"3

ca,

5=3

E—*

oaf PQ

°»s a

.Report...

"I &

and
says

<3J
-

vsi

3^-

<70

*©3

.© 'C
S
i.

■:©

■K.

«s

E—'

s
e-

■

Um,

•

C/J

r®

•s

•I

-2

fcT

agricultural

great^ economic sig-

both

world,"

have

.Market

E-°

0-2

*X3

B
©

-BO

European scale, the

common

nificance,

——

iB-3

E
1
to

S5 I

c^-

B
B

•s

E—«

CO
4m

o^
-

QmP

<>a

-B

B."

B;
>E-m

*8
S

™

*"'>*
o
aj

»a
O

would
■

-*o

on a

These

bank publication points out.

B
©

"E S

6-^ £
© S

.§i

Commission.

are

countries

•

-a*

ui"

now

attempt to grap*
pie with farm problems of the six

& PQ

^ E-<

c/5
73

fc-

pq" 7§

•

£»

K
IV.

»k

(CO

°a

ex
©

8
©

'•;.S
2

XJP

mmM

B
©

^
KM

<5:1

:©

<L>

B
©

,4m

.53:
.

'©

"©

•v.

•

5*.

•c

fi—i

g
^

g.-«

'©

*©

•s

(A
4M
•

B'©

•k

<3j

^©

'SJ'd

"© 1
-B
^ 2 ©
• mm
o

g.
g.":

M©

-*M

■sV

are

"©

governments

proposals

8
©

six

Market

mon

®a

®
^

©a

B 14

■

C/D

The

considering proposals for a com¬
mon agricultural
policy presented
during the summer by the Com*

;

•k

•

CJS

■

o
©

B
©

Manhattan

bimonthly survey, in the
issue, published. Tuesday,
Sept., 13.
.V >
r'-.w

•c

C-2

crx
©

JsC

-£

o
•

Lj J
©

h
8
©

Western

Chase

Bank's

B
©

*"S
CO

V.:- C/3

<->

13
"Q

-I

42M

£B

by Report

The

latest

G-J

;
CO

CO
r t i

<r>

MM*

'•S

ffi

s
%

&
S.

.©

•5h

°a

Europe,

"to
CO

■4*-^

-a

..©

■

•s
..

r
.

J©
B

•

«-T

<-3

■•*.•••

o
'c; ••

,4m

E—'

E
GO

cau

B
>•■©.

«a

r®

C_J

3
^

C/3

e8«

•

:,7>.VriS-';3'faE5>

Sil

-t

-4M.

expressed

•S

address is

Box

1121 College

Street.

'£

Joins

Hayden, Stone

B
J

• >

(Special to The Financial Chronicle)

PORTLAND,

Me.

—'

Abbott

Pendergast has become affiliated
with Hayden, Stone & Co., Casco
Bank Building.
-

The

(1C68)

fixed

GOVERNMENTS
T.

awaited

much

offer

"advance

the

re¬

Treasury

announced at the end of last

was

The

week.

offer

new

3Vfe%

bonds,
in addition
to the one
3V2%
long-term obligation now

outstanding (it was put out in
1958)
in exchange for selected
issues of the World War II 2%s
in

was

line

with

expectations of

the financial district. The Teasury
has set

overall limit of $7,000,-

000,000 in this exchange offer, but
apparently will be willing to ac¬
cept

lesser amount.

the day. On the other hand, there
those

are

bring

1980.

The

1963-1968 will

2^s of

accepted within limits for the
This bond

3V2S due Feb. 15, 1990.
is

having

outstanding,

presently

1958.

floated in

been

The

Treas¬

will also accept the 2V2S due

ury

June 15,
Dec.

2V2s

1964-69 and the 21/£s due
15, 1964-69 along with the
of 1963-68 in the combined
of

amounts

$4,500,000,000.
The
1964-69s in exchange for the 3%%
bond coming due on Nov. 15, 1998.

easier

Operation

Indicated

operation will be

The refunding

until next Tuesday, Sept. 20.
This long expected "forward re¬
open

funding" offer by the Treasury
will help to clear the air for the
long - term
Government market
since one of the uncertain forces

overhanging it has now been re¬
moved. The opinions in the finan¬
cial areas arfe that this will turn
out ot be

taking

very

the

sizable

yield in the former
favorable.;

for

ties.

requirements by the Federal Re¬

limit

the amount of

develop

because

credit,

and

money

downturn

the

evident that the
cost of obtaining funds cannot go
It

economy.

low that

will be faced with

wholesale withdrawal of foreign

funds

through the medium of gold

being taken from here.
Nonetheless,

rates could

money

lower than they are now be¬
fore gold will be leaving here in
sizable amounts, in the opinion of
go

experts, because for¬
Banks, the largest
funds here, will not

Central

eign

owners

pull
of
as

their

out

balances

because
rates.' As long

interest

lower

the dollar remains

sound

.2%% bonds being

cur¬

it is now,"these balances
of foreign Central Banks are not

rency, as

1995,
that,

which appears to ,ri.ndiin addition to pension

there

funds,

purchases

also

; are
,

movement of common stock funds

dismiss them

rd"PIifadCfenSiVet0"et°-rventories
On the
economy.
,

According to advices, the interGovernment

mediate-term

with the highest
to

have

.much

not. too

price

middle-teL

selected

Treasury
the

with

maturities,

$12,474,-

000,000 of the 2Vz% bonds being
in for the refunding 3*£s.

ations

in either di¬
pattern of
clearly defined.

be very decisive

rection-until
business

the

fall

It is evident that there is not too
much agreement among

experts

as:

how

economic

the

business

cycle will move in the forecastable future. Certain money mar¬

opinion that

ket advisers hold the

the

will move pretty
along current lines for the

economy

much

balance of

1960 and this makes a

policy of money market ease such
as

quite

have

likely

been

experiencing
the order of

Securities

page

turers'

held down
cases

both

jobs. But

some

over

history—

our

millions

politicians

the fact that

un¬

☆

CHICAGO

BOSTON

cannot

'•

low

far

while the prices we pay
For most of

remain static.

relation

below

each year

steel

this

dream. But dreams
are
made of potent stuff and no
wonder we.force our candidates
can

only

promise

that

(a)

they'll

con-

the PaSt

18 months

the

/'?■/

really is to blame.

were

running at

annual

adjusted

Government

orders

many

years

been going through

revolution

regard

eliminate

other

retail

auto

retail

inventories,

inventories

have

in-

much they'll go up. A reasonable our businessmen also have been
guess is that they'll rise at least at fault. Some price increases are
by $2 billion annually over the not justified and thus not in
next two years. The impact will harmony with the businessmen's
not be felt this year, yet it is a own long term interests. There is
factor, for if people see this ahead featherbedding in both labor and
some of them
may not pull in management.
their horns as much as otherwise,

service

and

—

over

number

years

them

There

1%. But personal income even

another

Sees No Recession and Expects

economy

for

weakness

some

time.

Europe's

adjusted basis con¬
tinued upward and although some
factory workers were furloughed

concurrent with that in

ventories

ing.

seasonally

where

area

has done well this
*
Upturn in 1961
W v
year and that is in net exports.
At this point I shall stick my
The economies of Western Europe neck out. I believe that during
have been booming and it appears the balance of this year business
that the growth there will con- will be only fair and that we are
the

age.

seasonally adjusted basis em¬
ployment declined by 4/10th of tinue
a

NEW YORK
☆

other sales to 1.35. Such increase as occurred-was due entirely to price
Blames Business for Poor
workers
which indicates the increase. If we adjust them to a Speaking
of
psychological
Planning
:
need for upgrading the skills of constant ur real dollar basis, retail factors, perhaps the coming footour workers. The laid off worker
inventories on a unit basis have ball season will help our morale -"Too often the highest level of
over 45 years of age was having a rather consistently declined while
the last quarter, and I say this capital spending has come during
heck of a time getting a new job sales
on
a
unit
basis
have
in- half seriously. For example,
we the latest stages of business ex¬
—and
that's due to the current creased substantially. To me this is are generally gloomy in February pansion—thus aggravating an al¬
seemingly unjustifiable prejudice amazing. Perhaps there are many and. optimistic in Anril. If we ready
inflated
economy.
Thus
against age. Of the 4.4 million causes. Perhaps there's better con- cculd only have the World Series capacity is added just in time for
trol due to better planning and to in
'a
recession.
Capital
spending
unemployed, about 1 million were
February it might help our
married men and relatively few better methods, (computers, etc.) morale,
for the television takes usually has been at the lowest
of them had been out of jobs for Perhaps also the revolution in the our minds off the stock ticker and level during a recession when one
as
should be adding capacity to ac¬
:
'* 'G-.- 'G-.';
long as
two
and
one-half whole field of merchandising is the order book.
months. Of this latter group, an an important factor.
commodate the rising, sales that
for

laborers

20 BROAD STREET

high "

went

In July employment went even
higher. However,
the rise was
slightly less than seasonal, so on

INCORPORATED

are

June.

accounted

unskilled

were

& Co.

inventories

up
by
900 creased very little during the past
They did not seven years. The inventory sales
tell you that 804 thousand of them ratio has
declined
during those
were teenagers. The rest are more years from more than 1.8 months'

unusually large

Aubrey G. Lanston

of us she
fascinating flirt.

factor especially when we must single cause of our inflation has
conclude that whichever candidate been the fact that in the aggregate
two jobs and in many inventories. This trend has con- wins, Federal expenditures
will wages
have
consistently
risen
tinued during the past decade. If go up. The only question is how faster than productivity. Some of
jobs
were
full-time

month

68.6 million. What's more,

than

federal agency "

monster

vicious

thousand

and/

many

'*//■'■ age of nearly $3 billion per year.
during the We must do better during the next
" V
number of people in our economy level they are relatively low in first half were relatively low, but decade..
now ' being
increased. State
But business and labor are also
should be a matter of concern to relation to sales (1.78 months) and are
of non- and
local
government spending to-; blame for inflation. Because
all of us. To those affected,' it. those of manufacturers
durable
goods are exceptionally should continue upward at the the biggest single cost of doing
may
be a personal tragedy.
In
low (1.43 months).
rate of $3 or $4 billion annually. business is labor cost, I suppose
June
1960
there
were
1,200,000
It seems to me that we have for Politics
more people working than in any
may
be a psychological we must conclude that the biggest
from

employment

U. S. GOVERNMENT

but

are

of this year.

Continued

make much

Specialists in

a season- then that during the past 12 years
rate of $6 we'dihave had a net'surplus in
billion deficit in July of 1959 and the aggregate A We didn't! We ran
a seasonally adjusted annual
rate short in respect to our official
of surplus of $7.2 billion in July b'idgpt bv $33 ME inn or an aver¬

ally

The movement of quotations in

Government securiites is not likely
to

turned
.

—but

dictates that
Federal rate of fleticit has changed we
deliberately operate with ; a
drastically to a Federal rate of
surplus but now this radical and deficit during a recession and a
depressing impact of the change surplus during good years. History
on
the
ecohomy
is behind
us. tells
us
that since the War we
Changes the next few months will have had about three good years
be moderate. Treasury cash oper- for each
bad year. You'd think

successful under¬

amount

Inflation

Good' management

lower interest rates due to a more "group
-

of plans

Prices

and

period^ of

previously

action.

winter

seasonal

other hand, most in-

been

Du™g

likely to be disturbed because of

defensive economy.

and

appropriate

the

considered alternative set

provide us with many things, and
sumption, indicating that either (b) it really won't cost us much.
steel production must soon go up There has been an unmistakable
rather drastically or consumption bias toward inflation. Most of Us
'must decline abruptly.
need
only a mirror to see who

ing which is believed to be interested in trading these securities
with

attention

sales, capital spending continues
a high rate, and steel operations

issues

discounts appear
the type of buy-

be attracting

fall

^f nea?

foretell,

usually

Treasury issues could

ine

™

being made by those institutions
have in the past put-most
of their monies into equities. This
which

into selected

puts

usual

leading

1980, the 31/4S of 1985, and the 3s
cate

watches

than

less

be about to set in. He then
the situation closely and

may

performing

receding business. Most of these

longer-

the

around

mainly

center

the^future I

is a
secret but
We
indicators reached peaks inveigh against her to our friends
dprjmg either1 the second quarter but when they leave, we call her
of 1959 or the fourth quarter of
for a rendezvous. We think we can
1959, But during the second quarbeat
inflation, and some of us
ter businessmen were, frantically
do. Inflation would not be a prob¬
preparing for the steel strike and lem were it not for the fact that
during the fourth-quarter they so many of us secretly want stable
were frantically trying to make uo
prices
for
the
other ' fellow's
for f0st time. If this is true then
product, but want rising prices
we should discount to some extent
for our own product. It would be
thew story' that • these
indicators so nice for our salaries to go up

emg

the

?hfs

nickuD

!?fght

Government bonds seems to

term

out that the
expansion
is

(b)
that
the
expansion
will
accelerate, and (c) that a decline

into

bills and intermediobligations
with
the

War

Commitments

that might

ease

invested

S^ttoS»1S3Ue
bought by
g
p.

as
-

£ave

SSiSc
'"2 give them the

common

being

are

business

for

ac-

"w on

Treasury

World

Lower Rates Possible

though

monies

ate-term

•

there

It seems

stock

point

must

current

items that cast a more ac

put to
securi-

ties, ranging from the near-term
issues to the most distant maturi-

(the short-term liquid issues)

However,

insignificant

is being

work in selected Treasury

by the Federal Reserve banks or
by another lowering of reserve
Banks.

5 not

funds

amount

accomplished through the direct
purchases of Government securi¬
ties

However,

But

getting old as such expansions
usually go. Such a period is one
unusually careful planning.
The careful planner thinks ahead
about his various courses of ac¬
verge of a recession. Usually when
we're .looking forward we don't tion under three alternative as¬
dwell on the usual current sta- sumptions: (a) that the economy
will continue in a straight line,

less than honest a if I led anyone
to believe that I know. One might
find plenty of evidence to justify
the position that were on the

Treasury Issues

towards

tone

What are the prospects for the
balance of the year. I would be

funds

This could be

and credit.

money

that

reasonable

seems

November.

test

Equity Money Going Into

many money

Successful

the

ects (or Rcst of the year

issues is more

de¬

move

about

serve

accept in unlimited amounts
new 3%% bond due Nov. 15,

assume

fensive trend

due 1962-1967 which the Treasury

for

will

the end of the year and this will

The issues involved are the 2^s

will

these

ists who believe that the business

pattern

year.

into

funds

the Treasury obligations

are

because

market special¬

money

amount

larger

than
The

1960

Thursday, September 15,

.....

bearing obligations

income

getting their proportionate share
of this money. At the present time
it is evident, however, that the
non-federal securities are getting

CHIPPENDALE, JR.

funding"

Chronicle

dropped substantially. The opti- there will be an improvement in
mist, however, might seize upon our economy by the middle of
continues to go ahead at an in- this as supporting his forecast, for
1961, and perhaps earlier. I be¬
creasing rate with Governments, in recent years the housing in¬ lieve
these
trends
will
occur
corporates and tax-exempt issues dustry has been contra-rcyclical.
regardless of who wins the con¬
movement

The

Our Reporter on

BY JOHN

Commercial and Financial

there

economy
our

econ-

follow.
men's

each

case

business¬

of their spending
has
aggravated an already un¬
desirable
situation." They
have
paid

timing

for

their

plants

and

equipment and failed, to benefit
from the higher quality of work
as I define it (that is, as a decline obtainable in periods when labor
of about 8% to 10% or more in and materials are plentiful. Other
not

the

verge

recession

become more vul- industrial production, or 4% or businessmen, have failed to keep
nerable. One of the happier facts 5% in GNP). I believe that Oc- their machinery up to date and
their loss of income was partially of our present situation is the con- tobe'r employment seasonally ad- their costs are too high.
The av¬
offset by increases in unemploy¬ tinued great prosperity of Europe, justed
will at least remain at erage machine tool in the United
ment benefits.
States is now older than at any
Although construction expendi- present levels,
In spite of, or because of, the tures are holding up rather well,
The full impact of easier money
4 Because
the years 1946-48 were so
gyrations
this
year,
most
in¬ the tre^d in housing is disappoint- is still to be felt. The full impact close to World War II and our defense
able

seem

level.

be at

Although

reason¬

manufac-

omy

then

While many
housing starts to

expected
increase,

July of higher current Government
they orders will not be felt until next

was
collapsing, I have not in¬
budget problems for those years.

spending
cluded

Volume

since 1946.

time
men

the

192

Number 5986

Many business¬ ent, when prices
knowledge and" stable.

which

way

and

toward,

interest.

even

their

"An

the

F. L du Pont Adds

(Special to The Financial Chronicle)

progres¬

planning was a statement
attributed to Roger
Blough, Chair¬

Steel.

planned

When

SACRAMENTO, Calif.
S.

'50%; of capacity, he an-<
stoered, "If anyone really wants
make
go

far

the

time

our

reduced
less

pro¬

erratic

ill-timed

and

purchases.

promote

par

"*}

CTyfo.

& Co.

•

the land to

Atlantic

County,

acquired

J.,

Donbar

Development Corp.

vester St.,

To .purchase

(1)

company

homes
in

offered for sale to

homesites

under

homesite

from

owners

in that

locality.

Western Church Fin.

Westbury, N. Y. Donbar
sub¬

HAWTHORNE, Calif.
Church

engaging in.
from

(and

offices at

ton Boulevard.

3940

may

selves

out

;

kets

purchasing unde¬

semj-developed

land

Hebard,

Treasurer.

;

among

foreign

some

($17 billion), then

mar¬

portion

of the retired citizen market

billion), followed by
schoolteacher

the

billion)
step

and

($30
portion of

market

($7.5

After

on.

fewer

need

each

workers

supply the goods and services for
these

groups, and workers may
furloughed.
If
the
process
moves far enough and fast enough,
be

worst

moves

catastrophe. If '
it will at best
surely retard economic progress. If enough of us ask more of the
economy than we put into it, we
may find even
ourselves among
the

means

slowly

unemployed.

benefit

put

Think

all

across

this

point

the
were.,

the electorate!

spite of earlier inflation, we
in
general enjoyed stable
prices for the past year and a
have

half. Consumer prices have slowly

edged
have

wholesale

upward,

been steady,

and

raw

prices

mate- T:

the

move

world...

rial prices have gone down.
How

about

future

responsibility rests
There

are

now

prices? The
all of us.

"Give

upon

$ relatively

few,

and I will

place to rest

The lever of

where there

are critical shortages;;
labor, although there is a mod- '
erate
shortage in several cities
(but there is a critical oversupply

my'

lever<

•

the .earth." So spoke

move

shortages of capacity. There are
scarcely any areas of the country
our

Archffnedes.

modern world is natural gas

and oil.

They turn the wheels of industry...

others).

ance.

The budget is in bal¬
Recent wage contracts have

been

inflationary

not

much

nature

heat and cool

it's

prosperity along with reasonably stable prices. Based on the
foregoing facts, it would seem
reasonable to
expect reasonably
stable
prices for the near-term
future—say for the next year. The
tendency may be for only a slight

the

planes and trains...

refrigerate

our

food.

difficult to

imagine

world without gas and oil.

V Fortunately, there's plenty. To serve its pipeline
customers alone, Tennessee Gas maintains natural gas reserves
of 18 trillion cubic feet...
And world

reserves

of gas

20-year supply.

and oil

are

•

all-time high.

Comforting thought for Americans

rise.
about

cars,

homes... cook and

Indispensable, steadily broadening in usefulness...

earlier years.

how

our

but

What we've been having is almost
the ideal—a reasonably high level

But

fuel and lubricate

whose

prospects

high standard of living is built

on energy:

for the

longer-term? I believe the
people are becoming more literate
on the subject of inflation.
I be¬
lieve they have some doubts about
having their cake and eating it
too.
of

The

gas

and oil

we use,

the

more we

discover.

But I also believe that many
the

and

tially
from

into

are

pressures

that most

believe
the
it.

can

economy

Unless

still

there

least

take

than

From

par¬

natural

gas

and

petrochemicals that

oil...heat,

mean

ever

power,

wider service to

man.

become

put

com-

;

TENNESSEE

GAS

pletely convinced that inflation is.;
the

DIVISIONS: Tennessee Gas Pipeline Company

TRANSMISSION

HOUSTON, TEXAS

road

unemployment,

outlook during the next
will be for

five

rising prices with

the

years
some

interim periods, such as the pres¬

http://fraser.stlouisfed.org/
Cjt
Federal Reserve Bank of St. Louis

Company
Natural

COMPANY

Tennessee Overseas Company

Gas

Company

•

Tennessee

cause

Gose, Vice-President; and Vivian

business

veloped

Continually
rising '
us to price our- -

groups.

prices

Roger

the

undeveloped

Hebard, President;

does not rise evenly

are

therewith) lies in part
necessity to recognize the ;
truth of this equation. Purchasing

all

sidiary corporations is primarily in

the

power

West Comp-

Officers

connected
in

Western

Corporation i9
securities business

busi¬

the price probpolitical dilemma

the

—

Finance

An improvement

The solution to

Corp.

(Special to The Financial Chronicle)

Inflation Yields Unemployment

lem

and

locality operates a golf
country club with member¬
ship restricted to homesite owners
and

Everyone would profit.

■

con¬

one

part

the

instalment terms.
The
also builds low priced

was

The company will use the net
organized under the laws of the
proceeds of the sale of the shares State of Delaware on
May 4, 1960,
offered, estimated at $228,000 after and maintains an office at 237
Syl¬

Development Corp. through

ap¬

proximately, $20,000.
(5) To working capital, $50,000.

the books closed.

%
.

100

are

public

tract

terms of sub-division into lots

which

has

general economic stability
up to the businessmen.

our

was

firm's

upon

major cause of recent cycles
been

with Josephthal

equip¬

A similar improvement in plan¬
ning is required for inventory
purchases.
These are the chal¬
lenges for you businessmen.
A

ness

Street.

(Special to The Financial Chronicle)

with

install

offered

75,000 shares of
class A com¬
mon
stock at $4 per share.
This
offering was oversubscribed and
this

payment of all expenses, if all the
BOSTON, Mass.—Martin J. Mul- ;, shares are
sold,'for the following
lin, Jr. has become connected with
purposes in the following order of
Hill, Darlington & Co., 80 Boylston
Street.
He
was
'•
previously priority:
:}}.

operating rate there

when

now

and

interference

duction
ment.

possible,

publicly

Thomas

With Hill, Darlington

capital expenditure dol¬

—

added to the

Co.,
formerly
with Walston & Co., Inc.
1200

capital

about

lars

Watters has been

staff of Francis I. du Pont &

asked

curtail

expenditures in view of the then
existing steel production rate of

Va., Sept. 9, 1960.

self

sive

Stock Is Sold

Association, Roanoke,

land

in Atlantic
County, N. J.,
approximately, $33,000.
(2) To survey, plot, bulldoze
;
roads and generally improve un¬
developed
land,
approximately,
Pursuant to an Aug. 26 offering
$25,000.
circular, Netherlands
Securities
(3) To reduce short-term bank
Co., Inc., and J. A. Winston & Co., obligations, $100,000.
Inc., both of New York, N. Y.,
(4) To advertise and generally

Dr. McMillen before
Carolina-Virginia Purchasing Agents

«Symbolic of the

address

(1069)

Donbar Common

•

con¬

own

major

contribution toward economic sta¬

bility — and in
compatible with,

temporarily

are

opportunity to make

man

The Commercial and Financial Chronicle

have the

now

tributes

Life

•

Tennessee Gas and Oil Company

SUBSIDIARIES: Midwestern,Gas Transmission Company
Insurance Company

„•

•

Tennessee Oil Refining
•

East Tennessee

AFFILIATE: Petro-Tex Chemical Corporation

Robert 0.t

(1070)

rise of 147%; from $15.3 billion in

l )l] I,IOO K
V/Li UIVyvyIV

KP KJ Li
ninnmff
vv>

T CiV
lvi

•

„

from

financing

the

growth.

sound

The Growth of Saving Through

The principal channel of

the

American

saving
the

people

past.60 years has, of course, been
life

During that period,
$106 billion of savings have

insurance.

over

been

accumulated

through

the

channel of life insurance. The
ures

that in

are

accumulated

the
life

figsavings
American
insurance

1900 the

through

people

amounted

the

modest

life

sum

$1.7 billion. At the end of 1959,
cumulated

insurance

ac-

savings

had risen to $108 billion.
The tremendous growth of sav-

ine

through

life

Dartlv

course

Erowtae

sales

expands

economv

however

looked

'the

which
of

life

the

Let

business

surance

years

witnessed

and

life

in'

contnbute(1

^economic growin.
The

made

economv

contributed

has

economVc^Growth

has

our

illustrate how the

over

investment

funds

imnor-

contribution

productive

insurance
growth

the

easilv

the'great

in!

and

On!

life

expect
increase

economv

wouIdnatoraHy
tant

c^duct

national

surance

insurance

the

1948

since

have

great burst of growth,
business has been a vital

our

Jactor.^elusive), American (1948Dunng tins period busi,

and

ness

ha\e

industrial

borrowed

corporations

net

new

money

amounting to about $53 billion
order

aid

financing

new

plant and
equipment
and
for
working
capital.
Of
this
total,

nearly

$29

billion

from the life

obtained

was

insurance

companies

other

words,

54^% of the net
tamed

new money obthe capital markets by

busmess
tions

and

industrial

finance

their

corpora-

expansion,

modernization, and working capital requirements m this period
from life

came

nies

alone.

insurance

About

compa-

70%

these

funds went to business and mdus-

trial

firms, with the remainder
to public utilities, and in

going
small

the

measure

Please

mentioned

supplied

the

panies

railroads,

that

note

specifically

net

life

new

money

insurance

business

and

com-

industry,

Actually, due to repayment of
existing loans by corporations, the
life

insurance

made

loans

actually
volume of

companies

much

larger

business

and

T,.

1T1 fill Y^ITl
X
C4/XXV-/v>'

■

..,

llce

buildings,

warehouses,

industrial
so

facilities which have
much to the growth of

JJ® country, it is largely through

^rovided

ons

pmnhadM

emphasize,

these funds

natively
cers

that

moreover,

invested imagi-

were

by the investment offiour

companies

way

average

x^1?^00,/j*
as^mption), the life ms^ance
^^?a" ^

making possible the purchase of

wiae

a r

ately,
our

ideas. Time, unfortundoes not permit detail on

iammes.

4,600,000

America

But

think

would

that

insurance

the

mistake

investment

of life

the

saying

bonds

ment in real estate and housing
faculties, and many other invest.
^

Current Trend for Savins

Current Trend for Saving
we

°ur
nomic

g
look

growth

question

the

future

and

about

29%

the

this financing. Thus,, these are the
m the past 12 years

funds which

what

are

the

for

reasons

the

insurance savings? Some of them
will

saving in recent
for

cause

insurance

glowing down in the flow of life

undoubtedly readily, come,,to

competitive
it

This is /

only

for

As/an example of this latter
approach,
last
year
the
Joint
Economic Committee of the Con-

but also

be-

gress,

years.

concern

business
reasons,

life

the

not

channeling of
savings more and more into institutions
which
have
a
highly
cause

means

under the chairmanship of
Senator Paul Douglas, conducted
investigation of; the general
question of how to obtain faster
an-

mind. Studies which we have specialized investment program, economic growth without inflamade indicate that the basic rea- The enormous expansion of the tion. The report of the Commitson is that for a considerable savings
and
loan business, for tee staff, later followed almost to
periQd

the

last several
a noticeable

life

insurance

com-

business

example,

means

that

rise

benefits, for example, have risen
steadily from $644 million in 1952
to $1,452 million in, 1958, and

JddUinn twJ
there

addition

has been

nnfirp
notice-

a^e t^ndGncy^ for funds left on
deposit with life companies un-

tion

arises

what

part, the increasing
of

volving

little

Saring

"
we
come
right
up sales emphasis
the disturbing fact that part, also, the
life insurance seems to be losing life
insurance

through life insurance in
the past several years has slowed
saving

element

1909 to $6.2 billion in
1919, or a

in-

°hf changif

the business. In

slowing. down of
saving in recent

^ basf undoubtedly been the
on
product of reduced confidence

part:of the general public in
stability of the value of the
dollar. Inflation-or the fear of
the

long-term

fixed-dollar

contracts. Instead, the expectation
of inflation discourages saving m

traditional

forms

and

promotes

speculation in equity investments
such as common stocks and real
estate.
Other
Rising

needs

business

important

source

growth.

There

aiso

are

country

life

assure

The lack of purchasing power in
hands of our people kept
expenditures for consumer goods

the

below potential supply,
' (3). Restrictive monetary

and

oppor-

dangers, which

me spell

•

mirict

b<ft DohtfchY debate about
* ononSc ^erowth of ^

the

auestion

Drime

issue

course

fasteTTate
We

tban

are

the

system

American

capacity

soon

prices*

but

are

productive

about

recently

Tnte1lif*enr»e

the

nnLd

nnt

the

Soviet

care

The

nificantly

wak

-excessive;

evidence

higher

rise of 90%; from $6.2 billion in for the decline in funds- left'on- that-> it wUl be
$225
this
1919 to $15.3 billion in 1929, a deposit under supplementary
con--year, and that it will reach about

bilSn

1953

since

faster

rate
a

GNP,

minor imnact

nrices

majority of the committee,
as

follows:

Y1Y

were

MaintainW

h\ah

(1)-Maintaining a high-level .of

£^ thf^fsentTaT' TngredfeTTo?
essential lngreaient ioi
gr0Wlh- lf- th+erf

the ^f stable prices
terms emDlovment
and

as of constant 1958 dollars, the CIA
well as fear of inflation, have un- estimates
that
the
Soviet
GNP
doubtedly been part of the reason- was about' $120 billion in 1950

™

somewhat

werl

The- recommendations of the
staff of the Joint Economic Committee, strongly endorsed by the

forms of saving, for example,

such

services

where sunplies

while having onlv

LP d

Russia

machinery

increase in demand for goods and

Amnm,

decade/Measured

(4)

lilhed estimatlf of the
next

and

indicates that

Tinfted ™n

outstrip the

Statistics

<?vstem

Central

threat

boast that the Sois_a more efficient

economy

accuracy,

basic

crowing

the

concen-

was

had market power to raise wages
and oass on hieher costs in higher

tb^

awa4 S

SyStem that will

viet

The

areas:

" demand"

medical

Communist world

states:
viet

mnntbc

erowtb

nolitical

sootlish»t

Pnrr,infy

in three

where

ItatTs-and'what to^^to"

pratp

not. general;

out autos and steel, where producers

mean.

„rp

was

business, but trated

our

must rec0gnize. Let
what

savings

great

are

tunities ahead of
^bere

growth

other

econ-

goods ahd

for Federal budget policies since 1953
the financinS of sound economic did not check inflation. Inflation

reasons undoubtedly exist,
on

The

vigorously .growing

insurance

interest

rates

business.

our

o^e

settees to Fedl
^tal governmSts.

«£

expanding

our

a Khrushchev's

saving

through

Great opportunities lie ahead

0my.
f0P

the

merely tean- inflation-does not provide
climate favorable
to

•

economic !gro^

business

propor-

insurance< sales

life

against

there has been
cash surren-

years

ders and pohcy loans. Surrender

the

in-

of^

Growth

prospects are for saving through
life insurance. What is the ;cur-

whether^ this

total

Slowed-Down

^ the nation, eco- der supplementary contracts to
continued the decline.
of
'

dustriai firms. During the same
The facts in brief are these,
period, 1948-1959, the life msur- During the first five decades of
ance
companies added to their this century, the amount of savholdings of mortgages on business ing accumulated through life inand
industrial
properties,
and surance tended to double every
apartment buildings, in an amount decade. During the decade from
equal to $10.5 billion. Since the. 1899 to 1909 the
sayings accumutotal mortgage debt of this type lated
through life insurance rose
increased by
|37 billion • m. this..from. $l 5 billion-, to $3.3 billion,
period, the life compames pro- or about 120%: from $3.3 billion
vided

for

Amencan economy, policy loans from $506 miUion m

and,

and

Reason

renthet^llv

economic

of business

period.

creasing portion

the
down perCeptibly. Only time will
growth— tell
has been limited to the purchase sitory Gr whether isit is a lasting
tribution

this

„

panies have been writing an in- funds by necessity to residential of

°f channel "of Ifvlng ^eTa^o!
channel of saving. The rate of

in^stria^inv^stments
investments.
industrial

during

larger flow of the letter' by the majority report
the
Joint
Economic
Comfinancing. The comparatively mittee,, presented .the following
These, then, are the principal involves little or no element of slower rate of saving
through life arguments: '
ways in which the life insurance saving. A strong shift has taken
insurance
has
significant implim
Economic /growth
slowed
savings of our people have pro- place in the "product mix" of life cations for economic
growth be- substantially after 1953 GNP rose
vided the financing of sound eco- insurance toward individual term cause of the
highly diversified at an average rate of 4 6% benomic growth. They are not the and
group
business,
and
away and heavy investment of life comtween 1947 and 1953
but growth
only ways, however. Time does from permanent cash value inpanies in business and industrial si0Wed down to 2 6% between
permit me to go into other types surance which involves the ac- securities and
mortgages.
iq^ Ih
iQ<sq
Tpt'rna wv on¬
of life company investments of cumulation of savings. In addiS
that
must
be
lesser magnitude such as the pur- tion,
our growth in the pension
The Future Economic Growth
warv about the use of statistics
chase of state and local govern- field has slowed, apparently be0f the United States
W21 Tight monev and a restricment bonds which have provided cause of tax and investment adSo much for th
rerord of the five Federal budget, nolicv led-4o
the financing for toll highways vantages enjoyed by the uninsured
past 1 would like to turn now this slowdown. These policies held
and other public improvements, pension funds. A further impor- t
consideration
of
the future
down bousing and industries snnThe same is true of direct invest- tant reason is that during the

.homes^ by

wide°Vv
i?fv of^growt^ ^ Hefe
variety
ot
growth- ing/
Here

producing

doubled, or more
doubied} each decade. The
annuai percentage gain in accumuiated saving through life insurance ranged from six to
12%
than

to^assume that the
mortgage-loan

rise

during the first five
decades the volume of saving accumuiated through life insurance

oTdoTrs

FHA-msured loans, $10.5 billion
have been VA-guaranteed loans,
and
approximately
$22
billion
have been uninsured home loans.
Just; think of what this; means.
If we were

bJddingc
gro
$9Q Sninn d.3^iQdft 1^Q fK The
$29 billion during 1948-1959, the
The

like to

that

S0w rl!ge

industrial

^ insurance companies actually
purchased something like $85 bil-

1939 to $57.8 billion in 1949,

°* 112%. Thus, it is possible to
gtate

$420 billion in 1970. The CIA estimates that during this decade the
Soviet GNP will grow at a comvigor of its growth. Perhaps this pound rate of 6%. By comparison,
tendency will be reversed, and if the
United States economy
a
stronger growth rate will be grows at the historical rate of
resumed, but we cannot ignore about 3%, our GNP by 1970 would
the present trend.
total $675 billion. This is still a
large margin over Soviet output,
The Comparative Growth of
but the spread is narrowing. FigOther Forms of Saving
ures such as these have set the
What
has
happened
to
the stage for a great hue and cry
comparative growth of other about what can be done to acforms of saving in the past dozen celerate the economic growth of
tracts, The fact, in any event, is
that saving through life insurance
seems
to have lost some of the

The decade frora 1949 through years? Some of the main forms the United
States. Practically
dav® Prided millions.of dollars 195g definitely began to reveal have been experiencing a remark- everybody is for an accelerated
Oi imancing to. small business a slowing down of saving through able rise. For example, the vol- rate of growth, with the big quesconcerns*
life insurance. Accumulated life ume
of annual saving through, tion being how to obtain it.
Perhaps most interesting is the insurance savings rose from $57.8 savings and loan associations has
Until recent years, economists
enormous contribution which life bUBcm at the end of 1949 to $108 jumped from about $1.2 billion in have been satisfied to trust the
insurance savings have made to binion at the end of last year, 1948 to $7.5 billion in 1959, a six- driving forces of our market
better housing of our people, an increase of $50.2 billion, or fold increase. The volume of sav- economy to produce growth. Un¬
which certainly improves
our 87%
during
the
past
decade, lugs annually through uninsured der a system of free markets and
productive capacity as well as These figures in themselves might corporate pension funds, such as free choice by individuals, ecoour living standards. During these not seem a reason for concern the Bell Telephone System fund nomic growth was considered to
past 12 years the life insurance were it not for the fact that dur- and the U. S. Steel fund, has risen be the inherent product of free
companies have expanded their ing
the
six
years
from
1954 from $700 million in 1948 to $3.3 initiative and the desire to imJ?old;ngs of mortgages on 1-4 through 1959 the annual amount billion in 1959, nearly a five-fold prove one's living standards. The
family houses in an amount equal of savjng through life insurance increase. The total funds accu- role of Government was primarily
to ?20 bilUon' In other words, bas rested on a plateau with the mutated through mutual funds conceived to be the maintenance
about
of the total increase aaaual f£u°es20%
faPlling within the have risen from $2.3 billion in of a favorable climate for the
°f *10.3 bi»lion inbome mortgage
of $5 2 billion to 1948'to $17.5 billion in 1959. A growth-producing energies of our
dfb 'nt^=e
?5 5 billion' The Percentage in- substantial part of this rise is people., A primary function of
thls penod h.as
crease in accumulated saving has accounted for i by rising common Government was to preserve vigllfe.msurance companies. But this deciined steadily from 6.9% in stock prices, but in any event the orous competition and to encour.really underestimates the 1954 to 5 3% in 1959> If life in_ growth has been spectacular. On age individual initiative in saving,
0
Jmpact of life insurance surance savings perform, during the other hand, the mutual sav- investment spending and; induscomPa"ie? in home financing be- the >sixties as they have since mgs banks have displayed little trial innovation. The concept of
cause * does n<?t take. acc°unt of 1954> total accumulated life in- capacity for growth in the period, the role of Government has been
a™ortlzatl°n of mortgages and surance savings in the decade will rising from $1 billion of savings changing, but this is still the basic
i
m°rJ"fag<: repayments. We increase about $55 billion, or a in 1948 to a high of $2 billion in view of many—perhaps the mahave reliable information which little more than 50%_far below each of 1954, 1955 and 1956,-but jority—economists in this counshows that since 1946 the life in- tbe doubling of earlier ? decades, falling back to $1.5 billion in 1959. try. However, there are some who
surance
companies of the coun- This is not a
happy prospect in
The
fact
is,
then,
that
life would assign a different, much
try have actually made about $46 vjew 0f the
great needs which lie insurance
saving has not been more aggressive role to the Fedbillion of home mortgage loans,
ahead for the sound financing of showing the capacity for growth eral Government in accelerating
of which $13.5 billion have been economic growth.
characteristic of many other forms economic growth.
have

Thus, the productive investment
corporations m this period. We of life insurance savings has been
have reliable figures which show a
major
source
of
the
rapid

rise
and fr0m $27.3 billion in
a

de- approximately

partment stores, shopping centers,
and ITiany other commercial and
meant

Life Insurance

of g0%.

have been employed to build of-

page

„

Continued

duced

I ilTfi
\y

ffS VI
V ±C

KJL\i V

: 1929 to $27*3 b^on in 1939,

VAlll^

1960.»

Thursday, September/15,

The Commercial and Financial Chronicle

those of

high1

ra^ Growth
t^ emXsis should^be nilce^on/
Growth
be placed on,
(2)

Monpfarv nr>lirip<5

should be

meaiuSv
£f thrperiod l953-1959" espedaUy

Volume

much

than

easier

Tne

192

role

proper

Number 5986

in
;

1955-1957.

monetary

should

policy

The Commercial and Financial Chronicle

this

earn

higher

low

possible.

