Full text of Commercial and Financial Chronicle : September 18, 1958, Vol. 188, No. 5778

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CHEMICAL INDUSTRY FEATURED IN THIS ISSUE

* &

SEp10

"
'

Reg. ur. s. Pat Office

Volume

188

Number 5778

New York 7, N. Y.,

Thursday, September 18, 1958

Price 50

Cents

Copy

EDITORIAL

Investment of Trust Funds

See We
It

still

elude all too

we never

learn

that

we never

learn

years of investment experience for in¬
institutions, Mr. Coburn gives his own
philosophy, policy and procedure regarding investment

dividuals and

seems

needs

the

He also explains his firm's
present in¬
policy. In listing some of the general truths
learned, the Boston banker contends financial reports are
an
imperfect measure of managerial ability; claims earn¬

the

one

national

ings

should have been

real

improve their investment analysis.
Trust investment

the other,
indeed was

stocks going to do?"
' \
1958 we have
continually faced
"Why are stocks going up?"

Answers to both questions

but the extremist

demand

second

for

question,

Stocks go
them

that the sharp recovery now reported in
general state of business is in any important

ward

downward.

plicated meehanisni of government spending has
been able to get really under way. Yet these com¬
mitments will
without
question proceed as
planned. And it may be added that they will not
be nearly as large at that as some of the ardent

tomers

yet they

There

than

page

;

McGrath

It is

ment

complete picture of issues

now

the

rec¬

namely

past two years there have

rumblings of over-capac¬
ity and possible reduced growth in

>
the chemical industry in the future.
well-established fact that the petrochemical seg¬
of the chemical industry has enjoyed a higher

growth rate than the industry as a whole.

Nevertheless,

Continued

NOW IN REGISTRATION—-Underwriters, dealers and investors
a

—

been vague

Sept. 9, 1958.

afforded

what

trade

America.

by Mr. Coburn before the Vermont-New Hampshire
Banking, University of New Hampshire, Durham, N. H.,

Section, starting

page

in corporate

registered with the SEC and poten¬

tial undertakings in our "Securities in Registration"

tremendous factor

only in the United States but also in
Europe, Canada, and Latin

address
of

as a

chemical

Western

way

stocks.

Continued
•An

the

decade its growth has been rapid not

School

good start

PETROCHEMICALS. During the past

successfully, either in
For example, at one
"
/•"; "extreme it can be truly stated that
the poorest bonds that will pay their interest and prin¬
cipal will give the best bond result. They may cause
in

by-product of petroleum
However, certain chemical

ognize today

to
bonds

one

companies and a few petroleum pro¬
ducing and refining companies were
off to

cus¬

invest

are

;

the
and

challenging,' tantalizing, and
difficult. I approach the subject with
humility.
:'"--

Arthur L. Coburn

SECURITIES

are

expect

the

considered by many to be noth¬

was

funds

by which the authorities, partic¬
ularly the Federal Reserve authorities, are faced
in this situation is a real one. The questions and
the problems to which it gives rise
go to the very
root of many of the fallacies so current
today

securities

are

possible;
unacceptable. Our
answers

ing but
refining.

one/

At the beginning of World
petrochemical industry

gas.

War

of us.
This is
what makes the investment of trust

The dilemma

DEALERS

honest

most

followers of the New Deal would have had them.

page

petroleum and natural

Now, these answers satisfy
They are 100% accurate; they

exceeds

outcome of promised spending by the
Federal Government, a recovery which is ap¬
parently well under way long before the com¬
an

Continued

Introduction
More than 3,000 chemicals are
synthesized from petro¬
chemicals
that
are
currently being produced from

As to what they are going to
do, it can always be said that they
are going to fluctuate
irregularly up¬

can

refining plants by 20%.
Regarding the latter observation, Mr. McGrath notes
gradual change in oil refining wherein it now encom¬

and more of a series of chemical processing
operations and cites premium gasoline as a clear cut
example of this change in refining practice.

supply.

suppose

degree

simple.

are

that it may exceed that for oil

passes more

forever being asked, "What

•

because

We doubt whether any

the

men are

are

easily foreseen —
by a good many—but apparently jiot by
whose policies and programs are
responsible

for it.
•

performance; and criticizes excessive portfolio-diversifi¬
cation.
Imparts advice to bankers on how they can

foreseen
those

at $5
billion—representing 5560% of assets of entire chemical industry. Believes that
by 1963 investment will be between $8-10 billion and

are more

hand, and the abnormal

Treasury

capital investment value

important than dividends, and future earn¬
ings and dividends are more important than their present

tempted to accept
philosopher. The
a

Kellogg Co., New York City

field, Author places volume of petrochemicals at about
55% of sales value of all chemicals and estimates its

vestment

part that the

dilemma of the authorities in the face of
inflation threat

dustry in general and in terms of particular successful
petroleum company i participation in the petrochemical

of trust funds.

anything from history except
anything from history. In the

state may play therein, one is
the observation of the elder

encouraging outlook view about petrochemicals Is
provided by Mr. McGrath's detailed account of the in¬

Base&riipon 30

many

matter of economic welfare and the

The

who ought to know
better. An eminent
philosopher of another gen¬
eration long ago remarked somewhat
cynically
that

By HENRY G. McGRATH

Chairman, Trust Investment Committee
Old Colony Trust Co. and The First Nat'l
Bank of Boston

Experience is now offering a lesson in the rela¬
tionship of New Deal economics to the course of
depressions which history has often offered in the
past. The rather obvious truth, however,

Outlook for Petrochemicals

By ARTHUR L. COBURN, JR.*

34.

page

State, Municipal

and

U.S. Government,
Stale and

i Z'jLz i llVV;

- /

v/,

sh'''/ f
','
'

STATE

'"v

PACIFIC

MEMBERS

™

Municipal

Securities
telephone:

AND

MUNICIPAL

COAST

EXCHANGE

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

"""'A/'''

HAnover 2-3700

BONDS

THE

Inquiries

Invited

California

Southern

MONTHLY

BANK

Burnham

ST.,N.Y.

MEMBERS NEA'

LETTER

and

VORK ANO

IS MOAD STREET, NEW
CABLEt

.Underwriter

623 So.

California
Members

OF NEW YORK

Company

New

York

Stock

Exchange

Associate Member American Stock Exchange

YORK 5, N. Y.

•

Dl 4-1400

Bond Dept.

Teletype: NY 1-708

New York

Net

Active

Dealers,

Markets

Banks

ESTABLISHED 1832

Members

electr0lux

CANADIAN
BONDS & STOCKS

corporation

Stock

CANADIAN

Exchange

I-

25 BROAD

STREET

NEW YORK 4, N. Y.

COMPANY

TIRST

dallas

DIRECT

Goodbody

•

PERTH AMBOY

115 BROADWAY

I)oxi7no?f Securities
Grporatiot!

Co.

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

Municipals
Department

WIRES TO MONTREAL AND TORONTO

NEW YORK

California

Municipal Bond

DEPARTMENT

Teletype NY 1-2270
>

■

Bought—Sold—Quoted

BANK

for

Brokers

New York Stock Exchange

Chase Manhattan

Correspondent—Pershing & Co.

,»..»

American

THE

Maintained

and

T.L.WATSON &CO.

DEPARTMENT

TELETYPE NY 1-2382

COSUBNHAM

Dealer

Hope Street, Los Angeles 17,

AMERICAN STOCK EXCHANGES

Distributor

•

Lester, Ryons & Co.
THE FIRST NATIONAL CITY IANK

department

bond

30 BROAD

BOND

VIEW

BURNHAIVI

Bonds and Notes

Securities

CHEMICAL
CORN EXCHANGE

Public Housing Agency

Trading Hours

1 NORTH LA SALLE ST.

..CHICAGO

iBank nf America

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

300 MONTGOMERY STREET
SAN FRANCISCO 20.

CALIFORNIA

The Commercial and Financial Chronicle

(1102)

The

Brokers, Dealers only

For Banks,

broad

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

you

(The articles contained in this forum

private wire

combined with com¬
plete OTC facilities, enables
you to get the best possible
coverage of the markets you
system,

as an

offer

intended

Vice-President, George K. Baum & Co.
Kansas City, Mo.
Member: Midwest Stock Exchange
Pickering Lumber Corporation

the

Pickering

Participants and

Alabama &

Lumber Corp.—H.

Hunter, Vice-President.'
George K. Baum & Co., Kansas

company,

moting and leasing the properties.
Management includes among its
board of directors, James M. Kem¬
per, Henry N. Ess, and Frederick

Bought—Sold—Quoted

Vulcan ^?a, ia*?
ters, Sales Manager,
Brooks

Co.,

War

Wichita,

Kan.

(Page 2).

is Pickering

only

Members New York Stock Exchange

-t

•

nncoe

Kansas

earnings and

Ess

„

Member

Associate

Teletype NY 1-40

4-2300

BOSTON

PHILADELPHIA

SAN FRANCISCO

•

Principal

Wires

Private

CHICAGO

•

Cities

The

ber, in¬
cluding one of
the largest

in the

growth

virgin

and

secondary
estimated
at

stumpage

factors which-arc

continuallv

en-

hancing the value of natural

re-

such as timber.

sources

PfCpONNELL&fO.

bJite

Members

electricity

and

machinery

YORK 8

120 BROADWAY, NEW

comnLelv

Calif

Exchange

Stock

Dowered

equipped
with
the latest design,

TEL. RF.ctor 2-7815

lack of

;

re¬

Peters

111

equtl

en-

tire Purchase cost to "Pickering" to, and even surpassing many of
within a short time. In addition, the popular so galled growth in-

fa^„elv

thousands

INC.
37 Wall

that

its

stands

own

•

;

i. U

■

Life Insurance Co. of Va.

*•

debt

no bank or
preferred stock

f ?
+£ 1S carried
less than

oks

$a per

thousand board feet whereas

cur-

importantly, gave "Picker-

ing"

U. S. Forest Service timber.
^

§rallon 01 ine

further
enable

sales are being made at $35
thousand and more. Inventory

carried

last-in-first-out

basis which is

considerably below

LYNCHBURG, VA.

the market value.
Wire

New

York

City

strong amounting to

very

Proximately $3%

million

when

the

ratio

having

just

paid

West Side Lumber Co

INVESTMENT TRUSTS

preciation

INSURANCE COMPANIES

have

and

been

assets

out

$2.9

further

Annual de-

depletion

exceeding

Underwriters—Distributors

family-

vigor

newed

axwise, the difference between

book value of its

are

worthy of investigation.
representative

cut is

tal gam.

firm

our

subject

those

interested.

who

25% eapi-

This provision lowers the

effective

will be glad to explain the

standing timber

subject only to

tax

rate

thus
'

providing

overall

Stock

How

Use

Options

somewhat

until

the

C.|

CpUMinT

riLCIIy OvtllYIIUI oc
Dealers Assn., inc.

car-

book value of only $71.42.

ploration

being
wells

Broadway, N. Y. 5

payS

dividend

•

matter of time
should

BArclay 7-6100

Dealers

■

•T "

Investment Securities

of these properties

pursued

vigorously.

are

nine

some I

separate

companies

st&nuvsasstt£i
fte

MLicf to

The

Lakes.

GreS

the

following

will

give

Opportunities Unlimited

idea of the scope of their
operations from a product and loyou

ctandnnint

saleg and

hacpH

ye£r_en'd

19^7

faciiities.

Aggregates, 313%
Plants inAlabama,
5; Illinois,
7; Indiana, 1; Kentucky, l; Ten-

12;'Georgia,

IN JAPAN
Write

for

properties

are

under

and gas leases without

our

Monthly Stock

Digest, and our other reports,
that give you a pretty clear:."
picture of the Japanese
economy as a whole.

Wisconsin, 7; Virginia,

nessee, 16;

pS^AlabS^ Florid^ ^
Georgia, 3; Illinois, 13; Tennessee,
2; Wisconsin, 3.
"
..

Construction Materials, 5.5%

Nomura Securities Co., Ltd.
61 Broadway* New York 6,
Telephone:
This

not

orders

for

N. Y.

BOwling Green 9-0187

offer

any

solicitation lor

particular securities

—

Plants in: Alabama, 3; Florida, 1,

m°ls' 4; WlsconsIn.

^"rgla' 3;

Materials, .3.1%-

Surtactlng
plants in:

HOW WOf.

Alabama, 3; Tennessee,

3; and 2 portable.

above represents 60.9% of
sales

with

the

remaining

39.1%

from metallics-17.8%;
practically chemicals—13.5%;. and services
earnings. This-stock, and purchased products—7.8%.
the Over-the-Counter '
Uf note is the fact that the
derived

its

Market,

e u r r e n

seMrig

around IOV2.

the company's
winter

KENNETH E. MANGUM

Harbison & Henderson,
Los

Correction

earnings during the
when construc¬

quarter

tion activities

are

their lowest

point. The metallics division has
production facilities in Alabama,

Angeles, Calif.
Cohu Electronics, Inc.

Indiana, New Jersey and Pennsyl¬
The principal product being blocked ore, steel Scrap, iron

Over-the-Counter;

vania.

We should like to call attention
an

was

error

in phraseology which, recovery,

made in Mr. Mangum's article'

the above-mentioned company

tin

>trapure tin.

recovery,

Cohu's Millivac Division, the last

and

ul-

The chemical divi¬

Quotation

have read: "These are all precise

drilled by its lessees

instruments

accuracy."

fachitfes^^T3Frontie^* Chemical!
Denver Cityi
facilities ; in

Alabamaj New Jersey and New

National Quotation Bureai
laeorporatod
Established 1913

constitute

the

divisions

major

high products.
:

Services^

for 44 Years

The sentence in the paragraph should

drilled upon the company's

oil

Canadian and Domestic

out in dividends

represents

today

the merger and acquisition of

in-

traded

"Pickering" is the mineral rights
on a total of over
123,000 acres of to

^sed

Pa While income from oil and gas is in our issue of Sept. 11. In.dis- Wichita, Kan., and
w0« a minor factor at this time, ex- cussing (page 14 of that issue) Texas, with other

Members Put & Call Brokers &

120

higher earnings in the

creased, inasmuch as the company

larger

land in Texas and Louisiana*

building in-

maximum, and with larger,ship-

earnings after! taxes.

ned at

the

re-

op¬

An added kicker to the value of

Ask for Booklet

With

dustry, with both mills operating

eration to between 30% and 45%,

are

inD1958.

offing, it is only

and market value of timber when

Options

cents

million,

sibilities through the sale of
Call

March

' o,"

sharewere—'^-^^^0^^^'

$1 in 1956, 90 cents in 1957

Were

and

ments and

Put

and

com-

Dividends paid

in 1958.

cents

For the fiscal years ended

charges

augmenting cash working
•

the

bined properties.

pani+ni

The additional income pos¬

and

$1.02 in 1956, 51 cents in 1957 and

million cash for the acquisition of

PENSION FUNDS

efficiency

increase

management to develop

the

to current liabilities was 5.78 to 1
after

should

Plants snouici

31, recent earnings per

1958,

current

olants

Inte-

ap-

fiscal year ended March
31,

two

better sales program for

Working capital

TWX LY 77

—5-2527—

Private

to additional tracts of

access

per

LD 39

acres

- - — «

rent

STRADER and COMPANY, Inc.

16,000

•

stock, there being

funded

Commonwealth Natural Gas

annually,

»K»»aas8sr
mon

Bassett Furniture Industries

of lumber

mKnaneSXnf"pjcke?in^?sSu^-i ducing ^continuous growthP!'°"
°f CUt a la"d CaPablC °f of
£-Ja*

nnneoriiofiim
„

American Fnrnitnre

Street, New York 5, N. T.

possible

Trading Interest In

Bankers

Burns Bros. & Denton

capacityn|t r^LVd"ostP1"Pickere °f 71 mlU,on b0ard £eet 01 virgi" »Wned companies, making it iming" follows
tjie policy of utilizing «mbeJi a two-band sawmill capa- possiMe for the public to partieimuch
government timber
ble °* Producing 40 million feet Patev n the giowth
■
as

Investment

Broadway,N.Y.6C0rttandtT

publicity held
corporations

local in character,
"West Side," to- therefore, subject to the hazards,
the tax funds just lnherent m that type of an 1"v®st-

ownership

Brokers

cently the few
S.

Don

acquired from

acquired

Tokyo, Japan

invest¬

until

lite.
.

Yamaichi Securities Ce., Ltd.

suit-

Company

Affiliate of

;

ment medium.

since acquisition, the inventory of
28 million board feet of lumber were largely

"Pickering"

write

of New York,

primarily

able

Side" by thls amount. In view of

with

Securities

cir¬

vestment

Grove of giant Sequoias to the
State of California in 1954, inref-

gether

Yamaichi

because of the

Ca7PsSard -ntioned, should return the

Exchange

Stock

York

American

liability of $594,000 on the profit ';

glected by in-,

the increase in demand and price

feet.

Call

historically

cles

fect thls reduces the cost of "West

board

information

current

industry has'=
be

only growing in quantity, but also in value due to the
limited
supply and inflationary

Since 1917

New

This

million

For

materials

arising from the sale of the South

asset is not

SCRIP

Pete" rtunter

un-

200

over

RIGHTS

tion

31, 1958 of the adjoin¬
Side Lumber Company
mill located only six miles
"Pickering's"
mill
should,

will also eliminate the Federal tax

world, plus
extensive

cruised

Specialists in

West

greatly enhance the earnings of
"Pickering" as its latent values.,
develop.
Since this
acquisition

valj

STOCKS

like- best.

The aggregate

timely cash purchase

very

from

sugar

pine

-i-r-r:

■

construc¬

with

tim

branch offices

our

JAPANESE

investing public is Vulcan
Company, the security

and

ing

uable

wires to

A most interesting situation in
industry largely overlooked by

the

March

virgin

stands

Direct

Materials

feet

NY 1-1557

.rr-.

Dierks is President
Forest, Inc.

Mr.

HAnover 2-0700

NewOrleans, La.- Birmingham, Ala.
Mobile, Ala.

v„|ca„ Materia|s Co-

Recent Acquisition

7 00

over

bank. Mr.
the law
Marshall &

partner of

Watson, Ess,

of Dierks

million board

York 5

120 Broadway, New
WOirth

Exchange

Stock

American

Enggas.

higher price.
Pickering's
primary asset
is ownership

Established 1920

City's largest

senior

firm

and

dividends

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

Lumber

stock the security

common

Steiner, Rouse & Co
Members American Stock Exchange '

H. Dierks, all three leading auDON S. PETERS
thorities in their fields. Mr. KemI like best, but it is also the seeu- P^r is Chairman of the Board of Sales Manager, War O. Brooks & Co.,
rity I think has the best prospects the Commerce Trust Company,
Witdiita, Kansas
Pifir'a
lorhncf
Knnlr
T\/T»»
Not

Corporation

Louisiana Securities

"Pete"

-except for
in connection with pro-

expenses

for increased

New York Hanseatic

•

Their Selections

be, nor
sell the securities discussed.)
not

are

cost

II. H. "PETE" HUNTER

Corp.

want.

Thursday, September 18,195$

...

•

City, Mo. (Page 2).

perienced trading department
can be a big help.
nationwide

they to be regarded,

are

you'll find our large and ex¬

Our

■"

In the investment and

of
hurry,

This Week's

Forum

range

markets

active

important

it's

reach

''.■'*"

Security I Like Best

A continuous forum in which, each week,

Try "HANSEATIC"
When

;

46 Front Street
CHICAGO

Continued

on page

New
SAN

York4fN.Y.
FRANOZSOO

Volume 188

Number 5778

The Commercial and Financial Chronicle

(1103)

*. : 'INDEX

Insurance Stocks Now For

Managing Partner of Shelby Cullom Davis & Co.,

now are

attractive than at any

Petrochemicals—Henry G.

in the

now

sents

early stages of

list of stocks which he favors for

:
'

These

are

bewildering times—
Quemoy to the

and

Federal Reserve Board.
witnessed

point
in

fall

alone

devastating

Last

100

out

•

from

decline

c omm on,

holdings.

Covered

from

150%

Home

Price and the Publie

WALL

Bond

ceived

markets

from

their

bond

SABRE PINON

URANIUM
13

QUINTA CORP.
14

Nelson.

UNITED WESTERN

and

MINERALS

___

OFFICIAL FILMS ;

holdings

could

alone.

where

but

mon

stocks I do not think one

this

find

e r

and

year

where;

aric'e companies.

butt;]

down recently.

This

summer

I-'r^gpt
from

all"

days in

Shelby Cullom Davis

and

Thailand.

now

where

the

Anna

where

I—in

was

"The

bewildering times of

puzzlement, times to cut
maze

and

through

of truths and half truths

seek

the

perspective

fundamentals.

J Why do
stocks?

Not

because that

invest in common
only for income—

can

be achieved

safely in bonds. But for income
plus growth, which can never be
achieved in ordinary

bonds.

And

growth is desirable, not just for
growth of capital's sake, but to
enable income to keep pace with
the rising tide of inflation. There¬
fore
ise

common

stocks which prom¬

income

secure

plus

growth

should merit the serious attention

of professional investors, today in
these

times

than

puzzlement

ever.

Attractiveness

Explained

/'Fire and
casualty
insurance
stocks, I submit, fall squarely into
this
category of secure income
plus growth.
are-more

;-7;':7,'

Furthermore,. _they

attractive

than

;7/7

any

time in the past decade. "

\ Why?
'/
; . /
(1) The income from insurance
.

■■.V-,.'-..

...

■""''/"V:.'1 '■":7'7,:

Dwight liobinsdn, Jr. Quizzed by

Stock Market Outlook

"''7'7,V' 77.;"7--7'v

and

■'

7.'-/;.;;

;

DIgby 4-4970

pound for, the stockholder.
is

annual..rise

income

between

As VVe See It

There

Direct

•f

Bank and Insurance Stocks

10.%

}

trade

flag,

rising

stockholders

tually

said to

was

does

get paid!

they

also attractive

are

grade/ fire

stocks.

for

•

and

the

latest

railroad

Poor's

stocks

[

;

can

also

defense

be
and

term

purchased
growth.

•

Wilfred

Our; Reporter's

Direct Wires to

.....

San Francisco

Philadelphia

now

Let

^1__

Security

Angeles
-

Dallas

Quinta Corp.

Securities Now in Registration

Prospective

Los

Chicago

—40

Railroad Securities

they

V '

Governments^

Report

;

Reporter

inc.

40 Exchange Place, N.

Teletype NY 1-1825 & 14844

May_

Our

mackie,

HA 2-9000

therefore

can.

intermediate

;"• •„'*

...

Request

Singer, Bean

—'

upon

___

___'

jPublic Utility Securities

Prospects

purchased now for income and
growth. They are proven,/.excel¬
lent long term holdings.
For the
and

Funds

Observations—A.

near

insurance stocks more than at any

Insuubnce

Report

News About Banks and Bankers____

industrial,

Intermediate

Pipeline

Washington Ahead of the News—Carlisle
Bargeron

N^TA Notes

and- utility

and

From

Mutual

now.

shares and
3.8% also for high grade corporate
/
bonds.
The yield spread favors

Near

Preferred

Indications of Current Business
Activity

casualty

Standard

index

;

These compare with 3.8%

Composite

Common

Einzig: "British Banks' New Role in Instalment Credit
Financing"

Yields range from 4% to 5V2% on

good

Town send investment

Texas Natural Gasoline

Not only are insurance company
dividends very safe and growing

but

Salt Lake City

Trans-Canada

Dealer-Broker Investment Recommendations

rising :

1160

Denver

even¬

The pay-off in insurance stocks,
in other words, is that the stock¬
holder

Pacific Uranium*

Coming Events in the Investment Field

dividends ;to

accompany

wires

Reeves Soundcraft

inevitably and

always

HEnderson 4-8504

the

l..„.//h()over
'-w-w-.-.*.

Business Man's
Bookshelf___-_._^/i_______j:________
Wv t 7' ■
7-'!/. 77'/k ■; / .77/V-;7:-77'. A-.;
: ; ''
V~ 7."

conservatively, between 30%50% over a five years' span. And
or,

just

(Editorial)

investment

5%.<and

: j

Teletype: JCY

■

Exchange PL, Jersey City

■..•

Financial

Regular Features

of
investment
ineome,
plus all underwriting profits, .is
plowed back into surplus to com¬

time in the past decade.

Present

Experts

;

investment income.

■

and

one-half

King lived

shakes his head sadly and decides
"its a puzzlement."-

the

Afembers Salt Lake
City Stock Exch.
Spokane Stock Exchange

saw

7-7' ■■■iv'-:7'V

Loeb

of "operation plow-back"—

by which between one-third

wonderful song in which the King
is amazed
at
Western' ways,

are

The growth is inevitable be¬

ers.

was

King and U' And I thought of that

These

J.F.Reilly&Co.,Ioc.
1

-7'V'

G. M.

ly higher dividends to stockhold¬
cause

land of nod—what

Siam,

once

study

on common

;

few

the Palace

•

corpora-

tions which have paid consecutive cash
dividends
stock for periods
ranging up to 130 years.

which is translated into constant¬

briefly and
passed

NEXT WEEK'S issue of the "Chronicle" mill include
containing the extended list of Canadian banks and

can

(2)/'Insurance •companies have
an
inevitable
financial growth

away/

com¬

dividends, with longer
records, than those paid by insur^

Canadian Long-Term Cash Dividend Payers

safer

1 i

ea r

In the whole field of

STREET, NEW YORK

ihvbstft co me alone.- Many
insurance coffrpahies can pay their
dividends' out of the, interest re¬

'•,

Telephone: WHitehall 4-6551

Crass, Jr. and Marjoric V. Campbell

•

—

W. Babson

General Outlook for Chemical
Industry This Year

are

200%

figure

Obsolete Securities Dept.
7

Strong and Successful Nation

;

Tlie Mortgage Outlook—Walter C.

90
pmrrt advance.'

r|-

s u m m e

"crazy

•

Interest—Rbger M. jBIough

—Roger M. Kves

quite

Building—Roger

The Spirit That Has Made Us
:

Most in¬

'• V

■

dividends

surance ^co;rnpany

stocks and this

Investment Advice

whidh/iifi tvirh i5 'derived
'I bond, preferred and
stock

•

Do We Need Preferred Depositors?—Frances W. Quantius

their

common

;—William Copulsky and Fred Shinagel__

cuts

Chemical Company Growth Requires
Policy Planning

•

pay their divi¬
investment income

Investment Elements—Ira U.
Cobleigh

cash

around frozen obsoletes.

Tfie Businessman and. National Seeurity-^John L. Burhs

companies

ance

dends

cause

Beirut

Our

The Business Outlook—Tom M.
Plank

growth,; yield and

and, in view of disastrous underwriting experfence* of past
four years, that "unprofitable
underwriting periods have always
been followed by excessively profitable ones."
^ *

from

Chemical

pre-

of past underwriting difficulties, will be kept ^ ;
abreast of in future rate making.
He observes that present
yields range from about 4%:to 5y2%; ohgoodSwde,stocks ;v
compared to 3.8% for Standard & Poor's Composite Index * -

;

PMwnnwJ

NICE CAPADES

Cover

—Shelby Cullom Davis

combination of the two, and opines that inflation, said to be

J the root

Coburn, Jr

Insurance Stocks Now for Defense and
Growth

are

bull market.- Mr: Davis

a new

MW COW ANY

Cover

time in the past

income and inevitable growth, and

possess secure

Page

McGrath

Investment of Trust Funds—Arthur L.

•

decade,

Specialist in insurance stocks explains why fire and casualty
equities

llCHTM

B. SL.
*

mmmmm

Outlook for

By SHELBY CULLOM DAVIS*

New York City

.C.

Articles and News

Defense and Growth

Offerings

Sabre-Pinon

for

Securities

ex¬

Salesman's Corner

Ling Electronics

stocks is very secure, more so-in
fact than for many bonds. Insuri

-*An

Maine
ville

address

by Mr. Davis before the
Banks Association, DixNew
Hampshire
Sept. 5,

Savings

Notch,

1958.

amine the reasons why.

(1)
rise

stock

market

Oct.

last

has

[/ The Market

whose
made

and You—By Wallace Streete____

The Security I Like Best

stocks increasingly vulner¬
able,. insurance stocks occupy ,a

;___

Continued

page

The State of Trade and Industry,

•

'Washington

and

Published

have

specialized in

You___.:__—

PREFERRED STOCKS
*

Spencer Trask & Co.
Members New York Stock Exchange

REctor

2-9570

to 9576 "

WILLIAM DANA SEIBERT, President

TELETYPE NY 1-5

Albany
:

NashviOa

Chicago

Schenectady

•

Subscription

Pan-American

Union,

Dominion

•

Thursday, September 18,1958

Canada,

Every

plete

Glens Falls
_

Thursday (general news and adand every Monday (com¬
issue —market quotation
corporation news,- bank clearings,

Bank

Worcester

state
:

$45.00

statistical

records,

and

other

Chicago

city

111.

the

(Telephone STate

SaUe

2-0613)

and
per

Rates

$65.00

$72.00

per

$68.00
per

year

per

6
o!

WM V. FRAHKEL & CO.
.

INCORPORATED

year

year.

39 BROADWAY, NCW YORK

rate

foreign
must

WHitehall

Publications

Quotation' Record

year.

Note—On

news,

Offices:

etc.)
135 South

the

—

Monthly

exchange,
remittances
foi
and
subscriptions
advertisement*
In

New

Teletype NY 1-4040 & 4041
Direct

Wire to

fluctuations In

made

3-3960

(Foreign Postage extra.)

account

♦

Other

«'vertlslng - Issue)
Boston

Subscriptions in United States, U.
Possessions, Territories and Members

Other Countries,
•

Montrose Chemical

Reentered as second-class matter Febrnary 25, 1942, at the post office at
Ne*
York, N. Y., under the Act of March
8,1879

ST., NEW YORK 4, N. Y.

TELEPHONE HAnover 24300

Publishers

HERBERT D. SEIBERT, Editor & Publisher
r

DANA COMPANY,

Park Place, New York 7, N. Y,

•

Reeves Soundcraft

Company
;

S. Patent Office

Reg. U.

FINANCIAL CHRONICLE
WILLIAM

25 BROAD

Twice Weekly

The COMMERCIAL and /

of Florida

For many years we

Commonwealth Oil Co.

many

since

York

funds.

PHILAD£LPHIA

The Commercial and Financial Chronicle

Thursday, September 18,1958

(1104)

political crisis which
public's attention dur¬
General Assembly
session, some important items in

festations of

will get the
tins

ing

Observations.

ical

of reaction

ITINERANT OBSERVER
of

tion

In the

—

recent

the

Food

and

Commenting

iitred

May

the
classical liberalism to
combat the growing world-wide
desertion of free political systems
and
private
enterprise. While
preponderance of the week's theo¬
retical discussion centering on In¬
flation, the Welfare State, Labor
Unions and Agricultural Policy,
was
importantc and fruitful, an
generate

ideas

impromptu questionand-answer session with a leading
hour-long

provided

industrialist

particu¬

larly unusual and interesting con¬
tribution. For the business leader,
Crawford

Greenewalt, Presi¬
Pont de Nemours

dent of E. I. du

quired. In any event, we must
be continually impressed how the

justifying the free-market
system persists, demanding joint
accomplishment by academician
task of

well

post-war recessions.
Industrial

the
for

WASHINGTON, D. C.—Are the

impact

the

today's

market of the current fund

stock

boom?

getting

Co., became

key problem as to

-fhose with inflationary
implications, which actually un¬
dermine
free
enterprise,
were
cluding

pointed out.
Related
ference

indif¬
of business

the factor of

the

part

leaders, which is regarded as an
important
contribution to
this
state, is their unwillingness to en¬
gage in politics, as well as growing
abstention from government serv¬
ice, which are points also recently
discussed in a prominent way by
President Cordiner of the General

Company.

Electric

study

cently completed under the

tion

States

United

the

While

com¬

concern

also

preliminary

Commission

light will be shed on
"cause-and-effect" of

important
the

market

Implications

'ACCOUNTS REQUIRING
SPECIAL

FINANCING?

Talk

If you

Talcott.

whose

have loan cus¬
are tem¬

requirements

porarily beyond your loaning policy,
James Talcott, Inc. can help you keep
their
faced

good
with

will
the

and loyalty. If you're
decision of limiting

cooperate with you
in working out a financing program in
which you may wish to participate. Re¬
member: if you, as a banker, feel that
your client requires special financing
beyond the services of a bank, Talcott
can supply this additional
working cap¬
ital until such time as the needs of

loans, Talcott will

your

customer

are

again

acceptable

to you.

COMMERCIAL.
FINANCING AND
FACTORING

here

to the questionable
ket

prices

likely

such tax cut.

second straight

Officials, however, regarded the decline as "pretty good" and
the rise in the adjusted rate of joblessness did not

signify major job developments. They said figuring the adjusted
rate of unemployment is made more difficult and hence less accu¬
rate not only by the high level of unemployment but by the large
number of students moving in and out of the labor market.
Despite the climb in the adjusted rate of unemployment, Gov¬
ernment
officials took a generally optimistic view of the job
situation in light of these other factors.
The actual number of unemployed in mid-August was down
for the second straight month and was substantially under the

Fund

the next month to

total

the

bring

form

300,000

increases

YORK

concurrent

some

market's

values,

will

NATIONS, N. Y.

-In addition to the several mani¬

An automotive

were

better-than-seasonal r

of the recession-hit durable goods in¬

strike would not necessarily knock the props

market, states "The Iron Age"
this week.
reiterated the current week tnat steel market strength is

national metalworking weekly,
It

coming from a broad cross-section of industry, with the auto firms
contributing only partly to the upturn.
O£ course, a peaceful

Continued

Granam

Thomas

Inc., was reelected President for
the tenth consecutive year. Merle
E.

Robertson

Citizens

Co.,

and

Fidelity

were

Lee

Commissioners

are*

dent

the

Association

American

when

espe¬

lo announce

that

STOCK of

INC.

Ticker

Symbol LCA

listed

now

the

AMEPICAN STOCK EXCHANGE

Bankers

convenes

pleased

OF AMERICA,

dents.
The

page

LITHIUM CORPORATION

Trustj

Vice-Presi-«

reelected

are

the COMMON

Miller,

Bank

Miller

Lee

in1

Chicago Sept; 20 to 24 this year.

are

acting

Specialists in this stock

•

The Honorable Bruce Hoblitzell,

of Louisville, ;
scroll to Mr. Miller I
from the city and the Commis-;
sioners of the Sinking Fund, on;

MILTON E. REINER 6- CO.

Mayor of the City

Oct.

♦.

Members, Netc York and American Slock Exchanges
111

Broadway

since mid-June by rising

defla¬

Chip and related

largely removing an external and
uneconomic element of distortion

THE TTVTTED

DETROIT

There

total.

15,500,000

nearly 200,000,

from under the strengthening steel

will present a

NEW

in jobs in

dustries.

which

measurably restore its true invest¬
ment functioning.

CHICAGO

ment continued the improvement evident

profit-laden areas, with offsetting cially honored this year upon the
reelection of Mr. Miller as Vicebuying of the value-criteria issues.
President as he will become Presi¬
In any event, the tax reduction

the

went

mid-August, manufacturing employ-

tion of the Blue

5,400,000.

emnlovment

seasonal high of 65,400,000 in

appreciation
has
a holocaust of
liquidation, or would the market
generally rise because of a light¬
ening of the burdpn on speculative
profit-making?
The conclusion pervading a fulldress discussion of the question,
which this observer shares, leaned
toward anticipating a reshuffling
of the
market's price structure;
large

accrued

5,000,COO mark for the first time since mid-January, when it was
4,500,000. In mid-April, unemployment fell to 4,900,000 but rose

Sinking
Sept. 10, 1958, Thomas
Graham, The Bankers Bond Co.,
the

effect on mar¬
to ensue from
on

from 7.3% in mid-July. This was the
monthly increase in the rate, placing it well above

contended

stocks

jobless boosted

the recession last summer,

Would the resultant

df
capital

XX'','.

"XX,.

the 4.3% for mid-August 1957.

meeting of the

/'.XX\ XXX \.X;

XX',

Unemployment declined by 600,000 to 4,700,000 in mid-August,
Government reported, but the drop was not as large as is
The less-than-usual decline in the number of

connected with

regular

total of

Seasonally-adjusted rate of unemployment for mid-August to
7.6% of the labor foi'ce, the highest point since the beginning of

legislative
movement
to
halve
the capital
gains tax, some doubt was ex¬
pressed about the likely attitude
thereto, of the funds along with
other market participants, owing
to plan

unfreezing
tomers

held

meeting

the

Fund held

Proposed Tax Change

Commissioners

increase of 26,300, to

considered normal at this season.

Commissioners Elected
'

this current financial phenomenon.

direc¬

the

will be full-dress

Louisville Sinking

was

This compared with an

auto workers.

ma¬

bly including a ceiling on the size
of a fund entity.
In any event,

re¬

HAVE

some

jor legislation in this area, possi¬

Washington

YOU

initiate

week ended' September 6, the department
12,200 from the week before to a total of

the

The decline

262.900.

consideration of the various press¬

conclusions,

dropped to the lowest level since the
United States Department of Labor

217,000, in the like week of 1957.
Only six states failed to share in the decline in insured unem¬
ployment, the report added. It said a number of states reported
improvements in seasonal industries and others noted recalls of

discussions

area

ing problems
expected to come forth in about
world trade.
six months, will likely lead the

economics

dropped

noted.

phase of
in the

important

session's

the

$150 million-assqt enti¬
ties of the Nineteen Thirties.
'lowly"
The

other

The

drawing unemployment condensation

pared with 5.2% the previous week and 2.7% a year earlier.
The number of initial claims for unemployment compensation

subsequent Congressional
as occasioned by the now

reported. The weekly decline was the seventh in a row.
A total of 2,085,900 workers received the compensation nayments in the August 30 week, a decline of 96,400 from the week
before. The rate was 5% of those eligible for such payments, com- *

amount to be

exact

■

week ended December 28, the

last June

1940 and

the week ended August 30

The number of workers

full-scale study begun
devoted to the Fund is not yet
by the Wharton School
definite, the goal for the new en¬
of the University of Pennsylvania
tire Technical Assistance Program
under the auspices of the SEC,
is now $100 million but is ex¬
the
mission
having been con¬
pected to fall far short of that
tracted out to it by the Commis¬
objective. Last year the record
sion on "competitive bid" routine
total on T e c h n i c a 1 Assistance
or a $35,000 tee.
Projects was $31
million.
The
"business" dwelt on. At the same
Bringing in some light on the United States has promised to
size
time the affirmative destructive
problem, this investigation subscribe, subject to Congressional
actions of some businessmen, as will take the SEC off-the-hook on
approval, $38 million (last year
through associations and founda¬ this phase, where it was placed by the matching was on a 45-55%
tions, in promulgating policies, in¬ the Investment Companies Act of basis.

occupied with the
the reason for
the
alleged deficiencies in the
"selling" to the public of the ad¬
vantages of the free market — a
perennial but still unsolved^ ques¬
tion. Not only was the continuing
low state of "public relations" of

April, 1958.

mitting itself to a total of $40 mil¬
lion
maximum a
basis of 40%

top-level explora¬

XXX

questions are matching-with-other countries.

These and related
now

the July revision—to 132%.

August figure compared with the 1957 high of 145%,
where it stood in August of last year and the 126% recession low

Fund; while at the same

the

same

The

planned to place jointly up
million into this Special

—with

The board also revised its June index upward by one

point—the

time rais¬
mutual funds getting too big? Are
ing the existing Technical Assist¬
the wrong people buying them ance
Program to $50 million an¬
now; and in any event, who is? nually from its present $32 million
What

average—three points above the revised 134% level

1947-49

July.

productivity centers.
$50

production in August regained more than lialf the

ground lost during the recession, the Federal Reserve Board indi¬
cated and the August seasonally-adjusted index was at 137% of

equipping—of
in public administration, statistics
and technology, and of agricul¬
tural and industrial research and
It is

This rise, it stated, is in contrast to continued

capital equipment.

declines after the total index had reached its low in the two earlier

staffing and
training institutes

the Federal Reserve

widespread and have included advances in industries producing

ment—including

businessman.

business conditions,

upon

Board, in its latest summary, struck an optimistic note by stating
that rapid recovery in economic activity continued in" August.
Elaborating further, it reported that industrial production and
construction activity, non-farm employment and consumer buying
advanced further during the month. Turning to the price structure,
the board commented by saying, from early August to early Sep¬
tember prices of industrial commodities generally changed little.
Increases in activity since early Spring, it declared, have been

,■.

re¬

Business Failure*

trying

Industry

Business

Small

vfmm

Price^nde*

Price Index

Auto Production

General

Emergency

Output
Trade

Dr.

Commodity

dent Eisenhower's

Assembly session.
White of the
Here, spilling over from other
Administration
spirit of its lovely secluded col¬
spheres, will be additional inter¬
lege surroundings here, have been concluded that there is "a fright¬ national
spending projects.
The
this
year's proceedings of the ening lack of interest" by the
debate will take up a
business community regarding general
Mont Pelerin
specific and detailed consideration
participation in government serv¬
Society.
This
of a separate Special Fund, a new
is a group of
ice; and that the periods of serv¬
organ to be created by the Gen¬
ice
are
shortening,
functioning
highly disera] Assembly, on the recommen¬
merely as a sort of "career de¬
tinguished
dation of the Preparatory Com¬
tour.".,
economis ts,
Xr'i;,X :X'.- <• ~X
mittee of the Economic and Social
educ a|to r s,
! ; The distinct conclusion voiced Council. This would increase the
government
at Princeton was f hat the business Technical Assistance Program for
leaders
and
executive ihust increase and irri- the less developed countries. Its
j ou rna 1 ists
prove his efforts in the commu- operations would be directed to
from
Europe,
lity to advance the free market enlarging the scope of the UN
the F a r East,
system; while personally accepting programs of assistance to include
South Africa,
obligations to participate in our special projects in certain basic
imm
and' both
'nasty" political processes, along fields,
as
intensive surveys of
Americas,
with rendering government serv¬ water, mineral and pot e n t i a 1
sn
quite uniquely
ice when it is constructively re¬ power
resources,
the establish¬
PRINCETON,

Retail

State of Trade

the

chance

Production

Electric

Carloadings

highly problemat¬
to Presi¬
Economic Plan
for the Middle East advanced at
outside

Steel

The

t(he economic area will emerge—

By A. WILFRED MAY
FROM THE DIARY OF AN

new

New York 6,1L4L

Volume :88

Number

5778

The Commercial and Financial Chronicle

(1105)
anesthetics

Chemical Investment Elements

amins

few notes about

second look

altitudinous market prices.

at current

even

forward

with

wonder

Increasingly,
willing to view
for

their

Electro

investors

among

distant

horizons

gains,

Metallurgical
Company
produces 100 odd alloys, mainly
for the steel
industry but with

chemical

capital

shares have moved into the spot¬

vital

light of popu¬
larity. Where-

and

years

the

ago,

general
small

insist

even con-

sidering
equity,
the

in¬

dividuals' will

tra

their

even

though the immediate
visible return is
only 2M>% to 4%.

Why is

this?
Why should
traditional quest for current
stocks

are

The

this

is in

single

the

number

rise, in

past

net

decade

faster rate.

informed

over¬

amid.

been

over

the

limited growth

for

the

off

with

second

Union

largest

lion

Carbide,

ACY
dend

bottle caps, tiling,
paneling

turns

Linde
out

dustrial

oxygen
uses;

manufactures

Eveready
Prestone

Company
with

division
many

National
the

storage

well

known

battery,

anti-freeze;

in¬

Carbon

and

while

the

has

even

1957

and

introduced

Spontin,

Tral

variety. The Chicago bank economist describes
the three
expenditure segments of our

for

ahead

past

from

seven

period

its

years

has

earnings;

line

and
expanded
continued
annual

and

net sales for research

Abbott

not

at about 16 times

ratio

into

for

ACY

than

cash

divi¬

$1.60 in
and, in the

declared

two

and

assump¬

part the long¬
shareholder from his

certificates.

He's

thinks

had

his

too

good

company

top management. It has.
Abbott
Laboratories

common

some

of the

pharmaceuticals, it

diverse and

quite as de¬
pendable. Its product line includes
600

over

drugs

—

items,

vitamins,

$58.82

mostlv

ptbi^al

anti-infectives,

economic terms

developments is
of

readily
month-

year

needed

are

enable

man¬

Spencer Chemical is
of

different

appraise

ical

company from the ones
It is a petrochem¬

business
future and ad¬

specialist, turning out anhy¬

Over

just their pol¬
icies

ucts,

tural

polyethylene.

production

chemicals,

elements,

and

industrial

chemicals.

accord¬

the

stant

changes

Tom

Plank

goods

activity is 'subject, business

management is faced with

this

ual hazards and dificult
problems J

unus^

oversupply in ammonia and,- Budgets of purchases, production,
a lesser
extent, in polyethylene. employment, inventory, and ex-

So while sales have held
up, earn¬
ings for fiscal 1958 (year ends

penditures must be made to project the operations of a business

6-30)

into

below

were

the

$4.05 per
The indi¬

share reported in 1957.
cated
dividend
of

surely

$2.40 should
maintained
and
the

common, on that basis, yields just
4% at 60. The stock is favored
l'or its long term potential and is
well below its market

recorded

high of 77 Vi

1955.

Other chemical shares of inter¬
est would include

Olin-Mathieson,

rather

high

grown in

yielder which has

stature by

number of

interesting mergers, and National
Distillers

less

Chemical

and

which

chemical

and

distiller as time goes by.
Every article on chemicals is in¬
complete. The industry is just too
broad and complex to be covered
in anything short of an
opus at
a

least

long

Wind."

But

sophisticated
who

ing

are

"Gone

there

not owners,

today
consider¬

representative

including

—

touched

the

few

very

investors

ownership,
have

With

are

some

A gainst

upon.

the

future.
Expansion plans
logically be made for
months, or even for years in the
must

future.
The

complete our knowledge and understanding of cyclical factors that prevail, the greater
the probability that we will
more

make

wise

dence

decisions.

based

are

The

evi-

which business forecasts

found

cyclical

(short-term) and secular (longterm) trends in the development
of economic forces.

Under the in-

creasing

complexities of modern
life, the business manager must understand the nature
economic
these

must

forces

because

farther

see

future

than

trying to

say

si derat ions

the

What

is that American
new con-

weigh in making
depend on an un-

that

derstanding

into

before.

businessmen have broad

decisions

today he

ahead

ever

the

state

the

markets, and
opportunities for

business that will open up as the

This

rapidly expanding

formidable

one

Forms Own Invest. Go.

pop-

task,

but

responsibilities.

which

the

cannot

exercise

Gross

II.

PHILADELPHIA, Pa.—Leon H.
Sullivan has formed Leon H. Sul¬

avoided

managerial

our

Generally,

much reliance is

Production

whenever

Penn Center Plaza to engage in a

business

National

conditions

placed

hear

discussion,
upon

such

Sullivan

formerly an officer of Arthur
L. Wright &
Co., Inc.

was

but

address

15th

Tennessee

Conference,

Mr.

Bankers

Plank

before

DETROIT STOCK EXCHANGE

111

•

Masters

&
•

McDowell

local

roads,

bridges,

and

fire

protection,

has

Fla. —William
become

Often

years
nam

was

Fund

vice president

(

Associate >

have

accounted for 20%
of the
nation's total production of goods
and services.
Business expendi-

tures, then, would be the third
main part of our economic struc¬
ture.
They have averaged 15%
Gf

the nation's total

spending,

Teletype NY 1-1385

Frank Blount
HOLLYWOOD,
Blount

Last year these three main
segments of our economy in the
ag-

gregate
goods

spent

and

$440

services.

$440 billion

billion
If

business

conducting
from

must

same

goods and services,
goods and services

have amounted

to $440 bilIndeed, it did, and we call
nation's
gross
national
product; that is, gross national
product is defined simply as-the
dollar volume in current prices of
the nation's total output of goods

pon.
this

the

services.

ancj

From

the

what

foregoing

that

seeil

have-

going

securities
at

6253

can

some

these

economy—consumer,

idea

three

business—then

Association

Knoxville,

Tenn.,

government
will

the

business

current

Likewise, if
trend
and

will

situation

guess

of
consumer,
government
business
expenditures,
we

also have

the

then

fairly clear idea

probable level of business

take

these

An-

main

and

with

see

are

areas

idea
going.

some

Let's

at each

brief look

three

economy

is.

make an into the future

we can

during the coming months.

the

have

pretty good picture of just what

can

our

come

just

'
Fvnrmlitures*
(1) Consumer LXptllUllures.
1 .

Sept.

Continued

071

^dQe

I694E

MUNICIPAL BONDS

CORPORATE BONDS
LOCAL STOCKS

Opens

offices

Hollywood Boulevard.

spent

then the nation's total production
of these

of Put¬

Calif. —Frank

consumption.

Distributors, Inc.

(Special to The Financial Chronicle)

over¬

police and
the average

associated

Goodbody & Co., 127 North

govern-

schools,

MIDWEST STOCK EXCHANGE

Broadway, New York
_

and

Main Street. Mr. Masters for
many

AMERICAN STOCK EXCHANGE

Telephone WOrth 4-1155

state

not

Government,

expenditures

1958*

STATE AND

(Special to The Financial Chronicle)

ORLANDO,

Straus, Blosser

include

Federal

Wm. G. Masters With

with

MEMBERS NEW YORK STOCK
EXCHANGE

Government

which

looked services such

ESTABLISHED

Literature Upon Request

also

where

m.al

Goodbody & Go.

Cooper Tire & Rubber

services.

total

meht

livan, Inc., with oftices at Three
Mr.

only

■

business.

and

expenditures,

telligent
is

Leon H, Sullivan

securities

ac¬

an(j

credit
new

ulation.

good retort!

buy, have

money and
finally, the

result of

ex¬

serv¬

main expenditure segments of our

holdings,

has

and

American economy, the financial
of foreign countries, the

health

argument that selected chem¬
ical shares are desirable
long term
no one

consumer

goods

counted on the average for
65%
of the nation's total
production of

con¬

Chemical
year

years

the

ices that all

to which busi¬
ness

Profitwise,Spencer
has been handicapped
by

agricul¬
in plastic

28%

19%

About

the

penditures,

ingly. In view

and

53%

somewhat confused.

ness

the

drous ammonia and related
prod¬

economy," and the like. As a re¬
sult, after a few minutes, we be¬

only three main parts to our busi¬
system—consumer expendi¬
tures, government expenditures,
and business expenditures.

agement to
sort

gross national

Now my purpose
here, as I see
it, is to be as clear as possible,
and the fact is that our
economy
—how it works—is not hard to
understand.
In fact,
there are

litical and so¬
cial conditions

selling at

product, gross private domestic
investment, inventory disinvestment,, "our complex, inter-related

come

changes in
economic, po¬

earnings, a mod¬
a
stock; and

has

common

has been a most faithful
equity
having paid dividends, without
hiatus, for 32 years and it looks
quite sturdy in the markets of
today at 60 paying $1.80 (plus an
extra). If it is not as flamboyant
as

year- to

110.

time

business

fine

Introduction

recognized.
Analysis
to-month and

4% preferred convertible

responsibility in

importance of analyzing the
cyclical implications of
current

12.6%, and in net of 14.5% (from
$1.01 per share in 1957 to $1.16 in
1958). Abbott common is selling
est

five

faith in the integrity of
money.

our

The

quarter results this year
excellent—a rise in sales of

chemical shares

is, likely

suggest that

languishing in the

First

there's

main

into

uncertainty

preserving

laboratory.
were

delves

presently affecting our economic system.
Terms inflation the foremost
problem facing us and calls upon
business, labor and government to share the

anti-biotic.

new

and

economy

areas

specialties have broadened

Abbott

becoming

exchange.

moved

tions

forms:

roofing.

The

peptic ulcers; Harmonyl, a tran¬
quilizer; Peganone for epilepsy;

high, but neither of those

The

dustrial users, these resins
find
their way into a myriad of
prod¬

ware,

Against
that
charge stands the
basic fact that Abbott
spent almost
million on research last year,

100% stock dividends. Stock prices
be high, and ACY may be

powders, liquids, films or sheet¬
ing.
Sold to processors and in¬

and

may

turns

ucts—telephones, radio cabinets,
raincoats, squeezable bottles, cur¬
tains, luggage, insulation, table

for

Company acquired

ACY offered in

large scale
ingredients

many

and

gross

company line, and
justified the 1,047,384

including vinyl, phenolic,

resins

its

by ACY in 1956 has rounded out

same

these

accounting

the

Carbide stems from its

out

The Formica

the

polyethylene.
Company division

steadily,
28%

over

since

and

double

higher percentage of net.

carbide, and 11% from elec¬
trodes, carbons, and batteries.
Leadership in plastics for Union

styrene

Laboratories, the ethical
division, has been moving

drug

and

Bakelike

allocated

was

ahead

War II.

production of the vital

Lederle

It is also
diverse,
deriving about 30% of sales from
chemicals, 25% from alloys and
metals, 14% from industrial gases

—resins

Now, how¬
major long term
in earnings, and $30 mil¬

projects

capacity.

means, a tired
company, as
evidenced by the fact that its sales

World

year

years have been

acryionitrile plant at For-

up curve

American

tripled

"tread water"

the

ever, it

than

even at 52.

of the red 'til mid-1957.

company, and number
in plastics. It is a
big, but

1958

3.25%,

tier, La. in 1954. The plant lagged
in
profitability and never got out

have

adjust¬

future is bright.
For
example, ACY staked $52 million

chemical
one

and

was

ACY, few past
and

potential.

omy

just outlined.