(3) Federal budget policy should
vigorously to support eco¬
nomic growth and dampen busi¬
ness
cycle fluctuations. Federal

be used

spending for schools, public
works, health, and research should
be increased. Taxes should be cut

recessions

and

increased

for *

period even though
the general level of interest rates

attractive

invest¬

One of the major difficulties pre¬
sented to the analyst of Over-the-

inflation.

not

Inflation

man-made

succeed, then the "profits
and can be held in check by wise
—wages—prices" spiral should be
public and private policies. The
checked by
successively greater
American people
have come to
Government intervention, leaning
realize this in the past year. How¬
ultimately to direct controls over
ever, success in checking inflation
prices and wages.
requires eternal vigilance.
These, then, are the views and
(6) The life insurance business
recommendations of the staff of
has recognized its responsibility
the
Joint
Economic
Committee
to aid in combating inflationary
(endorsed by Senator Douglas and
the majority). I suggest looking policies—whether public or pri¬
vate. This has been done in part
at
the
party
platforms to see
a
campaign
of
public
whether the Joint Economic Com¬ through
education and in part through a
mittee's work was an idle exer¬
cise. The limitations of this paper
do

permit me to go into the
merits of these arguments. How¬
not

I am sure that many will
that they have vital impli¬

ever,
agree

cations for the life insurance busi¬
own view is that sound
requires public and pri¬
vate measures to stimulate saving

ness.

growth

investment

and

our

economy.

requires above all stability in

the

value

the

dollar,

because

inflation destroys the will to save
and is thus the enemy

of growth.
To attempt to force a faster rate
Qf economic
growth through
expanding Government spending
and easy money has grave infla¬
tionary implications for the life

direct

anti

effort

inflationary

measures.

encourage

Federal

believe

that

policy
in

this

decade, with the great danger that
will

Government

our

con¬

Counter

Market

lack

volume

are

recorded

day

detected

action

price

and

This oppor¬

however,

trading activity in

any

and

can

if their

helpful

good and advertises it in order
obtain

customers

that/ he

price

move

this phase of your analysis is re¬

After

the

quested of them.

completed, he

the

It is also advis¬

some

friends among

trading houses who appreci¬
your

able
a

sell

price

move

buying

may

it for

after

comparable

has

the

can

ing

to such

ticular

security at

par¬

Note the Firms Making a Market
Sometimes

are

other brokers and individ¬

among

uals.

analyzed
and copies of the
widely distributed

broker

material

stock

this

data

that

firm

has

released

not

This is still

what

beware" world and don't forget it.

they

attempting to create a
buying interest because they have
a supply of stock for sale.
If they

Carloads Worth of
New

Industry Located Along

are

have
the

55,000

active trading interest in the stock
in the past, it may indicate that

active

been

the

past, it will show

records
tered

available
in

dealer

stock

Coast Line Last Year!

in the
regis¬

any

securities.

This

is
not always
a
sure
sign that
tempted to pursue faster
stock is available for distribution
economic growth
through infla¬
but
it
(like some of the other
tionary programs, it will be vital
may
be a straw in the
that the life insurance business clews)
equip itself thoroughly to have \faindv" it could also be possible
that a firm that has made a trad¬
a much more powerful direct in¬
market in the stock for a
fluence with public policymakers ing

stantly

toward the. end of avoiding infla¬
tion. Almost every day Washing¬
ton

has

serious

bright new idea with
inflationary consequences
carefully to the light.
a

held!

Should

not

the

life

insurance

long
time
of creating
is

back
the

also

for

buying interest.
carefully check

months

security

note

and

of the primary

names

firms

few

desirous

some

advisable to

trading

you

are

fully equipped
to looking at something that is of¬
fered in a bullish report on an
insurance
business
and for
the bring its influence directly to bear
on
these
ideas in a
way
that unlisted stock. Any unusual addi¬
welfare of the country as a whole.
shows we are determined to fight tions to the list of trading firms
inflation in every way it shows in a stock when a report is is¬
The Role of the Life Insurance
its ugly head? All of the special sued may be worthy of checking.
Business in an Expanding
interest groups have their power¬ Sometimes. firms in one part of
Economy
ful lobbies in Washington to pro¬ the country take orders for bro¬
What then should be the role
mote all manner of inflationary kers in other areas and act for
of the life insurance business in
schemes. Why should the saver them.
Check
the
number
and
our expanding economy? I would
not have powerful and vigilant names of trading houses if you
sum
it up as follows:
representation to protect him, and are studying a new situation that
(1) In view of the Communist the general public at
large, from has been offered to you.
threat to the security of the free
these schemes?
business

world, a faster rate of economic
growth in this decade is of vital
importance.
(2) The only way to obtain a
faster growth on a sound basis

(7)

then, the role of
our
expanding
economy, as I see it, is two-fold:
(a) to redouble our efforts to
encourage saving through life in¬
life

Check Bids and

In brief,

insurance

Go
and

back

through
the

note

the

essential
ingredient of growth—the will of

believe

the

end

destroy

the

with

life

deep conviction that

insurance

business

has

wonderful

opportunity to do a
(3) The life insurance business public service in the years ahead
By rededicating itself to
now
has a great opportunity to of us.
the promotion of saving by the
aid
in
providing the means to
American people through life in¬
sound economic growth. It can do
so
by rededicating itself to en¬ surance, and by the productive
investment
of
these
increasing!
couraging the American people
savings in the expansion of na¬
to save through life insurance.
tional
productive
capacity, life
(4) There is no reason today
people to save.

for the life insurance

business to insurance

can

contribute much to

the sound economic

growth of the
country. It can thus play an im¬
manent
cash
Since 1947 the average rate of portant role in the protection of
the free world against the threat
return on life insurance company
of Communism. Moreover, it can
investments has risen from 2.88%
be of great direct aid in fighting
to
nearly 4%, and many com¬
inflation and
thus in aiding to
panies are, of course, well above
insure
the
preservation
of our
this average. The new money in¬
free society here at home. Life
vested. by companies is earning
insurance indeed has a vital role
5 V2% or better. Moreover, due to
call protection ;on bonds which to play in our expanding economy.
be

backward

about selling per¬
value
contracts.

companies have been
able to. obtain ih; the; past several
most,

"years,

life

the companies will continue

addres$ by Dr. 6'Leary before
the
opening
business! session
of
the
Guardian Leaders Club, New York 'City,
:

* An

sometimes
be
the

valuable

developed along

timated 55,000 carloads in extra shipping busi¬

re¬

ness

offers pertaining

to the subject security.
A check
preservation
surance in order to contribute to
of these figures backward for at
of
our
system of political and
sound economic growth, and (b)
least
six
weeks
is
sometimes
economic democracy is to achieve
to bring our influence more di¬
helpful in determining the mar¬
a
higher rate of national saving
rectly and powerfully to bear in ket status of a security; where
and investment spending. Any at¬
the
interest
of
avoiding infla¬ the main interest has been in the
tempt to achieve growth via the
tionary public policies.
past; and any changes of particu¬
path of easy money and Federal
Conclusion
lar interest.
deficit spending will succeed only
Although the vol¬
In concluding my remarks,
in producing inflation, and will
I ume of trading is not recorded,

with

consistent

were

Coast Line's tracks last year will provide an es¬

records

variations

corded bids and

The 218 industries that

Offers

clue

during 1960. The number of
increase of 79

impact of

our

over

new

industries

1958, and reflects the

intensive campaign to interest

industrialists in the Southeast Coastal 6.
Our skilled staff of industrial

development

spe¬

cialists, including geologist, foresters, and agri¬
cultural

experts, provide a genuinely valuable

service to

expanding industry. In turn, the com¬

munities served by Coast Line benefit from the

can

additional

discovered by looking back at
records.
Firms
that
have

jobs, payrolls, and local trade created

by industrial growth.

maintained

a trading interest in a
usually show firm bids and
offers at stated prices rather than

A close

stock

record

their

wanted

and offer

Some

interest

wanted

among

bid

relationship—as partners in

progress—

industry, Coast Line, and the states and

communities in the dynamic Southeast Coastal

basis.

6 is

sure

to pay

off for all in

years to come.

Firms Are Primarily

Trading With Other Brokers
There

firms
other

are

that do

investment
only with
banks and pro¬

many

business

brokers,

fessional

investors.

maintain

positions

Counter

Market

These

that

securities

these

Thanks for

Over-the-

firms

are

Using

Coast Line!"

and

experience, is also helpful in de¬
termining unusual interest in any
particular security.
It
is also
possible

firms

specialize in particular items. An
acquaintance
with
these
firms
through a study of the daily quo¬
tation records, and as a result of

"buyer

taken

profit, of. at

automatic
be used which

time.

been

not again

helpful in attempting to judge
technical
situation pertain¬

are

it.

level.

higher

distribution

regular business—some¬ paid for it.

times they can be helpful to you.

and

good security but he may also

find

opinion regarding

able to have

The security buyer who purchases
stocks at such a time may acquire

some

checkups that

technical
situation

it ate

when

the

clients

sale.

procedure as the
who has a large stock

position

to non-listed stocks. There

comes

are,

some¬

observed

available

not

each

Accumu¬
can

when

trained technician.

tunity

the
that

automatically

distribution

volume

indications

listed securities.

lation and

times

securities

better

quantity for
same

check

just the

merchant

Double-Checking

Over-the-Counter Situations

when inflation threatens.

of
any
stock, it
saying that often
these particular features become
publicized when someone has a

without

goes

JOHN DUTTON

Some Hints for

remember

provide

substantial

advantages of compound in¬
terest. So, permanent cash value
an

Regardless of the fundamental

the

surpluses ment, aside from the tremendous
advantages it provides in the way
of protection against unforeseen
(4) To reduce the instability of
contingencies. The life insurance
the economy, direct controls by
business has a great opportunity
the
Federal Government should
and a responsibility to rededicate
be imposed on such areas as con¬
itself to stimulating national sav¬
sumer credit, housing, bank loans
ing, and it is gratifying to see
to carry inventories, and perhaps,
that:; many companies are inten¬
business investment in new plant
sifying their efforts through im¬
and equipment.
,
proved sales materials developing
(5) If it should turn out that the investment
advantages of life
inflation
is
a
serious
problem, insurance.
the approach should be to reduce
(5) There is no need for the
the market power-of large pro¬
life insurance business to be de¬
ducers
through anti-trust action
featist about the inevitability of
and lower tariffs. If such actions

times

good

CORNER

insurance is

Should Be

attractiveness

stock

investments—and

Checked

the

present
prices,
moreover, the average return to
investors is about 334 %
On this
basis, it takes a large expectation
of
capital gains to offset the
much higher rate on life insur¬
ance

Technical Aspects

SECURITY SALESMAN'S

considerable

be to prevent a
creeping inflation from becoming should decline. At
a
gallop, while keeping interest level of common
rates

rate

(1071)

ATUNTIC

COAST LINE

The Commercial and Financial Chronicle

(1072)

AS WE SEE IT
which such

Continued from

page

year period makes no sense. Changes
—which the candidate's statisticians

)

labor

use

for this rate of

its
is

Labor

realty healthy rate of growth

"facts"

are:

Continued from page 1

can't afford. With

toward

can

dential
cate

any

wish

was no

tration
world

one:

were

The last six years

conflict

when

consumers

the

world

ize

inflation

enormous

of the

currency

largely incidental to the conduct of the

war.

and credit,*

The candidate

does not take the trouble to mention the fact that

prices
consumers had to
pay for what they bought rose 25%
during the six year period—and that after an increase of
some 18% in the
single year immediately preceding the
six year period. All this without reference to the
very
questionable concept of economic growth as the increase
in total output—a
subject which we have more than
discussed in these columns.

once

indi¬

Figures

As to "fact" number
two, how does the candidate
know what the rate of
growth is in Russia? Does he ac¬

cept the figures handed out by the Kremlin? Does he
include all sorts of
production, or only those for which
official

figures

readily available—that is industrial
output? Does he make any allowance at all for the dif¬
ferent stage of industrial and economic
development in the
are

two countries? Is

smaller the

he, or his statistician, not aware that the
point of beginning, the larger any given amount

of increase will be when
presented in
Is he, or his
tries

percentage form?
statistician, ignorant of the fact that indus¬
nations, like animals, tend naturally to grow faster

when younger — that is when stated in
the form of a
"rate"—than in the later
years? Is it not about time we
put an end to all this statistical nonsense about Russia and
its growth in recent
years? Their progress has without
doubt been
great, greater in certain limited fields than has
ours, but let us keep our statistical

computations within

reasonable bounds.
As

"fact"

waste of words

■

■»

number

that

the

three, let it be said without
"rate of growth" over
any one

non-war

;

veterans

rj'fi

•

needed

public

services

denied to the country because
the excesses of farm politics,

but also with

such

ours.

alter

-v

•

much

raise

technological

zational

to jeopard¬

too

bodies

must

change the

basic strength.

our

it.

neces¬

advances.

and

em¬

organi¬

When

such

policy is followed in the acquisi¬
tion of new capital goods and is
complemented

with

investment

in both education and in research

note

and development, a firm basis for
accelerating economic growth will

first

that

the

United

States

America

today has the highest
standard of living of any country
the world.

that

Let

other

bles

so high a per¬
of its populace. And let

note third that

record

past
not

present and

our

outstanding

achievement—on

pro¬

scale

closely approximated by
any other country — was made
with an economy that was rela¬
tively free of government plan¬
ning and dominance. All this was
even

with

attained

matched
■

This

anywhere
should

in¬

measure

economic

dividual

investments in intangi¬
particularly important in

freedom

un¬

this globe.

are

day and age.
The world is
undergoing a series of rapid and
marked changes. The emergence
of

the

forming
of
new
economic
in Western Europe, the ris¬
ing Communist menace, through¬
groups

put the world, all attest to the fact
that these changing times are de¬
manding some change in our atti¬
tudes and actions

circumstances;

Expects Increased Federal
V'
"Spending

Nevertheless, it is only realistic
to

expect

increase

some

soon

governmental expenditures

Federal

to the

level, Jn response

demands

of those who

the

insist that

should be stimulated by
expanding public spending. That
being the case, thoughtful leader¬
ship must insist that such spend¬
ing should be directed into chan¬
growth

nels

that

increased

stimulate

growth; and that those

avoided and

This,
of

then,

what

non-essen¬

cive

the

pends

question

expenditures are condu¬
growth;
what
causes

upon

mainly
tural

and

lot of things but
how best to develop

upon

utilize

and

available

human,

man-made

They key to

na¬

resources.

is how our
nation gears itself toward invest¬
ment

for

nomic

growth

the

future;

growth

and

since

eco¬

de¬

progress

pend primarily upon investment
for the future. And the higher the

growth rate that is sought, the
higher the quality and the greater
the

amount of

respondingly

investment

cor¬

needed.

But Not Any Kind of Spending

When it is said that to acceler¬

ate growth we need increased in¬
a

broad

our

may

•

definition

vocational

themselves
We

so.

services,

all

college

but

find

unable

afford

canont

to
let

develop

financially unable to
their talents to the full.

Neither

can

were

afford

can't

waste

solely private aid and
Our imaginations cannot
on

short

develop
tional
for

fail

organiza¬
instrumentality
private and public
,,

blending
toward

this

shall

varied

some

device

action
If

that

the

means

good.

common

increase

some

public spending for educational
opportunities and facilities as a

long-term investment, then
But this does not

mean

neces¬

sarily that the increased spend¬
ing must be at the Federal level.
Federal

spending should be lim¬

usually

not

but

acter
cannot
or

only to

those

functions

true national

limited

performed

those

char¬
that

efficiently

economically by private enter¬

prise

by state and local

ernments.

such

for

example,

let

moment

our

Federal agricultural program. Un¬
der this program we tax the
gen¬
eral

public

for

the

benefit

small

minority who are engaged
farming. In many cases those

farmers

who

need

the

least

re¬

ceive the most. The production of

agricultural
sur p 1 us e s
adds
nothing to the general welfare
and

even
subtracts from general
well-being by wasting-^ resources
that might otherwise have been

used

constructively.

.at

The, Equitable

think

know

agriculture.

something about

The

Equitable
has
financing farmers for half
During all this long
period we have maintained our

been

century.

„

enthusiasm

for

farmers

for

and

gov¬

AHmg Industry

Today The
million

Equitable has over
invested in mort¬

$400

secured

gages

1 farm

real

es-

state and is

actively seeking more.
emphatically the notion
that agriculture is an ailing in¬
dustry that requires continuing

We reject

Federal subsidies for its survival.

Quite the contrary is true. Ameri¬

agriculture is by far the most

can

efficient

world.
freed

and

progressive

What
of

needs

shackles

the

imposed

benevolent government and to be

permitted

capacity

for

job opportunities.
Increased public spending is not
necessarily the right or only ap¬
proach to this problem.
Nor, I
daresay, is lasting insistence and

concrete

one

consider

and

effort.

benefit

ignoring wastes
and
trying, naively, to pay for
new
services
through
deficits
without promoting inflation.

produces

the

get

contributions

the talents of our Negro citizens
by denying them equal education

reliance

existing
contribution
that

the

several useful hew public services
can
make to growth.
In short,

par¬

use

talented young people waste their
lives at inferior jobs just because

ited

in investment—

go to

school

financially

which have

and that is, capital spending for
tangible new, modernized and ex¬
panded plant and equipment. Sec¬
ond, there are expenditures for
intangible services which are just
as
surely an investment in the

affording sufficient opportuni¬

point
fiscal

strained, it is difficult
obtain, except through elimina¬

sug¬

ties for capable and bright young

people who desire to

The

with

that

Holds Agriculture Is Not
been

this juncture of the Cold War, it
is both criminal and foolhardy to
waste our manpower resources by
not

agriculture as a desirable area for
safe long.-term investment.

and potential. At

resources

investment is presupposed. There
should be included first what is

included

gested, the Communist threat
of

it.

vestment,

heretofore

veterans.

matters

resources

Resources

has

they

eliminated.

raises

ticularly demands that

tial Federal expenditures that are
not conducive to growth, should
be

that

Foolhardy to Waste Our
'

■

better organize and gird ourselves
to cope with current and potential

forget.

never

nations in Africa and Asia,

new

that

this

can

living standard to
centage

These

match

diffusion of its

in the broad

ours

have been established.

note second

country

services

tion of political wastes in

My concern is not only with in¬
creasing the amount of investment

the
Such a

growth to happen. The answer de¬

Those Russian

development.

discard the system we have, let us

goods and this country felt it its-,
duty to send billions of dollars in goods free of all charge
to many stricken areas.
They were also years immediately
after

should

Before

were

starved for all sorts of

search and

that

acute the

opinion,
role of government

devastating'
over

are
expenditures for
equipment.
Here, we
are
thinking primarily about in¬
vesting in education and in re¬

and

investment of the kind which

of the Truman Adminis¬

immediately following

years

in¬

pressure

such profligacy.

Badly

plant

gov¬

seem

least,

very

government

economy

number

minority

payments.

enhancing the form
productivity our
emphasis should be on promoting

not, in

need

point out again for the thousandth time the major fal¬
lacies of such "facts," but
perhaps it is better to present
once
more, at the risk of boring the reader, some of the
major weaknesses of this type of reasoning. As to fact

the

that

the

serve

that has nothing to do with their

future

;

going to continue.

ductive

that there

spending
to

I have
spend¬
ing by the Federal Government as
expenditures for farm subsidies
and price supports and for exces¬

is growing at three times

sure

continue

sity for reappraising what the role

major industrialized society in'

could be

the

drift makes

the world."
Now

candidates

drift is

"Last year the United States had the lowest rate

growth of

larger

broadening
scope of operations.. -; Party plat¬
forms and speeches by the Presi¬

Administration, grew one-half as much as
of the Truman Administration.

of economic

larger and

ernment with an ever

under the last six years

(3)

eliminated

area

groups at the expense of the gen¬
eral welfare.
We simply cannot

"The Russian economy
the rate of ours.

conducive

public* works, and aid to veterans

(2)

from such buncombe!

should

terests

the

save

not

wastes resources

are

(1) "Our economy, under the first six years of the

Republican

nonsense

the

whole

Achieving Real Growth and

kind Providence

Particularly illustrative
type of public spending

sive

political
wrung from this rate of growth
buncombe. For that purpose he lists three "facts"—some
of which are as doubtful as his $7,000 gem, and all of them
grossly misleading if taken out of their context. The
is

elaboration

may

are

that

growth

But the Senator is convinced that still other

nourishment

which

growth.

in mind here such wasteful

afford the best
schools for our children and the best-paid and the besttrained teachers. And, finally, with a realty healthy rate
of growth we can talk about an economic crusade for jus¬
tice." To the Senator it seems that all our economic prob¬
lems are very simple. All we need is a "realty healthy rate
of growth," and, of course, the candidate, if elected would,
we are assured,
see to it that such a rate of growth is
attained, which a President can do, apparently, by merely
setting "before us our national goals."
"
'
we

this

Day in Detroit. But

rest of

union

for

accounts

important to increase

spending in areas which are con¬
ducive to growth, it is in some
ways more important to eliminate
non-essential
spending in areas

Kennedy is a victim of growthmanship, and
many, many quirks and serious fallacies. So evidently
his party. So also is labor union
leadership. Which

doubtless

is well known has taken firm hold upon

defense that this Administration said

While it is

synonymous

Senator

leadership in and around Detroit. "With a
really healthy rate of growth," he tells us, "this country
can have full
employment for all who want a job; with
a
really healthy rate of growth we can pay for all the
a

growth—vary enormously from one year to another.
It is what is now so glibly referred to as the "business
cycle." Such short-term changes are not "growth" in any
real meaning of the term, but the usual and inevitable
ups and downs of business.

astounding result was obtained for the pur¬
pose of determining whether the figure could be accepted
as even half accurate. An
"average rate of growth in this
country" is itself somewhat of an enigma—the rate de¬
pending upon disputed concepts of growth and of rates
and of how they are to be computed, but it is perfectly
obvious that even if some "average rate" of growth is
stipulated, an infinite number of different pecuniary
effects might well be felt by individual working men to
say nothing at all about "every working man." We can
only hope that if not "every working man," then at least
most working men in this country will know how to ap¬
praise such statistical balderdash.
But the candidate has other

Urges Ending Wasteful Spending

in total production
use

with

idea, which

Thursday, September 15, 1960

....

Russian

six

operate

free

its

agricultural

only
other

full

market.

worker

subsistence

Russians.

diet

con¬

trast, each American farm worker
produces food and fiber sufficient
for

other Americans. Tremen¬

dous

surpluses

piled

are

government warehouses. The cost
of

storage

alone

for

amounts

surplus

over

wheat

$1,000,000
get rid of

day. We cannot even
surpluses
by
giving
them
away without upsetting the do¬
a

our

mestic

economies

allies.

and
To

better

problem
amine

4%
on

understand

friends

our

■

the

its

parts. We have
million farm families

the

them

land.

are

small

About

and

farms

farm

necessary

ex¬

about

living

million

that

are

of
too

too

ill-equipped for
competition
under
modern technology. Another mil¬
successful

lion

are

ficient

the

also

farms

advantage

employment
The

small

but

remaining

this

of
a

and

inef¬

has
outside

group

some

part-time basis.
V-k
million

families represent America's solid,

Volume

192

Number 5986

The Commercial and Financial Chronicle

...

(1073)

■

efficient, modern agriculture. This

•'

cussion let

assume

that

•

do5 leverage provided
by the substanin Federal tial
part
of
the
capitalization
we

together with about 100,000 require a net increase
efficient corporate farms spending. This, in my opinion, does represented by evidences of debt.
produce and market 90% of the not mean that a fresh outburst
There is no future for our countotal commercial output of crop of inflation is sure to follow. It
try as a free society without lonegroup

highly

animal

and

products. This first
families
mentioned
are

million

hard

the

core

the

farm

mistake to look solely at the
Federal
governmental
sector of

prob-

relief

it?

Why not face
been side-tracked

have

technological

tion

problem.

They

This million farm families

price support cause
they produce
and

store

too

little to

too

farmers

the

and

the

these

But

prevented

from

achieving

efficiency

mum

strictions,

The

"Let

employed
declining

ever

since

farming

this

time

the

A
There

has

the

Census

growth.

Agri-

culture shows fewer larger family
farms. Our national policy should

try

accelerate

retard

that

fact

this

trend,

The

have too many
land,
labor
and
devoted
to
agriculture,

nology

still

resources

capital

market

and for which

yes,

—

age* snare
age space.

and

confidence

the

growth

are

our

numerous

Our

tax

present

f^nrnnrstp

urniwtH
growth.

structure

cellent

thrift

institutions.

protection

and

growth-oriented

are

iS\

BY OWEN ELY

;

sense

that they help to encourage, accumulate
and
channel
individual

;

areas of the Texas and Oklahoma
Panhandle, Texas South Plains

companies, bank loans
tired

and New Mexico Pecos Valley,
Amanllo and Lubbock, Texas, and
ca's growth. I am also proud of Roswell New Mexico, are the
the fact that The Equitable is one principal cities served.
Industry
of the industry's leaders both in in tne area includes oil and gas
size, in its efforts to encourage F™""?
? i11? uein.g an
individual savings, and in its di.brPotash mining,
rection of these savings into pro- food]processing chemicals, carbon
ductive enterprise throughout the
af*HniiHiimf
the region
landtfm
gri prnin
ctiii?mnnUont
savings

into

productive investment and thereby aid in Ameri-

i d U dl

increases

re-

1957 and no further sale is

ticipated

stock

until

fiscal

be issued

may

1962

on a

an-

when

l-for-20

rights basis, it is forecast,
Th.e comPany is optimistic regarding continued growth. Resi-

acre-

dential and commercial sales

pro-

cess<SiSso00! i? eo<!Spm®-*u f*ceeded
P operties but these have 1958 sales by 29%, with the corn-

one^exrention °mwith

Winfield Riefler, formerly Assistant to the Chairman of the
Federal Reserve Board, recently
has said:
jp:.'C-r
"Inflation
is
the
enemy
of
growth, particularly when there
is public expectation that the pur-

irrigated

being
funds.

new

e_'
,j
; motion programs produced good
1 he company s electric revenues results in fiscal 1959, with sales
are about 32% residential and of electric ranges, clothes dryers,
nirai, M% commercial, 31% in- water heaters, and dishwashers
dustnal and 15% wholesale.
It exceeding the previous year by
originally inherited from prede- more than 7%. Sales of commer-

long sustained.

(1). Because

irvLS

-nvAfanfini

the

in each calendar year but since
1954 less equity financing has
been done. Common was last sold

•

-A

with

earlier years of the postwar period common stock was sold early

Southwestern Public Service, with the sale of $10 million bonds to
revenues of over $51 million, sup- two insurance companies and later
Pli(rs electricity to a population arranged the sale of $5 million
estimated at 831,000 in adjacent preferred stock to four insurance

They

the

■•*■■■

security
And they

pany having the third best sales

virtually all electric

ness

able size m the United States. It
is is
ennstruchon of
growth utility. During Medallion Homes and has som®
the decade ending Aug, *31, 1959 300 heat pumps in its area despite
revenues: gained 183% plant ac- the competition with gas.
■
count 187%, ]kwh sales 214%, caThe company is earning about
,5..
Southwestern Public Service
;

?. yRlca

6'2% on net property, the rate of

"7%.

in-

fiprijnnjiT
personal cannot be siistciiiicd 'for long "when
cannot be sustained for long when

and
and

Corporate

I I I

Southwestern Public Service Company

proud to say that the
life insurance companies are exam

hamper our economic freedom chasing power of money will conand interfere with economic pur- tmue to decline/Inflation impairs
suits that stimulate growth.
growth:
A

devoted wastefully to the production of crops for'which there is
no

sectors by

and inelude in addition to farm price
supports, tariffs, import quotas,
arbitrary interest
rate ceilings,
barriers to the mobility of labor
and capital, administered prices,
and
featherbedding.
All
these

tech-

present

private

Drags

economy

not

it.

reverse

under

ways

can take
climate

pil-

grims. The trend continues to this
davr Everv

the

MMV V XvX XIIjU

The success of our free enterprise system depends upon continuing growth while at the same
Others Drags on Our
time maintaining a reasonably
Economy
stable price level. The mainteare
many
alternative nance of price stability is essential
which the government otherwise economic growth will
the lead in providing a -not be sound and consequently
conducive to economic will be both irregular and not

Lists

country

stimulate

government

removing road blocks some of
which it alone has contructed."

re-

quotas and
regulations.
of the popula-

percentage

been

vprv

can

the

growth

are

maxi-

acreage

will then argue. "Yes
be
controlled
by

some

marketing

other bureaucratic

tion

farmers

in-

can

taxation
but ' in
so
doing
you
will stifle growth." I would reply
that
there
are
alternatives
to
control of inflation by taxation,

get

successful

goods

without inflation if spend-

inflation

cor-

still

help

provide

the

possible by

for American families.

produce

Seous taxation.

least need Fedthe lion's share of
appropriations.
And
worse

eral

dollar.

and

inS in other sectors of the
economy is reduced by coura-

that

porations

stitutions

our

crease

supported prices. The 2V2 million
successful

and

services. Federal spending

be-

(Federal,
private inbusiness firms

local),

OT71/^T TT^ TmTT^f^

l^Hj( i\

individual thrift, sound fixed debt
obligations
efficient savings in¬

capacity

can-

little

sell

all

term investment made

must in the aggregate exceed

storage

program

and

infla-

For

spending

government

dividuals

revolution—a

pattern.

occur,

state

consisting
of
large
scale power machinery, improved
seeds, fertilizers, insecticides, animal nutrition and irrigation.
not be aided by a Federal

units

revolution

and

spending

our

tern. They are in fart
a

™

13 3%
—

Rainfall in the

JnHv

aver?

area

liberalized

adented

a^jed about siightlv ; beiow normal but
normal but temperatu
were

deoreciation

tax savings are normalized,

De^nite

the

romnanv's

ranid

HCa jSth tprog^am of ,F'?d'61,31 more flexible mach £o° hl|h' A
mTecLseTfo^tCTS^rmls which retarded irrigation and air growth share earnings had a
spending that needs complete re-, tax ra£es are and realistic depre- '" (2) Because. fosters
the^ s- conditioning sales, although they rather mediocre record of gains
orientation. By training and en--ciation
policy is needed and measlatip®c,to ars 1949.54 but in
and impairs were well above the previous during the
\
couraging farm people to accept
must be taken to encourage
^quality of the managerial and year Construction activity con- the past five years earnings have
non-farm ]obs a sizable reservoir,
,

ures

be tapped for
elsewhere in the

manpower

useful

can

growth

economy. /

;

income

from

unregulated
these

basic

relatively

are

Only

and

the

commodities

so-

surplus

problems. The dead
weight of government surpluses
that overhangs the market must
removed

flexibility of
Offers
Tt
It

•

restore

prices.

for increased ^investcapital goods, education

can

increase

and

the

for

our

the

rate

tax policy

rate

of capital

growth. When
tax reductions

ing

By changing

ao'i^lslons on whlch tinued at a record level, with
Stow"" Isi based
' building permits in the 16 prinW because it distorts tne sav- cipal
cities
served
increasing

of saving
formation

investment

process

f
that tu
the

fi,

recommended

would recommend that
sition
ket

retained

sup-

during

get around

I would

suggest

giving the reducti0n of the 52%
corporate rate high priority ratThis would strengthen incentives, and much of the tax-

ingP

than

to.

formation

capital

through

re-in-

into

largely

Rejects Inflation to Spur Growth

also

that

reiect

inflation'

Stautate
the'key

available for orivate consumption

mar-

free

societyj investment and

recent

years rather
growth
depend upon, voluntary
-1910.-14
saVings—savings accumulated beThey should serve cause thei consumer has, of his
floors, not as profit own volition decided not to spend

parity concept

stop-loss

incentives.All

efforts

control

some

his money. To form

production

quoto^or^^uiateid.

acreage
eliminated.

should

through
restrictions

should
any

may

from

receive

be
1 t

the amoun
corporation

farmer

one

1 i

Reasonable

placed

necessarv

Xnvesfcent to

growth

contention

the

growth

investment

—

within

framework

40%

compared

with

the

cal and monetary policy.

the

govern-

capital for

mPnt>

our

iarge

-°*

economic develop-

need savings

large

savings; we need savings institutions
and we need to have the
to

means

lend

and

imnaired

permitted

expanded

into

might

temporarily

production
can

and
be

well

until

market

our

require-

brought voluntarily

balance

proper

sllghtly; however, the drop

fluctuate

freely,

contention

that any
Federal spending

increase

deemed

necessary

management of the public debt.

Summary
"Now to summarize briefly.
The points I have tried to

tablish

are

issue of

borrow

our

great debate

accelerate

the borrowing of money
evidenced by bonds, notes or doliar obligations, has always been
and always will be a vital financDebt,

an essenimportant feature of our
economic
growth.
Our
present
tial

and

standard
eral

offset

COuld

referred

to.

subsidies
to

Elimination

for example,

or
a

by
to

use

farm

enable

would

individual

the

structure

ings in

the

alone

reduce,

more,

in
Federal
wasteful types

decreases

positive and useful way.

living

and

our

gen-

have

debt

been

achieved

financing;

borrowing of

that is
and the

money,

sale of bonds and notes.

And I might add that the profits
tax-of the entrepreneur invested in

much as 12% or
these same sav-

But for the purpose

have

without
the

economic development never

all rates

income

as we

se?vld

cities

whether

one

of this dis-

equity capital could never have
been realized, certainly to the
degree
that
has
happened
in
America, if it had not been for the

replaced

of more governmental di-

rection and control.

land farmsteam

gen-

placed®n slrv-

was

expenditures

agriculture,

pol-

our

such

veterans,

tially curtailed.
is

road

favorable

free

tinue

for

other

Federal

and

tax

create

climate

system

produce

ever

$19 million in fiscal
they are expected to averabout $20 million per annum
the next four
thp

five years,

rOTnnflnv'«*

fina"lJle°fha%£™K
Institutions

the

vember

Comnanv

senior

Last

will

growth.

our

Over

sented

welfare

the

is the first
this

head

known

collo-

"passing along the hat"
Troster, Singer
retiring commander preto Miss Honl a new "Com¬
as

Troster,

mander's"

Legion

The

cap.

presentation took place at Federal
Kali
Memorial Building at Wall

?nd

Nassau

Streets

No-

negotiated

vember tne company negotiatea

•

Daniel

uaniei

Whitsel

Opens

wnusei wpens

111—D. C. Whitsel &
Co. has been formed with offices
CHICAGO,

the

years

it has served

well, -at 29 South La Salle Street to

en-

Let us make certain that we know
where we are going before casting it aside.

securities business. Officers are Daniel C. Whitsel, President and Treasurer; and V. C.

■■

Whitsel, Secretary, jvlr. Whitsel
wa^ formerly with Baker, WaL'ih

con-

elected

250 member Post.
In a ceremony

about

Commander,

active

^atrs of the Lefion

i960;

M„ph

instaUed

has
as

™o™|

woman

quially

over

Honl

Commander

and

Oliver

substan-

savings and
aggressively

blocks

business

enterprise

policy to encourage
investment..
If
we

Pollv
n»

worker

expenditures
approxi$17 million in fiscal 1959

Especially needed

reorientation

eliminate

and

subsidies be abolished

The

mated

age

As responsible citizens

icy should be to urge that Federal
spending be directed into growth-'
oriented channels and that non-

growth

ISSrtaS^ Legfon
Miss

areas

comoanv's 12th

era«ng staUon

and

Po^t TllSfal S
A Ubl/ 111&UW1&

This

»«,7red

struction

have known it will continue

TiPfflOll Wall St
VVdli UU

.„

our

TTT

•

serv

average raintau assurea

ing and irrigated
The

pnCe~eam"*

24 3

mgs ratio is 24.3.
ihe entire

feL btth^n Sry
key

time

We witness

(2)

gMj

Based on estimatea

rnS^ioYs

tin™ g !Lr^infpdf
ab°ve

in lr-

the heaviest on rec- J-ltl^lUll

largest

20
es-

the following:

Economic growth is

(l)

Afall Ler

ice area was

V'-'-'gi

■

„

the growth rate can be more than

spending

2-for-l split
Earnings for

«%
the B4C dividend rale
yield of 3%.

F^u):n revenues

the
Treasury
Department
should be given a free hand in the

ing tool and therefore

(after ad-

ig64 haye been forecast at about
$1.55, indicating an annual rate of
gain of nearly 8% per annum,

declined

should

„

ments

compared

1959

justment for the
earlier this year).

srfeswaaaes

rate<?

intere-t

and

sums

reserve

$1.15

cer-

wrea

servation

7%.

S^^nng ,fis?.al 1960,som« $?V " Dividend payout is expected to
?0°'000 ^°Vld b® sPent on lnstal" continue around 70%. The divilatl0nS at these baS6S'
dend rate was i"^aa?d
the
' For the fiscal year iust ended 15th tim? ln. 18 year? ^

chniiM

approximate

with 99^ in fiscal

four installations served by the
Company, and it was estimated

f hk e'ntTrnrise m°W in ,°rd,er tot transfer £hese as to whether free enterprise or
June, rising capability to
hi efven vnlatfonal savl"gs mt° long-term and pro- the Federal Government can best 926,000 kw. Peak load was 771,guidance to help® Icure off- arm- dUCtlVe enterpnse'
sti^ala'«
20o'kw in 1959 and was expected
fmnlovment f inally, the soil c™Importance 01 uem uapuai
3) The e.hot1.ce we way of "i" to reach 831,000 kw in 1960. Conmake life
employment. I LhF the soil con
impoitance of Debt Capital
determine whether
t!

heMed

of sound fis-

ehtio Reserve Board should not
production of goods Federal

ment

tran-

anticjuated

about

gain

average

1960 earnings-She expected

<Aug- 31. 1960> £inal data are not and another increase in fiscal 1961
yet available but in the 12 months would seem warranted by the curtainly are in a sorry state if it is ended J„une 30 "venues gained "nt rise in earnings. Ata 1«
In a communistic society, the generally believed that it is safer over 10% and earnings for com- of.common stockdwdendsln. fissaviilgs necessary for investment to speculate than to save! We be- mon stock were up 17%
With calI 1959 were non - taxable and
and growth are forced savings— iieVe the Federal budget should the heavy rainfall and the cool about 11% is estimated for fiscal
would

saving

period but geared

prices

en-

C°M? BeC°a^
the
Previous 12 months period. Exro^rv's noshion in int^national Panfion programs were announced
fS?s position m international by the Alr Force tor each of ltg

srawwvan srva? as^rsst"
price
ports

ana

shown

Fiscal

vestment.

Gradual Farm Program

not

research.

and

have government interference and

necessary

ment

agriculture

unsupported

there

problems.

called

■

all

production

areas

few

•:

Four-fifths

.the'accumulation of. the sayings

Amer"Caan
u.

c.,

Bar

Aug.

Association,

30,

Washington,

gage in a

& Co.

(1074)

The Commercial and Financial Chronicle

STATE OF TRADE AND INDUSTRY

reporting mills

low; shipments
and

Continued from page 5

probability of
steel

strike threat

Inroads of other

materials, long
talked about in metalworking, are
showing significant results.

™a.s affected
strike in the

the

steel

increase of 13,365

vania

for

This Week's Steel Output Based
On 52.7 % of Jan. 1, 1960 Capacity

Institute

rate

the

will

Steel

and

that

announced

erating
panies

Iron

the

op-

steel com*93.6%
of

average

steel

capacity for the week, beginning Sept. 12, equivalent to 1,503,000 tons of ingot and steel castings

(based
tion

weekly produc-

on average

1947-49)

Tti6S0

.figures

compared with the actual levels of
*87.2%
week
.

and

beginning Sept. 5.

ginning
to

1,401,000 tons in the

Sept

49.2%

Jan.

196()S wis

1960

annual

A month ago

(based

tion)

was

1,558,000 tons. A
tual
at

time

the

industry

S&SMS

Trunk

weekly

Is based

production

for

aver¬

1947-49.

Auto Industry Turned Out 6,011,688
1960 Models—A 3-Year High

Western

Dodge
duction

1960

posted
count

model

tinp

There

highest
years

prof

the

cniH

said

the

«7 ft<7

Dodge

Dart

fini

unite

27.1%

improvement

35.1%

above

the

the week

had liabilities in

149

cars

55 class

traffic

the

pared

rail-

week

current

59 Dne

com-

year

Wholesale

iype
and

ago

of 1959

truck
~

Over-all,

the
auto
industry
6,011,688 1960 models
—a
three-year high — exceeding
5,568,046 in 1959 and 4,260,039 in
1958 model years, Ward's said.
turned

out

the

6.8%

two

compact makes

Even with one less

were

the

working day

^dTs°afidthcearL^duDc?fonh^dtahye
7-3%

toe previous week of this

manufacturers

estimated
with

51,390

in the

built

55,119 cars compared
last week and 24,364

same

factors

the

seemed

improved

the

comparable

period

wholsesale

the

down

side

were

toY6ii-~ and. lard.
The
ine

138,000

the

comparable

ago period.

year

Wholesale
wnoiesaie
resents

about

&
&

rood
Food

the

i^rice
Price

total

sum

were moving freight not normally
handled due to the strike on the

meats

not
1

inaex repIndex rep
of the price

pound

and

A number °* eastern terminals

general

law

chief function

trend

....

use.

ind^v

01. nyinf

foodstuffs
toodstutts

raw

ros+-of-living

•

eral

Its

inuv-x.

to show the gen-

food

prices

The

n«,rA

?,U^ w«t%

PIW„V

tho

^ ' 0wtr

There

was

Latest

Week

moderate

!!^!l?Sn0

clines

ygept ^w*ek
^ iri^*•''

tho

^itute^ Output

725.0M.SS

was,

kAS „lr ^ 4^Thnvl ^hat^T'th0
JfL

comParabie 1959 week,
Lumber
Ended

Shipments
Sept.

3rd

100)

with

Sept.

266.59

for

Week

1.8%

12,

week

the

tin.

„

Good

domestic

from

prices

purchases
were

and

exnort

week

rose

huv

earlier.

appreciably

moved

noticeably

and

corn

prices

trad-

turned

moderately
corn

varied

from

levels

the
the

tne

New

+5;

England,

Mountain, and Pacific Coast 0 to

Pacificj Coast 1 to
0
Central

4.4.

West

To'

North

A
V,
South

^.3.
1

past
Fast

7rJji

North

Central

—6

West

operations

Wixom,

Meanwhile, inventories
in

cars

dealers'

hands

of
and

new

transit

dropped to 887,800 units
Sept. 1, Ward's said. The drop

new

the

16.4%
of

car

Aug.

stocks

SniQRnlnTS tvf we

end^d Sept. 3, I960. In the
week

Sept. 9.

was

level

8.3% under

968,800

below the Aug. 1

and

stockpile

to —1

5 10

Sales Down 1% From 1959 Week
nnt>ri

sales

Loading of

freight for
Sept. 3, 1960,
totaled 577,090 cars, the Association

week

American

nounced.

29,284

revenue

ended

This

cars

was

Railroads
an

5.3%

an-

increase of
above

the

remainder

town

below

identical

mills

production;

were

new

export

was

markets,

es-

or-

Supplies at
ened

moved

sugar markets

somewhat

and

tightprices

period last

?£

year.

t!
In

the

pre-

9^ f(?f Aug' Jll
4% was i eported. For

tbe

ZTrLZtf

were

5.9% below production.
with

ing

of Har-

areas

(WJWL), Del.

Qne

tke

presently

operated

Pl'

Perlod showed a 2%

ASinff

adjoining Canadian

The

other,

T>a

According to the Federal ReSystem
department
store

Tove
M the

bined

ar.eas of Pensacola.
and Mobile, Ala.

°n July 12' 1960 Rollins

sub3ect to approval by the Federal
Communications
Commission,,

combined

VHF

and

serving

of
Charleston
broadcast station

the
r.

areas

ai a„7 01. Y;narleston

adr|ition

its

broadcasting

Fla

year enaea, April JO,
1960 'he ™";Pany sported reye-

°f $406-136 from the sale

radio-station, compared with
"
$2-673,223, and
$768,810,: respeca

lively;-for-the 1959 fiscal
Capitalization at

year.:

July 15,

1960,

adjusted to give effect to the sale
of the 75 0oo shares, consisted of

of funded debt, 110;000

shares of

common stock of $1 par
and 815,000 shares of class B com-

stock of $1

m.on

tainpd

par.
Wavne

President,

John

and

Shares reRollins, the
Rollins,

the

and 23;2%' respectively, of

ending
was

•

Sept.

reported

over

in-

the 1959

'
q

C°mm°n

(jreO. f Ogg GO.
TT

Hf)S

AdmittPf

xiuiiiiuovu
rinlrlf VlWQl'f Q
VJU1U. til
„

„

W dlLt5'

GhlCagO AnalyStS
oil

television station
broadcast'station

radio

fh^lke^eriod TaTyeT

period, and from Jan. 1 to Sept. 3,
was a gain of 6% above the

con-

trac.ted 1° Purchase for $2,598,000

selling stockholder, will represent

there

-p.

Fla.,

?ity f°r ^5?

preceding week ended Aug.
27, sales were 11% above the same
period last year. For the four

^-1

(affilithe corn-

serves

serve

Sale^ in

areas,

WEAR-TV

ated with ABC),

f $1,577,256

OlltlllSf

BOSTON, Mass.—Clyde M. Goldthwaite has been admitted to part¬

nership in George P. Fogg & Co.,
part¬
ners are
George P. Fogg, Jr., and

201 Devonshire Street. Other

David C. Fogg.

Up lpy. Qj MpvPH

•

06 iV1C J

rp
^

A rim if Momllo

-Fi-tlllllt IVlcI Ulld

EAST ORANGE, N. J.—Heller &
Meyer, 520 Main Street, members
GREENSBORO, N. C. — Richard of the New York Stock Exchange,
F.
Boyles has joined the Sales on Oct. 1 will admit Patrick F.
Department of McCarley & Com- Merolla to partnership,
*

•

Joins lVlCL,ariey>

slightly higher; sugar trad- pany, Inc., Wachovia Bank
Bldg.
steady.
Coffee
prices
previous climbed slightly, despite continued
Witk I airllnw ^ Cr*
week ended Aug. 27, 1960,
pro- dull
trading.
Volume
in
cocoa
vvun Laiaiaw ct CO.
duction of reporting mills was picked
up at the end of the week
(special to the financial chronicle)
0.5% below; shipments were 5.8%
helping
prices
rise
moderately BOSTON, Mass. — Willard B.
below; new orders were 8.7% be- from a week earlier.
Simmons has been added to the
low. Compared with the correThere was a marked rise in hog staff of Laidlaw &
Co., 19 Consponding week in 1959, production trading
during
the
week
and gress Street.
ders

the

serve

television stations, WPTZ-TV (affRiated
with
NBC
and
ABC),

credit

the Federal Reserve Board's index
for the week ended Sept- -3' 1960'

rose

dipped somewhat. There
strength

of New-

^'nue °I $3,761,011
and after-tax
a earnings 0f $374,513 plus a special

store

Wholesale

pecially the Far East.

year-to-date, shipments

reporting

3.1%

production.

areas

?r.,

f.?,r

15 days production at the current
a+n (f/0!8 st,ocks TeiT €Ctuiv-

stations, WNJR,

Okeechobee County

9?^

Compared

the

prices

stations,

ark> N. j. and New York City. The

„

For the

Freight Car Loadings for Sept. 3
Week Totaled-577,090 Cars or
5.3% Above Same 1959

and

radio

the combined

7'5^°

alent to 51 days

1,062,000 units.

same

new orders of these mills

encouraged

the

stations

television

0*
addition to its Droaacastmto
H*' operations, the company owns
about 8 069 am-es of ranch land in
A?
X
? ra

appreciably.^
CHICAGO, III. —The Investment
purchases
of
flour
Analysts Society of Chicago will
lagged during the week, but prices hold
their fifth
^
bel°^ Production. Un- remained unchanged from the 6 at the Itasca annua] outing 0et
Country club. The
prior
frf
period, export volume m
day wm be devoted to golf folJ*
%
gross stocks, flour was sluggish. A noticeable lowed
by
j"eP°rtmg softwood mills, un- pickup occurred in rice harvest- Tariff to bea roast beef dinner.
announced later
^ orders were equivalent to ing, trading moved up, but prices

car

six

operate

broadcasting

VHF

wholly-owned

and

Soutn

1960

Mich.,

were31 sTbeJ
a® Barometer were 1,3% beBarometer

damage moderately
trading in soybeans

crop

one

serves

—2
4

TraX

some

two

its

own

radio

ancj

\ ;

and

7° and Huntington, West Va.
and Huntington.

Mercury's Wayne, Michigan plant
wound up 1960 model
production
Sept. 6, Thunderbird concluded

Central

•

„

higher,
arrivals
of ievel achieved in the 1959
period
Chicago were limited. Al1
-

though transactions in oats were
Lumber shipments of 443 mills sluggish, prices edged up fraction?
+
+£
OI ™ m/lls ally m line with corn. Expectations

Rollins

subsidiaries

and

Percentages: oouth Atto

supplies
in
some
markets weeks
light. Reports of dry weather crease

the Corn Belt stimulated

fomnLabl^
lyoy

and

infh0e1pTwheatapdri«sP°aavanL
somewhat

Rye

estimates

compared

earlier

and properties.

ot retail

|as^

The

corresponding date

poses,
including the possible acquisition of additional businesses

electric

voiume

rise this

Below Production

Co.

small

noUceabiyThe total dollar

Department

earlier.

year

Were

and

In-

was

mained close to last year, volume serves
the
combined
areas
of
in -used models was still down piattsburg. N. Y.,
Burlington, Vt.

Daily Wholesale Commodity Price
Index, compiled by Dun & Bradstreet, Inc., stood at 267.45 (1930-

277.90

rubber

r«u+

industry for the week
Saturday!

com-

Nationwide Department Store

„

Advances in

am0unt0fPwtrie
hu

endeP

a or

furniture,

the

Wholesale Commodity Price Index

which

company,

vey-Chicago (WBEE), Indianapolis
housewares, linens, and draperies (WGEE), Norfolk (WRAP), Wiloffset declines
in
men's
and mington (WAMS) and George-

level.

week in the general
commodity
price level,-with Tigher prices on
higher
grains, lard, coffee,, sugar, butter,
Uects tonnage handled at more
T
bow
and
steers
than 400 truck terminals of com- hogs, and steers offsetting deoffsetting de-

Electnc

gains

over-

1959 week. Yearin
children's
ap^

its Miadle Atlantic and

re-

^on carriers of general freight
throughout the country.

strong

Bradstreet

r.nimH

per

be attributed to seasonal factors.

ended Wednesday, Sept. 7,
aE retail trade matched the

tsraastreei,^ Inc iantlc
inc.

can
npr

aoiy among carriers.

Dm prior period in the week

comparaoie

Dun
uun

The

Eor the current season corporated in 1948, will use the
through Sept. 6 exports amounted proceeds from the sale of its 75,000
1:0 about 278,000 bales, as against shares for general corporate pur-

this

barley,

corn,

m2 price.

year a§°-

potatoes, rice, steers, and hogs. On

vear

week-to-week gain

cost

the company at the public offer-

reP°rts for 'he vveek. that from,
Dota
years
indicate

week last year.

compact
car
plants
which operated Saturday, Sept. 10.

wheat
rye
oats but,•? b^Sher than a yeai a^,o, a
coffee,'tea, cocoa,'eggs, u°r ^lfn \SPRraTnr- Pe

were

tonnage

past

plants worked four days.
exceptions were the Ford

Only

compared

!FTarle
in

£lf Jth

Most

Motor

bales,

women's apparel, major appliances, and floor coverings. While
scattered
reports
indicate
that
the index sales of new passenger cars re-

it was unchanged
corresponding
date
a

ter, cheese,

01 tae Prevl0us week ot thls year
to

Bradstreet,
Sept. 6, the
on April
19,
Aug. 2 and

ago.

and

000

parel,

and

the

Higher

than that

High

hit

again

1.4%,

year

in the

was

Dun

first

then

from

corresponding week of
1959, the American Trucking As¬
sociations, Inc., announced. Truck

The six compact cars accounted
for 26.2% (1,574,468) of the 1960

industry
total
contrasted
with
9.1% (505,748) in 1959 when only

14,000

to-year

Index

Aug. 9. During the week
compared with $5.90 a week earlier, on Aug. 30, for an increase

K'xaiiSAsKr,tonnage

high,

and

8frartinn-

•

to $5.98 on

rose

1960

tonnage

1960

compiled

0.4% Ahead of Corresponding
Week

Price

Inc.,

Intercity Truck Tonnage Was

Intercity

Food

Returns

^ the corresponding week of
1958.

search Department. The report

with 7,000 a week earlier and 39,-

excess

The Wholesale Food Price Index,

These findings are based on the
weekly survey of 34 metropolitan
compared with areas conducted by the ATA Re-

1960

mated

parable

the

over

1959
run,
recording the largest
percentage gain among U S. auto
makers. Chrysler Corp. built 894,-

703,744 in 1959.

the pre-war

In contrast, small casual-

wholesale
a

than

numerous

year ago.

were

tribute

Ward's Automo-

run,

Ronnrt*

Ward's
pnmnricpd

its

cars or

one or more revenue

cars

Several

Exceeding 5,568,046 in 1959
and 4,260,039
in 1958

dip,

t
CJ
.
y
Cumulative piggyback loadings ties with liabilities under
$5,000
"
for the first 34 weeks of 1960 edged up to 30 from 21. ThirtyAlthough the Labor Day holiday
totaled 359,288 for an increase of five of the concerns failing during beld consumer buying below that

ume

♦Index of production

17,680

were

vir-

was

Lamb

this

highway trailers (piggyback) in toll of 209 in 1939.
the week ended Aug. 27, I960
All
of
the
week's
downturn
(which were lncluded^in •• that centered in failures involving liaweek s over-all total). This was bilities of $5,000 or more, which
a? increase of 2,131 cars or 24.7% fell to 246 from 267 in the previabove the corresponding week of ous week but remained considerand
' ? cars 01
/0 above ably above the IslSfthTs size a

ac¬

,o * **•

earlier.

from

weekly production was placed
356,000 tons, or *22.2%. At

that

age

the

year ago

somewhat

Dun

ceding week."

1947-49 weekly produc¬
*97% and production

'
: ■;

?£^ad £or pubRF ?a)e T? Sept.
99,500 shares of Rollins BroadcastInc-> common stock priced at
^£fri sbare- 9
^be offering,
75,000 shares are being sold by the

of $100,000, up from 33 in the pre-

the operating rate

110100.

trading was steady
declined slightly to 276 in the and
prices were unchanged.
In
holiday week Sept. 8 from 288 in line with hog prices, prices on lard
the
preceding
week,
reported moved up somewhat.

^J^IO 'am or 114 0%^bove the

fof t^veef'sTom-

iolOCK

Eberstadt & Co. and associates

corresponding period of 1959, and

moderately and prices finished on
the upside; salable receipts were

•

13 U.UctbU

week

equal

capacity

IVUillllD

down

of the

7'capac ty is

Slightly

TJrvlli-riQ^ R'flnoof"

appreciably.
higher. Volume in steers expanded
were

loaded with

93,429

the'utilization

Down

Holiday Week

markets Were lim-

some

prices

3%
below the preceding week.
;
There were 10,774 cars reported

and Grand

Railroads,

».

American

below,

ited;

Bradstreet, Inc. Despite
Trading on the New York Cotcasualties exceeded no- ton Exchange was irregular this company
and 24,500 shares by
ticeably the 222 occurring in the week, but prices finished close to John Rollins, who has also agreed
comparable week last year and the prior period. United
States P° ael1 privately to F, Eberstadt
the 256 in 1958.
As well, failing exports
of cotton in
the
week & Co. an additional 9,000 shares
businesses were almost a .third ended
last
Tuesday
were
esti- and 1,500 "shares to an officer of

■

The

2.5%

stocks in

Thursday, September 15, 1960

ures

extent
_

below;

Commercial and industrial fail-

cars or 2.4%

Loadings in the week of Sept. 3,
which were affected by strikebound operations on the Pennsyl-

fighting

are

Failures
in

and

corresponding week
1958.

Business

nationwide

industry,

business and have not stepped up
their own mill buying to any great

Warehouses

be-

5.7%

were

corresponding week in 1959, which"

price increase

9.8%

was

were

orders

new

was

With J. A. Hogle

the

(Special to The Financial Chronicle)

LOS

ANGELES,

Calif.—Roy

Kaifer has been added to the staff
of J. A. Hogle &

Co.,

Sixth Street.

with Holton,

was

507

West

previously
Henderson & Co.

Volume

192

Number 5986

The Commercial and Financial Chronicle

Indications of Current

The

(1075)

following statistical tabulations

latest week

Business

Activity

week

Latest
AMERICAN

IRON

Indicated

AND

STEEL

Steel operations

Equivalent to—
ingots and castings
PETROLEUM

oil

Crude

and

tons)

(net

Kerosene

fuel

Retail

6,784,625

Construction

118,294,000

8,172,000

8,254,000

8,132,000

Commercial

29,200,000

29,487,000

29,040,000

2,701,000

2,746,000

2,492,000

12,774,000

12,733,000

12,S73,000

12,673,000

6,027,000

6,252,000

5,805,000

6,373,000

fuel

193,647,000

Residual

Revenue

CIVIL

(bbls.)

32,327,000

Sept.

153,023,000

148,966,000

134,049,000

AMERICAN

47,297,000

45,309,000

43,014,000

577,090

584,770

594,329

490,884

486,610

487,558

502,859

ENGINEERING

CONSTRUCTION

181,509,000

30,702,000:.;'

Private

;

Sept.

$427,200,000

$604,000,000

$435,500,000

243,600,000

367,200,000

273,200,000

Sept.

183,600,000

236,800,000

162,300,000

110,000,000

Sept.

121,200.000

203,400.000

131,700,000

BUREAU

Pennsylvania anthracite
DEPARTMENT

STORE

SALES

30,600,000

7,790,000
343,000

376,000

__Sept.

___

INDEX—FEDERAL

(COMMERCIAL

BRADSTREET,
AGE

Sept.

steel

Finished

146

—

DUN

(E.

14,941,000

14,622,000

13,109,000

276

288

308

222

Lead

(New York)

Lead

(St. Louis) at_____________-_
(delivered) at

tZinc

(East St.

Louis)

540,600

193,000

176,700

$53,653

•

Total

and

6.196c

Instalment

$66.41

Automobile

$32.50

$31.83

$41.17

Other

consumer

loans

30.550c

Noninstallment

28.675c

:.9.000c

30.525C

28.750c

12.000c

13.000c

T 1.800c

11.800c

12.800c

Service

13.500c

11.500c

FACTORY

EARNINGS

13.000c

11.000c

AVERAGE

26.000c

24.700c

LABOR—Month

(New York)

Sept.

102.250c

102.125c

104.250c

102.125c

DAILY

PRICES
Bonds

Sept. 13

88.85

88.52

89.19

81.13

Durable

Sept. 13

87.86

87.99

87.18

84.54

Nondurable

92.64

91.91

88.81

90.06

89.51

86.65

Hours—
—

All

84.30

Durable

81.17

80.32

Railroad
Public

Group —l—

Utilities

Sept. 13

84.94

85.20

84.43

84.17

Sept. 13

Industrials
MOODY'S
U. S.

Group—

89.37

89.51

88.27

83.91

89.51

38.81

3.69

3.61

4.56

4.62

sept. 13

89.51

xSept. 13

3.65

Sept. 13

4.57

YIEI.D

Government

Average

Group

BOND

;

________

DAILY

__;

corporate——__—__x_

-i

■

4.39

Public

Utilities

Industrials

MOODY'S

Production

Unfilled

OIL,

5.09

5.16

Banks

4.79

4.77

4.83

4.85

Insurance

4.46

4.45

4.54

4.87

Average

4.45

4.50

4.66

361.9

362.7

365.4

312,762

318,170

340,650

374,535

____

—

Sept.

326,644

313,476

320,464

335,940

430,767

477,251

550,083

Sept.

(tons)

AND

at end

DRUG

PRICE

Sept.

of period

REPORTER

418,445

•

AVERAGE=100
FOR

ACCOUNT

40.1

40.4

40.5

39.4

39.5

39.8

$2.29',

$2.29

$2.23

*2.45

2.39

2.08

2.01

Sept.

109.77

109.68

109.72

——

AVERAGE

—

YIELD—100

August:

Tel.)

Tel.

Amer.

110.20

2.74

3.60

3.19

STATES

COMMERCE)—Month

July (in billions):

♦$406.1

$407.1

——

$386.9

•

274.6

*274.0

—

♦112.9

109.3

—__

72.1

•

261.5

112.6
88.5

—

86.9

*89.2

income

—-

69.0

41.1

37,8

•47.8

45.4

11.0

—

72.2

41.3
48.6

industries
labor

Other

3.57

2.93

3.50

Government

MEM¬

4.04

2.87

——

Manufacturing only
Distributing industries

■;

3.89

4.00-.

—

(200)—

4.59

3.77

3.41

(214)
———

(10)_______—

2.96

5.75

3.64

—

incl.

3.49

5.72

(125)

(15)—

Service

TRANSACTIONS

40.2

income
Wage and salary receipts, total—
Commodity producing industries

ROUND-LOT

80.00

40.0

■

;

Total personal

INDEX—

96.80

2.44

(DEPARTMENT
of

*98.98

—J.

—

(25)(not

■'

81.95

PERSONAL INCOME IN THE UNITED

384.4

sept.

.——Sept. 13

——

activity

orders

PAINT

1949

4.99

Utilities

ASSOCIATION:

(tons)

(tons)_

Percentage

4.84

PAPERBOARD

received

—

COMMODITY INDEX

NATIONAL
Orders

Group

4.67

Sept. 13

'Group—

4.60

Sep;. 13

Railroads

Sept. 13

Industrials

4.66

4.98

Group

4.50

4.45

4.62

Railroad

4.28

•

82.16

STOCKS—Month

COMMON

4.79

4.23
4.41

$89.13

$91.60

97.84

____

goods

4.25

2,929

—

goods

WEIGHTED

4.41

4,407

39.8

goods .—J-

Durable

MOODY'S

3,954

4,628

$91.14

;

Hourly earnings—
All manufacturing

86.65

DEPT.

___.

Nondurable goods

'',/%//;

AVERAGES:

Bonds—

goods —

Nondurable

9,183

3,186

manufacturing X__

86.51

2,517
11,290

HOURS—WEEKLY

,r.

82.40

9,134

July:

87.45
'

4,321

4,506

goods

82.52

87 18

12,135

AND

Weekly earnings—
All manufacturing

AVERAGES:

___

11,966

.... _____—

ESTIMATE —U.

90.06

credit

3,170

13.000c

corporate—

10,537

credit

26.000c

BOND

2,824

10,687

Single payment loans
Charge accounts,,-

13.000c

Government

2,852

loans—

....,

32.600c

92,35

15,923

10,194

4,290

moderhization

and

36,757

17,807

10,202

$48,047

41,362

17,946

goods

$53,497

41,687

___

32.600c

13.500c

credit

....

...

26.000c

term

credit

32.600c

Sept.

717,300

July 31.

credit.

Sept.

intermediate

consumer

$66.41

Sept.

Average

____

777,700

SYSTEM—REVISED SERIES—Esti¬
short

millions

MOODY'S

$1,495,000

168,000

Straits tin

$1,859,000

___.

(primary pig. 99.5%) at_.
.

$88,800

municipal

Aluminum

at—

$93,100

EN-

—

Month

—

731,000

6.196c

—

Zinc

24,600

726,000

$66.41

Sept.
Sept.

——.

12,400

25,300

924,000

Sept.

$51,800

*12,900

$2,005,000
1,081,000

and

mated

CONSTRUCTION

NEWS-RECORD

Sept.
.

*$54,800

25,100

894,000

Personal

;

$54,300

!___

,____

965.000

SERVE

Electrolytic copper-

at_

.J
__

construction.

Repairs

July

CONSUMER CREDIT OUTSTANDING—BOARD
OF GOVERNORS OF THE FEDERAL RE¬

QUOTATIONS):

refinery at—
Export refinery at——___________

COM¬

omitted):
construction

Sept.

construction

Sept.

Domestic

DEPT.

—

SERIES —Month

dollars):

Federal

148

14,216,COO

__i.

$51,197,000

12,900

Sept.

$126,450,000

(000's

Public

451,000

128

:;V 144

PRICES:

lb.)

(per

August
Private

Sept.

Pig iron (per gross ton)—Scrap steel (per gross ton)
PRICES

INDUSTRIAL)

3,147,000

$61,732,000

.____,

State

INC

COMPOSITE

—

ENGINEERING

RESERVE

Sept. 10

AND

11,328,000

22,597,000

Total U. S.

(in 000 kwh.)

output

GINEERING

7,345,000

362,000

;

10,700,000

7,790.000

•

Electric

METAL

33,400,000

7,590,000

INSTITUTE:

ELECTRIC

FAILURES

IRON

62,400,000

-Sept

(tons)

17,052,000

18,613,000

$92,300
CIVIL

MINES):

(tons)

SYSTEM—1947-49 AVERAGE=100
EDISON

NEW

(Millions

99,300,000

municipal

(U.

28.497,000

1,071

228,800,000

Sept.

OUTPUT

5,078,000

3,993,000

$338,800,000

Sept.

Bituminous coal and lignite

$14,592,000

15,632,000

11,073,000

________________

liabilities

INVENTORIES

MERCE

Wholesale

Federal

COAL

1,334
$41,111,000

20,470,000

___

liabilities

Retail

construction

and

1,146

5,116,000

Manufacturing

construction

State

100

$21,080,000

—

service

liabilities

BUSINESS

construction

Public

137

103

liabilities

Total

ENGINEERING

—

518

213

number,.

liabilities

Commercial

31,354,000

NEWS-RECORD:
Total

113

192

___

service

Construction

547,806

cars)—Sept.

203

110

680

102

number

(no.

228

573

______

number

Wholesale

57,507,000

Sept.

RAILROADS:

173
106

—

163,198,000

Sept.

at
at

freight loaded (number of cars)
freight received from connections

Revenue

190,680,000

33,884,000

;

(bbls.)

fuel oil

ASSOCIATION

188,665,000

Sept.

oil

number

Manufacturing
Retail

Sept.

(bbls.)

Distillate

Total

1,932,000

Sept.

Residual fuel oil output (bbls.)
Sept.
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
:
Kerosene

Ago

29,450,000

Sept.
(bbls.)

Year

Month

July:

number

6,836,710

BRADSTREET,

number

Sept.

output

Manufacturing

6,846,310

(bbls.)

oil

356,000

G,823,860

output (bbls.)

Distillate

'.*•

•

1,558,000

BUSINESS FAILURES—DUN &

IlSept.

(bbls.)

of that date:

are as

Latest

12,6

Sept.
average

either for the

are

Month

Ago

Wholesale

(bbls.

average

of quotations,

cases

Year

54.7

*1,401,000

§1,503,000

Sept. 17

output—daily

gallons each)
Crude runs to stills—daily
output

Ago

*49.2

INSTITUTE:

condensate

Gasoline

Month

Week

§52.7

Sept. 17

Dates shown in first column

that date, or, in

production and other figures for the

cover

INC.—Month

Steel

AMERICAN

Week

INSTITUTE:

(per cent capacity)

month available.

month ended

11.0

10.2

1
1
'
'

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions of specialists in stocks in which registered—

Business

and

35.1

*36.2

36.3

proiessional—________

12.1

12.2

12.5

12,4

139

13.9

13.4

27.1

26.8

23.5

28.8

28.5

26.5

"
-

; V

Total

purchases

Short
Other
Total

Other

Aug.

sales

Short

312,890

;

1,695,920

1,978,140

1,650,590

2,413,010

1,963,480

income

19
19

Aug.

430,400

393,960

Aug.

—

37,200
207,020

PRICES

244,220

*•

nonagiTcultural

Total

234,620
252,320

72,320

17,700

380,950

359,000

RECEIVED

TURE— 1910-1914

651,562

519,220

542,103

91,480

112,340

85,300

653,115

594,465

495,750

624,806

Commercial

744,595

706,805

531,050

717,898

purchases
sales

EXCHANGE

AND

Odd-lot sales by dealers
Number of shares
Dollar

value

Odd-lot purchases

3,138,295

3,324,982

2,763,760

2,664,413

532,990

619,530

415,890

2,657,535

2,953,555

2,380,960

2,505,378

3,190,525

Oil-bearing

3,573,085

2,796,850

2,921,028

EXCHANGE

COMMISSION

Dollar

value

Round-lot sales
Number

1,576,133

1,485,488

•

$74,089,379

$72,910,673

■Aug,

8,678

Aug.

STOCK

EXCHANGE AND
FOR

Total

ACCOUNT

SALES

ROUND-LOT

1,417,773

Aug.

$66,665,560

.Aug.

419,590

419~590

1,432,153

1,426,451

12,649

1,316,374

1,217,254

8,432

sales

Other

THE

STOCK

MEMBERS

$63,256,848

$61,000,891

446,890

355,920

314,340

446~890

355% 20

597,680

498,320

527,010

314% 40

554,830

—

NEW

SERIES

779,530

517,110

—\ug.

13,478,450

;

DEPT.

13,037,280

12,130,920

119.4

———Sept.

119.3

119.4

—Sept.

87.4

86.3

87.1

88.1

.Sept.

107.5

107.8

107.1

94.9

96.6

98.6

128.3

than

of Jan.

farm

and

foods

1,022,000 barrels

—Sept.

of foreign

crude

128.4

128.3

runs!

§Based

new

annual

capacity of 148,570,970 tons

against Jan. 1, 1959 basis of 147,633,670 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
1,

1960

*1,313,000

$1,467,800
1,248,300

$293,000,000

$295,000,000

288,333,271

290,395,608

134,189

110,781

$288,829,078

$288,472,460

$290,506,390

404,188

404,548

415,874

$288,424,890

$288,067,911

$290,090,515

4,575,109

4,932,088

4,909,484

$288,829,073
5,894,294

$238,472,460
-6,988,292

$290,506,390
6,617,473

$282,934,784

$281,484,168

$283,888,917
3.072%

July

—

obligations

gross

net

owned

the

public debt and guaranteed

obligations
Deduct—Other

Balance
under

UNITED

total

face

public debt obli¬
debt limitation—,__

outstanding—

amount

above

STATES

obligations

authority.
GROSS

August
funds

issuable
—

DEBT DIRECT

GUARANTEED—(000's
General

—:—

——

outstanding

not subject

Grand

128.3

—*——

Ulncludes

*$1,738,100

1,119,000

$293,000,000

public debt,

gross

gations

:x__,—__

other

140
248

IMPORTS

——________

time—

any

Total

figure.

316

148

August 31 (000's omitted):
amount that may be outstanding

face

Total

11,623,260

14,148,210

14,345,700
15,125,230

12,520,170

Aug.

—

foods

commodities

305

248

STATUTORY DEBT LIMITATION

GOVT.

507,660

94.7

'Revised

508
253

242

288,672,218

AND

CENSUS —Month,

Guaranteed

(1947-49=100):

products

Processed

148

EXPORTS

Imports
U.

Total

TRANSACTIONS

—

PRICES,

302

248
234

Outstanding—

STOCK

(SHARES):

commodities

Farm

—

232

203
494

(000's omitted):

Commodity Group—

All

—_—

eggs.

STATES

—As

-Aug.

——

sales

LAE OR

All

244

——

1,206,960

$66,596,684

and

BUREAU

10,294

1,307,942

1,419,504/

669,760
Total

222

493

_______

round-lot sales—

WHOLESALE

216

•

sales—;

purchases by dealers—Number of shares

ROUND-LOT

199
206

$1,699,200

Poultry

UNITED

-Aug.
TOTAL

_u——w,——

$74,056,085

.Aug.
Round-lot

—_____________

199

239

240

1,455,720

$72,799,692

sales)—

____——

by dealers—

161

194

156,859

1,483,187

.__

shares—Total

crops

animals

Meat

Aug.

———.

226

213

—

products

Dairy

Aug,

sales

158

249

—

sales

other

289

239

Tobacco

Aug.
short

Customers'

211

251

235

Food

STOCK

by dealers (customers'

223

156

hay

221

247

Potatoes

241

236

238

415,650

(customers' purchases)—t

Customers'

15:

fresh

vegetables,

grains and
grains

.__—___________—_Aug.

—

July

265

Aug.

SPECIALISTS

SECURITIES

—

products

Aug.
.

DEALERS

100—As

371.0 V

226

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

farm

♦389.3

INDEX

Cotton

;

All

Feed,

>____
—

________——

—

AGRICUL¬

93,090

FARMERS

DEPT.

7.9

9.3

390.7

income

NUMBER —U.

604,095

Total round-lot transactions for account of members—

Other

9.3

Aug.

Short sales

income

251,800

Aug.

sales

Total

interest

Total

—

persons

payments
—___
contribution for social

453,270

50,500

308,500
•

254,420

floor—

purchases

Other

Personal

1,958,910

Aug.

the

Rental

Transfer

1,673,550

2,086,930

Dividends

285,360

434,870

1,870,510

Less employees'

sales

transactions initiated

Total

1,990,120

Aug.

sales

2,243,020

floor—

sales

Other

2,140.240
".■> 391,010

Aug.

off the

purchases

Total

Aug.

—

sales—:

Total

Aug.

transactions initiated

Other

—

sales

AND

omitted):

31—
balance

Net

debt

Computed

——

annual rate

3.179%

3.260%

]
a

(1076)

The Commercial and Financial Chronicle

Thursday, September 15, 1960

...

ADDITIONS

* INDICATES

Now

Securities

Registration

Del Electronics

(S.

Common

Corp.

Corp. of America

(Bertner

Safticraft

Common

and Earl Edden

Bros,

Inc.)

Co.,

and Sandkuhl & Company Inc.)

Built

Industries,

Aug. 29, 1960

Inc.

September 19

(letter of notification)

150,000 shares of
common stock (par 10 cents). Price—$2 per share. Pro¬
ceeds
For acquisition and development of land and
operating capital. Office—1201 W. 66th St., Hialeah, Fla.
Underwriter
American Diversified Securities, Inc.,
Washington, D. C.
:".'0'V-'"',:'

•>'

••

National

(Monday)

(Hayden,

Stone

Co.)

150,000

Securities

—

$400,000

...

(S.

Duncan

Price—100% of principal amount.
and sale of pre-fabricated
homes. Proceeds—To be added to the working capital of
the company and its subsidiary.
Office —149 Water
Street, West Newton, Pa. Underwriter — Arthurs, Lestrange & Co., Pittsburgh, Pa. (managing).
debentures, due 1970.

Co.)

(Sandkuhl

Fairmount Finance
Foto-Video

Co.)

Common

Company,

Co.,

$290,000

Inc.)

Corp.__

Planning,

Lytton

general contractor. Proceeds—-

Financial

(William

For

general corporate purposes. Office—116-55 Queens
Boulevard, Forest Hills 75, N. Y. Underwriter—Bennett
& Co., Newark, N. J.
■
■■ ■
\ "
l'/vV"V;y

Co.)

Missouri Pacific

■■

Common

and

Co.

Hammill

Co.)

Philippine Oil Development Co., Inc
(Offering

account of the company, and 100,000 shares for the pres¬
ent holders thereof. Price—To be supplied by amend¬

Oil Recovery

Simon
Stone

corporate purposes.

Office

—

24,

Inc.

1960

(Bertner

Inc

and

purposes.

Stamford

subordi¬
to hold-I

each

and

Earl

Edden

Australia

/'"* '

;

Common
Inc.)

,;.r

Triangle

11:00

Co.)

(Shearson,

Hammill

Co.

and

William

Tegtmeyer

300.000

Smith

Aug. 22, 1960

(letter of notification) 225,000 shares of
stock (par 10 cents). Price—$1 per share. Pro¬

Inc.

and

(White,

Weld

Co.

Merrill

Kidder,

Pioneer Finance Co

bank

Poabody

(Bids

Watling,

11:00

-•

Puritron

Lerchen

125,000

(Blunt

• Amacorp Industrial Leasing Co., Inc. (10/17-21)
Sept. 9, 1960 filed 170,000 shares of common stock (no

Sachar

Ellis

•

;

•>

Crow,

Inc.)

Whitmoyer

Laboratories,

(Hallowell,

Proceeds—For general corporate
purposes.
Business—The financing of industrial and office
equip¬

Sulzberger,

•

Co.)

(Hallowell,

Sulzberger,

Jenks,

$510,000

Co.)

$600,000

Centers, Inc.————Capital
60,000 shares

Vy. j;

Peabody

150,000

&\!Co.)

;

—Common

(General Securities Co.)

■

.■•/

$250,000
,

_..•••

.....

Brooks & Co.,

Louisiana

$500,000

...

•►>.

.Common
underwriting)'134,739 shares

•

Florida Hillsboro Corp.—

Debentures

Kirkland

-——Common

(P. W.

through the purchase and leasing of such property
Office—Alhambra, Calif. UnderwriterMcDonnell & Co., New York
City (managing).

Dalto Corp.

Common

Kirkland

Centers, Inc.——Debentures

(York & Co.)

Whitmoyer Laboratories, Inc

ment

250,000

Co.)

Cyclomatics, Inc.—

Common

Inc

Jenks,

Inc.) $600,000

$600,000

$900,000

Inc.)

(Monday)

(No

amendment.

Co.,

Cornet Stores

Units
and Globus,

100,000

—Common vv

Recreation

(Pistell,

Corp.)

Common

(Kidder,

Properties, Inc

Technical Measurement Corp.—

holder, and 130,000 shares will be offered for the account
of
the issuing
company.
Price —To be supplied by.

Units
.v

Corp.

American

Common

Corp.—

(York & Co.)

Simmons) .100,000

(Ross, Lyon 8c Co., Inc.

par), of which 40,000 shares, representing outstanding
stock, will be offered for the account of a selling stock¬

Dowd

American Recreation

shs.

Bonds

$50,000,000

a.m.)

Laboratory, Inc

F-

•

$700,000

(Bache

Resiflex

Co.)

Preferred

Co.)

Equipment

Pennington

(R.

October

Cumulative

and

Insurance

Lynch,
&

Public Service Electric & Gas Co

Mohawk

258,558

underwriting)

Pools

Common

stockholders—underwritten

Fenner

$30,000,000

—Convertible Debentures

(First

Curtis)

Missouri Public Service Co
Pierce,

JilDebentures •X'

-Capital
Jackson

East Central Racing & Breeders Association
Inc.
*
IV.

Co.)

(Tuesday)

Webber,

$4,500,000

Co., Inc.)

(Thursday)

Lifetime

Hallicrafters Co.
(Paine,

Convertible Debentures

Inc.

(No

September 20

■

...

(Offering to stockholders—underwritten by
Lehman Bros.)
$6,205,000

184,435 shares

(9/27)

loan, selling, adver¬
tising, promotion and for working capital. Office—558
W. 18th St., Hialeah, Fla. Underwriter-—R. A. Holman &
Co., Inc., New York, N. Y.
y
/
;

Aldens

$1,102,400

Common
&

$60,000,000.

September 30 (Friday)

$200,000-y-

Wallace Press, Inc

;

..Bonds

a.m.)

(Goldman, Sachs & Co. and Lehman Bros.)