$2.42. The $1.60
however, seems secure

and yields

more, as time goes on.
would surely be no mistake

start

1956

which in 1957

divi¬

now, having assured our
readership that chemicals yield
less, let us look at some that may
It

It sold at 133 in

assimilation

dividend,

And

say

1957; and some reduction
(perhaps to $2.05) of per share net

more*,

stock

lion

stock

increases,

ment, with some decline (4-5%)
from peak net sales of
$5321/o mil¬

even

So it is that the

the years is American
CyanFor ACY, 1958 will be a

year

whole;
companies,

profits

has

over

dends and profitable retention
and
plow-back of net, to other issues
with better immediate
yield but
thinner profit margins and a more

earn

re¬

Another company
essaying very
high in stockholder contentment

buyers now say
they prefer chemicals, with their
dividend

the

when it had less to offer.

worked word—growth. The chem¬
ical industry is
growing at the
rate of about 9% a
year against
some 3% for
industry as a

and, for

felt

the

at 111.

even

considered?

answer

has

there's nothing
very wrong about Union Carbide,

be sublimated when
chemical

now

Carbide

place

power.

yield

Mr. Plank's review of the
strong and weak points in our econ¬
concludes that business in the
coming months should
continue the improvement that
became evident last
May—at a
mild and gentle
pace rather than a
rapid upturn of the 1955-56

drug in the post war era,
pharmaceuticals have.

outlays of between 4% and 5% of

earning power; (3) $160 million in
1958 capital expenditures sets the
stage for
large future earning

shopping

Research Dep't
The First National Bank
of Chicago

major

the

million in working capital and
(2)
rapid amortization hides the true

Cobleigh

place

chemical shares
list

Colo¬

$3.60 dividend in
any jeopardy because (1) the cash
position is golden with above $400

today

eagerly

new

These

not

same

major
It has

and

Union

be¬

fore

mines

By TOM M. PLANK*
Assistant Cashier, Business
and Economic

many

and
a

cession, and 1958 per share net
may slip to below $4 against $4.45
for last year. This,
however, does

better

missiles.

uranium

current

return

vanes

any

Tenn., and Paducah, Ky.

buyers

The Business Outlook

best

operates uranium sep¬
plants
for
the
Atomic
Energy Commission at Oak Ridge,

sized

would

for

The

aration

rado,

med-

stock

100

over

run

ium

for

Union Carbide also has
status in
atomic energy.

dozen

applications in blades,
cones

(Vit¬

account

sales.)

The main criticism of Abbott
(if
it is such) is that it has not come

chemical shares worth

some

known proprietary line is
Sucaryl,
non-fattening sweetener.

Enterprise Economist

Jotting down

hyponotics.

packages

25%

over

15y DR.. IRA U. COBLEIGII

and

RHODES-HAVERTY BLDG.

ATLANTA

WALNUT 0316

LONG

GEORGIA

DISTANCE 421

and Financial Chronicle

The Commercial

You

The Businessman and

position to judge the merits of
two arguments. But we do
tnat we can't gamble with
national survival—even when the

President, Radio Corporation of America

approaches by Business and Government to maximize
are proposed by RCA's new
President who does not minimize the haunting specter of
Communism over Europe and the rest of the world. Mr. Burns
effectiveness in the Cold War

establish

planning

effort

defense

take

"full

superb

of the

advantage

;

would

strength inherent in our free enterprise system" which

rate

The Threat

not,

today we are in a Cold War with
Russia. At this point, no one can

how long
expect

say
we

cold.

Among

our

informed

best

military

and

civilian

au¬

se¬

school
Burns

Russians

will

made

mount

our

pared with
*An

•50th

500 submarines
our

address

Anniversary

Business

School

use

their

military

sparingly. This economic
approach is one that is difficult to
get people excited about. The feel¬
ing is that the Russians will keep

are

key cities and

retaliatory

our

some

able

power

power.

waging

ruthless Cold

War,

probing for soft spots in the Free

The claim is heard that the Soviets
have

further
of the

many

after taxes may run as low as

with

,hi£tve for the consumer.

percentage allowance on produc¬

times

allowance

p K

the Russians, and fifty
cars—all
of unsurpassed quality. ' '
The total value of the goods and
as

ances

times

makes the necessary changes.

many passenger

rarely

any

production
and the
figures are the same.
.

„

the ? present con¬
tracting procedure, renegotiation
hangs like a sword over the con¬

appli¬

household

many

' ^

there r is

Now

tion.

large-scale

out ajjout ten

are... turning

repetitive

large

volume, made up for the low re¬
turn on research and the meager

constructive
position on controversial issues., .
(2) It must do the job the best
way it can until the Government

their

which,

contracts

production

got

because

new

2%'.

During World War II, there was
a compensating factor.
Companies

society/ It is a classic test: of the
free-enterprise s y s t e m versus
The challenge to the, business
Markiafi socialism. Our task is to
community is clear: The security
put theere&tiy^^^
of our country is at stake,- so .busir: ,
of Airiericanwih*d^sti^/^^pfk;us
hess must live according to; a Y*e-.
effectively for the military as we

tec!

full

free-enterprise

our

.Throughout

Let

head.

tractor's

give you

example of what I mean. Sup¬

that

pose

producer

efficient

manufactures

defense item and

come

with

and

highly

cen¬

tralized governmental control.

have tried to whip

In short, we

dictatorship!

modified

it for $900,

sells

„

incentives

'system

play. In wartime, we have be¬

behind

they have the capabil¬

ity to knock out
destroy

be made

activity. X

competition

kind

the

been

argument

sneak attack as soon as they
confident

but in the long-

date has been such that they have

The

the

because

reduction

than 7%.

subject

making a profit
1963. During this fateful interval,
(3) It must look seriously and services produced in this, country of, say, 15%. Then, suppose that
they say, our own capabilities in candidly at its own situation* and in a year is $429 billion—between an inefficient producer sells the
missiles, aircraft Army and Navy keep its stockholders and other, two and three times as/ifluch as in same item for $1,000 and makes a
forces will lag so far behind those interested parties informed of our Russia.
l
profit of only 5%. Even though
of the Russians as to place us in country's
needs.
Likewise,
it -"In our defense effort, we have the efficient producer sold the
grave peril.
should listen attentively to criti ~ not taken full advantage of the item at a much lower price, it is
A second school of thought con¬ cism
and
be
prepared
to .act superb strengths inherent in our he and not his inefficient competi¬
tends that the greatest threat to promptly.
•
' - free-enterprise system: i We have tor who stands to have his de¬
our
security lies not in the im¬
In peacetime, we have permit- tried to operate with insufficient fense profits renegotiated, on the

danger is im¬
that

with

Russians

one.

tied

hand

back:',

our

ground that they are "excessive."
What we have here, in effect, is a
case
of a company being penal¬
ized for actually saving
ernment some

free-enterprise

11' there is to be a

money.

the Gov¬
•

of the Renegotia¬
highly commendable.

The

purpose

approach to our defense, require¬ tion Act is
ments, / the < Government'; in
its It was drawn up originally during
dealings with business" obviously World War II to
provide for a re¬
must be guided by the factors that
view of contracts that were being
make the system work. These lacAgainst this background, let's
hurriedly
executed - under
the
look at some of the major factors tors include incentive,' teamwork,
pressure of a war emergency. But
that should be taken into consid¬ decisiveness, initiative, and plan- modeification of the daw is long
.

John

holds that the

mediate.

and this
often. In

It is difficult to ne¬

fee

this

Even

The competition bfctvVeen our¬
and the Russians is a new

an extended period, to
mobilizing our manpower and in¬
moral, political, economic, dustrial capacity for an all-out
military and social pressures short effort.
of all-out war. It is pointed out
Now it is up to the Government
that economic warfare is cheaper,
to tell us whether we have a na¬
subtler and more penetrating for
tional emergency, and, if so, to
the Russians, and their success to
spell out the specific requirements.

our

gotiate

selves

apply

curity.
One

•

attempt to covgrthe

tinue, for

paramount

national

are.

challenge. The argument is
made that the Russians will con¬

cipal
schools
thought on
to

range

threat

between

mediate situation

thorities, there
are
two prin¬

the

forms of business

can

it to stay

riod

fast

to 10%.

even

industry as other

attractive to

political, <

speak up—to take a

experts put the critical pe¬
the fall of 1959 and

Some

must face up
realistically to the fact that

Like it

times

ten

Government work must

mindful of the

moral,

(1) It must have the courage to

building underseas craft at a

are

•

—

vised set of rules.

provide industry with In incentive and would also save the
Government money.

—

very

sense

field, but shall confine my
remarks to the role of business
in this situation.
* *

He suggests, further, measures so that the

can

to the short-range
threat, the Government and par¬
ticularly the Defense Department
must stimulate and encourage our

entire

of government—transcending beyond problems

of the Cold War.

Threat

I shall not

lack, and direct short- and long-range planning

groups

thousand

economic, military and social..

might be called the Permanent Council on Plans and Policies
which would have the continuity and permanence existing
in all branches

common

We must be ever

Total

fourth branch of Government that

only

happen

practice, moreover, military con¬
tracting
officers
seldom
agree

Short-Range

Posture:

facing

exception

not

dic¬ free-enterprise system. They must costs which contractors incur in
tates that our country must take supply the needed incentives to the course of a job are disallowed.
this
system
healthy arid So when the contractor gets all
all reasonable precautions against keep
both
the
short-range
and > the- strong, for our national security through, his earnings before taxes
and our way of life depend 011 it..
long-range threats..
average about 4% of his sales, and
Therefore,

new

suggests we

to one!

By JOHN L. BURNS*

our

might

odds

does

in Nation's

Need for Change

these

National Security

makes

certainly are not in

and

know

Bold

Thursday, September 18,1958

...

(lioej

World's defenses,

as com¬

eventually

100, and that they

Hot War. President Eisenhower

has said that
much

Mass., Sept. 6, 1958.

their

having to resort to

aims without

Mr. Burns before the
Conference of Harvard
Association,
Boston,

in the hope of

accomplishing

forty

may

years

be in for as

of Cold War.

- *
•''
When I talk about incentive in
nation's eohnectibii With the defense effort;'

eration in planning for the future.
I

believe

need

for

there

changes

our

defense

posture—both short-range
and long-range. To meet this need
will require bold new approaches
in many areas, especially on the
part of Business and Government
as Partners in Preparedness. And.
I

address

the

all

ning. '

;■.

overriding %

of my comments

system and not to the person¬

alities involved.

threat to

.we,

not

.exploit' the

national, security

our

order to increase industry's earn¬

present system, the basic

our

weakness
tives

much

and, of course,
tives

there

many

could

are

But

more.

people

country

our

not

are

portion of their time and
thought to it.
/
only

(2); The profit incentive is in¬
to enable companies to
devote a major effort toward re¬
search
and - development
work
sufficient

ASSOCIATION,
INC

originated by the company itself.
Therefore, the full potentialities
of free-enterprise in this field of
creativity are not realized. Under the present system, there

THE

OFFICIAL

N.S.T.A.

MEUM

PACTUM

CONVENTION

NUMBER

AND

as
profit, on re¬
development
con¬
The second law is the Re¬

their

PLEASE

RUSH

YOUR

ADVERTISING

costs,

and

tracts.

23rd.

negotiation
authorizes

SPACE

RESERVATION

FOR

for

upwards of 400,000 rhanr
year to preparing reports

long list of Federal agencies.
of
writing reports and

Instead

reviewing committees,
engineers
more
productively

scientists " and

these

far

could

employed in gaining new
edge through
While

matter

that

ber

are

;

the

considering

incentive, let's remem¬
this

those working

Armed

the

knowl¬

research.

concept

applies

in Government and

Forces

well as to

those in business.

Washington came
to
Cambridge to take over the
Continental. Army Command, he
understood very well the princi¬
/

When George

OCTOBER

staff is

below

YEAR-BOOK WILL BE PUBLISHED BY THE "CHRONICLE"
ON

hours

fully

that

depreciation in incentive even ple of paying men to fight. How-?
it remained a continuous
the level provided by law. ever,
There are two major laws that problem with him throughout the
Revolutionary
War to convince
regulate defense work now. One
is the Armed
Services Procure¬ Congress and the States that they
should live up to their pledges of
ment Act of 1947 which authorizes
the
services
to pay
contractors providing pay, equipment, sup¬
plies
and
special benefits for
their costs, plus a fee up to 15%

is
DICTUM

aircraft

one

mates

serving

these:

has been carried
For exam¬

company esti-*
one-third of its
needed to cope
'Government paperwork. It

ple,

technical
devotes

working on defense, or are giving

TRADERS

with

harmful extremes.

with

Some of the most effective

(1)

instances,

some

are

people working,
with proper incen¬

the real losses to

SECURITY

But

work.

defense

procedure must be tempered

not

are

There

defense.

talented

incen¬

that

companies

many

working
many

the' lack

not

people in

NATIONAL

recog¬
controls oh
the* control

course,

nize the need for some

chances for survival.

our

OVER-THE-COUNTER-MARKET

? Businessmen," df

checks,
! Jl*-,

above alT, it. would help strengthen

SYMBOL OF INTEGRITY

too many

having

rather than too few.

What I am proposing is judgment and adjusted to meet
varying conditions if we are not
something that would be an in¬
to weaken incentive.
centive to industry and would also
save the Government money. And
The,.! practice of checking, in

ings.

in the

it clear I

that

suggesting

lies

misunderstood.

I do not want to be

I want to make

The chief danger today

overdue.

PREFERRED

POSITION.

take

Act

second look at

defense, business,

CLOSING DATE FOR COPY IS OCTOBER 1st.

see

1951

if the

which

Government

the

after

company's
one

year,

profit has been ex¬

cessive.
The

15%

fee, stipulated in the

Procurement
back

services
the

Army,

has

Act,

10%
unless

been

cut

the individual
Secretary of

the

Navy,

Air

Force

soldiers.
Better

Paid Military

Demanded

Prior to World War II, our

tary
the
sea

mili*

services were predicated on
of land and

traditional lines
forces operating

relatively in¬

dependently. The services were
made up of a comparatively small
corps
of professional personnel,
on the assumption that these peo¬
ple and the meager resources fur¬
them
would provide
a
r,nntir)iie>rl nn nnnp 2(1

nished

188

Number 5778

The Commercial and Financial
Chronicle

$30MO MO
LOS ANGELES COUNTY FLOOD CONTROL DISTRICT
Los

Angeles County, California

33A% Bonds
Dated

May 1, 1953

Due

May 1, 1959-83, inch

Payment and Registration

AMOUNTS/ MATURITIES

Principal and semi-annual interest (May 1 and November 1) payable,
Angeles County iri Los Angeles, California,'or at

at the option

the Treasurer of Los
N.

Y.,

fiscal

any

agency

in Chicago, 111. Coupon bonds in denomination of $1,000 registerable
only

of the holder, at the office of

AND YIELDS OR PRICES

of said County in New Ybrk,
both principal and interest.

(Accrued interest to be added)

as to

Yield of
.

hi the

" '

Tax

'■

Exemption

Amount
l

Duo

■

opinion of counsel, interest payable by the District upon its bonds is exempt pom all
present
Federal and State
of California personal income taxes under existing statutes,

$3,275,000

Price

1959

1.75%

regulations and

•

1,125,000

ments

California for other funds which

legal investments for savings banks, and

deposits of public
<

These

eligible

are

in California.

moneys

various

of the Los

ad valorem

3.30%

1970

3.40%

1971

1,125,000

v/ ;r;.;;

3.50%

3.55%.

1972

j
"

1,125,000
*

1973

3.60%

1,125,000

1974

3.60%

1,125,000

purposes,

property in said District.

3.20%

1969

1975

3.65%

1,125,000

1976

3.65%

1,125,000

;•

1977

3.70%

1,125,000

1978

3.70%

1979

3.70%

1,125,000
1,125,000

offered when,

are

underwriters

not

whose

will be furnished

names

and subject

request,

well

100

1981

100

1,125,000

and if issued and received by the underwriters listed below

shown

1980

1,125,000

1982

100

850,000

Legal Opinion
The above bonds

■

real

3.ib%

1968

1,125,000

as amended, "for
in the opinion of counsel constitute the legal and binding obligations
Angeles County Flood Control District and are payable, both principal and interest, from
taxes which
may be levied without limitation as to rate or amount upon all of the taxable

flood control

3.00%

1967

1,125,000

-J \
Purpose and Security
: ^
bonds, issued under provision of the Los Angeles
County Flood Control Act,
v\..

2.90%

1966

1,125,000

security for

2.80%

1,125,000

are

2.65%

1965

1,125,000

be invested in bonds which

may

1963

1964

1,125,000

legal investments in California for savings banks, subject to the
legal limitations upon the amount of a bank's investment, and are likewise legal invest¬

2.45%

1,125,000

are

2.25%

1962

1,125,000

Legality for Investment
We believe that these bonds

'2 .00%

1961

1,125,000

court decisions.

1960

1,125,000

-7V. 1983

other

100

approval of

legality by Messrs. O'Melveny & Myers, Attorneys, Los Angeles, California.

Bank of America

The Chase Manhattan Bank

The First National

N.T.&S.A.

City Bank ~

of New York

Biyth & Co., Inc.

The First Boston Corporation
y

Bankers Trust Company

Harris Trust and Savings Bank

■

Guaranty Trust Company

Smith, Barney & Co.

Security-First National Bank

and Trust

Company of Chicago

C. J. Devine & Co.,

Chemical Corn

Exchange Bank

The Northern Trust Company

Lazard Freres & Co.

Lynch, Pierce, Fenner & Smith

The First National Bank

Seattle-First National Bank

R. W.

of Oregon

-•

Equitable Securities Corporation

Bear, Stearns & Co.

Ladenburg, Thalmann & Co.

National State Bank
Newark,N. J.

Corporation

Dean Witter & Co.

Hornblower & Weeks

Higginson Corporation

William R. Staats & Co.

Clark, Dodge & Co.

Ira Haupt & Co.

Schoelikopf, Hutton & Pomeroy, Inc.

Mercantile Trust

Pressprlch & Co.

Company

E. F. Hutton & Company

Shearson, Hammill & Co.

Bacon, Stevenson & Co.

First Southwest Company

Bacon, Whipple & Co.'

William Blair & Company

Coffin & Burr

New York Hanseatic

Corporation

Gregory & Sons

Wm. E. Pollock & Co., Inc.

Chas. E. Weigold & Co., Inc.

H. E. Work & Co.

Chicago

Hill Richards & Co. ♦'
A

The Illinois

Corporation

in Nashville

<">

Fahey, Clark & Co.

McDonnell & Co.

~
'

Incorporated

of Cleveland

relating to these bonds

Kansas City, Mo.

Field, Richards & Co.

Spencer Trask & Co.

Glickenhaus & Lembo

J. A. Hogle & Co.

Shuman, Agnew & Co.

Stein Bros. & Boyce

Wood, Gundy & Co., Inc.
"

■

The First National Bank
.of Minneapolis

J. A. Overton & Co.

Ginther & Company

J. R. Williston & Beane

of Minneapolis

Robert Winthfop & Co.

The First National Bank
of Memphis

Newhard, Cook & Co.

Seasongood & Mayer

Stern, Frank, Meyer & Fox
Blunt Ellis & Simmons

The First National Bank
*

Kenower, MacArthur & Co.

Frantz Hutchinson & Co.

of Saint Paul

Stern, Lauer & Co.

Stubbs, Watkins and Lombardo, Inc.

Tilney and Company
A circular

R. D. White & Company
V^

The National City Bank

Provident Savings Bank & Trust Company

Federation Bank and Trust Co. >;

Ernst & Company

Northwestern National Bank
'

The First Cleveland Corporation

Tripp & Co., Inc.

Lyons & Shafto

F. S. Smithers & Co.

City National Bank & Trust Co.

Company

Incorporated

A. G. Edwards & Sons

Wm. J. Mericka & Co., Inc.

Dominick & Dominick

Irving Lundborg & Co.

Breed & Harrison, Inc.
'

Thornton, Mohr and Parish

Kansas City, Mo.

■,

Burns, Corbett & Pickard, Inc.

Lawson, Levy, Williams & Stern
Third National Bank

Commerce Trust Company

Company *Kalman & Company, Inc.

Incorporated

Barcus, Kindred & Co.

Hooker & Fay

■

Carl M. Loeb, Rhoades & Co.

L. F. Rothschild & Co.

C. F. Childs and

Incorporated

Julien Collins & Company

•

Incorporated

Kean, Taylor & Co.

Roosevelt & Cross

Robert W. Baird & Co.

•V.".:-'

City National Bank and Trust Company

Hirsch & Co.

Incorporated

G. H. Walker & Co.

Laidlaw&Co.
Wertheim & Co.

R. S. Dickson & Company

Incorporated

Fitzpatrick, Sullivan & Co.

Incorporated

Youngberg

J. Barth & Co.

Incorporated

W. H. Morton & Co.

Reynolds & Co.

•

First of Michigan Corporation

Laurence M. Marks & Co.

The Philadelphia National Bank

Trust Company of Georgia

Stone &

Glore, Forgan & Co.

A. M. Kidder & Co., Inc.

Stroud & Company

Andrews & Wells, Inc.
.

Francis I. duPont & Co.

Los Angeles

R. H. Moulton & Company

Merrill
-

American Securities

California Bank

.Son Francisco

Prexel & Co.

■

Lee

Incorporated

American Trust Company
.

Continental Illinois National Bank

J. P. Morgan & Co.

of New York

■

may

be obtained from

Wachovia Bank and Trust Company
any

of the above underwriters,

well

Zahner and Company
as

other underwriters not shown, whose

■

names

will be furnished

request.

The Commercial and Financial
8

Chronicle

Thursday, September 18,1958

...

(1108)

Compo Shoe Machinery

Corporation—Bulletin—De Witt Conk-

Organization, 120 Broadway, New York 5, N. Y.
Cooper Tire & Rubber—Analjrsis—Straus, Blosser & McDowell,
111 Broadway, New York 6, N. Y. Also available are analy¬
ses of Neptune Meter Company and Texas Industries Inc.
Evans Products—Analysis—Dreyfus & Company, 50 Broadway,

COMING

Jin

Dealer-Broker Investment

of 40 selected stocks in the
—

York

Chemical

Companies—Comparative

analysis of leading com -

42 Broadway, New York 4, N. Y.
Stocks—Comparative figures at mid-year—
Huff & Co., 210 West Seventh Street, Los Angeles

14, Calif.
—

Review

"Monthly

yoda Ward, Tokyo, Japan.
Japanese Stocks
New York.

— Yamaichi Securities
Ill Broadway, New York 7,

Current information

—

Company of New York, Inc.,
-

Military Investment

Manual—-24-page booklet on mechanics of
"tailored" for service personnel—Har¬

report

Street, N.W., Washington, D. C.

ris, Upham & Co., 1505 H

Review

—

The Chase Manhattan Bank,

Products and

Booklet

Street? New York 17, N. Y.
Put & Call Options — Booklet

on how to use them — Filer,
Broadway, New York 5, N. Y.
This Is Cynamid—Booklet on organization, products and ac¬
tivities of the company and its subsidiaries—Public Relations
Department, American Cynamid Company, 30 Rockefeller
Plaza, New York 20, N. Y. "
.-vv"'.'-'"
:

.f.

■

<:■■■}■

5, N. Y. Also in the same circular are surveys
Maytag Company and Royal McBee. -

ton

Firms

Securities Corpora¬

Oct 9, 1958

(New York City)

Commodity Exchange S i 1 v e t

NSTA Notes

Oct. 25, 1958

Hotel

National

Security Traders Association is sponsoring an
buffet-luncheon at the Overseas Press Club, New
Thursday, Sept. 25, starting at 12 noon.
The officers will present an up-to-date report on the Asso¬
ciation's operations and will give a run-down on the schedule
The

Pierre.

informal press
York

City,

Nov. 7-8,

activities

the Annual

Convention

held

1958 (Chicago, 111.)

National

Association of Invest¬

ment Clubs 8th annuel conven¬

Colorado

(New York City)

Security Traders Association of
New York annual cocktail party
and dinner dance at the Hotel

SECURITY TRADERS ASSOCIATION

NATIONAL

Corporation, 15 Broad Street, New York 5, N. Y. \
Company—Study—rlra Haupt & Cm-, ll'l
a

Hotel.

meeting at Somerset

: :

Astor.

Company—Review—The First Bos-

available is

(Boston, Mass.)
Stock Exchanga
Board
of
Governors
of

Association

Anniversary Dinner at the

Broadway, New York. 6, N. Y. Also
Standard Packaging Corporation.

Friday.

Oct 6-7, 1958

tion, 52 Broadway, New York 4. N. Y.

tion at the Hotel Sherman.

Springs beginning Sept. 29.

Beckman Instruments

Productions—Analysis—Delafield & Dclaficld, 14

Raceway Inc.—Bulletin—Hunter

Yonkers

Incorporated —Repertr^-r The Milwaukee Company, 207
.East Michigan Street, Milwaukee, Wis. j Also available are
reports on American Hospital Supply, Arizona Public Serice Company, Reading and Bates Offshore Drilling Company,

Baltimore Gas and Electric

California-r-Analysis—Schweickart

New York 6, N. Y.

way,

that evening; ^golf, etc.,

dinner

York 5, N. Y.
•
;
S. D. Warren Co.—Memorandum—Goodbody & Co., 115 Broad¬

Amp

Country Club; cocktails and
at Eddys Thursday and

lunch

Stern & Co., 52 Wall Street,

New York

and Life Companies.

Street,

;•?<!/v

■■■

Wall Street, New

New York 5, N. Y. Also in the same bulletin are data on
Associated Dry Goods and JBond Stores.
American Stores—-Survey — Abraham & Co., 120 Broadway,

(Kansas City, Mo.)
Group Of the In¬
vestment
Bankers - Association
annual outing at Oakwood Golf
1958

Southwestern

Co., 29 Broadway. New York 6, N. Y.

Walt Disney

Schmidt & Co., 120

Allied Stores—Data—Herbert E.

.New York 4, n. y.
Standard Oil Company

Ding*'

Broadmoor.

the

Oct. 2-3,

Street, New York 5, N. Y.
,

try Club.

Thomson &

Spiegel, Inc.—Analysis—T. Li Watson & Co., 25 Broad

"Fling

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

Labouisse, Friedrichs & Co., 222 Carondelet Street,
12, La.
Speer Carbon Company—Analsys— H. Hentz & Co., 72 Wall

18 Pine Street, New York 15, N. Y.
Processes—Booklet- on^products of the company
"G"— Union Carbide Corporation, 30 East 42nd

annual

Mauh-Nah-Tee-See Coun¬

at the

New Orleans

—

Allegheny

the

Outing

sociation

Weil,

Petroleum Department,

Sept. 26, 1958 (Rockford, 111.)
Rockford Securities Dealers As¬

McKinnon, 1 Wall Street, New York 5, N. Y.
South Shore Oil & Development Co.—Memorandum—Howard,

4, N. Y.

;

—

Country

Country Club, Sewickley, Pa.

Ltd.—Study—Troster, Singer & Co.,

Trinity Place, New York 6, N. Y.
Seaboard Air Line Railroad Company — Report

and

Petroleum Situation

—

Fall

market performance over a 19-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
yield

Club.

fall

Cleveland

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

Street, New York 4, N. Y.

Scudder Fund of Canada

up-to-date com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Club

Bond

...

(Cleveland, Ohio)

outing at the Cleveland

Digest"

Seismograph.
Corp.—Report—Hayden, Stone & Co.,

25 Broad

Huntington

day

Sept. 26, 1958

Packard Bell Electronics

investment procedure

Over-the-Counter index—Folder showing an

Stock

field

nual

Valley Country Club.

Industries—Analysis in current issue of
— Nomura
Securities Co., Ltd., 61
Broadway, New York 6, N. Y. Also in the same Digest is an
analysis of the current Japanese economic situation.
Oglcsby Norton Co.—Memorandum—Fulton, Reid & Co., Union
Commerce Building, Cleveland 14, Ohio.
Pacific Gas & Electric Company — Analysis — Reynolds & Co.,
120 Broadway, New York 5, N. Y. Also available is an an¬
alysis of General Contract Corporation.
Pacific Uranium—Report—Singer, Bean & Mackie, Inc., 40
Exchange Place, New York 5, N. Y.
Also available is a

—

Nov. 10, 1958

study of

SECURITY TRADERS ASSOCIATION OF NEW YORK
The

Security Traders

Association of

New York

announces

Firm Trading Markets in-

On Nov.

Restaurant.
(Mimf

1958

30-Dec.

Nov.

Beach, Fla.)
Investment Bankers

Association

annual

convention

America

Hotel.

at the Americana

10, 1958 the Annual Beefsteak Party will be held at

the Antlers Restaurant.
On Dec. 5,

(a) Operating Utilities

1958 STANY will hold its annual meeting at the
a free cocktail party.

Bankers Club for election of officers and

Joins Paine,

(b) Natural Gas Companies

MAILING LISTS

Transmission, Production

w
J

& Distribution*

that
t

have

developed a unique
compiling mailing lists
completely eliminates waste-

method

ful duplication.

Call Dunhill to¬

for full details, as America's
leading mail advertisers have been
doing for over 25 years.

Members New York

Security Dealers Association

LOS

ANGELES,
has

Rudd

7rTo

Calif.—Alvin

become

RETURN

affiliated

day

FREE:

Webber

(Special to The Financial Chronicle)

with

Webber,

Paine,

Curtis,

626

Mr. Rudd

Jackson

South Spring

was

Street,

previously with J.

Guardian Consumer Finance
FOR

now

PROFIT

INCOME,

sheltered

growth

your

copy

stock.

•

Logan & Co.

of our 1959

'^n'-oioer.

dunhill

With M. J. Ross

INTERNATIONAL LIST CO., INC.

•

Operating In small loan

•

Reserve

•

Dividends

offiees

since

Memorandum

field.

states.
194rj.

request

("Special to The Financial Chronicle)

Trinity Place, New York 6, N. Y.

HAnover 2-2480

Teletype NY 1-376-377-378

N. Y.

16s

Dunhill Bldg., 444 4th Ave.

MU 6-3700

•

LOS

TWX—NY 1-3135
nard

CHICAGO

DE 2-0580

E. Washington Street
•
TWX—CG 3402

Ross

J.
&

ANGELES,
Fund
Co.

Boulevard.

Calif. —Ber¬

now

Inc.,

with M. J.

6505

Beefsteak

Annual

Party at the Antlers

Glee Club and

about the week of Sept. 10.

season

York

New

Bowling League will start their
'
"i. ■ ;
The first social affair will be the fourth annual Cocktail Party
and Dinner Dance to be held at the Hotel Pierre, on Saturday,
Oct. 25. Price will be the same $30 per couple, all monies to be
expended—no profit to STANY. Reservations are limited and
should be made at an early date.
The STANY

Fall

(New York City)

Security Traders Association

the second half of the year's activities.

Troster, Singer & Co.

Sept. 19, 1958 (Philadelphia, Pa.)
Bond Club of Philadelphia an¬

Nippon Gas Chemical

Samuel Montague & Co., Ltd.,
144 Old Broad Street, London E. C. 2, England.
Inflation and the Infant Recovery — Review — C. F. Childs &
Company, 1 Wall Street, New York 5, N. Y.
Japanese Corporations — Analysis of financial statements of
leading corporations — Comparative statistical tabulation —
The Daiwa Securities Co., Ltd., 8, 2-ehome Otcmaehi, CJiiForeign Exchanges

City Club: field day Friday
Maketewah Country Club.

Russell & Co., Inc.,
Union Commerce Building, Cleveland 14, Ohio.
Monterey- Oil Company — Analysis — Dean Witter & Co., 45
Montgomery Street, San Francisco 6, Calif. Also available is
a report
on Pacific Finance Corporation.
New York, Chicago & St. Louis Railroad — Memorandum —
Shearson, Hammill & Co., 14 Wall Street, New York 5, N. Y.
Also available is a memorandum on Sanders Associates.

Casualty

Robert H.

Exchange

Place, New York 5, N. Y.
Rubber Co. — Circular—J. N.

P. McDermott & Co.,

Municipal Bond Dealers Group
annual outing — cocktail and
dinner party Thursday at Queen

Mohawk

panies—Montgomery, Scott & Co., 120 Broadway, New York
5, N.-Y.
Conservative Switch from stocks to bonds—Suggestions—Peter
Fire

Ohio)

Drydock—Analysis—du Pont, Hom-

sey

Letter.

(Cincinnati,

Sept. 18-19, 1958

Corp.

Colonia, N.

Country Club,

Also in the same circular are data on Borg

& Company, 31 Milk Street, Boston 9, Mass.
Mercast Corp. — Circular — Hanson & Hanson,, 40

investment letter — Burnham and
Company, 15 Broad Street, New York 5, N. Y. Also avail¬

sociation 12th annual

4, N. Y.

AVarner

Monthly

able is current Foreign

(New York City)
Corporate Transfer Agents As¬
golf tour¬
nament and outing at Colonia

Sept. 18, 1958

Company Limited, 50 King Street, West,
Toronto, Ont., Canada.
Johns Manville Co.—Data—Purcell & Co., 50 Broadway, New
Weir

Young,

N. J.

Ha worth,

C. Kahn Com¬

1108 16th Street, N. W., Washington 6, D. C.
Interpiovincial Pipe Line Company — Analysis — McLeod,

Maryland Shipbuilding &
—

at the White
Beeches Golf and Country Club,
Tournament

Golf

30s.

Finance—Analysis—John

Fall

Exchange Firms,

Stock

pany,

7, D. C.
*

Consumer

Guardian

Review — Bache & Co., 36
Wall Street, New York 5, N. Y. Also available is a bulletin
on Joy Manufacturing and General Cable,
Air Transport Industry in the Jet Age—Survey—E. F. Hutton
& Company, §1 Broadway, New York 6, N. Y.
Atomic Letter No. 41—Report on possible role of lithium in a
i
thermo-nuclear fusion device, etc.—Atomic Development
Mutual Fund Inc., 1033 30th Street, N. W., Washington
View

Sept. 18. 1958 (New York City)
Cashier's Division, Association

Wall Street, New York 5, N. Y.
Also in the same bulletin are a list of 42 selected issues
which are candidates for stock dividends or splits, and a list
Francis I. du Pont & Co., 1

understood that the firms mentioned will be pleased
to send interested parties the following literature:

It is

Burnliam

investment Field

N. Y. Also in the same circular is a brief analy¬
sis of Paramount Pictures.
Gimbel Brothers — Brief review — In "Current Comments" —
New York 4,

Recommendations & Literature
Agricultural Equipment Makers

EVENTS

Wilshire

JOHN C. KAHN CO.
1108-16th St.,

N.VL

Washington, D. C.

Volume

188

Number 5778

The Commercial and Financial Chronicle

(1109)

Loeb mi Robinson

Quizzed

Outlook

ton,

Norman

Stabler, A. Wilfred May, Murray
George Bookman,
comprised panel which queried E.

son

Dobbrow

& Vance,

counsel,

Inc., in¬
that

announce

have

become

vice

presidents

Mr.

Zenzie

was

the Hartford Trust

done

research

velopment

moderator.

Trust

formerly with
Company, the

New York State

Banking Depart¬
Savings Banks Trust

ment, and
Company. While executive vice,
president and director of the lat¬
ter

formerly with
Company, se¬

curity analyst with Burns Bros.
& Denton, Ltd., Toronto, and. has

their stock market views. Douglas

Irving

was

Opens Inv. Office

institution, he
portfolio.

managed

its

FIF Dist. of Hawaii

(Special to Tire Financial Chronicle)
'

GRAND

HONOLULU, Hawaii—FIF Dis¬

Colo!—

JUNCTION,

Jane I. Ferrell is
engaging in a
curities business from offices
444 Main Street. She was

tributors of Hawaii has been
formed with offices at 947 Keeaumoku Street to engage in a secu¬

se¬

formerly

with

King Merritt & Co.

rities business.

and Fer¬

for

private

He is

company.

de¬

vice

Earl T. Carr Opens
engaging in

securities

P. W. Brooks Branches

Jerry Thomas Branch

P. W.

BOYNTON BEACH,
Fla.—Jerry

METAIRIE, La.—Earl T. Carr is
business

from offices at 4936 Veterans Me¬
morial Highway.

Thomas & Co. Inc., has
opened a
branch office at 418 Federal
High¬
way under the direction of O.

Brooks

nue,

was

nent

made

members

by two

the

lawn

Tergesen.

Avenue,

and 744 Broad

Auburne,

Exempt from Federal, State and Local Taxation*

Acceptable at

Security for Public Deposits and Eligible to

par as

secure

Deposits of Postal Savings Funds
•i

New Issue

$9,000,000
G.

Loeb

Dwight Robinson, Jr.

investment field who also agreed
on
the prospect of
higher stock
prices

decade from

Gerald

Loeb, Partoer in E.

Huttonv& Company, and
Dwight Robinson, Jr., Chairof

the

Board

5%, 4% and 3.90% Public Improvement Bonds

=E
=EB

now.

F«

man

Commonwealth of Puerto Rico

General obligations, for the payment of
which, both principal and interest, the
good faith and taxing power of the Commonwealth of Puerto Rico are pledged.

==E

Trustees,
Trust,

SEE

spoke at the opening fall luncheon

SEE

Massachusetts

Investors

of the New York Sales
Executives
club
on
Sept.
16.
They were

queried

panel

financial

eee

•

the

current

that,

risen.

barring

Mr.

Loeb

unexpected

shall be exempt

political
other

was

heights to which

has

Exemption from Federal, State and Local Taxes. The following is
(Title 48, Chapter 4, Section 745):

jj|||

Stock Rise Spotlighted

market

==E

SEE

moderator.

The spotlight of interest

the

felt'

hews, the market could go higher

essentially discounting

expectation of greater inflation

"definite

According to
rise

reflects

from

£ •'

that

and

Cm
E=

selling

basis

values."

difficult

find

the

"traditional

•':[

any

'■

J
Yields

$300,000

1959

2.00%

425,000

1967

3.60%

1960

2.40

425,000

1968

3.70

325,000

1961

2.70

450,000

1969

3.75

350,000

1962

3.00

475,000

1970

3.90

3.80

350,000

1963

3.15

475,000

1971

3.90

100

to Yield

Amount

Due

Coupons

Price

good

MOM

*—i

375,000

1964

3.25

1,575,000

1972-74

400,060

1965

3.40

1,125,000

1975-76

400,000

1966

3.50

1,225,000

1977-78

i
s

E
E

;

100

4.05
4.10

(Accrued interest to be added)

EE
jS

.7 7: 7' '

ESS

measurare

by the District of Columbia."

Price*

irtg sticks" in the market

county, municipality, or.

any

Mr. Loeb maintained that

possession of the United States,

Ceupont

EE
E

stocks

high in relation to earnings

"it

some

historical

Due

Mr. Robertson's appraisal

possession,

325,000

appear

Amount

SEE

was

e=e

stocks."

State, Territory,

AMOUNTS, MATURITIES, COUPONS AND YIELDS OR PRICE

|e|

of the upturn
the effect of the

refrain

any

•

capital gains tax in causing many
investors

any

.•

by its authority,

eee

evidence
and

^iiiiiiiiiiiiifitiiiiHftiiitifiiiitiitiiiiiiiiiiiiiiiifiiiiitiiiiiiiiiiiiiiiiiiHiiiiiiimfifiifiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiftiiiiiiiiiiiiiiiiiiiiiiiiuiiiiiiiiiii.;
£J

business,

excerpt from the United States Code Annotated

and all bonds issued by the Government of Puerto Rico,

from taxation by the Government of the United States,.or by the Government of Puerto Rico,

SEE

Mr.

SEE

earnings.
Robinson, the

municipal subdivision thereof,

municipal subdivision of

—

SEE

and better

||e
|=

world

since it is

•'

May, "Commercial & Finan- 7V
dial
Chronicle"; C. Norman Stabler, New York "Herald Tribune."

;

shown below. Principal and semi-annual interest (January 1 and July 1). payable at The First

or at the office of the Government
Development Bank for Puerto Rico, San Juan, Puerto Rico.
Coupon Bonds in denomination of $1,000, registerable as to principal only or as to both
principal
i
and interest. Fully registered Bonds are reconvertible into
Coupon Bonds.
7' 7

==§

fred

City Bank of New York

•

comprising George Bookman, "Time" magazine;
Murray J.
Rossant, "Business Week"; A. Wil-

July 1, 1958. Due July 1,
National

writers

Douglas Leigh acted

Dated

often

used rather

loosely. He stated that
psychological factors have
great bearing on the price of

earnings.

July 1, 1970, subject to redemption, in whole or in part in inverse
order of their numbers, on any interest date not earlier than July 1, 1970 at par
and accrued interest plus a premium of 3/t of 1% for each twelve months' period
or fraction thereof between the date fixed for redemption and the stated maturity.

stocks regardless of the company's

Bonds maturing after

j—

SEE

current
a

•E

eee

—

^'*4|||||||||||||||||lllllllllllllillllllllllllllllllllllll!IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIinil!IIIIIIIIIIIIIHIIIIIIIIIIIIIIIlllllllllllllllIIIIIIIIIIIIIIIIIIIIII1llll,':r
•

.
■

The above Bonds

Westheimer Co. Opens
Office in Chicago

members

Stock

the

New

Exchange, have

branch

office

Salle

Street

ment

Fishman

134

under

Seymour

South

the

The First National City

after

appearance

of this advertisement, for delivery

and subject to the approval of legality by the Secretary of Justice of the
Mitchell, Pershing, Shetter/y & Mitchell, Attorneys, New York City.

Bank

Chemical Corn Exchange Bank

The First Boston Corporation

Fishman.

Mr.

■*

C. J. Devine I Co.

B. i. Van Ingen

t Co. Inc.

Mercantile Trust Company

Banco Popular de Puerto Rico

f==
==

Lee

Higginson Corporation

A. C. Allyn and Company

C. F. Childs and

F. S. Smithers & Co.

Incorporated

Braun, Bosworth t Co.

Dreyfus & Co. to

Admit Two Partners
Co.,

Broadway,

SEE

York City, members of the

Bacon, Whipple & Co.

York

Exchange,

will

admit Howard Stein and Leonard

Digitized forSegal to partnership on
FRASER

Oct. 1.

Seasongood & Mayer
September 18, 1958.

™,

Goedbedy & Co..

F. Brittain

Kennedy & Co.

Lyons & Shafto

Julien Collins & Company

Incorporated

New

Andrews & Wells, Inc.

Incorporated

New |

Stock

Kean, Taylor & Co.

Company

Incorporated

Lehman Brothers

•f New York

manage-

office.

1 EE

was

Dreyfus

offered, subject to prior sale before

formerly Vice-PresIdent of Henry Montor & Assodates, in charge of their Chicago

are

and if issued and received by

Commonwealth of Puerto Rico and Messrs.

York

opened

CHICAGO, 111. —Westheimer & / "
Co.,

when,

Provident Savings Bank & Trust Company

Park, Ryan, Inc.

Lake Ave¬

Maine;

St., Newark, N. J.

promi¬

securities

Co., Inc., has

Bridgeport, Conn.; 76 Wood-

accompaning erosion of the

dollar

opened offices at 231

A prediction of further inflation
and its

Jack N. Matsuzaki

principal.

rell & Ferrell.

securities

of their firm.

F. Hutton partner and Massachu¬
setts Investors Trust chairman on

the

Henry Zenzie and Albert O. John¬

J. Rossant and

Leigh served

.Mr. Johnson

Templeton, Dobbrow

vestment

writers

e-T empleton

Growth Fund of Canada.

ENtJLEWOOD, N. J.—Temple-

For Stock Market
Financial

president of A

Zonzie& Johnson V.-Ps.

Janney, Dulles t Battles, Inc.

The Comrhercial and
10

Financial Chronicle

Thursday, September 18,1958

(1110;

combined

are

Chemical Company Growth

W. R. Grace &

Director and

Company, New York

City

and

find

(2)

(2) Growth of per share earnjngS.

•

Shinagel carefully explain the im¬
portance of "long range planning" to chemical companies and
how it differs from bu! provides the basis for financial fore¬
casting and budgeting. The authors enumerate the steps in
long range planning and the distinctive features of strength
in growing chemical companies; point out the value to top
management and to operating management; and in discussing
the corporate goal of benefits to the stockholders show that
though growth does not insure profits it does make it easier
Copulsky

Messrs.

profit and depreciation from existing investments. Tangible measures determining achievement of
stockholder benefits, in terms of
dividends- and stock price, are: ;
(1) Profit on investment,

Potential customers must be found,
^persuaded, shown. Costs are High;
the risks diversified or cumula- the small money-saving tricks of
tive?
'
"the trade take time to learn.
Evalating
the Company. The ,• In classical economics, scarcity
evaluation of the company as it* of goods was presupposed. As deexists, should be based on the mand ?. increased,
marginal - rethree
cornerstones
of
growth,: sources • and methods,, would be

FRED SHINAGEL
Financial Analyst,
Research and Development Division

Respectively, of Grace

(1)

company

marketwise, (3) in respect to the business cycle? II. Are

WILLIAM COPULSKY and

Commercial Research

the

cally,

Requires Policy Planning
By DR.

livery,.punctual. Until occasional profitability - of invested funds
customers can be turned into reg- available from retained earnings,'
technologi- ular customers, each sale is work, depreciation, anddebt; and by

combined businesses

risks for the

used, resulting in

profit, and stability.
company

"fiplrts'J"
'fields?"

answpr

what

may

in the right
the question
the ouestion

- -

established

its

The

planning for chemi¬ response to internal and external
influences.
cal company growth differs sub¬
This look at the future of the
stantially from financial forecast¬
ing.
It is more concerned with corporation combines two inter¬
Long range

distinctive status as a sprmgboa

xrf\

vrr\c*

ftirA

"hnoin^

affertUsti?"'is'-profit WofirieadsHo

Is the company

condition

orbfi?

t.ecegsa'rily

emnha

This modem condition empnasizes the chemical industry's need
related aspects:
to
proceed
with new projects for the services of < market and
(1) Where does the company
through (1) research, (2) acqui- laboratory research; .to..convert
want to go? This sets goals and
sitions, (3) purchase of processes luxuries to necessities. ;
disinvest? organize/;,.

—invest/

Oper¬

v*s

allows increased output at
costs and potentially lower
manpower,
and
other prices.- Broadening markets^thus
How
can
the company becomes an attractive goal, bene-1
goals using its present Hitting producer and
consumer

achieve

goal of benefits to stockholders in-

goals satisfactory? mand
they achievable in terms of lower

assets?

Directive

fields?
'v.V;V"

less?

capital,

Prime

ating Management. The corporate

Are company
Are

research

program

into more

the company go

profits.

r
Effectiveness

(3)

problem.

higher costs, and

prices would rise until demand
Tn answer
stopped incieasing, and... new
a
To
,
"fields" the company is equilibrium
reached at higher
itself be a substantial pnees.
i
:"' V*
"
,
Is the company properly ;
But in the modern chemical en-

the

largely influenced by the

standard, the price right, and de- will be

allow a look at
the overall

the whole: I. What are

well established

's„|5allv

lead to more
exOTessed in return

tribution

of operating manage-/
cornoratc

S
^ £J™on thd^ other

5nal

fon'

should

hand

con!!

objectives.
(2)
there?

How will the company get
This is the plan and pro¬

bLk^a^ dXgration^^o^s the
™™h^Tgo^ procedure

Value of Lons Rangre planni"S
Long range planning will be of
value- to two management groups

dividends and increase the valua«on of the ^hhlders?«,uity.j
Why Growth Fields.; Are■ 'Iin-

projwith' which may be called top manage- portant. If profit is the governing,
of
long range planners is vision. This proper relation of return criteria ment and operating management, measure
Value to Top Management. Top }vby are growth fields so impormeans
an
awareness
of a com¬ to risk? for presentation to, and
obtaining
approval of manage- management, in its entrepreneur- lant .^°
x company in establish¬
pany's weaknesses and strengths,
•
• ial
role, executes company-wide
its future direction. Growth
backed by courage, intuition, ex¬ ment?
Lastly—since a company con- responsibilities and has little con- aoes n^t insure profit.
OS
perience,
technical skills, and
knowledge of the world's eco¬ sists of "businesses" and "fields,"-tact with - day-to-day- operating more X'losely related to risk.- Btttnomic, political, and social trends. how can the total be made greater problems. Consequently, top man- £i'owth fields do otter (1) more
agement's interest stresses the fu- opportunities for new . ventures
Obviously, this is not a one man than the sum of the parts?
ture developments of the chemical anc* expansion; (2) _ less competi-/
job, nor is it a job for operating

gram.

system for finding new
for evaluating
them

and

foremost

The

prerequisite

ects?

good management;
Profit

'Jr. Wm. CopinsKy

bred

Shinagel

fulfilling company
A Strong Company
v.:.
V industry, to which they are com- tive pressures. Profit
goals by establishing growth pol¬ management alone. Rather, the
The
distinctive
features
of Emitted over the long term, and are not derived from
icy and desirable corporate struc¬ function is best filled by expert
in
growing
chemical >where major growth oportunities are
areas.^
staff help coupled with the com¬ strength
tures.
>
may.lie*. They also want.to know
The Management's Corporate
bined
experience of those inti¬ companies are:
A policy serves as a guide for
(1) Capital investment at maxi-i both qualitatively and quantita- Image.
management action. The best pol¬ mately familiar with day-to-clay
tively, if possible, where risks and their own
icies are derived from the experi¬ operations, and those involved in mum efficiency.
broader long-term corporate re¬
Action*
hncPri
nn
nniicieir?deiays potentially exist. Will there future'of the company may
ence of decisions made in day-to¬
sponsibilities.
day operations. Thus each decision
designed to strengthen the bust- be
by
technological
or ■ economic image of the future that reflects
contributes to policy. Policies can
Steps in Long Range Planning
be completely; informal or highly
7o\ U V* of a
*
a
' % ^ changes? How does the existing
(3) Creation
demand constant c0mpany rate as a springboard to and fears of management. A manKnowledge oj the Indus try. The
formalized, but well defined pol¬
pro- the future? What criteria of per- agement with optimistic ideas, has
chemical industry is the frame¬ enough to permit planned
icies are necessary to set well de¬
duction at profitable prices.
formance with respect to profita- more chance to grow and prosper
work within which the company
fined
management
guides
and
and its divisions operate. The in¬
(4) Ability to increase produc- bility and growth etc., should be than one of hesitant
goals.
.
'■
applied?
What alternatives are ing of the future helps create
dustry has to be defined in tech¬ tion at lower costs.
Policy making is not decision
nological
and
economic
terms
(5) Continuity of operation.
open for the future, what are the
making. Planners cannot usurp

defining

and

opportunities
growth, but

easier to find in growth

Management- must have
corporate image. The
.be de-

^^-^asureiby She;

unique opportunities created

the dreams, doubts, aspirations,

faith.Think-

the

decision-making functions of

management. Policies only, set the
goals

guides

and

against

which

management bases its decisions.

rather than in terms

conventional
are

of arbitrary

definitions

such

used in the Census.