Common

Stearns

$25,000,000

Continental Can Co., Inc.

Common

Corp

Bonds

Co.)

Ripley &

September 29

;

•'

>•••

•

..-Debentures

Machine, Inc

Lumber

(Offering

$280,000

Corp..

(Bear,

debentures and
300,000 shares of capital stock, to be offered in units of
$75 principal amount of debentures and 30 shares of
itock. Price—$108 per unit. Proceeds—For
general cor¬
porate purposes. Office—Arlington, Texas. Underwriter
Rauscher, Pierce & Co., Inc., Dallas. Note — This
offering has been postponed.

Common

Inc

Walker & Co.)

Radio

Industries,

(Commonwealth of)

Perfect Photo, Inc

$300,000

:^^....<Holton, Henderson & Co.)

■

Office—Chicago, 111. Under¬

Insulating Co., Inc.

(G.

$150,000 ' .
...
-Equip. Trust Ctfs.

$7,500,000

noon)

New York Telephone Co

$100,000

Co.)

Class A

(Wednesday)

September 28

Inc.)

Common

Triangle Business

Allied Bowling Centers, Inc.
29 filed $750,000 of sinking fund

Wir.slow,

Bros,

$1,600,000.

Co.)

(Bids

(Lee Higginson Corp. and Straus, Blosser & McDowell) $2,200,000

Allen &

and

(Morgan Stanley

Chemical

"Trav-ler

30, 1960,

Dec.

retirement

(Barwyn Securities,

writer—Lehman Brothers, New York City.

ceeds—For

.Bonds

Time) $12,000,000

Southern Pacific Co

(Harriman

filed

shares then held with rights to expire on Oct.
17. Price—To be supplied by amendment. Proceeds—For

common

Common
Whiteside

Chace,

Softol, Inc.

common

Aluminum

103,452,615

(Bids
u*

$6,205,000 of convertible,
nated debentures, due Oct.
1, 1980, to be offered
ers of the outstanding common of record
Sept.
on
the basis of $100 of such debentures for

•

Inc.

N. Y.

Brothers

$300,000

Co.)

Sealed Air Corp

3990

(9/30)

general corporate

Co.,

Bruce

200,000

Road, Youngstown. Ohio. Underwriter—Hay den,
& Co. of New York City (managing).

Aidens

Aug.

general

Polytronics Laboratories, Inc
J
(R. A. Holman & Co., Inc.)

Common

Enterprises,

(Blair

underwriting)

$225,000

Inc.)

Corp.————Conv. Debentures

(Lehman

Capital

Co., Inc
(Richard

Reva

ment. Business—The production of a complete line of
induction heating equipment. Proceeds — For working

capital and

stockholders—No

Rainier

Co.,

•

Ajax Magnethermic Corp. (9/19-23)
Aug. 17, 1960 filed 150,000 shares of common stock (no
par), of which 50,000 shares are to be offered for the

Holman

(11:00
,

$3,975,000

Common

Insulating Co., Inc
(R.

Shearson,

p.m.)

$840,000

Parmalee)

Indianapolis Power & Light Co.—

Equip. Trust Ctfs.

1:00

$300,000

Inc.)

French,

Conv. Debentures

(Bids

Aluminum

Capital

•.

354,000

(Tuesday)

September 27

$300,000

Corp

Staats

Fricke

Moyer,

Class B
$500,000

Inc.)

ness—The

(Copley

Common

(Cartwright

Electronics

Common
$264,900

Co.)

Timely Clothes, Inc.—

International Safflower Corp

Securities

Co.

(Woodcock,

Common

Tele-Tronics

$297,500

Inc.)

Industries, Inc.
July 20, 1960 (letter of notification) 150,000 shares of
common stock (par 10 cents). Price—$2 per share. Busicompany

Common

—

100,000

Co.)

Telephone & Electronics Corp.

260,000

Corp

Patterson

(Fund

Brothers) 200.000 shrs.

Corp.

Syntex

$4,000,000

(Allen

Stearns

Common

Candies, Inc

Capital

Engineering

(J.

Bonds
$300,000

(Hairiman Ripley & Co., Inc. and Stern

(Equity

Edwards

Adson

Russell Stover

Capital

Inc.)

Co.,

(Bear,

manufacture

Fuller

Coffee

Common
and Netherlands
$1,200,000

Inc.

(General Investing Corp.)

Co.)

Avionics Investing Corp

Admiral Homes, Inc. (9/26-30)
Aug. 15, 1960, filed $400,000 of convertible subordinated
Business—The

and Maltz, Greenwald &

65,000

Co.,

Association

Turf

Portland

Common

(Clayton Securities Corp.

Winston &

Corp.

Co.)

Capital Corp

Common

—

Astrex

Common
$1,050,000

Inc.)

Sloss & Co.,

Milgo Electronic Corp
Common
(Offering to stockholders—underwritten by Shearson, Hammill

$250,000
•//"' ; \'l

...'j

Magnethermic Corp

$298,000

Inc

Lanes,

(J.

Ajax

—--Class A

(Marron,

Common

I. Magaril Co.
f

Adler

Lence

Common

60,000 shares

Co.)

Smithers

(Schrijver & Co.)

$825,000

Spray-Bilt, Inc.
(J.

and

Inc.

Klondex

Common
O'Neill

Com.

$300,000

Inc.)

Mills, Inc.———

Co.

$300,000

Co.)

Corp.
(George,

(Blair

Co.,

Schramm

Head

Indian

$400,000

Capital

—

120,000 shares

Co.)

Electronics Manufacturing Corp

(Friday)

(Standard Securities Corp. and Bruno-Lenchner, Inc.)

Nucleonic

Television—

Star

Heldor

September

REVISED

(Dempsey-Tegeler

the large

number of issues
awaiting processing by the SEC, it is becoming
increasingly difficult to predict offering dates
with a high degree of accuracy. The dates shown
in the index and in the accompanying detailed
items reflect the expectations of the underwriter
but are not, in general, to be considered as firm
offering dates.

ITEMS

ISSUE

•

Four

NEW ISSUE CALENDAR
NOTE—Because

SINCE

Inc.

and

Units
Lee

Higginson

Corp.)

$1,150,000

Gas Service Co
(No

Common

underwriting)

670,000

to its customers.

•

American Foods

September 21
Bruce National

Inc.

(George,

Aug. 16, 1960 filed 167,000 shares of common stock.
Price—$3 per share. Proceeds—For the company's ven¬
tures in Florida and North
Carolina, and the balance
for working capital.
Office—Miami, Fla. UnderwriterGodfrey, Hamilton, Magnus & Co., New York
City. Offer¬
ing—Expected sometime in October.
on

page

Enterprises, Inc
O'Neill &

Co.,

Inc.)

(Bids

Rochester

(1:00

p.m.

Bonds

(R.

Union

executives listed in Dun and
Bradstreet's "Million Dollar

useful
erners

them.

midwest-

Admiral

most

a.m.

EDT)

Co.,

Common
50,000

Common
Corp.)

$225,000

Corp.—

Inc.;

Common

Co.)

Corp.—

Milton

Salomon

120,000

Blauner

Co.)

Homes, Inc

(Equity Securities

;

Gulton

-Convertible Debentures

Lestrange

Allyn

Co.,

Inc.

and

Co.)

San

$400,000

Bache

Common
Co.)

301,884

Arnoux Corp.
(Shearson,

Hammill 8s Co.)

(Sandkuhl

Co.) $242,670

(Tuesday);;

Industries, Inc.—

Common

Company,

Inc.)

Electronics, Inc._*_

-•*■•( J.-ncoburn^^Associates;

Inc.

;

•

;

Common

Diego Gas & Electric Co.—

•

invited)

Bonds

$30,000,000

—Preferred•<

Bonds

(White, Weld &.Co.,) $5,000,000

Valdale Co.,

Common '*
inc. j>$3OO;O0O*^''

(B.

Common

100,000 shares

(White, Weld 8c Co.) $2,000,000

$300,000'

Inc.

(Kidder, Peabody fic Co.) 74,546 shares

Federated

—

Southern Nevada Power Co

133,000 shares;

Co
&

Co.,

$472,500

Southern Nevada Power Co

.Common

Brothers Chemical

-Common

$50,000,000

(Monday)

Ennis Business Forms,
*

and

200,000

Inc

Engineering

Lee

Co.)

Corp.)

Planning

Peabody

(Bids
(A.

(Lehman Brothers and G. H. Walker,8c Co.)

xtwtrAri*

Mouldy circulated market table pages

Wilier Color Television System, Inc.—-—Common
Bonds

(Arthurs,

regularly. Your Tribune
you details.

0 ft > at t $ t

(M.

$273,250

American Title Insurance Co.—

securi¬

dlfjkagu ^Tribune
WORVB't

Inc.)

September 26

TMI

Electric

Temperature
Common

Co.,

550,000

Corp

Securities

Materiel

.October 4

the Chicago
important and

representative will be glad to give

Mid America's

Technical

Inc.)

Common

Instrument

(Kidder,

—

Co.,

Marache

Electronics,

75,000 shares

(Thursday)

Corp

(United
•

say

your

ties and services in the Tribune

Techni

Common

Holman

(Bids

read the Tribune than read
any other newspaper.
to work for
you. Advertise

Put the Tribune

Common
Allyn

(Granbery,

$12,000,000

time)

Corporate officers and

newspaper most
Hundreds of thousands

Shack

Standard

-Bonds

(Havener

Sabre Craft Boat Co

Directory"

Radio

$20,000,000

noon)

Telephone

Roto American Corp

Hfost useful in Mid America

Chicago

Common
$2,010,000

September 22

Tribune is the

(A.

Pacific Power & Light Co

(Morris Cohon & Co.)

Continued

Pik-Quik, Inc.

(Wednesday)

I-

/'■

Inc._

Rubin

Octobers

Co.

Common
and

Simmons

(Wednesday)y\

Intercoast Companies, Inc
r

a,'.-.^^Sohwabacher&;' C®;^)? •110,-000'

Co.). $300,000

;

//1
—Common

*
-tv'-

Volume

Number 5986

192

The Commercial and Financial Chronicle

V October

•

(Thursday)

(Bids

11:00

Co.,

Inc.)

Daystrom,

Bowling Investments, Inc
&

$300,000"

(Francis

duPont

Co.)

150,000

8:30

(Bids

Class A

(Monday)

(McDonnell

Inc.)

Co.,

_...

stockholders
Co.

170,000

Green Shoe

Canteen

Co.

Common

underwritten

—

Lee Higginson

and

(Glore,

Co.)

Weeks)

underwriting)

Co.,

•

(Blair

250,000

64,500

•

page

Horizon

and

S..-'

Inc.;

350,000

Co.

Co., Inc.)

Reich

Corp

•

,Co.__Debentures

principally to originate mortgage loans and
until market conditions are favorable for
Office — 210 Center St., Little Rock, Ark.

-r-To be used

them

disposition.

Underwriter—Amico, Inc.
American

Aug. 31,
ated

Optical

Co.

■

$8,000,000 of convertible subordin¬
due 1980. Price—To be supplied by

1960 filed

debentures,
Proceeds—For general corporate purposes.

amendment.

Underwriter—Kuhn, Loeb
Co., New York City (managing). Offering—Expected
Mass.

Office—Southbridge,
&

mid-to-late

October.

received)

titled to purchase
new

American

Recreation

Centers,

Inc.

(10/3-15)

Aug. 15, 1960 filed $600,000 of 7% sinking fund deben¬
tures, due September, 1972 (with attached warrants for
the purchase of 150, shares of stock for each $1,000
debenture purchased), and 60,000 shares of capital stock.
Price
To be supplied by amendment. Business — The

entitled

shares at the rate
held.

the
to

new

one

new

the

additional

common

share for each 10 shares

„

Arnoux

Corp.

accessories.

Proceeds

modernization
purposes.

—

Retirement

facilities,

and

for

the opera¬
of bowling

of indebtedness,
general corporate

Office—1721 Eastern Ave., Sacramento, Calif.

Underwriter—York & Co. of San Francisco, Calif.
American &

St.

Lawrence Seaway Land Co.

stock, of which
publicly offered. Price—$3 per
off mortgages, develop and im¬
prove
properties, and acquire additional real estate.
Office—60 E. 42nd St., New York City. Underwriter—

Jan. 27 filed 538,000 shares of common
are to be
share. Proceeds—To pay

850,000 shares

A. J.

Gabriel Co., Inc., New York

American Title

Insurance Co.

City.
(9/26-30)

July 27, 1960 filed 301,884 shares of
(par $2), of which 150,000 shares are

stock
to be publicly
common

account of the issuing company

and the
balance is to be used in connection with exchange offers
for the stock of similarly engaged companies. Price—
offered for the

To be supplied

by amendment. Proceeds—For general
corporate purposes, including possible future acquisi¬
tions. Office—901 N. E. 2nd Ave., Miami, Fla. Under¬
writers—A. C. Allyn & Co., Inc., and Bache & Co., both
of New York City (managing).
Arden Farms Co.

May 13, 1960, filed 44,278 shares of preferred stock, and
149,511 shares of common stock. The company is offering

Consumers

Preferred
$7,500,000

(9/26-30)

May 23 filed 133,000 shares of common stock. Price—
supplied by amendment. Proceeds — For general
corporate purposes and working capital. Office—11924
W. Washington Blvd., Los Angeles, Calif. Underwriter—

Inc.
Aug. 15, 1960, filed 105,000 shares of outstanding class
A stock (par 10 cents). Price—$3.50 per share. Business
—The company is engaged in the electronic data proc¬
essing and machine accounting service business. Pro¬
ceeds— To selling stockholders.
Office — 220 W. 42nd
Street, N. Y. C. Underwriter—Amos Treat & Co., Inc.,
New York City. Offering—Expected sometime in Octo¬

including debt reduction. Business—The distribu¬
equipment used principally in the electronics,

aircraft and missile industries.

Underwriters—Clayton
and Maltz,

Securities

Corp., Boston, Mass.,

Light Co.

Aug. 9, 1960, filed 109,186 shares of common stock (par

$10), being offered to holders of the outstanding common
of record Sept. 1 on the basis of one new share for each
10 shares then held with an oversubscription privilege.
Rights expire at 5 p.m. EDST on Sept. 19. Price—To be

supplied by amendment.
loans

incurred

Atlanta'/ Ga.

for

Proceeds — To reduce bank
expenditures. Office—

construction

Underwriters—(for

unsubscribed

stock):

First Boston Corp., New York City, and Courts & Co.
and The Robinson-Humphrey Co., Inc., both of Atlanta,
Ga.

Bonds

(Minn.)

invited)

$35,000,000

(Monday)
Co

11:30

a.m.

Bonds
V

$35,000,000

EST)

135,000 shares of

(letter of notification)

1960
stock

five cents).
Price—$2 per share.
Proceeds—For production and research for equipment,
inventory, building and working capital. Office—42 S.
common

15th

(par

St/VPhiladelphia, Pa. Underwriter—Robert M. Har¬

ris & Co., Inc., Transportation Bldg., Philadelphia, Pa.
• Avionics
investing Corp. (9/19)
July 12, 1960, filed 400,000 shares of capital stock (par
$1). Trice — $10 per share? Business — The issuer is
a closed
end non
diversified management investment
-

company.
concerns

Proceeds—For investments in small business
in avionics and related fields, with a proposed

$800,000 to be invested in any one such enter¬
Office — 1000 - 16th Street, N. W., Washington,

prise.

Underwriter—S. D. Fuller & Co.,

D. C.

Bal-Tex Oil
June

17, 1960

class

New York City.

Co., Inc.

300,000 shares of

(letter of notification)

common

stock.

Price—At

par

($1

per

share).

Proceeds—For expenses for development of oil proper¬

ties. Office—Suite 1150, First National Bank
ver,

Bldg., Den¬
Colo. Underwriter—L. A. Huey & Co., Denver, Colo.
Merchandising Corp.

(letter of notification) 27,500 shares of
stock, class A (par $1). Price—$10 per share.
Proceeds—For working capital. Office—3041 Paseo, Kansas City, Mo. Underwriter—Midland Securities Co., Inc.,
28,

1960

common

Kansas City,

Border

Office—New York City.

Greenwald & Co., of New York City.

AtCanta Gas

Autosonics, Inc.
July 29,

July

(9/19-23)

July 12, 1960, filed 100,000 shares of common stock. Price
—$4 per share. Proceeds — For general corporate pur¬
tion

(Tuesday)

Power

Blackman

Corp.

.Bonds

$75,000,000

Ave., Boston,Mass.
Underwriter — Paine,
Webber, Jackson & Curtis, New York City (managing).
Offering—Expected in late October.

ber.
Astrex

received)

limit of

Associated Sales Analysts,

•

to be

Brookline

preferred at the rate of one

purchase

The record date for both groups is June 23 with
rights to expire on or about Sept. 16. ! Proceeds — To
repay the equivalent portion of bank loans. Office—1900
West Slauson Ave., Los Angeles, Calif.

—

company is engaged, through subsidiaries, in
tion of four bowling centers, and in the sale

Bonds

(Tuesday)

(LBlda

(Bids

share for each 10 shares held. Common stockholders

will

•

$6,000,000

received)

Northern States Power Co.

$30,000,000

at $15 per share, initially through subscription warrants.
The holders of outstanding preferred stock will be en¬

poses,

Playlands Corp. '
Aug. 22, 1960 filed 300,000 shares of common stock. Price
—$4 per share. Business—The company intends to oper¬
ate an amusement and recreation park on 196 acres of
land near Liberty, N. Y. Proceeds—For development of
the land. Office—55 South Main St., Liberty, N. Y. Un¬
derwriter—M. W. Janis Co., Inc., New York City.
American

received)

to be

December 12

Bonds

...

Shearson, Hammill & Co., New York.

carry

(Bids

(Monday)

public sale in units (2,000) known as In¬
Certificates, each representing $900 of bonds
and 783 shares of stock. Price—-$1,800 per unit. Proceeds
for

$250,000,000

To be

vestment

(Wednesday)

December 6

United Gas Corp.

•

..Debentures

$20,000,000

$1,080,000

the preferred shares at $52 per share, and common

Investment Corp-

November 22

Common

April 29 filed $1,800,0U0 of 4% 20-year collateral trust
bonds and 1,566,000 shares of class A non-voting com¬
mon stock.
It is proposed that these securities will be
offered

(Bids

(Tuesday)

(Bids

New York.

received)

$1,500,000

Corp

(Bids to be received)

772,000 shares

(managing). Note—This stock is not qualified for sale in

November 16

Units

Greetings

October 25

....Common

90,174 shares of common stock, to
outstanding common on
the basis of one new share for each 5y3 shares held.
Price—To be supplied by amendment. Proceeds—For
general corporate purposes. Office—5th and Franklin,
Waco, Texas. Underwriters—Ladenburg, Thalmann &
Co. and Lee'Higginson Corp., both of New York City

$15,000,000

Co.;

Magnus

(Standard Securities Corp. and Bruno-Lenchner, Inc.)

Rauscher,

be offered to the holders of the

received)

Telephone Co.—
to

(Bids

American Telephone & Telegraph

(10/17-21)

Public Service Co. of New Hampshire.

and

Bonds
to

(Bids

Units

Globus.

and

(Tuesday)

New Jersey Bell

■

Common

Consolidated Edison Co. of New York

Debentures

American Mortgage

Common
Curtis

420,000

(Ross, Lyon & Co., Inc.)

Williamsburg

1960 filed

26,

Land

$3,500,000

American Income Life Insurance Co.

Aug.

Inc.;

Power

(Monday)

October 31
Peabody

Pierce

Continued from

Co.,

Idaho

Investors, Inc..—

(Kidder,
'

Bonds
I12.000.000

Merrimack Essex Electric Co

...

Inc.)

Co.;

Co.)

$25,000,000

Godfrey. Hamilton,
& Co.) $800,000

Common

Electro-Science

received)

Jackson

Shore & Co.

October 24

Dorsey Corp.
*

Lyon

.....Common

;

(Blair

Webber,

(Ross,

Common

Dorsey Corp.

"•

Bonds

(Tuesday)

(Bids

Common

Corp

(No

Common
shares

Developers Limited
.
i' (David Barnes & Co., Inc.) $300,000

November 15

Manufacturing Co

(Paine,

Harold

Dewey (G. C.)

$25,000,000

.Bonds

524,000 shares

Homes, Inc..
&

time)

.y•

Kings Electronics Co., Inc

Common

(P. W. Brooks & Co., Inc. and Lee
Higginson Corp.) 450,000 shares

(Hornblower

California

Palm

(Thursday)

Moseley

90,174 shares

Corp.)

of America

Forgan &

Detroiter Mobile

130,000

(Thursday)

November 8

Debentures

Ladenburg,

Bzura Chemical Co;, Inc

•

Co.)

Georgia Power Co

$16,000,000

Gas Supply Co
a.m.

(Bids

.Common
1

(Bids to tee invltod

Florida Power Co

American Income Life Insurance Co

Automatic

invited)

Bonds

Amacorp Industrial Leasing Co., Inc.

Broadcasting Corp

Darlington

November 3

$10,000,000

(Wednesday)

Pacific Lighting

October 20

October 17

Thalmann

$30,000,000

(Bids to be received) $60,000,000

Debentures

received)

Gas & Electric Co

(Tuesday)

October 19

150,000 shares

Manufacturing Corp..

$840,000

(Tuesday)

Gay (Connie B.)
(Hill,

Louisville Gas & Electric Co.

Common

(Lehman Bros, and Piper, Jaffray & Hopwood)

(Offering

Co.)

Debentures

(Tuesday)

Daffin Corp.

Still-Man

Gas Corp.

November 1

$4,000,000

Common

Inc.

(Bids

October 11

Units

;

(Goldman, Sachs & Co. and R. W. Pressprich ■& Co.)

Common

Co.)

Hentz

United

(Bids

$300,000

(Monday)
(Copley

■

Pacific

October

October 10

Inc

•

and P. W. Erooks & Co., Inc.)

(H.

...Common
Barnes

235,000

Co.)

Chemicals,

Higginson Corp.

Common
&

Welded Tube Co. of America

Minitronics, Inc.
(David

......

Stearns

Nixon-Baldwin

Vending

Debentures

$30,000,000

a.m.)

(Friday)

•

(Bear,

(Lee

October 7

Interstate

Columbia Gas System, Inc.—

(1077)
r'\ '•*'

jv*

Mo.

Steel

Rolling Mills,

Inc.

July 25, 1960 filed $1,300,000 of 6% subordinated con¬
vertible debentures/ due
1976, and 245,439 shares of
common stock,
of which the stock will be offered to
holders of record May 31, on the basis of 53J/4 new shares
for each share then held. Price — For the debentures,
100% of principal amount; for the stock, $5 per share.
Proceeds—For
lated

the

construction

steel

mill

and

re¬

land purchase, interest payments,. and
general funds.
Office — Mart Bldg., El Paso, Texas.
Underwriters—First Securities Co., Dallas, Texas, and
Harold S. Stewart & Co., El Paso, Texas (for debentures
only).
v y ; ; •

facilities,

Bowling Investments Inc. (10/10-14)
1960 (letter of notification) 150,000 shares of
stock (par 10 cents). Price — $2 per share.
Proceeds—For purchase of real estate, construction of a
bowling building, purchase or lease of equipment and
restaurant equipment. Office—1747 E. 2nd St., Casper,
Wyo. Underwriter—Copley & Co., Colorado Springs,
Aug. .17,
common

ic Australia (Commonwealth of)
(9/28)
Sept. 8, 1960, filed $25,000,000 of 20-year bonds. Price—
To be. supplied by amendment.
Proceeds — To finance
public works projects in Australia. Underwriter—Mor¬
gan Stanley & Co., New York City (managing).
•

Automatic

Canteen

Co.

America

(19/17)

1, 1960 filed 524,000 shares of common stock, to
be offered to holders of the outstanding common on the
basis of one new share for each 10 shares held. Price—
Sept.

be supplied by

amendment. Proceeds—$9,500,000 to pay
acquisition of Commercial Discount Corp., with
the balance for general corporate purposes. Office—Chi¬
cago, 111. Underwriter—Glore, Forgan & Co., New York
City (managing).
: .• • V y
:
::
for the

ic Automatic Radio Mfg. Co., Inc.
Sept. 9, 1960, filed 623,750 shares of common stock
(par $1), of which 150,000 shares will be offered for the
account of the issuing company and 473,750 shares, rep¬
resenting outstanding stock, will be offered for the
account of the present holders thereof.
Price — To be
supplied by amendment. Business—The firm makes and
sells car and portable radios. Proceeds—For expansion,
working capital, and possible acquisitions. Office—122

Colo.
•

Bridgeport Gas Co.

Sept. 2, 1960 filed 50,000 shares of common stock, to be
offered to the holders of the outstanding common on the
basis of one new share for each six shares held. Price—

$27.50 per share. Proceeds—To be applied to the pay¬
of bank
loans incurred for property additions

ment

to approximate $1,800,000 in 1960.
St., Bridgeport, Conn. Underwriter—
None. Offering—Expected in mid-October.
which

are

Office—815

•

Bristol

expected
Main

Dynamics, Inc.

1960, filed 124,000 shares of common stock, of
which 69,000 shares are to be offered for public sale for
the account of the issuing company and 55,000 shares,
being outstanding stock, by the present holders thereof.
Price—$6 per share.
Proceeds—$100,000 for expansion
and further modernization of the company's plants and
June 28,

Continued

page

(1078)

Continued

The Commercial and Financial Chronicle

from page 33

equipment; $100,000 for research and development of
new
products; and the balance (about $123,000 )^ for
working capital and other corporate purposes. Office—
219 Alabama Ave., Brooklyn, N. Y. Business—Designing,
engineering, manufacturing, producing, and selling elec¬
trical and mechanical assemblies, electronic and missile
hardware components and special tools and fabrications.
Underwriter
William David & Co., Inc., New York.
Offering—Expected in late September.
—

ceeds—For general corporate
purposes, including the re¬
payment of bank loans and the addition of technical per¬

Office—309

sonnel.

Brothers Chemical Co.

Aug.

class

1960

business. Office—30 West Monroe
St.,

notification) 100,000 shares of
(par 10 cents).
Price — $3 per
share.
Business—Manufacturing chemicals. Proceeds—
For
general corporate purposes.
Office — 575 Forest
stock

Street, Orange, N. J. Underwriters—Sandkuhl & Com¬
pany, Inc., Newark, N. J. and New York City and J. I.
Magaril & Co., and Lloyd Haas Co., both of New York
City.
•..

;

•

Bruce

National

Enterprises,

(9/21)

Inc.

April 29 filed 335,000 shares of common stock (par 10
cents).
Price—$6 per share.
Proceeds—For reduction
of

outstanding

indebtedness; to pay off mortgages on
certain property; for working capital and other corpo¬
rate purposes.
Office—1118 N. E. 3rd Avenue, Miami,
Fla.
Underwriter
George, O'Neill & Co., Inc., New
—

Bryn

Mawr Trust Co.

is offering 7,360

one

new

for

each

then

held.

Rights expire Sept. 27, 1960. Price—$36 per share. Pro¬
ceeds—To increase capital funds. Office—Bryn
Mawr,
Pa. Underwriter—Stroud &

Business

Aug.

Circle-The-Sights,

■/

Inc.

Co., Inc., Philadelphia 9, Pa.

Finance Corp.

Clark Cable Corp.
Aug. 23, 1960 filed 222,500 shares of common stock, of
which 127,500 shares are to be offered for the account
of the issuing company and 95,000
shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof.
Price—$4 per share.
Pro¬
To

—

reduce

indebtedness, with the balance for

working capital. Office
Robert L. Ferman &

Cleveland, O. UnderwriterCo., Miami, Fla. (managing).
—

Gas

(letter of notification) 195,000 shares of
(par 20 cents). Price — $1.50 per share.
expansion. Office—1800 E. 26th
St., Little Rock, Ark. Underwriter—Cohn Co., Inc., 309
N. Ridge Road, Little
Rock, Ark.
stock

St., New York City/Underwriter—To be determined by
competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Inc Inc.; Shields & Co.; R. W. Pressprich & Co. and Carl M. Loeb, Rhoades & Co., all of
City. Bids—Expected to be received on Oct. 6
up to 11:00 a.m. N. Y. Time. Information—During busi¬
New York

hours

ness

Oct. 3 at 120 East 41st

Street, New York

Commerce Oil Refining Corp.
Dec. 16, 1957 filed

$25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,000 of subordinated debentures due
Oct. 1, 1968 and 3,000,000 shares of common stock
to be
offered in units

follows: $1,000 of bonds and 48 shares

Buttrey Foods, Inc.
Aug. 15, 1960 filed 65,000 shares of common stock. Price
•—To be supplied by amendment. Business—The com¬

of stock and $100 of debentures and nine shares of
stock.
Price—To be supplied by amendment.
Proceeds — To
construct refinery. Underwriter—Lehman

operates a chain of 21 retail food stores in Mon¬
Proceeds—For equipment and inventory, and for
additional stores as may be opened in the future. Office

York.

pany
tana.

-601

6th St., S.

T. M. Dain &

Buzzards

W., Great Falls, Montana. Underwriter
Co., Inc. of Minneapolis, Minn;?

Bay Gas Co., Hyannis, Mass.

June 7 filed 27,000 outstanding
shares, of common stock,
to be offered for sale by American Business Associates.

Price

—

To be

supplied by amendment. Underwriter—

Coffin & Burr, Inc.,
•

Bzura Chemical Co., Inc. (10/17-21)
Aug. 25, 1960 filed 450,000 shares of common stock (par
25 cents), an undetermined number of which
will be
offered

for

the

account

the

issuing

company, with
the remainder to be offered for the account of the
pres¬
ent holders thereof. Price—To be
supplied by amend¬
ment.
Business — The company makes and sells citric
acid. Proceeds
To expand the capacity of the
—

company,

parent

Bzura, Inc., for the manufacture of fumaric

acid, and to enable it to produce itaconic acid, with the
balance for working capital.

Office—Broadway & Clark

Streets, Keyport, N. J. Underwriters—P. W. Brooks &
Co., Inc., and Lee Higginson Corp., both of New York
City (managing).
Canaveral International
Corp.
Aug. 12, 1960 filed 300,000 shares of

common stock (par
supplied by amendment. Business—
Land sales and development.
Proceeds—$150,000 for ac¬

$1).

Price—To be

counts

payable, $335,000 for mortgage and interest pay¬
ments, $250,000 for advertising, $250,000 for development
costs and $290,000 for
general working capital. Office—
1766 Bay Road, Miami
Beach, Fla.
Underwriter —S.
Schramm & Co., Inc., New York
City.
Carco Industries,

Inc.

Aug. 25. 1960^ filed 150,000 shares of common stock
(par
10 cents). Price—$5
per share. Business—The manufac¬
ture, assembly, sale, and installation of various metal
products. Proceeds—For general
corporate purposes, in¬
cluding payment of taxes, plant and
equipment, " and
working capital. Office
7341 Tulip St.,
Philadelphia,
Pa.
Underwriter—Myron A. Lomasney & Co., New York
City. Offering—Expected sometime in
—

October.

if Carhart Photo, Inc.
Sept. 7, 1960 (letter of

notification)

150,000 shares of
Price—$2 per

10 cents).

corporate purposes. Office

College Ave., Rochester, N. Y. Underwriter—DooBuffalo, N. Y.

little & Co.,

• Caruso Foods, Inc.
Sept. 2, 1960 (letter of
common

stock

notification)

(par three cents). Price

150,000
—

$2 per share.

—

Cavitron Corp.

June 17,

1960, filed 40,000 shares of common stock. Price
$15 per share. Proceeds—To
finance the company's anti¬
cipated growth and for other
general corporate purposes.
Office—42-15 Crescent St.,
Long Island City, N. Y. Unwriter—None.
Offering—Expected in mid-October.
Cheiritronic Corp.'
■'
Sept. 2, I960 filed 200,000 shares of
common stock (par
10 cents).
Price—$2 per share. Business—The

makes and

sells

company

miniature electrolytic
capacitors.

Pro¬

Price—To be supplied by amendment. Business—
makes
agricultural
implements,
feed
grinding and mixing equipment for the livestock indus¬

class

common

stock

try, and conveying and seed cleaning equipment. Pro¬
selling stockholders. Office—Hopkins, Minn.
Underwriters—Lehman Brothers, New York City, and
ceeds—To

Piper,

—

of
per

equipment,

working capital. Ad¬

dress
c/o Harold G. Suiter, Box 1061, Rio
Piedras,
Puerto Rico. Underwriters
L. L. Bost Co., Baltimore,
Md. Offering—Imminent.
/ ;
/?
—

—

Commonwealth Telephone Co. (Pa.)
Aug. 25, 1960 filed 42,960 shares of common stock
$10) to be offered to the holders of the outstanding
mon

the

basis

one

new

for

each

(par
com¬

held. Price—To be supplied
by amendment. Proceeds—
To reduce amount of

outstanding bank loans. Office—■
Dallas, Pa. Underwriter—Eastman, Dillon, Union Securi¬
ties & Co., New York
City (managing).
Consolidated Realty Investment
Corp.
April 27 filed 2,000,000 shares of common stock. Price-—
$1 per share. Proceeds—To establish a $250,000
revolving
fund

for initial and

struction of custom

commercial

intermediate financing of the con¬
or pre-fabricated
type residential or

buildings and facilities

be acquired for sub-division
and

upon

properties to

shopping center devel¬

opments; the balance of the proceeds will be added to
working capital. Office—1321 Lincoln
Ave., Little Rock,
Ark. Underwriter—The
Huntley Corp., Little Rock. Ark.
Continental Can Co., Inc. (9/29)
Aug. 31, 1960 filed $30,000,000 of
debentures, due Oct.
1, 1985. Price—To be supplied by amendment. Proceeds
—For working capital. Office—100
E. 42nd St., New York

City.

Underwriters—Goldman,

Brothers
Coral

Sachs & Co., and Lehman

(managing).

;

Aggregates Corp.

Aug. 25, 1960 filed 100,000 shares of common stock
(par
10 cents).
Price—$4 per share. Business—The company
intends

engage

the

extraction

and

sale

rock.

Proceeds—For
tirement of

equipment, working capital, and the re¬
indebtedness, with the balance for general

corporate purposes. Office—7200 Coral
Way, Miami, Fla.
Underwriters—Peter Morgan & Co., New York City, and
Robinson & Co.,

Inc., Philadelphia, Pa.

pected

mid-October.

Offering—Ex¬

The

company operates a chain of 125
retail variety
stores in five mainland western states and Hawaii. Pro¬
to

repay

short-term in¬
pur¬

Office—411 So. Arroyo Parkway, Pasadena, Calif.
Underwriter—Kidder, Peabody & Co., New York City

poses.

(managing).
Crown

Photo,

Aug.

W., Wash., D. C. UnderwriterJohnston, Lemon & Co., Wash., D. C.
Cryogenics Inc.
Aug. 16, 1960 filed 236,000 shares of common stock, of
175,000 shares

the

balance

the public
bank loan,

(man¬

Underwriters, Inc.

1960

(letter of notification) 300,000 shares of
Price—At par ($1 per share). Proceeds

stock.

common

—To pay outstanding notes and

the remainder for gen¬
eral corporate purposes. Office—214 W. Third
St., Yank¬

ton, S. C. Underwriter—Professional Insurers and Inves¬
tors Ltd., 104 E. 8th St.,
Denver, Colo.
•

DaIIto

March

Corp.

offered
record

(10/3-7)

filed

134,73^ shares of common stock, to be
subscript/on by holders of - such stock of
May 2 at the rate of one new share for each
for

two shares then held,
ment.

Price—To be supplied by amend¬

Proceeds—For the retirement of notes

tional working capital.
writer—N one.

and

Office—Norwood, N. J.

addi¬

Under¬

if Davega

Stores Corp.
Sept. 7, 1960, filed $1,500,000 of 6% convertible subor¬
dinated debentures, due
1975, to be offered to holders of
its common stock pursuant to

$100

preemptive rights. Price—
Business—The company operates a
in the metropolitan New York
in which it sells various electrical
appliances and

per

debenture.

chain of 29
areas

retail stores

sporting goods and apparel.
porate
two

new

retail

Proceeds—For general cor¬
and inventory for
centers.
Office
215 Fourth

including fixtures

purposes,

discount

—

Co.,

if Daystrom, Inc. (10/18) -i
Sept. 14, 1960 filed $10,000,000 of sinking TundDeben¬
tures, due Oct. 1, 1980. Price—To be supplied by amend¬
ment.

Business
The company manufactures electrical
and electronic products/Proceeds—For
working capital,
debt reduction, and plant and equipment. Office—Mur¬
—

ray Hill, N. J. Underwriters—Goldman,
R. W. Pressprich &

Sachs & Co. and
Co., both of New York City (man-

aging).

.l'

Dealers

Discount

Corp., Inc.
s
Aug. 1, 1960 (letter of notification) $300,000 of 7% sub¬
ordinated convertible sinking fund
debentures, due July
1, 1975. Price—At face value. Proceeds—For working
capital. Address—Darlington, S. C. Underwriters—G. H,
Crawford

Co., Inc. and Frank S. Smith & Co., Inc., Co¬
lumbia, S. C. and V. M. Manning & Co., Inc., Greenville,
s. c.
;
-■
•

Del Electronics Corp.
(9/16)
July 26, 1960 filed 100,000 shares of common stock (par
10 cents). Price—$4 per share.
Business—The company

makes,
power

from its own / designs, and sells high voltage
supplies, transformers, chokes, and reactors. Pro¬
working capital, relocation, and expansion.

ceeds—For

Office—521

Homestead Ave.,-Mount Vernon, New York.
Standard Securities Corp., New York

Underwriters

—

City, and Bruno-Lenchner, Inc., Pittsburgh,
•

Deluxe Aluminum

Oct. 15 filed

Pa.

;

Products, Inc.

$330,000 of convertible debentures, and 70,-

000 shares of

common stock. Price—For the
debentures,
of principal amount; for the stock, $5 per share.
Proceeds—From 10,000 shares of the common
stock, to
the present holders thereof; from the rest of the offer¬

100%

ing, to the company to be used for expansion and as
working capital. Office—6810 S. W. 81st St.. Miami. Fla.
Underwriter—R.

Holman

Co., Inc

Offering—Ex¬

pected in early October.

.
,

Detroiter Mobile

Homes, Inc.

(10/17-21)

Aug. 17, 1960 filed 250,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The manufacture and sale of mobile homes.

Proceeds—•

Approximately $1,000,000 -to be invested in the capital
stock of its wholly-owned
subsidiary Mobile Home Fi¬
nance Co., and the balance to be
added to the general
funds for inventory and accounts receivable. Office—
1517 Virginia
St., St. Louis, Mo. Underwriter—Hornblower & Weeks of New York
City (managing).
Detroit Tractor, Ltd.
May 26 filed 1,375,000 shares of class A stock. Of this
stock, 1,125,000 shares are to be offered for the com¬
pany's account and the remaining 250,000 shares are to

will

are

by the holders thereof. Price—Not to
share. Proceeds—To be applied to the
purchase of machine tools, payment of $95,000 of notes
and accounts payable, and for general
corporate pur¬
poses. Office—1221 E. Keating
Avenue, Muskegon, Mich.
Underwriter—To be supplied by amendment.
exceed

pansion of facilities, and the balance for working capital.
Office—3132 M St., N.

and

Hopwood, Minneapolis, Minn,
■
/?- ■
■-:///.
.

Dakota

be offered for sale

Inc.

Aug. 17, 1960 filed 100,000 shares of common stock.
Price—$8 per share. Business—.Processing and printing
photographic film. Proceeds—Repayment of loans, ex¬

which

•

(10/3-7)
Aug. 26, 1960 filed 150,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—•

ceeds—$1,100,000 will be used

Jaffray

aging.