Each

of the industry
light of the
characteristics of the

segment

must be studied in the

Policies, however, do not elim¬
carefully ex¬

economic

Thp

chief

concern

enter-

risks, and what are the

management's corporate image of

capital and the future. Belief in possibility

other requirements for such al- attainment is vital before effec-.
teinatives. Whatpolicies ^should tive action based on guides and
be implemented in considering goals can be taken,
long-range policies, rather than ; new projects, acquisitions, etc.?
opportunism and profit maximiza-,
Also, the growth plan: and ob- Ra€|a|| pjll^DCidl

sCrvfve,

prise is to
secondly Hostrengthen its trade position. Actions are nrimarilv
governed b\r

whole industry,
as
well as the
tion. Overhead expenses are high., jectives of the company
aid in
individually all new proj¬ overall national economy.
Companies must plan to survive capital financing by furnishing
ects as to their specific economic
The key problem is how and
market and other changes—tech-?-, basic.- information desired by poand technological merits as well as! where the industry is growing—
nical, economic, social, and .po- tential investors. ,
.
; . ; '/•••/
• BOSTON, Mass."—The
their fit into the overall growth which growth fields are attractive
litical.
:
>/
'
'
-;
4
Value to Operating Management, tion of Boston Financial
for
expansion—and
how
such
plan.
Prices are -chiefly
set to (1) The main contribution for operatgrowth fields are subject to (1)
Long Range Planning Differs
willf be the
technological change, (2) competi¬ capture expanding markets "(2) ing v management
From Budgeting
cover costs during depressed busi-.-knowledge
of how parts :of the
tive pressure, (3) business cycle.
ness periods, (3) meet or forestall
company fit together in the pres- A budget is a financial device
Knowledge of the Business of
competition.
.
ent and future. Also, operating persons engaged
to control capital expenditures to
the Company. Basic information
the restrictions of capital avail¬
Competitive position, however, management
on
on
the businesses of a company
ability. Of necessity, the budget must be collected and studied. In is not determined by price alone, what policies are
incombines realistic sales and profit
but eauallv hv the building un of troduced,: and what decisions are
is
aggregate product groups, simi¬
objectives and provides standards larity of commercial risks should good will and repetitive demand, "kely to be
top managefor measuring operating success.
to serve with increasing efficiency ment which will affect company
be the guiding criterion. A de¬

inate the necessity to
amine

p££#|'|fiffcl| AceAAIAlAC
.llWwtlllill H9vUvl(llv9 •
organiza-?
Research
Associates is announced by Vic-,
tor G. Dugal of LB. Maguire-&

Planning should be the founda¬
of the budget by providing

tion

the operating
mands

basic

strengths

and

weaknesses of the business is very

essential—this includes

inven¬

the

tory of special skills available,
Upon completing the detailed

of the company, and its

analysis, the parts of \the picture

standards.
an

business

objectives, goals, and

scription

Effective planning de¬

understanding

Co.,.Inc.-newly-elected presidents
Membership is comprised./of
in financial anwill be. informed
alvsis and security appraisal, in
likely :to: be
the Boston area. Purpose of the
Associates to further the knowlmade by
edge of its members in over-thecounter and certain listed securiever-widening
of
operations....Moreover, operating ties primarily for the benefit of
tomers
management will have. a better broker-dealers and their clients;
need assured raw idea^of,what?they can contribute promotion of a.highi standard™Qf
materials, access to complete serv-to the whole; what, standards of professional
financial analysis,
ices such
research and legal ad>- performance, will control them; anid the exchange, of ideas and
vice, trade connections and a*rep- and. what. basic,.objective/,should discussion of mutual pioblems.
utation that will attract and hold guide them.
v
Other officers elected are: «Richcustomers. The number and imrnmnanv Goal
m'd L. Shea of Schirmer, Atherton
nortance of these trade advantages
'A
.vhemical Company ooai
& Co and Ellsworth Abercrombie
determine
and growthf
- The basic corporate goal is to Gf Burgess & Leith, Vice-Presieroun

eus-

businessmen

LOOKING FOR THE UNUSUAL

Commercial & Financial Chronicles, 1920-1945

success

The
tion

Beautifully Bound Set of

indispensability of reputamost evident when. it/is

are

^stockholders. These benefits a

tw®. P^ncipal forms: income
difficult and cumbersome. Every through dividends and appreciaproduct starts from scratch. t]Oh~ in mveistment value as reIt
to take twice as long and f^cted in he stock price.
cost twice as much as anyone ever
stock
11 ls, ^
thought to launch a new product, flection of the future value of
Oualitv must be nroven and nor- earnings as viewed by the invesfcr^ancS demonstrated New- tor and modified by external facproducts
show
defects in use." tors which can be summed up as
When corrected, persuading con- "market climate.
is
long, hard job. Trade
Tangible Factors Shaping Goal

lacking.

All transactions become

new

seems

FOR SALE
Available in New York City—Write or

sumers

connections

Phone REctor 2-9570

Edwin L. Beck

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

have

be built

up.

Results.

The stock price

will be
by the

•^c^ormac^

J. H. Goddard & Co., Inc., Treasurer; Chenery_ Salmon of Coffin
& Burr Inc., Secretary Governors including the officers are:

Richard E. Murray of May &-GanS<onQ tJv'
c
i1 n
F S Moseley & Co; Paul iD.
Sheeline of Paul D. Sheelme &
Co ; and James H. Odell of Chaee,

Whiteside & Wmslow, Inc.

bk^lre Adds to otatt

(Special to The Financial

Chronicle)

of especially
influenced
BERKELEY, Calif. David S.
profitable and pleasant dealings growth in per share earnings and Rohl hag been' added to the staff
before orders can be placed over the ratio of stock price to per
PnmnQionQQ
the phone with confidence 5 that share earnings. Per share earnings
r
quality of goods will be up to and growth in per share earnings graph Avenue.

Often

these

take

many

years

P y»

Volume

188

Number

5778

The Commercial and Financial Chronicle

...

(1111)

Whitehead to Conduct
Course at Hunter
Dr.
of

Davison, Director
College School of
Studies, has announced

that Louis H. Whitehead will
*'

duct the

Washington

Hunter

Ahead

there,

meet

the

occurs

unforeseen

one

New

week

for

ses-

staunchly

expected

likely

a c ul.t y.v.o f
Syracuse Uni¬

make

versity, and

r In

.lecturer
the

•

for

ator

body

are

Investment

members

the

Advisers
New

and

American Stock Exchanges.
Mr. " Whitehead has had

investment. research1;ahd' advisory
work and is in charge of his firm's
counse 1

ment.

Wharton

•

the

of ' Finance

the

Pennsylvania.

depart¬

graduate

School

Commerce

ing

University

Since

Whitehead has been

1942

Stock

York

Economics

and

•;:.///

Continued

of the

the

last

Bargeron

two

states

The

have

any

the

threatened.

are

Sena¬

tor Thye in Minnesota,
Senator
Malone in Nevada; in Washington

the

most

Democrats
of

the

state

gives

the Republicans so
trouble.
This gives them

opportunity to build

their

working at for
Even with Eisenhower

six years.

Democratic

tide.

to, lose

Thus

and

for

the off

1956

year

lost

1954

although

endorsed by him seem to be mak¬

It is

the

last-Congress there

ing

seats in the House.

lop-sided

Republican side.

who

their

owed

Republicans

seat

been

are

done

House

crusade

Pennsylvania, and in New

canism"

has

true in

five

District

Eco¬

are

seats.

This

Attorney Hogan is

the

been

he may not

hasn't

for

They

have

may

been

President.

by Senator Bill Jenin danger of losing

vacated

York

onto

done

four

Even the

hold

but

Republican

the

ner/

1936,

un¬

Eisenhower

having difficulty in implementing
campaign

himself.

paradox that candidates

good President

Indiana the

their

landslide

MATEO

I his announcemen t is
neither

page

offices

Real

2000

engage

business.

Officers

are

Camino

securities

E. Ransom

Fox, President and Emmet J.
Cashin, Jr., Vice-President. Arthur
B.

Dublin is

also

associated with

the firm.

Form Henry Associates
(Special to The Financial Chronicle)

HIALEAH, Fla. —Henry & As¬
sociates, Inc., has been formed
with offices at

Flamingo Plaza

to engage in a securities
business.
Officers are F. C. Ewing, Presi¬

dent; H. Milander, Vice-President;
Robert

and A. B.

Maxwell,

Secretary;

Plassey, Secretary.

good

hasn't

anything to help the morale

Republican
many

field

workers.

has

things, to hurt it.

Webster
has

been

Securities
formed

at 37 Wall

reason

additional

believe

His

"modern
left

the

listless.

Republi¬

workers

They

into

offices

Officers
ident

are

and

Finkel,

Irving Kastner, Pres¬

Treasure r;

Vice-President;

Inslicht, Secretary.

offer to sell nor a solicitation of an
offer to buy any of these Deben tu
The offer is made
only by the Prospectus.
•

expansion

$200,000,000

will

formed

through

after

come

company

the

Morris

and

Fay
' '

res•

Standard
Oil

operating

(an Indiana
corporation),

4'h%

Ireland,

second
generation of, Ireland's in the ag¬
gregate field. The family is ex¬
tremely
well. regarded and
as
demonstration ; of

Mr.

service

Dated October 1,1%S

Due October 1, 1983

1 in

Chicago

in New York City

from

company's,. as it
"constituted,/. earnings

then

Were

increased 40% each year for

It is

the

was

10 years.

1Interest payable April 1. and October

•;

■

Debentures, due October1, 1983

Ireland's

capabilities, after his.return
the

newly

management of Vulcan is headed

Charles

ac¬

efficiently as its very capable
management feels it should. The
by

'■ y

that

quisitions and mergers are in the
offing; however, in all probability
this

•

Price 99% and Accrued Interest

V.'.V,/v

little difficult to analyze
the financial position of the com¬
a

from

pany

comparative

stand¬

point because of different ac-.
counting practices and fiscal years
before

consolidation.

The

Copies of the Prospectus may be obtained in any State
from only such of the
/
undersigned as may legally offer these Deben tures in
compliance

per

earnings based on present
capitalization
for
the
past
six'
years is as follows:
1957

with the securities laws
of such State.

.92

1956

1.31

,1955*

1.05

1954

.80

i—

1953

•_

,1952

.56

road

MORGAN STANLEY & CO.

■

KUHN.LOEB & CO.
BE YTH &

•

;

THE FIRST BOSTON CORPORA TION

CO., INC.

DREXEL & CO.

GOLDMAN, SACHS & CO.
.....

this year
annum.

was

from $0.40 to $0.50

GLORE, FORGAN&CO.

EASTMAN DILLON, UNION SECURITIES &
CO.

per '

considered

speculation

its

destiny
toward

seems

SMITH, BARNEY & CO.

16) whose
be- pointed

,to

leadership in

country's

real

aggregates J
materials.

*•

one

.•

Incorporated

KIDDER, PEABODY & CO.

LEHMAN BROTHERS

industries
"construction

SALOMON BROS. & HUTZLER

STONE & WEBSTER SECURITIES CORPORATION
/

DEAN WITTER & CO.

.
•

September 18, 1958:' *
*

•
v

*
'

:
'

^
'

"
.

WHITE, WELD & CO.

the

growth
a n

7 *

MERRILL LYNCH, PIERCE, FENNER & SMITH

of
in¬

be
well
rewarded
in
VULCAN
MATERIALS COMPANY (traded

*■

„

LAZARD FRERES & CO.

fancy, the patient investor should

the

although it

somewhat

because

HARRIMAN RIPLEY & CO.

✓

increased 25%

In summation I feel

©n

■

dividend rate

-building program) or ap¬
proximately $1.15 per share. The

must

•
.

Management* has estimated a,
25% increase in earnings for 1953
(which, by the way will include
very little from the stepped up

•

.53

——4

...

•"

;
.

•

Street, New York City

to engage in a securities business.

7777' J;#/:'

Corporation

with

'.■r

There is

Webster Securities Opens

havte

Security

I Lihe Best

Carskadon, Inc. has been formed
with

The

Calif. —Fox

like it.

organized labor. You
imagine what the score will

That body will

that

members

better showing this year. I
have never seen a situation
quite

were

be next, year.
.

the

that

dis¬ state machines and this they have
-been
assiduously

election to

fact

much

Con¬

Congress for only two.

165

(Special to The Financial Chronicle)

SAN

captured

houses

were

Republicans, out of office

Form Fox & Carskadon

ship, though.

winning

that Roose¬

tenuous.

have

chance out in

even

7
Sherman

can

Senator
to

without jobs don't yet see
it,
the situation in the Far East
makes
the
peace
issue
rather
and

In Ohio the Democrats
expected to win the governor¬

are

doesn't

two

' "

kins

bright

and

believed

omists may agree that the
depres¬
is over but the millions who

are

Arizona.

the people are
their
legislative
should take it out on

velt did not carry in his sweep of
1936. Even in Utah, Senator Watis

two

return

campaign with their two sus¬
taining issues all shot to pieces—
peace and prosperity., The econ¬

Affecting In¬
^

■

from

courses

Current

nomic Developments
vestments.

Re¬

Exchange Insti¬ Democrats will have to be seated

tute, where he conducted

this

sion

one

Carlisle

publican state,
one

up¬

20 years,1 have been back six and
of that six
they have had control

Republicans have not put up
a candidate.
The Democrats, it is
of
estimated, will pick up at least 40

the faculty of the New York -In¬
stitute of Finance, successor- to the

New

"the

rock-

Mr.

member

-stop

left in this

hitherto

ribbed
more

than thirty years of experience in

investment

Republican

and

York

<■winning so-handily in 1952, he
The chances are that
didn't make an
appreciable dent
in the Democratic
Adams Will go but there is
really
strength in the
no "need
states.
for him to
He
do
so. ^It
barely succeeded in
doesn't seem- that
anything can electing a Congress that year, only

congressman

York,

leader

hardly

The Democrats

they

\them.

one

Banking, Mr. Whitehead is a.part¬
ner
of Nye & Whitehead, New

Republican

to- lead.

sense.

gresses

sen¬

and

state

satisfied/with
•

Re¬

one

publican

Maine

only

American

Institute

the

ift -control

the election in

Maine..

Republicans

the

light of recent
primaries and/

-f

Republican

of the Senate but with

•

/ "

than

with a Demo¬
cratic legislature.
"
•
•
Senator Dirksen of Illinois will

during the early

Congressman

there

spots in the picture. In Ohio the
indestructible John W. Bricker is

Iowa is threatened

even

Deal."'.,-

view

Formerly

escapable

member of the

Louis H. Whitehead

This is the in-

sions.

bad

than it was

worse

miracle

Congress-will be

labor controlled

evening
total of 15

are

Goldwater
Unless

will

course

There

in Investments

begin n in g;
Sept. 30. The

defeat

of conservative sentiment in
California the Democrats will win

By CARLISLE BARGERON

course

Unless

surge

of the News

con-

Keating.

From

Edward

the

General

expected

•

The Commercial and

Financial Chronicle

Thursday, September 18,1958

.,.

(1112)

Anachronism

Ail

Do We Need
By

Preferred Depositors?
QUANTIUS
of Finance, Columbus, Ohio

FRANCES W.

Associate Professor

author

both

the

basis

same

On Home Building

any

depositor?. The safety
and liquidity of the government's
deposits were important reasons
for
the
establishment
of the

little justification

sees

ment

other large

discriminatory and anachronic, the
for the present practice of
allowing the Treasury to continue to be a preferred depositor.
Dr. Quantius raises several points showing why banks should
no longer be required to earmark assets for government deposits
it

Describing

the govern¬

harm in placing

any

Investment Advice

would there now be

;) Morevore,

present practice.
as

been

has

there

banking legislation
the achievement

Mr. Babson

Today, however,

is archaic in as

this practice

By ROGER W. BABSON

aimed toward

—or

of the same gen¬

eral objectives by more satisfac¬
and offered the railroad only the
environment amount to which it would have tory means. Then, too, the banks
of preferred deposi¬ been entitled as a unsecured, are in much better condition. In
tors raises several interesting
the Banking Act of 1935 liquidity
general creditor.
has in effect become practically
questions of both logic and equity.
During the proceedings it was
Approximately $19 billion in
synonymous with solvency in the
shown that national bank exam¬
United States' Government secu¬
case
of solvent member banks.
iners had known of this pledge
rities constitute assets pledged by
There is no longer so much stress
of assets before the failure of the
commercial banks against deposits
placed
upon
bank holdings of
owned by the United States Treas- bank and that they had not ad¬ liquid assets, such as government
urv
Department or by state and vised the bank's officers that the securities, since in a crisis the
pledge was beyond their powers. Federal Reserve, after ordinary
local governments.
The railroad held that in any case
channels
have been exhausted,
For years banks designated as
the receiver was not in a position
will temporarily purchase any sat¬
depositaries of public money have to
question the pledge.
isfactory asset of a solvent mem¬
been
required by Federal and
In
rendering its decision, the ber bank, thus providing so called
state laws to give satisfactory se¬
Court held that the ''institutional liquidity."
curity for the safe-keeping and Supreme
measure of the powers of national
A satisfactory asset is any asset
prompt payment of these funds,
banks lies in the statutory grant
the collateral security to
be at
which has received the approval
and that powers not conferred by
least equal to such deposits.
of the examiners.
It is an asset
As
a
result bankers have earmarked Congress are denied. It ruled that that appears to be of intrinsic
unauthorized pledges reduce the
worth with the passing of time
government
securities, govern¬
assets
available to
the general
ment guaranteed securities, and
even
though not marketable at
creditors of the bank and that
other high grade assets on behalf
once without loss through regular
such pledges are inconsistent with
of these preferred depositors. Un¬
banking procedures. Thus a mem¬
der Federal law the approval and many provisions of the National
ber bank must now be actually
Bank Act—provisions which are
valuation of the securities is en¬
insolvent in order to be illiquid
In

couples to build, now, their own single home or two-family
"duplex" house. He suggests the latter for those looking
for a financial boost and explains why this does not involve

recent

today's banking

residential

rent, own your some future time when unemployto build, you are ment may deflate today's high
interested in the building outlook, costs. When or if that time comes,
You are concerned, too, with how however, you may be frightened
Whether you pay

home,

the Federal Reserve
Banks which act under the direc¬
tion of the Secretary of the Treas¬

designed to ensure uniformity in
the treatment of depositors and a

in this matter. The reserve
in. like
manner
control
withdrawal of securites, the sub¬
stitution of other securities, and
ury

banks

the
ties

pledging of additional securi¬
as required by circumstances.
Cities Court
the

Ruling

rul¬
ings our commercial banks lack the
power to secure private deposits
established by court

firmly

One of the

in the same manner.

significant of such cases was
the United States Supreme Court's
decision
in
Texas and
Pacific
most

Pottorff

Railway Company v.

U. S. 245. This case
the First National Bank

291

(1934)

involved
of

September 1931, and S.

Pottorff

was

Texas and Pacific

held

the bank,

Railway Com¬

checking account

$54,646.94. In January 1931 the

bank had

pledged $50,000 in Lib¬

account

erty Bonds to secure the
as

re¬

failure the

long standing customer

pany, a

appointed

At the time of

ceiver.

bank

The

Texas.

Paso,

failed in

stood

that

bonds were held

These

time.

for the railroad

tains

fact, every depositor, large or

small,

least

depositors.

made claim as a preferred

creditor,

hand,

either the bonds or

somewhat

ad¬

not

direction

swing

allow

and

the

opposite

the

both

public

the

proceeds

sale

their

from

should be surrendered to it by

denied the

the

however,

Pottorff,

receiver.

validity of the pledge

its

is neither

and

preferred depositors

private

would have little point.

think this

about

rental

residential

it, you have

good hedge against

much as or more higher costs and taxes. Tor your

was

longer

the

ing,

you

land will cost you.

absentee landlord,
»

•

postpone a on the house will begin directly
the more the after its construction is completed,
Therefore, don't be skimpy about

industry is the lot. Get as much land as you
zooming along in high gear, can and economize on the house!
construction

The
now

business downturn
(2) Consider transportation. Alexpenditures for though it is easy now to buy autos
the first and gas, it may not always be so.
seven months were about the same
Therefore, I advise building where
as
a
year ago. Bolstered by this you are within walking distance
good consumer demand and by to a bus line or shopping center,
the

Despite

earlier this year,

residential

building for

steadily rising wages, construction
and building costs are at an all-

one

Is to be

preferred depositor,

reassurance

to be one means

offer to sell

nor

nothing.

lic

well

are

very

good

should

private.
One final aspect of this subject

the

solicitation of an offer

the

possible effects that
retention of the concept of

depositors

preferred
far

might have

monetary policy is con¬
It

control

time
dex

high (as
covering

appears

not

that if credit

reinforced

with

am not in favor of building—
M. Morlan are partners. Both
buying—residential property to were formerly with B. C. Morton
as an investment. Such
& Co.
property is usually fairly high in
cost and often does not bring in
^
ri
p
,i
o
any very large return. It is exrorm r la. L*ro\Vtil.oecs.

be rented

(special to ths financial chronicle)

pensive to maintain and can turn
out to be a big headache if un-

JACKSONVILLE, Fla.—Florida

employment becomes widespread,
forcing people to "double up."

Growth Securities Inc. has been
formed with offices at 718 Pearl

Street to engage in a securities
business. Officers are J. G. Camp-

rental

steering
residential
units is the tax situation,

Local

taxes

further

clear of

reason

for

investment in
on

heading higher.
sharp advances

real

estate

are

They will make
during the next

bell, President; and Robert Lune,

Vice-President, Secretary and
Treasurer,

fbl=taS^o1teS?eiPeX Marache- Dufflemyre Add 2
to

fully offset this

additional

ex-

(special to the financial chronicle)

Calif.—Mary J.
Lalich have
Marache,

penditure. Also, if war should
LOS ANGELES,
cies, there may be some danger of come, rent controls would be in- Handy and John E.
excessive chaneling of bank funds voked promptly; but there would become connected with
Dofflemyre & Co., 210 West
into the financing of budgetary be no ceiling on taxes!
Seventh Street, members of the
deficits thus further relieving the
Shall I Build a House to Live in?
Pacific
Coast
Stock Exchange.
government of reliance on the
capital markets to raise funds.
if
This situation could also give rise
to a number of familiar problems who require more space, then I & Co.
would advise you to build, or to
associated with past periods in

suitable

(METROPOLITAN NEW YORK), INC.

debt

management

poli¬

especially11 dyountiave°cWldren Both were formerly with. 3. Logan

Common *tnrk
(Par Value $.10 per share)

Price: $1.00 per Share

Proper living accommoWith Samuel B. Franklin
important to health
TMU1
and happiness. So if you need a
" (special to the financial chronicle)
ment securities outstanding.
house now, or a bigger or better
LOS ANGELES, Calif.—Lewis
1
Conclusion
home, I say build or buy it. To Akmakjian is now with Samuel
In conclusion there seems to be delay such a purchase when you B Franklin & Company, 215 West
little
„
^armprlv
justification for the con¬ really need it is to cheat yourself.
tinuance of present practice with There is a chance you may be able Seventh Street.. He was
to build or buy for less money at with J. Logan & Co.
regard to government deposits.

which

large

Offering Circular may be obtained from
undersigned

standing

give added
to all depositors, pub¬

This

indeed.

FRED ASTAIRE DANCE STUDIOS

Underwriter

WILLIS E. B'lRAKinr * CO., INC.

W. Babson

Roger

given land purchase,

highs, and prospects for

mation into banks,

If every¬

299,940 SHARES

may

prices, but the long-term trend is should increase in value from the
for higher prices. Generally speak- day you move in; but depreciation

earnings, due to such fac¬
tors as the introduction of auto¬

cerned.

Broadway, New York 6, H. Y.

Telephone! WHifehalf 3-3460

estate; investments

land in the suburbs
Houses T ersus Land
continues upward in price, as does
There are two other important
"close in" farm land. I am bullish points to remember:
about most land. A severe depres(i) When you build a"house in
sion
could
sometime cut land a good neighborhood, the land

future

NEW ISSUE

the

real

make. You

Meanwhile,

this increased capital prob¬

at record

Copies of the

if you

However, I make the
two-family house an exception. If
you own one of these and live in

especially if zoning laws permit it
to be developed for parking space.

legislation,

bank earnings have been

The offer is made only by the Offering Circular

buy these securities.

and

well

ably

concerns

This announcer/lent

land

understates
the
long-run
profit potentialities in the banking
other profession. In the 1957-1958 period
other it has been noted frequently that

treated

large

that

—

half yourself—is one of

a year ago. Vacant tenant shares the burden with you.
located in relation to Furthermore, your presence1 will
the business centers of most cities ensure, his taking better care of
often commands a premium price, the property than if you were an

than

versely affected when the govern¬
ment

stating

house, - if well
bought under favor¬

railroad

trust

"duplex" house.

property.

now

for

selling

Form Sec. In v. Co.
measured by an in¬
(Special to The Financial Chronicle)
20 leading cities).
when one allows for the fact that Price pressure for most building
MT. VERNON, 111.—Security Inevery other large depositor is that commercial banks have increased
materials will continue generally vestment Company has
been
much less well off, assuming that
their capital accounts over 73% in firm or upward.
formed
with offices at
150114
the government really gains any¬
the years following World War II.
Broadway to engage in a securithing from the present practice. The
average rate of reported prof¬
Sliall I Build as an Investment?
ties business. Bill Morlan and Earl

department.

bank's

the

this

one

best

above

exceptions,
land

conflicts with what I have written

With few

ness.

and

you can

busi¬

general

namely,

At the time of failure the

the

set¬

met

back

we
now
have both deposit and
do those argu¬ loan insurance offered to bankers
ments not apply equally well to¬
by government agencies. In some
day to the government as a pre¬
cases these types of insurance are
ferred depositor?
The fact that
compulsory. Thus to a degree both
many banks do not need to alter
sides of a bank's balance sheet are
their investment plans at present
insured.
The
deposit insurance
in order to meet the requirements
gives limited but quite adequate
of the law is beside the point.
(in some cases 100%) protection
The amount of government secu¬
to
depositors, while loan insur¬
rities which
it is
necessary
to
ance helps the bank
to remain a
pledge as collateral against govgoing concern to the benefit of
erement deposits often does fall
both its owners and its creditors.
within
the
regular
investment
A further factor of strength lies
program of many of the banks.
in bank profit. Profits have been
This does not alter the fact that
making an excellent showing
these assets are earmarked and

above,

cannot

single house,

circumstances

live in

n g

the sharp

Other Arguments

addition

who

two-family

able

during

well

two-l'amily

located

Land values

ama z

couples

their way clear to buying

carrying

The

prospects

for the future.

consequently unable to meet
the demands of its depositors. Not

question raised here per¬
in part to the arguments

The

want to know

have stood

buy.

strongly recommend the purchase

and you

the

see

and

ten years

ago

and

Depositors

time it has been

same

now

those

For

with

those of five

in case of the

•

to build

costs

compare

distribution of the assets
only do the member banks do
failure of the bank.
approximately 85% of the banking
Therefore it is the duty of a re¬
business in this country, but many
ceiver of an insolvent corporation
banks
are
free to
non-member
to move to set aside illegal trans¬
join the Federal Reserve System
actions which reduce the assets
upon application should they de¬
available for the general creditors.
sire this privilege of institutional
liquidity.
Adverse Affect on Other

ratable

plan

such

conflict with his proscription against investing in rental
property.
Places greater importance upon land
than on building structure.

any

the presence

trusted

offers discouraging advice regarding investment

residential property but does encouragingly advise young :

much

our

banks

have

held

too

proportion of the govern¬

buy,

now.

dations

are

N. Yr-Telefype #1-3912
.

Volume 188

Number 5778

The Commercial and Financial Chronicle

(1113)
years

Price and the Pnblic Interest
By ROGER M. BLOUGII*
Chairman of the Board, United

Direct rebuttal is made
and

staffs'

conscious

recent

place

the

those

controlling or dominant factor in price
of finished goods. Fearful that more than a
lapse of memory
or
unwillingness to face the facts is involved, Mr. Blough
warns that sufficient
profits are necessary for a strong economy
and strength in the cold
war, and adds that government control

k,nerica

—

businessman

deeply

dis¬

turbed by the steady post-war up¬

in the prices of both goods

surge

that it is

even

the

has

Last

caused

year,,

launch

that

its

committee

i n g to
the .steel

pre p a r
upon

the

United

Senate carefully picked
economists to come

equally dis¬
turbed by

and

the
head-long in¬
crease

show

caused
was

contributed

inflation.

from

the inflation¬

so-called

"ad¬

the

further

The

experiment
unqualified success

Committee's

point
""yi

Several
Roger M. Blough

spiral. I

disturbed

not

view.

importantly to

before

ministered prices" of business had

in wage

costs which has

ary

how the

States

number

pointed

the

economists

accusing linger at "ad¬

ministered

inflation

wages" and other ris¬

the

that had

not

was

even

wage-cost

belated
the

tail

procession

already passed it by,

Kefauver's Lapse
then

living

after

month

the

drop.

Month

went

down

lowest

level

here

was

until
in

kind

laboratory test, if you will, which
disproved
completely the fairy
tales that the
campaigners keep
telling. The whole story — fully
documented

—

was

presented

evidence to the Senate

Committee,

and the Senior Senator, from Ten¬
nessee, as
was

Chairman of the group,

present and

and

cause

living

labor

in¬

into

tired

our

ears.

They
of

tell

steel

■

will

about

concern

appliances

and

Now

tion

heard the entire

testimony regarding this price
duction.

this

with

braces

tale.

"For

nail, the shoe
could

price

total

the

pins

lost

safety pin is

the

for

the

almost

want

too

that

re¬

use

many

different

of which is

thousands

the

our

must

matter

rise

the

never

or even a

be—

can

dominant

com¬

meet

•

ar¬

■'

j".

this, of course,, is precisely

fact

the

that

Senate

committee

certain

members of

Anti-Monopoly
have

Sub¬
trying so

been

successfully to ignore.
When

one

steel. The fact also is

system

•

And

that when the price of any of
these materials goes up, the manu¬
facturer's costs go up accordingly;

petitive

manu¬

materials,

and that somehow under

effect

controlling,

So let's face up to the facts.

facturers

the

factor in the price of finished
ticles.

And the fact is that in
making
all of the millions of products that

kinds

that it is not—and

in the past

American

truth

any other ma¬
terial—is so insignificant in com¬
parison to the overwhelming im¬
portance of a rise in wage costs,

out,

the
the

price of steel—or of

happy

10 years!

turn

production
employed in the manu¬

were

that

na¬

Index—the price of fasteners—in¬

they

the

materials,

raw

facture of those products.

that—according to

than 14%

in¬

debt,

the Government's Wholesale Price

the

all

and the dividends that
pay for use
of all of the tools of

tion is not yet undone! I
to inform you

this

represent
that were

only

horren¬

be of good cheer. The

would

but would also
pay for the rental
of property, the interest on

to contemplate.

But

three-quarters

basic cost of all the

along the line of pro¬
duction. The remaining quarter or
less
would
cover
not

em¬

want

made

value

curred

lost." And what

was

after

the

steel

companies—•

costly five-week strikereluctantly signed their present

labor
two

agreement
years

ago,

with

the

everyone

union,
knew

that the annual boosts in
employ¬
ment costs provided in that con¬

these higher costs or, go broke.
The fact is further that American

tract

manufacturers have done a mag¬
nificent job of offsetting much of

in what some people call
produc¬

could

sorbed

not

through

possibiy be ab¬
an

improvement

tivity, and could therefore only
"Congressional Record" this higher cost through research, be met by a rise in prices. There
was
no
secret about
shows that only six weeks ago— improved technology and the in¬
consequent Federal deficit which presented an exhaustive
that. You
study of
is a major source of this inflation.
knew it; we knew it; the union
on July 30, to be exact—a member
vestment of vast sums of
the Government's Cost of
money
Living
But most of all, I am disturbed
knew it; the public knew it; and
of the Committee rose on the floor in new, more efficient tools
of
by Index which revealed this chal¬
what appears to be a conscious or
of the Senate and said:
production. So instead of being the Government knew it. But the
lenging fact: That since 1951, the
unconscious campaign of misinter¬
pyramided and passed along to very same Senators who are now
"I should like to ask one more
price of products—or things—had
the consumer—as the campaigners crying havoc at the rise in steel
pretation and even misrepresenta¬ risen
only 2%, while the price of iq u e s t i o n ol' the distinguished
tion, the purpose of which is to services — or
Senator from Tennessee. Does he tell us they are—these costs have prices were strangely silent then.
non-things, such as
Did any one of them ever raise
been absorbed in large measure.
place all blame for the inflation
transportation, medical care, laun¬ remember any testimony that the
•it
his voice against these inflation¬
upon the pricing policies of Amer¬
dry, haircuts, rent and so on—had steel companies have ever reduced
But the most important fact, of
ican industry. In
ary wage demands? Did any one
fact, disturbed is risen 21%. In other words, the rise their prices?"
course,
is that the intrinsic or
of them even faintly suggest that
an
inadequate word to describe in the price of all the manufac¬
To which Sen. Kefauver
replied: basic cost of the materials that go such wage demands might not be
my reaction
to what frequently tured
articles and
other
into all of the products that are
things "I do not remember any!"
amounts to a campaign of
entirely in the public interest?
calumny that
made in America is only a small
people
bought
had
been
Now I would not want to over¬
peddled from high places by those negligible. And
No; there wasn't so much as a
having presented emphasize this
percentage of the total cost of
lapse of memory
who pose as defenders of the
whisper from them.
pub¬ this evidence, Dr. Ruggles con¬
those products.
nor to examine too closely its re¬
lic interest.
cluded
with
Ever since last spring, the auto¬
these
significant
lationship to the public interest.
Thus far, these mistaken cham- words—and I
mobile companies have been fight¬
Effect of Steel Price Increase
quote them exactly I would
merely point out that cer¬
piops of the public interest have from the record. He said:
ing to hold the wage-price line,
tainly it served the interests of
Commenting on the price of
concentrated their attack prima¬
"It is not possible to
maintain, those who would confuse the steel, the other day, an official of knowing what the effect of the
rily upon three industries—steel,
in view of the statistical evidence, American
people into believing the Ford Motor Company was union's wage
automobiles and oil; but, if pur¬
demands would be
that administered prices have that there is an immediate and
quoted as saying: "Labor costs on the
sued, the natural result of this
price of the 1959 models.
been primarily responsible for the
inseparable cause and effect con¬ mean more to the auto industry
campaign will be to inflame pub¬
inflationary spi—»1."
nection between steel prices and than material costs. About 80% of But they have been fighting alone
lic opinion against business
gen¬
Now
it may
surprise you to the cost of living
that a steel what you pay for a car goes for
Continued on page 30
erally and eventually to lay the
learn that—through some mystify¬
ground-work for someone seizing
ing oversight of its staff, no doubt
an ever-larger measure of
control
—the majority report of the Com¬
over its affairs.
This announce mail is not an offer
mittee fails even to mention Dr.
oj securities jor sale or a solicitation oj an ofjer to buy securities.
So I would like to discuss this
Ruggles' testimony. Perhaps the
price of

the

skyrocketing ing costs;

government

and

the

and one of the group—
Richard Ruggles of Yale—

Prof.

Yet the

...

matter

Price

and

Interest—to examine
aspects

this

the
some

Public

Committee

the

cam¬

paign as it has been applied to
steel, and to discover, if we can,
whose public interest our attack¬
ers

are

serving.

Can

Steel

cam¬

paigners, of course, is that a rise
in the price of steel is little less
than

a national
calamity. It makes
difference how small the
price
increase
may
be, nor how in¬
adequate it is in the face of the
no

materials.

Any

price

wages and

increase

size is immediately denounced

any

unjustified.

The

campaigners
proclaim that it will touch off an¬
other disastrous round of infla¬
tion

and

sumers

that

to "sit

it
on

will

cause

con¬

their hands" and

thus plunge the nation back into
the recession from which it is
just
now

emerging.
In
short,
they
chorus that rising steel prices are
the

cause

and all

inflation,

other economic

The

address

Economic

Mich., Sept. 15,

by
Club

Also

Mr.
of

the

September 18, 1958

Committee

same

facts

are

study which

price
such

from

similar

published in The

was

American-South African Investment Company, Limited

1,200,000 Common Shares

1951, the
appliances,

household

£ 1 (South

African) Nominal Value

washing machines and the
like, had actually declined by 13%
during the same period. And in
this connection the "Times" made
a

statement that is at

and

want
the

astonishing,

quote
"Times":

once so

that

ttue

again

verbatim.

Said

"Though it may seem surpris¬
ing, the price of steel could prac¬
tically double and the cost of liv¬
ing would hardly show it!"
—And do you know that by the
strangest
of
coincidences,
that
evidence is nowhere mentioned in
the

majority report of the

Price to Public: $28 per

Copies of the prospectus

be obtained from the undersiyncil (one oj the
persons to whom the undersigned
legally ojjcr these securities under applicable securities laws.
may

underwriters named therein) only by
may

Com¬

mittee either?
But

Blough before
Detroit, Detroit,

record

recession,
ills.

1958.

New Issue

public interest.

even

what

case
*

majority felt that the

New York "Times" last year.
They
show that while the price of steel
had increased 14% since

Blamed?

Now the theme,
song of the

ballooning costs of both

facts he presented were not in the

propaganda

more puzzling to me,
might call the strange

the

duction.

forgotten
..

price

r
,

Some

may

recall

re¬

that

just

one

employment costs

bobby

preoccupa¬

for

in America,
put
huge pile, and added
the price tags on the lot, up¬

wards

emotional appeal that is
stuff.
You
know
the

sure-fire

ancient

universal

the

20%

steel."

took all of the products

are

them in

hairpins; that it will

express

If you

that

boost the price of
everything from
automobiles to safety pins; and

they
price

about

course

pot only
true
of
automobiles, it is true
throughout industry generally.

everything from

only

And that of

that the higher cost
raise the price of

tractors

and

materials—including

No; the campaigners go merrily
along, dinning their theme song

clined

interesting thing

began

reached

months!

cost

cluding safety pins, hairpins,
bobby pins and zippers—has de¬

of Memory

happened. No sooner had steel
prices been raised than the cost
of

the

living pins.

still faster. The

and increase its prices in
effort to catch up with
end

And

industry, the Anti-Monopoly Sub¬

those prices to
r i s e.
I
a m

unabated; and within dous

attack

cost

months, U. S. Steel had to
raise wages, rescind the
reduction

Subcommittee

persistent

inflation

rise

few

Airwers Anti-Monopoly
•

b y

time the

fazed by the steel price
reduction.
It moved on,

Grimm fairy
tale. Let's look into it a bit.

cost

has

and services. I

disturbed

the

:iA

that

march

And this—to put it as politely as
I can—is a fairy tale. You might
say

pocketbook, and

Well, it went

Soviet victory.

even

during the past year; and
do you remember what
happened
to it after the
price cut?

cannot be the

other

might

rising at a frightening ratefully four times as fast, in fact, as

industry could have absorbed
increases, and points out that the effect of steel price in¬
crease is
insignificant compared to increased wage costs and,

every

which

was

wage

price of steel
by
ranging up to $5 a ton on

living.
At

price increase is the

statesmanship in variably the effect.

products

sumer's

metic" to contend that the steel

what

outstanding

expected to produce the most im¬
mediate
effect
upon
the
con¬

primarily result from heavy Federal spending, growing fiscal
deficit and union-impelled wage boosts
outpacing increases in
productivivty. The steel executive terms it "Wonderland arit.i-

would insure

the

amounts

blame for price inflation on American
industry's pricing poli¬
cies., The chairman of U. S. Steel declares our
inflationary ills

therefore,

industrial

duced

Congressional committees'
to

summer—in

serious
inflationUnited States Steel refused a
wage
increase to its workers and re¬

attempt

period

States Steel Corporation

unconscious

this

ago

then hailed

was

act

Dillon, Read & Co. Inc.

•

The Commercial and
1

undertaken by .
a group
of individuals who, with
clear ambition in view, combined
for the task, fitted themselves for:
action and achieved the desired

That Has Made Us
Strong and Successful Nation

The Spirit
A

The spirit

which has made the

strong and

greater
human
welfare, capitalism falls
within its framework because it
conforms to the basic religious

goal of

—that the rich

would become

system of dynamic enterprise pro¬
duces
greater economic progress

richer and the

become

poor

other, it is, therefore,
doing more to advance the cause
of Christianity. ■'*
than

poorer.
No one could
been

have

The

Karl

which

than

did

ipto

objectives:

We did

for

Koger

higher

living.

Instead,

have

■

(4)

and
great

of living

nation and Americans a prosper¬

distri¬

an
equitable
income.

And,

bution

this system remains
unhampered by the tampering of
So

long

and better things, the prom¬

ise for the future
As individuals

ence.

better.

even

will continue

In the decade

ican home will

important

average

our

benefits^n proportion
respective contributions.

our

became the boss of
He became

man

economic society.

the sovereign
marketplace.

Why This Spirit Exists

brings us to the question of
why this spirit exists under the
capitalistic system to a greater
degree than in other economic

the

fellow

the

consum¬

rewards

well.

In the final

analysis, then, it is

the

consumer
who, by accepting
rejecting a product, determines
the employment, growth and earn¬

capitalistic system more nearly
complies with religious principles
than any other system does. While

ings of

true

♦From
4ute

Area

that

talk
M."

Chamber

Christianity
Kyes

Mr.

dinner

before

Commerce,

Dayton,

©bio, Sept. 4, 1958.

t-i

strides will be

Truly dramatic

condition¬

offer

buy

any

is made

the threshold of the ex¬

itSCif, 111 tOTlDS of
history, has meant the

sell

two

tinues

spreads beyond
distant rural
the

by four feet of floor space
be easily operated by any

velopes at speeds
hour.

use

look

promise

remind you

The

springs of progress—in fact,
all past civilizations have done so.
insure the forward march of

dynamic enterprise system it

essential that

nor

solicitation of

the site

company

only by the Prospectus.

second

parcel

into eight parcels.,

we:

SEPTEMBER 16,

1958

efforts in the field
fundamental knowledge, thus
our

barriers of

Devote

utmost energy to our

our

interested

And, finally, cling with the zeal
of crusaders to the religious and

®Vz % Cumulative Convertible Preferred Stock

will be sold to

businesses. \

given

principles
that
much for so

Hart¬
approval from
the State Banking Department to
establish a branch bank in Enfield.
The Society of Savings of

received

has

ford

It is expected the new branch will

PRICE $10.00 PER SHARE

addition

West Hartford,

office

main

its

Total

Corporation

41%

at
Kaman
has
risen

during; the past year. The
helicopter
company

employes 1,784 compared to

1,263 employed in September 1957.

may

he obtained from the undersigned

only in those States in ivhich the undersigned
these securities in

may

and

American

Copies of the Prospectus

ourselves

enterprise

shall

succeed

the

faith

in
dynamic

system,

beyond

our

132

SOUTH

MAIN STREET

SALT LAKE CITY,

UTAH

Weeks, 40

Hubbard

Hall

Chemical

the ma¬

has purchased

Wall

York City, members
New York and Boston Stock

Street, New
of the

Oct. 1 will admit

Exchanges,

Edmund T.

Anderson, member

the New York

;

the

Named Directors
Nuclear

same

tion

two

new

members

liam R.

Robensky,

will
partner.
ner,

also

general part¬

become

limited

Angeles, Calif.

' Primary Markets la 11| CHAS.W. SCRANTON & CO.
,

CONNECTICUT

Exchange

New Haven

SECURITIES
■

-4

Lovering, general partner, will be¬
come a limited partner, and Wil^

to - the

company's board of directors: Ed¬
win L. Kennedy, partner in the
investment banking firm of Leh¬
man
Brothers, New York, N/Y.
and Bernard M. Silbert, President
and
general counsel of Pacific
Uranium
Mines
Company,
Los

•

Charles

date

Members New York Stock

Fuels

Exchange to part¬

Corp.,
Grants, N. M., announced the elec¬

Jpxchange

Hornblower

hopes.

Kermac

Members New York Stock

Hornblower & Weeks

fondest

legally offer

compliance with the securities laws of such States.

J. A. HOGLE & CO.

Winfield H. Perdun
Mr.
with
over twenty
years' experience in
the investment business, has been
associated
with
Smith, Barney

Perdun,

nership.
The

Inc., manufacturers of metal chlo¬

firm

leading oil

To Admit Anderson
employment

Company

With

Com¬
and one

analysts.

Hartford.

jority interest
in/the firm of
Chem-Sales, Inc. of Atlanta, Ga.,
formerly
Metalsalts
Chemicals,

spirit.

ney

for business on. or about since 1950.
1959. Society for Savings
branches
in
Hartford,

that

Par Value $10.00 per

the spirit of Amer¬
ican
enterprise has yielded an
abundant life.
Let us not betray
now

will

Oils"

has

now

have
many

years.

Up to

m.,

Tuesday, Sept.

pany,

Bloomfield

economic

Boston

The

the season at

of the nation's

now

SAN DIEGO IMPERIAL CORPORATION

—

dun, a partner
of Smith. Bar¬

the remaining six

Aircraft

ignorance that impede us.
tasks.

70,000 Shares

Mass.

meeting of

developed

will

pond-and picnic area; and

East Hartford and

breaking through the

BOSTON,

Investment Club will hold its first

Winfield Per¬

people as consumers in the mar¬
ket place.
of

Hear Winfield Perdun

will, occupy one: a

May

Intensify

Boston Inv. Club to

disclosed plans to develop a
industrial park in Dan-

divide
•

is not automatic. History
reveals that it is easy to dry up

uses.

acre

opment

our

dustrial

bury.

tot the; with

forward

and

three

23, at the Boston
Yacht
The firm, which manufac¬ Club. Speaktures
winding machinery and i n g on t h c
other intricate machinery for the "topic
"The
electronics i ndustr y, plans to Outlook
for
47

the future, I would
that economic devel¬

of General

for

three-quarter shares of Barnes.
Barnes Engineering manufactures
infra-red systems, components and
instruments for military and in¬

dinner

i:.

has

intricate and diversified

to 4,000 an

the companies on

stock

Transistor

5:15

energy

types of electrical equipment.

=Boesch Manufacturing Company

and

rising standard of living, we can
anticipate an ever expanding need
for

•

con¬

■/;/'./•■/•/',<.■■;

electrical

the basis of one share

feeds, folds and inserts statements,
bulletins, releases, advertising
material and other forms into en¬

the suburbs into

areas.

combination

and
of¬

driven,

Electrically

minutes.

Company

Stamford are discussing a possible

will

machine

The

worker.

fice

Engineering

Barnes

automatically fold and stuff about
200
letter-size
sheets
in
three

the automobile will

as our population
its
normal ;growth

intensify

of these securities. The offering

NEW ISSUE

New

and lawn tools to its manufactur¬

was

can

citing rocket and space travel age,
who knows what may lie beyond

Jl#llt6ipriSG

offer

Stanley/Works

The

Britain has added a line of garden

marketed {"recently by
Pitney-Bowes, Inc. of Stamford.
The new device occupies less than

ings,

open

is neither

engi¬
plant,
site, was
50

the

235-acre

started in October 1957.

folding and envelope-stuffing of
letters, statements and other mail¬

Develop and expand our econ¬
omy to meet the demands of our

ratio

are

cores

staffed

Construction

located

combines

search the skies, we

stand

1 his announcement

facility

neers.

compact new machine which
the office operations of

ing and dehumidification.

American

000

reacter

Nuclear

being assembled at the S500,-

now

the

Enterprise Explained

"Sa-

Dayton

enterprise.

series

Chemical

one. share
for* each 10 held.
ing operations. The line, being
for food preparation,, Company officials indicate that
produced by the Stanley Tools
as
well as automatic equipment after
the- financing
the capital Division, includes pruning tools,
for food handling, storage and ^re¬ structure will be: approximately
grass shears and lawn rakes, grass
plenishment. Developments in the 50% long-term debt, T0% pre¬
whips and other garden items.
field of electronics will revolu¬ ferred and'40% common stock and
tionize the function and- control
surplus.
:
' \
General
Transistor Corp, and
of all labor saving appliances.
/

mushrooms to keep pace with our

those who served them efficiently

In my opinion it is because the

stockholders in

common

nuclear fuels plant in Mont-

ville.

the company

addition,

Mathieson

Olin

Corp. has started production of its
new

$50. par pre¬

100,000

ferred.

appliances

the

privilege and that

out

pass

king
|

of millions of his
ers

and

ey stems.

—

It became his

This

realize that
capitalism the

with the advent of

to share the

value and to approve a new

things we do not now foresee— to
new concepts in refrigeration and ; of

pendence
is

The

149,633 common shares o| $25 par

worked

will be held Oct. 6 to
proposed increase of

Company
vote

stock¬

Electric Light

holders of. Hartford

the
barriers we are now pene¬
people. Because we have all
together, we have created those wiio would destroy it, every trating?
wealth at a vastly greater rate man and woman in
America is
With new scientific discoveries,
than our population increase. Con- assured
the
opportunity to in¬ new materials and improved techr
eequently, everybody is better off; crease his usefulness and creative- nology, the character of the auto¬
in fact, rich in comparison to other ness—the opportunity to develop mobile
will
evolve
to
insure
peoples of the earth. And as we his full potential within the scope greater utility,
satisfaction and
continue
to
engage
in creating of his environment and experi¬ convenience. Moreover, man's de¬

ous

meeting

special

plans to issue and sell $18,000,000
o;f senior, debt securities, Stock¬
:.5/holder approval for'.this I issue ha s
ahead, the.Amer- " already, been granted. The com¬
be provided with mon offering would be made first

$7,500.

'
.

were

merged.

will
(3) Production to meet the de¬ behold many innovations beyond
mands of the people.
our present contemplation. As we

been

"give

attitude

has made America

take"

distributors

chemical

gears.

is almost

10 years may well increase our
production of goods and services
by as much as $200 billion. Day¬
ton has a special interest in the'
fact that there will be a substan¬
tial increase—almost two-thirds. I
am told—in the number of house¬
holds with incomes of more than

creative and cooperative. The con¬

structive

high standard

The

all.

for

economy

made in the field of air

(2)

M. Kyes

standard

cyanide.

copper

dom.

chances

our

its four basic

Economic security and free¬

(1)

destroy

not

which has

system

con¬

well

capitalistic

nurtured as under the

not

flict with each
other.

principles of human dignity,
we inherit from our Chris¬

past, has never been so

tian

Marx.

get

any

wrong

better life for mankind,

also be said that since our,

can

States

of • the-

beyond comprehension. The

broader in its approach to

predicted that the
western capitalistic
society was
doomed to failure—that we would
have class warfare and revolution

potential

growing

United

Marx

and

The

Karl

rides

Steam

Terry

and the economic potential of
the United States are principal points apprized by General
Motors' executive.
A reminder, however, is stressed by
Mr. Kyes—i. e.,
economic development is not automatic
it is easy to dry up the springs of progress/' Lists four
essentials to insure the forward march of our economy.

Company

Turbine

successful nation, why it exists,

directors

The

Hartford purchase price was not disclosed.
have voted to split the stock five The Hubbard-Hall Chemical Com¬
goals.
"
which was founded in
for one. There will be 250.000 $5 pany,
Enterprise is a dynamic action—
Waterbury in 1849 as a drug store
par shares outstanding after the
to participate in it one must be a
known as the Apothecaries Hall
split which is subject to stock¬
doer; to enjoy it one must be a
holders
approval
Oct.
15. The Co., received its new name in 1957
when three New England fertilizer
fjart of a constructive activity:
company manufactures steam tur¬
manufacturers
and
agricultural
Growing Potential of U. $. A,._; bines; and high-speed j-eductioh

Motors Corp.

United States

Thursday, September 18,1958

Connecticut Brevities

KYES*

By ROGER M.

Vice-President, General

activity

human

and successful course

effective
a

Financial Chronicle

(1114)

New

•'

York—REetor 2-9377

Hartford—JArksou

7-2669

Teletype NH 194

Volume

188

Number 5778

The Commercial and Financial Chronicle

(1115)
funds

The

Mortgage Outlook
By WALTER

builder's

NELSON*

Vice-President, Mortgage Bankers

market.

Association of America

President, Eberhardt Company, Minn.

improving business prospects, particularly in the
strength of the housing demand, is cogently;, depicted by
Mr. Nelson, Mortgage-bankers are
apprised of the disturbing

After the end of
in

housing

at-

able

rate

rectly* back of its

^out

■jw.e'v e been
through. It is
•q u ite clear,

still

■,

call

them

even

apparently

the

■

dir-

even

negotiation.
decided upon

;

prospect of
further I

with

any ? event,

they

the full
responsibility fob process¬
ing mortgage applications. In this
we

have

< the

solitary effort. The

w©

should

sympathetic attitude da
the FHA Commis¬

part

sioner, who can be counted upon
us. They
lost, to move as
widely and quickly as
too, for dissention" we can demonstrate" the
feasi¬
in the ranks- of private
mortgage bility of
doing so. This plan which
lending is a debilitating thing—r is now in
effect in all or part of
and debilitation is
something it ' the territories of 21
insuring offi¬
can well do

rate of

result is

it has learned

case

now

with

and the rest lost

has

to t recognize ' the
ultimate
rule of the market; The lessons of
this experience unfortunately have

conciliation
i

bonds, with-

own

the

over

First,

you know, the originator of the
mortgage, using independent. ap¬
praisers and inspectors, < assumes

legislative

discouraged

Yet

/the folly of the attempt and
v

begin.

push for a rapid extension of
FHA's Certified Agency Plan—the
plan under which, as I am sure

friends—were

our

tell you how I think

might

year which would
resulted from further nego¬
tiation.
They
were

the

<r*had
'

FIIA's Certified Agency Plan
Let

satisfactorily re¬
*' r
t
Our friends—and I hope we
may
,

interest

trying io control-their

anterest. In this

advantages

enjoyed

'not

f
•

■

that; mild as they
by
comparison ' with
what for. which,
have been; ""they " do vervbeen
have been, thev do very
-as peen

rGi PP^'Poses.
the related legislation
,

enacted,
enaciea,

some
some

great
gi

tion where I
because

seem

isn't

to be

grousing,!" enough

'nature

Nevertheless,-1 cannot

grouse.