;

(par 10 cents). Price

share. Proceeds—To purchase
machinery and
research and development and for

company

Ave., New York City. Underwriter—Amos Treat
Inc., New York City (managing).

Commonwealth Electronics Corp.
Augtnl,vl960 (letter of notification) 60,000

debtedness, with the balance for general corporate

Business—Food processing.
Proceeds—-For general cor¬
porate purposes. Office—2891-99
Nostrand Ave., Brook¬
lyn, N Y Underwriter
Searight, Ahalt & O'Connor,
Inc., New York, N. Y.
•

Offering—Indefinite.

•

Cornet Stores

Class A preferred stock
(par
share. Proceeds—For
general
—105

Brothers, New

Boston, Mass. Offering—Indefinitely

postponed.

par).

The

due 1985. Proceeds—For construction. Office—120 E. 41st

City.

Proceeds—For business

•

writer—General Securities Co., 101 W. 57th
Chicago, 111. Un¬
St., N. y. 19,
n. y.
\
• ■ v;,.
v:"■
/
Baffin Corp.
(10/11)
';:'1....
Aug. 22, 1960, filed 150,000 shares of common stock (no

(10-year 8% redeemable). Price—For
stock, $1 per share; debentures in units of $1,000 at their
principal amount. Proceeds—For initiating sight-seeing
service. Office—Washington, D. C.
Underwriter—None.

ceeds

laboratory and working cap¬
C. Underwriter—John R.

Associates, New York City. Offering—Expected

Cyclomatics, Inc. (10/3-7)
Aug. 31, 1960 filed 250,000 shares of common stock (par
10 cents).
Price—$1 per share. Business—Motorized and
automatic health equipment. Proceeds — For
inventory
and working capital.
Office—Astoria, L. I., N. y. Under¬

March 30 filed 165,000 shares of common stock and
$330,-

1960

common

•.

System, Inc. (10/6)
Aug. 26, 1960 filed $30,000,000 of debentures, series O,

shares of capital stock (ex¬
empt from SEC registration) to holders of the outstand¬
ing shares of such stock of record Aug. 30, 1960, on the
basis

■

a new

sometime in October.

000 of debentures

Columbia

York.

The Bank

(9/26-30)

Thursday, September 15, 1960

Office—Washington, D.

Maher

Aug. 26, 1960 filed 15,000 shares of class B capital stock.
Price—$100 per share. Business—The firm sells adver¬
tising and display devices. Proceeds—For starting the

(letter of

common

ital.

Advertising Corp.

derwriter—None.
•

land, construction of

11th

Ave., South, Nashville, Tenn.
Underwriter—Jay W. Kaufmann & Co., New York City.
Offering—Expected in early November.
Cinestat

sold

offered for public sale,

promoters. Price—For
offering, $2 per share. Proceeds—To repay a
for salaries, operating expenses, purchase of

per

•

(G. C.) Dewey Corp. (10/17-21)
Aug. 25, 1960 filed 64,500 shares of outstanding
stock

(par

ment.

Business

common

cent). Price—To be supplied by amend¬
Missile and electronics research and
development work for the Government. Proceeds — To
one

—

selling stockholders. Office—202 E. 44th St., New York
City. Underwriter—None. Agent—The Empire Trust Co.
of New York will receive

subscriptions.

Volume

192

Number 5986

The Commercial and Financial Chronicle

(1079)
Diversified

Realty Investment Co.

April 26 filed 250,000 shares of

writers.
stock.

common

Prices—Of class A common, $2 per
share; of
additional class A common, 2V2 cents per share. Proceeds
—To expand the company's

Price—

$5 per share (par 50 cents). Proceed^ — For additional
working capital. Office—919 18th Street, N. W., Wash¬
ington, D. C. Underwriter—Ball, Pablo & Co., Washing¬
ton, D. C.
■;
^

Dorsey Corp.

•

inventory to go into the
packaging and export of electrical equipment, and for
working capital. Office—1346 Connecticut Ave., N. W.,

Washington, D. C. Underwriter

(10/17-21)

shares. Price—For the 140,000 shares, $12 per
share; for the 350,000 shares the price will be supplied
by amendment. Business—The design, manufacture, and
distribution of all types of highway trailers except those

—To

stock

* Electro-Science Investors, Inc. (10/17-21)
Sept. 7, 1960, filed 772,000 shares of common stock
(par $1). Price—To be supplied by amendment/Business
—The

is a non-diversified, closed-end,
agement investment company, and has not as yet

phia, Pa. Underwriter — Warner, Jennings, Mandel &
Longstreth, Philadelphia, Pa. (managing). Offering —
Expected sometime in October.

Co.

Proceeds—To start the business.

(9/19-23)

1960, filed
$1). Price—To be
Engaged primarily
and distributing its
cipally under the

260,000 shares of capital stock (par
supplied by amendment. Business—
in importing, processing, packaging
own blended coffees, marketed prin¬
trade names "Maryland Club" and
"Admiration." Proceeds — To pay $2,050,000 aggregate
principal amount of senior subordinated debentures ma¬
turing Dec. 31, 1960, and the balance toward the reduc¬
tion of outstanding trade acceptances of the company.
Office—1200 Carr St., Houston, Texas. Underwriter—
Bear, Stearns & Co., New York City,

—

Electronic
June

—To

added

the

general funds in anticipation of
possibly to include acquisitions.
Office—5121 San Fernando Road, Los Angeles, Calif.
Underwriters—Reynolds & Co., Inc. of New York City

capital

requirements,

and

Bateman, Eichler & Co. of Los Angeles, Calif.'Offer¬
ing—Indefinitely postponed.

Dynamic Center Engineering Co., Inc.
June 20," 1960 (letter of notification)
37,450 shares of
common stock
(par $1). Price—$4 per share. Proceeds
—To promote the sale of new products, for the purchase
of additional equipment and working capital. Address—

★ Elevator Electric Inc. '"7

7'';
(letter of notification), 100,000 shares of

Sept.

1, 1960
stock (no par). Price—$3 per share. Proceeds—
acquire a building site, to construct a new building
and for working capital.
Office—21st St. and Imperial
common

Norcross, Ga.
Underwriter—Gaston-Buffington-Waller
Inc., Atlanta, Ga., has withdrawn as underwriter.
Dynatron Electronics Corp.

Specialty Co.
filed 150,000 shares of common stock (par 50
Price—To be supplied by amendment. Proceeds

cents).

•

April 29,

Ave., San Diego, Calif. Underwriter—Norman C. Roberts
Co., San Diego, Calif.

Business

Ennis

(letter of notification) 100,000 shares/of
common stock
(par 10 cents). Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Office—178 Herricks Road, Mineola, N. Y. Underwriter—General Securi¬
ties Co., Inc., New York, N. Y. Note—The underwriter
1960

Forms, Inc.

Knox

St., Ennis, Texas. Underwriter—Kidder, Peabody

Co., New York City.

•

East Alabama Express, Inc.
April 1 (letter of notification) 77,000 shares of common

(par

(9/26-30)

July 14, 1960, filed 74,546 shares of outstanding common
stock (par $2.50). Price—To be supplied by amendment.
Proceeds—To selling stockholders. Office — 214 West

states that this letter will be withdrawn.

stock

Office—727 South Cen¬

Expressway, Richardson, Texas.
Underwriters—
Kidder, Peabody & Co., New York City, and Rauscher,
Pierce & Co., Inc., Dallas, Texas (managing).

Electromedia, Inc.
Aug. 26, 1960 (letter of notification) 100,000 shares of
common stock (par $2). Price—$3 per share. Proceeds—•
To advertise and for payroll and working
capital. Office
—6399 Wilshire Blvd., Suite 812, Los Angeles, Calif.
Underwriter
Baron, Black, Kolb & Lawrence, Inc.,
Beverly Hills, Calif.

Aug. 4,

•

com¬

tral
.

■

man¬

its business of furnishing equity capital and
advisory services to small buisnesses in scientific fields.

corporate purposes. Office—235 Penn St.,
N. J.
Underwriter -— Woodcock, Moyer,

Coffee

Duncan

company

menced

ic Dubrow Electronic Industries, Inc.
Sept., 7, 1960 (letter of notification) 100,000 shares of
common stock (par 10 cents.) Price—$3 per share. Busi¬
ness—Electronic equipment for military use. Proceeds—

■

Fairmount Finance Co.

(9/19-23)

■

$1).

Price—$2.50 per share. Proceeds—To
payable, reduce equipment purchase obliga¬
tions, accounts payable and for working capital. Office
—409 M Street, Anniston, Ala.
Underwriter—First In¬
vestment Savings Corp., Birmingham, Ala.

Road, Fairmount Heights, Md. Underwriter—J. T. Pat¬
terson & Co.,. Inc., 40 Exchange Place, New York, N. Y.

•

Aug. '4,

East

Central

Racing and

Breeders

Inc.

Farm & Home Loan & Discount Co.

Association,

class A

(9/30)

Each unit will consist of one share and one warrant for
the purchase of an additional share exercisable within
12 months. Price—$3.50
per unit. Proceeds—First step'in
the management's program if this
financing is successful
and after allocating
$10,000 to finishing a training track

•

offered

common

for

stock

subscription
on

the basis of

holders

one

shares held. Price—To be supplied by amendment. Busi¬
construction, development and management
funds

for

Yonkers, N. Y.
•

Proceeds—To be added to the gen¬
working capital and general corporate

Office—6L

purposes.

Mall

Walk, Cross County Center,

Underwriter—None.

;

Fiber

ceeds—For

general

Price—$3.50

corporate

July

share.
Pro¬
including sal¬

aries, sales promotion, moving expenses, and research
and development work.
Office—715 Camp Street, New

Orleans, La. Underwriter—Sandkuhl
New York City and
Newark, N. J.

Electro

July

19,

class A

tional class A

stock

common

75,000 shares of
(no par) and 20,000 shares of addi¬
stock to be offered to the under¬

50 Terrace St.,

Co., Inc.,
Expected in late

Glass

Industries

—

Corp. of America

1960

stock

purchase material, repayment of a loan, for adver¬
tising and promotion and for working capital. Office—
730 Northwest 59th St., Miami, Fla. Underwriter—Nelson
Securities, Inc., Hempstead,

Industries, Inc.
(letter of notification)

1960

common

—

—To

Company, Inc.,
(

21,

common

per

purposes

working capital. Office

(letter of notification) 100,000 shares of
(par 10 cents) of which 80,000 shares are
to be offered on behalf of the company and 20,000 on
behalf of the underwriter. Price—$3 per share. Proceeds

issuing company and 15,000 shares, representing out¬
standing stock, are to be offered for the account of the
thereof.

Chicago, 111. (managing). Offering
September to early October.

(9/19-23)
April 8 filed 85,000 shares of common stock of which
70,000 shares are to be offered for the account of the

holders

added

Newark, N. J. Underwriter—H. M. Byllesby &

Edwards Engineering Corp.

present

supplied by amendment. Proceeds—To acquire the cash
necessary to complete the Pioneer payment (see above),
with the balance to retire short-term bank loans, and

shopping centers.

eral

•

Florida Hillsboro Corp.
(10/3-7)
Aug. 16, 1960 filed $1,000,000 of junior lien bonds, 7%
series, due 1975, and 150,000 shares of common
stock,
to be

offered

N. Y.

First Connecticut Small Business
|

in units of

stock.

common

Also

stock.

common

property

$500 bond and 75 shares of

filed

were
120,000- shares
of
Price—For the units, $500 per
unit; for
shares, $1 per share. Proceeds
For
—

improvements, the

repayment of

and the balance for

indebtedness,

working capital. Office—Ft. Lauder¬
dale, Fla. Underwriters—P. W. Brooks & Co. Inc. and
Higginson Corp. (for the common only), both of

Lee

New York City.

• Florida Power Co. (10/20)
Sept. 8, 1960, filed $25,000,000 of first mortgage
bonds,

due 1990.

Proceeds

—

For

new

construction and repay¬

ment of bank loans.

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); First Boston

Corp.; Eastman Dillon, Union Securities & Co. and
Harriman Ripley & Co.
(jointly); Lehman Brothers and
Blyth & Co. (jointly). Information Meeting—Scheduled
for Oct.

17 at 11:00 a.m. at Morgan
Guaranty Trust Co.
Bids—Expected to be received on Oct. 20.
.*>

Foto-Video Electronics Corp. (9/19-23)
April 26 tiled 125,000 shares of class B stock.

share.

per

Proceeds—$100,000 for research

de¬

velopment, $200,000 for working capital, and the balance
for sales promotion expenses.
Office — Cedar Grove,
N. J. Underwriter—Fund
Planning, Inc., New York City.
•

Four Star Television

(9/26-30)
July 27, 1960 filed 120,000 shares of
Price—To be supplied by amendment.

capital stock.
Business—The

and its subsidiaries will produce and market

company

television film series and related
—For general corporate purposes.

enterprises.

Proceeds

Office—4030 Radford

Ave., North Hollywood, Calif. Underwriter—DempseyXegeler & Co., St. Louis, Mo. (managing).
Franklin

Discount Co.

Aug. 23, 1960,-filed $300,000 of 8% subordinated convert¬
ible debentures, due serially
1966-1968, and $300,000 of
8% subordinated capital notes due eight years, eight
months and eight days after date of issue.
Prices—At
par. Business—The company is engaged in the consumer
finance
in the

small

loan

purchasing of

business, and, to a lesser extent,
boat, and appliance installment

car,

sales contracts from dealers.

Proceeds—For general cor¬

porate purposes. Office—105 North Sage Street, Toccoa,
Ga.
Underwriter—None.

Frouge Corp.
July 22, 1960 filed $1,500,000 of 6%% convertible sub¬
ordinated debentures, due September 1975, and
150,000
shares of common stock (par $1), of which
filing 50,000
common shares are to be offered for the account
of selling stockholders and the balance for the account
of the issuing company. Price — To be supplied
by
amendment. Business—The company is engaged in the

construction
as

business, both

builder for its

own

general contractor and

account.

Proceeds

For debt

—

Office—141 North Ave.,
Underwriter—Van Alstyne, Noel &

Bridgeport, Conn.
Co., New York City (managing). Offering—Expected in
late September.

ic (Connie B.) Gay Broadcasting Corp. (11/1)
Sept. 9, 1960 filed 130,000 shares of common stock (par
$1).

Price—To

supplied by

amendment.

Business—

The company and its subsidiaries own and operate radio
and television stations. Proceeds—For the acquisition of
a
television station and two radio stations in Missouri.
Office

—

4000 Albemarle

Underwriter

—

St., N. W., Washington, D. C.
Hill, Darlington & Co., New York City

Investment Co.

Aug. 12, 1960 filed 225,000 shares of common stock (par
$1). Price—$10 per share. Proceeds—To retire $150,000
of

debentures, and for capital for loans

for small busi¬

General Sales

Corp.

April 28 filed 90,000 shares of common stock

(par $1).

Price—To be supplied by amendment. Proceeds—$75,000
will be used for additional working capital, inventories
and facilities for the Portland Discount

Center; $75,000
in the Salem Center; and $50,000
to provide working capital for General Sales Acceptance
Corp. for credit sales to member customers.
The bal¬
for the

ance

same

purposes

of the proceeds

Oregon

will be used to open two new stores
and Idaho. Office — 1105 N. E. Broadway,

Portland, Ore. Underwriter — Fennekohl & Co.. Inc.,
Offering—Expected some time in October.

New York.

^ Glastron Boat Co.
Aug. 29, 1960 (letter of notification)
common

stock.

Price

12,500

At-the-market

(not to exceed
$50,000). Proceeds—To go to a selling stockholder. Office
—920 Justin Lane, Austin, Tex. Underwriter—None.
—

Glen Manufacturing, Inc.
Aug. 8, 1960 filed 125,000 shares of common stock, of
which 100,000 shares are to be offered for the account
of the issuing company and 25,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price—$10 per share. Busi¬
ness—The company makes and sells ladies' clothes, fabric
covers for bathroom fixtures, and, through Mary Lester
Stores, yard goods, sewing supplies, decorating fabrics,
and various notions. Proceeds—For working capital, in-

Continued

-J

Price—
and

(managing).

Aug. 2, 1960 filed 377,000 shares of common stock and
$45,000 shares of outstanding 5%% convertible second
preferred series A stock, of which 127,000 common
shares represent part of the issuer's payment for all of
the outstanding common of Pioneer Electric Limited.
The balance will be offered publicly. Price - To be

To pay

c/o Robert R.

—

•

Federal Pacific Electric Co.

ness—The
of

stock

general corporate purposes. Office—134-20 Jamaica
Jamaica, N. Y. Underwriter — J. B. Coburn
Associates, Inc., New York, N. Y.

stock to

outstanding

selling stockholder. Price—$2 per share.
off debts and for working capital.
Chesley, 1235 E. Florence Ave.,
Los Angeles, Calif.
Underwriter—Arthur B. Hogan, Inc.,
Burbank, Calif.
Office

Avenue,

share for each 3

new

the

—

For

$22,500 each.
$200,000 has been allocated for construc¬
tion of a building covering an
indoor, training track
and $74,000 for
working capital. Office — Randall, N. Y.
Underwriter—None.
v.:.

(9/26-30)

(letter of notification) 150,000 shares of
(par 10 cents).
Price — $2 per share
Business—Manufacture of electronic devices.' Proceeds—

accommo¬

common

Electronics, Inc.

1960

31,

common

An additional

Eastern Shopping Centers, Inc.
Aug. 15, 1960, filed 1,048,167 shares of

Federated

Aug.

surface and $25,000 to property accruement and mainten¬
ance, is the construction of about 15 stables to
date 32 horses each at an estimated cost of

common

stock, and 50,000 shares of class C common stock, to be
sold to policyholders of the company. Price—Class A, 25
cents per share; class B, 35 cents per share, and class C,
50 cents per share. Proceeds—For working capital. Of¬
fice—2225 N. 16th St., Phoenix, Ariz. Underwriter—None.

July 5, 1960, filed 200,000 units of 200,000 shares of cap¬
ital stock and
200,000 warrants to purchase capital stock.

Proceeds

reduction and working capital.

(letter of notification) 125,000 shares* of
stock; 50,000 shares of class B common

1960

5, 1960 (letter of notification) 150,000 shares of
capital stock (no par) of which 112,500 shares are
being
offered
by the company and the remainder for the

of the

(letter of notification) 58,000 shares of class A
common stock
(par $5), Price—At par ($5 per share).
Proceeds—For
working capital.
Office—5715 Sheriff
May 6

repay notes

St., Bridgeport, Conn. Under¬

July

120,000

Underwriter—A. J. Taranto & Co., Carmichael, Calif.

product development ($100,000), payment of notes ($16,000), and working capital ($395,740). Office—Philadel¬

Burlington,
Fricke & French, Inc., Philadelphia, Pa.,

mobile

250,000 shares of
common stock. Price—At
par ($1 per share). Proceeds—
To purchase new
equipment, rental and for administra-,
tive costs. Office—115 Washington
Blvd., Roseville, Calif.

(no
par). Price—$6 per share. Business—Research, develop¬
ment, and production in the fields of mechanics, elec¬
tronics, optics, and functional systems. Proceeds—The
net proceeds, estimated at $511,740, will be used for

general

additional

★ Electro-Nuclear Metals, Inc.
Aug. 31, 1960 (letter of notification)

Dynamics Corp.
common

for

Main

writer—Grimm & Co. of New York
City.
Fleetcraft Marine Corp.

account

field research test laboratory
laboratory equipment. Address—
P. O. Box 1767,
Titusville, Fla. Underwriters—Oppenheimer & Co., New
York, N. Y.; Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.; Security Associates, Inc.,
Winter Park, Fla., and George, O'Neill &
Co., Inc.,
Miami, Fla.

corporate purposes. Office — 485 Lexington Ave., New
York City. Underwriter—Blair &
Co., Inc., New York
City (managing).
•
Aug. 26, 1960 filed 100,000 shares of

purchase

and

carrying liquids. Proceeds—$7,000,000 will be supplied
to the purchase of all the outstanding capital stock of
Chattanooga Glass Co., with the balance for general

For

Securities

★ E.ectro-MscSnanical Systems, Inc.
Aug. 31, 1960 (letter of notification), 33,333 shares of
common stock (par 12V20).
Price—$6 per share. Proceeds

common

Drexel

Carleton

Corp., Washington, D. C.

Sept. 1, 1960 filed $3,500,000 of 6V2% sinking fund de¬
bentures, due October, 1975, with warrants for the pur¬
chase of 140,000 common shares, together with
350,000

—

Office—955

nesses.

page

■17

-36

The Commercial and Financial Chronicle

(1080)

Grand

Thursday, September 15, 1960

Business—The principal business of the company,

from page 35

eluding initially, the reduction of short term bank loans
which aggregated $2,650,000 on July 25. Office—320 East
Buffalo St., Milwaukee, Wis. Underwriter—Loewi & Co.,
Milwaukee, Wis. (managing).
Glickman Corp.

1960 filed 400,000 shares of class A common
$1). Price—$10 per share. Business—The com¬
pany, organized in May, 1960, plans to engage in the
real estate business. Proceeds — For general corporate
Aug.

19,

stock (par

Office—565 Fifth Ave., New York City. Under¬
writer—Morris Cohon & Co., New York City. Offering-

251

was

Continued

Stearns & Co., New York City

which
organized under Kansas law in June, 1959, will be

the

owning,

and

leasing of improved and unimproved real property. :y

acquiring,

Proceeds—To

reduce

improving,

funded

debt.

engaged in real estate financing and lending. Proceeds
—For
general
corporate
purposes.
Office — 409
N.

Nevada, Colorado Springs, Colo.

Expected in mid-October.

-V."

•y'V.-

ceeds

For general corporate purposes.

—

Office

—

c/o

Joseph Frost, 280 Broadway, New York, N. Y. Under¬
writer—S. P. Levine & Co., Inc., New York, N. Y.

it Green Shoe Manufacturing Co. (10/20)
Sept. 9, 1960 filed 420,000 shares of common stock (par
$3), of which 45,000 shares are to be offered for the ac¬
count of the issuing company, 355,000 shares, represent¬
ing outstanding stock, are to be offered for the account
of the present holders thereof, and 20,000 shares have
been granted to the underwriters on an option basis.
Price—To be supplied by amendment. Business — The
company
makes and sells children's shoes under the
trade

name

Rite

Stride

"The

Shoe."

Proceeds—For

including plant improve¬
ment. Office—960 Harrison Ave., Boston, Mass. Under¬
writers
Paine, Webber, Jackson & Curtis and F. S.
Moseley & Co., both of New York City (managing).
general

corporate

purposes,

—

Gulf Resources,

Inc.

in Zapata and Starr Counties, Texas. Proceeds
general corporate purposes.
Office —20 Broad
Street, New York City. Underwriter—Amos Treat & Co.,
Inc., New York City. Offering—Expected sometime in
ural

gas

For

;■?

(10/4)

Inc.

Industries,

Gulton

tronic, electro-mechanical and electro-acoustic compo¬
nents, instruments and equipment, which are sold to
military and commercial manufactures. Proceeds—To be

for requirements including
additional working capital for inventories and accounts
receivable. Office — 212 Durham Ave., Metuchen, N. J.
Underwriters—Lehman Brothers and G. H. Walker &
added to the general funds,

Co., both of New York City (managing).
•

Hahicrafters

(9/20)

Co.

July 22, 1960 filed 300,000 shares of capital stock (par"
$1), of which 100,000 shares are to be offered for the
account of the issuing company and the balance, repre¬
senting outstanding stock, is to be offered for the account
of the

present holders thereof. Price — To be supplied
by amendment.
Business — The research, develop¬
ment, and manufacture of military electronic equip¬
ment, and the commercial manufacture and sale of short¬
wave sending and receiving equipment. Proceeds—For
working capital, including the reduction of indebtedness
by $1,000,000. Office—4401 W. Fifth Ave., Chicago,, 111.
Underwriter—Paine, Webber, Jackson & Curtis (manag¬
es).

•V•;: i;/ ^

I C Inc.

■

shares of common stock (par $1)
Price—$2.50 per share. Proceeds—To further the corpo¬
rate purposes and in the preparation of the concentrate
and

enfranchising of bottlers, the local and national proand advertising
of its beverages, and where
necessary to make loans to such bottlers, etc. Office—
704 Equitable Bldg., Denver, Colo. Underwriters— Pur

motion

vis

Co.

and Amos

Sudler &

Co., both of Denver,

Offering—Expected in early October.

common

stock (par $1).

Price—$3 per

100,000 shares of
share. Proceeds—

To reduce accounts payable, purchase inventory, manu¬
facturing of molds, for construction and working capital.
Office—40

Spruce St., Leominster, Mass.

None.
Hawaiian

Electric

Underwriter—
I/;.;-

ord

Aug. 23, with rights to expire at 12 noon on Sept. 27.
Price—$49 per share. Proceeds—For capital expendi¬
Office—900

Richards

St., ^Honolulu, Hawaii. Un¬

derwriter—None.
•

Pacific Industries, Inc.
29, 1960, filed $1,350,000 of 6Vz% convertible sub¬

ordinated

debentures, due September, 1970, and 100,000
shares of common stock. Price—Debentures, at 100% of
principal amount; common stock at a maximum of $10

per

share. Proceeds

For construction

—

per

Heldor Electronics

common

Manufacturing Corp.

1960

(letter of notification) 100,000 shares of
(par 10 cents). Price—$3 per share. Pro¬
general corporate purposes.
Office — 238

stock

ceeds—For

Lewis Street,

Paterson, N. J. Underwriter—S. Schramm
& Co., Inc., New York, N. Y.

Helicopters, Inc.
May 19 (letter of notification) 60,000 shares of

common

•tock

(par $1). Price —$5 per share. Proceeds —For
of equipment, tools, inventory and working
capital. Office—Heliport, Stapleton Airfield, Denver 2,
Colo. Underwriter—Insurance
Stocks, Inc., Denver, Colo.

purchase

Offering—Expected in September.

•

filed

to be offered in units

—

one

$1,000 debenture

To be supplied

ment company, which will become an
open-end company
with redeemable shares upon the sale and issuance of

the

being registered.

Proceeds—For investment

in U. S. Government securities.

Office—50 Broad Street,
New York City. Underwriter—To be
supplied by amend¬
ment.
Attorneys — Brinsmade & Shafrann, 20 Pine

it Jahncke Service Inc.
Sept. 3, 1960 filed 156,200 shares of common stock, of
which 121,200 shares are to be offered for the account
of the company and 35,000 shares by the present holders
thereof. Price—To be supplied by amendment. Proceeds
—For acquisitions and working capital. Office—New Or¬
leans, La. Underwriter — Hemphill, Noyes & Co., New
York City (managing).

200,000

Office—200 South Craig Street, Pittsburgh,
Underwriters—Amos Treat & Co., Inc., New York,

Indian Head

Mills, Inc.

and

(9/26-30)

duction and distribution of
for fabric converters.

York

Kaynar Inc.
Aug. 24, 1960 filed 300,000 shares of
which

City, Room 238.

fabrics, and related services

amendment.

Keller

Aug.

Intercoast

account

working capital.

Office—

N. Y.

Kent

July 20,
common

Publishing Co., Inc.
1960 (letter of notification) 50,000 shares of
stock (par $1). Price—$1.10 per share. Proceeds

•

short term note and for general corporate

Office—619

purposes.

Companies, Inc.

stock, of

stock

N.C,

Co., Inc.

the

of notification) 75,000 shares of
(par $1). Price—$4 per share. Proceeds—
Foj* working capital. Office—101 Bradley Place, Palm
Be&ch, Fla. Underwriter—Casper Rogers Co., New York,

Southeastern

Bldg.,

Greensboro,

Underwriter—McCarley:& Co., Inc., Asheville, N.C.

•
Kings Electronics Co., Inc. (19/20) / !
May 26 filed 200,000 shares of common stock (par 19
cents) and 100,000 common stock purchase warrants.'

notes, new machinery, additional inventory, and the bal¬
ance for working capital. Office —
Miami, Fla.
Under¬
writer—Schrijver & Co., New York City (managing).
•

26,

common

—To retire

Industrial Hose & Rubber

be offered for

Corp.
1960 (letter

p.m.

Aug. 31, 1960 filed 125,000 shares of common stock. Price
—$4 per share. Proceeds — Toward the repayment of

Proceeds—For

Sept. 8.

Pico-Rivera, Calif. Underwriter — William R. Staats &
Co., Los Angeles, Calif. Note—The filing was withdrawn

by appointment, at the
Bank, 43 Exchange Place, New York
'

are

issuing company and 200,000 shares, representing
outstanding stock, are to be offered for the account of
the present holders thereof. Price—To be
supplied by

Proceeds—To selling stockholders.

and 5:00

a.m.

Manhattan

100,000 shares

common

of the

City (managing).

between 9:30

■

Indianapolis Power & Light Co. (9/27)
Aug. 25, 1960 filed $12,000,000 of 30-year first mortgage
bonds. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers; Goldman, Sachs & Co., ahd^The First
Boston Corp. (jointly); Eastman Dillon, Union Securities
& Co.; White, Weld & Co., and Shields & Co.
(jointly);
Blyth & Co., Inc.; Equitable Securities Corp. Bids—Ex¬
pected to be recieved up to 11 a.m. (New York Time) on
Sept. 27. Information Meeting—Scheduled for Sept. 22
Chase

Vaughan & Co., Wilmington, N. C.

•

Office—111 W. 40th Street, New York City. Underwriters
—Blair & Co. and F. S. Smithers & Co., both of New

The company proposes to offer these securities for public
sale in units, each consisting of one share of common
stock

and one-half common stock purchase warrant.
Price—$4 per unit. Proceeds—$165,000 will be applied
to the repayment of certain loans, $75,000 for develoi>ment and design work by a subsidiary in the field of

(10/5)

Aug. 16, 1960 filed 110,000 shares of common stock. Price
—To be supplied by amendment. Proceeds—To pay the
balance due on the purchase of Western Life
shares, and

infra-red

instrumentation, $100,000 for continued re¬
the design, development and production of

the balance will be added to the general funds to finance

components for microwave instruments, and the balance
for working capital. Office—40 Marbledale Road, Tuck-

development of general life insurance agency and for
working capital. Office—Sacramento, Calif. Underwriter
—Schwabacher & Co., San Francisco, Calif, and New
York City, v
Vf.v';
International Diode Corp.

July 29, 1960 filed 42,000 shares of 6% non-cumulative
convertible preferred stock (par $8). Price — $8 per
Business—Makes

establish
nance

new

staff

and

sells

diodes.

Proceeds—To

Underwriter—Schrij¬

ver

and

one

by amendment.

(letter

it Interstate Vending Co. (10/17-21)
Sept. 7, 1960, filed 235,000 shares of common stock
(par $1), of which 200,000 shares will be offered for the
account of the issuing company and 35,000 shares, repre¬
senting outstanding
stock, will be
offered for the
account of the present holders thereof.
(The registration
statement includes an additional 206,250 shares, all out¬
standing, of which 100,000 shares may be offered at the
market

from

106,250

time

have

time.

advised

The

the

holders

issuing

the

company

present disposition of their shares is planned.)

—To

Co., New York, N. Y.

account of the

issuing company and 45,330 shares, repre¬
senting outstanding stock, are to be offered for the ac¬
count of the present holder thereof.; Price—To be
sup¬
plied by amendment. Business—The company makes op¬
tical equipment,

including submarine periscopes, torque
motors, and other electro
mechanical and electronic
equipment. Proceeds—To redeem all of the outstanding
7% cumulative
preferred; for bank debt reduction; to
repay outstanding first
mortgage,-note; for machinery
and equipment; to
pay a promissory note; and for work¬
ing capital. Office
347 King St.,
Northampton, Mass.
Underwriter
Putnam & Co.,
Hartford, Conn, (manag¬
ing.) Offering—Expected in early October.
-

other

that
Price ;

supplied by amendment. Business—The com¬
pany sells various products through coin-operated vend¬
ing machines in 22 States/and designs and makes certain .
vending machines for its own use. Proceeds—For acqui-'
sitions, working capital, and new equipment. Office—

Kollmorgen Corp.
July 29, 1960 filed 80,330 shares of common stock (par
$2.50) of which 35,000 shares are to be offered for the

(9/19-23)
notification) 60,000 shares of
class A common stock (par $2).
Price—$5 per share.
Proceeds—To retire outstanding loans, purchase of plant¬
ing seed, lease or purchase land, building and machinery
and for working capital. Office — 350 Equitable Bldg.,
Denver, Colo. Underwriter — Copley & Co., Colorado
Springs, Colo.
1960

(9/26-30)

1960

ness—Distributors of silver sensitized photo copy papers,
chemicals and engineering photo reproduction materials.
Proceeds—For general corporate purposes. Office—470
Clinton Ave., S.,
Rochester, N. Y.

development, buy

Inc.

(letter of notification) 149,000 shares of
class A stock (par one cent). Price—$2 per share. Busi¬

International Safflower Corp.

Aug.

N. Y.
Underwriters — Ross, Lyon & Co., Inc.;
Globus, Inc.; Reich & Co.; Harold C. Shore & Co. and
Godfrey, Hamilton, Magnus & Co., all of New York City.
Klondex

production and sales engineers, fi¬

product

ahoe,

Sept.

equipment, and
working capital. Office—90 Forrest St., Jersey
City, N. J. Underwriter—Ernst Wells, Inc., New York
City.,
add

Hilltop, Inc.
Aug. 17, 1960 filed $1,650,000 of 6% subordinated deben¬
tures, due 1980, and 1,650 shares of class A common stock,
class A share. Price

1960, filed 400,000 shares of common stock.
$25 per share. Business — A diversified invest¬

Proceeds—To

Aug. 10, 1960 filed 60,000 shares of outstanding common
stock (par $1), of which 50,000 shares are to be offered
for the account of present holders, and the remaining
shares being registered pursuant to an option agreement.
Price—To be supplied by amendment. Business—Pro¬

new

(9/26-30)
June 29,

—

share.

...

expenses,

equipment, reduction of indebtedness, and the acquisi¬
tion of properties. Office — Honolulu, Hawaii.
Under¬
writers—Bosworth, Sullivan & Co. and Lowell, Murphy
& Co., both of Denver, Colo. Offering—Imminent.
•

22,

Price

shares of outstanding common
selling stockholders.
Price—$10 I holders. Price—$5 per share. Proceeds — For working
capital. Office — 114 N. Greene St., Greensboro, N. C.
Pa.
Underwriters—United Securities Co. and Allied Securi¬
and Bruno Lenchner, Inc., Pittsburgh, Pa. Offering—
ties Corp., Greensboro, N. C.; McCarley & Co., Inc.,
Expected sometime in October.
Asheville, N. C.; J. Sturgis May & Co., High Point, N. .C.
29

stock.

share.

Hawaiian

June

July

the

Co., Ltd.

July 25, 1960 filed 116,643 shares of common stock being
offered to holders of the outstanding common on the
basis of one new share for each eight shares held of rec¬

tures.

Irving Fund for Investment in (J. S. Government
Securities, Inc.

Kavanagh-Smith & Co.
Aug. 29, 1960 filed 145,000 shares of common stock (par
$1) of which 30,000 shares are to be offered by stock¬

Illinois Beef, L. & W. S., Inc.

^ Harvey (Guy P.) & Son Corp.
Sept. 1, 1960 (letter of notification)

Fund, Inc. ■./•V;-;..
14, 1960, filed 100,000 shares of common stock.
Price—$10 per share, in 100-share units. Business—The
company, which has not as yet commenced operations,
intends to offer investors a chance to participate in
diversified real estate ventures. Proceeds—To purchase
all or part of the Falls Plaza Shopping Center, Falls
Church, Va. Office—1823 Jefferson Place, N. W., Wash¬
ington, D. C. Underwriters—Investors Service Securities,

Street, New York 5, N. Y.

■+: i'':M

June 29 filed 600,000

Colo.

Bear,

Inc., and Riviere Marsh & Co., both of Washington.

Underwriter—None.

■

—

July

Corp.

—

October.

Aug. 11, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The research, development and manufacture of elec¬

Land

(10/24-28)
Aug. 29, 1960 filed $1,500,000 of 7% subordinated con¬
vertible debentures, due October 1970, and 150,000 series
III, common stock purchase warrants, to be offered in
units consisting of a $1,000 debenture and 100 warrants.
Price
$1,000 per unit.
Business — Buying and selling
land. Proceeds—For general corporate purposes, includ¬
ing land acquisition and advertising expenses. Office—
Tucson, Ariz. Underwriter—Ross, Lyon & Co., Inc., New
York City.
: «>;

April

Sept. 2, 1960 filed 140,000 shares of common stock (par
10 cents). Price—$8 per share. Business—Gathering nat¬
—

Horizon

Ave., Chicago, 111. Underwriter
(managing). ■'

Investor Service

Colum¬

Home Builders Acceptance Corp.
July 15, 1960 filed 1,000,000 shares of common stock (par
50c). Price—$1 per share. Business—The company is

•

Office—401

bian Bldg., Topeka, Kan. Underwriter—None.

purposes.

it Great Atlantic Development Corp.
Sept. 8, 1960 (letter of notification) 160,000 shares of
common stock (par one cent). Price—$3 per share. Pro¬

developing,, selling,

—

Lawndale

Industries, Inc.

AuJ>- 15, I960 filed 100,000
$5
per

shares of class A stock. Price

share. Business—The manufacture of
porcelain
plumbing fixtures. Proceeds
For the

enameled steel

—

construction and

equipping of a new plant, and the re¬
outstanding bank loans. Office
Haven &
Russell Aves.,
Aurora, 111. Underwriter—Paul C. Kimball'
& Co. of
Chicago, 111. - '
v
r
•
* duction

—

Volume 192

Number 5986

The

Commercial and Financial

Leadville Water Co.

June 28,

1960 (letter of notification) $220,000 of 20-year
6% series A first mortgage coupon bonds to be offered
in denominations of $1,000. Price—At par. Proceeds—
For
of

mortgage payment, outstanding notes, construction
water supply and general corporate purposes.

new

Office—719 Harrison

Ave., Leadville, Colo. Underwriter

—H. M. Payson & Co., Portland, Me.

1960 (letter of notification) 135,000 shares of
stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—To expand operations. Office—3628 Rhawn
St.,
Philadelphia, Pa. Underwriter — Atlantic Equities Co.,
14,

common

Washington, D. C.

reduce

indebtedness,* complete Garfield Lanes in

Jersey City, N. J., and for working capital.

Office—4650

Broadway, New York City. Underwriter—Marron, Sloss
& Co., Inc., New York City (managing).
.

Lifetime Pools Equipment Corp.
(9/30)
July 1, 1960, filed 100,000 shares of common stock. Price
—To be supplied by amendment.
Business—Engaged in
the

manufacture

and

selling

fiber

glass

swimming

pools.

Proceeds—$125,000 will be used to purchase ma¬
chinery
and
equipment; $200,000
to
purchase
raw
materials, parts and components; $40,000 for sales and
advertising promotion; $30,000 for engineering and de¬
velopment; and the balance will be added to working
capital. Office—Renovo, Pa. Underwriter—First Penn¬
ington Corp., Pittsburgh, Pa. v

Box

19,

nated

(10/3-7)

June 10, 1960, filed 670,000 shares of common stock

(par
to be issued by Louisiana Power & Light Co. to
stockholders of Middle South Utilities, Inc., on the basis

$10)
of

share of Louisiana Gas Service Co.

one

for each 25 shares of

(with

common

additional

common

privilege).

present

holders

thereof.

and

Price—To be

For working

microwave

1959-60

opment.

Office

—

Metropolitan Development Corp.

ments

the

company's

repayment of
loans, and the balance to be added to the general funds
for

construction

property,

for

acquisitions. Office—Los
Angeles, Calif; Underwriters—William R. Staats & Co.,
of Los Angeles,
Calif., and Bache & Co. and Shearson,
Hammill & Co., both of New York City. Offering—In¬
definitely postponed.
•

Miami

purposes

and

Ventilated

Awning Mfg. Co., Inc.
(letter of notification) 150,000 shares of
stock (par $1). Price—$2 per share.
Proceeds—To retire loans, purchase new machinery, open
a new office and for
working capital. Office—1850 N. E.
144th St., North Miami, Fla. Underwriter — Plymouth
Bond & Share Corp., Miami, Fla. Note—This letter was
withdrawn on Aug. 15.
June 29,
class A

1960

common

• Mid-States Business Capital Corp.
Sept. 9, 1960, filed 750,000 shares of common stock
(par $1). Price—To be supplied by amendment. Business
The company will invest in small business concerns.
Proceeds—For general corporate purposes. Office—411
N. 7th St., St. Louis, Mo.
Underwriters—Carl M. Loeb,
Rhoades & Co., New York City,

alid Scherck, Richter Co.,

new

short-term

reduce

for

construction

for each eight
by amendment. Pro¬

bank

loans

incurred

Underwriters

expenses.

Merrill

—

Mohawk Insurance Co. (9/30)
Aug. 8, 1960, filed 75,000 shares of class A common stock.
Price—$12 per share. Proceeds—For general funds. Of¬
fice—198

Broadway, New York City. Underwriter—R. F.
Dowd & Co. Inc., 39 Broadway, New York 6, N. Y.
•

Nafi

Corp.
.Aug. 23,11960 filed -$7,500,000 of 20*year convertible sub¬
ordinated debentures due 1980. Price—To be supplied by
amendment. Proceeds—To pay part of instalment to be¬
come due for the purchase of Chris-Craft stock. Office—
527 23rd Ave., Oakland, Calif. Underwriters—Shields &
Co. and Lehman Brothers, both of New York City (man¬
aging)! Offering—Expected in early-to-mid October.
•

National

June

Capital Corp.

(9/26-30)

9, 1960, tiled 240,U00 shares of class A common
(par $1). Price—$5 per share. Proceeds—For re¬

stock

duction

indebtedness, working capital,

corporate purposes. Office

—

and

general

350 Lincoln Road, Miami

Underwriters—J. A. Winston & Co., Inc., and
Netherlands Securities Co., Inc., both of New York City.
Beach, Fla.

> National
Consolidated Development Corp.
July 25, 1960 filed 70,000 shares of class B common (non¬

voting) stock. Price—$100 per share. Business—To ac¬
quire business properties, and operate, lease, or sell
them for

a profit. Proceeds—For general corporate pur¬
with initial activities scheduled for Phoenix, Ariz.
Office—South 1403 Grand Ave., Spokane, Wash. Under¬
writer
The stock will be offered through authorized

poses,

acquire the Peoples Gulf Coast Natural
,

holders

thereof, and 61,000 shares will be offered for
issuing company. Price—To be sup¬
plied by amendment. Office—1205 So. Plate River Drive,
Denver 23, Colo. Underwriters—Hayden, Stone & Co.
and Lowell, Murphy & Co. (jointly). Offering — Ex¬
pected sometime in October.
account of the

the

York

New

Sept.

Telephone Co.

and

$60,000,000 of refunding mortgage
bonds, series L, due October, 1997. Proceeds—To retire
short-term bank borrowings used to finance construc¬
Underwriter
To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids—Expected to be received on
tion.

—

Wednesday, Sept. 28
•

$500

Jan.

principal

(letter of notification) 100,000 shares of com¬
mon
stock (par one cent).
Price—$3 per share. Pro¬
ceeds— For general corporate purposes.
Office — 410
Livingston Avenue, North Babylon, N. Y. Underwriter
—Fund Planning Inc., New York, N. Y. Offering—In¬
definite.

;'!!■•

•

(

■'

it National Western Life Insurance Co.
$ Sept. 13, 1960 filed 225,000 shares of common stock. Price
—To
be
supplied by amendment. Proceeds—Together
with the proceeds from the sale of shares to be issued
as
k

result of options, in the amount of $1,106,407.50

for

the discharge of indebtedness and general corporate pur¬

Office—Denver, Colo. Underwriter—Peters, Writer
Christensen Inc., Denver, Colo.

poses.
&

Natural Gas

Pipeline Co. of America

July 1, 1960, filed $25,000,000 of first mortgage pipeline
bonds, due 1980. Price—To be supplied by amendment.
Proceeds—To be applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,

Chicago, 111.
Business—Public utility.
UnderwritersDillon, Read & Co. Inc.. and Halsey, Stuart & Co. Inc.
both of New York. Offering—Postponed pending FPC
approval for the company to acquire the Peoples Gulf
Pipeline Co.

Coast Natural Gas

Natural Gas

Pipeline Co. of America

July 1, 1960, filed 150,000 shares of cumulative preferred
stock (par $100).
Price—To be supplied by amendment.
Proceeds—To be

applied in part to the payment of out¬
standing bank loans and the balance used for construc¬
tion requirements.
Office — 122 South Michigan Ave.,
Chicago. Ill
Underwriter—Dillon. Read & Co. Inc., New
York. Offering—Postponed pending FPC approval for

amount

debentures

and

Price—$500

unan¬

per

unit.

Business—The

manufacturing and sale of rigid thermo¬
plastic sheeting, rods, tubes, and other forms. Proceeds—
To pay part of the cost of acquiring certain assets of
Nixon Nitration Works; part of the proceeds will be
used for working capital. Office—Nixon, N. J. Under¬
writers—Lee Higginson Corp. and P. W. Brooks &
Co.,

Inc., both of New York City (managing).
Normandy Oil & Gas, Inc.
Aug. 31, 1960 filed 750,000 shares of common stock. Price
—$1 per share. Business—Oil and gas exploration and
production. Proceeds — For general corporate purposes.
Office—620 Oil

& Gas Bldg., Wichita Falls, Texas. Un¬
derwriter—None, but 102,500 of the shares are reserved

for commissions to

selling brokers at the rate of 15 shares

for each 100 shares sold.

North American Mortgage & Development Corp.
Aug. 19, 1960 filed 412,500 shares of common stock. Price
—$5 per share. Business—The company was organized in
December

1959 for the purpose of acquiring ownership
land to be developed for commercial and resi¬
dential use. Proceeds—For general corporate purposes.
Office—220 K Street, N. W., Washington, D. C. Under¬
of acreage

writer—None.
North

May

Washington Land Co.
$1,600,000 of first mortgage

filed

certificates.

participation

Price—The certificates will be offered at

discount of 17.18%

from face value.

Proceeds—For

the

primary purpose of refinancing existing loans. Office—
1160 Rockville Pike, Rockvillej Md. - Underwriter—In¬
vestor Service Securities, Inc.
Nuclear Engineering Co., Inc.
April 18 (letter of notification) 30,000 shares of common
(par 33.3 cents). Price—$10 per share. Proceed®
—To replace bank financing, reduce accounts payable,
purchase machinery and equipment and for working
capital. Office—65 Ray St., Pllasanton, Calif. Under¬
writer—Pacific Investment Brokers, Inc., Seattle, Wash.

stock

•

NucCeonic

July

28,

Corp. of America

1960

(letter

(9/16)
notification) 75,000

stock

(par 10 cents). Price—$4 per share. Busi¬
ness—Developing and manufacturing nuclear detection
instruments; equipment and accessories. Proceeds—For
advertising and increased direct mail; moving to a mod¬

common

ern

one

story plant and leasehold improvements;

addi¬

tional sales personnel and establishment of sales offices
in Los Angeles, Boston, Washington and Chicago and
for

working capital. Office—196 DeGraw St., Brooklyn,

N. Y. Underwriters—Bertner Bros,
New

York, N. Y.

Nupack Corp.

a.m.

nounced number of common shares.

Aug.

Lawnservice Corp.

to 11

Nixon-Baldwin

Chemicals, Inc. (10/17-21)
Aug. 24, 1960 filed $4,000,000 oi 6Vz% subordinated de¬
bentures, due Oct. 1, 1980, and 160,000 shares of common
stock, to be offered in units. Each unit will consist of

qualified brokers.

National

(9/28)

filed

1960

;

—

re¬

June 8 filed 1,000,000 shares of capital stock. Price—To
be supplied by amendment. Proceeds—To complete pay¬

one

Service, Inc.
100,000 shares of second cumulative pre¬
ferred stock—65c convertible series, $5 par—and $1,000,000 of QVz% junior subordinated debentures, due 1975.
Price—To be supplied by amendment. Proceeds—To be
added to the company's general working funds. Office—
202 Dwight Building, Jackson, Mich. Underwriter—Paul
C. Kimball & Co., Chicago, 111.

and research and devel¬
Lafayette Street, Salem, Mass.

City.

Model Finance

Price—To

York

basis

May 26 filed

mortgage loan,

Hayden, Stone & Co., New
Offering—Expected sometime in October.

the

Smith

Proceeds—

—

Inc., New York, N. Y.

Office—Kansas City,
Lynch, Pierce, Fenner &
Inc., and Kidder, Peabody & Co., both of New
York City (managing).

Mo.

supplied by

devices.

ceeds—To

purposes.

and

share for each six shares

common

stock

capital, machinery and equipment, the

tirement

Underwriter

tubes

new

shares held. Price—To be supplied

Inc.
Sept. 2, 1960 filed 100,000 shares of common stock. Price
—To be supplied
by amendment. Business—The com¬
makes

one

(9/20)
Aug. 1, 1960 filed 258,558 shares of common stock (par
$1) to be offered to the holders of the outstanding

Metcom,

pany

Price—To

(par

Navajo Freight Lines, Inc.
May 9, 1960, filed (with the ICC) 250,000 shares of com¬
mon
stock, of which 189,000 shares, being outstanding
stock, will be offered for the account of the present

com¬

Missouri Public Service Co.

Office—Holly¬
wood, Calif. Underwriters—William R. Staats & Co., Los
Angeles, Calif., and Shearson, Hammill & Co., New York
City.
corporate

debentures.

Underwriter—None.

derwriter—David Barnes & Co.,

Proceeds—$2,100,000 will be used to reduce
general

company

•
Minitronics, Inc. (10/7)
Aug. 26, 1960 (letter of notification) 100,000 shares of
class A common stock (par 20 cents). Price—$3 per share.
Business—To manufacture a new type of micro-minia¬
ture magnetic relay. Proceeds — For general corporate
purposes. Office—373 Broadway, New York, N. Y. Un¬

indebtedness, and the balance will be used for working
capital

850

The

development, $125,000. The balance will be
working capital. Office—7620 N. W. 36th Ave.,
Miami, Fla. Underwriter — Shearson, Hammill & Co.,
New York City.
'//•'
/■/(• ;;.y -

Lytton Financial Corp.
(9/19-23)
July 26, 1960 filed 354,000 shares of capital stock, of
which 187,500 shares are to be offered for the account
of the issuing
company and 166,500 shares, representing
outstanding stock, are to be offered for the account of
the

basis of

the

used

be supplied by amendment. Proceeds—All to be paid to
Louisiana Power & Light Co. Underwriter—None.

amendment.

and
—

for product

stock of Middle South held

subscription

stock

Business

supplied by amendment. Business—
Making and selling electronic equipment and systems for

debentures, due 1970. Price—To be supplied by

Louisiana Gas Service Co.

unit.

missile and space programs. Proceeds—For reduction of
short-term bank loans, $635,000; for expansion, $200,000;

of America, Inc. (9/26-30)
filed $2,300,000 of convertible subordi¬

amendment, but the new debentures will first be offered
in exchange for $925,000 of outstanding 5% convertible
debentures maturing in 1964. Proceeds—For construc¬
tion, liquidation of bank debt, replacement of working
capital, and the purchase of mining equipment. Office—
500 Fifth Ave., New York City. Underwriters — Bear,
Stearns & Co. and John H. Kaplan & Co., bothr of. Dtew
York City (managing).
•

one

per

886, Rapid City, S. D.

held.

October.

1960

—

the company to,

Gas Pipeline Co.*

Milgo Electronic Corp. (9/26-30)
July 28, 1960 filed 65,000 shares of common stock
$1), to be offered to the holders of the outstanding

Lithium Corp.

Aug.

;

will do
financing in the home building industry. Pro¬
ceeds— To start its lending activities. Address — P. O.

debentures, due Oct. 1, 1980, to be offered for subscrip¬
tion to holders of the outstanding common stock. Price
—To be supplied by amendment.
Proceeds—To reduce
indebtedness, expand the research and development pro¬
gram, and add to working capital.
Office—28 Sager
Place, Irvington, N. J. Underwriter—Granbery, Marache
& Co., New York City (Managing). Offering—Expected
•

units

Price

Lionel Corp.
Sept. 2, 1960 filed $4,500,000 of convertible subordinated

sometime

(managing). Offering—Expected sometime

^ Midwestern Acceptance Corp.
Sept. 8, 1960, filed 1,169,470 shares of common stock and
$994,050 of 6% debentures, to be offered for public sale

mon

Lence Lanes, Inc.(9/26-30)
July 22, 1960 filed 175,000 shares of common stock (par
$1). Price—$6 per share. Business—The company oper¬
ates automatic bowling centers, associated ventures such
as
restaurants, bars, and luncheonettes, sells supplies,
and rent lockers, shoes, and meeting rooms.
Proceeds
—To

St. Louis, Mo.
in October.

(1081)

interim

Lee Electronics Inc.

June

Chronicle

12,

common

Earl Edd.?n

Co.,

notification)

stock. Price—At par

For working

and

;

(letter

1960

;

capital.

($1

per

93,574 shares of
share). Proceeds—

Address—Reinbeck, Iowa. Under¬
Moines, Iowa.

writer—R. G. Dickinson & Co., Des
•

Oil

(9/27)

Recovery Corp.

Aug. 4, 1960 filed $1,600,000 of convertible debentures,
due Sept. 1, 1970. Price—To be supplied by amendment.
Proceeds—Approximately $700,000 will be used for the
development of company-owned property, employing
the
the

"Oreo

Process"

balance for

for

recovering

general corporate

secondary oil, and
Office—405

purposes.

Lexington Ave., New York City. Underwriter—Lehman
Brothers

ing). '

and

Allen

Co. of New

York

City

(manag¬

'X.'./:.-

^V.':

it Pacific Electro Magnetics Co., Inc.
Sept. 2, 1960 (letter of notification) 60,000 shares of
common stock (no par). Price—$5 per share. Proceeds—
For working capital. Office—942 Commercial St., Palo
Alto, Calif. Underwriter — Pacific Coast Securities Co.,
San Francisco, Calif.
it Pacific Lighting Gas Supply Co. (10/19)
Sept. 9, 1960, filed $25,000,000 of sinking fund deben¬
tures, due 1980. Business—The issuer is a subsidiary of
Pacific Lighting Corp., San Francisco, Calif. Proceeds—
To finance current construction and repay short-term
loans

to its

parent, Pacific Lighting Corp. Office — 720
Street, Los Angeles, Calif. Underwriter—To be
determined by competitive bidding.
Probable bidders:

8th

Halsey, Stuart & Co. Inc.; Blyth & Co.; Eastman Dillon,
Union Securities & Co., and White, Weld & Co. (jointly).
Bids—To be received on Oct. 19 in room 1329, 720 N.
8th

Street, Los Angeles, Califat 8:30

time.

a.m.

California

;

Continued

page

(1082)

Continued from

The Commercial and Financial Chronicle

page 37

Office—1130 S. W. 3rd

poses.

Ave., Portland, Oreg. Un¬

derwriter—None.
Pacific

—

construction

which is expected to total $61,-

program,

000,000. Office
determined by

Portland, Ore. Underwriter

—

To be

—

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Lehman Brothers; Blyth & Co.
and White, Weld & Co. (jointly); Eastman Dillon, Union
Securities & Co. Bids—Expected to be received on Sept.
21 at 12 noon. Information Meeting—Scheduled for Sept.
19 at 3:30 p.m.
I *
4
"
>
;
.

• Palm Developers Limited (11/8)
wSept. 8, I960, filed 100,000 shares of common stock
-(par 1 shilling). Price —$3 per share. Business — The
company intends to deal in land in the Bahamas.
Pro¬
ceeds—To buy land, and for related corporate purposes.
Office—6

Terrace, Centreville, Nassau, Bahamas. Under¬
writer—David Barnes & Co., Inc.; New York City.
•

Pearson

Corp.

March 30 filed 5u,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—$60,000 will be

utilized

the company's indebtedness to Busi¬
ness Development Co. of Rhode Island; the balance will
be added to working capital for general corporate pur¬
poses, principally to finance inventory and for other
manufacturing costs. Office—1 Constitution St., Bristol,
repay

R. I. Underwriter—R. A. Holman &

Co., Inc., New York.
Offering—Expected in early October.

• Perfect
Photo, Inc. (9/28-30)
Aug. 25, 1960 filed $4,500,000 of convertible subordinated
debentures, due Oct. 1, 1980 and convertible into the
issuer's cbmmon from July 1, 1961 through Oct. 1, 1980.
Price—To be supplied by amendment. Business—Film
processing and the distribution of photo equipment and
supplies.
Proceeds—In the amount of $3,600,000 (ap¬
proximate), will be used to acquire substantially all of

the

stock

Consolidated

Photographic Industries, Inc.
Office—4747 N. Broad St., Philadelphia, Pa. Underwriter
—Harriman Ripley & Co., Inc., of New York City (man¬
aging).
•

•

July
first

one

for

new

subscription

stockholders at

the

share for each 5% shares held. Price

rate

To be

—

supplied by amendment. Proceeds—To be added to the
company's working capital. Office — Soriano Bldg.,
Manila, Philippines, Underwriter—None.

Photogrammetry, Inc.
Aug. 10, 1960 (letter of notification)
common

Office

—

922

short term note and working cap¬

Burlington Ave., Silver Spring, Md.
Planning Co., Washing¬

■

Pik-Quik, Inc. (10/3-7)
July 27, 1960 filed 550,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business—
The organization and operation of self-service markets,
in

Florida, under

Thum."

There

the

are

names

now

"Pik-Quik" and

such

markets.

Preferred

"Tom

olis, Minn. Underwriter—A. C. Allyn & Co., Inc., New
City.

York

Pioneer Finance Co.

(9/20)
1960 filed 125,000 shares of cumulative pre¬
ferred stock ($20 par), with attached
warrants for the
purchase of 62,500 shares of common stock. Price—To
be supplied by amendment. Business—The
financing of
new

15,

and used mobile

homes, "shell housing," and small

loans. Proceeds—For general corporate
purposes. Office
—1400
First National Bank
Building, Detroit, Mich.
Underwriters—White, Weld & Co. of New York City and
Watling, Lerchen & Co. of Detroit, Mich.
Plasties & Fibers, Inc.
June 14 (letter of
notification) 150,000 shares of
stock (par 20 cents).

River, N. J. Underwriter—Pearson, Murphy &
Co., Inc., New York, N. Y. Note—The underwriter states
that this offering will be
delayed.

- ...

...

notification)

121,360 shares of
common stock
(par 10 cents). Price—$1 per share. Busi¬
ness—Manufacturers of plastic closures. Proceeds—For
general corporate purposes. Office—60 E.
42nd St.

New

York, N. Y. Underwriter—None.

manufacture

and

sale

two

way

radios.

Proceeds—For general corporate
purposes; research and
development and inventory investment to
produce an
amateur, band

transciever; research

inventory investment in

new

radio field; to purchase new test
caiptal and to pay the cost of
ities.

Co.

of the issuer.
•

Corp.

and

development and

product in the two-way

equipment; for working

acquiring expanded facil¬
Office—253 Crooks
Avenue, Clifton, N. J. Under¬

■

working capital. Office

33 New Broad

St., Portchester, N. Y. Underwriter—Van Alstyne, Noel & Co.,
New York City.

—

Offering—Expected in late October.

ics field. Office—1240 First Security

Building, Salt Lake
City, Utah. Underwriter—Jacoby, Daigle & Werner, Inc.,
Los Angeles, Calif."
Public Service Electric & Gas Co.

1960

24,

(9/20)

filed

$50,000,000 in first and refunding
mortgage bonds, dated Sept. 1, 1960, to mature Sept. 1,
1990. Proceeds—To pay all or part of company's' shortterm indebtedness incurred for construction. Underwriter

—To

determined by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co., and Lehman Brothers (joint¬

bidders:

ly). Bids—Expected to be received

Sept. 20 up to 11
a.m., at 80 Park Place, Newark, N. J. Information Meet¬
ing—Scheduled for Sept. 15 at 2:30 p.m./at the Chase

Manhattan

•

Bank,

Exchange Place, New

York City,

238.

Puritan

Sportswear Corp.

Aug. 24, 1960 filed 120,000 outstanding shares of common
stock "(no par). Price—To be supplied by amendment.

Co., Inc., New
in October.

(9/19-23)

Enterprises, Inc.

July 28, 1960 filed 200,000 shares of common stock (par
$1). Price — To be supplied by amendment. Business—
The establishment" and operation of bowling centers.
corporate

general

Office—525

purposes,

St., Worcester, Mass. Underwriters—Blair & Co.,
Inc., New York City and Chace, Whiteside & Winslow

(managing).

Inc., Boston, Mass,
Riddle

Aug.

Inc.

Airlines,

subordinated con¬

1960 filed $2,250,000 of 6%

19,

amount.
capital to fulfill

vertible debentures. Price—At 100% of principal
Proceeds

—

used

operating

contract, and to acquire aircraft. Office—In¬

Underwriter—James H.
Co., Coral Gables, Fla., and New York City. ,

ternational Airport, Miami, Fla.
Price &

Riverview ASC, Inc.

(letter of notification) 100,000 shares of
(par one cent). Price—$3 per share. Pro¬
liabilities, construction and for
working capital. Office—2823 S. Washington Ave., Titusville, Fla. Underwriter—Mallory Securities, Inc., New
York, N. Y. Offering—Expected in late September.
,/
July

1960

29,

stock

common

ceeds—To reduce current

•

Rochester Telephone Co.

(9/21) /

July 21, 1960 filed $12,000,000 of series "E" first mort¬
gage bonds, which will mature in 33 years, on Sept. 1,
1993. Proceeds—The proceeds of this sale will be used
to

repay

extension of
Un¬

bank loans for construction and

facilities in service by the date of the proposed sale.

determined by competitive bidding.
Probable bidders: First Boston Corp., and Halsey, Stuart
derwriter

To be

—

& Co. Inc.; Eastman Dillon, Union Securities & Co., and
Kidder, Peabody & Co. (jointly). Bids—Expected to be
received on Sept. 21, 1960, up to 1:00 p.m. New York
Time. Information Meeting—Scheduled for Sept. 19 at
10:00

a.m.

in New York.

'■■■■'■■■.J

Roller Derby

and

25th

.1^7,000 shares are to be offered for public sale by the

boys. Proceeds—To selling stockholders. Office—813
St., Altoona, Pa. Underwriter—Hayden, Stone*& Co.,
New York City (managing). Offering—Expected in
early
'

%
■■■•■, -/

/
v.nii Of.v,

w1'-.

Puritron Corp. (9/30)
Aug. 3, 1960 filed 250,000 shares of common stock, of
which 200,000 shares are to be offered for the account
of the issuing company and 50,000
shares, representing
outstanding stock, are to be offered for the account of
Joseph Stein, President, the present holder thereof.
Price—To be supplied by amendment. Business—Makes
and sells electronic air purifiers and range
eeds — To retire indebtedness, with the

X
capital

expenditures.

derwriter
R.

—

Bache

Office—New

hoods. Probalance for

Haven,

Co., New York City

Conn.

Un¬

(managing).

C. Can Co.

present

holders

thereof.

amendment.

Business

fibre-bodied

cans

ceeds—For

—r

and

general

Price
The

—

supplied

manufacture

containers

corporate

and

various

purposes.

Page Blvd., St. Louis, Mo. Underwriter
Gardner, St. Louis, Mo. (managing).

—

sale

sizes.

by
of

Pro¬

Office—9430
Reinholdt &

Radio Shack Corp. (10/3-7)
Aug. 16, I960, filed 200,000 shares of common stock (par
$1), of which 150,000 shares will be offered for the
account of the issuer, and the remaining 50,000 shares by
Price — To be supplied by
present holders thereof.

Business—Distributors of electronics prod¬

ucts, sound components, and small appliances.

Office—r

730 Commonwealth
Avenue, Boston, Mass. Underwriter
—Granbery, Marache & Co., New York City.
•

Rainier Co.,

Inc. (9/19-23) }
Aug. 1, 1960 (letter of notification) 60,000 shares of com¬
mon stock (par 10 cents).
Price—$5 per share. Business
—Manufacturers

electronics

parts

and

components,
and precision machine parts for military and commer¬
cial aircraft. Proceeds—For general corporate purposes.
Office—86 Magnolia Street, Westbury, L. I., N. Y. Un¬

—To purchase additional

equipment, for sales, purchase
inventory and working capital. - Address — Gardena,

Calif.

Calif.
•

Underwriter—California Investors,
Offering—Indefinitely postponed.-

Resifiex

Los

company,

sold

for

the

common

and the remaining 145,000 shares will
of certain selling stockholders.

account

supplied by amendment.
general corporate purposes relating to
sales of motion

and

stock, of which

and the balance for

Proceeds—For

the

production

picture films of the Roller Derby,

working capital. Office—4435 Wood-

ley Ave., Encino, Calif. Underwriter—To be supplied by
amendment. ' ;

Rotating Components, Inc.
8, 1960 (letter of notification), 100,000 shares of
common stock (par 10).
Price—$3 per share. Proceeds—
For general corporate purposes., Office—267 Green St.,
Brooklyn 2, N. Y. Underwriter—S. Schramm & Co., Inc.,
New York, N. Y. Offering—Imminent.
July

Roto-American

Corp.

(9/21-22)

May 27 filed 75,000 shares of common stock (par $1) to
be offered for cash sale to the public, and 44,283 shares
to be issued in exchange for common and preferred
shares of four subsidiaries.
Price—To be supplied by
Proceeds—To be used largely for reduction

amendment.
of accounts

payable,

repayment

as well as for new tooling, research,
officer's loan, and general corporate
purposes.
Office—93 Worth Street, New York. Under¬
writer—Morris Cohon & Co., New York.

Russeli

Stover

Candies,

Inc.

(9/26-30)

Aug. 3, 1960 filed 200,000 shares of common stock

(par

.$1), of which up to 75,000 shares may be reserved for
certain of the issuer's officers and employees, with the
balance to be offered publicly. Price—To be supplied by
amendment. Proceeds

—

For redemption of outstanding

preferred, with the balance for working capital. Office—
1206 Main St., Kansas City, Mo. Underwriters—Harri¬
Ripley & Co., Inc., New York City, and Stern Broth¬

man

ers,

Kansas City, Mo.

• Sabre Craft Boat Co., Inc. (9/22). /
Aug. 26, 1960 filed 273,250 shares of no
stock.
makes

Price
fibre

struction of

—

per

share. Business

—

par

common

The company

glass boats. Proceeds—For relocation, con¬
new plant in Michigan, lea:ehold improve¬

ments, and general corporate purposes. Office—Tacoma,
Wash. Underwriter—R. A. Holman & Co., Inc., New York

City.

•
Rayscn Craft Boat Co.
July 11, 1960, (letter of notification) 100,000 shares of
common stock
(no par). Price—$3 per share. Proceeds

issuing

Price—To

•

Aug. 25, 1960 filed 230,000 shares of common stock, of
which 50,000 shares will be offered for the account of
the issuing company and
180,000 shares, representing
outstanding stock, will be offered for the account of the

Angeles,
>,

Laboratory,

Inc. (9/20-21)
July 18, 1960, filed 100,000 shares of common stock, of
which 40,000 shares are to be offered for the account

South Robertson Blvd., Los Angeles, Calif. Underwriter
•—Blunt Ellis & Simmcns, Chicago, 111.

Castle

New

Base,

TV, Inc.
March 30 filed 277,000 shares of

Business—The firm makes and sells sportswear for men

afternoon newspaper
Portland, Oreg. Proceeds-—For- general
corporate pur¬

The company intends to
publish

Reva

M. A. T. S.

Progress Electronics Corp.
Aug. 3,1960 (letter of notification) 200,000 shares of com¬
mon stock (par $1). Price—$1.50
per share. Proceeds—To
develop and produce proprietary items in the electron-/

Aug.

Air

County

Castle

New

—

components. Proceeds—To reduce indebtedness and add

the issuing company, and 60,000 shares, being out¬
standing stock, for the account of the present holders
thereof. Price—To be supplied by amendment. Business
—The manufacture and sale of disposable plastic tubular
products, and the assembling and marketing of blood
donor sets. Proceeds
For plant expansion, increased
production facilities, and working capital. Office—864

Office

County, Del. Underwriter—Amos Treat &
York City. Offering—Expected sometime

designs, develops, and produces microwave

Holman & Co.,
Inc., New York, N. Y.
• Portland Reporter
Publishing Co.
Sept 12, 1960 filed 175,000 shares of common
stock, of
which 1/5,000 shares are to be
publicly offered, 39 000
shares sold to
employees, and 11,000 shares exchanged
for property or services.
Price—$lp per share. Business—

writer—R.

(par
firm
makes and sells protective coatings for packaging and
fabrics, and products used in insulation. Proceeds—For
working capital ($235,358), with the balance for ma¬
chinery, equipment, and general corporate purposes.

Lincoln

Aug. 26, 1960 filed 100,000 shares of common stock (par
$1). Price—To be supplied by amendment. Business-—
The company

Chemical, Inc.

Proceeds—For

Premier Microwave

derwriter—Richard Bruce & Co., New York, N. Y.

•
Potytronics Laboratories, Inc. (9/27)
Aug. 19, 1960, (letter of notification)
150,000 shares of
class A stock (par 10 cents).
Price—$1 per share. Busi¬

ness—The

Life Assurance

Office — 20 East Mountain St., Fayetteville, Ark.
Underwriter—Preferred Investments, Inc., a subsidiary

amendment.

Price—$2 per share. Proceeds—For
general corporate purposes. Office—Whitehead
Avenue,

Risk

poses.

common

South

it: Poly-Seal Corp.
'
Sept. 7, 1960 (letter of

for

and

Aug. 18, 1960 filed 300,000 shares of common stock. Price
—$o per share. Proceeds — For general corporate pur¬

Proceeds-

Together with other funds, the proceeds will be used
to purchase
substantially all of the assets of Plymouth
Rock Provision Co., Inc. Office—Baker
Bldg., Minneap¬

Aug.

bonds

■

Underwriter—First Investment

ton, D. C.

Proceeds—For

amount.

retire

October.

13,000 shares of
(par $1). Price—$3.50 per share. Proceeds

stock

—For retirement of

ital.

face

purchase of a track,
working capital. Office—2890
Bellevue, West Vancouver, B. C., Canada. Underwriter—
General Investing Corp., New
York, N. Y.
to

Room

Philippine Oil Development Co., Inc. (9/19-23)
103,452,615 shares of capital stock, to bt

(9/26-30)

29, 1960 (letter of notification) $300,000 of 10%
mortgage registered bonds, due July 1, 1970. Price

—At

March 30 filed
offered

Portland Turf Association

Resisto

Thursday, September 15, 1960

Aug. 29, 1960 filed 200,000 shares of common stock
10 cents).
Price—$2.50 per share. Business—The

Power &

Light Co. (9/21)
July 27, 1960 filed $20,uU0,0uo of 30-year first mortgage
bonds. Proceeds
To retire $20,000,000 of unsecured
promissory notes, to mature on or prior to July 31, 1961.
The notes will be used to partially finance the 1960-61

—

•

Sachar

Properties,

Inc.

(9/20)

•

July 6, 1960, filed $300,000 of 8% subordinated instalment
convertible debentures due

1970, 150,000 shares of com¬
(par 10 cents) and 30,000 common stock pur¬
chase warrants.
It is proposed to offer these securities
in units, each unit is to consist of $100 principal amount
mon

stock

debentures, 50 common shares, and 10 warrants ex¬
unit.
Proceeds—$200,000 to purchase the Second Ave. and E.
82nd
St.
properties; $51,000 to purchase
the
New
Rochelle property; and the balance for working capital*
Business—The company intends principally to deal in
and
with
unimproved real property, to sell parcels
as building sites, to subdivide
and improve parcels and
sell same as building sites, and to obtain or prepare
building plans and financing arrangements in respect
ercisable at $2 per share until 1965. Frice—$200 per

thereof. Office—598 Madison
Ave., New York.
Under¬
writers—Ross, Lyon & Co., Inc. and Globus, Inc., both
of New York.

.•

Volume

Safticraft

•

192

Number

Corp.,

5986

Patterson, La.

April 29 filed 275,000 shares
qents).
Price—$3 per share.

The Commercial and Financial Chronicle

(9/16-19)

common

stock

(1083)

•
Spier Electronics, Inc.
Aug. 24, 1960 (letter of notification)

Technical

proposes to use $50,000 to expand its efforts in the sale
of Safticraft boats nationally; $250,000 for reduction oi

60,000 shares of
common stock
(par 10 cents). Price—$5 per share. Busi¬
ness— Manufacturers of electronic
products. Price — $5
per share. Proceeds — For general corporate purposes.

short-term

Office—1949-51 McDonald

Proceeds—The

(par 10
company

borrowings; and the remaining

$293,500 to
be advanced to du Pont, Inc. as additional
working cap¬
ital necessary in the financing of increased inventories

N. Y.

and receivables incident to the increased sales volume ol

•

Dupont.

Underwriter

—

George,

O'Neill

Co.,

writer—D'Amico &

V San Diego Gas & Electric Co.

Aug. 30,

Inc.,

(10/4)

1960 filed $30,000,000 of bonds, series H,

due

1990. Proceeds—For the repayment of bank loans and for
construction. Underwriter—To be determined
by com¬

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co.; First Boston Corp., Eastman Dillon,
Union Securities & Co., and Merrill
Lynch, Pierce, Fenner
& Smith (jointly); Lehman Brothers and Salomon
Bros. & Hutzler (jointly). Bids—Expected to be received
Oct. 4.

Scantlin

Aug.

29,

• Stamford Chemical Industries, Inc. (9/19-23)
Sept. 1, I960 (letter of notification) 70,000 shares

of
(par 25 cents). Price—$4 per share. Pro¬
purchase new equipment, for moving and to
develop new sales areas. Office—c/o Samuel Machlis, 64
ceeds—To

Electronics, Inc.

1960

filed

275,000

par

Avemore Dr., New
Walker & Co., New

common

stock, of which 175,000 shares are to be offered for the
account of the issuing company, 75,000 shares for the
account of selling stockholders, and 25,000 shares may
be optioned by the underwriters. Price—To be supplied
by amendment. Business — The company makes, sells,
and leases proprietary electronic devices. Proceeds—For
general corporate purposes, including the reduction of
indebtedness. Office
2215 Colby Ave., Los Angeles,
Calif. Underwriters—Carl M. Loeb, Rhoades & Co. and
Paine, Webber, Jackson & Curtis, both of New York
City (managing). Offering — Expected sometime in

•

October.

July

was

diversified

purposes'.
Building, Louisville, Ky.
corporate

Office

Springs.

Power

Co.

Aug. 26,, 1960 filed $5,000,000 of first mortgage bonds,
series E, due 1990 and $2,000,000 of $20 par preferred
stock (100,000 shares). Proceeds—For construction and
•repayment of bank loans. Address—P. O. Box 230, Las
Vegas, Nev. Underwriter—White, Weld & Co., of New
York City (managing).

shares of stock.

the

pursue

Steamboat

Price—$75 per unit.
development of the resort.

Springs, Colo.

Business

Company

—

Divide,
about
2
Underwriter—None.

miles

from

Steamboat

•jAf Sugarine Co.
30, 1960 (letter of notification), 80,000 shares of
common stock
(no par). Price—$3 per share. Proceeds
—To go to selling stockholders.
Address—Mt. Vernon,
111.

Underwriter—None.

Summers

;

Gyroscope Co.

Aug. 29, 1960 filed 6,403,215 shares of common stock, of
which 5,702,878 shares are to be offered by Atlas Corp.
to the holders of its outstanding common on the basis
of

one

and

its

Summers share for each

two

Atlas shares held,

700,337 shares to be offered by Mertronics Corp. to
stockholders

cents

per

effect

share.

share-for-share

Purpose—The

divestiture

71.1%

Atlas

basis.

purpose

and

Price—75

of the

offering

Mertronics

of
of
pending before the CAB. Office—2500 Broadway
Ave., Santa Monica, Calif. Underwriter—None. Offering
—Expected sometime in October.
their

„

(10/4)

Aug.

interest in Summers in order to dispose

matters

—

Nevada

—

and
—

Continental

Softol, Inc. ' (9/19-23)
>
June 17, 1960 (letter of notification) 150,000 shares of
common stock (par 10 cents). Price—$2 per share. Pro¬
ceeds
For general corporate purposes. Office — 992
Springfield Ave., Irvington, N. J. Business—The company
manufactures cosmetics and toiletry items. Underwriter
—Harwyn Securities. Inc., 1457 Broadway. New York
36, N. Y. Note—This issue was refiled on Sept. 7.
/"

Southern

Corp.

organized for the purpose of developing and oper¬
ating a ski and summer resort on Storm Mountain on the

•

Ski

was

• Solitron Devices, Inc.
-Sept. 9,. 1960 filed $400,000 of 6% subordinated convert¬
ible debentures, due 1967. Price—At par. Businezs—The
company makes and sells solid state devices. Proceeds—
For general corporate purposes. Office—67 South Lex¬
ington Ave., White Plains, N. Y. Underwriter—Casper
Rogers & Co., New York City.

Mountain

debenture

Proceeds

Sunset House Distributing Corp.
Aug. 22, 1960 filed 150,000 shares of common stock. Price
—To be supplied by amendment. Business—The com¬
pany is in the retail mail order business selling general
merchandise throughout the country. Proceeds — To
,

Leonard P.

Carlson, the issuer's president, selling stock¬

Calif.

—

V, '"V,'/>-•■■■.

-V:'

y.y

•

Syntax Corp. (9/26-30)
Aug. 8, 1960, filed 100,000 shares of common stock. Price
—To be supplied by amendment.
Business—The com¬
pany is chiefly engaged in the research, development,
production, and sale of steroid hormone products. Pro¬
ceeds — For working capital.
Office — Arcia Building,
Justo Arosemena Avenue, Panama, Republic of Panama.
Underwriter—Allen & Co., New York City.
Tecfcni

—For

the balance for

working capital.

Office—2720 West

Technical

Westchester

Measurement

Corp. (9/20)
July 29, 1960 filed 120,000 shares of common stock (par
20 cents). Price — $5 per share. Business —
Makes, and
sells electronic equipment, principally multi-channel
digital computers. Proceeds

—

For debt reduction, re¬

search and

development, engineering equipment and fix¬
tures, and working capital. Office—441 Washington Ave.,
North Haven, Conn. Underwriter—Pistell, Crow, Inc.,
New

York

City.

Tech-Ohm

Electronics, Inc.
(letter of notification) 100,000 shares of
common stock
(par 10 cents). Price—$3 per share. Pro¬
ceeds—For general corporate purposes.
Office—36-11
33rd Street, Long Island City, N. Y.
Underwriter —
29, 1960,

Edward Lewis

Co., Inc., New York, N. Y. Offering—Im¬

minent. Note—This issue

was

1960

common

refiled

Sept. 6.

capital stock

(letter of notification)

150,000 shares of
(par 25 cents) of which 100,000
officers. Price—$2 per share.
Proceeds—To lease equipment and for working capital.
Office
7922 Melrose Ave., Hollywood, Calif. Under¬
writer—Raymond Moore & Co.. Los Angeles, Calif.
shares

are

to be offered by

—

•
Telephone & Electronics Corp. (9/26-30)
Aug. 18, 1960 (letter of notification) 52,980 shares of
common stock (par 25 cents). Price—$5 per share. Pro¬
ceeds—For general corporate purposes. Business—Elec¬
tronic communications equipmenttand automatic, loudspeaking telephone. Office—7 East" 42nd St., New York
17, N. Y. Underwriter—Equity Securities Co., New York,

N. Y.

Tele-Tronics Co.