*las been vindicated,

mortgages.

government stands

v»4
•

little to strengthen a private home

the experience

back

determine the

the

might
might

jh^ppy about

in
institutional

groups could be
solved.

source

economy.

stands

foresees

are

divergency

the

have

lative results is

than their usual full share

vtention, I can'.not say - I am

and

received

the

among

without in the face of
ces offers a means of
been interpreted in terms ofbroadening
the many problems that now- con- '
the effectiveness of the FHA
-the market for insured and guar- front it.
op¬
■
;;>T ''
.
eration by simplifying
anteed mortgages to which they
procedures,
This is where we stand at the
v
shortening processing time, and
equally apply.
Here the belief end of a
disturbing and exhaust¬
'
reducing cost both to FHA and
remains that an interest rate can
ing legislative session. I am sorry * the
industry, it was instituted on
The second reason that I " am be what some agency says it ought that my report is not more cheer-C
the
proposition
that
mortgage
not pleased with" this year's legis- :T<> k® and that, even/though the ful. I don't like to
get into a posi-; lenders had become mature
tax

same

Congressional

which

mortgage- credit

major

time,

restive at the prospect of the loss

•

..!<■
?;

1,050,000 new
houses and apartments
easily started this year and postulates
annual demand of about 1,200,00.
.session

It* creates

instability in the

trusts.

views

his

mortgages the government should

Congress and of the
cleavage in the mortgage lending field. The
Minneapolis mortgage banker castigates the v'fbted-rate in¬
cubus" imposed
by Congress and 'counsels against future
support of omnibus housing bills. Also, urges Extension of
FHA's Certified Agency Plan and
passage of bill allowing real

by - security investment

the

narrows

government

results of the recently ended session of
need to repair the

raises

It increases the

and

dangerous idol persists. It persists
solely on the theory that, since the

despite

investment trusts the

inevitably

risk

Yet the political devotion to this

Serious situation confronting private
mortgage credit industry

estate

and

cost of his house.

the situation

assume

to. for their acts. 1 Its
see

confronting pricredit, as anything

now

responsibility

success

will de¬

pend wholly upon how sound that
proposition proves to be. We must
see
that
it
does
prove
to
be

-mortgage credit system. The most ''.So long as the supply of mort-i vat mortgage
favorable actioirwas the elimina--'gage money is restricted '
by a> but serious and I cannot find an_ sound.
tion of discount'controls in the'fixed
interest rate,
it may be advantage in giving the facts any¬

We cannot afford to let it

be otherwise,;
»•
" •
' •
pointed out, little is to be gained thing but their own grave aspect.
Second, we have to keep before
builders.
This
feature
of
the'from reducing downpayment reFacing the facts, however, is us
always the -objective of a free
\however, that
Emergency Housing Act was im- quirements and lengthening ma-'- not enough. It is one thing to
interest rate. Sooner or later * the
'the legislative
portant—no question about it— tiirities. With the VA rate much, recognize trouble, but quite an¬
rule of the market must be
results might
recog¬
-though it still maintained the fic-: below a workable level in most other to let trouble
get you down..' nized in respect to interest ratesr
•have been a
.tion that discounts are not passed parts of the country, and the FHA
on insured mortgages
I like to quote a line from
as it is in
-lot worse.
St.;,
„on
to the borrower even when rate teetering on the verge of ac-~
Paul: "We are troubled on every ( respect to rates on government
vf On the face
they prevail over a long period..' ceptability,
a
liberalization
in;
obligations and all other types of
•o f
i t
■
we
Builders and homebuyers may de-: mortgage terms may increase the side, yet not
distressed; we are: securities.
Even public
'didn't come
housing
"rive some benefit, too, from de- demand for funds but it cannot
perplexed, but not in despair." I bonds, which are backed by a sub¬
lout so badly;
"Teasing the down-payments; on help the supply. Jt can only make
am not distressed at our
sidy as well as a full guaranty pf
predica-;
VvMt.cr
and, by "we"
FHA
i^eisoll '
mortgages, as also was ac- a tight supply tighter and, as has
interest are sub¬
I me a n all
ment and I am definitely not in,, principal and
complished ; in
the
Emergency happened this year, lead to over-'
jected to the verdict of the mar¬
those who are convinced that the
"Housing Act.
' ^ - ' v.V.; Tp ; : Y; V ''whelming
pressures
for direct ; despair. I recognize that an uphill ket so far as their interest rates
•maintenance of a sound private
Along side these rather limited-government support of an irra-' fight is ahead and that it is not. and
prices are concerned- The
home mortgage credit system is
tadvantages, Jye have to recognize" tional- situation,
to.be won in ayear.-But I can't. utter illogic of the situation in the
among the stoutest bulwarks of 1 that, taking it all in
all, the year's
•
financing of private housing cansee that that is
"individual liberty.'
any reason for not
legislation has dealt some serious.
Other-Disappomtments
;
.!
Continued on page 29
*f\ :For the first time in a decade blows to private credit and has ' 41 am also regretful at the failure^ making a start.
:
'
Congress went home without pass-' refrained from " providing some-of Congress—after coming to theing a "comprehensive" housing .badly needed relief. Probably the very brink of enactment—to pass,
-

transactions

between

lenders

and

•

v..

bill. What happened was that this
the omnibus got so overloaded that it just broke down.

Jime
As

"action

adverse

most

was

taken in the Emergency
Act under which

that

Housing

a carefully
studied proposal to.
permit
real
estate
investment

FN^yiA was "cU-" trusts to pass their income "on un-:
rected to buy, and to make com- taxed to their shareholders in exmitments to buy, up to $1 billion actly the same way as is permitted
that was' of'FHA and VA mortgages at par, to
security
investment
trusts.

result, the year's legislative

effort is confined to the so-called

J Emergency Housing
;rushed

'through

Act

Congress

March and

dent

plus

signed
April 1,

billion

the

last ^with no stock
ment imposed

Presi-

the

$4.5

purchase requirethe sellers. This

extension

of the FHA in-*trol interest rates by the devious
in income-producing real estate,authorization, which— method of a price support opera-; for enhancing the security of real
very
significantly for the final • tion. The" expansion of the VA estate mortgages, and for relieving
result—was passed in June as a direct lending program is another some of the
pressure for supermeasure.

When

have

been

measure

considers what might
in terms of the mas¬

one

the

continuance

college

sort.

same

direct

housing

The

loans

high loan-to-value

for

sured

subsidized

about

three

later, it is impossible
that the outcome
lot

does

worse.

not

happly.

weeks

not to agree

might have

been

Nevertheless,

this
altogether
shall4 give " you
my

make

this

taken

was

year'than

Never before have

cial

such

assistance"

scale.
and

Never before has

present

to the

Results

First, the
"might have
-

make

the

been" is enough to
wince. The fact that it

one

didn't happen is

placency.

thought

very

The

no cause

for

com-

in the fixed rate

teed

an
on

loans

was

lA%

investment

this

field.

encroachments that threaten all of

them,

lift*

than

found

unfortunate

the

The

difference

great

cause

ourselves in

Houses, and that the composition
next Congress will include

additions

their

ranks, is what

we
have to keep in mind. The
struggle between limited and total

government,
^hess

seems

tleground,

which

will

with

institutional

was

the

one

groups,

decidedly

those who favor
dominated

certainly,

ber view of the
"An

from

'access

guaranteed "mortgage funds.

it is

that the

fixed-rate

;

Why

is impossible to rationalize.1 The

the

side

enough for

som-

prospect.

Maine,

1996.

fixed rate does

good—

of interest; and when it is above
it is meaningless. The narrowly
rate

bornwer*
borrower,

from

12,

ment.

does
it
it

exercising
It

not

his

restricts

keens
keeps
own

his

him
mm

Copies of the Prospectus
signed who

date of delivery

may

be obtained from

qualified to act

are

any

of the under¬

dealers in the respective States.

Stone&Webster Securities Corporation White, Weld & Co. Halsey, Stuart & Co. Inc„

Glore, Forgan & Co.

Goldman, Sachs & Co.

Harriman Ripley & Qv

Incorporated

Kidder, Peabody & Co.
Merrill Lynch,

economic

Lazard Freres & Co.

Pierce, Fenner & Smith

sys-

•

Paine, Webber, Jackson & Curti*

A. C. Allyn and

American Securities Corporation

Smith, Barney & Co.

Dean Witter & Co„

Company

Incorporated

Blair & Co.

Clark, Dodge & Co.

Incorporated

Dick & Merle-Smith

& Co.
& Co.

Hallgarten & Co.

W. E. Hutton & Co.

Lee Higginson Corporation

opposition

which a «g0-itpolicy would produce and

hopeful that, given good will and

Drexel & Cov

Hemphill, Noyes & Co.

Ladenburg, Thalmann & Co.
Carl M. Loeb, Rhoades & Co.

R. W. Pressprich & Co.

Schoellkopf, Hutton & Pomeroy, Inc.

Coffin & Burp
Incorporated

Dominick & Dominick

Equitable Securities Corporation
Hornblower & Weeks

Bear, Stearns & Go*

sta-

was

alone"

Lehman Brother <

Salomon Bros. & Hutzler

Mortgage Bankers Associasympathetic with the ob~ W. C.
Langley
jectives of this proposal. It was,
however; not conviced that-the F. S.
Moseley
objectives could not be better ob-

the

judg^-

access

all members of the mortgage lending .fraternity. It. was fearful of

the

protect

simolv
simply

•'

September 1, 1958

tained by essential reforms and Wertheim &
Co." Alex. Brown & Sons
improvements of the FHA system;
and it was skeptical of the.wisdom
Laurence M. Marks & Co.
of- creating a new system that was
not; open on fully equal-.terms to

when it is below the market rate

fixed

Sept.

no one any

100%

The

tion.

incubus

visited' on-"mortgages; and

menace

bility.

many

place else in the investment world

Springs,

borrowers

kept

address

PoJand

it' still

tipped

by Mr. Nelson before the
Savings Banks Association of Massachu¬
setts,

able

and

tems

money

renewed

governmentally
credit system. This is

cause

market

recent

and interest accrued from

proposal-to* A. G. Becker & Co.

the most favor--have made the-FHA and VA

the

year; and the scales will be
more

par at

point

principal bat-

busi-

our

point below
able

Due January 1, 1979

Price

of teaser
to
both
borrowers
and create a new plan for making high
influential group of members, lenders.
It still left prices' on. percentage home loans free from
both sides of the aisle in both- guaranteed
'Joans four to' five the hampering restrictions that

of the

Company

Mortgage Pipe Line Bonds, 5%% Series due 1979

Dated September 1, 1958

disappointing

activity
brought
to
the
lending industry. At a
we should be ardently
seeking every possible means to

guaran-

First

time when

the part of both administration
Congress ;to face up to the
The

Tennessee Gas Transmission

lative

and

interest rate issue.

that

realization

long and

The outstanding omission in the reconcile the interest of all
types
year's legislation^—as we expected' of mortgage institutions and to
it to be—is the continued refusal create a unified front-against the

seriously considered, that
obviously represents the views

was

in-

for

apartment

mortgage

Berates the Fixed-Rate Incubus

$50,000,000

Finally, I am unhappy over the
cleavage which this year's legis- Blyth&Co.Jnc. Eastman Dillon, Union Securities & Co. The First Boston Corporation*

Unpleasant Legislative

private

reasons.

Cites

ratios
on

battle. Yet there is nothing else
the legislative horizon- that
would do so much for sound, free,

serious

September 16,1959

threat been offered

in securities in the respective States.

"spe-

private credit system.

mortgages

after

grand

not be easy to revive this measure

usual,

had

New Issue

property and unnecessarily liberal
grants for urban renewal. It may

sively extravagant bill passed by interest rate is still another. • Each
the Senate in early July and the year
sees
these
encroachments
even
more
prodigal affair that" carried further; and, under the
was
reported
favorably by the guise of combatting a business reHouse
Banking
and
Currency cession, a more significant step
.Committee

;

crying need for equity investment

con-

,surance

separate

an offer to sell nor. a solicitation
of an offer to buy any.of these
offering is made only by the Prospectus. This is published On behalf
,
of only such'of the undersigned as arc qualified to act as dealers

securities. The

Here was a fine opportunity to
provide a vehicle for meeting the'

out-and-out" attempt to

This advertisement is neither

Estabrook & Co.

Reynolds & Co.
Stroud & Company

L. F. Rothschild & Co.
Hayden, Stone & Co.
Riter & Co,
Spencer Trask & Cow

Incorporated

Tucker, Anthony & R. L. Day

G. H. Walker & Co.

Weeden.& Co.
Incorporated

The Commercial and Financial Chronicle

Thursday, September 18,1958

(1116)

these

hence

and

thin

General Outlook for Chemical

volatile.

THE MARKET... AND YOU

International Oils Behind

Industry This Year and Next

The Market?

By WALLACE STREETE

International oils, with the

Reversal of chemical sales' downturn in second half of 1958

compared to first six months and further sales-jump in 1959

thrown

cloud

them

over

Middle East, are

unrest in the

predictions made by Mr. Crass and Miss Campbell of

and ding them up to historic
among the groups considered
even
the long-dormant oils peaks, at a time when opera¬
"behind-the-market," particu¬
tions
are
running at twohelping along, industrial
thirds of capacity, represent¬ larly since such an item as
stocks finally ended all the

are

this week by pushing ing market levels they didn't
vigorously to the highest read¬ even reach a year or two ago
when mills
were
humming
ing ever.
What profit-taking showed above theoretical capacity.
Popular more times than
up after this feat was readily
absorbed and there was no not, and with the solid back¬
dearth of new favorites avail¬ ing of improving earnings,
able to take over leadership were the drug shares. Their
when the old leaders tired. earnings improvement is con¬
Few market
students were tinuing right through the re¬
willing to buck the convincing cession, Merck more than
show with any outright bear- doubling its per-share earn¬
ishness and few were willing ings last year over 1954 and
to
be
dogmatic about the anticipating a further i m eventual target on the upside provement this year that

improve

With

rails

utilities,

suspense

with

Oil

Gulf

Manufacturing Chemists' Association based

above-par

its

rapidly though majority of those polled are said to
significant change in dividend payments or capital
outlays. Authors strongly advise against any trade that would

price has held in a range of
less than a score of points all

which would

year

make it

;V
'•*

if there was any con¬

Yet

learned in previ¬

crete lesson

anticipate

bring about

something of a neglected item.
V

modern U. S. S. R. chemical industry.

Chemical

industry sales in the
Jast half of 1953 will be 5% higher
than during the first six months,
and 1959 sales will jump another

A liberalization

Act.

strictions

of trade

re¬

the

part of certain
European countries may offset ef¬
on

fects of the latter to some extent.
"While

that over¬
some
lines
have
will cause, serious
problems which may extend into
1959
in
certain cases, approxi¬
mately
80%
of
Manufacturing

tangles with the oil com¬
panies in the Middle East, as
in Iran some half
a dozen

ous

admitting

capacities
caused,

it is that unless the
oil companies
continue to refine and

years ago,

international
can

response

upon

"overwhelming majority" of top chemical industry execu¬
tives :n a recent survey. Profits, however, are not expected to

and

Association's

Chemists'

contacts

that their planned capital ex¬

say

penditures are going ahead
on
transport oil the economy of
schedule. However, there is some
the countries concerned can
now that the industrial aver¬ would make it a candidate for
evidence that portions of planned
suffer even more. So there has
expenditures are being held up
age has broken out into un¬ improvement of a dividend
been little disturbance in such
temporarily, until the picture of
rate of $1.40 which will prob¬
charted territory.
the
immediate
future
becomes
ably be covered with a dollar operations in the more recent
clearer. There is no pessimism as
Support From the Shorts
or
more
to spare this year. upheavals. Yet it has cast a;
M. F. Crass, Jr.
Marjorie V. Campbell to the 1960's. Disappointing sales
A fair share of the persis¬ Others with sales tripled and pall over the shares in the
during the first half of 1958 have
stock market. Gulf lately has 5%, predicts a survey in the cur¬ not curtailed planned research ex¬
tent
strength was laid to quadrupled in the last decade
rent issue of "Chemical and En¬
penditures for the balance of the
been only slightly above its
short-covering by those who can show similar favorable

gineering News".
two-year low while on the.
This is the opinion of "an overbasis of its anticipated results Whelming maj ority" of top chem¬
Kails Favored
for this year and improve¬ ical industry executives, according
Rails were rather promi¬ ment next year, and with the to the magazine's annual general
outlook
report on
"Facts and
nent in the market letters of higher
multiples being as¬ Figures for the Chemical Process

been skeptica 1—and trends.

had

wrong — all
boosted
some

along and had
of

the

short

positions to levels that came
close to being excessive. But
that was only part of the an¬ the Street. For one, they are
swer since strength was ap¬ about as much of a depressed
parent in areas where short group as any around except
selling hadn't been prominent. for the textiles that are still
Repeated' warnings that wallowing in their own pri¬
stock yields were approaching vate depression. While the in¬
dustrial average was carving
3Mj%, against a return of 4%
out its all-time peak, the rail
or better in the
highest grade
bonds, fell on deaf ears al¬ average was nudging td a new
1958 peak but at a level about
though such a disparity in the
two traditionally is a sign that a third under its 1956 peak.
Rails
suffered
drastically
stock market prices are ap¬
when traffic dried up sharply
proaching a peak.
before costs could be trimmed
#
*
*

signed by an optimistic mar¬
ket,
to

improvement running
much as half a hundred

Maurice

Industries" authorized by

Secretary-Treasurer,
Marjorie V. Campbell, Assist¬

F. Crass, Jr.,

points can be envisioned by
some of its followers. Particu¬

and
ant

authors

Still

Mr.

Schenley Industries, in the

Crass

and

for the first six months of 1958 at

general

Campbell

gain for the last
equal
last year's over-all volume.
On
the basis of industry estimates al¬
ready cited, an increase of this
nature does appear to be within
the realm of possibility.
For the
long pull, the chemical industry
will retain its status as a growth

that costs are

point out that "this gradually ex¬
panding sales pattern will be ac¬
companied by a somewhat slower
improvement in profits.
While
about half the respondents visu¬
alize some improvement for the
last six months of 1958, an equal
number believe that there will be

houses

brokerage
awaiting a favorable

this
those

year
of

gambled wrongly on the same
with
type of shortage that had
year
which
existed through War II. With
twice-covered divi¬

comparable

last

that

chemical

firms

whole

paid 2.5% more in dividends dur¬
ing the first six months of 1958
than during the comparable 1957

buying spot. It all seemed to makes its
add up to limitless investment
the old eight-year period
dend automatically a candi¬
period. This compares with a de¬
about to come due, and un¬
funds pressing for good
grade date for improvement.
cline of 1 % for all manufacturing.
official estimates crediting
"Costs, primarily labor, mate¬
equities regardless of yields
Even where the common
and
Schenley with half of the rials, and transportation, are ex¬
unusually high pricestocks of the rails weren't
U. S. supply on which the pected to continue their gradual
earnings ratios on anticipated
rise through the balance of this
overly favored, a return ap¬
results for this year.
period was about up, a ruin¬ year and into 1959. This will be
proaching 7 % in the preferred ous situation was set up which in the face of an expected and
If there

were

seeds of dis¬

aster

being -sown in such a
performance, this, too, wasn't
immediately apparent since
technical studies

crisis

signs.

Anticipating Market

sidered attractive

was con¬

the tax revision

things

Even the

the

future.

optimistic of

the economists aren't
predict¬

ing that the production index
will return
to
peak levels
much before next

spring. But

some

students

since

half of the year.
;

similar

tractiveness

ends the

high yield at¬

are

the two pre-

ferreds of Colorado & Southern

Railway

which

between 50 and 60

sell

tive

was

certainties
[The

time

dividend
held to

were

views
do

not

coincide

payout

a conserva¬

level while the

article

despite

costly battle Schen¬

the

which

this didn't deter the followers $4 dividend and are redeem¬
of the steel stocks from bid¬ able at
$100. The market in

eliminated. It

much needed

improvement in pro¬

hour, as plants
heavier schedules.
ley put up for the revision and Present adequacy of production
is non-callable, although on
facilities in most product lines
the other hand it is non-cumu¬ paves the way for the com¬ and temporary overcapacity in
lative as well. But B & O's pany not only to concentrate some indicate little or no imme¬
diate change, however, in chem¬
revenues have held up fairly on
improving operating re¬
ical prices. Tax relief is not an¬
well and dipped into the red sults but also, in time, to im¬
ticipated.

the market

It was, however, a
pretty in only one month in the first
prove
clearcut case of anticipating

good
-

;

showed

of Baltimore & Ohio

tax

un¬

still alive.

expressed

necessarily at
with

this
any

ductivity
go
back

the

"International trade looms as an

important factor in
with a slacken¬
ing off in export trade and an in¬
creasing
volume of
imports
threatened.
Here, the European
increasingly

forward business,

Russian

ical

those

per man

Common Market and

entrance

the threat of

into

the

chem¬

trade of the Free World

be necessary to

industry, although industrial
statesmanship of the highest order

—

coffers

5.8%

be required to counter such
impediments as increasing com¬
petitive pressures, both domestic
and foreign, constantly rising la¬
bor costs, and further government
infringement on private industry.

will

—

the

1957,

half would

liquor section,
apart from
edge in return offered
momentary elation over the
sharply lower, the reasoning extension of the tax-free hold¬
by bonds was dismissed as
grows, a sudden increase in
being only an indication of the
ing period for bonded whisky
traffic could show dramatic
uncertainties still circling
from eight to 20 years, has no
significant change in profit
earnings rebounds. Some have
over
future
actions of the
had little in the way of sus¬ margins until 1959, when a defi¬
maintained earnings at a com¬
improvement
can
be ex¬
tained following even though nite
monetary
authorities.
fortable level through the re¬
the tax change could drastic¬ pected. With reference to dividend
Investment funds continued
cession and Northern Pacific,
payments, a majority state frankly
to show up in addition to the
ally affect the fortunes of the that they expect no significant
helped along by its outside in¬
free cash
last reported at
company. Schenley had a hard change either during the re¬
terests in oil and timber, is
time from 1950 on when it mainder of 1958 or next year. It
around a billion dollars
in
is interesting to note, however,
expected to show earnings
to match. Now

The

below the first half

level 4.4%

Miss

With reported sales

year's record.

outlook for the industry.

Difficulty

Growth Industry

twice during the past
decade, in 1949 and 1952, have
sales of chemicals and allied prod¬
ucts failed to exceed the previous

Association,

in discussing the

commitments.

research

"Only

"It appears that the bottom of
so, if investment favor,
long lacking, should concen¬ tfye .1957-58 recession has been
trate on the petroleum divi¬ passed and that an upturn should
be
obvious during the final
sion at some
stage in the months of this year," observes the

Removal of Liquor Tax

the

increased

larly

future.

even

half

Manufac¬

Secretary,

the

turing C h e m i s t s'
Washington, D. C.

Such spending for 1959 will
greater, with more than
respondents indicating

year.

are

pinpointed, plus the passage by
"Chronicle" They are presented
Congress of the recently extended
and liberalized Trade Agreements
as those of the author only.]

Sales and Inventories

and

chemicals

"Sales

allied

products reached an all-time
during 1957, totaling $23.4

high

billion,

according to revised U. S. Depart¬
ment of Commerce figures. While
this dollar volume represented a
2.8% gain over 1956. it fell some¬
what short of meeting the sales
increases

of the two prior years.

brought
margins
to many companies, the continued
growth in sales made it possible

Although mounting costs

considerably lower profit

for over-all

ical

earnings of the chem¬
to compare favor¬

industry

ably with earnings of

other indus¬

tries in 1957.

"Chemical manufacturing, which

supplies all branches of American
industry, felt the deceleration to
a
greater degree > during
early
1958, as a
tion

industry

gen¬

chemical

companies

whole found that

their busi¬
better than

erally.
as

corollary to the situa¬

American

But

ness

volume held up

that

"The

the over-all

Federal

economy.

Board's
production ac¬

Reserve

index of chemical

tivity averaged 184 (1947-49=100)
for 1957, a 3.9% gain over 1956.

production index for indus¬
organic chemicals averaged
in
1957, 3.5%
above 1956;
basic
inorganic chemicals aver¬

The

trial
204

aged 202. 6.8% over 1956.
"The downward trend in
eral

business

gen¬

activity during the

early part of 1958 was reflected in
Cnntin.uprl nn naoe 28

Volume 188

Number 5778

The Commercial and Financial
Chronicle

(1117)

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together, they're solid

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your

These
water.

two

liquids

quickly turn into
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many

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Yet when poured

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out

Harder than

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are so

hard that they

airplane wing sections and other varied
shapes. These dies are molded in about

half the time it takes

dies

equipment are em¬
epoxies to protect them from
moisture and vibration. And, in durable
tableware, epoxy adhesives seal knife
bedded in

blades in their handles with
permanent

stronjr,
ifc>'

bond.

are

huge dies that stamp
automobile trunk lids and hoods,

Delicate parts for television,
radio,
and other electronic

and

make the

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...

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even your
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day. Write for Products and Processes'"
many

booklet G. Union Carbide

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The

ment

Financial Chronicle ..; Thursday, September

18,1958

Role in
Instalment Credit Financing
By PAUL

EINZIG

into instalment

LONDON, Eng.—For
were

minds

their

a proportion of this charge
explained on the ground of the
high cost of collecting instalment
payments. Even allowing for this

financ-

Eve r

1954

since

Schwab has been since 1928 and was named
member of the Chase in 1932.
Bank's Thirty-Fourth
v *
*
*

Charles

they had been

will

houses

the

would have
they
reduce their loans to the

ing system, it has become possible
to eat one's cake and keep it.
If

taking a keen
interest in the

depositor transfers

Am erica n

from

system under
which a large

bank

his balance

finance house
that the banking

it does not mean

Manhattan

banks

receive loans
rates below

from
those

Banking Department.
Mr.

at present to

pay

make

York

Rivpr

concerned will

banks

the

scence

expansion

the

of credit
The volume
remained unchanged but the rate

volume

bank, the Midland Bank*
went further. It adopted a system

of its turnover

British

increased." -

.011

Savings

Wmle interest

the

half

Department,

rpj-jg

bank currently

Anybody who knows how conservative British banks are must

of attitude
For some
recently the
considered it beneath their

realize that this change

has been revolutionary.
obscure reasons until

banks

dignity to 'Have anything to do
with instalment credits. The giants
High Finance kept aloof from
such "low" finance. The result of

aloofness

their

was

both from the point of

unfavorable
view of the

In Anril,
1954, he was appointed Assistant
Cashier 'in'* the 'Banking Department. !

vate interest.
A

large number of independent
houses
had
established
in recent years. Al-

finance

themselves

most of them are small
total of their activities is
considerable.
From the point of

though
the

sum

view

the efficiency of

official

very

the

them.

not affect
to

attract

amounts

They were able

and increasing
private deposits by

large

offering deposit mates considerably m excess of those paid by

the

Vn^n
1949?

bank

was

and
.

November

appointed

M?Uon Bank

111 195^ At that time he Division.
was as"
signed to the Industry

slgned to the Industry appointed
Division,
In August, 1953, he was
In Au«ust- 1953' he was the Bank¬
Assistant Cashier in ^pointed
an

ing

Department.

Thf ^pveland National Bank,
Loveland, Qhio, .with c am m o n
capital stock of $75,000 went into
T

joluntar^.liqqidatinn.^e^r.c u3
tn*
CJ0S? °! business Aug 30.
Liquidating agent or committee:
TheF'rstNational Bank of Cin«

The
tional

MiIford

Na.

Bank, Milford, Ohio.

The

election

Edward

Lucius, as Assistant Trust Officer
°-( the s<>u'hm««r Bank & Trust

Company Chicago, 111E. has been
announced by Louis
Corrmg-

ton, Jr., President. His appoint-

a res

—

P°"T on the T™ squToZ-e, T;
T'm banks in 19d7 did
posed

worked

started his bjapkjng
Bank in 1930.
in various divisions

Mellon

large extent they escape
control of official monetary

ment will take effect immediately,
* * * 7
Cathai lne^Gl^irma
By a stQCk dividend, the comBt^rd^of Dollar Savings hmon capital, stock of First NaCity ofxork, tional Bank of Joliet, 111., was
ImS increased from $750,000 to $1,000,'-'
LloyaF. Deippse>vapd QOO, effective Sept. 4 (number of
h
outstanding
100,000
asvpenior;.; vice- shares, par value ,$10).
f
of wliom weie
fon^erly Vice-Preside ts.
and:.Miss Alice . Permission-, was ..'granted ..by the
.v »,.v.
n a me d Vice- Comptroller, of the Currency to
commercial banks that control policy will be that it will be no Pi"«sldents in addition .-.to
National Bank^of Morton,
them have to comply with official longer really necessary to regit-' titles-of Treasurer andxSecretary, Morton; III., to open a new bank',
late it by imposing a -minimum, respectively.;! Edward A7 Reisner,.
bank has a capital of $200,000
policy,
it
is
true
the overwhelming deposit or maximum period of Te1- vfeLmerly Assistant Vice^-Pi^ide ty ancj a surpius 0f $505,854.77. " Ft.
majority of smaller finance houses payment. The change cannot1'be was alsa elected a Vice-President. ^ Reuling is President and Chris
overnight,
because
a -^IanD.Smnh, ^neretotore, an t. Getz is Cashier. Conversion of
will remain independent.
They effected
large
proportion of instalment:*.Assistant, CcMnptrolIer^was. named
Morton State Bank, ^Morton,
are not sufficiently known, how]]| ( -to"-take-effect as of the close
ever, to
enable them to attract business will continue to remain - Copptroller. ^
very large deposits from the puboutside the control of the;hanks
..i
„
of business on Aug. $0.
j
Commercial State Bank & Trust
■
*\
.
f
lie. Most depositors would con- and
of
the
authorities. Since*

is
great disadvantage!.because to sider it too risky to entrust their

monetary policy their existence

Mr. ,
t;w„ Haley
career

five of-

replace the

be beneficial, because it will tend the high percentage they reprep
$
f. '
to make the
official monetary sent. The unfairness of this dis^
policy ..more effective. These lead- tinction has often been poipted r „Robeft ^L
ing finance houses will be no' out but it has been disregarded ®f Ihe
longer in a position to disregard even by the Labor Government,
the instructions given by the Bank in spite of the fact that' the bur-:
n
of England on behalf of the Treas- den falls on people with modest /W. Christy,
ury. If the official policy aims at means
Edwin J. Hoskms
One of the consequences of the Presidents,
1
restricting the volume of credit
these firms will no longer be able possibility to regulate the volume
to circumvent it by offering un- of AiiavaAiiicni credit with the aid'
instalment uwu wm. wrc.«lu
Robert,Weiss ,
- :J
duly high deposit rates. For the of the normal devices of monetary Damseaux were

public interest and of that of pri-

celebrating

noth anniversary has

in the Credit Division.

dollar mark in
Sept. 11

consumers'

' j

Gilpatrick came to Mellon
Bank in 1953 as a financial analyst
Mr.

"personal credits" under which vImproves Banking Control
durable goods are fiFrom this point of view, control deducted.
This means that the
or. about Dec. 1 to
nanced with bank credit repay-, of banks over some of the leading burden of these charges is even outgrown-55 John Street'office
able in instalments.
7
hire-purchase finance houses will heavier than, would appear from ■
s ■ n
her 4053 , 7
-

of New

Bank

coming; to Mellon
,-i;;
- 7 V. * *',
j

billion

deposition
.■

credits.

instalmei]^

City

Ralph B. Gilpatrick,- Jrr, Robert
Haley and George: A. Shaw
been
appointed 7 Assistant
Vice-Presidents in the Banking

New

Bank

paid on bank loans f.T
.
York Citv and is
is deducted from taxable.incomes, "^ announcing the 0r,enihg of an
instalment credit charges are not
on

before

bank reached

result °£ thC
change, the Government will also
change its attitude towaids taxing
a

was

iNoveuioer,
Assistant
pension fi*ust Cashier in the Banking Depart- >
;
,

Deductions Inconsistency

Possibly

1957,

have

Chemical

Tax

Mellon

came.=

...

Bank.

feel

National

The

Confronted
with .such
competition the smaller finance
may

1956.

assigned to the Banking Depart¬
ment as a new business analyst.
Mr,
Karras was associated with

charges.
houses

Karras

Bank

again will enable them , to
further reductions in their

over

indirectly engage in the financing
of instalment credits. The biggest

Branch Advisory

street

compelled - to
system as a whole will hold less amalgamate into larger firms and
proportion of
deposits as a result of the transac¬ to seek to establish contact with
such financing
Arthur J.? Meuche
Josepn
T. Hewitt
tion.
Each finance house has an
some bank.
is done by the
account with at least one of the
Apart from any additional re¬ announced on Sept. 15* by Harold
commercial
clearing banks, and the check re¬ sources obtained in the form of
banks. After
H. Helm, Chairman.
,
>
ceived from a new depositor is
Dr. Paul Einzig
bank advances, the finance houses
much hesita¬
Mr. Hewitt joined the bank in
paid into that account.
which have come under the protion all Brit¬
1929 and rose through the ranks
This means tnat, even though tection of a leading bank will be
ish commercial banks decided to
to become an Assistant Vice-Presiable to raise money by means;.of dent in igsi.VHe is a member of
adopt gh intfamount may become transThis has.-already the bank's,Metropolitan Division,
Although most, of them continue ferred from one bank to another, capital issue.
to abstain from engaging directly the banks as a whole retain pos- been done by one oi thm finance* freadfflffitJftd' at? 34thStreet &
concerned, and it seems 5th Avenue
in instalment Credit financing on session of the deposit, although houses
Mr
Meuche, who has specialtheir own account, they acquired it now represents a balance on that the Tieasui^ has *o objection
,
.
ih
nprmion trust field
substantial portions iii the share account
of the finance house, to the public issue ot shares for .
ihnt rinvnnsn
lzed in the pension.,irusi; Iieia
capital of finance houses special- There is no need for banks to reIndeed
the
authorities
have 3oined in 1950t ^ a is the author
lnaeea
tne
auinoriiies
nave officer
He
izing in such operations.
duce their tendings since they
The Commercial Bank of Scot- possess the same amount of de- every reason to welcome the new
, iic;.irf,p„Fl,i Pension Planning"
land was first in the field but it posits as
before. On the other development which is likely to go
d m
articles on retirement
took four years before other com- hand, the finance house can in- a long way towards tidying up the .
, nrofit-sharing programs - Mr
mercial
banks
made
up
their crease its lending because it pos- untidy situation which has devel- Meuche continues with the bank's
minds
to
follow
its i example, sesses an increased amount of oped in recent yedrs. The British
Within a week at the end of July deposits.
All that happens as a ideal of a sound banking system Broad Stl-eet
r 7"
four out of the seven largest banks result of the
change is that a is to have a small number of large
Dr Judson L Anderson has also
The
creation
oi
many joined the Oil and *Gas" Departacquired an interest in higher formerly
idle deposit becomes banks
mcai torn
t
f Chemica, Corn Exchange
purchase finance and the remain- converted into an active deposit, small finance houses was contrary J
to this tradition.
It entailed v— Rank it was announced Sept 12
the
ing three followed their example. The velocity of circulation of bank
With one exception the control deposits increases, which produces risk of failures—something fun-7^ Mr ii
Helm
y
'
' «
*
*
acquired over the higher hire- the same effect as an increase in heard of in British hanking hispurchase-finance houses is far the volume of bank deposits. This tory over many years.

which

Auditor

depositors.
They will be able to reduce their
same extent as the hire-purchase
charges to borrowers and thereby
finance houses
increased theirs. to attract a larger proportion of
In reality, under the British bank¬
sound business. The higher turn¬
had to

credit

CAPITALIZATIONS

CommitThomas P. Eddy and James C.
^
^ has been announced by Karras have been appointed Asceorge Champion, President
of sistant Cashier: in the Banking
the charges are abnoimally high.
bank.
Department of Mellon National
They add considerably to the cost
*
*
* '
Bank and Trust Company, Pittsof goods bought against deferred
Joseph T. Hewitt and Arthur J. burgh, Pa., Frank R. Denton, Vicepayment.
Meuche have been elected Vice- Chairman of the bank, announced.
Banks are not likely to allow Presidents Gf Chemical Corn ExMr. Eddy came to Mellon Bank
the finance houses under their change Bank, New York, it was vin 1950.
He worked in various
divisions throughout the bank and
control to maintain such abnormal
in
1957
was
assigned
to
the
charges. For one thing the finance

banks

the

that

Bankers

and

REVISED

It is appointed

reduced
it would
not have affected the effectiveness of monetary policy. All that
would have happened would have
been

25%.

and

true,

something posits of banks became
to a corresponding extent

t a 1 me n

between

deductible privilege as interest

in-

towards

CONSOLIDATIONS
NEW BRANCHES
NEW OFFICERS, ETC.

charged
usurious . interest
amounting
to
something

bank loans.

the leading British
unable to make up
about their attitude

like four years

banks

News About Banks

At present they

rates

are

new

paid

instalment system.

through, heretofore, independent, finance houses
to mate official monetary policy effective. In explaining

will be accorded the same tax

able

degree of control over the fi¬
nancing of instalment credits.
The change in the attitude of
banks is bound to be beneficial
also from the point of view of
consumers buying goods under the

credit financing
should tend
this,
Dr. Einzig also makes clear that finance houses will no longer
be able to make abnormal charges, and that they should be
able to raise money by means of capital issue. Notes that this
policy will reduce the large number of small finance
houses. Wonders whether interest charges on instalment credit
of British banks

The entry

that

will

under their
the authorities
exercise a high

houses

finance

control,

British Banks' New

Commercial and

(1118)

money
nance

some

iittle-knoWn fi-

credit

Exchequer .stated
future the volume of

,be

would

controlled

110,

through imposing a limit on their
t6tal
but
through "compelling
banks t0

deposit

proparfion.

.....

0f New York received
National Bank of Detroit, Mich.,
witrr jne approval to increase! the capital elected Ray R. Eppert a Director,
credits by stock from $2,276,725 consisting of .
, '
*
«
)
Company

however,

interference
instalment

terms

house

In a recent statement the Chan-

cepor

means

of official

policy

device

of 470.563

.'N

accordance with ythe of $5.00 each.

of the

efnment
that

.a,

.....

,^)ah;Value of
Citizen Union National Bank &
'Lf-efof.he w^iu! ^Conn^y. Lexington, open
Ky.,
shares o± the pai value was granted permission to

91,069 shares of the

regulation con-

SLt^vice rrhylal

Conservative Gov--

renounce
as

soon

the u^e" 5U '
it becomes

Otto

'Trust

new bank by the Comptroller
of the Currency.^ The bank has

*
*
Salvesen* of The

County a capital of $1,000,000

Company,, "White

Plains, plus of $1,294,133.96.

and a sur-

Ernst S.
Clarke is President and J. W*

people, their resources with the Bank of nracticable without rnntprtallv N- Y-, has been promoted to Vicepiacticaoie
without ...materially, Pre&idght and Auditor from As- Bratcher is Cashier.7 Conversion
transferred ,their deposits
from EngIand. When that device is ap-weakening of the effectiveness -of sistant Vice-President and Audi- of Citizens Union Bank & Trust
the banks to these finance houses. plied the banks will have to curmonetary policy.
:s> tor. He has been with, the bank Company, Lexington, Ky; to take
If this had meaftt that the de- tail their facilities to the instalbanks.

As a result, many

Volume

183

Number 5778

The Commercial and Financial Chronicle

(1119)
"

effect

the

business

Aug.

30.

&* -• •'

" v;
"p

• •

•

Other

$30 Million Issue of

lr Williani W. Hibberd, formerly
Assistant Vice-President, has been

Los

promoted to Vice-President of the
Trust

Company of Georgia, At¬
lanta, Ga. Mr. Hibberd is the rep¬
of

the

bank's

Bond

underwriting

formed

the

headed

groups—one

America N. T. &

The
of his promotion

ment

after

announce¬

meeting of the

Directors

made

was

Board

Thwaite, Jr.,

President, who explained that the
move

was

recognition of the
increased importance and activity
of the New York office.

Mr. Hibberd had many years of
experience in bond houses in New
York
before
j oining the Trust

Company of Georgia

ago.

year

He had also been in the Bond De¬

two

by Bank of
A., the other

offering
"

P. Morgan & Co. Inc.;
Blyth &
Co., Inc.; The First Boston Corp.;
Smith, Barney & Co.; Security-

First National Bank.

Chicago; Chemical Corn Exchange
Bank; The Northern Trust Com¬

premium of $244,979 for the issue,
resulting in a net interest cost of

pany;
& Co.

3.68% to the county.

R.
H.
Moulton
&
Company;
Glore, Forgan & Co.; C. J. Devine
& Co.; Merrill Lynch,
Pierce, Fen¬
nel* &
Smith; The First National
Bank of Oregon; Seattle-First Na¬
tional Bank; R. VV.
Pressprich &

Sept. 16

issue

Public
is

reoffering of the bonds

being*made

prices to yield

maturity.

Mo.

v'}

bonds due May 1, 1959 to 1983, in¬
clusive. The merged group bid a

awarded

Company

Louis,

National

$30,000,009 Los Angeles County,
Calif.,
Flood
Control
District

was

partment of the Mercantile Trust

St.

First

American Trust Co., San Fran¬
cisco;
California
Bank,
Los
Angeles; Continental Illinois Na¬
tional
Bank
and
Trust
Co.
of

by The Chase Manhattan Bank—

from 1.75% to 3,75%, according to

The

of New

syndicate

merger

Department at 15 Broad Street in
City.

Angeles Ceunty

New

York

of .the

City Bank
York; Bankers Trust Co.;
Harris Trust and Savings
Bank;
Guaranty Trust Co. of New York;

Unit Bonds Marketed

resentative

members

syndicate include:

"•

•

Lazard Freres & Co.; Drexel

Co.; The Philadelphia National
Bank; Equitable Securities Cor¬
poration; Bear, Stearns & Co.

Earth.

Co.;

Co.; Ladenburg, Thal- named manager of the Corporate
Co.; Hornblower & Bond Department of J. R. WillisWeeks; Clark, Dodge & Co.; Ira ton & Beane, 115 Broadway New
Haupt & Co.; E. F. Ilutton & Com¬ York City, members of the New
pany.
A. M. Kidder &
law & Co.; Lee

York Stock

Co., Inc.; Laid-

Higginson Cor¬
poration; National State
Bank,
Newark, N. J.; Schoellkcpf, Hutton

First

National

sion

Bank

this

Exchange.

As head of

department, Mr. de Bronkart

will

responsible for corporate
syndicate and sales activi¬

bond

ties.

Pomeroy, Inc.; Shearson, HamMr. de Bronkart was an execu¬
&
Co.; Stroud & Company tive
with H. Hentz & Go. before
Incorporated; Trust Company of
assuming this new position. He
Georgia; Wertheim & Co.

mill

has

MIAMI, Fla.—Dale M. Reed
now

also

Courts

Joins Dayton Co.
is

connected with Dayton Com¬

pany, 7245 Southwest 57th Ave.

formerly Assistant VicePresident of the Marine Trust

Stuart, Fla.,

WilKston & Beane
Eugene H. de Bronkart has been

J.,

mann

was

Company of Western New.York.

de Bronkart Joins

Dean.Witter & Co.; William R.
Staats &
Co.; Mercantile Trust

Company;. Reynolds

been

Co.,

associated

Amott,

where he

was

corporate syndicate

manager of their New York office.

Stuart,

grapted permis¬
Comptroller of the

open a new bank. D.
S. Hudson is President and Carrie

has

Law

Cashier;

capital

The

$100,000

surplus of $517,433.28.

bank

and

Conversion

of Citizens Bank of Stuart, Stuart,

Fla., to take effect
of business
■;

,'j

'■

Joseph

elected

of the close

Aug. 30.

'■ '■

s]t

Barnes

has

Vice-President

been
of

Dania Bank, Dania, Fla.
77
"sfe.p''\r as'.;*"/ ,7:ri7''

the

California

•

Calif.,

Bank,

elected

Vice-President
Anderson

Los

Angeles,

Bo.vce

and

Smith,

Herbert

Assistant

Vice-

President.

At a special
meeting held Sept.
11, shareholders of Crocker-Anglo

National

Bank,
San
Calif., voted approval

dividend

Francisco,
of

stock

$10,083,205, equal to
presently
outstanding
capital stock, it was announced
by Paul E. Hoover, President...
The dividend, declared and an¬
25%

nounced

by the

directors

able

bank's

board

July 22, will be

pay¬

by the issuance of 1,008,325
of $10 par. value
stock.

shares
■Each
11

shareholder of record

Sept.

will receive

one new share for
each four shares owned. The stock

dividend
ber

will

increase

•4.033,300

amount of

the

num¬

outstanding

from

5,041,625/ and

the
capitalstock from $40,-

333,000 to $5^.416,250.7

-2

expected that the present
dividend rate of $L20 per
share will be continued on the
•increased number of shares after
annual

Oct.

1, 1958. *

FIG Banks Place Debs.
The FederalTntermediate Credit
Banks offered yesterday
(Sept. 17)
a
new • issue - of
approximately

$100,000,000 of 314% 9-month de¬
bentures dated Oct.1,. 1.958 and
maturing July 1, 1959. The price
is par.

was also announced that

issue already
outstanding with a
maturity of Feb. 2, 1959 was re¬

•

opened

for

total

$2,000,000
and sold for
delivery Oct. 1, 1958.
u
Proceeds
from
the
financing
will be used to refund
$126,000,000
of
3.65%
debentures
maturing
Oct. 1, 1958.
The offerings were
made
through John T.
Knox,
fiscal
agent, and a nation wide selling
group

From

Cyanamid research-new reliefforpeople with arthritis!

of securities dealers.

Today, through the

use of a major new drug, doctors are
providing more effective
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relief from
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This

Courts & Co. to
•;:».

Admit S. R. Harris

ATLANTA, Ga.—Courts
11

Marietta

bers

change

Richard

Street, N. W.,

of the New York

Oct.

Harris

will

development, which is helping so many people live more normal lives, is the
more than ten
years of research by Cyanamid's Lederle Laboratories Division.
This research is
continuing—with the aim of still further improvement. It is typical
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of people
everywhere.
result of

let,

a new

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ment,

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Rockefeller. Plaza,
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Ex¬

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ROCKEFELLER

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Co., and Sills, Fairman & Harris

Currency to
Belle

with

Baker

was

the

20.

and Financial

The Commercial

Continued from first page

elected

such

incentive to do the

See
We
government should play

IAs

about the part

in giving effect

•

must stand on

its

own

nucleus around

weapons

tain

each

majority of them
basis.
.
Today our military career men
are not paid what they should be,
with the result that some of the

expect a continifcttaon

best it can.

wouid

mean

the

that

case,

all
be

its own way—

question of

truth from the situation
too

what

credit

keep
more

now

simple

has developed?

Is it

on until a real disaster overtakes us—as it has done
than once with peoples and nations which thought

that

they had found an easy road to eternal economic
bliss? Of course, this is an election year, and we may be
sure that all we shall hear from the politicians is
claims and counter claims and denials as to what caused

quite

the recession—mild

will,

ernment

it was—and what cured it. There

doubt, be much boasting about the role that gov¬

played in bringing it to

that somewhere in this bedlam

end. We can only hope
still, small voice will be

an
a

plain, unvarnished truth about all this
the rank and file about where we are likely

raised to tell the
and to

warn

to find ourselves if we do not mend our

economic

ways.

the Russians. The

also found that half of our
spent trying to decide

Permanent Council

called, Jhe

Plans and Policies.

This new

in importance
with the
Legislative, Executive
and
Judicial
branches — would
branch

have

—

ranking

responsibility

planning.

„

overall

for

;

■

down : intomanageable by

'..f,

methods.

them

our

much the same manner as

handled two-

critical defense pro¬

our

present age of
missiles
and
hydrogen
In

the

On the other hand;
should give business

vances

in this direction just

continue.

that this trend will
of the

one

in re¬

it is to be hoped

cent months, and

For

prime strengths of the

from

begin the task of disillusioning ourselves about
the government can do and what tinkering with
can do to prevent or cure depressions?
Must we

soon

long

whether

private enterprise system lies in
the creativity of individual'con¬

make

$50,000 to $150,000 just to
a proposal on
a major de¬
fense
contract,
only
companies
with large

budgets can afford to

after the big prime contracts.
How would we like to prepare
our
defenses without the aid of

the
in

top

three

four companies

steel, motors, electrical equip¬

ment, chemicals, aircraft and

other

key industries?
"Big Business:
how

with

A New Era," tells

the Government turned to a

ness,

in our economic

gap

and

indispensable way to the strength¬
ening of our national security we
should, by an explicit and affirma¬
tive

national

policy,

and protect that

encourage

kind of Bigness."

There have been

multitude of

certain risk.

price

must pay to close

must be closed."
Ill

Need

for

Change

Posture:

life, con¬

tributes in an affirmative

the gap between ourselves and the
Russians on lead-time — and this

principle of Big¬

that the

carries
We must

Nation's

facing up to the long-range
to our security, we must

ourselves

adapt

situation

which, for us, is entirely new.
Throughout our history as a na¬

have grown accustomed
looking upon War as one thing

tion, we
to

and Peace

ing

ship between big and small busi¬
ness.
The charge has been made

as'another—and adjust¬

national policies accord¬

ingly.

prospered
by stifling small business. Noth¬
ing could be further from the
big

business

has

primary
Council would

formulate

be to

object

long-range

our

Now
1 Ad

craft,

find

ourselvels

con¬

Study Group on Manned Air¬
Systems
appointed by
Defense
in 1957.
Hoc

Secretary Wilson

•primarily to the future.

„

difference
between , this
Permanent Council-, and existing
,

The-

planning groups like the National
Security Council, the Office of
Defense Mobilization and others,
be

would

that. the latter, are

all

and
are
concerned with a particular
area rather than with the over-all

arms

Long-Range

threat

misconceptions about the relation¬

that

Permanent

tives,
policies,: .programs,; and
accept this risk and use our best strategy -as related to the total
judgment- on when to "freeze" needs of the nation. Unlike the
major product designs and go into other three branches of Govern¬
production. There are bound to ment, this new one would look
be some mistakes. But this is part

big business for help in massproducing atomic bombs. And then
he makes this comment:
"To the
extent

of the

in his book,

David E. Lilienthal,

that any de¬

staff of
\
function of this

supported by an adequate
specialists.
The

We must remember

cision about new weapons

business

sciences,

the

ucation,

management, defense, labor and
other important segments of nar
tional activity.
They would be

tractors.

warheads, when it costs anywhere

already created by efforts of the politicians
a very moderate recession, we should,
however, have to pay a stiff price for salvation from what
we need never have feared or been in danger of. It would,
of course, be better to pay the stiff price than to go the
inflation route—which in the end would cost a great deal
...

twice

achieve maximum

contractors

ballistic

and others to banish

not, learn a

systems—about

air-weapons

new

time

duction.

state of affairs

study group1 found

group

thirds of

go to work on various aspects of the situation other than
the financial facet. But it could still be done. With the

Can

are

breaking

largest

despite past sins. We should, of course, have to
avoid economic sins in the future, and we should have to

system

major branch,of our Fed¬
eral Government—one that might

fourth

present Supreme Court members,
Government .by joint agreement of the Execur
greater au¬ tive and Congress,: Hence, -they
smaller firms.
In two World Wars, large, com¬
thority...1 and
responsibility • | for would not be subject to the vary¬
panies have been one of the basic making (decisions • on ? materials, ing fortunes ;of political; parties.
sources
of 1 American
strengths 'components and techniques. There They - would
be selected 7 from
During World War II,; the ,VI00 have been some, encouraging ;ad¬ •among top-ranking leaders in ed¬

inflation

in providing
people.

a weapons
production.

suggest a possible approach to
this problem.
-:
I believe we should establish a

the average, it takes us
years to conceive and produce

ten

Business Needed

segments that are

not having inflation. Had we the hardihood and
the determination it is still quite possible to avoid further

then '

Heavy Price

But what of the future?

A Pentagon

effort to reduce
lag between the

more.

Russians

seemingly without end.

The
Legislative and
Judicial
ahead with the
have
reasonable con¬
effectiveness in defense, the role weapon or not. In other words, it branches
of business—both large and small
takes us as long to plan a new tinuity, but the Executive branch
does not.
The President has, at
—must be better understood.
system as it takes the Russians
In
our
free-enterprise system, to plan and produceit.;i most,. eight years; in % the-- White
House., .The average term .of a
we need
big and small business,
The problem
is complex,rbut
Cabinet officer in the last1 three
.working together to turn out thej U m
pro vein e nts ca n—a n d m u st—be
Administrations
has; : beeir . 3.?
-goods A that - each produces most? made,
'. ' ■:
-cV;:' ■
;
efficiently. We need big business
years.
In' these circumstances,
Business' approach should take there is little chance for continue
for its massive scientific and tech¬
into
consideration
all
the
ele¬ ous
study and analysis/of the fun¬
nical resources, and its ability to
ments
of
sound
management- damental
problems that Will con¬
produce in large volume. We need
planning, organization, integration front us five, ten or twenty (y ears
small business for its specialised
ahd measurement. There is a hatfrom.- now — or the best, policies
skills and its initiative in develop¬
uraltendencytokeepdoingthings for coping with these- problems.
ing new ideas. Without one,- the
the way we did them yesterday.
other would wither on the vine.
'•
This would be the; tiask (of !.tlie
Business must be willing to exper¬
Both are especially necessary in
Permanent Council on Plans and
iment constantly with new techr
our defense effort. The large com¬
Policies.; Council members would
Piques and adopt them whenever
panies perform a valuable func¬
.be appointed for extended, terms,
onexisting
tion by taking on major- projects, they //' can ^ improve

with the

having

that,

the advantages

the

—

and its actual

Small anil Big

which probably

It is plain, therefore, that it is mot merely a

conception

lead-time

Department deserve congrat¬
But a great deal more
remains to be done if we arc to

else

defense program, we

our

exert every

must

ulations.

good things of life. It would mean that some of
that advancing technology will make pos¬
sible in the years to come can not be as fully exploited as
otherwise could and would be the case.

ness

the

War

raged

total in our Way by short-term consideration^.
How
can
we
accomplish these
This is a pretty good in¬
aims
without
giving
up
those
dication, I think, that there is no
:>
stifling of small business and no things we hold dear?
This
is
the
most
important
shortage.of the spirit of enterprise
question of our time.
that has made America great.
While I do not claim to be an
I'm not for big business or for
small business as such — I'm for expert on the subject, I believe we
maximum effectiveness. Whatever need new and fresh approaches to
solution
of our Cold War
it takes—if it is good for the con¬ the
sumer and our people generally, problem. I believe that each of us
to suggest such apr
and if it is good for our defense should try
—let's do it! Let's do it with big proaches.: We must lift our eyes to
and small business!
'
-v ■'
I ' 'a more distant horizon,'! !/•'."* •;:% s-'
In this spirit I would like to
To attain maximum
effective¬

new

incentive for our key

generations
to ; the

time wise

14th. and :15th Cen¬
the Hundred / Years'
and the Wars of' the Roses

of the
turies when
days

history.

fense

private capital would quickly supply it. It would
mean that larger and larger numbers of people would go
into the unproductive office of the Federal Government
instead of working to provide themselves arid the rest of
or

been

throwback

step in the right direction and one
which Congress and the De¬

paying farmers to stay in that business and prodi^e more
of various articles than is wanted. It would mean that
large sums would be forced into housing
will not through the years be able to pay

—a

for

substantial part—a larger part

Another dif¬

recent Hot Wars
limited duration;

that

S^tates---the? largest

the

match

and

has quite

The Rockefeller

military pay law, based
recommendations of the
Cordiner
Report,
represents
a
The

Obviously, if business is to

and that is large enough in
conscience—of the current means of the people would
now

career

families find themselves.

all should like to have it, there
will be need in the private economy for all the funds being
currently saved. Now if, nonetheless, the Treasury is to
absorb an undue part of this flow of funds, then the ordi¬
nary operations of business must do without just that
much of what it would otherwise have at its disposal.
It

most competent officers are re¬
signing from the services. Many
in the prime of their years are
leaving to join the major corpora¬
tions because of the financial sit¬
uation
in which they and their

flourish and develop as we

than is

comprised in

highly skilled per¬

case

of . this;
to main¬

large standing Army,

very

serving on

equally cogent to inquire what would happen
if inflationary tactics on the part of the Reserve System
are avoided and the Treasury is left to get Its money from
as

•

One

Because of the permanency of
Report on
the crisis and the complexity of
the U; S. Economy points out that
the problems inherent in it, this
the total number of businesses in
this country has grown by 40% Cold War situation calls .for a new
sine,e; 1929-^r-everi while individual approach to overall, long-rangd
business units have become larger. planning. We must establish far7
We
now
have 4.2 million non- sighted objectives and plans which
farm
businesses in
the United will not be affected in a majo£

sonnel, with the

market

such as the airplane, the
afid the atomic,

Navy and Air Force,

But it is

the

nor

Hot Peace.

Hot War is that no one

truth.

missild,

weapon has 'changed ail
We now find it necessary

involved. Either the Treasury
feet and enter into competition with

another the very thing that was to be pre¬
vented or cured by the public policies which gave rise to
the inflation—namely depression—will be precipitated.
time

The

War

of the rise in
the pace at which they
elaborate at this point
upon the effects of such a course of inflation. It should not
be necessary to point out, as it has often been pointed out
in the past, and as history has so often demonstrated, that
one

difference between Cold War

ference

they were in World
advent of modern

emergency as

prices, and even an acceleration of
rise. There should be no need to

could

forces

that at bottom is not greatly different from the
greenbacks. In this latter event that is no reason

under the sun not to

full- War

but Cold War—or

which our fighting
be
rebuilt in an

that is
full Peace

situation

with

neither

political

National Security

saved

issue of

campaign basis
needful.

have

The Businessman and

Involved

private borrowers for a relatively limited supply of
funds, or the funds it spends must be provided through
process

will

Cold War may last for

Much more is, however,

;

or one

have

ballistic

More Is

•

Thursday, September 18, 1958

pulled the trigger.

principles of the so-called full employment act. On
the surface the question seems to be merely how the
Treasury is to find the funds it must have without large,
not to say massive, help from the Federal Reserve system,
which in turn poses the politically tinged question of
Whether there should be "independence" ot the central
banking authorities — independence, that is, which even
"demands that the Treasury stand on its own feet even as
business must do when it comes into the market to borrow
funds.

—

Continued from page

to the

fronted

that candidates

The trouble

•

Chronicle

(1120)

of the Executive branch

The proposed new Per¬
being in itself a
of Government, would
the independence and con¬

picture.

manent Council,

fourth
have

arm

tinuity that existing

bodies lack.
the whole

It would also encompass
broad range of

Government adtiv-

ity.
Although

would

have

the

right only to evaluate programs,
to recommend their implementa¬
tion

and

persuade

the

other

Volume

188

Number 5778

The Commercial ancl Financial Chronicle

(1121)
three

branches of

Government, it
deep conviction that, in
time, the new concepts and ideas

amortization of facilities and simi¬
• lar

levels of
^

would

society.

our

serve

ordinate

direction / at

and

inspire

long-

and

co-

this

program

of brain power and genius;
The

gested

implemented

and

should

because

approaches I have sug¬

new
—

both

for the

for, the long-run

made

within

the

moral,

political,

that

ready

modify

our

methods and programs when nee-

W Ossary.

■!/■;■

Because

their

own

experi¬

ence, business executives have the
utmost sympathy for Govern¬
ment's ?tremendous

problems

must

ple,

of the dramatic ironies

classless society has been achieved

by - the very capitalistic system
whose collapse he forecast as ''in¬
evitable."
,

consider

the spread in
between the least and the

wages

most

our

skilled

worker, manager,
soldier, engineer, or any other oc¬

its

propaganda,

Russia

■>.

has

boasted of its

econom ic approach
great triumph of advanced
thinking. In practice, our system
is
actually
the
one
that
has
brought about the highest stand¬

times

have

torn.

the

While

pay

those at the bot«*

United

States,

the

this

will

must remember

never

perma¬

NEWARK,

The

Communist
Manifesto
of
Marx and Friedrich Engels
opened
with
the portentous
words:
"A

specter

haunting

Europe.—the

specter of Communism."

Today
haunts

this

not

Cold

War

The

—

worried

tion,

Parker

past he

was

and

Currier.,

;

now

such

involved

fourth

inent

branch

;

-•

Joins Walston Staff

resolutely

For in this

must stay ahead

competi¬
—

stay alive. /

(Special to The Financial Chronicle) ;
v

LONG

& Co.

•

BEACH,

Swetnam is

with Walstorc

Inc., 210 East First Street.

■

Govern-

proposing.: It would
require action by Congress as well
as by the individual states.
am

However, so urgent is the need
our having a coordinated
pol¬
icy on every Cold War front that
,

for

I would make

tion

one

further sugges¬

interim

that

urge

I would

move.

over-all

our

planning

be set up immediately by
Executive Order.; In that way we
group

would begin
at

deriving the benefits

while steps

once,

way to

under

wer v

make, the CouncL

con-

stitutional agency.

The Next. Steps

&There

both

other

are;

that could

►

specific

steps
promptly by

be taken

Government

and

business.

??hese steps, I believe, would conmaterially to] achieving
ribute

•V the
r

;

changes needed in our defense
posture,
both"; short-range ' and '
long-range.. :'.v£
r;,] v*;

By Business:
(1)

Become

acquainted

the

fullest

possible extent with the
nation's military establishment to
the end that national

quirements,
-

security re¬
future,

present

and

understood.

are

•'
..

•.

(2) Take the initiative in identi¬

fying, defining, studying, and
solving the problems now facing
Our military! establishment.
•
X (3)

Come

ment

meet

our

with better equip-':

and

better

procedures

miltary needs.

j (4) Make better utilization
industry's engineers.

J (5) Make available more and
increasingly better scientific,
technical
/for

and

service

(and modernized plumbing codes)

managerial

with

people
Department

the

keeps

of Defense and the Armed
Forces,
serve for more

and allow them to

lot of

money

from going down the drain

;~than the one-year, period that hasv become standard.
;
V
V
.

.'f.v(6) Offer training
technical

Why do more and more plumbing codes sanction the use of copper for sanitary
drainage lines? Why the fast-growing preference for copper soil, waste and

programs

and

managerial skills
for military personnel to
help de-.yelop a better understanding of

vent lilies among

the way business operates.
*

(7) Voluntarily

after cotet

re¬

duction with
resolution, even

though it may

mean

less profit.

centives.
*
.

"' '

"'made with
"

•J,.( 1) Devise defense contract
terms that will offer genuine in¬
for

cost

reduction, early
delivery and peak efficiency.
(2)
the

Allow

reasonable

which
j

defense

were

rates

contractors:
of-

profit

intended and provided

by the law in order to make de¬
fense
in

work

adequately attractive

free economy.

(3)

Reimburse

contractors

all

thing,

copper

tubes

are

solder-joiiit fittings.

There's

•
.

;

The
-

AnacondA

furnished in twenty-foot lengths. That
no

are

Company

quickly, neatly and permanently
or caulking, so labor is less.

threading

Copper tubes eliminate rust build-up... smooth inside walls resist clogging...
hence they can be smaller in diameter than conventional ferrous
piping. This
avoids expensive extra-wide partitions, cuts carpentry costs, effects substantial

savings in floor

space

and headroom

on many

The American Brass

Andes
'

For your protection,

changes in plumbing codes are made slowly, carefully.
Yet hundreds'of communities throughout the country have
investigated,
checked and rechecked, and subsequently approved this
relatively new applica¬
tion for copper in building construction. Is your
community among them?
Look into it. And remember, this trend to

drainage systems illustrates

what Anaconda research is always striving for, throughout the entire Anaconda
line,.
new ways to do things better... more value for less
•.

Company

Anaconda Wire & Cable

jobs.

copper

for

legitimate costs incurred on
job, instead of ruling out such
charges as interest,
accelerated

-a

By the Government:

centive

one

meansiewer joints^ And these connections

"
'

.-You'd suppose it's because copper is lighter, smoother, longer lasting. And
right {you'd be! But copper drainage 'systems cost less to install, too—as
many builders will testify. / ;•
.;>'/■'*>:/,"*: ]
.]
For

lt (8) Do the best job possible re¬
gardless of any limitations in in¬

architects, plumbers, and homeowners coast to coast?

Company

Copper Mining Company

Chile Copper Company

Greene Cananea Copper

Company

Anaconda Aluminum Company
Anaconda Sales

Company

International Smelting

and

Refining Company
Cochran Foil Corporation

money.

Technical information

on copper

drainage iubet it arailableon request. Simply address Anaconda at 25 Broadway, NetvYork 4, N. Y,

!
>'

Calif.—Vernoni

now

establishing
of

with Powell

FAYETTEVILLE, N. C.—Hiram

hot retard our efforts to
point up
and solve these problems. ;
V
I realize, of course, the time and

effort

Staff

Co., Inc.. 120 Anderson Street.

Adjusting methods and programs.
Nevertheless, this sympathy must
-

In the

partner in Mueller

associated

Weissenborn,

Powell Adds

about

J. —Joseph

Inc., 24 Commerce Street.

the

is plain and

;

to the task.

are

has: become

P. Edwards is

challenge to

pointed.

with

grimly
but

world weary

and

Mueller

specter

only Europe

We must set ourselves

in America want
great

plenty for all,
that

take-home

barely 10 to 1.

great

ratio is

Parker & Weissenborn

cupation.

entire world

our

Joseph R. Mueller With

peo¬

whether

Hot War.

economic, mili¬

—

exhilarating

one

ladder

our

tary "and social problems requires

short-run

It is

nently achieved by reducing the
rewards

about remarkable advances in

the

leading their

most skilled workers, we find that
in Russia those at the
top of the

over-all needs of the'
country. The t material .welfare.

increasing complexity

living in the world, while

framework of. the free-enterprise
system, a system that has brought

also

of history that Karl Marx's social¬
ist goal of abundance for all in a

of Gov¬

^ While it is true that the,Rus¬
sians pose the primary threat, I
believe

ard

the Russian system is

people back toward serfdom.

short-range

ernment./"

'•.#•

opment of !; its
own
origination;
thereby releasing the great forces
available through the decentrali-

all

and

Encourage business to do
independent research and ^devel¬

The Council

planning in all branches

■

(4)

emerging; from such a top-level
group 'would
stimulate
greater

leadership

items.

58255 B

The Commercial and

Financial Chronicle

...

18,1958

Thursday, September

(1122)

first page

creases were

T,'*

support of the Inorganics --20 billion pounds/yr.
About
a
year ago
the average
strong research and development
price/pound of the aliphatics was
arm of ^he industry, coupled with
15d, of aromatics W, and of in¬
intelligent and aggressive leader¬
organics 2.5£. In 1956 petrochemi¬
ship, the industry will continue to
cals sales arounted to 4.2 billion
prosper.
dollars, and in 1957 they were 4.4
with the continuing

uing activity in this field.
Statistical information on

in agricultural

plastics,
synthetic
chemicals. 7
Among the many organic chem¬
resins,

icals,

rubber and organic
"

Outlook lor :

in¬
chem¬

Esso

three times. The largest sales

growth figures and profit
margins,
and
the
anticipated
growth patterns makes it easy to
understand the great and contin¬

torical

Continued from

derived

icals

the

from

petroleum

petrochemical industry—as dis¬
tinguished from the chemical in¬
dustry as a whole—is difficult to

which Shell has done outstanding

segregate. Consequently in Figure
2 a comparison is shown for the
entire chemical industry with the

butyl

work

are

isopropyl alcohol, syn¬

thetic

glycerine,
epoxy
resins,
alcohol and methyl ethyl
ketone. They have pioneered in
agricultural chemical field and
added a urea plant
to their nitrogen chemistry kit.
The
contribution
of
Shell's

petrochemical com¬
panies Esso (Standard Oil Com¬
pany of New Jersey) //was One of
the first' to make a big entry in
the
petrochemical field. Many
years ago, Esso manufactured syn¬
thetic ethyl alcohol from petro¬
leum via the indirect hydration
route using sulfuric acid as an in¬
termediary. Later butyl alcohol
Among the

the

and

in recent years

added to their list. Esso

ketone were
also man¬
ufactures "OXO" products which
and
Size of 4he Industry
billion.
are believed to have an especially
ture
In Table III a comparison is preThis year, total petrochemical
' *
growing field.
The figures are Chemical's operations to Shell bright future.
production will he about 40 billion sented for capital expenditures for compared for the 25 year period Oil's net income is not publicly
For
supplying the rubber we
pounds. Last year, petrochemicals new petroleum refining facilities 1931 to 1956 inclusive. The chemi¬ available. However, Shell's out¬ needed in World War II, several
with those for petrochemicals. It
comprised 26% of the U. S. chemi¬
oil and rubber companies initi¬
cal industry's growth of 10.8% per
is expected that the investment
standing record of net return to
cal production. Domestic produc¬
ated programs which led to the
in new facilities for the chemical year far exceeds that of the other
tion of all chemicals was about
gross sales, total assets, plant in¬ development and commercial pro¬
side
of
the petroleum industry major industries shown. The an¬
148 billion pounds. The value of
nual growth rates were 7.8 for vestment of net worth—however duction of synthetic rubber. Butyl
will exceed those for refining this
petrochemicals was approximately
natural gas, 5.5 for rubber prod¬ you want to evaluate its perform¬ rubber, discovered by SON.J, is
55% of the sales value of all year. It is expected that the form¬
ucts, 4.5 for petroleum, and 4.5 for ance with other oil companies— derived completely from isobuiyer will then exceed the latter each
chemicals. (Table 1 and II).
lene
and
isoprene. Nearly two
all industry. Growth is expressed
year thereafter.
indicates petrochemicals contrib¬
1
on the basis of pounds of product
years ago Esso Research and En¬
TABLE I
ute a significant share towards gineering
TABLE III
made each year.
announced
successful
Past and Future Petrochemical
of automobile tires
y production
Figure 3 shows the annual sales Shell's earnings.
Capital Expenditures
And Chemical Production
of the petrochemical, rubber, and
It is believed significant that as from butyl and declared that the
(In Billions)
(In Billions of Pounds)
petroleum industries. Last year
Petroleum
far back as 1948, approximately butyl tires have several advan¬
Petro¬
All
Refining Petrochemicals petrochemical sales amounted to
chemicals
Petrochem¬ Chem¬
4.4 billion dollars, rubber
(fin¬ half of the efforts of the Shell De¬ tages over those in present use.
icals
petroleum, rubber,
all industry to present a pic¬
of the size and scope of this

natural

gas,

ethyl

methyl

% of Total

1955

114.3

1956
1957

icals

Tear

25.3

1953

0.9

1954

26.5

114.6

1955

134.8

1958

(est'd)

1963

(est'd)

143

1957

148

1958

(est'd).

141

1963

(est'd).

205

0.8

1.1

$0.5
0.7
0.9
0.9
1.3

$0.8
0.9

1956

TABLE

Dollar Value

Figure

In 1960

All

Petro¬

Chem¬

chemicals

% of Total

Year

icals

1953

$3.2

S6.1

52.7

nual

——

the

it is expected that the an¬

rate

to the

goods) 5.5 billion dollars,
petroleum products 12 billion
dollars. The latter figure is based
on
wholesale prices before state
and federal taxes which are both

6.0

52.5

7.2

51.5

crease

7.8

$0.9

mately

3.7

billion

come

compares

They have also developed a proc¬
ess
for making butadiene fropi

FIGURE

the net in¬

dollar of net worth for
and Allied Prod¬

per

With

"Chemical

the

to.$

chem'cals

"Petroleum," and "All
Operations." The
figures represent an average for
Manufacturing
and

3956

and will in¬
"Chemicals
annually by

petrochemical field.

Comparison of Growth Rates of the Chemical
Related Industries —1931-1956

spending for ucts,"

of capital

equipment and plants in pe¬
troleum refining will be approxi¬

3.2

—

1955

new

4.2

1954

velopment Company were directed

and

capital ex¬
penditures for petroleum refining substantial.
and
petrochemical
plants
are
Figure 4
shown for the past two years and
In

estimated for the next five years.

(In Billions)
Petrochem¬

ished

to $1.1 billion

Allied

and

»■

for

return

The

1957.

natural

...

cas

■

Products"

13.4%. Petroleum
1963. Today capital expenditures
1956
55
8.0
4.4
1957
for new petrochemical plants are refining was 12.67c and all manu¬
57
7.9
4.5
1958 (est'd)—
believed to be a little greater than facturing 11.3%.
69
13.0
9.0
1963 (est'd.i
for oil refining; however, the an¬
Figure 5 shows the past, present,
The capital investment of the
nual rate of
spending for new and future expected growth rate
petrochemical industry in manu¬ plants in the field of petrochemi¬ of the "petrochemical" portion of
facturing facilities is presently es¬ cals in the next five years is ex¬ the chemical industry. The capital
timated at 5 trillion dollars.^ it is
pected to far exceed that for oil investment and production have
believed to represent 55-60% of
better
than
fourfold
refining. By J963 the annual invest¬ increased

f '

highest at

was

I':;;,:.: yy-

s.s

—

the

assets of

the entire chemical

petrochemical plants
industry. Since plant investment
may exceed that for new oil refin¬
in the petrochemical industry has
ing plants by 20%.
been increasing at a rapid rate, it
J Diversity of Ownership
is expected that the capital invest¬
ment in

new

ment in 1963 will be between $8,Petrochemicals are broadly de000,000,000 and $10,000,000,000.
lined as those chemicals derived
Petrochemicals
are
ordinarily from natural
gas and petroleum
classified -in three groups:
ali¬ sources.2
Today in the petrochemi¬
phatics, aromatics and inorganics. cal business one finds companies
In 1963, the estimated production
which not so many years ago were
of the different classes of com¬
established firmly
in petroleum
pounds is listed helow:
refining, * chemical manufacture,
Aliphatics -J53 trillion pounds/yr.
shipping, farm equipment manu¬
Aromatics
*7 trillion pounds/yr.
facture,
rubber processing, gas
1 In

1940 the

chemical

investment in the petro¬

industry

was

mere

lion.

$315 mil¬

from

1940

3957

the

doubled.

some

industry

high

3963 may

/l/oustay a s
■

than

rate

growth

all

1950

€

(wfi/u/tl rare of cao wth- rfrcfa/t

be in excess of 8 billion

dollars.

FIGURE 3

The

preceding charts show the
chemical
industry — particularly

1957

Sales of

Dollar

Petrochemical, Petroleum and

Rubber Industries

the

petrochemical segment—to be
growing and profitable.
It is characterized, however, by
high investment per unit of pro¬
duction and rapid
technological

both fast

The petroleum industry

ing

of the his¬

produces(wholfssfle) /z

petroleum

obsolescence.

is play¬

major part in the develop¬
petrochemical indus¬

ment of the

Here

try.

FIGURE 1
Estimated Capital Expenditures for Petroleum

1950. From

■

expected to continue from 1957 to
J 963. The capital investment
in

pipe line operation, etc.
Examination of

+ 5

pftaoceum

are

few interesting
successful

pubbbs&'" ishe 'o so ops) ss

observations concerning

Refining and

participation
petrochemical field:

petroleum

Petrochemical Plants

in the

company

Shell Oil Corporation

petrochemicals

a7f

The Shell Chemical Corporation
into

being in 3929. The 1956
production of this
wholly-owned subsidiary of the
Shell Oil Company amounted to 2
billion pounds with a sales value
of $213,000,000. In 1957
sales of

came

chemical

chemicals
in the

little

were

year

but

less

-4

1950

come

from
t

1956

the

chemicals

j*.

6/ll(0ass of pollers

were

still
in¬

gross

FIGURE

Worth for Chemicals, Petroleum
Refining and All Manufacturing
i

Net Income Per Dollar of Net

increased

•

2 "Petrochemicals

can

defined

chemical
leum

than

believed to be above $200 million.
From

compounds made with a petro¬
hydrocarbon as one of their basic

Actually the general un¬
goes beyond this
to include
hydrocarbons and other materials
derived wholly or in part from petroleum
but not generally
classed as chemicals.
Examples are ammonia made from nat¬
ural gas and synthetic rubber——a mixture
of hydrocarbon polymers.
Carbon black,
essentially pure carbon, is included in
components.

derstanding
pure

this

category.

/3-y

chem/c/9cs

\
•r

pftroleum pff/r/og-

n i

The

major
petrochemicals
are
am¬
synthetic rubber, carbon black,
ethylene, propylene, butylene, butadiene
for rubber,
acetylene, benzene, toluene,

monia,

styrene, polyethylene, phenol, formadehyde, acetaldehyde, methyl alcohol, ethyl
alcohol, isopropyl alcohol, butyl alcohols,
ethylene oxide, ethylene glycol, acrylonitrile, acetic acid, acetic anhydride, and
acetone.
The minor products are num¬
bered by the thousands."—Excerpt from
"PETROLEUM
Bulletin

AND

NATURAL

GAS"

556
Bureau- of Mines, p. 8. A
Chapter from Mineral Facts and Prob¬
lems by R.
A. Cattel and others.

•

all

h1anuf&ctv&/mg

'/3

ffrcf/vr

Volume 188

Number

5778

The Commercial and Financial
Chronicle

(1123)
butylenes
es

for

also
.r

and extraction process¬

recovery of butadiene

isobutylene.

•

and

Phillips
to

was

the

destroyed

rubber fields

•

each

year

disease.

Esso

Research
and
Engineering
has licensed patents
dealing with
the
production
of
a.

fungicide

which

having unusual success
in combatting crop disease.
In

1955,

petrochemical

sales

above any previous year and
amounted to approximately 6% of
were

total domestic sales.

Although

is-now

add

its petro¬

chemical activities.
With

natural gas

in the U. S., they
have an excellent position in the
petrochemical industry. The com¬

pany's activities include fertilizer,
synthetic
rubber
and
plastics.
Sales of petrochemicals were es¬
timated at $130,000,000 for 1955

substantially greater in 1956 and

they

1957.

1954.

of $150,000,000

excess

1953

they

were

than

$100,000,000.
Recently the Humble Oil Com¬

pany, an affiliate of Esso, disclosed
their
intention
to
manufacture

polypropylene. This

may well

up-and-coming plastic that will
enjoy huge growth.

and

believed

are

Within

three

the

are

1955

back it set

II.

Some

years

company objective

valuable

end

products. In the past decade, it has
become one of the largest pro¬
ducers of ammonia fertilizers and
carbon

black.

addition, it is
producing paraxylene and methylVinylpyridine for synthetic fibers,
and

duction

commercial

with

its

ethylene
sure

now

new

pro¬

type

poly¬
low-pres¬

new

petrochemical
to
is

double

present

process.

growing interest

number

ca¬

Gulf-developed

additive

agents, an example of
which is a superior rust inhibitor
number of other

The

the

from

the

oil

Oil

attractive features

including anti-

chemical

stalling.

very

Gulf's

other

interest

petrochemical

field

Port

have

now

terest

the

through
Chemicals,
Inc.

Goodrich-Gulf

They

substantial

butadiene

plant

this

Oil

Corporation have
been
primarily in the field of
ethylene production and distribu¬
tion

and

also in

the manufacture

location

owned

unit

second

additional
Last year
tion
was

manufacture

220,000,000
lbs/year.
their ethylene produc¬
close

400

million

pounds. It is understood that Gulf
is

not

before

their
ex¬

$100,000,000/year. :•/

The Texas
Texas

•

the

Company offers

owned

Standard Oil Company of Indiana

The

Standard Oil of Indiana's petro¬
chemical business is
only a small
portion of their total, but is profit¬

years.

these

and

increasing.

Dollar

vol¬

of sales by their new chemi¬
subsidiary—Amoco Chemicals

—1955

Among
are

about 50%

were

the

and
Oxo alcohols. At Texas
City, they
operate the first plant ever built
for
direct
synthesis
of
methyl
mercaptan for use in the manu¬

improve the quality of lubricating
oils.
They not only make the
greater

proportion

what

they
but supply large quantities to

use,

Last year it is believed that

into

production

over

year ago

by Kuhlmann.
Texaco has also done considerable
work on coal gasification.
In
its joint interest ventures,
the

Texas

Company is associated
American Cyanamid in the-

with

Jefferson Chemical

Company has been

Company, Inc.,.

Only

small

products

been

They

such.

amounts

have

used in the manufacture

mar¬

been

fuels,

and

specialty products
the company. Examples are the

manufacture

napthenic

acids,

sodium sulfonates, anti-freeze ad¬

with the United

States

Petrochemicals Investment

CfiP/T&L /NVESTMENT

major producer of ethylene oxide
and
ethylene glycol. They; also
produce and sell a considerable
number of other

products, some of
which, such as ethanolamines and
morpholine,
are
derived
from
ethylene oxide.
Texas-U. S.

now

owns an

and Production

tadiene

inhibitors.

Texas. It also

the

two

they

years

have

taken

steps to expand consider¬
ably their petrochemical program
with the

construction

lubri¬

owns one

Texas. The

other half

interest

copolymer

plant

owned

in.
the butadiene plant and the other
are

cating oil additive plant at Port
Arthur, Texas and a 180 ton/day

Goodrich-Gulf

ammonia

pany. Both of these

and

tives plant at

ammonia

deriva¬

In the
a

Chemicals

new

plant for the oxidation

of mixed xylenes to

/963 EST!N1 pre

*■ *

phthalic acids
—including
terephthalic
acid—
will be brought on stream. Tere¬
phthalic acid is used in the pro¬

1963 esr/wfre

duction of

JrJJ

J?57

Standard Oil Company of Calif.
The

/?SO

synthetic fiber.

Standard

California

/?so

Oil

has

Oronite

Company of

pioneered

the

of aromatics.

utilization

The

Chemical

Company3 (a
wholly-owned subsidiary) is be¬
lieved
to
be
the
acknowledged

IcSslSrJR the manufacture of do¬

y?fo
.

l
7

20
30

BILLIONS

FIGURE

material

made

8/LL /OA/S OF 00 L MRS

This

decylbenzene.

19 40

60
SO

by polymerizing proi5$ifn*to the tetramer, which is subse¬
quently alkjdated with benzene to
SO form
dodecylbenzene.
Dodecyl¬

OFflOUNOS/TEFR

Polyethylene Capacity in U. S.

benzene is the precursor to
the

one

major detergents.

The petrochemical sales of Cal¬
ifornia Chemical Company3 were
about $70,000,00 four years ago
and

were

BLACK

CARBON

$120 million last year.

▲

Cities Service Ind Continental
In

1927

Cities

Service,

SYNTHETIC

with

their natural gas oxidation
process,

manufactured

▲

formaldehyde,

RUBBER
V

NATURAL

methanol and acetaldehyde. In re¬
cent years

GAS

▲

Cities Service and Con¬

tinental formed a petrochemical
subsidiary called Petroleum

CRUDE

OIL

Chemicals, Inc.
Three

years

chased from
Lake

Charles

has

now

pur¬

the

government

butadiene

This plant has a

65,000 tons

P.C.I,

ago

the

plant.

capacity of about
The capacity
80,000

jJefovee/

—

per year.

been increased to

tons per year.

Cities
also
est

Service

purchased

and

pany,

Chemical Com¬

anhydrous

marketing
pany

company.

has undergone

pansion

with

purchase

Continental

controlling inter¬

in Mid-South

ammonia

This com¬
major ex¬

construction

additional

and

ammonia

bulk distribution stations, dock fa¬
cilities, and construction of barges
for

transporting

ammonia

EXECUTIVE

the

sissippi

CHARLESTON, WEST VIRGINIA

southern

Valley

and

Texas. P.C.I, has built

huge

Mis¬

am¬

monia plant for Lake Charles

SALES OFFICES

NEW YORK

BOSTON
3 A

subsidiary-

Chemical
1950

1952

1954

1956

1958

nate

1960

and

the

Co.

was

activites

California

called the California
organized to coordi¬
of

Oronite

Spray-Chemical.

HEADQUARTERS

number of terminals

Chemical

•

Com¬

jointly owned
Continued on page 24

Lockport, Illinois.

future it is expected

near

new

of the two

copolymer plants at Port Neches,

Products

that
v

undi¬

vided one-half interest in the bu¬
plant at Port Neches.

ditives, gasoline additives and rust

Company. Calumet
is owned
jointly by Indiana and
Sinclair Refining Company.

pPO DUCT/OA/

Rub¬

Company in the Texas-U.S.
Chemical Company. Jefferson is a

ammonia plant of Calumet Nitro¬
gen

in France.

The plant is owned

they

com¬

mercial operation on natural
gq9
is well established. The first fullscale operation on

other manufacturers.

brought

ammonia

Successful

ber

polybutene,

jointly

producing petrochemicals, as part
of its regular operations, for
many

keted

hydrogen for
gas.

and

they
are

two

pro¬

duction of

synthesis

companies.

lubricants

commercially

dodecylbenzene,

through

application

of the partial oxidation of
natural
gas and heavy fuel oil for the

Texas

1954.

over

petrochemicals

producing

simultaneously involved in

field

been major factors in the
develop¬
ment and commercial

started

participation in the petrochemical
Texaco is engaged in in¬
creasing its direct participation

and is

The

Texas
Company and it»
wholly owned subsidiary, Texaco
Development
Corporation, hava

heavy fuel oil

Company

interesting example of diversified

Ameripol rubbers and latex.

currently

manufacturing ap¬
proximately 9,000,000 lbs annually

will

years

field.

iso-octyl alcohol via the Oxo
In the early 1950's Gulf
entered the ethylene business by
building a plant to manufacture facture of methionine
,a new poul¬
150,000,000 lbs. of ethyiene/year. try feed
supplement. They are
Three years ago they completed
large producers of additives to
process.

The

Neches, Texas. The synthetic

rubber

cess

in¬

plant

plants.

many

petrochemical sales will be in

exclusively by GoodrichGulf, Inc. The latter company has
experienced increased sales of its

cal

petrochemical activities of

Gulf

supply the requirements of MidRecently they have an¬
nounced
ethylene and ethylene
glycol plants and also a butyl rub¬
ber plant. When these
plants are
completed, P.C.I, will have over
$80 million invested in petro¬
South.

able

profits

and gas operations.

FIGURE 5
U.

alcohol

exceeds

conceivable

earnings from petrochemicals
easily expand to the point
where they are at least as great
as

iso-octyl

demands

ume

the upgrading of many of its pe¬
troleum and natural gas hydro¬
carbons

two

could

Gulf

aggressive and successful op¬
erator in the petrochemical field
War

been

that

very

World

their

sales.

have

expected

Phillips Petroleum

Phillips Petroleum has been

since

the

years,

sales

that

pacity. There is

which also has

of the largest reserves

one

high-grade

and

an
important factor in
butylene, butadiene, and GR-S

their petrochemical sales have not
been published, it is believed that
were

Government-owned
and GR-S plants and

In the -U.,.S.
pearly ihree-billion
dollars .worth of farm crop^are

of the refiners

one

purchase

butadiene

AKRON

LOS ANGELES

CHICAGO

•

MEMPHIS

/:
Financial Chronicle

The Commercial and

matics.

/
/

a clear cut
example of this change in refining

Standard Oil Company of
/

Ohio

Standard Oil of Ohio is one

Premium

<_ratsoune:

newcomers

when their ammonia
plant at Lima, Ohio, was com¬
pleted. They also manufacture

years

ago

urea..

rremium

octane number of

today country-wide, is 98.5.
Some refiners are now marketing

line

super-premium

one

though the present and
future fuels do not come under
Even

the

octane.

this

The greatest

rise

single factor
in recent

octane

accepted definition of petro¬

TABLE

(Research Method)

Benzene

growth of ethylene as a chemical
raw material in the last ten years
has been

•

124

Associates Investment Company,-'

Speaker, Robert Oare. Chairman.

spectacular. 'Its -present1
the rate

■-/

o-Xylene
m-Xylene

120 ?
145

p-Xylene
Ethyl Benzene

146
124

Z,77l''>,v77

Society Members).

777777.4.''

contribute's 777777'77 October 16

creasing until it now
to

October

Stocks"

and is growing rapidly. Its
list of derivatives is Steadily in¬

year

Forum—"Analysis of Insurance
(Presentation by panel of

pouncls per

in excess of 4 billion

'f;> 1 /"r,

September ■ 18

annual consumption is at

Toluene

CHICAGO, 111.—The Investment

Analysts Society of Chicago has
late, which are largely burned as announced the following program
fuel for the internal combustion for
their
luncheon
meetings to
engines,
ethylene
follows
am¬ be held through' December.
All
monia as the second highest ton¬
meetings are held in the Adarns
nage material supplied from pe^ Room of the Midland Hotel.,
troleum
and
natural gas.'^The

Number of Aromatics

Octane

Company.
Speaker,'
nearly twice as many chemical
chemical
intermediates - as W. A. Hewitt, President. 777;.
&

Deere

and

Alkylate: The alkylation proc¬
whereby isobutane is com¬

propylene and butylerie. "
^
October 30 •.•.»•. ^
rapidly growing "mar¬
Rohm & Hass Chemicals Speak¬
is in polyethylene ers, W. T. McClintock, Tr easureri
high
octane
gasoline
fractions plastics. In addition to its well- Dr. F. Otto
Haas, Exec. V.-P./ '
suitable for blending with other established use for wire insula¬
gasoline components for aviation tion, film for packaging, pipes and :7:;:;~November 6 4:7777;./
El Paso Natural Gas.
Speaker,
or motor fuels, has been in com¬
bottles, it is finding new applica¬
Paul Kayser, President.; 77 - ■? ;.:7>
mercial operation for many years; tions in its low polymer foritis as
:t -i
This process uses either sulfuric wax substitutes. Production over :
November 20 77
7
Firestone:
Tire .'•/& ;
acid or hydrofluoric acid as the the
Rubber,
past several years and esti¬
Speaker, jG;: O. Trenchard, Econo*
catalyst. One of the constituents mated to 1960 is shown in Figure
mist.
of
'777'7.7.7/7 ;77 /7'7'
alkylate is 2,2,4-tri-methylUnless some far superior mate¬
both

olefins

with

bined

produce

ess,

The most,

ket for ethylene

■

years is the widespread use
of
petro- catalytic reforming processes. Ap¬ pentane, which by definition, is rials are developed, a >1.25 billibn '■■777.7-; ''7 December 4
7"' J
100
octane.
The
production
of pound per year production rate ■X Jewel Tea Company. Speaker j
proximately 1,500,000 barrels of
1
naphtha are being reformed every alkylate — and alkylation is cer¬ mark could be reached by 4960. G. L. Clements, President/
change that has been taking place
tainly a petrochemical process—is The above figure is intended to
day in this country.
7777'/
December 18
m
oil refining over the years.
currently in the vicinity of 350,000 cover the production of polyethy¬
Economic Forecast Forum. Fore-!
One class of compounds that is barrels
Petroleum refining is becoming
per day and is increasing lene
by both the low*pressure casts relating to business" condi¬

chemicals,
*

fuel of better

octane and in at least
instance as
high as 102.5

than 100

Fetrochemicals

to come. The average
premium gaso¬

many years

Engine

Internal Combustion

are

The lowest one is seen to

shown.

■

Ethylene: Except for petrochem¬
icals such as aromatics and alky¬

6, 7 and 8 car¬

molecule

per

vents.

the
aro-

practice. The following are but a be benzene which rates 99 octane
few examples which demonstrate and the two highest are m- and
this point.
p-xylene at 145-146 octane,

in the petro¬
Gasoline has become the world's
chemical field. The decision to en¬
greatest outlet for petrochemicals.
ter the rapidly-expanding petro¬
Years ago, this product was put
chemical field represents a major
together
primarily
by
brute
diversification step for Standard
strength and awkardness. Today
of Ohio... It followed, a compre¬
it is becoming more and more a
hensive study of product profit¬
matter of blending specific chem¬
ability,
market potentials, and
ical compounds for obtaining su¬
manufacturing processes. Stand¬
perior quality product. The octane
ard Oil of Ohio began the manu¬
race
in the petroleum industry,
facture and sale of fertilizers and
which has been in progress for
other petrochemical products two
some
years,
will continue for
the

atoms

bon

numbers

matics containing

steady premium gasoline is

give promise of
growth in the future.

octane

manufacture,

this

below

table

the

research

Chicago Analysis
i Fall Program

It is used for formaldehyde
antifreeze, .and sol¬

ing.

without a doubt

are

service.

Outlook for Petrochemicals

ventures

They

biggest petrochemical in

the

;;

Thursday, September 18, 1958

and is grow¬

lion pounds per year

of this gasoline is aro-

formance

■

Continued pom page 23

(1124)

paper

would be complete
without recognition of the gradual
chemicals

and more a series of

ical processing

chem¬

operations. Today's

Listed

of tremendous

in continually

help to the refiner rapidly.
improving the per-

(formerly Chicago)
1937—New York Stock

1949—San Francisco
No

Stock Exchange

Outstanding

Common

<•

12/31/57

■ >

of the last two
output of the petro¬
chemical industry has been nearly
ten times as great as in 1940. The
total assets of the petrochemical
industry are valued at $5 billion.
each

During

Fred Astaire Dance

the

years

Petrochemicals
of

one-fourth

our

annual

Burnside

Co.,

Inc.

offering publicly 299,940 shares
of common stock of Fred Astaire
.

Dance Studios ^(Metropolitan

invest¬

Willis

to
total chemical
amount

now

The

Studios Slock Offered
*;

New

and facilities York) ; Inc. at a price of $1 per
offering marks the
in the petrochemical industry, in share. > The
that obtained from a petroleum
the next five years will exceed first public sale of any securities
refining process — first commer¬ that for the
petroleum refining bearing the narpe of Fred Astaire!
cialized .17 years ago—has had a
industry.
The opportunities for : '•.Net. proceeds from the sale of
profound efiect on hydrogenation
growth are enormous and are ex¬ the shares will be used for exY
processes. All of the above proc¬
panding at such a rate as to assure pansion purposes,including the
esses fall
in this category. Since
By-product

■■

tions, the stock market, the bond
market, interest rates.' -

Conclusion

production.

tion) processes.

Preferred Stock, 86,490 shares1
/

are

Fischer-Tropsch
syn thesis, >, and
countless
reduction
(hydrogena-

Stock, 3,740,570 shares

4% Cumulative

chemicals

two

ing ammonia, methanol, Oxo alco¬
hols
and
modifications
of
the

Exchange

Bonded Indebtedness

vital
number of syntheses includ¬

These

1929—Midwest Stock Exchange

techniques.

and high-pressure

Hydrogen and Synthesis Gas:
Hydrogen and carbon monoxide
are two important petrochemicals
made from methane.

hydrogen

such

ment in new .plants;

•

A'BBOTT laboratories
Ma n ufacturing Pharmaceutical
NORTH

Chem ists since 1888

CHICAGO, ILLINOIS,

there

over

are

800

cubic

million

produced from hydroforming or catalytic reforming, it
represents a rich raw -material
supply. If a little work is done
on it, instead of being worth only
fuel Value,, it jumps to a value

feet per day
Dividends

1957..1.80

paid

1056.1.1.80
1955..1.80

1954..1.85

1953..1.80
1952..1.95

1951..1.95
1950..1.85
1949.

4948.

dividends

2.88

2.20

preferred

of us much as 40-50£ per

| 1949-2-for-l stock
split

fore, worth many millions of
lars per year

dol¬

to the refiner.

Synthetic Ammonia: Many years

{ 1946-2-for-l slock
split and rights

thousand

This product is, there¬

cubic feet.

2.40

1945.

3.25

1947.

1946.

An unbroken record

1.80

{ 1951—rights to buy

ammonia could lay no claim

ago

1941.

being a petrochemical. Today
it surely is one! What has brought
about the revolution in the fer¬

1940.

tilizer

1944.

| 1944—rights

1943.

1942.

1939.

4 1939—5% stock divU

1938.

dend and

rights

1937.
1936.

^ 1936-3-for-l stock
split
.2.45

1934. .2.50

{ 1935-33%% stock
dividend

1933. .2.00

industry—and particularly
in ammonia — is undoubtedly a
combination of several factors. It
is

customary
facts in

two

attention to
introduction of

to call

the

discussion of the rapidly ex¬
panding fertilizer industry: one

any

being the great annual increase in
population and
the other that
there is relatively little additional
land to be brought under cultiva¬

1932. .2.12

1931. .2.50
1930. .2.00

1929. .2.42
# On basis

of total number
of shares outstanding at
the close of each year.

An
increasing
awareness
that greater use of fertilizer was
the
best
way
to increase and

tion,

the productivity

maintain

of our

soil while simultaneously decreas¬

the cost of production
been largely responsible for
ing

has
the

fertilizer revolution.

that the
of applica¬
tion, if used at optimum levels
of other practices, would corre¬
spond to ten times the current
has

most

total

been

use

primary plant
implications
of
immedi¬

three
The

nutrients*
such

reported

profitable rates

volume

become

Most

oil

tion.

are using
ammonia produc¬

companies

natural gas for

ammonia

this

the

plant

may

methanol is
4

now

over

sium.

phosphorous'

1.5

and

bil-

potas¬

will

from

Astaire

Dance-Studios

Tournament.

Upon completion of the financ¬

outstanding capitalization of
will consist of 764,937. shares of common stock. !
-

lowest net score.
Another feature will be a "Holewith

tee is headed by

X -J.-

FRANCISCO, Calif.—Real

Equities,
Inc. has', been
with offices at 209 Post

Street :rto .engage

business. Officers are

securities

Scott Chand¬

ler, president; Gwinn H. P. Hum¬
special phrey, vice-president; and Lyle E.

Duncan, secretary-treaurer.;
sv;,-V^
Golf. Commit-;

Carl L. Mochwart
Trust.

of the Manufacturers

Phila.?Inv.

fWomen to Meet

PHILADELPHIA, Pa.

Two With Merrill
(Special to The Financial

Lynch

Chronicle)

Michael E. Starkwith Merrill Lynch,

now

are

Pierce,

Fenner

Smith,

6353

—

Marie

Weeks, Chairman - Entertainment
Committee,.. of
the i-t Investment
Women's

HOLLYWOOD, Calif—Norman,
man

(Special$o The Financial Chronicle)!

SAN
Estate

Cashiers' Di¬

member of the

The Association's

•

Form Real Estate Equities

formed

vision having the

•

be awarded

It will

in-One" ^contest

company

trophyVin
Fall ; Go If

the

Dance

St., New York, N. Y.

Ave. and 42nd

time, place a

competition

Astaire

"Fred

ing schools or methods of dancing
within a radius of 50 miles of Fifth

;■
Governors of the Association of
Stock Exchange Firms-will, v for

the exclusive
advertise

and

use

Studios" in connection with danc¬

William F. Dolen, . of
Libaire, Stout &

-7:77

'name

the

King,

first

July, 1958 from Fred Astaire

franchise

Sepb 18, at the White
and Country Club,

Co.

prizes.

for working capital.

used

Dance Studios Corp.,

Golf

President,

Fred

Haworth, New Jersey; it was an-' ing,
nounced
by
the
organization^ the

in Brook¬

lyn, N. Y., and one in White Plains,
N. Y. The balance of the proceeds

(Metropolitan New York) Inc. has
obtained for a period of 20 years

Thursday,

Club

announcesa t

Philadelphia,
- Fashion

Luncheon

Show, to be held at the Philmont
Country Club with Fashions/by
the Blum Store, Oct. 18, 1958.

Hollywood Boulevard.

Chiles-Schutz Branch

Co. has

Stewart

direction

Building

of Wesley

under

Radcliffe.

the

•\

Boettcher Adds !

*
.

Neb.—Chiles-Schutz
opened a branch office in

LINCOLN,
the

Nitrogen,

been decided upon, one

Associa¬
tion of Stock Exchange Firms, will
hold its Fall Golf Tournament on

the

location has not yet

exact

whose

Hold Golf Tourney

Eisele

additional

two

•

studio in the Belmont

Hotel, New;York City; and
dance studios

Plaza

The Cashiers' Division,

Beeches

dance

new

furnishing

and

construction

Cashiers Group to

second-largest-volume

product from methane. Production
of

paper.

converted to production of meth¬

anol,

The writer wishes
to
express
his
thanks to Dr. M. E.
Spaght of Shell Oil, Dr. Jerry McAfee
of Gulf Oil, Mr. J. K. Roberts of Stand¬
ard
Oil Company
(Indiana), Mr. L. C.
Kemp, Jr., of The Texas Company, Mr.
K. S. Adams of Phillips Petroleum, Dr.
H. L. Malakoff of Petroleum Chemicals,
Inc., Mr. W. C. Asbury of Esso Research
& Engineering, and Mr. W. F. Bland of
McGraw-Hill
for much
of the informa¬
tion
furnished
for
the
preparation
of
Acknowledgement:

K. Schwab and

ately apparent.

excellent future.

"f-

(Special. tOrTHEjPl^Wf^a^CHRONICLE) -

PUEBLO,

Colo.

,—

Cozzetti is now with

Donald

Boettcher &

Co., Thatcher Building.

Volume

188

Number 5778

The Commercial and Financial Chronicle

distributing .companies for, resale

Customers' Brokers

under

company's

Elect New Officers

clude

Alan,C. Poole of Hemphill,
Noyes & Co. was elected Presi¬
•

dent

the

tomers'

Association

Brokers

the

long-term

Cus¬

annual

eastern

the

New

in¬

markets

To Hold

York

City metro¬
area.
Principal customers
companies comprising The
Columbia
Gas System, "Inc. and

politan
are

Meetings

series

Educational

meet¬

ings, sponsored by the Investment
Women's
Club
of
Philadelphia,
will be held September 22,1958 in

Representing a part of its expansion program, the company has.: the Concourse Conference Room
received temporary, authorization of the
Philadelphia National
.........

Bank,

from the Federal PoWer

sion

Cpmrnis- Broad & Chestnut
construct additional facil-: 5^0 to 7.30
p.m. -.
which would ^increase ;the: 3;'1

Streets

from

ities

daily delivery capacity of its pipe -T Mrs. Margaret Lawrence, Finanline system from 1.980,000 mcf to >cial Analyst/Personal Trust De-

vS P'artment of the Philadelphia Na-

T-:/.:-//V

2,260,000:rricf.
'

Tii»->£k

enues of

8340,702,000 and gross in-

before

season

Those Two
Leo J.

Larkin

Albert

Club

Fi-

/These, educational meetings for

yp-;the 1958-59

Of Trust Co. of Ga.
William

payment of $5.00, if not registered
for the entire series.

Reservations should be made by

mail

phone with Miss Alice M.

elected
Trust

Banks
York

will be held

Hibberd

Bond

Your

•

Two With du Pont
;

Donald E. Shippy and Daniel W.

Desmond have become associated
as

Irving Lundborg Adds

;

registered representatives with'

the

Brooklyn and Radio City of¬

fices
respectively ; of ? Francis I,
CITY, Calif.—Ev-^
duPont & Co., member of the New
erett W. Wheelwright is now con¬
nected with Irving Lundborg & York Stock Exchange, it was an*
nounced/ -V
"
Co., 710 Winslow Street. V

;

REDWOOD

Important

Co., Secretary and Leo J. Larkin
Carl M. Loeb, Rhoades & Co.,

Treasurer.

Elections to the Executive Com¬
mittee include: David Bell, Herz& Stem; Daniel F. Davison,

feld

Hayden,

Stone

Co.;

Percy

Co. ,.rj

Smith,.. Hlrsch &

Tennessee Gas

System.

rtevkissi^qft^

public sale
wide

Sept; 16 by

The bonds

operation

value

great

over

'.-V.

There's:

telephone

distinct

users"

advantage for
the

fact that

and accrued, interest.

Of the net proceeds of the sale,
$16,000,000 will be applied 011 the
payment
of
outstanding
short-

Western Electric works for the most

WESTERN

part only for the Bell System, and

priced at 100%

are

proved? of

manyyears."-w;

nation¬

underwriting group managed

cui'ities Corporation, White, Weld
& Co." and Haisey, Stuart & Co.
Inc.

have

beVlm ej hon<isi;5%-%'

Its specialized abilities in

economics of centralized

nesseeGas/T^Hnsmission; Cojfirst;.
ee r m

manu¬

these fields and the efficiencies and

■

mortirn

Electric is the

facturing and supply unit of the Bell

:y Transmission 53<g%/ 5/
A!

"Western

All

are

ELECTRIC

reflected

means

the

efficiency, quality and long life in telephone equipment.

speed, clarity and dependability of

your

telephone service.

term notes issued

under

which

used

Were

the

down

additions, and

property
will

ance

drawn

be-added

against
the bal¬

general

funds.
v

The

bonds

are

non-refundable

lower rate of interest for five

U. S.

Government

when

called upon.
Because

defense

together. Being

and

telephone

com¬

pany's expansion program; $10,000,000 will be deposited with the
trustee under the company's mort¬
gage

the

revolv¬

ing credit agreement, the proceeds
of

for

service

are so

vital, Western Electric

must manufacture for the utmost in

dependability and long life without

undcrscas cables

are one

example of

long, trouble-free service.

to retire 91%

of the

ing

100.

General

range

redemption

prices

from 105.38 to par.
June

30,

1958 the

work

A further
search and

Western Electric maintains
two

warehouses

advantage is the
manufacturing

way re¬

arc

tied

throughout the country. You have

Laboratories and the local

seen

companies.

telephone

draftiatic evidence of the bene¬

fits of this arrangement

hurricane and other

Electric must be

at all times to

of apparatus
for

ready

produce 200,000 kinds

They

are

4.000
and

main

transmission

It also

There

field lines. Its multiple system line

begins in
Texas
into
the

producing areas of
Louisiana and extends

gas

and

the

northeastern

country,

company

sells

section

which

area

delivers

gas

the
to

are

great values in the

Western Electric setup.

tributes

way

office

supplies, and installs central

equipment.

would work out half

telephone

line,

loop lines
2,447 miles of extension and

important also in plans for

and component parts

telephone equipment.

company

miles of parallel

in fire, flood,

emergencies.

national defense.

had in operation a total of 10,086
miles of pipe-line, including 3,639
miles

BELL

thirty-

strategically located

purchases for the Bell System, dis¬

issue

prior to maturity. The sink¬
fund redemption price will be

can

closely with the Bell Telephone

Western
The repeater units in the new

how Western Electric must build for

calculated

part of the Bell

System, Western Electric

compromise anywhere along the line.

A sinking fund commenc¬
ing in 1960 and extending to 1978
years.

the

with

garten & Co., Vice-President; Al¬
bert P. Gross of Bear, Stearns &

Dixon/ Goodbodv & Co.; Frank
Dunne, Jr., Merrill Lynch, Pierce.
Fenber & "Smith; Alan K; Gage;
Pafrish & Co"; Leon S. Herbert,
Hayden. Stone & Co.; John Leavy,'
Bache & Co.; Sam Minsky, Hardy
&
Co.; Walter G. ' Peterson, Josephthal & Co., and J. Harold

the

MrJ

Department in New
offices at 15

City,

Telephone

cluded Gerald L. Wilstead of Hall-

been

Georgia.

representative

Gross

meeting. Other officers chosen in¬

has

Vice-President

Broad Street.