Aug.

10,

(9/26-30)

trolled

1960

conditions

of temperature, humidity, pressure
research, production and quality con¬
trol. Proceeds—The erection of new manufacturing facil¬
ities, research and equipment, and the balance for work¬
ing capital. Office—U. S. Highway 130, Riverton, N. J.
Underwriters—M. L. Lee & Co., Inc., Milton D. Blauner
& Co., Inc. and F. L. Salomon &
Co., all of New York
city.
and cleanliness in

•
Tenax, Inc. yy V y'\'
Aug. 16, 1960, filed $1,500,000 of 10-year 6% convertible

subordinated

debentures, due 1970.
Price —100% of
principal amount. Business-^-The sale, stocking and fi¬
nancing of freezers. Proceeds—Repayment of short-term
indebtedness and working capital.
Office—575 Lexing¬
ton Avenue, New York City.
Underwriter—Myron A.
Lomasney & Co., New York City. Offering—Expected
some

time

October.

Therm-ASr Mfg. Co.,

Inc.
Sept. 13, 1960 filed 125,000 shares of common stock (par
10 cents). Price—$4 per share. Business—The company
makes and sells temperature and humidity control equip¬
ment for military and commercial use. Proceeds—To pay
loans, for research and development, and for working
capital. Office—1000 North Division St., Peekskill, N. Y.
Underwriter—G. Everett Parks & Co., Inc., New York
cityy
'

'/V,

•

Timely Clothes, Inc. (9/26-30)
July 25, 1960 filed $840,000 of convertible subordinated

debentures, due
the

outstanding

amount

1980, to be offered to the holders of
on the basis of $100 principal

common

debentures

for each

Aug.

10,

1960

expansion, working capital, and research and de¬

velopment expenditures. Office—71 Crawford St., New¬
ark, N. J. Underwriter — United Planning Corp., 1180

Raymond Blvd., Newark, N. J.

16%

shares of common

held. The record date and interest rate will be supplied

by amendment. Business

—

Underwriter

and

Mockingbird Lane, Dallas. Underwriter — Elmer K.
Aagaard, 6 Salt Lake Stock Exchange Bldg., Salt Lake
City, Utah.

•

10 retail stores. Proceeds—To

Ave., Los Angeles, Calif.
Crowell, Weedon & Co., Los Angeles,

March 23 filed 700,000 shares of common stock. Price—
$2 per share. Proceeds—For the drilling of three well?

Inc.

—

men's

•

prooably

(managing).

holder. Office—3650 Holdredge

Electronics, Inc. (10/3)
(letter of notification) 112,500 shares of
common stock
(par 10c) Price—$2 per share. Business—
The firm makes health and massage equipment, electric
housewares, and medical electronic equipment. Proceeds

Southwestern Oil Producers,

plant,

new

Storm

^ Simon hardware Co.
Sept. 9, 1960, filed $900,000 of sinking fund debentures,
due Sept. 30, 1972, with warrants, and 700,000 shares of
common stock, to be offered in' units of a $1,000 deben¬
ture and warrants to purchase 100 common shares. Price
—To be supplied by amendment.
Business—The firm
sells a diversified line of consumer goods through a store
in
Oakland, Calif., and proposes to open additional
stores in Hay ward and Walnut Creek. Proceeds—To re¬
duce bank borrowings and for equipping the new stores.
Office—800 Broadway, Oakland, Calif.
Underwriter—
J. S. Strauss & Co., San Francisco, Calif, (managing).

•
Temperature Engineering Corp. (10/3-7)
Aug. 10, 1960 filed 135,000 shares of common stock (par
25 cents). Price—$3.50 per share. Business—The manu¬
facture and sale of equipment to create precisely con¬

—

June 30, 1960, filed $500,000 of 8% subordinated deben¬
tures due 1975 and 100,000 shares of common stock, to
be offered for public sale in units consisting of a $50

Seven Mountain Corp.
Aug. 12, 1960 filed 3,500,000 shares of common stock.
Price—$1 per share. Business—To construct an all-year
resort area and a gondola-type aerial cableway, south¬
east of Provo, Utah, in the Wasatch Mountains. Proceeds
—For the purchase of property, construction and equip¬
ment, retirement of notes, and the balance for working
capital. Office—240 East Center St., Provo, Utah. Under¬
writer—Whitney & Co., Salt Lake City, Utah.

Y., with the balance for working capital.
Office—700 Fenimore Road, Mamaroneck, N. Y. Under¬
writer
Kidder, Peabody & Co., Inc., New York City

July 25,

The company makes heating elements
appliances and components for major appli¬
ances, and related items. Proceeds—To selling stockhold¬
ers. Office—429-33 East 164
St., New York City. Under¬
writer—Francis I. duPont & Co., New York City.

Marion E. Taylor
Underwriter—None'.
;/• /

construction

County, N.

small

for

Office—713

and sells hi-fi radio components and systems. Proceeds
—The proceeds, estimated at $750,000, will be used for

(letter of notification) 100,000 shares of
common stock (par 40 cents). Price—$3 per share. Pro¬
ceeds—For plant expansion, additional machinery,1 ac¬
quisition of new facilities and working capital. Office—
180 S. Main St., Ambler, Pa. Underwriter—Woodcock,
Moyer, Fricke & French, Inc., Philadelphia, Pa.

ment. Business

SEC
investment
registration.) Business

stock (50
to be offered for

common

are

Telecolor

• Still-Man
Manufacturing Corp. (10/11)
Aug. 22, 1960 filed 150,000 outstanding shares of class A
stock (par 75 cents). Price—To be supplied by amend¬

par), of which 50,000 shares

account
of the issuing company and 70,000 shares,
representing outstanding stock, are to be offered for the
account of the present holders thereof. Price — To be
supplied by amendment. Business—The company makes

Corp., New York, N. Y.

Co., New York City. Offering
—Expected sometime in October.
yi^y-'

•—The sale of various forms of life insurance, annuities,
and health and accidei>trthisurance.
Proceeds—For gen¬
eral

—

(10/3)

the

Underwriter—D. Gleich &

management

partner in the

Underwriter

preparations, and toilet waters. Proceeds—$250,000 for
advertising and sales promotion, primarily for new
products with the balance for general corporate pur¬
poses. Office—.Professional Bldg., Ft. Lauderdale,
Fla.

Co., which will register with the

end

open

•

ic Security Annuity Life Insurance Co.
Sept. 8, ; 1960, filed 300,000 shares of common stock.
Price—$7 per share. (The issuer's subsidiary, Annuity

company,

Stephan Co.
yy/-'
Sept. 2, 1960 filed 150,000 shares of common stock (par
50 cents). Price—$4 per share. Business—The manufac¬
ture and sale of men's hair lotions, shampoos, after shave

Lincpln, Lincoln, Neb.; Storz-Wachob-Bender Corp.,
Omaha, Neb. and Cruttenden, Podesta & Co., Chicago,

Insurance

21,

Okla.

Life

York

notification) 70,000 shares of
(par 10 cents). Price—$4.25 per share.
working capital.
Office—809 Kennedy

stock

Proceeds—For

y/yy-

New

de¬

Office

Bldg., Tulsa, Okla. Underwriters—Batten & Co., Wash¬
ington, D. C. and F. R. Burns & Co., Oklahoma City,

Proceeds—For working capital.
Office—304 S.
St., Omaha, Neb. Underwriters—The First Trust Co.

electrical

Broadway,

common

1960

Business—Manufacturers of

Proceeds—For general corporate purposes.

it Starfire Boat Corp.
Sept. 1, 1960 (letter of

(9/19-23)

;y, yyy'.'.

shares of
Price—To be supplied by

(par 20 cents).

Havener Securities

share.

1960
stock

cents

June

Corp. (10/3-7)
(letter of notification) 50,000

Corp.

Aug. 25, 1960 filed 120,000 shares of

•

vices.

Securities Acceptance Corp.
Aug. 31, 1960 (letter of notification) 10,000 shares of 5%
cumulative preferred stock (par $25). Price—$24.50 per

in.

York, N. Y.

Instrument

amendment.

Bros, and Earl Edden Co., New York, N. Y.

18th

Rochelle, N. Y. Underwriter—G. H.

—657

(letter of notification) 100,000 shares of
common stock
(par one cent). Price—$1 per share. Pro¬
ceeds—For general corporate purposes. Office — 330
Wagaraw Rd., Hawthorne, N. J. Underwriters—Bertner
15,

26,

common

/„y.V'.v

Sealed Air Corp.

Standard

Aug.

—

•

stock

common

'-.y-yy.

Offering—Expected in early October.

Spray-Bilt, Inc. (9/16)
July 25 filed (in the Atlanta SEC office) 100,000 shares
of common stock (par 10c). Price—$2.50
per share. Pro¬
ceeds—To increase inventory of
"fiberglaspray" equip¬
ment, establish seven additional regional sales offices,
and add to working capital. Office -i— 3605 East Tenth
Court, Hialeah, Fla. Underwriters—J. I. Magaril Co.,1 37
Wall St., New York City and Sandkuhl &
Company, Inc.,
of New York City and
Newark, N. J.

New York.

Ave., Brooklyn, N. Y. Under¬
Co., Inc., 15 William St., New York,

Materiel

clothes,

and

operates,

The firm makes and sells
through two subsidiaries,
reduce indebtedness, with

the balance for

working capital. Office — 1415 Clinton
Rochester, N. Y. Underwriter—Cartwright
Parmelee, New York City (managing).

Ave.
&

North,

Topic Electronics, Inc..
Aug. 17, 1960 (letter of notification) 85,000 shares of
common stock (no par). Price—$3.40 per share. Proceeds
—To pay promissory notes, general obligations and for
working capital. Office—8 Mercer Road, Natick, Mass.
Underwriter—DuPont, Homsey & Co., Boston, Mass.
^ Transitron Electronics Corp.
Sept. 9, 1960, filed 1,250,000 shares of outstanding com¬
mon stock
(par $1). Price—To be supplied by amend¬
ment.
Proceeds
To selling stockholders. Office—168
Albion St.,
Wakefield, Mass.
Underwriter — Merrill
Lynch, Pierce, Fenner & Smith Inc., New York City
(managing). Offering—Expected in late October.
—

Continued

page

(1084)

The Commercial and Financial Chronicle

Continued from page 39

• Trav-Ier

Radio Corp.

(9/19-23)
Aug. 5, 1960 filed $2,200,000 of 6Vz% sinking fund de¬
bentures, due 1975, with 15-year common stock purchase
warrants, two such warrants (for the purchase of an ag¬
50 shares) to be issued with each $1,000
of debentures. Price—100% of principal amount of de¬
bentures. jausiness—The company makes radios, TV sets,

gregate

tape

recorders, and various types of high fidelity and
stereophonic combinations. Proceeds — $922,500 will be
used
to
redeem
the
outstanding $900,000
principal
of

amount

1967,

Office—571

Lee

—

Holton, Henderson & Co., Los Angeles,

—

Triangle Lumber Corp. (9/19-23)
July 28, 1960 filed 140,000 shares of common stock (par
$1), of which 118,000 shares are to be publicly offered
by the company and the remaining 22,000 shares are
to

offered

to the

company's officers and employees.
Prices—For the 118,000 shares, $8 per share; for the 22,000 shares,, $7.20 per share. Businesss — The
buying,
warehousing, milling, and distribution of lumber, ply¬
wood, and millwork for use in residential and industrial
construction. Proceeds

additional

tion

Plaza, Great Neck, L: I., N. Y. Underwriter—Bear,
Stearns & Co., New York City (managing).
Trout Mining Co.

Aug.

1960 filed 296,579 shares of no par common
(with warrants), to be offered to holders of the

outstanding

common on

the basis of four

shares for

new

each five shares held. Price—$1
per share. Business—The

is engaged in the mining of silver, lead, zinc,
and manganese dioxide. Proceeds—For
working capital,
company

to repay a bank loan, and for
exploration and develop¬
ment of ere bodies. Office—233

City.

Broadway, New York
Offering—Expected in mid-

Underwriter—None.

October.

it Umpqua Oil Corp.
Aug. 31, 1960 (letter of notification)

1533
;

None.

share). Pro¬
property. Office—

Short

Street, Roseburg, Ore.
•

Co.* (9/22)

Union Electric
*

Underwriter—

Aug. 12, 1960 filed $50,000,00(1 of 30-year first mortgage
bonds, due 1990. Proceeds — To meet construction ex¬
penses and retire short-term loans. Office—315 No.

12th

Blvd., St. Louis, Mo. Underwriters—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co., Inc.; First Boston
Corp. and White, Weld & Co.
(jointly); Lehman Brothers, Blyth & Co. (handling the
books), Eastman Dillon, Union Securities & Co. and
Bear, Stearns & Co. (jointly). Bids—Expected to be re¬

ceived

Sept. 22

Meeting—Sept. 20 at 3:00
•

a.m.

p.m.

(EDT).

Corp.
July 8, 1960, filed 150,248 shares of outstanding class A
stock (par $1), and 75,124 shares of
outstanding class B
stock (par $1). Price — To be
supplied by amendment.
Proceeds
To selling stockholders.
Office
811 Rusk
Ave., Houston, Texas.
Underwriters
Carl M. Loeb,
Rhoades & Co., Merrill Lynch,
Pierce, Fenner & Smith
Inc., and Smith, Barney & Co., Inc., all of New York
City. Offering—Expected in late September.
—

—

United
ElectroDynamics, Inc.
Aug. 22, 1960 filed 169,500 shares of

stock, of

156,000 shares

issuing company and 13,500 shares, representing

the

outstanding stock,
the

are

to be

amendment.

offered

for

offered

for

Price

present holders thereof.

—

the

account

be supplied

Business—The

company
is engaged pri¬
marily in the development and manufacture of electronic
measurement instruments, and in nuclear
detection work
relating to the earth sciences. Proceeds
To liquidate
$800,000 of bank indebtedness, with the balance for
—

gen¬

eral funds.

Office—200 Allendale Road,
Pasadena, Calif.
Underwriter
William R. Staats &
Co., Los Angeles,
—

Calif, (managing).
United

Pacific Aluminum
Corp.
Aug. 24, 1960 filed $7,750,000 of convertible
subordinated
debentures, due 1975. Price—To be supplied
by amend¬
ment.
Proceeds—Together with other funds, the proceeds
will

be used

for the erection of a
primary alu¬
minum reduction
facility. Office
Los Angeles, Calif.
Underwriter—Straus, Blosser & McDowell, Chicago, 111
pay

—

(managing).
United

March

States
filed

Boat

Corp.

350,000 shares

publicly offered.

Price—$2

826^will be applied to the
States Pool
Corp. which

purposes, and

the

per

common

share.

stock

Proceeds—$221,-

repayment of loans to United

were

balance

used for general
corporate
be utilized for
working

will

capital, including a later repayment of
$45,000 to U. S
Pool Corp.
Office —27 Haynes
Avenue, Newark, N. J
Underwriter
Richard Bruce & Co.,
Inc., New York.
Note—This offering has been
postponed.
—

Urban

Development Corp.
filed

par).

Price—$10

porate purposes,

300,000 shares of

per

share.

common

stock

Proceeds—For general

(no
cor¬

including debt reduction. Office---Mem-

150,000

(par 10 cents). Price—$2

per

shares of
share. Busi¬

—Terminal

be used to retire certain

refiling of an issue originally filed last June 6 and
subsequently withdrawn.
The offering is scheduled for

-511-12 Desert
—The

outstanding indebtedness. Office

Bldg., Salt Lake City, Utah. Underwriter

competitive bidding. Prob¬

able bidders: Halsey, Stuart & Co. Inc.; Blyth & Co. and
First Boston Corp. (jointly); White, Weld & Co.; Stone
& Webster

Securities Corp. (jointly); Salomon Bros. &
Hutzler; Kidder, Peabody & Co.; Eastman Dillon, Union
Securities & Co. and Smith, Barney & Co.
(jointly);
Lehman Bros.; Bear, Stearns & Co. Bids—Expected to
be received on Sept. 14, at 11:30 a.m. for the
bonds, and
12:30 p.m. for the preferred.
Information Meeting—
Scheduled for Sept. 12 at 2 Rector St., New York City
at 2:00 p.m.
•

•

Valdale

Co., Inc. (10/4)
July 27, 1960 (letter of notification) 100,000 shares of
common stock (par 10 cents). Price—$3
per share. Pro¬
ceeds

To pay accounts payable,

reduce a bank loan,
advertising and for working capital. Office—Red Lion,
Pa.

—

Underwriters—B.
& Co. both

mons

Rubin

of New York

Co.

and

Sim¬

City.

150,000 shares of
(par 10 cents). Price—$2 per share. Pro¬

stock

ceeds—To pay in full the remainder of such
to capital stock of International Data

subscription
Systems, Inc. and

retire

outstanding notes.

Office—2321

Garland, Tex. Underwriter—Hauser,
Co., Dallas, Tex.
■

&
•

■.

Forest

Lane,

Murdoch, Rippey
••V

Vendo Co.

July 29, 1960 filed $5,225,000 of 4V2% convertible sub¬
ordinated debentures, due 1980, being offered to holders
of the outstanding common on the basis of $100 prin¬
cipal amount of debentures for each 50 shares held of
record

Sept. 7 with rights to expire on Sept. 21. Proceeds
working capital; all or part of the proceeds may be
applied to the reduction of short-term bank borrowings,

—For

amounted

to $8,500,000 on June 30. Office—17400
St., Kansas City, Mo. Underwriter — Kidder,
Peabody & Co. (managing).
'
/ J
E.

12th

Virginia Capital Corp.
Aug. 31, 1960 filed 60,000 shares of common stock. Price
—To be supplied by amendment. Business—The com¬
pany is licensed by the Small Business Adrri^nistration
to operate throughout Virginia under the Small Busi¬
ness

Investment Act of

1958. Proceeds—To

furnish

ital, long-term loans, and consulting and advisory
ices

selected

State-Planters

small

business

concerns.

Office

cap¬

serv¬

—

907

Bank

—J. C. Wheat &

Underwriter—

'v-■;

•

Whitmoyer Laboratories, Inc.* (9/20)
Jan. 28 filed 85,000 shares of common stock and $500,000
of 6% subordinated debentures, due 1977, with warrants
for the purchase of 10,000 additional common shares at
$5 per share.
Price — For the debentures, 100% of
principal amount; for the 85,000 common shares, $6
per share.
Proceeds—For general corporate purposes,
including the reduction of indebtedness,-sales promo¬
tion, and equipment.
Office—Myerstown, Pa.
Under¬
writer—Hallowell, Sulzberger, Jenks, Kirkland & Co..
Philadelphia, Pa.
•

Wilier Color Television

System, Inc. (10/3-7)
(letter of notification) 80,890 shares of common
stock
(par $1).
Price—$3 per share.
Proceeds—For
general corporate purposes.
Office—151 Odell Avenue,
Yonkers, N. Y.
Underwriter—Equity Securities Co., 39

Jan. 29

Broadway, New York City.
•
Williamsburg Greetings Corp. (10/24-28)
Aug. 26, 1960 filed 180,000 shares of common stock
(par 25 cents).
Price — $3 per share.
Business—The
company and its subsidiaries are engaged chiefly in the
dseign, production, and sale of greeting cards. Proceeds

—About

it Vector Industries, Inc.
Aug. 29, 1960 (letter of notification)
common

Dr., Plainview, L. I.,

about the third week in October.

First Trust Co. of Lincoln, Nebr.

Utah Power & Light Co.

writer—To be determined by

tation. Proceeds—For general corporate purposes. Office

Planned Investing Corp., New York, N. Y. Note—This is

Bldg., Richmond, Va. Underwriter
Co., Richmond, Va. (managing).

$400,000 will be applied to the reduction of
factoring advances, with the balance to be added to
working capital. Office—3280 Broadway, New York City?
Underwriters

City,

and

Standard

—

Securities

Bruno-Lenchner,

Inc.,

Corp., New York

Pittsburgh,

Amos Treat & Co., Inc., New York
City.

Pa.,? and

WonderBowl, Inc.
April 14 filed 3,401,351 shares of common stock (par $2).
Price—$2 per share. Proceeds—For purchase of certain
property, for constructing a motel on said property and
various leasehold improvements
Sunset Boulevard, Los

the property. Office

—7805

Angeles, Calif. /Under¬
writer—Standard Securities Corp., same address.
?

• Woodbury Telephone Co.
Sept. 9, 1960 (letter of notification), 7,066 shares of com¬
mon stock to be offered for
subscription to stockholders
^o&record Oct. 17, 1960, on the basis of one share for each
two shares held.
Rights expire Nov. 14,' 1960. Price—
At par ($25 per share). Proceeds—To
increase telephone
service.

Address—Woodbury, Conn. Underwriter—None.

•

Youngstown Sheet & Tube Co. ;
Sept. 7, 1960 filed $60,000,000 of first mortgage sinking
fuhd bonds,'series H, due 1990. Price—To be
supplied by
amendment.

Proceeds—For capital expenditures and to
replenish working capital. Office — 7655 Market
St.J.
Youngstown 1, Ohio. Underwriters—Kuhn, Loeb & Co.
and Smith, Barney &
Co., both of New York City (man¬
aging). Offering—Expected in early October.

• WaLace
Press, Inc. (9/19-23)
Aug. 3, 1960 filed 184,435 shares of common stock (par
$10). Price—To be supplied by amendment. Business—

ATTENTION UNDERWRITERS!

Commercial

printing and the production of business
forms, catalogs, and technical manuals. Proceeds
To
selling stockholders. Office—Chicago, 111. Underwriters—
Shearson, Hammill & Co., New York City, and Wm. H.
Tegtmeyer & Co., Chicago, 111. (managing).

Do you have an issue you're
planning to register?

Our

Corporation News Department would

to know about it

that

can

prepare an

item

similar to those you'll find hereunder.

it Wear-Weld Engineering & Mfg. Co.
Aug. 29, 1960 (letter of notification) 87,500 shares of
common stock (no
par) of which 11,000 shares are to be

Would
write

telephone us at REctor 2-9570
at 25 Park Place, New York 7, N. Y.

you

offered

by the underwriters. Price—$2 per share. Pro¬
ceeds—To purchase inventory, tools and for additional
working capital. Office — 4831 S. E. Division St., Port¬

land, Oreg. Underwriter—None.
common

which

are

stock

notification)

refunding and $500,000 are to be
publicly offered. Price—At par. Proceeds—$440,000 will

—

-fc.

Information

at the Bankers Trust Co.

Union Texas Natural Gas

Corp.

(letter of

be used for debentures

which

400,000 shares

stock. Price—At par (50 cents per
ceeds—For expenses to develop oil
common

1960

ness—Manufacturers of missiles and aircraft instrumen¬

22,

stock

Thursday, September 15, 1960

Aug. 25, 1960 filed $800,000 of 6% first mortgage sink¬
ing fund bonds, due Oct. 1, 1975, of which $300,000 will

For

general funds to provide
working capital, and may be used in part
to retire short-term indebtedness. Office—45 North Sta¬
—

White Avionics

common

struction purposes and repayment of bank loans. Under¬

Triangle Business Machine, Inc. (9/19-23)
Aug. 25, 1960 (letter of notification) 200,000 shares of
common stock. Price—At par ($1 per share). Proceeds—
To purchase machinery and equipment and for working
capital. Office—334 Venice Blvd., Los Angeles 15, Calif.
Calif,

Co.

Service

•

Sept.

Jackson

•

Underwriter

Gas

Union Securities Investment

Higginson

West

Blvd., Chicago, 111.
Under¬
Corp., New York City, and
Straus, Blosser & McDowell, Chicago (managing).
^
writers

Utah

—

(9/14)
July 29, 1960 filed $16 million of first mortgage bonds,
due 1990, and $10 million (400,000 shares) of $25 par
cumulative preferred stock, series A. Proceeds—For con¬

12-year 6% sinking fund debentures due
the balance for general corporate purposes.

with

phis, Tenn. Underwriter
Co., Memphis, Tenn.

•

stock

Co. of America
(10/17-21)*,
31, 1960 filed 140,000 shares of class A common
(par $1). Price—$6 per share. Business—The man¬

ufacture

Proceeds

and

sale

electrical

resistance

steel

tubing.

$100,000 will be applied to reduction of a
$600,000 revolving bank credit, $200,000 for new equip¬
ment and machinery, and the balance for general cor¬
porate purposes, including working capital. Office—2001
S.
&

Prospective Offerings

Welded Tube

Aug.

July

was

retail chain is

—

Water

St., Philadelphia, Pa. Underwriter—H. Hentz
Co., New York City (managing).
/
\

•

Wenwood Organizations Inc.
June 17,1960 filed $550,000 of 7V2% subordinated sinking
fund debentures due August, 1970 (with common stock

purchase

Alexander's

warrants).

Price—100%

principal amount.
Proceeds—$100,000 will be used for payment of a bank
loan incurred to help finance the disposal plant and an
estimated additional $50,000 to complete the plant; $109,000 to retire 10% debentures issued in payment of certain

obligations of the company for services rendered; $25,000
for a sales program
in connection with the Florida
homes; and the balance for working capital to finance
the continued development of the residential community

Department Stores,
reported

contemplating

confirmation

it Alloys
Sept. 12,
common

Island

that

was

this
an

Inc.
(N. Y.)-based

Bronx

issue of

common

Unlimited
1960

was

reported

that

registration

stock is expected. Office—21-09 43rd
Ave., Long

City, L. I., N. Y. Underwriters—C.

Towbin

stock.

available.

Co.

and

Unterberg,

Newburger, Loeb & Co., both of New

York City.

^-Americana Properties, Inc.
Sept. 12, 1960 it was reported that October registration
is expected of $600,000 of common stock. The
company
is

the

owns

real

estate

and

bowling

center

business

and

three bowling centers. Proceeds—For
general cor¬

porate purposes.

Office—Oakdale, L. I., N. Y. Under¬
writer—Plymouth Securities Corp., 92 Liberty St., New

York 6, N. Y.

American Telephone &
Telegraph Co. (1G/25)
July 20, 1960, the directors authorized a new debenture

in Sarasota and the construction of homes in West Palm

bond issue of

Beach, and the development of a shopping center in
Selden, L. I. Office—526 North Washington Blvd., Sara¬
sota, Fla. Underwriter—Michael G. Kletz & Co., Inc.,
New York. Offering—Expected in late September.

and

Western

Factors,

Inc.

June 29,1960, filed 700,000 shares of common stock. Price

—$1.50

share. Proceeds—To be used principally for
the purchase of additional accounts receivable and also
may be used to liquidate current and long-term liabil¬
ities.

per

Office —1201

Continental

Bank Bldg., Salt

Lake

City, Utah.
Business—Factoring.
Underwriter—Elmer
K. Aagaard, Newhouse Bldg., .Salt Lake City, Utah.,

$250,000,000. Proceeds — For improvement
Telephone services. Office—195
Broadway, New York City. Underwriter—To be deter¬
expansion of Bell

mined by competitive bidding. Probable bidders: Morgan
Stanley & Co., and The First Boston Corp. and Halsey,
Stuart & Co. Inc. (jointly). Bids — Expected to be re¬
ceived

on
Oct. 25. Information Meeting—Scheduled
Oct. 20 at 2:30 p.m., 195
Broadway, New York City.

for

Amphenol-Borg Electronics Corp.
7, 1960 M. L.. Devine, President, announced that

Sept.

part of the company's $4,175,000 building program would
be financed through the sale of debt,securities. Office-^

Broadview, 111.

i"c\V

„

-it

Volume

192

Number

5986

The Commercial and Financial Chronicle

Arkansas Power & Light

(1085)

June

Co..
20, I960, it was announced that this subsidiary of
Middle South Utilities, Inc. might issue $15,000,000 of

price obtainable but not less favorable to the company
than a 51A% basis. Proceeds—To be used to finance the

mortgage bonds sometime in December.
Under¬
writer—To be determined by competitive bidding. Prob¬

continuing expansion and improvement of the company's
electric and gas service facilities in a 65-county area

able bidders: Halsey, Stuart & Co. Inc.; Eastman Dillon,
Securities & Co. and Equitable Securities Corp.

mined

Houston Lighting & Power Co.
22 it was announced in the

$35,000,000 maturing not earlier than 1990 for the best

first

outside

Union

Greater

Underwriter—To

Detroit.

March

White, Weld & Co. (jointly); Merrill Lynch, Pierce, Feri-

bank loans.

First

ner

& Smith Inc.

Boston Corp.* and Harriman Ripley & Co., Inc.
Bids—Expected to be received on Dec. 12 up to 11:30 a.m.

Cove

•A* Associated Dry Goods Corp.
Sept. 14, 1960 it was reported that the filing of $20,000,000

is imminent.

of debentures

New York City.
York City

Underwriter

Fifth Ave.,
Lehman Brothers, New

letter of notification covering an undetermined

breakable" marine radio known

common

stock, in October. Busi¬
as

the "Marlin 200." Pro¬

ceeds—For the development of the "Marlin

300," which
is to be a similarly constructed radio with a ship-toshore band. Office—63-65 Mt. Pleasant Ave., Newark,

•

Dallas

wholly-owned sub¬

Light Co.
stated by the company's president
that there may possibly be some new financing during
1961, with no indication as to type and amount. Office—
1506 Commerce Street, Dallas, Texas. Underwriter—To
be determined by competitive bidding. Probable bidders:

Inc.
Aug. 3, 1960 it was reported that a letter of notification
is planned for later this year.
Proceeds—For further
development of the "Skyjector." Office—342 Madison
Ave., New York City.

it Dodge Wire Manufacturing Corp.
Sept. 12, 1960 it was reported that October registration
is expected of $600,000 of common stock. Proceeds—For
general corporate purposes.
Office — Covington, Ga.
Underwriter—Plymouth Securities Corp., 92 Liberty St.,

^ Automation Labs Inc.
Sept. 14, 1960 it was reported that a "Reg A" filing is

New York 6,

N. J. Underwriter—Mr.
is actively

seeking

Roth, Comptroller, states that he
underwriter to handle the offer¬

ing. Note—The issuing company is

sidiary of Auto-Temp Inc.

Business—Electronics.

Office

—

Y.
Underwriters — Sandkuhl and Company,
Newark, N. J., and New York City, and J. I. Magaril &
Co., New York City.
•

I.,

Bekins

Van

Storage Co.

Street, Los Angeles 15, Calif.

Brooks, Inc.
July 25, 1960 the company stated in its annual report
that about $200,000 is expected to be raised by long term
financing, to be applied to the $385,000 cost of acquiring
real estate adjacent to its Cleveland 14, Ohio, head?
quarters.
^
' ■'
Brooklyn Union. Gas Co.
May 10 it was announced that the company plans no
more financing this year* hut there would be«somq_Jn
1961, although the form it is to take has not as yet been
determined.

Carolina Metal

is ex¬
offer¬
ing, consisting of 100,000 shares of common stock. Price
$5 per share.
Business — The company is a primary

—

aluminum

siding.

International

Florida.Power&
1

Proceeds—For new

machinery, with the balance to working capital. Office
2 Gateway Center, Pittsburgh/ Pa.
Underwriter —

was

Arnold, Wilkins & Co., 50 Broadway, New

York City.

Casavan Industries

Aug. 29, 1960 it was reported by Mr.

Casavena, Presi¬

dent, that registration is imminent of about $5,000,000
of common stock and approximately $4,000,000 of deben¬
tures. Business — The company makes polystyrene and

insulation

named.

Underwrite

Circle Controls Corp.

Aug. 20, 1960 it was reported that a letter of notification
is expected covering 75,000 shares of common stock.
Proceeds — For general corporate purposes, including
expansion and the establishment of sales organizations.
Office—Vineland, N. J. Underwriter—L. C.
Co., Levittown, N. J. Registration—Expected

Wegard &
in Septem¬

ber.

& Southern

Small Business

Investment

Co.

Colorado Interstate Gas Co.

July 28, 1960 the company reported that debt financing
of $70,000,000 is contemplated.
Precise timing depends
on final FPC approval. Office—Colorado Springs,
Colo.
Columbus & Southern Ohio

Electric Co.

13, 1960, it was reported that this utility plans the
sale of about 200,000 shares of common stock to raise
approximately $8-$9,000,000, with the timing set for
the last quarter of this year, sometime after the Novem¬
ber elections. Proceeds—For expansion purposes. Office
—215 N. Front St., Columbus 15, Ohio.

June

^ Consolidated Edison Co.

of New York, Inc.

Sept. 8, 1960, the company announced that its application
to the New York State Public Service Commission for
permission to raise $75,000,000 through the sale of first
and
refunding mortgage bonds is expected in early
October. Proceeds—For expansion. Underwriter—To be

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; First
determined

Bids—Expected Nov. 22.
• Consumers
Power Co.
(12/12)
Sept 14, 1960 it was reported that the company proposes
to issue and sell first mortgage bonds in the amount of
Boston Corp.

Mining Corp.

announced June

nine

years,

and

$4,830,000 the 10th year after the
Avenue, New York City. Un¬

Iowa Electric Light & Power Co.
March 11 President Sutherland Dows stated that bonda
would be sold in order to

supplement money to be ob¬
tained from temporary bank loans, to acquire the $10,000,000 required to finance 1960 construction. Office—
Cedar Rapids, Iowa.
Iowa-Illinois Gas & Electric Co.
June 23, 1960, it was announced that the company's sala
of $15,000,000 of first mortgage bonds in April of this

will carry it through the better part of 1960.

year

The
of
in

company plans some bank borrowing before the end
the year and expects to be in market agairr sometime

that the company anticipates

1961, probably also for senior debt securities.

approximating $25,-

Laclede Gas Co.

May 10 it
000

announced that in addition to the $15,000,capital provided by the July bond-equity

was

new

financing, $33,000,000 will
rities other than

common

from later sale of

secu¬

stock and from retained

earn-

come

/ ings.
Lone Star Gas Co3

reported that this company is develop¬

Aug. 3, 1960, it was reported that about $37,000,000 will
be raised to cover capital requirements over the next
year.
Office—301 So. Harwood Street, Dallas 1, Texas.

ing plans for borrowing operations, which may include
the issuance of debt securities, and possibly occur later
this year. Office—Detroit, Mich.

Loral Electronics Corp.
Sept. 1, 1960 it was reported that November registration
is expected of up to $5,000,000 of convertible debentures.

Foto Chrome Co.

stock filing

Aug. 17, 1960, it was reported that a common

offing. Underwriter—Shearson, Hammill & Co.

Office—New York 72, N. Y.

it Geophysics, Inc.
Sept. 12, 1960 it was reported that the filing of an issue
of common stock is imminent.
Office — Boston, Mass.
Underwriter—C. E. Unterberg, Towbin Co., New York

New York

Proceeds—For

^ Georgia Bonded Fibers, Inc.
Sept. 14, 1960 it was reported that October registration
of 150,000 shares of common stock is expected. Offices—
Newark, N. J., and Buena, Vista, Va. Underwriter—
Sandkuhl and Company, Newark, N. J., and N. Y. City.

Underwriter—Lehman Bros.,
Offering—Expected in December.

termined

Georgia Power Co.
tration
with

Aug. 5, 1960 it was reported that the company is now
contemplating a public offering of its securities, possibly
$1V2 million of common stock. Office—Atlanta, Ga.

Nov. 15.

merger. Office—535 Fifth

Motor Credit Co.

Dec. 9 it

Citizens

par, and will mature at the rates of $1,000,000 an¬
nually for one to three years, $500,000 annually for lour

Ltd.

This company on May 31 floated
a 400,000 common share offering through Merrill Lynch,
Pierce, Fenner & Smith Inc. and associates at a price of
$59,125 per share.
was

was

City.

and processes marble for
construction. Proceeds—For expansion to meet $10,000,000 backlog. Office—250 Vreeland Ave., Paterson, N. J.
for

company
plans
first ' mortgage
capital expenditures,

000,000 of new money.

is in the

Proceeds—For

the

more, which will be the name of the surviving corpora¬
tion. It is expected that the notes will be issued shortly

an as yet undetermined type of security, and
estimates that in 1961 it will require approximately $50,-

March 28 it

$15,000,000

intends to issue $10,830,000 of 7% secured serial notes in
connection with its merger with Canton Co. of Balti¬

Light Co.

announced

—

polyurethane

Capital

further financing in the fall of 1960

Ford

sell

derwriter—None.

July 26, 1960 it was reported that this company, which
expects to incorporate in Bermuda, is planning its ini¬
tial financing to occur later in the year. Proceeds — To
acquire major equity positions in large and mediumsize...electronics companies outside the United States.
Underwriter — Bear, Stearns & Co., New York City.
Note—Sept. 1 it was announced that the company is
seeking permission from the SEC to register as an in¬
vestment co., and a hearing may be requested until
Sept. 15.
*
June

was

1990.

1, 1960 In the 1959 Annual Re¬
port of International Mining Corp. that the corporation

000,000 of

Products Co.

Aug. 23, 1960, it was reported that registration
pected in September of the company's first public

manufacturer

and

International
It

N. Y.

Electronics

Bobbie

30
due

Ind.

Corp., New York City.

July 6 it was reported that this company is contemplat¬
ing a common stock issue.
Office —1335 So. Figuroa

(11/15)
reported that

Indianapolis Power & Light Co.
According to a prospectus filed with the SEC on Aug.
25 (see "Securities Now in
Registration"), the company
plans the sale of about $14,000,000 of additional securi¬
ties in 1963. Office—25 Monument
Circle, Indianapolis,

Dynacolor Corp.
Aug. 22, 1960 it was reported that new financing will
take place in November or December. Office—1999 Mt.
Read Blvd., Rochester, N. Y. Underwriter—The com¬
pany's initial financing was handled by Lee Higginson

Westbury,

Building, Houston,

To be named.

Automation For Industry,

imminent.

was

Electric

curities Corp. Bids—Expected to be received

Power

Sept. 14, 1960 it

—

are

Underwriter—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Blyth
& Co., Inc., Lazard Freres & Co. and The First
Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Smith
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); Salomon Bros, & Hutzler and Eastman Dil¬
lon, Union Securities & Co. (jointly); Equitable Se¬

—Plymouth Securities Corp., New York City.

par

Office

securities

etc.

regulation "A" filing sometime soon. Proceeds—For gen¬
eral corporate purposes. Office—Miami, Fla. Underwriter

of its $1

additional

issue

bonds

reported that the company plans a

was

ness—The company makes and sells a "water-tight, un¬

of shares

& Hutzler.

March

Custom Craft Industries

July 13, 1960 it

number

Idaho Power Co.

through department stores. Proceeds—For general cor¬
porate purposes. Office—Glen Cove, L. I., N. Y. Under¬
writer—Hill Thompson & Co., Inc., New York City, N. Y.

(managing).

^ Atlantic Transistor Corp.
Sept. 12, 1960 the company reported that it is contem¬
plating filing its first public offering, consisting of a

Studies to determine the nature and

issuance

Texas.

stock. Business—The distribution of vitamins

common

the

Bros.

Laboratories

Aug. 29, 1960 it was announced that imminent registra¬
tion is expected of the company's first public offering

Office—417

—

Pharmaceutical

annual

timing
presently
under way. Last August's offering of
$25,000,000 of 4%%
first mortgage bonds was headed by Lehman
Brothers,
Eastman Dillon, Union Securities & Co. and Salomon

by competitive bidding. Probable bidders: For
bonds—Halsey, Stuart & Co. Inc.; White, Weld & Co.,
and Shields & Co. (jointly); Morgan Stanley & Co.; The

(jointly); Blyth & Co. and Dean Witter & Co. (jointly);

company's

report that it anticipates approximately $35 million in
new
money will be required in 1960 to support the
year's construction program, and to repay outstanding

deter¬

Lehman Brothers, Stone & Webster Securities Corp. and

was

Louisville Gas & Electric Co.