Mason, Schmidt, Roberts & Parke,
123 South Broad Street, Philadel¬
phia 9, Pennsylvania (KI 5-0650)
as soon as possible due to limited
space.

Company

Hibberd

(Special to The Financial Chronicle)

naneial Analyst o£ Philadelphia,

interest-; and Mother

deductions of $69,673,000.

lectures; or $1.00 for each
single lecture attended to a total

W. W. Hiktofll V.-P.

the

tional Bank, will be guest speaker.
Investment Women's

come

Monday of each month
exception of December.
The
Educational
program
is
open to the general public at the
cost of $5.00 for the entire series
of

4th

with

PHILADELPHIA, Pa.—The first

the

Consolidated Natural Gas Co.

the

Phila. Women's Club

The

contracts..

(1125)

TELEPHONE

SYSTEM

users

No other
so

well for

and the nation.

The Commercial and Financial Chronicle

(1126)

desirable

.more

Continued from page 3

faster

Hartford

stocks

like the hats in

are

store, there is one for
almost every occasion—in fact an

millinery

the

pot of gold at the end of the rain¬

Insurance Stocks Now For

Insurance

etc.

other words

The

found

stockholders

field,

than

holding

Hartford. *

growing

stockholders embarrassment of riches.
ate more amply in the meantime.
Selectivity is important, how¬
In investing in insurance stocks, ever.
There are 25 different fire
as with other securities, you must
and-casualty stocks which are
decide upon your objectives.
legal investments for Maine Sav¬
rates making an extraordinarily
Or take two other well known ings Banks, representing 21 dif¬
good profit margin.
ferent
insurance groups. Unfor¬
bow,

the

but

Home

Defense aud Growth
strong technical posi¬
The bear market in fire and

uniquely
tion.

casualty stocks

companies, Insurance Company of

began four years

in August of 1954.—and ended
The liqui¬
dation
accompanying long bear

ago,

in December last year.

While
rebound from the lows

margets has run its course.

enjoying

market, insurance
Stocks have done very little dur¬
of

bear

the

ing the past six months and thus
have
digested their
initial ad¬

Jus,t

vance.

bear

markets in

Insurance stocks usually last three
years

•

more,

bull markets

casually

are

Insurance

defensive

The
and

qualities

stocks

of fire

hope

now

They would actually
recent inflationary

apparent.

benefit

if the

enthusiasm

the

ket is ill founded.

stock

It is not

mar¬
unrea¬

sonable to suppose, therefore, that

taking

profit

occurring

market

slock

generate

funds

such

for

the

would

whole

defensive is¬

insurance

stocks,
which have not participated in the
sues

traditionally last for at least sev¬
eral years and sometimes longer. recent rise. As the Dow Jones in¬
We are in the early stages of a dustrials are poised for an assault
on
the all-time 521 highs, more
new bull market now.
cautious investors seem bound to
(2) Underwriting conditions are
seek
the
haven
of
insurance
changing slowly for the better in
slocks. | Ed. Note: A new high was
l ire and casualty insurance. It was
established on Sept. 15. | They are
the
catastrophic
underwriting
losses of the years 1954-57, the truly for defense at this critical
worst years in the entire history juncture of the market.
What can be expected in the
of American insurance underwrit¬
ing, which caused the bear rftar- way of growth? Let us take two
ket in insurance stocks.
Losses of the largest companies: Hartford
aggregated more than $1 billion,
during a time of prosperity in
American
industry as a whole.
There is every expectation that
underwriting will become pro¬
gressively better as the full force
of the corrective measures applied

Eire
are

Home

and

est

Insurance.

Both

the largest and strong¬

among

financially

the country.
Both! have very safe dividends,
Hartford's being covered 280% by
income

investment

America

North

Defensive Qualities Stressed

and

Home's

tunately, two of my recommenda¬
tions,
Continental
Casualty,
a
"blue chip" growth company and
Aetna Insurance, a "yield" com¬

Continental

and

the past 15 years.
its in¬

over

The former has increased
vestment income

dividends

218%.

by 452% and its
by

Continental

Insurance

other hand has had

the

not among them. As its
names
implies, Continental
Casualty does not qualify because

stockholders

investment income

pany, are

gain in

of 235%

casualty,

pre¬

ness.

Do you see what I meant

Aetna Insurance "fails" the

its

because

test

by inevitable long term
growth?
If Continental's newly

capital and

sur¬

plus is not at least 80% of its un¬
of earned premium reserve. Yet both
Newark be included, then the fig¬ companies
are
desirable — the
ures become 356%
rise in invest¬ former because it is entering a
new era of growth and expansion
ment income and 156%
in divi¬

acquired

affiliate,

Firemen's

Again the pot of gold seems to
the faster growing company,

go to

Company

and

involved

may

But what about current

profitable merger. It is difficult to

income?

Insurance

write

Continental

Insu

law which

tingencies.

North America yields about 2.3%

while

law with

much.

pany

choose

the

investor

must

to his objectives.

covers

all

con¬

believe the Maine

regard to insurance

stocks

plicity itself,

you

may

com¬

sim¬

good.

recall,

with four chief provisions: the in¬

Selects Stocks for Growth and

surance

;-V:/!,Yield

company

authorized

from

(1)

must

business

Maine; (2) at least 50% of its pre¬
must

miums

stocks I would include:

be fire and (3) not
33%% auto liability or

more than

Insurance Co. of North America property damage; and (4) capital,
margin im¬ 70%.
surplus
and
voluntary
reserves
Hartford Fire
During the past five years Hart¬
proved on average two percentage
must be at least 80% of the sum
Federal Insurance
points, contrary to- the reports ford's investment income has risen
of all fire unearned premiums,
St. Paul Fire & Marine
67% while the dividend has been
from industry generally.
plus
one-half
of
accident
and
Continental Casualty
increased 56%.
Here rising in¬
health
and
liability
unearned
Strong Defensive Position
vestment income has brought an
However, these stocks yield on premiums.
There has probably
Thus from the standpoints of almost immediate response in
average only 1.9%, are selling at never been a law which did not
technical market and fundamental higher dividends. Certainly a 56% 25 times last
year's investment in¬ eventually
require some amend¬
in
business
dividends
deserves
a
(underwriting)
condi¬ boost
come and at a premium on aver¬
ment
and
both
Continental
classification! age of 26% above last year's net
tions, insurance stocks are in a growth stock
Casualty and Aetna Insurance ap¬
peculiarly favorable position com¬ Home's investment income during worth or liquidating value. Rather
pared with most other stocks, at the same interval has gono»up 27% an expensive price tag. Yet over pear desirable of inclusion at the
present time.
the present time.
They can be while its dividend has remained the next 15
years, by 1973, 1 sec
f^id truly to occupy a strong de¬ unchanged.
During poor under- no reason why investment income
Examines Possible Pit Falls
fensive position. Let me
Recapitu¬ •vyriting. $!Ttiqsr: it
s.jfiPFGeustohlk. should, not advance 400% and
% Are there any pit falls in the
late some of the reasons:
ary
for insurance companies to dividends to stockholders at least
insurance
picture?
What about
(1) Insurance stocks have had maintain their dividends than to 200 %,
Is
that not an
inviting inflation or competition?
their bear market, the longest in increase them. When, prosperous p r o s p e c t
for those wanting
The disastrous underwriting ex¬
underwriting
conditions
return,
insurance stock history.

underwriting

profit

—

growth?

(2)

underwriting

The

losses

which caused the bear market

beginning
outlook

writing..
t

is
,

are

disappear and the
for profitable under¬

then

substantial

made.

are

creases

dividend

in¬

return

perience

other

condi¬

hand

living wage—is

look

yield—a

with

which

in the Home dividend.

Great American

(3) Unlike many other indus¬
Let us go back on the record a
tries, insurance is not plagued by bit further. Let us
•;•''
examine the
an over capacity problem.
five years immediately preceding
i;
(4) Nor has it an inventory those just reviewed — and these ;•
problem.

were

(5) Nor a labor problem. • (6) It is a business, in-other
words, that has had its grief, has
been putting its house in order

underwriting

prosperous

years

1943-52.

increased

71%

its

while

Hartford

investment

its

dividend

Fire

income

shot

•

Aetna

These

■

are

income
from

and

net

cost, the .companies

Inflation
_

discounts

cause

been:

has.

Claim

lash

hard

insur¬
taking

good hard look at their commis¬

sion

structure

that

their

have

decided

business

Commissions

go down.

mobile

and

cost

must

auto¬

therefore

business

have

been cut from 25% to 20% in most

sections of the country for future
rate filings. For the less desirable

business, male drivers, unmarried
and

under

years

geographical

many

age,

the

areas

com¬

mission has been reduced to 15%.
The
competitive position of the
insurance

companies

has

been

strengthened by these changes.
Is

there

any absolute certainty
underwriting will
become
profitable again so that insurance
stocks will again regain popular

that

favor? In the world of investment

there

nothing

absolutely

cer¬

tain.

of the

King of Siam.

be at least

a guide,
underwriting

able

always

unprofit¬

periods have
followed by exces¬

been

the

But if the

very

This is be¬

ones.

various

rating laws of
virtually guarantee an
underwriting profit over a period
of years.
And also because the

cause

the

states

which made for unprofit¬
underwriting, are gradually
reversed and changed so that un¬
derwriting turns profitable again.
Remember, no insurance company
is obliged to underwrite at a loss.
forces

able

Sooner
ance

later the price of insur¬

up, other adjustments
made, and the underwriting
ship rides on even keel again.

goes

are

Great

bull

markets

have

stocks

ance

always

insur¬
accom¬

profitable
underwriting
which have in turn fol¬
lowed depressed underwriting pe¬

panied

cycles
riods.

Ten

years

derwriting

fire

1948-49,

when

ago

became
and

un¬

profitable

casualty stocks

shot up 41% while the Dow Jones
Industrial Average crept only 11%

higher.

History could very well
itself.
Insurance
stocks

repeat

bought today or tomorrow would
look very cheap indeed compared
with

reasonable

1959t60,

expectations

for

root

the

diffi¬
risen

rates which

represent the price of the product.
It does not require much

And

say

top of; these two

mendations—defense

have

costs

faster than insurance

worth.

% "

the underwriting

culties.

yield on-T average
selling 12 times invest¬

ment

33%

j.\Y: ' -;;.•
'j ,y;\ :.*:v;;
j A'. * .r;.%

stocks

4.4%,

past

than $250 million.

Home'•!.•:
American

the

four years
lias been due to just these causes;

factor, I would
special favor upon the
tions in 1959-6Q could well bring
following five insurance stocks;
about a boost of at least 25-30%
Continental Insurance
%
underwriting

prosperous

the

nothing of 1973.
As;?■ defensive
investments
they
have great merit now. As growth
inflation
and
competition
plus
investments,- they are proven over
acts of God. The latter were the
the longer:term.; :• %y.%.%
: i
hazardous
hurricanes:
of
1954

the

Under

sively profitable

;

In general, I

r a n ce

yields nearly 4%, almost twice as
Again

panies;

times these past four years,
ance executives have been

past is any criterion, and it should

America.

Company

inroads

Aetna because its underwrit¬

tial

North

directly, without agents and
commissions, have also made
upon the old line com¬

ness

their

ing performance is improving, it
has a tremendous earnings poten¬

dends.

insurance

Thursday,.September 18,1958

Nothing is absolutely so, to
borrow, once again the language

and

ing the first half of this year the

Home's

net

150%,
earlier

during the past year is felt. Dur¬

and

its

chiefly accident and health busi¬

If F were assembling five great
Hartford's dividend is cov¬
growth fire and casualty insurance
ered an estimated 130% by income

alone

been

have

miums

180%.

bonds

50%

than

over

the past 15 years and its dividends
to
stockholders
have
gone
up

imagin-

recom¬

and

growth
-r-they are the cheapest in relation
to underlying values than at any
time in the past 10 years, except¬
ing during the bottom of the bear
market last fall.

;

There used to be a-saying "mil¬
lions, for defense, not one cent for
,r;

They are ation to observe..what has been
tribute." May I modify this to say
with long happening and to adjust rates up¬
—millions —or thousands or hun¬
and has none of the problems fac¬ income
of
50% while its dividend record
but their ward to compensate for this infla¬
dreds—invested for defense pur¬
ing other manufacturing concerns. soared 64%. Those were the happy growth has not been as great as tionary trend. The principle of a
poses
in insurance stocks now,
(7). If the substantial business times for stockholders of both the first mentioned group. The trend factor in rate making has
will in a few years prove a tribute
upturn which the stock market companies.
Certainly: there was dividends on this group are cov¬ now been introduced and
ac¬
to the wisdom, of those investing
seems to
be signalling does not no question then that both were ered an average of 200%
by in¬ cepted by almost all state authori¬ in them. And
please recall: the
vestment income compared jwith ties.
materialize,' it is not difficult to growth stocks!
'
v
Rates
are
now
based
not
payoff in insurance stocks is that
foresee disappointed selling in in¬
'Perhaps when we are talking of 220%
for
the
greater
growth upon last year's loss statistics but the stockholder'
does eventually
dustrial stocks.
Conversely, an¬ long term growth, we should go group. It would be reasonable to are modified by the
estimated cost and inevitably get paid—and in¬
other year or so of "recessed" back further, another five
years, assume that by 1959-60 and a re¬ of claim settlement in the future.
creasingly!
business conditions, with a cessa¬ making 15 years in
all, approxi¬ turn to profitable underwriting, The principle of the trend factor
tion
of
inflationary
pressures, mately half a generation. And yet the dividends of this group would therefore should enable the com¬
up

Home raised, its investment

60%.

would be good for insurance un¬ 1943 does not seem so
long ago
derwriting
and
for. insurance to most of us here. During the 15
stocks.
They are thus an ideal years, 1943-57, Hartford's invest¬
hedge at this stage of the stock ment income rose 439% and its

market.

Claim costs represent the largest

single item of insurance company
costs, approximately 60% of the
premium dollar. A stabilization of
these claim costs during a period
of upward
rate revision would

automatically create a desirable
profit margin. Ten years ago, dur¬
ing
the
last
big
underwriting
cycle,
the
underwriting
profit
margin moved from a low of 1.2%
in 1946 to a high of 12.4% by 1949.
Last year there was a negative
underwriting profit margin off 5%
and more. History could well re¬
peat itself, as during the 1946-49
period,
with a combination of
stabilized claim costs and higher

estimable

raised

30%

least

achieve

companies,
dividends,

flation of the future—just as Gen¬

average

based upon current market. With¬
in 15 years, by 1973, the invest¬

eral

stockholders 150%.
During the same interval Home's

ment income of this group should
have grown 200% and the divi¬

policies

investment

dends to

dividends

and

income

gained

239%

its

dividends to stockholders
The record, of course, sug¬
that Hartford Fire has had

67%.

gests

100%.

8.8%

stockholders at least by

Such
on

return

today's

would

surely

cost,

be
a

handsome prospect also.

greater growth than Home Insur¬
ance—and such is the

case.

Many In-Between Stocks

How¬

the market adequately rec¬
ognizes this fact, Hartford Fire

surance

sells

and

yield

basis

while

approximately
at

the

present

1 %%
time

Home

yields nearly 5%,
During the last 15 years Home on
average
has
yielded 2-3 times
than

who

must

whom

Hartford.
"eat

For

those

live," and for
important, Home

yield is
during the past 15

years

has been

can

Motors

There

many

other good in¬

stocks, both in the growth
the yield category, which I

might
are

are

have

selected.

others which

are

And

there

"in between"

—not

growing quite as fast as the
growth
stocks
or
not
yielding
quite as much as the others—such
as

Northern

Insurance, Merchants

Fire, Northwestern National Fire,
Glens Falls, U. S. Fire, Spring¬

the oil

keep abreast.
has been

of The First National Bank in St.

Louis, was recently appointed to
a four-year term on the St. Louis
Metropolitan Sewer District Board

and

There

of Trustees.

six months' pol¬

icy for certain classes of insur¬
ance, so that the rate structure
more

Appointed

Hallett, Vice-President

companies

states the five year policy
for fire has been eliminated. There
talk of

John F.

The length of
shortened

some

would be

ever,

Hallett

panies to keep abreast of the in¬

yield of 5%%

flexible.
sound

reason

why

Hallett
or

has

chairman

served

many

director'

St.

Louis

civic, charitable and industrial
projects and is a past president of
the Navy League of Missouri and

the insurance business cannot live

the St. Louis Society of Financial

with

Analysts.

inflation just as other busi¬
nesses.
In fact over the years in¬
surance

excellent

stocks

have

proven

With E. F. Hutton Co.

hedge

against inflation
because premium volume tends to
rise with the

LONG

price level.

Loomis

Cutting Cost of Commissions

BEACH,

Calif.—Roy E.

has rejoined the
Hutton

new

East

Broadway.

with

Blyth & Co., Inc.

competition

staff of
219
recently

Company,

insurance companies writing busi¬

Increased

;

(Special to The Financial Chronicle)

was

Volume

Number 5778

188

The Commercial and Financial Chronicle

(1127)
Continued

jrom

page

year was of record dollar

volume,

is expected to increase further in

1958,

and

July

record for

new

outlays

set

that, month.

The

building of roads, schools, and
other public projects will be con¬
Consumer expenditures d e p e n d
(1)" ; Automobile Production —' tinued at high levels, and a record
basically
upon
the
consumer's Automobile production and sales high rate this spring of FHA apability to spend: We find that in are substantially under a year plications for home financing and
July employment and wages and ago, and the automobile business a substantial increase over last

By ARTHUR B. WALLACE

This Week

...

will

personal income were at very
high levels for that month, even

there

question

is- evidence

until

mark

w*desp^:ad
of
the
1959-

though unemployment is at a re¬
latively high level in relation to models. / *-*
total workforce. As & result ) V <2)
Steel production - steel
of 65 million employed at high production is averaging only
ging
ahniri ax°L of oanaoitv
wages,
consumer spending
cur¬ about .64% of capacity.
,v
T 3 VCornorate Net Profits—Corrently is being sustained, close to
(6) ^orporaierro
its previous record high volume, •
porate net profits are lower and
with personal income setting a the ■■
narrowing profit margins of
new record in July.
business is certainly a disturbing
consumer

considered.. Consumer

ing

manifested the wider

construction

/ox

(2)

ouarter
quarter

distribution

continued

instability

unrest^^and^
uniest and, as

to
to

this
tnis

vear

the

precipitously,, .or

decline

are

time,- the aggre-.
gate volume of consumer spending
tends to be maintained. ■://:/£■■■>V».r;*
tended period of

produced

were

^ual

second main,

Now for the
of

economy

our

government
account for

production.

—

:■-■■■.

•

o^ ^
the

•

This

Jrir Inflatlon, 7" A-: J?1®
!Lm0A
*°rem
problem facing
the-American

segment

tegrity

be higher this, year,
especially: outlays for military

has

been

-inflation-has

destroyed

nomic/chaos has
;tt..

year.

well

the financial headlines
in recent weeks re-

hike

the

JI^AV

5 $3"was'mataTatael
^

Added to the condition of better
interest

rates

the

fact

that

^erest raxes l&ine lacLinat, at
at
season of the year business
loans beein to increase heeausc of

mafn

tao

^owment of
natioTl^S and
of itaveXrieVbv
up of inventories D$

factOTS
the

rate

Bank
oaiin

probably tuned

was,

of
or

effect than

and normally this will de¬

ness,

velop more momentum. This all
works toward better earnings for
the

creases
.

the

discount
in

custom

rate

are

andTis V^
Board is being
£a^e, ^s6^pffortto

qci

ttrn

otro

v*—

■

declining

nized

any-

^ing eise;
^ was an in(jica»
ti°n °f better conditions too. In-

Jop grade industrials
,

„

today quite

once sold
an

hi^ price-earn».

mgs ratlos am0"^ the blue chips
are cornmon- The bank shares

economy;
,

the

important
em-

Reserve

ore vent

vlfng
be gp

uiiiation lire.

The inflation-

the

relationships
(short,, of
course,, of the crazy days of 1929)i
Not only have they had to- be

satisfied

such

twppn

with

ratios

and

mainly

timeq*

be-

but

for

A °| ]% in the Viscount Srate several years until, let us say the
rediscount rate
d
Q 7 there was a progreswas followed by the prime lending
®ve Lseningofthisratio
rate beinS Put to a 4% level from
lessening ui mis rauu.
the

the expansionary,
of the current high
government

rediscount

Reserve
ncsei ve

itg pSychoi0gical

tSPbuSStar
*
a ?g

soend-

„

(4)

Retail sales

(5)
i,

stock

banks, and it is being recogv*
v»rt/3
as we have had
consistently
San F'anclsco, now followed by better prices among the stocks of
? number of the others in the sys- the ieading banks.
tern,
Federal
ay the i e?erak

3%%

must be recognized, however.

fairly

Empire^ Trust,
time> announced
dividend;
which

same

translates into a like AA,1VJ> VQOU in
increase All
the cash payment, as its old rate
^

Day].

seen

well,

holding

are

except

for

.„

„.

as
.

large

New

York

other

Surely from the conservative
investor's viewpoint, price-earn-

the banks would be going to the
Reserve to borrow, they would be

ings ratios in the 10 to 1& times
area
should make bank stocks
look like good values. This depart-

doing

^ent iccw that they
feels uwt tucji

we
.

the

words, if money
should tighten to the point where

automo¬

Consumer spending,

banks.

biles.

For

have

The

goods^mnd iservices

the

magnitude

eco¬

resulted.'

for

in
as

SSg

[Labor

the

Y this

ports of increases in interest rates.

Larger govern-

years.

possibilities

and

rampant,

run

later
ary

its money... History teaches us that
in those instances where this inT

expenditures are

past 14

demand

bility- to'preserve the American
public's faith in the integrity of

declaration;

about

pi0yment, incomes and increased

AH segments5 of

economy—business, labor and
government—share the responsi-

all levels of

Holiday"

orders

new

factor giving rise to higher

people is the piob-

lorn of inflation.

fPW

new

and

effect

ment outlays will be

4hic

the

expehdituresr—which
20% of total national
We know that Fed¬

eral Government

going

,l\
( }

Tnnrnni

the

ueport uain in aaies
business
in
anticipation of the
™rs a t? Sa st °:^ ^aPu7 trade of the holiday season. Alfactures Were Up in July. And rea(jy we have seen several
we could go on in this vein.
we couId e0 on ,n
w'n
* increases of loans to "
"
'
'
weekly '
busi¬
Also

increase

manufacturers,

buIlnfss activX!

Government Expenditures:

(2)

country

qeco

reduced level for a ex¬

ite

comes

qtrppt

higher rate

ctimnTatine

chfnnf/nrice

Waii

inS are received, production schedcharacteristics.- (1) S.i!dr
vovern
ules are stepped up and employThey tend to be nondiscretionary
: meat arid incomes rise.
in nature, i. e., they are for esr ments,
hardly
are
constructive
sentials
such -as food, clothing, economic factors abroad.
•/ ; (3> Federa Government spendheat and light, medical-care and
It may:very well be that rapidly
esP^C!ally for defense P^rtransportation. (2) They also tend changing, conditions abroad will
P+os.es'« 4
i
to be nprideferable.- The bulk of be" an
important determinant
these expenditures are for essen¬ thf> direction of business activity lng ma^ be exPected to continue
tial consumer services. Unless in¬ in tWs
during the rest

fundamental

early

Bank Stocks

?nc?:

ordCTS

spending was fairly ganda.'-In addition to political and
well maintained. This reveals two

are

gold

—consumer

days bacb: "August Steel
Sets'58 High"; "Rise Due in Week

we have
condition where goods

has resulted in

other panacea type of propa-

that

total buying,

have

a
a

be-

Another: "Bouncier Business. Most
Comoanies Renort Gain in Sales"

months

add

as
as

yeai,

the

+b~

measured by the total output of
goods and services. Since there
has been no decline of these pro-

the international situation, and

V?^ JmSX
to be subject

rising incomes that has char*
acterized the period. In the past
two downturns—1949 and 1953/54
of

of
,ot

stages of „ real recovprv
^
A look
stages or a real lccuverJ,. A 1UUK
a lcal recovery, a iook
at the headlines
says much. From

Knei.ne.

Portions
we must

;(4). WWW conditions

has

lieve

business activity between the
third quarter of last year and the
cPrond
second

—

•

...

indices that encourage

liquidation acuquiuauon
counted for two-thirds of the
droE
drop
in

—

out of

—-a*..*

of climb

means rapid
(and probably it is well that it is
no^ there are many signs and

the rate

the recession is
by no

Inventory
„Vemory

(4Y World Conditions—We must

spend- i anticipate

period

postwar

the

While

res.1""
activity in

the coming months.

factor;in today's business picture,

characteristic of
spending habits should-

an inaProYed ra*®.

dential

the

One important

year in requests for VA appraisals

public: .acceptance

so
aw

on a mute
wn ct more

favorable basis
idvuxauie uusjh

cixc, ttuu. mai
are, and. that

by state and example,;;in A m e r i c a n history have seen, will be maintained at than before, for they would be the buyers of them at
present price
has/ traced a there,,wasdthe_^Confederate infla- nigh levels.
borrowing at 2% and lending out levels are going to- be well satis•continuous rising trend for .the tion and the/ Revolutionary War
4h^^££?J£ -■ mniht
their borrowings at 4%. And, of fied with, their positions in them
■past 14- years, and it is expected infla^ioii..: There is the experience
that this/trend will continue in of Germany in 1920-23,/and, more
.purposes.
Spending
local governments

.1958.
-

government.expenditures
—Eoderal/state, andJocaJ^should,
Total

higher this year.

eviden?Pin May1'

recently, postwar Greece and
Hungary, not to mention the cur¬
rent experience of countries like
Brazil

and

levels'iiave

such

risen

106% and 527%

Expenditures: The respectively during the four
Ithird maim area of our: economy period/.1953 'to 1957.

not

should

Ra!i^°a'

be'to

either upward or downward)
...
_r

hiking

curtailed production
ment.
1'

many

and employ¬ 'for
-

•

-•*-

•

;
■

V-r

,
-

•>:-/,

Now

from

this; aggregate

proach, we can see that
:in
/

■

the

r.
•'

spending

areas

of our

particularly tiue

"wean

Tipw^f
view of

the best

assurance

some

picture, and we should examine
what at this time are five'areas
of uncertainty in the business picture at this time.
.

Now that

(l)i Construction, which last

of: and as

1958,

(Special to The Financial Chronicle)
._

„

416

has

Francis

•

—

become

Fifteenth Street.

i*,

Guaranty

paid

5?S!a!!an{? a"d
ipJlfZY.
^
Dempsey-Tegeler^
tp^aW

210^t

Sev<mth Sitree^t BoCh were formerly Wlth Loga* & Co*

Frederick H DoUfflas
,

"rCaenCK tl. UOUgias

Frederick H. Douglas, senior

the old dividend rate of

New York City,

Douglas

was

national overseas and

Robert T.

connected

Pont

Mr.

Co.,

..74_

was previously with Reynolds &

^°-

„

was

victim of
Mr.

79.

BANK

grindlays bank limited

and

Atmalgamating National Bank of India Ltd.
and Crindlays Bank Ltd.

Strouse

Head Office:
26

INSURANCE
STOCKS

BISHOPSGATE, LONDON, E.G2
London Branches:

Joins Faimian S*aff
(Special to The Financial Chronicle)

year.

Dempsey-Tegeler

(Special to The Financial Chroniclc)

dividend
cuts
among
LOS
some
of the
larger and.*.. ANGELES, Califs-James
W-M
,
win
-

Examples:

N. Maclntyre has joined the staff

number

with

and Company, 321 No.

2 With

extra of 80 cents at the last yearend; Hanover Bank in early 1958

LOS ANGELES, Calif.—Patrick

"affiliated

become

toward the issued an 111/9% stock dividend, partner of F. H. Douglas. & Co.,

February,

of factors

are

has

uptrend that had been

declared extras or increased.

$300,000

underlying
strength in the
economy which should
assert
themselves during the rest of the

There

the

LODI, Calif.—-Howard H. Newman

Now With F. L du Pont

next few months.

Beckman Co. Adds

Sept. 15.

with

have reviewed the

Calif.-

California Street.

decline; and several of them either

1957, of

HILLS,

(Special to The Financial Chronicle)

trivial. nature Beckman

holder of the shares at the time of

Strouse

Conclusion

the

OAKLAND, Calif.
IV

time, and not

and

fact,

stronger industrial units, not one
of the leading New York City
banks reduced during the business

savings & Loan Asso-

stock

Vesque

Sou«> Bay Savings & Loan Asso- an was continued the effect was the wreck train onJersey Centoll
$2 increase of 111/9% for the commuter
the
ciation stock.

navt

strong and weak points in the
within the aggregates,
economy as they appear to be toindustries
and
businesses show
day, let's attempt to draw some
much variation. Not all businesses
conclusions about the outlook for

going up at.the
all are going
at the same time. There are
danger spots in the business

purcbase

stability.

economic system.

BEVERLY

frequent

this

Which were, applied

of economic

However,

and industries are

Charles Mittleman has been added

Also, whereas there have been

even

proceeds

ciation

the
the

from a
belief in price
stability and to
persuade them to accept a slowly
but steadily rising level of prices

./ •"*'
As I have pointed out, this type
of an analysis is an aggregate ap¬
our

7<fcl0

Juirp?
Net

South

th^pubhc'awly

•

r>ar

P^chase in November,

^operate m;a vigorous attach on

cages

financing
^ill be used to retire $550 000 of

—

tor.

to e«ect was continued.

San

rnt°mJn7bF^1mcrSb0r' Sto Gco"
ment, and consumeis
to co-

changed to possibly a slight upward trend in the consumer sec-

down

ap¬

rem

companies.

where they dld occur' and m

be^ used to r^re $550^000 of
Pp^SS°ZrrowinJs ?of $250 000
^
Toward the

same

main

Tmnprinl

stock

preferred

industrial

th^y Yuere

well-being. It is a transcedent responsibility of all segments of the

business system are moving a lit¬
tle higher at this time in the gov¬
ernment
sector/ Tower
in - the
business sector,' and
about un¬

proach

three

•

whole, the notion of
3% annual price increase strikes
at 7 the - very
foundation of our

III

Uncertainty

niPffn

•v-rt*. • >/-

Five Areas of

vertible

increased. But

economy as a

business-expenditures, are
-expected to be lower in the com¬
ing months. This will have a de¬
pressing effect on business, " '"

"when thought of in terms/of the

on/inventories;, de¬

clining,

'•

our

but

anything like the drop that was
experienced by a great proportion

Sept. 16, 1958 ofissue of 70,000

fer^ publicly

have"

see our own income

plant, and

With expenditures on

equipment and

City, Utah

individually we
higher prices
particular products "and

because

would like to

♦

rate,

Bank earnings during the busi¬
slow-down
did
not
suffer

Slock Offered

business, for
as
new
declined,
manufacturers

prime

ness

the

(Special to The Financial Chronioj.e>

niKinS me prime
.
phase announced a rise in the rate to the staff of Russell J. Le Ves!° brokers and dealers for carry- Que and Associates, 321 South
ing securities in loans.
Beverly- Drive.

Diego Imperial

orders

t
it

,
T_„_f if-j
anty Trust lead «he way last week
in

the

expenditures—account i./F6stered
by the school that be- next six months should see a mild,
Tor the remaining 15% of our total lieves a two or three
per
cent gentle expansion to substantially
production. The Department of annual iprice rise is essential to high levels of aggreate business
Commerce has estimated that our
well-being,
the
idea
has and economic activity.
spending -by business for new gained acceptance that a steady
plant and equipment will decline but slow erosion in the value of
San
by about 20% this year.
the
dollar
is inevitable and is
Business u-also purchases goods
necessary for continued prosperr
for inventories. Inventories have
Pfd.
ity.. .The-doctrine of creeping in¬
been declining for several months. flation
is superficially tempting
I
A
Hoele & Co
Salt Lake
This has had a dampering influ¬ and
has
gained
acceptance ,by nur TTtaih
£nV 1 fi
nf
—business

ence

,u"Vca?cw

With R.

objective

our

avoid rapid economic movements

year

may

he o;mngtefl

JOMte^aaoiiC., nrlce

(3) Business

in 1955 and 1956,

ttS&SBS

WhUe

Fairman

Co.,
210
West
Seventh Street, members of the
Pacific Coast Stock Exchange. He
was

formerly with J. Logan & Co. •'

13 ST. JAMES'S SQUARE. S.W.1
54 PARLIAMENT STREET, S.W. 1
Bankers

the Government In: ADEN.
KENYA,

UGANDA, Zanzibar a

somaliland protectorate

Laird, Bissell & Meeds
Member* New

York Stock Exchange

Members American

Branches in:
nxa, pakistan, cfyion, burma,
kenya,
tanganyika, zan7ibar. uganda,
aden, somaliland protector ate,
northern and southern rhodma.

120 BROADWAY,

Telephone:
Sen

Stock

Exchange

NEW YORK 5, N. *.
BArclay 7-8500

Teletypes-NT 1-1248-40

Specialists in Bank Stock*

The Commercial and Financial Chronicle

(1128)

Continued from page

its

the

January-March

1958'

quarter compared with the same
a year ago.
Results for
the second quarter of 1958 showed

quarter

General Outlook ior Chemical

chemical sales volume.

reduced

sales

jFirst quarter chemical

were

7% below the same period a year

However, this was a bet¬

earlier.

ter showing
than sales for all
.manufacturing
which were off
12%.
Second quarter chemical
Gales were 1.6% below the same

quarter of 1957.

half 1958 showed

result, first

drop of 4.4%

chemical

reduced

in¬

dustry sales, the FRB production
index
for
chemicals and allied

during

products

the

five

first

months of 1958 averaged 180, only
13

points, or 2.7% below the same

period

By compari¬
all industrial

ago.

year

the change in

son,

production in the same period was
quite marked, with a drop of 17
points, or 11.6% . Industrial chem¬
icals averaged a production index
of

186

five

first

the

for

this year, 9% lower than

months

the same

period last year.
"Inventories

chemical

man¬

adjusted for seasonal
activity, rose 6% in 1957, which is
Considerably less than the 11.5%
increase during
1956. The ratio
of stocks to sales in 1957 ranged
from 1.8 to 1 in January to 2 to I
ufacturers,

the

December,

same

range

inventories
high of $3.9 billion

Chemical

1956.

reached a

new

In March 1958 and declined to $3.7

representing suf¬

pillion in June,
ficient

for almost two
This is still consid¬

stock

months' sales.

industry exec¬

ered high by some

utives.

"In 1957 the chemical industry's

iotal number of employees

aver¬

aged 1.4% more than the year be¬
fore, but its production workers
averaged 1.5% less. The drugs and
medicines segment of the industry
tiad 1.2% more workers in 1957
in

than

majority of the

popu¬

increases

wage

date.

later

1.956, largely , in order to
needed

much

make

vaccine

downtrend

the

sum¬

third

probably affected
quarter earnings. But the
all

"Although several serious stop¬
pages ocurred during the period
outlined, most chemical wage ne¬
gotiations were conducted amic¬
ably and in a range varying from
5 to 12 cents per hour during 1957,
and 6 to 8 cents per hour during
1958.
Many of the settlements
effect

encouraging upturn
company
earnings
quarter. The usual

mer

lation does not now want this,

take

the first

seasonal

outlook

brighter

for

over¬

is somewhat

1958

than at the start of

now

plant and equipment

1957, 18% above the previous
year, according to Securities and
Exchange Commission reports.
This
amount
represented $3,205

per production woiker, compared
provecl health and welfare plans, with $1,235 per worker in all
exfe-a holiday, and increased'
manufacturing, and should not be
shift differentials were among im¬ confused with over-all investment

fringe

consid¬

benefits

pated new plant and equipment
expenditures originally reported
by the SEC as scheduled for the
chemical industry in the first half
of 1958 showed a good increase

manpower,
a large majority of
the respondents state that there

shortage of chemists and
chemical engineers at the present
is

Those

time.

quality

high

who

feel

shortage

special

and

skills;

The outlook for 1959 does, not an¬

ticipate any over-all shortage, al¬
though there are probably specific
needs in various segments of the
industry.

years, 1957 inevitably reflected in¬
creased
costs
of such
overhead
raw

materials, transpor¬

tation, containers, labor, and the
general inflation currently exist¬
ing. Each quarter of 1957 saw a
slight rise in the BLS Wholesale
Price Index for chemicals and re¬

products, with an average of
109.5 for the year, 2 % above 1956;
AH
commodities continued up¬
ward at a higher rate of 2.8% in
the
same
period.
The over-all
chemicals index hit its highest
of the past 10 years with

average

in the first half of

110.7

1958,

the

period

1.5%

above

same

year ago, and 0.5% above the last
half of .1957.

"The

earlier

chemipal industry's tradi-

the

SEC

estimates

ago.

year

revised
its
the second

progressed and at mid¬
expected a 1958 total of ap¬
proximately > $1.4
billion,
about
quarter

year

below

21%

slightly

"Although chemical prices re¬
mained fairly steady for several

half

same

However,

than

Prices

Wholesale

items

the

over

put their emphasis on

exist

does

worker, which is
Antici¬

10 times greater.

least

technical

production

per

•.,%•••!reference

"With

This

1957.

would

higher

but

"The maintenance

of such

high
level
expenditures exceeding $1
billion a year for eight succes¬
sive years is probably the
best
proof of the chemical industry's
confidence

its

continued

own

early resumption
of
improved
business
activity.
Farsighted expansion to maintain
and

competitive

position and exploit
products, while resulting in

new

temporary
some

cases,

off in the

overproduction

nevertheless, will

near

future.

pay

ex¬

ample, the current overcapacity in
ammonia-producing facilities, ac¬
cording to expert opinion, will
shortly be a thing of the past.
This source foresees

need to

ex¬

pand production by 80% to meet
the
expected
requirements
by
1975.

drop of 6.5% in
chemical workers compared with

products as markets exr
pand and volume conditions war¬
rant is becoming more and more

"Despite the recent showing of
business, the chemical industry
continued to pour millions of dol¬

difficult to maintain.

lars

further

the first half of 1957; at the same

time, all manufacturing employed
13 % fewer

"The

weekly wage of
production worker

average

chemical

the
in

workers.

1957

rose

4.6%

above

1956,

compared with an increase of 3%
in all manufacturing. In 1948 the
chemical worker's average week¬

ly wage was $56.23, whereas in
a decade later, it was $91.46.
Much of this increase, but not all,

1957,

been
due to inflation.
By
comparison, in 1948 the worker
in
all
manufacturing industries
dmade
$54.14 per week,
and in
1957, the figure was $82.39. Work¬
ers
in
the
inorganic chemicals
segment of the industry averaged

lias

4.9%

pay

per

industry is now grappling with
problem of how to maintain
prices at their current levels in
the face of growing competition
and

1957

against 41.3 the year before.
The Cost of Living Index of the
on

8.4%
.

of Labor Statistics, based

the 1947-49=100 average, rose

1957
half

the .first

weekly

earnings

averaging 4%

1956.

over

During
chemical

1958,

again

went

up,

the

same

riod

At the same time,
the Cost of Living Index hit a new
high of 123 during the first half
a

pands

"Wages negotiated in the chem¬
industry during
1957 con¬
tinued their upward spiral. Those
ical

during

negotiated
months of
were

not

the

first

six

1958, while substantial

above

the level of the prior

however. With business in
repressed state, continuance of
the wage spiral is hard to under¬
stand. Apathy to inflation on the
year,
a

part of both the Government and
the public has created economic

problems that will not be resolved
unless a firm stand is taken. Ap¬

break-even

points
and reaches reasonable capacities.

"Total assets of the chemical in¬

the end

$20.2

of the

1957 and

amounted
high and
6% above the last quarter of 1956.
according to the Securities and
Exchange Commission.
The fig¬
ure

for

billion,

the first

however, showed

year

new

quarter of 1958.
a

decline to $19.8

"After-tax profits in

the indus¬

try were 7.6% of sales in 1957

with

1956.

All

manufacturing, on the other hand,
was
considerably lower with a
profit-sales ratio' of 4.8% in 1957
against 5.2% in 1956.
Chemical
profits after taxes hit a two-year
low of 6.4% in the first quarter of

1958,

compared

with

7.8%

the first quarter of last year, with

companies showing a sharp
The picture was similar
for
most
industries,
however,
since the SEC reported that 18 of
many

industry for

the

manufacturing
durable

and

industries
nondurable

goods groups had decreased prof¬

scientific

new

man¬

prod¬

improvement of old ones
is an ever present challenge to
the chemical industry.
The vast
accomplishments along these lines
in recent years have become by¬
words in the everyday life of man
—foremost
among
which are
probably the remarkable advances
contributing to good health and
increased longevity.
"So

important has research be¬
chemical companies that
approximate 2% of sales allo¬
to

come

the

for

has

ago

this

purpose

decade

increased

currently

instances. In the
of pharmaceutical companies,

case

many

the

percentage is even higher.
Equally encouraging has been the
relatively new emphasis placed
upon
basic or fundamental re¬
search

but

—

gamble,

promising

firm

which
for

marked

admittedly —
one.
One large

allocated

last

research

20%

these

year

its

ear¬

funds

for

fundamental work not only in the
chemical branches but in physics,

mathematics, biochemistry, micro¬
biology,
and
plant
physiology.
MCA believe this is
since

encourages

wise

course,

freedom

association with scientific societies
and

of
publication
and
also
renders industrial laboratories at¬
tractive to creative minds.

"In

announcing that his firm's

1958 research program was
budg¬
eted at 4.2% of domestic 1957 sale,
an

and

ucts and

decline.

the

and

sales

billion.

compared

research

The constant need of

year.

kind

dustry grew steadily in

into

investigation, currently estimated
at more than
$500 million per

cated

Assets and Profits

year ago.

?of this year.

pressure

creeping inflation. The issue must
be met either by increasing sales
volume
or
by cutting costs
through the use of improved proc¬
esses, more efficient equipment,
and improved productivity. This
is receiving top level considera¬
tion. And some improvement can
be expected, particularly as the
output of individual plants ex¬

pe-

over

inexorable

the

week in 1957

The industry's aver¬
age work week was 41.2 hours in

Much of the

the

more.

Bureau

new

than in 1.956, and organic workers

4.2%

financial

committed

resources are

which

from

it cannot
available

such

problems as fuel pro¬
duction, fuel -reprocessing,. and
waste disposal are solved.

creased 39.5%, and our technical
personnel in research per se have
increased 49.5%. Our human and
our

technically feasible,
economically

become

until

technical

"Some feel

equally

grow and develop
its full potential only when it

research program
want and expect

that the atomic en¬

field will

ergy
is

completely exposed to the

nor¬

mal commercial incentives of pri¬

practical results.'
research

vate

spending has

enterprise.

"Recent

tition

product performance and quality
long-established tonnage prod¬
ucts. Recently, a number of firms
have
instituted
operational
re¬

responsibilities. And,
Bush points out, it
is now recognized that scientists
can
themselves be pretty useful

in the U. S.
of

the

current

extensive scale

equipment, technical data, and

know-how

for

these

other

and

The

the

proposals

production of

chemical

items.

have -since

been

supplemented

by Soviet contacts
individual, U. S. chemical

with

firms.

fibers, synthetic

President
Eisenhower
contained
proposals for Soviet procurement

„

contacts

extensive facilities

rubber, and plastics. A subsequent
message
from
the
premier
to

people in corporate work, and that
their experiences and backgrounds
prepare
many
of them for top
management positions, where the
highest, quality of wisdom and
judgment, is required.
"Reference
has
already been
made to the opinions of the exec-;
utive

make man-made

Vannevar

chemical

erection

designed for the

ministrative

news

expansion of
industry is of
far-reaching
importance.
Last
May, the Soviet premier proposed
an eight-year chemical
expansion
plan costing some $25 billion, in¬
volving, among other things, the
U.S.S.R.

activities

The Soviet Proposal

products. Increasing compe¬
and rising costs have re¬
sulted in the earmarking of sub¬
stantial
funds
to improve
both
new

Similar contacts have been

made
:

elsewhere

the

West.

"MCA's view is these proposals

are

fraught with danger, both for

the

fears the consequences to the na¬
tional security and to the domestic

adequacy

James

of scientific
in
exceptional
skills.

supply

of
of

case

Killian, .Jr., recently
emphasized
this,
and
the
im¬
portance of detached research, by
stating: 'More first-rate research
is

done in the sciences in the

now

United

than

States

Involved, in addition to the se¬
curity aspects, are the possibili¬
ties of futile competition of Free
World firms against the
Soviet
state, dumping of products abroad
for economic gain, and promiscu¬
ous
transfer
of
such
acquired

the great intellectual

where

breakthroughs occur, where great
concepts and discoveries origin¬
ate. V. .'
The chemical industry
this

knows

will

and

its research

programs

supplement
with addi¬

know-how to other nations with¬
in the Soviet orbit.

tional fundamental investigations*
"As a portion of MCA's survey,

ties

executives were queried concern¬
ing product lines which they felt
held the most promise for 1959

increase of

the

over

5% from that

elastomers

the

drew

votes.

most

dangers

consideration

not

;

the

most

try.
_

.."Que ..of the greatest advan¬
the "Wee"World" has today

tages

is its technological

superiority and

this

in time.

number

votes.

Nuclear Energy
"Almost

executives

all

tacted say

con¬

there has been little

change in their opinions rela¬
tive to the impact of atomic en¬
no

applications upon their com¬
panies in the past year.
Many

ergy

firms

chemical

use

now

nuclear

and radiation as powerful
laboratory research and process
control
tools, and they believe
energy

significant strides
in

of plastics

radiation

being made

A few examples:

fields.

these

are

to get cross-

linking, exploration of the mech¬
anism of chemical reactions,

catalyst
techniques, and continued use in
of

development
medicinal

biochemistry

re¬

search. It is felt that atomic fusion,
if

controlled,

could

effect

make lower
possible, and this

would

costs

power

reactivation of the

electrochemical industry.
"While

chemical
actual

much

firms

interest

ex¬

anticipate

their

com¬

operations for some years to
come, possibly not for a decade.
Outstanding commercial problems
are
those
of technology
and
economic in meeting the compe¬
tition of present successful pro¬
duction
techniques and already

pany

sumer

prices. Very few con¬

products made by the use
to

the

can

bartered

not

In the best inter¬
United

the

States,

Government should not

public because

our

modify or

relax the present restrictions and
controls embodied in the Export

Control Act; further, that a con¬
national policy should be

sidered

enunciated, based

all factors

upon

involved."

N.Y.

Municipal Club

To Offer Course
The

New

Municipal

Principles

each

of
on

Practice

and

from

4:15

week

the

5:15

First

Thursday

Albert J.

Vice-President

Boston Corporation,

will conduct the
year.

Mu¬

Classes will

p.m.

Assistant

Milloy,

Finance from Sept.

25th until June 1959.
meet

Club
course

Bond

will offer

York

nicipal Bond

again this

course

" /;

' T
in

the

:
will be

course

principles, practices and ethics of
the

municipal

little

application

established

Included

atomic energy, many

pressed

develop
However, this time

lightly.

away

chemis¬

industrial

should

factor

ests

new

and

nations

the Communist bloc

over

True, the Soviets

chemicals—drew

careful

the part of Gov¬

ernment and the chemical indus¬

know-how

offered

are

for

possibili¬
economic
this entire

try.

mentioned in¬
lithium, rare earths,
electrochemicals, polyols, petro¬
chemicals,
synthetic
lubricants,
silicones,
surface-active' agents,
and urethanes. Strangely enough,
those old sandbys—basic and fine

firm

dollars

call

The

and

clude boron,

of nuclear radiation have yet been

'But

strategic
inherent

Other product lines

previous year, the vicepresident of another member
stated:

matter

aucj future years,
Pharmaceuti¬
cals, agricultural chemicals, plas¬

tics,- synthetic fibers, fluorine
chemicals, exotic fuels, reactive
metal derivatives, and improved

generally avail¬

able throughout the world by the
individual company possessing it.

any

and above the first-rate

over

the Free World. It

which is not made

other
country in the world. Our defi¬
ciency is at the very top, in the
area

S./and

industry of licensing and deliver¬
ing to the U.S.S.R., either by pub¬
lic or private means, know-how

EesfeaTch

employment increased
yet, in the same period
personnel have in¬

28.5%;

still too ex¬

are

Although nuclear power

and technical personnel, except

1956

under

1955.

growth

pensive.

total

our

portant
ered.

radiation methods

in¬

development of techniques that
can assist management in
its ad¬

tional practice of reducing prices

aaw

research

past five years

1958

the

-ether types vl
first half

The

influenza.

not been limited to the search for

Expansion
new

measure

"Recent

"Chemical firms spent $1.7 bil¬
lion for

sole

our

the year.

Im-

lated

Employment

;
-

provide^ for

compared with first half 1957.
"Despite

parently,

but

chemical

over

Industry This Year and Next
«a

slight

Ihe

vestment.

Thursday, September 18,1958

...

ysis;

bond

volume

growth;

business;

underwriting,

trading,

sales, distribution and
All
be

sessions

held

Boston

of the course will

the

offices

there is

with

the

Mr.

(15

Corporation

for

and

advertising.

Street, New York City);
tions

anal¬

divisions;

course,

First

Broad

registra¬

for

which

charge, should be made

Milloy

First Boston.

Volume 188

Number

5778

The Commercial and Financial Chronicle

.....

(1129)

Continued from page 15

question in my
do

en¬

lot longer than it needs to

unless

speed along the day of

enlightenment.

This

only by taking

every

can

opportunity

with any other group
any

means

help
of

to consider

the

who

seeking
allegiance to

confess

principles of the free market,
by really believing in what

and

advocate. There is

place in

make it better

While

issue that

the details.

questions get rugged.

private

the

kind

Third,

we should do all that we
to stop the practice of includ¬

better

be,

native

grant,
The

direct

and

interests

have

loan

programs.

private

credit

had

never

anything to gain
from being included in an omni¬
bus

bill.

the

^contrary,

only those who would undermine
private credit that have anything
to

gain

from

housing bill
the

it.

was

advocates

The

invention

omnibus

public

housing,

method

dealing will all

subsidy,

is that

Our

thinks

much

for

one

our

versaries

the

plenty

time

mining,
have

problems:
to

while

pay

spend

ad¬

North

left

the

good. The eas¬
ing of credit in the early part of

when

stricken.

year

Heimann,

measures

tying

needed

their

pro¬

and

popular
affecting private credit.

this

way,

after

year

from 1949
onward, FHA was made
a
hostage to those whose only in¬
terest in private credit was to use
it

vehicle

for

getting their
schemes through. This
year
something happened to upset the
technique. Amid the sudden up¬
surge in the demand for insured
own

mortgages, FHA's insuring limits
were
abruptly reached. Either the
provision for increasing the FHA
authorization had to be separated
from the omnibus bill or the hous¬

ing boom nipped in the bud. Both
alternatives were unpleasant for
the advocates of broader
ment

govern¬

intervention, but, with the

passage of omnibus legislation ob¬
viously months away, the risk

involved in the second choice
too

much

for

the

interventionist to
really

critical

authorization
care

have

been.

tion could

With

effects

without

even

FHA

should

that

safely ac¬
administration's
was

enormously
legisla¬

vetoed
on

one

taken

rest

thus

was

separately

enlarged. The

The

matter—the

—

was

stalwart

assume.

complished, the
bargaining power

verse

most

the

the economy

The

giveaway

schemes

simply could not stand
feet, and once the
of

FHA

their

inherent

their

own

ance

continu¬

provided for,
weakness was re¬

was

vealed.

This is

lesson

thoroughly
think

our

adversaries

taking it to heart.
ton

need to take

heart.

already
be

Our

year

fort

they
time

expect them
renewed

even

heard

that

we may

enact

travagant

Washing¬

second

to make

don't

not also

have

declare

caught

this way.

And
are

representatives

them
won't

whether

houses

omnibus.

ef¬
ex¬

bill.

The

the

shopping
buildings. The
greater7 availability

mortgage

form

one

mortgage
be

which

lending

will

headed

for

a
total of easily
private
nonfarm
dwelling units—houses and apart¬

new

ments—started

might well
far

this year; and it
higher. Next year,

run

potentional demand is

concerned it could well

the

mark

only to

1,200,000.

look

assure

housing

Vacancies
these

have

the

strength

demand.
low.

by the

Then

note that the urban

may

part of the country is still grow¬
ing. In spite of the fact that we
are

now

period of

lessened

family formation, because

of the

low birthrate of the
1930s, the net
number of new nonfarm house¬

can

see

that

if it is

do -what

measures

ing with private credit

are

deal¬

treated

exceed

that

900,000. We

the

faster

than

the

families—well

top

total

over

number

million

according to the estimates of

Fourth,
credit

gether

industry
for

common

the

should

mortgage
stand

attainment

purpose.

to¬

The association

chairman

was

Committee

which

ber of the Business

this,
of

are

Census

told

that,

by the

over

350,000 dwelling units

a year

ment of Commerce. Mr.
was

contributor

Finance
and

way

the

highway and urban

programs

one

figure

demand is huge.

mortgage

men,
we
shall have
plenty of work to do to come near
to

meeting

the

potential.

and

was

widely

magazines.

ALLENTOWN, Pa.
Planning Corporation

with

The

rapidly and indexes of business

served

by Southern Union continue
example, building permits in May 1958 at Austin,

ranked

(with
load builders.

moving

parts)

are

increasingly

Last year Southern Union sold more
number in service at the
beginning

total

in gas air-conditioning in order to level off the load over
the
entire year.
An important development in air-conditioning has
been the big promotional program in connection with the Arkia

Servel unit

now being produced by Arkansas Louisiana Gas.
Also
novelty of old fashioned gas lights for use in the front lawn
are "going over
big," and these lights use about as much as a gas
range, it is estimated.

the

While the company produces only a small proportion of its own

requirements,

intensive development and exploration pro¬
Southern Union Gas has a policy of buying
in anticipation of future oil and gas plays. At
the end of last year oil and gas leases totaled 708,000 gross acres
in

is under way.

gram

promising
New

acreage

Mexico,

Utah,

Texas,

Alabama, Louisiana and Alaska,

Colorado, Oklahoma, Nebraska,
increase of 243,000 acres during

the year.

Extensive acreage is held in the San Juan Basin. Gas
June 30, 1957 were estimated at 334 billion cf. owned
directly, and 845 billion cf. under purchase contract.

reserves

Important developments

are

under

way

in the San Juan Basin

of New Mexico, the Forth Worth Basin of north Texas, portions
of central Oklahoma, the Permian Basin of west Texas, and the
of southeastern Utah.
Oil production during the
1958 amounted to 5,000 barrels per day. In the last
two months this production has increased to 25,000 barrels per
day and the company hopes production, will reach 30,000 barrels
Paradox

Basin

first part of

by the end of the year.
Southern Union's

capitalization is about 48% debt, 2.1% pre¬
31% common stock equity. Bank loans will take
care of financing needs this year as well as in 1959, according to
President Zachry. Equity financing seems unlikely until around

ferred stock, and

1960-1961.

Since 1942 there have been

Planning Formed
offices

—

Income

has

been

at 3300
to

securities business.

rights to stockholders.

West

engage in

Officers

are

Weston C.

Vogel, President; Alan
W.
Graham, Vice-President and
Treasurer; and William E. Schants,
Secretary.
Mr. Vogel and
Mi*.
Graham were formerly with Penn¬
sylvania Funds Corp.

distributions and subscription

The management has had

a policy of split¬
ting off its production properties from time to time. Thus in 1946
rights to subscribe to Delhi Oil were given at $2.36; in 1946 rights
to Barker Dome Oil & Gas at $1.10; and in 1953 to Aztec Oil & Gas

$3.83. Other subscriptions have been for the company's own
Complete details of the value of these various rights, to¬
gether with the distributions of Arkansas Western Gas and Texas
Southeastern Gas, are not readily available. However, President
stock.

Zachry in a talk before the New York Society of Security Analysts
has pointed out that a purchaser of 10,000 shares of the company's
stock in 1942, if he had exercised dll rights, would have obtained

profit of over a million dollars by 1950; and if another
bought 10,000 shares in 1950 he would by now have
doubled the market value of his investments (including purchases
a

paper

investor had

Opens Inv. Office

JAMAICA, N. Y.
is conducting

—

Lind

business

from

Village Road.

offices

Sandra J.
securities
at

Miss Lind

144-24

for¬

was

merly with North American Plan¬

rights), plus substantial cash dividends.

stock, selling recently around 28 in the Overyield 4%. Earnings this year
are
expected to equal the $1.53 earned last year and may be
slightly better, depending on weather conditions during the Fall
months. The price-earnings ratio is about 13.3.
The common

the-Counter Market, pays $1.12 to

ning Corporation and Gabriel
Gladstone & Co.

MILWAUKEE, Wis.

("Special to The Financial Chronicle)

DENVER,

Colo.

change

Guaranty

formed

with

Savings

securities

are

Kenneth

Realty

Co.,

offices

—

Ex¬

has

been

the

Gay,

Officers

President;

George Baily, Vice-President; Carl

Cade,

Treasurer;

Moore, Secretary.

and

Eldon E.
Murray has joined the staff, of
Walston & Co., Inc., 210 East Wis¬
consin

—

Avenue.

Joins United Securities
*■'

(Special to TnE Financial Chronicle)

GREENSBORO, N. C.—lesse F
Rollins, Jr. has become connected!
with United Securities Co., South¬
eastern Building.

Mid¬

Building to engage
business.

Walston Adds to Staff
^Special to The Financial Chronicle)

Realty Exch. Formed

land

has to do is to add to¬

that the

Depart¬
Heimann

quoted in newspapers and finan¬

have

gether growth and destruction to
see

mem¬

the

renewal

raising this

formed

Magazine,
the author of a monthly

Income

is growing

since it helps to balance the heavy Winter heating load.
However,
about three quarters of the company's customers will have to
put

the

Management

was

cial

another. Advances in

are

Credit

business review which

been removed from the market in
one

man¬

Advisory and

Planning Council of the

last six years, an average of about

All
United Mortgage Industry Front

the NRA, and was a charter

nonfarm

families with incomes of $5,000 or
more
has
been
growing much

Shipping Board. He served

the

also note

may

number

every year.

independently.

1934

U. S.

holds both this year and next will

Bureau

move

Hamilton Boulevard

accomplished.

and

president

agement service in various posts.

formed

the Department of Commerce. On

vice

in the parts of the
country where the pinch was most

Housing certainly has no
problem of inventory liquidation.

ac¬

Company of Niles,
The Federal Govern¬

severe.

even

year,

possible to do

and

ment called him to business

Neither of

affected

business in the

Kawneer

Michigan.

Mortgage

low.

are

much

was

recession

are

delinquencies

near

few factors

ourselves

the

come

included, and this time it will
remain in-to the end if it can be

purpose to block this

the

They know they
can't get what they want with
any
other technique. It should be our

treasurer

area

air-conditioners

gas

field, and was succes¬
auditor, credit manager,

sively

point in
February on a seasonally adjusted
basis, private housebuilding has
had a strong and continuous
rise,
mainly in the area affected by

1,050,000

Di¬

counting

In no classification is the situa¬
tion clearer than it is in residen¬
tial building. From a low

are

entered

these units than the

later that year, and in 1950

ager

financing. We

Central

Vice

Executive Vice President.

generally

Increasing Private Housebuilding

FHA insured home

then

President in 1931, executive man¬

building and

decided upswing.

Heimann

President; he was
elected President; he was elected

of property was immedi¬
ate; and I would expect this year
be

director,

vision

for all these

money

classes

Henry H.

served the National Association

the

of the year; and it expects to install twice as
many units this year
as last year. This
increasing Summer load is particularly profitable

nation's*

office

perennial FHA authorization will

Of the

oil refineries

During the past year the company's customers increased by
15,340,
gain of about 5%.
>
*:

leading econ~"
omists, was born in Aviston, Illi¬
nois September 26, 1891. He first

response to
of

that

are

accelerated the growth of New Mexico's
service area and produc¬
tion of large uranium reserves at Ambrosia Lake
is also a factor.

important

was

apartments,

centers

clearly

serious maladjust¬
demand
for
real

estate,

and

seriously disrupting

revealed

were

ments

without ad¬

the affected
programs; and every¬
body knew it. We have seen the

results.

there

There

Arthur, potash and uranium mines and mills in New
and important military activities in the latter state.
developments in rocket and missile experiments have

Defense

gas

one

aims

is not heavily industrialized.

first, New Mexico fourth (and almost third),
sixth, arid Texas ninth. The company's customers now
number about 313,000, a gain of nearly two-thirds in
eight years.
Usage by customers is also increasing and the new year-round

r o o m

87% of revenues, and whole¬

Colorado

Mr.

the

their

posals

are

area

Arizona

as¬

prospects

programs, dis¬
covered that they could succeed in

sembly

busi¬

our

account for

pipelines and other distributors 13%. Residential sales
provide nearly half of direct utility
revenues, with a substantial
heating load.
:

an increase of 97%
over May, 1957; El Paso in¬
175%; Galveston 38%; and Albuquerque 162%. Among the
leading states in income growth during the period 1946 to 1956,

had just

mann

consumers

sale sales to

creased

Mr. Hei¬

ence.

business.

whole,

utility sales to

Texas, showed

Central

ness

On the

Pecos in

to gain.

Credit Confer¬

under¬

Some of

Mexico; El Paso, Austin, Galveston, Port Arthur and
Texas; Durango, Colorado; and Flagstaff, Arizona. Direct

Much of the

key-note

support

their

New

activity in the communities

deliver¬

who, after failing to gain popular
for

address at the

have

attention

innipeg,
C a n a da, immediately
a

gas to 66 communities in
in West Texas and others in

the more ipiportant cities
include Carlsbad, Clovis,
Albuquerque, Santa Fe and Alarnogordo-'

Mexico,

ing

natural

one

heart attack at

after

serves

two

districts in New Mexico,
Arizona, Colorado and Texas.

around Port

passed away September 12th of

necessarily

some

effort

our

Association of Credit Management

ad¬

our

seem

Heimann, executive
president of the National

vice

open

our

always

shall have to be

political objectives.

our

Henry

problems.
While we are solving them, we
still have our day-by-day work
to do.
Incidentally, that in itself
is

well,

economic

our

Henry H. Heimann

is the FHA.

eco¬

Southern Union Gas

The

participation in any alter¬
plan be as broadly equi¬

tably open

may

avoided.

politics and

perform

unremitting

to
stipulation

are

only

function

inextricably mixed. If

are

in¬

meeting

vance

for that.

are

Southern Union Gas Company

cannot be

business

the

was

By OWEN ELY

assurance

more.

Regrettable

it, this

our

nomics

made

for

what he

persuasion.

that

objectives,

same

legislative matters affecting
private credit in an omnibus bill
sorts

think

forth

to, not

can

instrument

has

someone

ing

If FHA

great deal

I started.

statement

devoted

are

market

tended

can

set

formal

serve

policy, we are not doctrinaire
our
position. It is the main

this arduous crusade for those of
little faith who falter when the

Opposes Omnibus Housing Bill

have

views in

our

The

myself back with the
political considerations with which

the housing needs of the American

people.

market,

Utility Securities

Agency Plan will

So I find

sys¬

by supporting those in

tem

Public

The wider application

great deal.

can

have to

market rate of interest would

help

strengthening the

private home mortgage credit

to speak and write and
testify on
the advantages of the free

office

work with.

that I represent is ready
now, as
it always has been, to sit down

free to

were
we

of the Certified

not endure forever. But it will

it, but how much

with the kind of tools

The Mortgage Outlook
dure

mind is not what

might do, if

Harold

Joins

Joseph, Mellen

(Special to The Financial Chronicle)

CLEVELAND, Ohio—George O.

with Joseph,
Mellen & Miller, Inc., Union Com¬
merce
Building, members of the

Thompson Jr. is

Midwest

Stock

now

Exchange.

Eastman Dillon Adds
(Special to The Financial Chronicle)

SOUTHERN

PINES,

—

John A. McPaul is now associated
with

Eastman

curities &
vania

Dillon,

Union

Se¬

Co., 105 East Pennsyl¬

Avenue.

•'

The Commercial and

Financial Chronicle

...

•

Thursday, September 18,1958

(1130)

mittee's

Cmtinued from page

the

Subcommittee

Senate

looks with studied care in some
other direction.

Ignored. labor Costs Increase

steel products in

materials that this

raw

not have imposed upon time

the

patience jn this manner. But

Is that in

must have.

nation

arid
this

public interest?
Neither can industry obtain the

dangerous philosophy of a profitless profit system is a grave and

efficient machines and

present menace not only to every
business and industry in the land,
but to the broadest possible pub-

new, more

techniques that have thus far enabled it to absorb so much of the

the

cycle is somehow inimical to
national interest."

sources

declared:

terprises to operate profitably on
a downward trend in the business

Pfics and the Pubi c Interest
while

hearings,

steel

"Indeed, the majority seems to
feel that the attempt of such en¬

the period, the
rising cost of labor and materials.! lie interest including the national
the Chairman
Further insight into the philoso¬
Thus prices will then rise^at a security.
.
is to leave the impression that the
phy which holds that a lack of
Unless the American people uridollars from the increased price adequate business profits is some¬ headlong pace. Will that be in the
$"'■ *
• * - derstahtf ^ the: true facts, land- arte
went
into
the
steel companies' how in the public interest; .was 'public' interest? 1: •
In shortj with American troops 'apprised of- this * danger,- there is
pockets and somehow stayed there. evidenced in the course of a/ses¬
>
maintaining the peace in the Mid-'little hope that they will ever be
Does he give equal billing to the sion
of the
Committee a few
/ die East, with the Seventh Fleet
able to deal successfully with the
fact that all the dollars going in weeks ago which was devoted ex¬
alerted at- Quemoy,- with Russian serious inflationary problem thdt
Went out and more too? And for clusively to the excoriation
of
industrial technology advancing at . confronts them. I can only suggest
what? Not for increased dividends, steel prices and profits. The Sen¬
such a rapid, pace as to challenge, Uhat it^is /up to you-^the-meinbers
but to pay the increased wages ator from Wyoming spoke elo¬
and the other costs incurred during quently of the dangers arising out seriously, our own, and with the. of the Detroit Economic Club and
the
twelve
months
that
have of the economic cold war which is multiple problems of the cold war of similar representative organiwhich so deeply and properly eon- i zations all over our- land—and
passed. Proof enough of this is the being waged against us by Soviet
cerri the Senator from Wyoming,
each one of- you,. to*TayAthe^facts
fact that the industry's profit de¬ Russia, and then said:
how can American industry; d is- before them. You have no reason
clined 50% between the first half
"United States Steel, which is
charge its responsibilities-to the or right to assume others will do
of last year and the first half of
in
the
position of leadership, national welfare and the national the job for you.
this.
wants to maintain itself in the
security unless it does- make a
And time is of the essence; fdr
The Chairman has also repeat¬
black. The
Government of the
edly stated that most of the wage United States is in the red and is profit large enough to do - the as the Senator from Wyoming reenormous job
that only a profit;cently said in what-I anvsurewds
increase which went into effect
going further into the red; and I *can^do in the critical years that/a statement of great perception
last July 1 would be offset by the
have no hesitation; in saying that
lie ahead? How else could indus-. (although -used in a different conlong-run increase in labor produc¬ unless the leaders of American in¬
try possibly* act in the public/ in- text):
\
tivity. Now I don't know, of course,
dustry immediately act to. help terest?
^ .vy*.'
"If we destroy the free economy,
just how long a run the Senator
put the United States in the black,
Now surely the members rif. the«we will destroy- free government.
has in mind; but the longer we
instead of letting it drift deeper
C o m m i 11 e e majority, having;- That /'is" the } situation that corirun, at the past rate of wage in¬
and deeper into the red, we will
achieved the high and-respected^* fronts us."
'
creases, the worse off we are; for
not be able successfully, to wage
office which they hold, are-fully
It certainly is! •*
.
r
the undisputed evidence in the
this cold war without great losses
aware
of the facts I have 'pre¬
record of the Committee shows
to
industry and to the people sented here. Why then this dan¬
that during the past 17 years,
alike."
gerous unwillingness to/consider
U. S. Steel's employment costs,
Now I can understand the* Sen¬ those facts/ unpalatable as jthey
per man hour, have gone up at
ator's deep concern at the progress may be from a short range politi-an average rate of more than 8%
which Russia
has made in the cal point of view? What is the
per year, while the Government's
economic cold war against us. I Committee majority driving at?
on
own reports show that output per
understand it because I share it
I hope that the answer -is^not to
man
hour in steel has risen by
The First National City Bank pf
...
„
less than 3% per <year. And any¬ fully. I can also - understand his be found in a statement which was.
made at a Committee meetingTast - New;%:Ypi k-.is manager ,-of .an unone, including the Senator from profound concern over the Federal
deficit, for I share that too. But month by the Senater from Wis- denvntins syndicate .
was
Tennessee, who can really absorb
the 8% out of less than 3%, is if we are to infer that industry— consin-but this is what he said::
; $9,0Q0,000 Commonwealth of Puer—
by making a profit—is causing the
i exactly the man our industry has
Fears Government>tfotelv€oMtrql
jto. Jlicp public improvement bonds,
Federal Government to "drift
been looking for, for years!
obvious purpose of

So here we find an interesting

study in practical politics.
The
Committee majority professes to
be amazed by the fact that
trial

when

indus¬

prices have risen at a time
demand was falling off in

the market place. This, they say,
is in defiance of all of the natural

laws of economics; and they try
to conjure up evidence to show
that big,

bad business monopoly
caused this
unusual phe¬

has

nomenon.

-.Yet • with astonishing success,
they baye diligently failed to
recognize a truly unique economic
phenomenon which clearly ac¬
counts for* the first: the fact that

costs have never stopped
their upward push, even though
there are 5,000,000 unemployed.

wage

Could 4 it k possibly
be that this
strange, and economically-inex¬

plicable behavior of wage rates
has had^ to baseball language, an
assist
over

massive

the

from

power

costs—and therefore prices—

which

ferred

itself has con¬
the great national

Congress
upon

unions?
'

spent
hundreds of thousands of dollars
of

Subcommittee

Federal

$9 Million Issue of
Puerto Rico Bonds

funds

has

investigate

prices in some of our major in¬
dustries; and I am sure that i the
companies which have been haled
before; * it ihave, together, spent
But the Wonderland arithmetic
many times that sum in prepar¬
ing and presenting every fact and of the Committee reaches its most
figure about ^ their business that mystifying proportions when the
could be meaningful and legiti¬ Senator and some of his colleagues
mately: helpful to the Committee. discuss steel profits. They say, for
Had the Committee used this example, that the $6-a-ton price
material
in
a
real,
unbiased, rise of last year was at least twice
scholarly and- non-political effort as much as was necessary to cover
to enlist the American people in the wage increase that became
,

all-put attack

upon

inflation

at its actual sources, every penny
of this money would have been
well spent, and the investigation
would have performed a great
service
to
the nation. But
the

Committee

majority has chosen
opposite course, some
pf the. reasons for which we can
instead

Market

Placed

merely ask.

This

•

an.

effective

yond

the

This political world being

what

it is, it could hardly be expected
that the members of the Commit¬

time.

then his reasoning escapes me.

Consider for a moment that for

•—if the increase in wage costs

had

completely offset by a de¬
in costs—then, if we may

find the time
to point out

are

also

hipation of os, .4s and o.90s, for

interest cost

4.0539% ,to

0dollar of profit corporations the price; why can't the?American;A^
make, the Federal Government
W the bonjs
collects $0.48 in corporate income
.is being/.made at prices to yield
I am sorry to say* the "Senator's 4s
taxes. The decline in steel profits
warmlyrt-endorsed
to
alone that has occurred in the past ; statement was warmlyi-endorsed j j iyear has already cost the Federal by several members
Other members of the offering

iln

410^according to

suffer

mittee;

deficit,

driving

and

nation

our

of uncontrolled

against is
to

Now

additional loss of more

$700 million, thus pushjng
the Government just that much
farther into the red, enlarging the
than

extend

Consider,

too,

that under
Senator

the

Constitution

Wyoming and his 530
sional
colleagues have

our
from

Congres¬

one

Chemical Corn Exchange Bank;

InleiP's^' Co Sc - Ha^riraan
-Govern--.S^fco Co. In£ Hariimgn
everything-arid
Loeb & -Co
Merway thisGteh is a-sortCo Kuhn Locb & fo„ Mer
kind oftaaftiral itch

hazard endemic in
politics,' and must al¬

of occupational

inevitable,
who

I suppose,
afflicted
in

are

should

try

-way.

Bosworth & Co. Inc.: Kean,

Taylor

foistrews*&'WeS/

and wage controls upon thepeople; but surely "no

price

Popular de Puerto Rico;

Higginson Corp.; A. C. Allyn
and Co. Inc.; F. S. Smithers & Co.;
C. .F. Ciiilds .and Co. Inc.; Brauri,

is
that' those
this

Banco

Lee

be reckoned with: So it

ways

group include:,.,..

Thing's

the powers- of

meat over

body. In

that

true

the world of

inflation.

indulge in the Committee ma¬
the ulti¬
jority Hype of shorthand mathe¬ mate power to control Govern¬
that a basic source of the present matics—the profits
of the steel ment expenditures and receipts,
inflation lies in the fiscal action companies would have gone up by and thus they determine what the
more than $180 million.
of a Congress which, in two years,
Government's fiscal condition will
The fact is, however, that their be.
has raised the price of Govern¬
So when the Senator appeals
ment by $10 billion, and has left profits have dropped by $288 mil¬ to the leaders of American indus¬
behind it a $12 billion deficit—an lion in the 12 months that have try to help put the United States
action which is certain to give in¬ passed since that price rise oc¬ in the black, about the best thing
flation an added boost,
curred; and the rate of profit has that industry can possibly do to

tee majority could
or
the inclination

*-we

scarede&'hukWe-S&9 Sroup bid 100.0499Lf or a. corq-

used to be
letting someone'-else^ coritrolr

every

closer to the verge

correct, of course

'Price control' is avword: wd/al-

ways

Treasury-about $300 "million; and
were steel profits to be wiped out
increase completely, the Treasury would

and wonderful to behold.

cline

the

was
pffset by a decline in the
price of scrap, as if this were all
the cost a steel company has; and
the conclusions which they draw
from these statements are strange

been

into the red,"

deeper and deeper

Be¬

that

insist

of the wage

entire cost

If they were

only surmise.

same

they

that,

which

'
Gpodbody & Co.: Bacon, Whip¬

American

ple & Co.; F. Brittain

responsible memberarcoriferessknowing that authority and re-sponsibility must go togetherwould ever seek to do so.
? *

Ca; L

ons

Collins

Mayer; Provident

Trust

Co.;

"Kennedy &

& shafto Inc.; Julien
Co.;
Seasongood rxr
&

Savings Bank &

Park, Ryan, Inc.; and

ff'Janney, Dulles & Battles,,Inc.
!

,mam^ls

accountable directly to the .people •

constituencies. ■*
r
Neither, I suspect, would it be fallen from 7.2% on sales to 6.2%. aid the Senator in his dilemma, They are not accountable difectly in the personal political interest of In other words, had the companies so far as I can see, is to strive to to the owners, the customers or
the Committee majority to expose raised the price of steel enough to maintain the profits upon which the employees of any. business en- the extent to which the leadership cover their increased costs and to the Government leans so heavily terhrise, as management is; AndOct.
1
for Government or any-Coihfimittee
BUFFALO, N. Y.—^On
of; labor has been responsible for maintain their former profit rate for its revenues.
be adof Congress to try to usurp the George G. Herdman will
during this past year of low de¬
But
above
rising prices.
all,
consider the
So the; Committee majority has mand,
it would have taken a nature ahd the use of corporate functions-of management-^Ueither mitted to .partnership.'.- in S. D.
chosen to devote its resources to $10-a-ton price boost, instead of profits., What are they?
by intimidation or by law-r-is~as Lunt. & Co., Marine Trust Cornalien to our American: constitti- pany Building, members of the
anti-business attacks on industrial $6, to do the job.
Need for Corporate Profits
tional concepts as for'business to • New York Stock Exchange. Mr.
profits—attacks which 'have al¬
Repetitious Groundless
associated
Well the fact is that profit, over' try to usurp the functions-of-Gov-® Herdman. i has ■ been
ready
stimulated
considerable
Statements
ernmenf.
v'
'
^ with the firm and its predecessor
discussion of peace-time controls.
the years, is nothing
more nor
of

their respective

Herdman to be Partner

In S. D. Lunt Go.

Let's look at

the. kind

misinformation

quick sampling of
that

Now
these

the

official

reports

companies have been pub¬

the

lished and

show

certainly known to
taxpayers are getting out of
this Committee for their money. Jhe Committee and its staff. They
The Chairman of the Committee

keeps telling us, twelve months
later* that the $6-a-ton price in¬
crease
Qf last year has actually
cost the. direct buyers of steel $540
million and that the cost to the
consumer was undoubtedly pyra¬
mided to several times that amount.

Happened to Increased
-

Passing

Revenue?

considerable

room

for

improve¬

ment in his leveL of arithmetical
accuracy

shipped

the industry
64,308,000 tons of

since

just

tools

chines,

and

other

capital

cold war more

in the
and

quickly

what the facts are; yet these mem¬

tion of its

who

bers of the Committee continue to

cient

repeat

such

groundless

clarity

state¬

ments. And it makes you wonder
whether the Committee majority

really believes in adequate profits
for industry—and whether a busi¬
profit is

members

"destructive

the

Committee

would affect any company or

in¬

dustry, Sen. Everett Dirksen, in
his minority report on the Com¬

can

ernment's

th"3

which point the workers who once

shoukl

now

troll American

dustry into

can no

profits, indus¬

longer adapt the fruits
and
improve—as it

research

constantly
standard

has—our

living.
public interest?
Without
can

nation's

It that in the

enough profit, industry
longer develop the new

into .the

de-.

SenarrditrnomSCWyoLn«-;-

Is that in the public interest?
Without adequate

than that the
of Congress

finances

;

used these tools are without work.

try

what he called
philosophy" of
majority, as
it

the

profits,, industry

completely

"controlled" sthe.. Gov¬

have

longer replace its tools of produc¬
tion as fast as they wear out, at

part of its political

philosophy.

product. Without suffi¬

Hamlin & Lunt, for many years
:cashier and office manager..

; nothing

fact, I can think

that could insure a Soviet victoryas

self-same

embarrassing

Commenting

fact that there is

the

with

price which a corpo¬
for the use of all
of the plants, mills, furnaces, ma¬
ration must pay

assets that it needs in the fabrica¬

ness

What

are

less than the

to°™^

David A. Noyes Co.
To Admit New Partner
CHICAGO, 1U.-David A. NojJ,

& Co.; 208 South La. Salle Street,
business',aUd ta-^emb^rs. of the New York apd
Midwest
Stock
Exchanges,
on

allowed

state of acute capital Oct. 1 will admit Alec Margolis to
attempting to regu¬
partnership.
late all prices, wages and -profits
a

starvation by
from

Washington.

concept
of
what appears to some to be in the
public interest—as I " have de¬
If

this

scribed it
the

steel

■

unhappy

—

here—were

threat to

industry alone, I would

John

John S. Wright
Stdry

Wright, partner in

York
suddenly on

Morgan Stanley & Co., New

City, passed
Sept. 15.

away

Volume

183

Number 5778

The Commercial and
Financial Chronicle

V(1131)

Continued from first
page

(6)

Broadly-based enterprises
pitfalls for investors

have

Investment of Trust Funds
T

?
worries
however, and

the

better

u?™*

investor is
count

along
a

iW^en

'-an

ually
high.

The trustee will

keep

bond

quality

are

The

havo

important

thing

and

program

Our

••

stick

stocks

but

— - -—

uses

little.

market/ however,

v-,

this

where

it.

others

will

P°rate holders and the more reincome; for:,cen.t dividend credit benefit to ingrowth of dividuals.
/
r r
;
/

principal and ot income. <It is for ¥
Con^on sto„u Invps(mpnt
the trustee,
setting standards high,
common Mock Investment
to adapt
policy to meet the cir-.v 1 am convinced that common
cumstances of each individual ac- stock investments are better made
counf.
I

express

thoughts

some

(1)

philosophy;

nnlifiv

statements

some

that

tends

the

Then, too, I

space.

raise

may

quality,
readily

ability to achieve pertiming."It avoids what I term
entanglement."
tHat judgments

extent

based

To
are

on' the.

weighing of prob¬
abilities and not possibilities, there

questions tban I

peace-pf-mmd while

answer. If I speak
type of investing, I never^/?aJ
theless respect other choicest of

approach

price.

the

5Gu

value

"ticker-tape

dis¬

limitations

may

program.
:

admire

favorable.

necessity

the

use

than

issues,

how large the trust, improves protection at all. For many
*15

accounts
•

stocks

suffice.' Excessive

should

diversification

invites carelessness.
(10) Be aggressive:
Recognize

the

risks

such investment.

inherent

they

quo-

too

are

great to undertake, invest in other
fields.

(11)

Watch

sure".

Two

formed

pects

capital

your

lists

that

equally

well

expo¬

have

Objective

only if

75%.

scans

distant hori-

sur-

Generally speaking, there, tendsl
over a period of
time,-to be more
income where there is

E^esults""8'"8

prin¬

Growth

cipal. Subject to the requirements
of

each

is the best combined

example,

result.

$100,000

stock

Let

strike

balance between
principal

and

The

trustee

will

income considerations^ In

offiqe

$20,000

becomes

$1,000,000?

that, we,

act

may

jtfie1

^taleslnlnoi tfy..to
]

do.

tors rather than active traders will
be evident when I discuss the re¬

lationship of market
quisition values of
common

(at
this

for

was

p0rtiqn

recent

gories

For

will

.investor,

per

"blue

that
the

divides

two
into

broad
the

cate¬

same

two

not.

avoidance ol'

urge

which

said

we must

look

ahead, without benefit of hind¬
sight. -How may we, with as few

funda¬

often

dogmatic

one

middle

be flexible

ratio

ground

rather

than

assoHitps

re-

possible, ferret out really
high-grade values in particular

stocks

fit

into

siocks to 111 mio well-conceived
wen-

."investment .programs.'

or.

present

stock

pur-

viduals- and

general'

investment

the

injustice of covering it very brief¬
ly. In a nutshell, my philosophy
here calls for a
spread-maturity
pattern, varied from time to time.
have

bonds

distinct

nearer

leaning toward
quality to average

than

rating. I want

good yield differential

vate

on a pri¬
against a public
similarly reasonable

placement

offering,

spread

of net income

atesi

tax-exempts against Gov¬

ernments.

and
Bos-

one perone

em-

pattern,
accounts

new

accounts in each

not

too

cate¬

frequently that

Pev^ Personal trust is launched
'entirely in cash. When this does,

East

have

upon me.

certain

impressed

I give

corpor-

Callable features, and

sinking fund provisions should
favorable to the investor.

re-

increments
This

may

invite

accumulation

and

mis-

inventory

reduce

second,

the

because

supply""a^

stocks

ancy founded in

dollar

pr0Ve

the

wrong

reflect

part

belief

straight

than

will

right in

of
retirement
We have chosen to exercise

discretion.

our

wage
ship.

cost

everything

would

have
cor-

(2) Price-earnings ratios reflect

what

the

market

place

manageitient and of

thinks

industry

pros-

pects.

the

bonds of good quality and well

suspect

word

bonds

and

order

stocks

for

bonds,

in¬

income
de¬

termine if exempts are to be held.

Where the arithmetic of the siftiation does not call for

tax-exempts,

there is the choice between United

states

Governments

ates.

and

normally use both. In
corporates, utilities are our largest
category. • High grade^ industrials,

however, have considerable appeal
as
they drop to substantial dis¬
counts—say 8, 10, or more points
—especially if their sinking funds

potentially

(4)

of management

Stocks

ally "sell
ratios

low

are

that

ability.

characteristic¬

high

price-earnings
preferable to those with

ratios.

What

Our

strong

stock

common

the

(in

would

put

but

the market

seek

25%

30%

today and would

attractive

opportunities

to feed in the balance of the stock

Thus, at the outset,

a cer¬

Among

(3)
dent

com¬

Are they using correspon¬
banks' trust department re¬

sources

do their

you

cial departments?

Now, these
tions

and

commer¬

just

are

answers

few
at

ques¬

all.

trustee, in the final analysis, can¬
not delegate the exercise of
his, or
its,

discretion.

Investing remains

neither United States
bonds

the

are

nor

easy

common

savior

trust fund.

I would

again remind you that
original $20,000 compounded at

times

seven

becomes

$1,000,000. Where principal
is, there also may income be. The

trust fund well-balanced between

bonds and stocks has great merit.
we stick to high
standards, the

trust

departments of banks

take off their hats to
it

conies

no one

need
when

to trust fund investment.

Joseph Di Fonzo With
Capper & Co.
JERSEY CITY, N. J.—Joseph P.
Di

Fonzo, Jr. has become associ-

market

wihch

and

into longer bonds

partly into

Now, most of
been
for

with

them

common

for

stocks.
have

our accounts

current

stocks,
a

expect

some

and

on
the
This is

bonds,
values.

cutting back

common
over

the

pa^t three or four tax periods eft.
Thu£ the bite

individual accounts.
on

capital gains has

been spread
Many an ac-

count, originally invested to the
extent of 50% m commons, may

vary

the

bank

and

with

changing

industrials,
will

chemi¬

the

most

groups.

likely to be present. A building
material stock, a paper, a glass,
and fa. merchandiser
may
come
The pattern,

next.

ent book

value,

stocks and more
in bonds than the original amount
in

of the total trust.

Before the cut-

ting back

started in 1955

1956,

process

some

than

these

75%

one,

thf»
the

but

securities.

stocks and others.
Procedures
I

am
sure
you would like me
explain, in a few words, how
the best possible trust investment
results may be achieved. Were I
to undertake to do so, I would

stand

discredited

could,
three

before you.
I
probably within two or
hours, curdle your blood

ho-c^'

with the Present case to
^as0"s

fight together bei thoroughly confused

to how

accounts
common

cuts;

"yes"

Investment

benefit trusts have
had
their
biggest
development
within the past 15 years. Unlike
personal trusts,
these normally

"no"

d^ st c

the

form

cash,

tant than-

trusts *is

cases.

^Our basic policy for these
30%

for

at the outset and

not

yet

York State

bank in six

was

portion
does

investment

the

man.

not offer trust

exact

What pro¬

York

tion.

Advertisers Associa¬

He succeeds George

Knight,
advertising manager, Se¬
curity-First National Bank, Los
Angeles.
assistant

Also

bank

First

named

the

executive

not know. Neither do I know what

then 30%

of in-

proportion of the banks, general¬
ly has a full-time investment man.
this bit of information

about

National

Trust

were

Savings

Bank, San Diego, vice president;
and Raymond M. Cheseldine, Jr.,
advertising and publicity depart¬
ment, California Bank, Los An¬
geles, secretary-treasurer.

With W. C. Thornburgh
(Special to The Financial Chronicle)

services, I do

stocks

But

fornia Bank

Keith Sigars, advertising manager,

common

crements, but with some tempering of new buying in older ac-

Monahan,

answers.

whole, only one
employing a fullNew

Calif.—Jack
assistant
advertising
manager, Citizens National Trust
&
Savings Bank, Los Angeles,
Calif., has been elected 1958-59
president of the Southern Cali¬
ANGELES,

cemmittee of the Association

V„™.f
no sho

It was not long ago that I was
startled to learn that, for New

time

Advertisers Elect
LOS

science,

So. Calif. Bank

stocks

Capper & Co., 1 Ex¬
change Place, members of the Salt
Lake Stock Exchange, as co-man-

nnnrhps

"JJY be e^pec;v£ ®
otber words, there aie

Employee

Joseph Di Fonzo, Jr.

with

ated

however, is not
rather, we roll age^ of the trading department,
The urm ol Capper & Co., With
punches, hnninp" for aiv
hoping for aiv
direct wires to Denver, Salt Lake
agility adequate
to
fulfill
our
trustee's duties.
I have
already City, and Albuquerque, special¬
said
that
we
use
both
growth izes in mining, oil and industrial
fixed

policy calls for

40%

market

time

insurance shares.

The leading
equipment and office
equipment
representatives
a r e

alents

transfer partly

are

(2) Have they developed a flow
selected information on secu¬

rities of trust, quality from
petent investment houses? '

electrical

mahy

and present dividends.

Committee

oils

and

with
with

equiv¬
later to

substitute for short bonds in

ings and future dividends more
important than present earnings

Investment

work?

b^ch-SSJS,'
w,n
times.

prominent

Expected future increments

earn-

Trust

distribution

10%

cases)

ever, take a year or more to set

into

m<r/_

remaining
some

cals

people
think of an issue is important.
(5) Earnings are more impor-

dividends; future

(1) Have they, through the di¬

influence.

20 years, and the final third in
niore^kaa 20 years. It may, how-

come

other

ex¬

corpor-

are

For

than

types

trust

the

helpful?

prove

rectors, tapped the best invest¬
ment brains of the
community for

75%

Types of Trust Securities
A

can

stocks

shall return

will step up from 30%.

were

(3) Financial reports, important
they may be, are an imperfect

I feel

hard work:

measure

dollars to put into invest¬
analysis. Have they, how¬
ever, done all that can be done
along a few general lines, which
or

price-profit relation-

to the 30% basic policy. In case of
drastic decline of the
market, I

you a- out and/or reduced.

else„ the

effort

ment

Government
or

some

Bankers do not have to wrestle
with the question of how much of

later

that

of their day's work.

the still-

other

averaging

often

buoy-

that
-

pure

de a
(1) Management is about a 90% today have 60% of its market
gS',aa ~eriod with the c P
determinant ot success, industry value, but less than 30% of pres- similar Period, with the compcll:':9%,

face, when trust fund in¬

investment

funds.

bankers

chances of commodity price weak¬

common

makes

banks

problem

ample:

|^ear

and,

York

the

our

least two counts: first,

certainly

ness;

New

happen, we now have a 50% com- is
likely to find 75% of the total
nion stock
objective, with the ie- -n
industrials, 15% in utilities, and
maining o0% to find investment

basis

institutions,

truths

themselves

bond

60%

General Truths

•

balance.

Bond Investment
do

Company

Out of the
experience of 30 stocks that has extended
years' of investing for many indi--

about

chases."

I shall

old

after

.•'<

undOubt/S'\n lvastIy over-sim-<
pllfied„form- '

eently said, "We shall
edly lose money on the bonds we
buy today; but we probably will
lose

errors as

ideal stock-bond

Trust

cash

^ecause

tain amount goes into cash

fixed-income side, but would
similarly debate having less than;
25%
in
common
stocks.
This
broad

I shall

money.

latter.

the

Colony

First National Bank

' ! up this position. On the stock side,

chips."

Seriously, though,

debate the issue with anywho wants less than 25% on

leaves

Old

parts: those that succeed and those

would
one

practiced in the Trust Function of
The

growth

a,larger Current dividend.

Each

$408,500,000,

investment

have

the

serve

definable

mentally means part fixed-income
producing holdings and part com¬
I

maturities
Perhaps
bioad outline, one-thnd^ot the
A'^-special ""situation" is" any 'othdr'bonds »• should mature within 10
stock (cyclical, defensive, merger/y^ars,another third in from 10 to

505)

$143,500,000.

stocks.

situations.

define

earnings,, which

better

Balance

mon

both.

285% of the acquisition

Balanced

special

prospect,, etc.). Our office uses
My personal bias is toward
growth stocks. We like those in-

ac¬

aggregate

group
over

largest

Dow-Jones

market value of

total

stockholdings.

calculation
showed
which

values to

our

to the matter

come

investment policy,

gory.

and

would

long-term invest

are

now

purpose

should

beneficiary's tax bracket will

sBarei of "the stock/hrfd;' thSi',distributed

market what it-shall

That we

present

reduction

011 at

vestment.

Situation-Policy

shall -refer

as that of a company, in an
expanding industry, which is sufficiently well managed to retain
in the. business that proper pro¬

ity> .SQ

Present

and

stock

our

prefer
_a well-hedged
position which maintains flexibU-

Defined

The

take>

than

speak only of
sonal trust pattern and
ployee retirement trust

-stocks,

amount

75%

becomes

that

-—

than

use

compounded

times

but

this

that

rection of maladjustments

expect it to grow by
realize that an orig-

$2,000

seven

the

you

stocks

principal and

income

stocks

many

Sooner

in general, I
divide into two categories: growth

Common

account,
therefore, the
objective of investment

common

Stock

earnings had been so fully
discounted in the prices of so

past

the

ton.

l°hg view often

ery of

wished that there had been

investment sights

your

you

inal

zons.

■

arose, we

the

realize

vestment is only one of the facets

just before
the
Iraq
and
Lebanon
believed that fast recov¬

troubles

per¬

}Lei?!iJPr?uI
facing the

successfully

future.
(12) Set
high. For

{11
('[
tPhS-terr^^growth of the nations
*

seems

•

trust-type
fight

never

a defensive war in common stocks,

The

investment that

level

the

Kecently,

no matter

economy is a firm foundation for
economy: is. a firm foundation for' of

Investment

all

results.

the

qual¬

one

investment

Admitting
J

♦ •

•

dilute average

two

e£uGr..
Such an

stress

feet

Please be assured that this

because

disclaims

sound

the

subordinate

make

will

not

conclusions

puted.

shall

•

months away.

The First National Bank of
Boston
would agree with all I have to
I

judgment of

what earnings and dividends

Colony Trust Company and

Furthermore.

m^diate future, judgment

(2)
nuioi,

in Old

basis

would

investment

?!l0le„ctin£i?!!nstr the„_?£or£°!
human decision, I question that

ionS. tbrm rather than of .the im-r

personal

f ind
policy; nnH (3) procedures of trust
and
investment Not. all my associates

say.

the

;<■on

shall

and

going into commons.
policy today.

stock

For some,
however, emphasis ?
will be on immediate
^

50%

duce, at least temporarily, to 20%,

ity.

good yield' is being sought.
The
market position of
preferreds. has been improved by
their tax-shelter advantage to cor-

This-should always seek real values.

r-—

ways

recognize

high.

stocks

common

exceed

splitting

pre¬

market

ment eggs in the one best basket.
Diversification to the extent of

fundamental

Fuction

their merits, especially

re-

Trust

ferred

ways -

accomplish good investment

suits.

Preferred Stock Investment

pretty

many

real

have investment
consideration.

us¬

••;

......

In-stocks there

than mention

...

ac¬

investing
funds for others.
They qualify as
businessman's risks, not as trust
investments.

mortgages, leased
....

own

one

(7) Businesses free to set their
price levels have an edge on
regulated industries.
..

(8) No investment is perfect: all
estate, judgments are relative.
°il contracts, and other non-bond....
(if) Were judgment itself peror-stock possibilities should
today feet, we would put all our invest-

that

can

own

I shall do

way,

counts when and if

general stock market

case

buying for his

than when

fewer

do specialties.

than

\31

CINCINNATI,

Ohio—Julius

Pizzoferrato, Sr. has become affili¬
ated with the W. C. Thornburgh

Co.,

Fifth

Third

Bank

Building.

The Commercial and Financial
32

Chronicle

Thursday, September 18,1958

(1132)'
Continued from page

Bank Deposits
Faster Than

Rise

Our

Loans for

billion to $119.5

(Billions)

30, *57
(Billions)

65.565,570

$5,336,394

11,253,490

10,642,035

6,152,572
4,047,876
5,539,770

Curnlus
Undivided
and

5,371,303
4,582,929
5,017,382

profits

reserves

Other liabilities
Other resources

distributed
twice each year by Rand McNally
io banks, business firms, railroads,
insurance companies, hotels, and
other organizations requiring upto-date information on American
Directory

The

and foreign

banking.

over a

prices of all these securities
relatively short period of time.

Four more

:
'

(Special to The Financial

SAN

Calif. —
has become affili¬

George E. Wren
ated with

H. E. Work &

Co., 100

Bush Street.

recovery

and

Club of Detroit

the

ginning

elected the

and directors
year
1958-59, be¬

officers

fiscal

Sept.

total of 768,000 private and

construction compared with the

months. This year's eight-month
private total of 717,300 units was up from the 676,000 figure in
the like period of 1957, mostly because of the sharp rise in FHAassisted starts and steadiness in conventionally financed housing,
the department further noted.

In the automotive industry

the 10 United States car

makers

each stepped up assembly last
week, "Ward's Automotive Reports" declared. Programmed were
23,347 cars, 92% of them new models, compared to 12,016 in
currently turning out 1959 models

the

previous week.

stated "Ward's," are
General Motors divisions
Chevrolet, and American Motors.

Involved in

except

index

model manufacturing,

1959

Chrysler Corp. divisions, all

five

the

Ready to join the group of

figure

Chevrolet and perhaps
as

though the

Braun.

Bosworth

First

this week is

deadline date.

This week will see the
from

will

1959 car assemblers

Studebaker and Ford divisions. Looming
the United Auto; Workers im¬

barrier for Ford, however, is

posed Sept. 17 strike
a

final 1953 model

automobile emerge

factory, according to "Ward's." Phasing out such activity
Lincoln's Wixom, Mich., assembly plant, still producing

Lincolns and Thundcrbirds.

increased efforts by the
truck segment of the industry last week.
Schedules called for
6,303 trucks compared to 4,484 the week before. Holding down
the total were Chevrolet and Ford, idle for model changeovers.
Chevrolet began erecting new jobs on Monday of the current week.
The statistical

Michigan

Club,

which

this

year

Bir¬

Oakland Hills Country Club,

mingham,

Michigan

Golf Party and

Sept.

publication reported

Steel Output

Set This Week to

Reach Highest

Level This Year
Steelworks

operations which hit a 1953 peak last week
the next six weeks, barring an

continue to rise for at least

will
auto

.magazine predicted on Monday of this week.
steel orders are heavier than they have been
at any previous time this year. Reasons given by this trade paper
are the continued strong demand for construction products such as
reinforcing bars, wire mesh, galvanized sheets, standard pipe,
plates and structurals, increased demand for automotive steel,
bigger orders from appliance makers who are getting set for
Christmas, and increased buying for inventory replacement by

open

the current year activities.

Robert E. Carlson V.-P.

Of R. A. Underwood Co.
DALLAS, Tex.—Robert E. Carl¬

Co.

son

terms

were

three-year
Harry A. McDonald of

has

been

elected

vice presi¬

dent of R. A. Underwood & Com¬

Bank

Incorporated,

pany,

C. Spaulding of H. V. Sattley

ard

Co. who

the

officers

of Paine,

tis,

will
and

serve

Milo

along with
O.

retiring President, and John

Mr.

Mercantile
Carlson

has

been with the firm for some time

Osborn

Webber, Jackson & Cur¬

Building.

the1

ment.

municipal trading

depart¬
■

;•

stated that

miscellaneous consumers.

week, steelmakers boosted

Last

Outing to

with

McDonald-Moore & Co. and Rich¬

From January through August, a

-711,400 begun in the same 1957

observing
its 43rd anniversary,
will entertain its members at the

President, Wilfred J. Friday of:
Friday & Company; Vice-Presi¬
dent, Harry A. McDonald, Jr. of
McDonald-Moore
&
Co.; Secre¬
tary-Treasurer, Richard Wallace
of

BOSTON

119,000 compared with 11.1,000 in July and
The over-all advance, the agency added,
mostly in public housing.

public units had been put under

Directors elected for

CHICACO

Averaging out the annual rate of private housing starts for
eight months of this year, the department stated, brings
to 1,037,000 compared with 932,000 for the like period in 1957.

corporation.

INCORPORATED

☆

/ -

the first

Buying Area

Martin

Detroit Bond Ciub

for

☆

month, the Labor Department de¬

strike, "Steel"

following

☆

October 1950.

this category since

was

Competition from corporate and tax-exempt bonds keeps the
pressure on the Government bond market, in spite of reports
that state pension funds have been taking advantage of existing
prices to make purchases of these securities. Also, there is some
evidence around that certain money market specialists believe the
Government bond market is in a buying area.

DETROIT, Mich.—At a recent
meeting,
the directors
of The

NEW YORK

with

100,000 in August 1957.

in*business will be aided by the monetary authorities is
taken for granted. However, if the inflation spiral should become
more severe, there will most likely be further credit and money
tightening measures, but supposedly not so drastic as to interfere
with the recovery in business which now is in progress.

Bond

20 BROAD STREET

Government-backed mortgage
homes started under its
in August totaled 27,900, the biggest volume
begun

housing

The FHA report noted that

clared, amounted to

ment

The

8c Co.

Total home starts over the

vigor of the uptrend will be determined in a large measure by
what the automobile industry will do this Fall. That the better¬

Elect New Officers

Atjbrey G. Lanston

all

insurance program

Federal agency

Securities

building continued upward again

of private home

reported privately-owned housing

assistance.

one-half of the decline from the high

Government's Seen in

course

starts in August climbed
for July and the best monthly
figure since May 1956, when the total was 110,300. Last August,
private home starts amounted to 96,300.
,
The increase from the month before, the department observed,
It

Recovery Road

in business is moving ahead, even

to meet quick delivery

difficult for producers

108.800, topping the 107,300 figure

recently published data by the Federal Reserve Board
shows that the recovery in business is continuing in a very satis¬

The

the best level since January 1956, and the outlook
for proposed home construction showed a pickup after a twomonth drop, the United States Department of Labor stated, j

The

Specialists in
U. S. GOVERNMENT

The

most of the Federal

(December 1956) of 147 for the Federal Reserve Board's
production was made up in August when the
was 137.
The recession low was reached in April.

catering to them for the

in August to

in some measure by the sharp
increase that was noted last week in discounts and advances at
the 12 Central Banks of the system. These borrowings by member
banks increased substantially for the system as a whole, and in
the New York City area. It is evident that the Central Banks are
not going to keep their rates at levels which will encourage bor¬
rowings by the member banks, although, now as in the past, the
discount rate has not been a real penalty rate such as it is in most
large nations in the world.

factory manner and about

are

and

Banks can be accounted for

demands.

From Central Bank

the discount rate to 2% by

Business

The market is still competitive enough that
present. But it is becoming

quick deliveries.

the mills

the "prime bank" rate was

Heavy Borrowings

Chronicle)

FRANCISCO,

for

was

The increase in

one

Despite the growing strength of the steel market" some steel
users are playing with fire, this trade weekly noted.
Their inven¬
tories arc at rock bottom and they are still pressuring the mills

Trend

not a complete
surprise because there had been talk for some time that com¬
mercial loaning rates would be boosted. However, the uptrend in
loans so far has not been strong enough to indicate such a great
scarcity of funds as would seem to forecast an upward revision
in the rates the commercial banks charge their customers. Further
tightening of the money market by the powers that be, and a
real seasonal demand lor funds, could prove this latest increase
in loaning rates by the deposit banks was .justified.
increase in

weekly added, an auto strike, if one comes,
short-lived, with the chances if the auto workers
of the big three that the other two will not become

Meanwhile, the order books of virtually all steel companies
fattening. Backlogs on some products are growing, meaning
that some steel users will not get delivery when they expect it.
It also means that as orders mount, backlogs and delivery promises

agriculture.
The

Industry

are

and New York raised the borrowing
the Central Bank rate was followed
almost simultaneously by an increase in the "prime bank" rate
from 3 V2% to 4%, with the large New York City banks leading
the way, to be followed by important commercial banks in other
cities. This uptrend in the rate charged by the deposit institutions
of its best (risk) customers brought with it an upward revision in
all other loaning rates. This means that borrowers will have to
pay more for funds that are being obtained from banking institu¬
tions, and this will add to the cost of doing business.
The increase in the "priihe bank" rate also comes at the time
of the year when loans usually increase because of the need for
money to finance the seasonal requirements of Industry, commerce
and

strike ended.

mond, St. Louis, Cleveland
rate to 2%. This change in

out that the steel firms are sharply
competitive for automotive business, so they are likely to stock up
on semi-finished products even if an auto strike comes.
In this
way, they would be in a position to deliver quickly when the

last week increased
The Central Banks of Rich¬

from 1%% to 2%.

Continuing, it pointed

Federal Reserve Banks in the

the discount rate

problems would be a further guar¬

will become more extended.

Higher Interest Rate

The

continued rise in steel demand.

involved immediately.

has been very sharp and

of industrial

With H. E. Work

strike

money

decline in

Reserve

June 30, '53 June

CapitaLw>_•*

"prime bank rate" from

market specialists are of the opinion that the
rates will be slower from here on and, if this
should be the case, the market for Governments as well as corporates and tax exempts could make a better showing, since the
Some

The metal working

increase in interest

being invested in U.

include:

the increase in the

would likely be

weil as the increase in all loaning rates, means that
interest' rates are advancing and credit will not be so plentiful.
This also means increased competition for ail fixed income bearing
obligations. However, the extent of the rise in interest rates will
determine the future trend of the Government bond marxet.

Government and other

in the Directory

antee of

3V2 to 4%, as

billion.

S.
securities,
as. evidenced by a
rise in bankowned securities of more than $12
billion—from $85.2 billion on June
SO, 1957,- to almost ,$98 billion on
the same date this year.
."
The Directory's consolidated re¬
capitulation also shows that com¬
bined resources of, all U. S. banks
reached another all-time high by
climbing to a whooping $270 bil¬
lion, as compared with the $249.3
billion reported in June, ,1957.
The
trend
toward increased
bank mergers, consolidations, and
branches continued during 1958,
the Directory shows. On June 30,
1950, there were 14,131 banks in
the U. S., Alaska, and Hawaii—
104 fewer than a year earlier. The
number of branches increased by
679, from 8,334 to 9,213.
Other comparative figures shown

along with

Banks,

to the Directory, a
percentage of this deposit

increase is

settlement of Detroit's labor

further

Have taken the

appears to

tightening of the money market pretty much in stride. The upping
of the Central Bank rate to 2% by most of the Federal Reserve

According

large

CHIPPENDALE, JR.