April 27 it

Loeb

a.m.

Meeting

—

and 12 noon,

Scheduled

room

Ave., New York City.

it Ginn & Co.
Sept. 14, 1960 it

was

reported that

for

Oct.

October.

—For

fall.

Office—Honolulu,

expansion, including

warehouse and addi¬

new

York

City, N. Y.

4r Meadow Brook National Bank
Sept. 14, 1960 it was reported that pursuant to an Oct.
11
stockholders meeting a rights
offering of 462,564
shares is expected. The new shares will be offered to

Undetermined num¬
around the
Office—Bos¬

Hawaii.

Wallpapers

tional stores. Office—153-22 Jamaica Ave., Jamaica, L. I.,
N. Y. Underwriter — Hill, Thompson & Co., Inc., New

stockholders

the basis of

one

share for each 4^2 shares

held. Price—To be announced. Proceeds—To

supply cash

for merger

with Colonial Trust Co. Office—West Hemp¬
stead, L. I., N. Y. Underwriter—Lee Higginson Corp.,
New York City (managing).

Hawaiian Electric Co.

this

American Securities Corp. and Wood,
(jointly); Eastman Dillon, Union Se¬

Co.

bentures and about $100,000 of common stock. Proceeds

ton, Mass. Underwriter—White, Weld & Co., New York
City (managing).

time

expected to consist of about $650,000 of convertible de¬

July 25, 1960 it was reported that in'addition to the
rights offering currently being made (see "Securities
in Registration"), this utility contemplates further fi¬
nancing through the issuance of 250,000 shares of $20
par preferred stock ($5,000,000), perhaps to occur some¬

de¬

was announced that registration is im¬
minent of the company's first public offering, which is

1600, 250 Park

Business—Publishing.

Co.,

Martin Paints &

;

Aug. 29, 1960 it

ber of common shares is expected to be filed

middle

Underwriter—To

curities & Co. and White, Weld & Co. (jointly); Kidder,
Peabody & Co. and Goldman, Sachs & Co. (jointly). Bids
—Expected to be received on Oct. 18.

plans regis¬

$12,000,000 of 30-year first mortgage bonds
Underwriter — To be determined by

Information

Struthers

the ? SEC; }:

between 10:00

construction.

by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Leh¬
man Brothers
and Blyth & Co., Inc. (jointly); Kuhn,

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.; Equitable Securities
Corp., and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co., Inc., and Kidder, Peabody & Co.
(jointly); The First Boston Corp. Registration—Sched¬
uled for Sept. 26.
Bids—Expected to be received on
Nov.

(10/18)

this company plans the
$16,000,000 of first mortgage bonds.

reported that

was

issuance and sale of

(11/3)

announced that the company

City.

Merrimack Essex Electric Co.
v

(11/16)

July 19, 1960, it was reported that this subsidiary of the
New England Electric System plans to sell an initial
series of

$7,500,000 of preferred stock. Office

Mass. Underwriter

—

Salem,

To be determined by competitive

Hayes Aircraft Corp.
was reported that an issue of convertible de¬
is being discussed. Office—Birmingham, Ala.
Possible Underwriter—Sterne, Agee & Leach, Birming¬

Feb. 12 it
bentures

ham, Ala.

bidding. Probable bidders: Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Smith and Eastman Dillon, Union Securities
Continued

page 42

Continued

The Commercial and Financial Chronicle

(1086)

from

page

New York

City and A. G. Edwards & Sons of St. Louis,
(jointly).

Mo.

Co.

(jointly); First Boston Corp. Bids—Expected to be

received

Nov.

Nov. 16. Information Meeting—Scheduled for

Midland

Enterprises

April 8 it

was

stated

company's annual report

that it contemplates the issuance on or before March 31,
1961 of a bond issue in an aggregate amount not to exceed

Proceeds — To finance river transportation
presently on order and expected to be
Office—Cincinnati, Ohio.

$4,000,000.

equipment
ordered.
i

Missouri

Pacific

RR.

Aug. 17, 1960 it was reported that the road is planning
the sale of $3,975,000 of equipment trust
certificates.
Underwriter—To be determined by competitive bidding.

Bidders—Halsey, Stuart & Co. Inc., and Salomon Bros.
& Hutzler. Bids—Expected to be received on Sept. 19
National

Airlines

Aug. 23, 1960, it was reported that about $20,000,000 of
new financing, possibly in the form of one $100 convert¬
ible debenture for each seven shares of common held,
is expected. Business—National Airlines is the country's
10th largest air carrier, based on 1959 operating rev¬

Office—Miami, Fla. Underwriter—Lehman Broth¬

enues.

New York City (managing).

ers,

New Jersey Bell Telephone Co. (11/15)
Sept. 1, 1960 approval was obtained from the New Jersey
Board of Public Utility Commissioners for the sale of
$20,000,000 of 40-year debentures. Proceeds—To reduce
indebtedness and to supply funds for capital expendi¬
tures, which are expected to reach a record high of
$105,000,000 in 1960. Office—Newark, N. J. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Shields & Co. (jointly); Morgan
Stanley & Co.; First
Boston Corp. Bids—Expected Nov. 15.

Northern

Natural Gas Co.

It was reported on Aug. 2, 1960 that the
utility is con¬
templating issuing $30,000,000 of debentures in the Fall.

Office—Omaha, Neb.
Northern States Power Co.

May 11 it

was

(Minn.)

(12/6)

reported that the company plans the is¬
$35,000,000 of 30-year first mortgage

bonds. Underwriter—To

determined

by competitive
bidding. Probable bidders: Halsey, Stuart & Co., Inc.;
Merrill Lynch, Pierce, Fenner & Smith Inc.,
Kidder,
Peabody & Co. and White, Weld & Co. (jointly); The
First Boston Corp. and Blyth & Co., Inc.
(jointly); Leh¬
Brothers and Riter & Co.

man

(jointly); Equitable Se¬
Corp. and Eastman Dillon, Union Securities &
(jointly). Bids—Expected to be received by Dec. 6.

curities

Co.

offering to holders of record Sept. 15, 1960

125,000 additional shares of
of

one

new

expire Oct.

common

stock

share for each five shares then

the

basis

held. Rights

Price—$105 per share. Office—Chicago.
Underwriter—Blyth & Co., Inc., New York City (man¬
aging).
One Maiden Lane

Fund, Inc.

29, 1960 it was reported that registration is ex¬
pected on or about Oct. 15 of 300,000 shares of common
For

Business—This is

new

mutual fund.

Proceeds—

investment, mainly in listed convertible debentures

and U. S.

York

38,

Maiden

Treasury Bonds. Office—1 Maiden Lane, New
N. Y.
Underwriter—G. F. Nicholls Inc., 1

Lane, New York 38, N. Y.

Orange & Rockland Utilities, Inc.
v
April 18 it was stated that the company presently ex¬
pects that such part of its construction program through
1962 and the
refunding of $6,442,000 series B bonds ma¬
turing in 1961 as is not financed by the sale of the com¬
pany's 39,165 shares of its convertible cumulative pre¬
ferred stock, series E, 5% (par $100) will be financed
from the proceeds of sale in
1961, subject to market con¬

ditions, of $10,000,000 of its first mortgage bonds, from
depreciation and retained earnings and, to the extent of
any remaining balance, from the proceeds of additional
short-term borrowings.
Otter Tail Power Co.

Business—The

about

$15 million of

yet undetermined

and

Stone

& Webster Securities

Corp.

Aug. 29, 1960 it
issue

was

April 8 it

(jointly).

Public Service ^Co. of New Hampshire

$6,000,000 of bonds. Office—1087 Elm Street,
Manchester, N. H. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; First Boston Corp.; Blyth & Co., Inc.; Equi¬
table Securities Corp., and Eastman Dillon, Union Secu¬
rities & Co. (jointly). Bids—Expected Nov. 15.
Co.

26, 1960 it was reported that in addition to the
$50,000,000 to be obtained from the Sept. 20 bond offer¬
ing, $95,000,000 more will be needed to complete the
1960 construction program. Further financing is expect¬
later

the

with the type and timing

year,

July 6 it

United Gas

yet

1960 are as yet
indefinite, and there is a distinct pos¬
sibility that it might be postponed to 1961." OfficeFergus Falls, Minn.

Pacific Gas & Electric Co. (11/1)
Aug. 24, 1960, it was announced that the California util¬
ity intends to sell $60,000,000 of first and refunding
Proceeds—For general corporate pur¬
loans incurred for

including the payment of bank

expansion, which expense-will approximate $152,000,-"
000 in 1960. Office—245 Market
Street, San Francisco 6,
Calif. Underwirter—To be
determined by competiitive
bidding. Probable bidders: Blyth & Co., Inc., and First
Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly).
Bids—Expected to be received on Nov. 1.

Philadelphia Aquarium Co.
June 15, 1960, it was
reported that the company plans
to sell about
$2,000,000 of debentures and common stock
to finance an
aquarium in Fairmont Park, Philadelphia,
which would be city-owned and
company-operated un¬
der a lease.
Underwriter—Stroud & Cc. Inc. of Phila¬
delphia, Pa. and New York
Polymer Corp.
Aug. 2, 1960 it was reported that the
company plans to
file $3,500,000 of convertible
debentures shortly. Office
—Reading, Pa. Underwriters
White, Weld & Co. of

(10/31)

Avenue, Shreveport, La. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; First Boston Corp.; Harriman
Ripley & Co., and Goldman, Sachs & Co.
(jointly);

was

White, Weld & Co. and Equitable Securities
(jointly).
Bids—Expected Oct. 31.
w/.
Vogue

Rochester Gas & Electric Corp.

Equitable Securities Corp.

—

Waldbaum, Inc.
May

was

✓

reported

was

obtainable.

was

tion is imminent

covering 60,000 shares of common stock.
Proceeds—For general corporate purposes, including ac-'
quisitions and expansion. Business — The firm makes
baby carriages, play pens, and related items. Office—
Mt. Vernon, N. Y. Underwriter — L. C. Wegard &
Co.,

available. Office—445 Park Ave., New York City.
Southern Natural Gas Co.

April 4 it

was

company

gept. 14, 1960 it
N.

was reported that a "Reg A" filing is
Office—2015 Coney Island
Avenue, Brooklyn,
Underwriters—Sandkuhl and Company, Newark.

N. J., and New York
City, and J. I. Magaril &
York City.
v-.."■

//v

outstanding notes through the issuance of first
mortgage bonds and other debt securities.
The timing
of the issue or issues was not stated in the
report. Office
—Birmingham, Ala.
■'/v-/..; A'-',:
Southern Pacific Co. (9/27)
Aug. 17, 1960 it was reported that the road is planning
sale of $7,500,000 of equipment trust
certificates,
series No. 10, dated Aug.
1, to mature in 15 equal annual
instalments from Aug. 1, 1961. Proceeds—The proceeds
will represent approximately 80% of the cost of 747
freight cars. Underwriter—To be determined by com¬
petitive bidding. Bidders—Halsey, Stuart & Co., Inc.,

Co., New
V:

Webb Corp.

Sept. 14, 1960 it was reported that filing is imminent of
$8,000,000 of subordinated debentures, due Oct. 1, 1975,
640,000 shares of common stock, and warrants for the
purchase of an additional 320,000 common shares.
The

offering will be made in units. Office

stated in the company's annual report that
expects to provide for the payment of

imminent.

Levittown, N. J.
ir Schweppes (U. S. A.) Ltd.
Sept. 13, 1960 it was reported that the company will
shortly register with the SEC.
No confirmation was

;

if Waldorf Auto Leasing Inc.

letter of notifica¬

•

public financing is being

Office—2300 Linden Blvd., Brook¬

lyn, New York.

reported that

that

contemplated by this supermarket chain. No confirma¬
tion

Manufacturing Co.

Aug. 20, 1960 it

Instrument Corp.

electronic components and potentiometers.
Office—381
Empire Boulevard, Brooklyn, N. Y. Underwriter—S. S.
Samet & Co., Inc., 170
Broadway, New York City. V

(jointly); Blyth & Co., Inc.;

The First Boston Corp.

Corp.

Aug. 24, 1960, it was reported/that a Regulation "A"
filing is expected. Business
The corporation makes

Aug. 1, 1960 it was reported that $15,000,000 of debt
financing is expected in the spring of 1961, perhaps in
March. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co., White, Weld & Co. and Shields
& Co. (jointly); Kuhn, Loeb & Co.; Salomon Bros. &

the

determined

Inc.

some

Scharco

Corp.

Fairfield

Co.,

reported that this company plans to con¬
$2,500,000 of funded debt, possibly through
a
private placement, pursuant to which a bond issue
may be expected.
Underwriter—Lehman Brothers, New
York City.
*
solidate

$100,000,000 of subordinated income

Aug. 29, 1960 it was reported that registration is immi¬
nent of $30,000,000 of sinking fund
debentures, due 1980,
and $30,000,000 of first
mortgage bonds.
Office —1525

undetermined.
Ritter

Airlines, Inc.

announced that the company plans to offer

presently being worked on by this company's bankers,
will be used for expansion of the
company's jet fleet.
Underwriters—Dillon, Read & Co., Inc., Lazard Freres
& Co., and Lehman
Brothers, all of New York.

July

was

stockholders

debentures

Public Service Electric & Gas

its

with detachable common stock
purchase war¬
rants, and Hughes Tool Co. (parent) will purchase not
only its pro-rata portion ($78,000,000) but also enough of
any debentures not taken up by others to
provide TWA
with at least $100,000,000.
Proceeds — Together with
$190,000,000
proposed
private
placement
which
is

(11/15)

reported that the company plans

plastics

Office—Hialeah, Fla. Underwriter—L. C. Wegard
Co., .Levittown, N. J. Registration—Expected in
Sep¬

Trans World

distributes

tember.

Co.

Underwriter—Lehman

aging)

Phoenix, Ariz.
Brothers, New York City (man¬
\ ' ; •
• ; ■ V /' ■...
—

West Ohio Gas Co.
June

24, 1960, it

was

announced

ticipates, that in order to
program it

carry

that

the

company

an¬

out its 1960 construction

will consummate long-term financing during

the year to nrovide additional funds in the
approximate
of $400,000.

the

sum

and

July 19, 1960, it was reported that this New Jersey com¬
pany plans to register an issue of common stock in Sep¬
tember. Underwriter—Van
Alstyne, Noel & Co., New
York City.
,
/" ''
'
t! V/y,,/ ,>/■; i:,V
• .i /:•

Salomon

received

Bros. & Hutzler. Bids—Expected
Sept. 21 up to noon (EDT).

Southwestern

Aug. 9, 1960, it

Public

Service

Co.

offering is planned, with the new shares priced about
6V2% below the then existing market price of the com¬

derwriter—.Plymouth

Securities

Corp.,

Liberty

St.,

N. Y.

to August, 1959, au¬
Congress to have $750,000,000 of rev¬
time, it plans its first
public offering, expected to be about $50,000,000, for
sometime in the Fall.
May 13 it was announced that
about $50,000,000 of additional revenue bonds will be
offered in the Spring of 1961. The type of bond issued
will depend on market conditions. Proceeds—To finance
construction of new generating capacity. Power Financ¬
ing Officer: G. O. Wessenauer. Financial Advisor: Leh¬
thorization from

bonds outstanding at any one

pany
use.

petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc., First National City Bank of New York, Equitable
Securities Corp. and Smith, Barney & Co. (jointly); First
Union

Corp.,

Lazard

Securities

Freres

Co.

and

Office—Winona, N. J.

Securities Inc., Philadelphia,
in late October.

Underwriter—Metropolitan
Pa. Registration—Expected
r

Winter

Park
was

Telephone Co.

announced that this company, during the

first

quarter of 1961, will issue and sell approximately
30,000 additional shares of its common stock. This stock
will be offered

a rights basis to
existing stockholders
not be underwritten by one or more
securities brokers. Future plans also include the sale
of $2,000,000 of bonds in the second
quarter of 1961.

and

may

Office—132 East New England

Ave., Winter Park, Fla.

Aug. 2, 1960 it

was reported that the company plans to
$30,000,000 of first mortgage bonds sometime later
in the year. Office—Milwaukee, Wis. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner

sell

Smith
and
Equitable
Securities
Corp.
(jointly);
Glore, Forgan & Co., Eastman Dillon, Union Securities
& Co", and Harriman Ripley &
Co., Inc. (jointly); The
First
Boston
Corp., Lehman Brothers and Salomon
Brothers

& Hutzler

Brothers. Underwriter—To be determined by com¬

Boston

Co.

Wisconsin Electric Power Co.

Tennessee Valley Authority
Jan. 20 announced that, pursuant

man

Products

a full filing of class
contemplated. Business—The com¬
makes wood cabinets for household and industrial

stock

common

May 10 it

firm makes and sells sporting goods. Proceeds—For gen¬
eral corporate purposes. Office—Philadelphia, Pa. Un¬

enue

Building, Dallas 1,

if Stantex Manufacturing Corp.
Sept. 12, 1960 it was reported that an October registra¬
tion of a "Reg. A" filing is expected.
Business —The

New York 6,

Wood

Aug. 24, 1960, it was reported that

reported that in February, 1961, the
company expects to offer about $12,000,000 in bonds and
about $2,000,000 in preferred stock, and that about one
year thereafter a one-for-twenty common stock rights

Mercantile Dallas

Winona

was

Office—720

Whippany Paper Board Co.

Texas.

this utility told this newspaper that an issue of
$6,000,000 of first mortgage bonds is contemplated, al¬
though "plans for implementation of this project during

Corp.; Dillon, Read & Co. and Johnston, Lemon
(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Smith (jointly); Lehman
&

and

electronic, and boating indus¬

tries.

ton

—

company makes
and resins for the
missile,

type.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.,
Inc.; First Bos¬

July 27, 1960, Albert V. Hartl, executive Vice-President

poses,

mem¬

was announced that a letter of notifica¬
tion is expected
covering 75,000 shares of common stock.

mon.

mortgage bonds.

not

Thermadyne

financing

certain

Aug.

stock.

are

Aug. 20, 1960 it

* (Del E.)

ir Northern Trust Co. of Chicago
The bank is

Power Co.

Hutzler, Eastman Dillon, Union Securities & Co., and

and sale of

suance

have not registered with the SEC and who
bers of the NASD to sell TVA bonds.

stated in the company's annual report it

Brothers and Eastman Dillon & Union Securities

(9/19)

up to 1:00 p.m.

Electric
was

Thursday, September 15, 1960

is anticipated that their 1960 construction program will
amount to $39 million and there will be further

Inc.
the

Potomac

March 21 it

Co.,

Salomon

Eastman
Bros.

Dillon,
Hutzler

Zurn

(jointly); Blyth & Co.

Industries, Inc.

July 19, 1960, it was reported that 250,000 shares is ex¬
pected to be filed shortly for the accounts of the com¬
pany and selling stockholders. Business—The manufac¬

(jointly); Chase Manhattan Bank and Morgan Guaranty

ture of mechanical power transmission
equipment,
control devices, and

Trust Co. of N. Y.

ucts.

(jointly); and Blyth & Co. and J. C.
Bradford & Co. (jointly). Note—A ruling on Aug. 4 by
the U. S. Treasury Dept. will permit small dealers who

—Erie, Pa.
York

City.

fluid

building plumbing drainage prod¬
Office
Underwriter—Lee Higginson Corp. of New

Proceeds—For general corporate purposes.

Volume

Number 5986

192

The Commercial and Financial Chronicle

the

THE SECURITY I LIKE BEST...
in

Continued from page 2

steps in putting
include:

key

such

with

first

the

building

(4) Renting the space to high
credit-rated tenants on long-term
leases.

gage
The Uris organization has shown

itself expert in all these phases of

operations. It has had the ability
to foresee the development of new

and to choose prime sites for

buildings.

Because

its

ex¬

Rockefeller

cfs^ dividends on the common

Center, Inc. has joined
with Uris Buildings Corporation
to form a new corporate partnership to erect a 42-story office
building and a 38-story luxury
hotel on two prime sites on the
the

Americas,

pre-

viously

acquired
by
the
Uris
Buildings Corporation. These two
buildings will be close to Rockefeller

Center

veloping
certain

rapidly

de-

,which

area-

appears
the major

one

for about two years,
However, and this is of the
greatest importance, there is good
je.aso.n,
believe that when cash
dividends are paid by the
company, they will be tax-free,
Because of tax losses during construction and accelerated depre-

claS?^'K1

ne£Ugible

quality office buildings
high appraisal values and

been

assured long-term income.
This

assured

long-term income,

guaranteed in effect by leases to
AAA tenants, is particularly im¬

portant. Such assured income was
not possible in real estate 30 years
ago, when the longest leases on
office space ran
five

for only three to

however, it is
the hallmark of a highgrade office
building. The resulting stability of
income puts such real estate in¬
vestment in an entirely different,
category
from
investment,
for
example, in an industrial company
whose earnings are subject to the
Now,

years.

building",

4.uin a?ce 216 °t-1?6

stock

and the New York Life Insurance

Company will finance the hotel.
When
completed in June
1962,
the office building will have an

circumstances^there is a
£°°d Hkelihood that the company s
non-taxable
^

cash dividends will be
as ordinary income.
the

formation

the

downs

utmost

vestment

close-end

Jackson
New

Curtis, 25

York

the

corpo-

announced

Exchange, it

Lloyd

was

Mason,

executive partner of the coast-tocoast investment firm. Mr. Rogin¬
ski
will
specialize in preferred

and
bond
in¬ stock
analysis,
Mr.
that was in¬ Mason said.
earlier this year, and
Previous to his association with

corporated

management

is licensed under the Small Busi¬

the Mutual Benefit Life Insurance

Investment Act of 1958.

ness

Net

Company, he was with the First
of National Bank of Sayreville,
provide
capital to small busi¬
from

proceeds

the stock will
investment

the

be used

sale

Gary Ishikawa Co.

which, in the opin¬
management,
present HONOLULU, Hawaii—Gary Ishi¬
possibilities. Investments kawa & Co., Inc. has been formed

ness

concerns

ion

growth

loans

and

Broad St.,
members of the

City,

New York Stock

company

will

made

con¬

with offices

at 3561

operating in diverse fields to engage in
activity and located in any Officers are

family and their state of the United States, Puerto
associates
received
2,800,000 Rico, or the District of Columbia.
Upon completion of the current
scares 0f common stock for their
capitalization
of
the
eauity, which had a total appraised financing,
yalue of $41 g miUion s0 that they company will consist of 379,400
rati0n, the Uris

President

Kilauea Ave.

securities business.

Gary

Ishikawa,

and

Treasurer;
Jiro
Iwai, Vice-President; and Larry
N. Kuriyama, Secretary. Mr. Ish¬
ikawa was formerly with H. Kawano & Co., Ltd.

almost
$15
of
ap- shares of common stock.
Others in the group are: Hardy
vaiue
for
each
share
Electronics Sec. Corp.
appraised value estimated at $54 received. They received no senior & Co., Bregman, Cummings & Co.,
(Special to The Financial Chronicle)
million, and the hotel, which is to securities. Since their sole inter^t A. L. Stamm & Co., and SprayMINNEAPOLIS, Minn. — Simeon
regen, Haft & Co.
?ncoCOn^?i 1
in the Spring of
corporation is the comi m
Miller is now engaging in a se¬
1963, will have an appraised value
we
have
no
doubt
that
of

about

million.

$51

contributed

prajsed

will concentrate its
building up the asset
is an important forward step and value and
earning power of the
will have
great significance for common equity. By way of further
the future of the corporation,
/ assurance,
the Uris brothers have
This

assets

the

achievements

and

Uris

for

efforts

Uris

Three

the

for

that all their
activities will

benefit

the

corpo-

With

curities

Staats in

business

3424

from the point of agreed in writing
private investor, the future real estate

Obviously,
view

management

association

new

New Branch Office

East

firm

name

Lake

from

offices

Street

at
the

under

of Electronics

Corporation. Mr. Miller

(Special to The Financial Chronicle)

Security
for¬

was

SANTA CRUZ, Calif.—Frederick merly proprietor of Simeon Mil¬
ler & Company.
Weaver, Pratt A. Clark and
Charles Drake have become asso¬
William

with

ciated
Co.

Buildings Corporation are impor- ration.
Based
business tant primarily as they affect the

closed.

Capital

Company, has joined the research
department
of
Paine,
Webber,

cerns

upon the foregoing, my
the
cycle,
or
in
apartment houses basic value of the' common stock* reasons for selecting Uris BuildA year from now, when the 350 ings Corporation as an outstandwhich have only short-term leases.
This assurance of long-term in¬ Park Aveniie, 320 Park Avenue ing real
estate special situation
come has special consequences
of anil' 850 Third Avenue buildings can be summarized as follows:

and

ups

books

non-diversified

cussions. with tax experts, under

these

$7.50 per share. This of¬
has
been
oversubscribed

Venture

tax

for

income

the

and

Roginski, formerly with

the Mutual Benefit Life Insurance

are

fering

e.xPected to show

net

Bullard

Edwin A.

Smyth and as¬
offering today (Sept.
15)
325,000
shares
of
Venture
Capital Corp. of America common

Purposes. According to our dis-

with

Filor

sociates

With Paine, Webber

Venture Capital
Stock Is Sold

perience, it has been able to build centers of New York real estate
its structures
at costs generally
expansion over the next few years.
below its competitors' costs. Space
C,
■
Permanent
financing for both
in the
Uris buildings has been
of the new structures has already
rented primarily to AAA tenants
been
arranged.
The Prudential
under
long-ternr leases running
.surance Company of America
from 10 to 30 years.
The result
has

other

and

Buildings Corporation will contm"e to
back ltsavailable
cash, and that there will be no

its

1962.

6Y2%

the

Recently,
the
company
anplans
for
two
new
projects of tremendous importance,

Obtaining favorable mort¬
financing.
V Avenue

areas

May

fund

dividends,

co£Porate purposes,
Because of the tremendous construction immediatewefuture Uris
program,
expect that
the

nounced

with strict attention to cost.

(5)

■

(1) Selecting a prime site.
(2) Designing the best possible
building for the site.

Constructing

Street, where site
still
taking place,
occupancy
not schedis

until

sinking

debentures,

Broad

uled

building

(3)

demolition

(1087)

the

office at 1021
Weaver
ager

was

Mr.

Now With E. F. Hutton

Mr.

Center Street.

formerly local

man¬

for Hooker & Fay, Inc., with

which
were

Staats

newly opened branch

and Mr.

Clark

Drake

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.

V. Ellis is
&

France

South Spring
formerly
Harris, Upham & Co.
623

Company,

Street.

also associated.

—

with E. F. Hutton

now

with

Ellis

Mr.

was

completed, we estimate that
(1) The Uris organization is outappraisal value of the Uris standing in the construction field, Marache, Dofflemyre Adds
Two With F. I. du Pont
(1) the appraised value of common equity, after giving effect
(Special to The Financial Chronicle) *
(2) The company holds prime
(Special to The Financial Chronicle)
the
buildings is increased sub¬ to all assets and liabilities of the properties.
LOS ANGELES, Calif.—Fred H.
corporation, will be $571/2 million,
stantially.
(3)
Long-term leases provide Massey
has
become
connected BOSTON, Mass. — Clarence F.
(2) Financing can be obtained or $18 per share on the 3,200,000 assured long-term income,
and Robert W. Ross
With Marache, Dofflemyre & Co.. Jones, Jr.
shares .outstanding.
for the buildings on highly favor¬ common
A
(4) Dividends, when they are 210 West Seventh Street, members have become associated with
able terms at minimum mortgage year later, by September 1962, we paid? will in all likelihood be taxof the Pacific
Coast Stock Ex¬ Francis I. du Pont & Co., 80 Fed¬
estimate
that
the net appraisal free.
costs.
change.
Mr. Masey was previ¬ eral Street. Both were formerly
value will be $22 per share, re(3) The favorable mortgage ar¬
with Reynolds & Co.
(5) The common stock provides ously with Hill Richards & Co.
the
completion
of
60 fup participation in this operation
rangement on each building per¬ fleeting

builder

importance

the

are

the net

investor.

and

mits

the

company

has

move

been

each

Thus the organi¬

office structure.
zation

keep

investment

minimum

continually

pro¬

of the

new

Street

and

continued

the

into

calculations

account

the

new

Sixth

projects.
While
Uris
additional profit potential. Avenue
(41 The lone-ter^ leasee £iv<* Buildings Corporation will have
the Uris buildings the quality of a 50% rather than a 100% interest
being readily salable at maximum in the new buidlings, it is our
values, since the assured long- estimate that these two properties
income

attractive

substantial

from

discount

values

and

Further

fiow.

cash

ahead, we expect that new projects, beginning with the important Sixth Avenue developments,
should increase the net appraisal wdj
continue
this
buildup
of
values
future

able return combined with the tax

by about $4 per share. Taking into
account also the company's interim

advantages that real estate owner¬

cash flow, we

offers. While it -is not the
policy of the company to sell its

time all the new projects are com-

pleted, the appraisal value of the
common stock will be close to $30

gr0wth potential,

seeking

institutional
buyers
well-protected, favor¬

ship

properties, such sales may at some
time
be
deemed
advisable, and
would

probably
capital gains.

create

important

The Uris organization is now in
the midst of the

greatest building

value

Uris

the

common

million

square

that

real

estate

opera-

time

been

100%

under

The

available for invest-

ment

dend

distributions.

and

new

space

com¬

some

leased. Of
construction.

the

350
Park Avenue is leased 100% to
the Hanover Bank. More than 99%

buildings

properties by reducing debt.
remainder

feet.

in the
buildings is proceeding ever!
raoidly
than
construction,
with great success. The three
pleted buildings have for
Renting

4V2

values

assured

and

major

"RquVq to
■

space

already leased 27%

of the, space

dividend
the

the

new

projects

new

UciiixvO

per

this

week

month

planning to offer later

$154>000,000

nine-

twenty-

payable

shareholders

shares of the Association

October
of

15,

I960

record

fke

saje

are

used

$203.000,000 of 5%%
bentures maturing Oct. 3.
redeem

de-

1960.

•

$1.66?^

A.Johnson, Treasurer-

iMiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiHiiiiiiiiiiiiiiiiiin'iiiir'Ti

Sept. 16, 1960.

Transfer books will not be closed.
Checks will be mailed.

Secy.

J. W. Reilly, Vice Pres.

0id ^oontin en tal
CONSOLIDATED
NATURAL

rorm r.

GAS
A

Diversified Closed-End
Investment

Company

O. Jonns Co.

when the first seven build- offices at 120 Morris Avenue to
ings are in full operation, without engage in a securities business,
allowing for the Sixth Avenue Officers are John A. Tricoli, Presiprojects, total rentals will rise to dent, John Silvestri, Vice-Presian
annual
rate
of $22
million, dent;
and
Francis
S.
Collura,

Corporation, 53 State Street.

30 Rockefeller Plaza
New York 20,

Third Quarter Dividends

N. Y.

Record Date

Dividend No. 51

September 20, 1960

30 cents

The board
has this day

regular

quarterly dividend of Fifty-Five
Cents (5 5 <f) per share on the cap¬
ital stock of the

Company,

the COMMON

STOCK

Payable October 1, 1960

pay-

ableNovember 15,1960tostockholders of record at the
business October

of directors

declared

close of

17, 1960.

|§j

September 8, 1960

COMPANY
r

It
g;

the

agenf The price will be announced
gepf
jg, he said, and proceeds
from

nine cents (29 <0 per share on the
common

I close ot business September 27,

quarterly divi¬
share on the Com¬

was
anby John T. Knox, fiscal

that

$4.3 million available for

share payable Oct. 1,1960, to

for divi¬

Uris Buildings are

dividend

declared

Stock.—A

have

Sept. 16, 1960.

Stock, of the value of

of business

quarterly

Trustees

Preferred
1, 1960 to

debentures,

n0unced

Oct.

payable

The

share on

per

Cumulative

stockholders of record at the close

completed, the company's income SPRINGFIELD, N. J.—F. S. Johns
will rise rapidly. It is estimated & Co., Inc. has been formed with

of about

of $1.0625

$4.25

Stock,

mon

fYpfpy* "DpllPUlQ
Banhs are

regular quarterly

Preferred Stock—A

COMMON DIVIDEND .40. 54

dividends have been
declared by the Board of Directors:

and Electric Association

|
|

NOTICE

The following

dend of $0.25 per

in 320 Park Avenue
with $9 million cur- Secretary and Treasurer,
has already been leased, including compared
42%
to International Telephone rently, and the cash flow of Uris
and Telegraph. To date, the com¬ Buildings Corporation will be apWifVi Ampriran
$6.7 million before
Wiin /\merican oec5.
pany has leased 70% of the rent¬ proximately
debt
amortization, or somewhat
(special to the financial chronicle)
able spare in 850 Third Avenue,
Mass. — James E.
which will not be ready for first over $2 per share. Amortization of BOSTON,
occupancy
until May 1961.
The mortgages will absorb about $2.4 Moynihan, Jr. has become assoRadio Corporation of America has million of this total, leaving cash ciated with American Securities
the

DIVIDEND

of business

Tp T P(
-1-

Corporation

stockholders of record at the close

tions, unlike industrial companies, V/llt/I
•MyUCIlo. .... .
the key earnings figure is not net
rpjie Federal Intermediate Credit

tax. This

space

| New England Gas
Canada Dnj

Common

understanding real estate investment
values,
it
should
be
In

activity in its history.
Besides
owning three completed buildings, income but cash flow —earnings
depreciation
and
before
Buildings
Corporation has before
four major new buildings under Federal
^income represents corpoa
net
construction
in
New
York
City rate cash flow
to
scheduled for completion between addition
equity values.
Part
December
1960
and
May
1962. goes into mortgage amortization*
the
equity
in
the
These seven buildings will have a increasing
rentable

(7) ' The
common
stock thus
estimate that by the provides an unusual combination

Uris

combined

the

into

far

income

and

noted

NOTICES

jng program in its history, which
will
add
rapidly
to
appraisal

stock

private

DIVIDEND

NOTICES

DIVIDEND

underlying appraisal value,
(6) The company is currently
not take
engaged in the most active build-

viding

term

company's cash flow.

These

able

projects

Broad

amortization of mortgage debt out

67Vx cents

the

$2.70 PREFERRED STOCK

John Miller, Secretary
„

Payable October 1, 1960

September 13, 1960
65

Broadway, New York 6, N. Y.

-w

The Commercial and Financial Chronicle

(1088)

WASHINGTON AND

.►

'' "

Thursday, September 15, 1960

■

1 A

'►

S-

STOCK

BEHIND-THE-SCENES INTERPRET A TIONS

FROM THE NATION'S CAPITAL

122
IN INVESTMENT FIELD

OPEN
WASHINGTON, D. C.—Labor is
mobilizing
its forces for the
greatest participation in politics
this fall of any time since it be¬
came

the American

power on

scene.-

--'V,
\
Labor, with 13,000,000 persons
belonging to unions, is going to
have a strong voice not only in
local and State politics, but in
the outcome of the Presidency

of the United

States.

The second biggest setback
involving labor legislation was
the
failure
of
Congress, con¬
trolled
by the Democrats al¬

23
•#%#%#

'**€5

/«#

675

HIGH

Sept. 15-16, 1960

most

two-to-one,

the

pass

Municipal Bond Dealers Group of
outing — cock¬
tails and dinner Sept. 15 at Queen
City-€lUb; field day Sept. 16 at'
Kenwood Country Club.

Kennedy labor bill which would

Cincinnati annual

have raised the minimum hour¬

wage

country

the

across

$1.25, and would have extended
coverage
to
an
additional
5,000,000
•ment

workers,
clerks.

store

At this very moment

labor has

families

and

neighbors

regis¬

tered and eligible to vote.
program is

The

being financed by

contribution

5-cent-a-member

by affiliated unions of the AFLCIO.
*

Because of the all-out efforts

being undertaken by organized
labor, the chances of Senator
"

President

the

United

States

improved. Labor is backing

are

the Massachusetts Senator.
As

nearly

there

labor

that

number has

who

but

corrupt,

Twin" City

the

organized
people

many

belong

unions.

When the McClellan Committee

conducting

was

into

some

horrible
crooks

the

its

the

searching

corrupt

practices

that

union

had

and
some

infiltrated into

labor

movement, 343

of the 1,525 witnesses before the

McClellan

Fifth

Committee

took

his

committee

colleagues, and the committee's
chief counsel, Robert F. Ken¬
nedy, brother of the Democratic
presidential
nominee,
heard

these

refuse to
that

witnesses

343

answer

truthful

declare, "I
the grounds
might

answer

tend to incriminate me/' One of
the worst of the characters

was

Jimmy

Hoffa, head of
Teamsters'
Union, who

State

the

in nearly

money

other

leaders
to

things

was

to pass

But Hoffa is not typical of the

Union

••V~.

movement.

President
Vice

and

Reuther

all

top

Meany

George

President
are

the

But

Walter

out

old, but true saying

of the labor bosses

some

These

concerned.

seeking

Senator

Kennedy, members of
Congress, state and local offi¬
cials, particularly members of
the

various

who

if4

and

state

legislatures,

friendly

are

ideals of unions

leaders. ""

■

T\f

in the
this

86th

its

union
'

according

disappointed

which

special

paper

recently

session,

was

supposed to be the friendliest of
all

toward

labor. And

might

have been except for the crook¬
t

edness

■If

,;i'

and

the

corruption

McClellan

exposed

Committee

via the gangsters and racketeers

that had infiltrated
ment
the

■

two

the

into

movement

years

seg¬

during

intermittent

hearings.
■

A survey by the Congressional

Quarterly of action on 76 major
legislative proposals
affecting unions and working
people
directly,
showed
that
only seven of these proposals

AFL-CIO

were

stand

and

members

not afraid to

are

talk

back

States

were

,♦
'

vetoed.

United

States

worship
country,

pleases

should

privilege of
join unions

man

in
be

our

the

individual to
not to belong to

unions.

in the 1947
Republican controlled Congress,
came

with the enactment of the

bill

Eight

laws.

and

other

have

states

constitutions
laws

from

amended

protect

future

legisla¬

tures, who might hurriedly
repealer laws. By putting
right-to-work
state

I would have

pass

the

measure

constitution,

the

people

chance to vote

in the

future.

Senator

Harry F. Byrd of
Virginia, in the closing days of
the dog-days sessions, rose to
his Senate colleagues that
1960
Democratic
platform

warn

the

adopted at Los Angeles in July
ra
plank that makes the direct
and

unequivocal pledge:

"We will repeal
zation

for

the

right

the

dom.

the authori¬

right-to-work

laws,

this

national

banks

between

1959, and June, 1960, to a
$143.2 billion. So reports

Final

I960

Edition

the

McNally International Bank¬
Directory (the 169th edition Oct. 12, 1960 (Cleveland, Ohio)
since 1872).
Northern Ohio Group of Invest¬
•
.

Total

there

obtain

funds

net

make

era.

result

these

and

lion.

anything

whopping $284.1 bil¬

The bankers' Blue Book also

branches

pointed

14 fewer

than

states

590

branches.

Dominion

State

out, the laws of these
protect the privilege of
union membership for those

stantial
were

pledge taken in Los
Angeles,"
said
Senator
Byrd,

continuing

"would be to destroy two great

Bankers

principles

3,000

this

opened

was

year

That

earlier, but

While

was

sub¬

banks

new

the

period,

than offset

by the

merger trend.

Full text of Commercial and Financial Chronicle : September 15, 1960, Vol. 192, No. 5986

FRASER