Government market

The

since 1954
United
corporations and
individuals are increasing their
bank deposits at a faster rate than
they're borrowing.
This fact was reported in the
final 1958
edition of the Rand
McNally International Bankers
Directory, which has just been
issued with a
consolidated re¬
capitulation of bank liabilities and
resources as of June 30, 1958.
The Directory reveals that dur¬
ing the past year bank deposits
have risen from $223.5 billion to
a total of $243 billion, an increase
of $19.5 billion, while total bank
loans
have increased only $4.5
billion, from approximately $115
time

first
States

the

For

;

The State of Trade and

Reporter on Governments
By JOHN T.

First Time in Four Years

their production to

the year's

Operating furnaces at 65% of capacity rose two
points and turned out about 1,755,000 tons of steel. The best
previous effort was 1,751,000 tons, produced during the week
ended June 22. District rates were: St. Louis at 82.5% of capacity,

highest level.

3.5

points; Cincinnati at 79, up 2

points; Detroit at 74.5, no

points; Western district at 73, up
points; Wheeling at 68, down 0.5 point; Eastern district at 64,
up 1 point; Pittsburgh at 60, up 5 points; Youngstown at 58, up 8
points; Buffalo at 56, up 4.5 points; Cleveland at 54.5, up 6 points,
and Birmingham at 53.5, up 1.5 points.
It takes longer now to
get deliveries of steel, this trade
weekly observed. A month or two ago, cold-rolled sheets were
delivered in ten days.
Today, deliveries are promised for late

change; Chicago at 74.5, up 7.5
3

October.
The

m.-v.:'..

•

upturn in steel operations

attention

again

its

long-term

is causing the industry

expansion

to focus

Requirements; < the

Volume

Number

188

5778

The Commercial and Financial Chronicle

(1133)
publication added.

This will be discussed during the Association
of Iron & Steel Engineers .meeting in
Cleveland, Sept. 23-26.
The steel industry is a giant
today, but it will be bigger to¬

"Steel" said.

morrow,

to 250,000,000

will be needed in 1975, if steelmakers are

tons of steel capacity
to keep up with a pro¬

jected growth in population to about 221,500,000 people and an
anticipated rise in per capita capacity. That is 109,257,000 tons
more than the industry had on Jan.
1, 1958. Even if per capita
capacity does not rise, the industry will need about 185,000,000
of

tons

capacity in 1975.

On the basis of

"Steel"

of 73 producers of ingot steel,
it looks like the round of expansion started in 1955 and
being
completed this year will account lor close to 20,500,000 tons of
surv

capacity.
Steelmaking scrap prices last week held steady at $42.67 a
gross ton as steel plants limited their purchases.
Dealers think
the scrap market will spurt if the automakers reach a settlement
with Walter Reuther since high level steel production
assured through the fourth quarter.
The -American

Iron

operating rate of steel

and

Steel

Institute
will

companies

would be

announced

the

that

*111.9% of steel
1958, equivalent to
1,797,00(1 tons of ingot and steel castings (based on average weekly
production for 1947-49) as compared with an actual rate of *110.8%

capacity

the

for

week

beginning

average

Sept.

15,

capacity, and 1,780,000 tons a week ago.
Output for the week beginning Sept. 15, 1958 is equal to about
66.6% of the .utili^tipii^ot^he Jan. 1, 1958 annual capacity of
140,742,570 net tons
with actual production of 65.9% the
week before.-: V'.
'■
ForHhe like week aWorrth ago the rate was
*105.2% and pro¬
-

duction 1,690,000

tons.^A ypar

the actual weekly production

ago,

placed at 2,101,000; ton^Or 130.8%.
? *"T N ■' ■'' *
4'**
f
'
'
*Index of production is{J>ased on average

for. 1947-1949.

weekly

production

OutputfRegistered Gains the Past Week

The amount of electric energy

distributed by the electric light.
industry for the week ended Saturday, Sept. 13, 1958
was
estimated at 12,248,000,000 kwh.,
according to the Edison
Electric Institute.
Output after declining for three successive
weeks registered gains in the latest period.

and power

For the week

ended Sept. 13, 1958 output increased by 223,above that ot the previous week and 301,000,000
kwh. above that of the comparable 1957 week and also registered

kwh.

000,000
an

increase of 909,000,000 kwh. above that of the week ended Sept.

15, 1956.

Car

Loadings in Labor Day Holiday Week Ended Sept. 6
Declined 12.7% Under Preceding Week
>

Loadings of

revenue

ended

Sept. 6, 1958 totaled 563,351
12.8% below the corresponding
cars,

17.1%

below the

corresponding week in 1956.

In Latest Week
general

277.22
date

week earlier and compared with 290.42

makers currently

turning out 1959 models each

stepped

up assembly.
Last week's car output totaled 23,347

"Ward's."'

output rose above that of the previous week
by 11,331 units, while truck output advanced by 1819 vehicles
during the week. In the corresponding week last year 85,816 cars
and

car

16,777 trucks

assembled.

were

Last week the agency reported
in

the

United

week and

States.

16,777

This

there were 6,303 trucks made
compared with 4,484 in the previous

There

resulted
to

period

new

orders

orders amounted to 44%

were

1.2%

of stocks.

below

production. Unfilled
Production was 10.4% below;

shipments 11.6% below and new orders were 16.9%
previous week and 0.3% above the like week in 1957.
4
Business Failures Rise

below

the

Commercial and

normal

Moderately in Latest Week

industrial failures

rebounded

256

169

involving liabilities of $5,000

in the previous week and

or more

climbed to 219

edged above the 208 of this

An increase also occurred among small casualties
$5,000, lifting their toll to 37 from 22 a week ago and 29 in
the corresponding week of 1957. Liabilities in excess of $100,000
were incurred by 25
of the week's failures as against 20 in the
under

previous week.

slight rise

Fractionally Last Week

in the wholesale food

price index,
compiled by Dun & Bradstreet, Inc. from the 1958 low of the prior
week. The index registered $6.42 on Sept. 9, an increase of 0.5%
from -the $6.39 of a week earlier and 1.6%
higher than the $6.32
of the comparable date a year ago.
Higher in wholesale cost were rye, bellies, lard, butter, eggs,

the

bean prices

price index,
from

bit lower than at the end of the
prior week.
Volume, however, was unchanged. There was a slight; rise in; both A.
domestic and export demand for rice
during the Week.' It"is '
expected that this trend will continue in the next few weeks.

;Rice

prices, it

was

noted, matched those of

week earlier.

;4%4

sugar buying was sluggish last week with
prices
Although cocoa trading sagged at the
beginning of the
period, it rallied at the week-end, leaving orices
moderately higher
than at the close of the
preceding period. This was in part attributed
to improved manufacturer
interest.
A noticeable clip in coffee
futures prices occurred
following the news that the Brazil Institute

head had resigned.

■

;

While

hog prices declined at the beginning of the
week, smallreceipts at the close caused them to point higher. There was also
a
noticeable decline in cattle
receipts in Chicago; trading was
sluggish and prices below those of a week earlier. The
buying
of lambs continued at the level of the
prior week with prices steady.
-Although cotton prices moved up slightly in the middle of the
week, moderate declines occurred at the close,
resulting in prices
being fractionally under those of a week earlier. Trading
strength¬
ened on news of the
worsening situation in the Far East and re¬
ports of the movement of a tropical storm into the Gulf area.
Many
in the trade anticipated that the official
Sept. 1 crop forecast

Cherne,

rector,

The

Research

the comparable

Hotel

Executive Di¬

276.90

In¬

stitute

America, Inc.,
it

was

an¬

nounced

Commodity
Exchange
Pre

Harold

Rousselot. Mr.

were steady and
trading matched that of
Wholesalers reported an appreciable
drop in soy¬
purchases declined substantially.
4
' - V

Flour closed

the

Leo

Rye prices

week earlier.

Cherne, internationally
Leo M. Cherne

famous

econ¬

omist, noted
for his comprehensive analyses of
business, political and foreign af'fairs, will make one of his rare
public appearances to highlight
recent government

actions, current
signifi¬

economic trends and their
to

cance

today's commodity

mar¬

kets.

1 :
■)
■ A
Yorker, Mr.
Cherne was a practicing attorney
when, in 1936, he joined Carl
Hovgard, now President of the
Research Institute, to develop a

native

New

research

organization to meet the
challenge presented to business by

economic revolution. In 1938 he

foresaw World War II and under¬

would be somewhat

higher than the August forecast.

Consumer

buying

sustained

was

high level last

week

a year ago.
Shoppers were primarily
interested in back-to-school and Fall
apparel, furniture and food
products, while the volume in appliances and new passenger cars
lagged.
'

volume

retail

was

trade

from

part m drafting the Army
Navy industrial mobilization
plans.
and

As Executive Director of RIA he

carries

the

responsibility for

the period ended on
below to 3% higher

year

ago, spot estimates collected by Dun &
Bradstreet,
Regional estimates varied from the comparable 1957
levels by the following
percentages: South Atlantic States +3 to

the

advice and guidance extended by
RIA to its more than 30,000 mem¬
the

with volume close to that of

dollar

took his

ber business

Trade Review of the Week

staff

He directs

concerns.

that

analyzes economic
and political trends and provides
executive guidance in the fields of

taxation, industrial and human
relations, business management,
sales and marketing.
Mr.
1955

Cherne

Award.

Mayer
he

1956

the

awarded

was

Lawrence

Peace

received

Christopher Award together with

4-7%; Middle Atlantic +1 to +5; East South Central and Moun¬
tain 0 to -j-4; Pacific Coast —1 to
-p 3; New England and West

North Central —2 to

Retailers

-J-2; East North Central —4 to 0 and West

former President

and

stantial increase from both the prior week and

year ago

Committee and active in the

Freedom Fighters for

(Special to The Financial Chronicle)

PORTLAND,
Wilson

Housewives increased their buying of fresh
meat, some dairy
products and fresh produce last week. Interest in canned goods,
frozen foods and baked goods equalled that of a week earlier.

Sloan &

women's coats and suits and children's back-to-school

Buyers' attendance at New York markets

was

record level with many wholesalers reporting limited inventories
of women's
clothing, especially coats, dresses and

Hungary.

With Donald Sloan

in the

and total sales matched those of last
year.

were

Hoover

Chairman of the International Re¬

sportswear, better dresses and fashion accessories.
slight rise in the buying of men's topcoats and suits accurred

sellers

Herbert

John

Kennedy.
He
top advisor to the govern¬
ments of Viet Nam, Free Berlin,

call for women's
A

Senator

scue

reported

moderate year-to-year gains in sales of
children's back-to-school
merchandise, especially boys' sports
jackets and slacks and girls' sweaters and skirts. There was sub¬

Oreg.

Zalph

Donald

—

with

now

Co., Cascade Building.

Walston Co. Adds
(Special to The Financial Chronicle)

PORTLAND, Oreg.
Volk

has become

—

Albert J.
with

connected

Walston & Co. Inc., 901

Southwest

Washington Street.

sportswear.

Volume in men's apparel was sustained at

high level.

Increased orders for upholstered chairs, bedding and occasional
helped boost over-all furniture volume at wholesale and
sales matched those of a year ago. There was a considerable rise

With Zilka, Smither
(Special to The Financial Chronicle)

tables

in purchases of housewares at Chicago markets and volume in
hardware advanced appreciably in some Eastern centers. The call
for major appliances expanded somewhat, with principal gains in

MEDFORD,
Davis is
&

now

Oreg. —Dcnald D.
with Zilka, Smither

Co., Inc., 933 Pearl Street.

Joins Zilka, Smither
(Special to The Financial Chronicle)

Department store sales
the

Federal

Reserve

on a

Board's

country-wide basis

index

for

the

taken from

Labor

Day Holiday
Sept. 6, 1958 rose 2% above the like period last year.
In the preceding week, Aug. 30, 1958 an increase of 3% was re¬
ported. For the four weeks ended Sept. 6, 1958 a gain of 3% was
also registered. For the period Jan. 1, 1958 to Sept.
6, 1958 a de¬
crease of 1% was reported below that of 1957.
week ended

Retail

sales

volume in New York City the past week
above the volume of the like week a year ago,
according to estimates by trade observers.

With

decline in temperatures apparel sales moved well and
important factor in the week's showing.

According to the Federal Reserve Board's index, department
in New York City for the Labor Day Holiday week
ended Sept. 6, 1958 showed an increase of 4% from that of the like
period last year. In the preceding week, Aug. 30, 1958 an increase
store sales

of 4%

reported.

For the four weeks ended Sept. 6, 1958 an
increase of 3% was reported. For the period Jan.
1, 1958 to Sept. 6,
1958 an increase of 1% was registered above that of the corre¬
sponding period in 1957.
was

PORTLAND, Oreg. —- Quentin
Sidesinger is now with Zilka,

Smither & Co., Inc., 813

Southwest
members of the Pacific
Coast Stock Exchange.
Alder,

R. R.

trade

climbed 5 to 10%

proved

Wholesale Food Price Index Rose
was

dishwashers, automatic laundry equipment and television sets.

size last year.

There

that

the

Sept. 11 from 191 in the preceding Labor Day Holiday
week, Dun & Bradstreet, Inc., reports. Although casualties ex¬
ceeded slightly the 237 in the similar week a year ago and the
203 in 1956, they remained 5% below the prewar total of 269 in
the comparable week of 1939.
Failures

Astor, will b&

a moderate decline in
the buying of wheat which
lower prices. The wheat
market, however, returned
with the settlement of the
grain handlers strike in

Minneapolis.

week ended

from

Ballroom

was

merchandise.

Day Holiday Week Ended Sept. 6, 1958

Lumber shipments of 461 reporting mills in the Labor
Day
Holiday week ended Sept. 6, 1953 were 7.4% above production,
according to the "National Lumber Trade Barometer."
In the
same

Attempting to replenish depleted stocks, retailers noticeably
boosted their orders for Fall apparel during the week.
Best¬

a year ago.

*Lumber Shipments Rose 7.4% Above Output in the
Labor

■

Anniversary Dinner of CommodityExchange, Inc., on Oct. 9, in the

butter held

South Central States —6 to —2%.

units and compared with
12,016 <revised) in the previous week. The past week's production
total of cars and trucks amounted to 29,650
units, or an increase
of 13,150 units above that of the previous week's
output, states
Last week's

■■

Inc. reveal.

Automotive production for the week ended
Sept. 12, 1958,
according to "Ward's Automotive Reports," increased as the ten
car

■■■

International tension in the Far East stimulated
grain trading
early in the week, but volume slackened on more
estimates of
record crops. The corn
crop is expected to be the second largest
on record and the
largest since 1948. Although corn volume de¬
creased, prices were close to those of the preceding week.

than

Manufacturers Stepped Up the Pace of
1959 Model Assemblies

IfOlllllftOulVV EXClldlt£fi

year ago.

Wednesday of the past week

Leo Cherne to Address

Grand

livestock, lard, coffee and
commodity price level somewhat below
prior week. On Sept. 8 the daily wholesale
commodity
compiled by Dun & Bradstreet, Inc., decreased to
the

Total

Automotive Output Increased the Past Week

United States

Commodity Price Index Declined Fractionally

Lower prices on some

freight in the week ended Sept. 6, 1958,
Holiday, were 82,081 cars, or 12.7%

cars, a .decrease of 82,766 cars, or
1957 week, and a decrease of 116,300

Featured speaker for the Silver

Wholesale

which included the Labor Day
below the preceding week.

.Loadings for the week

«■-

steady.

%4V'

Electric

flour, wheat,

were

The index represents the sum total of the
price per pound of
31 raw foodstuffs and meats in
general use and its chief function is
to show the general trend of
food prices at the wholesale level.

Domestic

was
.

potatoes and hogs. Commodities quoted lower
corn, hams, tea, cocoa and steers.

Gray Opens

111. — Richard R.
conducting a securities

MATTOON,
Gray

business
troleum

from

offices

the

Pe¬

Building.

Forms Houben & Co.
CHEVY

CHASE, Md. —Joseph

M. V. Houben is

curities

engaging in

business

5065 Bradley
.

a se¬

offices at

from

Boulevard under the
TT...1

nsx

The Commercial and Financial Chronicle

(1134)

Thursday, September 18,1958

* INDICATES

Now in

Securities

(letter of notification) 13,600 shares of class B
common stock
(no par), of which 11,100 shares are to
be offered for subscription by stockholders (rights to
expire Oct. 15, 1958); and 2,500 shares are to be offered
to employees under the stock purchase plan.
Price—
$20 per share.
Proceeds—For working capital. Address
—Route 128, Reading, Mass.
Underwriter—None.

Corp.

it Addressograph-Multigraph

(10/8)

Sept. 17 filed 141,113 shares of common stock (par $10)
be offered for subscription by common stockholders
of record about Oct. 7, 1958 at rate of one new share for
to

held; rights to expire

each 20

Barney & Co., New York.
Amber Oil Co.,

Inc.

Sept. 5 (letter of notification) 125,000 shares of common
(par $1). Price—$2 per share. Proceeds—For de¬
velopment of an oil and gas property. Office—1305 Con¬
tinental Life Bldg., Fort Worth, Texas.
Underwriter—

Leeford Co.,

Inc., Fort Worth, Texas.

it American Box Board Co.
Sept. 11 filed 49,732 shares of common stock (par $1) to
be offered in exchange for Wolverine Carton Co. common
stock at the rate of two shares of American for each
share of Wolverine.
The offer is subject to acceptance

(23,623 shares) of Wolverine common
stock; however, American may declare offer effective
whenever it has been accepted by not Jess than 80%
by at least 95%

(19,983
stock.

outstanding Wolverine

of the

common

Co.

(N.

Y.)

(par 200).
Proceeds — To

supplied by amendment.

discharge current liabilities and to drill ten wells.

Un¬

derwriters—To be named by amendment.

it American Cement Corp. (10/8)
Sept. 17 filed $20,000,000 of sinking fund debentures due
1978. Price—To be supplied by amendment. Proceeds—
To reduce bank loans and for expansion program. Under¬
writer—Blyth & Co., Inc., New York.
American Mutual Investment Co.,

Inc.
Dec. 17 filed 490,100 shares of capital stock. Price—$10.20
per share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter
None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President,
—

i American Oil Producers,- Inc.
Sept. 10 (letter of notification) 100,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—For
development of oil property. Office—511 South Fifth St.,
Room 5, Las Vegas, Nev. Underwriter—None.
•

American Telemail Service, Inc.
See United States Telemail Service, Inc. below.
!
Ampal-American' Israel Corp., New York
Aug. 8 filed $3,289,100 of 10-year discount convertible
debentures, series E. Price—61.027% of principal amount,
payable in cash or in State of Israel Independence Issue

Development

ment and

Issue

bonds.

Proceeds—For

develop¬

expansion of agricultural, industrial and
Underwriter—None.

com¬

mercial enterprises in Israel.

Anderson Electric Corp.
Dec. 23, 1957 (letter of notification)

association.

Proceeds

—

offered

For

members

working

capital.

New

York

stock

(9/25)

(par* S2).

be supplied by amendment.
Proceeds—For
general corporate purposes.' Control—Over 98% of stock
owned by Citizens Casualty Co. of New York.
Under¬

Higginson

Corp., New York.

stock

(par one cent). Price—$1 per share. Proceeds—To
additional costs of construction; and for retirement
of obligations and working capital.
Office — c/o John
Harlan Lowell, 2200 Kenton, Aurora, Colo. Underwriter
—Lowell, Murphy & Co., Inc.; Denver, Colo.
>
' /

Under¬

Columbia & Rensselaer Telephone Corp.
Aug.

held.

(par

notification)

2,800 shares of common

to be offered for subscription by stock¬
ale of one new share for each 2.572 shares

Price—-$60

per

share.

Proceeds—For construction

telephone plant. /Office—19
Chatham, N. Y. Underwriter—None.
ui

Fidelity Life Insurance Co.
slock

(no par)

holders at the

equipment, working capital, etc. Office—One Kennedy
St., N. W., Washington 11, D. C. Underwriter—None.
Feb. 28 filed 258,740 shares of common

(letter

stock

—

common

pay

(formerly Central Aircraft Corp.)
Sept. 5 (letter of notification) 50,000 shares of common
stock. Price
At par ($1 per share). Proceeds — For

Bankers

Co.

Clute Corp.

the

Insurance

150,000 shares of

ISSUE

Aug. 21 (letter of notification) 300,000 shares of common

writer—None.

it Ballard Aircraft Corp.

REVISED

Price—To

(par

$50) and $1,500,000 of 5% subordinated registered deben¬
ture notes, second series, and $606,000
of 5% coupon
debentures.

ITEMS

Clary Corp.
•.•■■■..
>
Aug. 27 (letter of notification) an undetermined number
of shares of common stock
(par $1) to be offered to
stockholders on a pro rata basis (with an oversubscrip¬
tion privilege). Price—At the market (estimated at about
$3.87V2. per share). Proceeds—For working capital. Office
408 Junipero St., San Gabriel, Calif. Underwriter—None.,

Inc., Seattle, Wash.

June 30 filed 4,788 shares of common capital stock

Life

Sept. 4 filed

writer—Lee

subsequent to that date.

Associated Grocers,

$1/

which

Railroad

new

Avenue,

(par $1). Price — $12 per share.
To go to selling stockholders. Office — 700
Street, Birmingham, Ala. Underwriters—Cruttenden, Podesta & Co., Chicago, 111.; and Odess, Martin
& Herzberg, Inc., Birmingham, Ala.
—

Anita Cobre U. S. A., Inc.,

Phoenix, Ariz.

30, 1957, filed 85,000 shares of common stock.
Prices—At par ($3.75 par share!). Proceeds—For invest¬
ment in subsidiary and working capital. Underwriter—
Selected Securities, Ina, Phoenix, Ariz.x
v
/

Co., Los Angeles, Calif.

June

4 filed 172,162 shares of common stock
(par $1)
being offered for subscription by holders of outstand¬
ing common stock at the rate of one new share for each

five shares held

on July
7, 1958; rights to expire about
Sept. 22, 1958. Price—$14 per share. Proceeds—To pay
off an equivalent portion of the
company's current bank
loans which, at May 15,
1958, amounted to $8,450,000.
Underwriter—None. Statement effective July 7.

THE STOCK ANSWER
Looking for
crease

your

the question of how to in¬
sale of stocks? It may well be the more than
an answer to

1,400,000 stockowners in Chicago and Mid America. In
stocks alone

they hol$ more than $20 billion. For details
sell more securities in Chicago and Mid

how you can

America, talk

to a Tribune

Refining Corp-.
Dec. 16,1957 filed $25,000,000 of first mortgage bonds due
Sept. 1, J 968, $20,000,00 01 subordinated debentures due
offered in units as follows: $l,00u of bonds and 48 sharei

representative.

dHjinujo QftiJbxrae
THE

WORIDS

most

CREATES?

NEWSPAPER

widely circulated market table pages

Oct.

Underwriter—None.

Bankers

Price—To

filed

Co., Inc., New York.

selling stockholders.
•

•

filed $35,000,000 of first mortgage bonds due
(subsequently/increased ;to $40,000,000 principal
repay

short-term bank loans and

Stanley &

Co.; White, WeJd & Co. and Shields & Co.
(jointly); The First Boston Corp. and Harriman Ripley
(jointly). Bids—To be received up to 11 a.m.

& Co. Inc.

(EDT) on Sept. 23 at office of Commonwealth Services,
Inc., 300 Park Ave./ New York 22, N. Y.
•

Consumers Power Co.
1
;
/ '
V
Aug. 29 filed 150,000 shares of preferred stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term bank loans and for expansion and im¬

provement of service facilities.

Stanley & Co., New York.
initely. /

Calidyne Co., Inc., Winchester, Mass.June 4 filed 230,875 shares of common stock (par $1)
These shares are issuable upon conversion1 of an ag¬
gregate principal amount of $923,500 of 10-year 3% con¬

Underwriter

:—*

Morgan

Offering—Postponedindef¬
"*

•'

.«

Cooperative Grange League Federation
Exchange,. Inc.
.

June

Calidyne Co.,

filed

$400,000 of 4% subordinated debentures,
10,000 shares of 4% cumulative preferred .stock (par
$100) and 200,000 shares of common stock {par $5).
Price—At par. Proceeds—To be added to working cap¬

limited partnership, which notes

were assumed by the
Dec. 31, 1957.
The notes are convertible at
any time after July 1, 1958, until the maturity or prior
redemption of the notes at a conversion price of $4 pei

company

share.

for
expansion and improvement'of service facilities.
Underwriter—To be determined by competitive bidding.
Probable bidders:* Halsey, Stuart & Co/ Inc.;' Morgan

Corp.,. Far Hills, N. i.
1,003,794 shares of class A stock (par $1)
and 15b,569 shares of class B stock (par 60 cents), the:
class A shares to be issued in exchange for oil and/or
gas properties and the class B shares to be issued as com¬
—

•

1988

Cador Production

Cador, Inc., ;Far Hills,
Sept. 8.
..

Underwriter—None.

amount). Proceeds—To

Aug. 7 filed

Underwriter

Consumers Power Co. -(9/23)

Aug.

Co., New York.

Statement effective

Petroleum

Corp.
July 1 filed 419,000 outstanding shares of common stock
(par 20 cents). Price—Related to the current market
price on the American Stock Exchange. Proceeds-r-To

warrants, one warrant to expire 18 months
from the date thereof, exercisable at $3.25 per share, and
one warrant to expire 30 months, from the date thereof,
exercisable at $3.50 per share. Price—$3 per unit. Pro¬
ceeds—For working capital. Underwriter—Charles Plohn

missions.

nine shares of stock.

by amendment. -Proceeds

purchase

•

supplied

Consolidated Cuban

ir Bowling Corp. of America (10/10-15)
Sept. 11 filed 450,000 units, each consisting of one share
of common stock (par 10 cents) and two common stock

stock to be

common

— To
refinery. Underwriter—Lehman Brothers, New
Offering—Indefinite.
;
/
:
/<!
:i
T

Vork.

Bankers Southern, Inc.
April 14 filed 8,934 shares of common stock. Price—At
par ($100 per share). Proceeds—For general corporate
purposes.
Underwriter — Bankers Bond Co., Louis¬
>

construct

/'%

ville, Ky.

1, 1968 and 3,000,000 shares

of stock and $100 of debentures

Management Corp. (10/15)
;
400,000 shares of i common slock (par 25
cents.) Price—$1 per share.
Proceeds—To reduce out¬
standing indebtedness and for working capital. OfficeHouston, Texas. Underwriter — McDonald, Holman &
Feb.

ital.

Underwriter—None.

Office—Ithaca, N. Y.

Counselors

Underwriter—None.

Research

Fund, Inc., St. Louis, Mo.
Feb. 5 filed 100,000 shares of capital stock, (par one
cent)..
Price—At market.
Proceeds—For investment.

• California Corp. for Biochemical Research
Sept. 8 (letter of notification) 150,000 shares of .common
Price—At par ($1 per share). Proceeds—To ac-r
quire the assets of California Foundation for Biochemical

Underwriter
Louis.

—

Counselors

Sales

Research

Corp.,

St.

Robert H. Green is President.

Research and for

working capital. Office—3625 Medford
St., Los Angeles 63, Calif. Underwriter—None. ;

Cuban-Venezuelan Oil

Voting Trusts,

Havana, Cuba /,

Carrtone

Laboratories,
(Mew Orleans), La.

Inc.,

Metairie

July 2 filed 600,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For expansion,
working capital and other corporate purposes. Under¬
writer—None.
Central Oils Inc., Seattle, Wash.
July 30 filed 1,000,000 shares of common stock; Price—
At par (10 cents per share).
Proceeds — For drilling
costs* Underwriter—None. Offering to be made through
A. R. Morris and H. C. Evans, President and Vice-Presi¬
dent, respectively, on a best-efforts basis. Office—4112
Arcade

Building, Seattle, Wash.

Charles Town Racing Association, Inc.
Sept. 9 filed 4,000,000 shares of common stock (par 10
cents), represented by voting trust certificates, of which
3,530,000 shares are to be offered to the public and the
remaining 470,000 shares have been issued to nine per¬
sons, who may sell such shares at the market. Price—60
cents per share. Proceeds — For construction of racing
plant and acquisition of equipment.
Office—Charlestown, W. Va. Underwriter—None.

Cinemark

Mid America's

Commerce Oil

stock.

Sept.

Arden Farms

125,000 shares are to be offered publicly ano
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share. Proceeds—Foi
expansion and other corporate purposes.
Office — At¬

14,700

44th

sold

vertible subordinated income notes of the

stock

common

Proceeds
N.

and 9,805,603 shares of
publicly under an ear¬
lier registration statement. Under an underwriting agree¬
ment between the company and Public Development
Corp., the underwriter, the latter will be entitled to re¬
ceive common stock equal in par value to 10% of the
par value of all stock sold pursuant to this offering and
subsequent to June 30, 1958. Common shares will also
be issued in an amount equal to 5% of the debentures

•

Feb. 28 filed 500,000 shares of common stock

Price—To be

class B

Citizens

Phoenix, Ariz.

lanta, Ga

shares)

•

American-Caribbean Oil

Finance Co.,

issue of $981,700 5% debentures
common stock now being offered

bearer

stock

Public

Sept. 2 filed 902,808 shares of common stock, which are
issuable as underwriting commissions on the sale of an *.

about Oct.

22, 1958. Price—To be supplied by amendment. Proceeds
—For general corporate purposes.
Underwriter—Smith,

Registration

Arizona

Addison-Wesley Publishing Co., Inc.

Sept. 3

ADDITIONS

SINCE
•

Productions, Inc.
notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office — 937 Acequia Madre Rd..
June 30 (letter of

Santa Fe, N. M.
•

N. M.

Underwriter—-Watson & Co., Santa Fe,
•

•

March 31 filed 767,838 units of voting trust certificates,
each certificate representing the ownership of one share

<3tf

stock

one-half cent) in. each of 24
Price — To be supplied by amend¬
ment.
Proceeds—For capital expenditures, exploration
costs and other corporate purposes. Underwriter—None.
common

Ctrban

(par

companies.

Daybreak Uranium, Inc., Opportunity, Wash.
Jan. 29 filed 1,156,774 shares of common stock (par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and 526,774. shares for selling stock¬
holders.

Price—At

market.

Proceeds—For

exploration
Under¬

and drilling costs &nd other corporate purposes.
writer—Herrin Co., Seattle, Wash. ' :
4 "
Derson

Mines Ltd.

■

June 5 filed 350,000 shares of common stock.

Price—$1
share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under option, and other

per

corporate purposes. Office—Toronto," Canada, and* Em¬
porium, Pa. Underwriter—None.
1,
.

it Dow Chemical Co., Midland, Mich.
Sept. 11 filed 175,000 shares of common stock

(par $5)
to be offered to employees of the company, its subsidi¬
aries, and- certain associated companies. By a separate
registration statement the company plans to offer 12,500
additional shares of the said stock to employees of Dow
Corning Corp., a 50% owned subsidiary of the corpora¬
tion.

188-.• Number 5778

Volume

The Commercial and Financial Chronicle

Electronic Supply Co., Los

(1135)

Angeles, Calif.
(letter of notification) not in excess of $50,000
aggregate value of common stock (par 50 cents) to be
sold in State of California only. Price—At market (es¬
timated at* about $12.25 per share);' Proceeds—To sell¬
ing stockholders. Underwriter—Bateman/Eichler & Co.,

ceeds—To be used solely for purchase of notes and other
indebtedness issued in payment for improvements on

Los Angeles, Calif."

Price—To

Aug. 8

par

expense

tion.

improved properties.
•

?
r Price—

:r;,

•.

a••

Louisiana

Forest
March

•

ceeds—To
mont

take

over

Motor Hotel

working capital.
drawn

June

Office—105 N. Sage St.,
Toccoa, Ga.
:
'• • .:
/'

Underwriter

Fremont Valley Inn
Aug. 6 (letter of notification) 300,000 shares of common
stock. Price—At par ($1
per share). Proceeds—To erect

unit.

and operate an activities

building, comprising a restau¬
rant, cocktail lounge and coffee shop. Office—3938 Wilshire Blvd., Los Angeles, Calif. Underwriter—Oscar
G.
Werner & Co., Pasadena, Calif.

in Baton Rouge;.for equipment; and
Underwriter—None. * Statement with¬

27.

Co., Inc., Clifton, N. J.
$1,000,000 of 12% notes, payable nine
months after date of issue in units of $100 or in mul¬
tiples thereof. Price—100% of principal, amount Pro¬

April

Frontier Refining Co., Denver, Colo.
(9/22-26)
Aug. 29 filed $2,000,000 of 5%%, 5%%, 6% and 6y2%
serial debentures, series of 1958.
Price—$1,000 per unit.
-Proceeds—For-working capital. Underwriters—Peters,

filed

CALENDAR
(Monday)

September 22
Frontier Refining lCo

October 9

:—-Debentures

Arabol

■v

V'",..."

,,•?

writer

Peters,

„

Christensen,

Inc.

and

September 23
r

Consumers

Vi J.V-

;

(Kingdom

(Harrhnan
"*T

Freres

Ripley
&

Co.

and

Smith,

Loeb

Kuhn,

Inc.;

Barney

(EE's

Co.)

received)

(Charles,

Plohn

Power

$15,000,000

General Devices, Inc., Princeton, N. J.
(letter of notification) 40,000 shares of com¬
mon stock
(par $1) to be offered for subscription

by
approximately 18.5 shares
shares held about April 15; unsubscribed
shares to
public.; Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter

for each

the

rate

—None.

Georgia Casualty A Bursty Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1).
Price—$6 per share. Proceeds — Fon general corporate
purposes. Underwriter—Buckley Enterprises, Inc.

Co.

Co.)

Common

$1,350,000

(Tuesday)

October

_____—Common

Bankers

Bonds

Management

(Wednesday)

Common

(McDonald, Holman & Co., Inc.)

(Thursday). ^

October 21

Citizens Life Insurance Co._____—___—Common
*

150,000 shares'

$400,000

•

Glassheat

Corp.
(letter of notification) 150,000 shares of class A
common stock (par 10 cents).
Price—$2 per share. Pro¬
ceeds—For general corporate purposes.
Office—1 I.
S5th Street, New York 10, N. Y.
Underwriter—James
^thony Securities
<*7 Wall St., New York 5, N. Y«,
Statement may be withdrawn.

ir Grand Prix, Inc.
Sept. 11 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For in-*
ventory, equipment, plant, working capital, etc. Office—
710

South

Fourth

St., Las Vegas, Nev.

Great American Realty Corp., N. Y.
Aug. 18 filed 484,000 shares of class A stock (par 10 f
cents). Of this stock, the company proposes to offer*
400,000 shares and certain selling stockholders 40,000
shares, the remaining 44,000 shares being subject to*
option to be offered for the account of the underwriters.
Price—To be supplied by amendment.
Proceeds—Forr
working capital and other corporate purposes. Under¬
writers—Joseph Mandell Co. and Louis L. Rogers Co.,
both of New York, on a best efforts basis.

Aug.

(letter of notification) 31,011 shares of com¬
(par $1) to be offered to stockholders on the

stock

one

share for each

seven shares held; war¬
Unsubscribed shares to be
offered to stockholders until Oct. 20, 1958; then to pub¬
lic.
Price—$3 per share. Proceeds—For general funds
to be used for expansion. Office—119 W. Rudisill
Blvd.,
Fort Wayne, Ind.
Underwriter—Northwestern Invest¬
ment Inc., 502 Gettle Bldg., Fort Wayne, Ind.
new

Sept. 20, 1958.

Guardian Insurance Corp., Baltimore, Md.
Aug. 16, 1957, filed 300,000 shares of common stock, ol
which 200,000 shares are to be publicly offered and the
remaining 100,000 shares reserved for issuance upon ex¬
to be sold at 25 cents per

are

Universal-Cyclops Steel Corp..
:

•

(A,

Becker

Co.,

September 30

—-Debentures
$22,500,000

Inc.)

(Bids

(Tuesday)

"'X*•

Florida

-"'•"'•(Bids noon'CDT)

Steel
•

Corp

Kidder.

-Peabody &

Co.)' 74,925

Jo.,

•.

-v.

stockholders—no

October

•'

180.000

;

underwriting)

(

(Bids

11:30

„

$5,310,000
-

(Tuesday)

(Bids

invited)

Common

$80,000,000

(Bids to be
'

Equip. Trust Ctfs.

received) $6,450,000
k

■

«
■

>•

—Debentures
EDT)' Sld.OOC/JOO

Kuhn,

Loeb

Consumers

Co.)

Power Co.—

Preferred

(Morgan Stanley & Co.)

$15,000,000

termined by
competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Lehman Brothers; Merrill
Lynch, Pierce, Fenner & Smith and White, Weld & Co.
(jointly); Stone & Webster Securities Corp.; and Salo¬
mon
Bros. & Hutzler and Eastman Dillon, Union Se¬
curities & Co. (jointly). Bids—Had been expected to be
received on Sept. 15, but has been indefinitely post¬
poned.
(
*
v

invited)

(Monday)

Pacific Gas Light & Coke Co

Michigan

The

First

Boston

Corp.)

October 7

Montana

Power

______-Common

(Offering to- stockholders—underwritten by Glore, Forgan & Co.
and

Bell

447,346

(Bids 11

a.m.

McDonald

$11,000,000

to -stockholders—to be underwritten by
Smith, Barney & Co.) 141,113 shares

COHering

(Blvth

C.)

Debentures
Inc.)

320,000,000

Northwestern Steel & Wire Co
(Blyth &

Co.,

Inc.)

125.000

invited)

Debentures

—

'Bids

Underwriters-

Bonds

and

Haydu Electronic Products, Inc.
Sept. 3 (letter of notification) $300,000 6% convertible

Bonds

subordinated

$20,000,000

Lehman

Brothers)

invited)

$24,000,000

$40,000,000

Co.„
be

invited)

Bonds
$8,000,000

South Carolina Electric & Gas Co.
(Bids

For construction program.

Dillon, Read & Co. Inc., New York; and Dean Witter &
Co., San Francisco, Calif. Offering—Expected sometiine
in October.

$40,000,000

Telephone & Telegraph Co.—Debens.

invited)

to be

Bonds

$10,000,000

Southwestern Bell Telephone Co
'Bids

Common
shares

Pennyslvania Power

Common

-C. American Cement Corp

(Bids

(Wednesday)

Addressograph-Multigraph Corp

Loeb

New England

Co., Cleveland, Ohio.

Proceeds

invited) $10,000,000

Moore-McCormack Lines, Inc
Bonds

EDT)

Telephone

(Bids

(Kuhn.

October

(Bids to

(Tuesday)

Madison Gas & Electric Co

$3,500,-

+ Hawaiian Electric Co., Ltd.
Sept. 12 filed 225,000 shares of series G cumulative pre¬
ferred stock.
Price — To be supplied by amendment.

$17,000,000

Laclede Gas Co
(Bids

October 6

' V.

(9/30)

used for the retirement of indebtedness totaling

Co.

Sept. 9 filed $7,000,000 of 20-year debentures due 1978.
Price—To be supplied by amendment. Proceeds—To be

Bonds

(Bids to be

Co.

Bonds

Gulf States Utilities Co.—

—Common

-(Kidder, Peabody & Co.; Bache & Co.; Reynolds & Co. Inc.
■
and Dean Witter & Co.) $24,000,000
i ■

Utilities

000, for capital improvements to chemical manufacturing
facilities aggregating about $1,500,000, and for other
corporate purposes, including additional working capital.
Underwriters—Morgan Stanley & Co., New York; and

Postponed Financing

Common

States

Aug. 14 filed $17,000,000 of first mortgage bonds, series
A, due 1988. Proceeds—Together with cash on hand, to
redeem and retire $17,000,000 principal amount of 4%%
first mortgage bonds due 1987. Underwriter—To be de¬

Harshaw Chemical

(Thursday)

Norfolk & Western Ry

Wellington Equity Fund, Inc
.

received)

Pacific Telephone & Telegraph Co—Debentures

Equip. Trust Ctfs.

December

$70,096,100

Pennroaft Corp.
(Offering to stockholders—underwritten by
•<
1,286,619 shares

•

■

$7,000,000

Common

a.m.

$20,000,000

(Thursday)

November 18

(Simmons & Co.) $290,000

•

-(Bids to

Bonds

(Wednesday)/

National Fiiel Gas Co

;

Imperial Packing Corp..
r

Corp..________.'-^Common
Inc.)

EST)

Norfolk & Western Ry

Mountain States Telephone & Telegraph
Co.
;(Offering- to

—Debentures

Rectifier

(Blyth

a.m.

November

—Common

(Morgan S.antey & Co. and McDonald & Co.)

-International

•

$1,875,000

—

Harshaw Chemicsfl *Co;
-*•'

(Thursday)

Indiana & Michigan Electric Co

Chicago & North Western Ry.____-Equip. Tr. Ctfs.

directors.

writer—None.

Gulf

organizers,

incorporators,
management,
Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
and/or

(Monday)
November

warrant

Cincinnati & Suburban Bell Telephone Co.—Debs.

Underwriter—

None.

ercise of warrants which

(Tuesday)

(Bids to be received) $25,000,000

September
-

Feb. 12

(Lee Higginson Corp)

100

rants to expire

(Bids to be received) $15,000,000

(Offering to stockholders—no underwriting>7510,005 shares

September 25

(no

March 31

basis of

October 14
Idaho

Lazard

$3,975,000

A stock

ton
Corp.
(jointly); Kuhn, Loeb & Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had
been scheduled to be received up to 3:45 pjn.
(EDT) on
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been postponed.

mon

(Friday)

;;

Co.;

common

common B stock (par $1).
Proceeds—To the Attorney General of the United States.
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬

Great Northern Life Insurance Co.

$7,440,000

Bowling Corp. of America

Equip. Trust Ctfs.

Wisconsin Electric Power Co

Corp., New York

and

common

Equip. Trust Ctfs.

ofBonds

Co.

Pittsburgh & Lake Erie RR

October 10

September 24; (Wednesday);.
Norway

shares of preferred

210

'v;'(Rids to be received)

Bonds

—

(Bids ;1I-a.m. EDT) $40,000,000 /

•

EDT)

a.m.

Preferred & Common

Norfolk & Western Ry

(Tuesday); ;•r

Power

515.6

Corp.__Debs. & Com.
(Kidder, Peabody & Co.) $8,580,000
.s..
*

(Thursday)

Manufacturing Co

(Bids

Garrefct-Bromfield & Co.) $2,000,000

North Carolina Natural Gas

iv..y-.;,;-,

Bromfield &

par) and 1,537,500 shares of

stockholders

Office—Brooklyn, N. Y. Underwriters—Statement

loans.

First Backers

•

St.

—None.

Pro¬
contract to purchase the Belle-

Inc.,

150,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion of company's
products, working capital, addi¬
tional inventory and accounts
receivable, for research
and development and tor other general
corporate pur
,

General Aniline & Film

per

Hough,

★ Franklin Discount Co.
Sept 9 (letter of notification) $100,000 of 8% subordin¬
ated debentures due July
1,/1964. Price—At par. Pro¬
ceeds—To purchase conditional sales contracts and
make

common

Price—$7,500

filed

to be amended..;

Corp., Baton Rouge, La.

$500 of notes.

Beil

—

Laboratories, Inc.

poses.

stock (no par) $500,000 of 6%;. debenture bonds and $50,000 of promissory
notes to be offered in units of four shares of stock, $5,000
of bonds and

Underwriter

Petersburg, Fla.

Corp.v

July 31 filed 400 shares of

be supplied
by amendment.
Proceeds—To
selling stockholders. Underwriter
McDonald & Co.,

provements.

May 21 (letter of notification) 300,000 shares of common
stock (par 10 cents) "k Price—50 cents per share.
Pro¬
ceeds—Ta make loans, etc; Office — 80 Wall St., New
York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.
.•'Fields7

(par $1).

—

exploration program. Underwriter—Cador, Inc.,
>•
\vV'Commercial

stock

$1).
Price
$7 per share. Proceeds — Together with other
funds, to be used to reduce the company's indebtedness,
for working capital, and for
property additions and im¬

Far Hills,.N. J.
Federal

common

Florida Water & Utilities Co.,
Miami, Fla.
Sept. 4 filed 55,000 shares of common stock (par

and for

shares of

—

Exploration Service Co., Ltd., Far Hills, N. J.
Aug. 11 this company and Amkirk Petroleum Corp.
(latter of Fort Worth, Texas) filed $400,000 of working
interests (non-producing in Sinu Valley Project), to be
offered for sale in $12,500 units (of which $8,000 is pay¬
able in cash and $4,500 is to be represented by promis¬
sory notes).
Proceeds—Exploration Service Co. to acquire 80% interest in a certain concession from Amkirk

Chirstensen, Inc., and Garrett
Co., both of Denver, Colo.
Jan. 14, 1957 tiled 42t>,uttb onare* ol

(9/30)

Cleveland, Ohio, and Kidder, Peabody & Co., New York.

($5 per share). Proceeds—To cover operating
during the development period of the corpora¬

Underwriter—None.;

74,925

Writer &

Underwriter—None.

Florida Steel Corp.

Sept. 9 filed

LV: •>£»*♦.'1

Ethodont Laboratories, Berkeley, Calif.
Feb. 20 filed 300,000 shares of common stock.

homes and secured by mortgages or other liens upon the

Debentures

invited) $110,000,000

Utah Power & Light Co
(Bids to be invited) $20,000,000

Bonds

debentures due Dec. 31, 1968.
To be of¬
public sale. Price—$100 per $100 of debentures.
Proceeds—For working capital and for general corporate
purposes.
Office—1426 West Front St., Plainfield, N. J.

fered for

Underwriter

—

Berry & Co., Plainfield, N. J. and New

York, N. Y.

Hoagland & Dodge Drilling Co., Inc.
June 12 filed 27,000 shares of capital stock. Price—$10
per share.
Proceeds—To be used in part for the ex¬

ploration of mines and development and operation
Continued on page

The Commercial and Financial Chronicle

Thursday, September 18,1958

(1136)

payment of indebtedness.
Underwriter—None.

♦nines and in

Ariz.

•Jf Household Gas Service, Inc.
(letter of notification) $75,000 6% convertible
15, 1973 to be offered in denomina¬
tions of SI.000 and $500 each. Price—At par. Proceeds
—For repayment of debt and for working capital. Office

stock

latter company's South San
working capital. Offices—Las
Vegas. Nev., and South San Francisco, Calif. Underwriter
—Sam Watson Co., Inc., Little Rock, Ark., on a best
efforts basis.
r/'l'•*
Leader-Cleveland Realty Associates,

Idaho Manufacturing Co.,

Inc.

Life

(letter of notification) 2,000 shares of class A
♦stock (par $15), $170,000 of 6% subordinated debentures
and 2.000 shares of class B stock (par $15) to be offered
first to stockholders. Price—$15 per share for class A

leeves &

•

Imperial

Packing Corp.

but the parent

(10/1)

both of Washington, D. C., on a best efforts

ance

and
Un¬
Co..

basis.
>

Offering—Being held in abeyance.

Opportunity Life Insurance Co.
June 2 filed 5,000,000 shares of common stock (par $1)
Price—$5 per share. Proceeds—For working capital and:
other corporate purposes. Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.
Rectifier Corp.

Sept. 9 filed 180,000 shares of common stock (par $1),
ot which 80,000 shares are to be sold for the account of
the company and 100,000 shares for selling stockholders,
Price—To be supplied by amendment. Proceeds — For
general corporate purposes. Underwriter—Blvth & Co.,
Inc., San Francisco, Calif,, and New York, N. Y.
Investors

Realty Mortgage & Financial Corp.
July 24 filed $250,000 of investors income certificates
<6% 10-year maturities) and 125,000 shares of class A
stock.

common

various

Price—The certificates will be offered in

denominations at

100%

certificate, and the
class A common stock at $2 per share.
Proceeds—For
the purpose of owning, buying and selling, and other¬
wise dealing in real estate, or matters pertaining to real
estate and the improvement
thereof, in the areas in
which the company will operate.
Office—Aiken, S. C
per

due '
and
Underwriter — To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The Milwaukee Co., and Dean
Witter & Co. (jointly); The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch. Pierce, Fenner & Smith;
Otis & Co., Inc.; Smith, Barney & Co. and Robert W.
Baird & Co. (jointly); Eastman Dillon, Union Securities
& Co.
Bids
Expected to be received up to 11 a.m.
Magna Investment & Development Corp.
Vlay 26 filed 56,000 shares of common stock and $500,000
)f 6% convertible debentures. Price—For debentures, at
jar

Inc.

•Sept. 11 filed (by amendment) 5,000.000 shares of capital
stock (par 50 cents). Price—At market.
Proceeds—For
investment.

Office—Minneapolis, Minn.

Israel-Negev Petroleum Corp.
Aug. 29 filed 750,000 shares of capital stock (par 20
cents). Price—$1 per share; but the company may grant
to

purchasers
.,

100,000

discount

f.rom the offering price. Business—To

marily in the business

engage pri¬
exploring for, acquiring inter¬

ests in, developing and operating oil and
In Israel.
poses.

gas properties
Proceeds—For drilling and exploration pur¬
Underwriter—Alkow & Co.. Inc. (formeriv Henry

Montor

Associates, Inc.), New York.

Price

pay* ofi short-term

capital.

—

$100 per share.

common

Proceeds

—

obligations and to improve working

Office—90 Mill St., Laconia. N. H.

Underwriter

—None,

Laclede Gas Co.
1983.

$10^°0>°00 of first

Proceeds—To refund

due 1982.

mortgage

bonds due

4%% first mortgage bonds
Underwriter—To be determined by competi¬

tive bidding.
Probable bidders: Halsev, Stuart & Co
Inc.; The First Boston Corp.; Blyth & Co., Inc.; Lehman
-Brothers, Merrill Lynch, Pierce, Fenner & Smith and
weinholdt & Gardner (jointly); Eastman Dillon. Union

Lynch,

body & Co., Smith, Barney & Co. and Blyth & Co., Inc.

(jointly). Bids—Had been expected to be received up
noon (EDT) on Aug. 26 at Room 2033, Two Rector St.,

York, N. Y., but company on Aug. 22 again decided
pending improvement in market conditions.

New

to defer sale

Montana Power Co.

July 1 filed 100.000 shares of common stock (no par).
The stock will be offered only to bona fide residents
of Montana. Price—To be related to the current market
price on the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬

through

program

Manager-Dealers —

1959.

Co., Inc.

Mortgages, Inc.
July 28 (letter of notification) 296,750 shares of com¬
mon
stock (par 25 cents).
Price—$1 per share. Pro¬
ceeds—To be invested in notes secured by first and
second liens upon

properties to be selected by the man¬

agement of the company.. Office—223A Independence
Building, Colorado Springs, Colo. Underwriter—Copley

Colorado Springs, Colo.

& Co.,

Motion

capital, and other general corporate purposes. Busiless
To engage primarily in the development and
—

>peration of various properties, including shopping ceners.
Office—Salt Lake City, Utah, Underwriter—J. A.
Power Fund,

derwriter—None.

Aug. 6 filed 40,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—1002 First

Martin

Sept. 3 filed 700,961 shares of capital stock to be offered
subscription by stockholders of record Sept 26, 1958
at rate of one new share for each five shares held; rights

for

Telephone & Telegraph Co., the parent; and for
corporate

parent

Minn.

S6.000.000

warranty

and

repurchase

agreements and 5,000 shares of cumulative preferred
stock, 6% dividend series, the latter shares to be offered

principally to holders of whole mortgage notes and re¬
lated warranty agreements, although the company re¬
serves the right
to offer such stock to others. - Price—
For preferred stock, at par ($200 per share). Proceeds—
To be used principally for the purchase of additional
mortgage notes for resale to others.
Office—2633 15th

Street, N. W„ Washington, D. C.

over

owns

general

Underwriter—None. Control—The
80% of the 3,504,809 outstanding

Underwriter—None.

Investment Trust Fund, Inc.

Municipal

(N. Y.)

May 9, 1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment. Sponsor—Ira Haupt
&

Co*rNWTork.
National Beryl &

Mining Corp., Estes Park, Colo.
2,916.000 shares of non¬

(letter of notification)

May 16

Mortgage & Investment Corp.
filed

purposes.

shares.

Baltimore. McL
fune 11 filed $25,000,000 of sinking fund debentures, due
fuly 1, 1978. Proceeds — Working capital and general
:orporate purposes.
Price—To be supplied by amendnent. Underwriter—Smith, Barney & Co., N. Y. Offer'ng. which was expected on July 2, has been postponed,
issue to remain
in registration.
20

& Telegraph Co.

(9 30)

Co.,

Mason

States Telephone

Mountain

expire on Oct. 24, 1958. Price — At par ($100 per
share). Proceeds — To repay advances from American

Inc., St. Paul, Minn.

National Bank Bldg., St. Paul,

Inc.

Hogle & Co., Salt Lake City, Utah.
Mairs &

Investors

Picture

July 11 filed 200,000 shares of common stock (par $1).
Price—$10.75 per share. Proceeds—For investment. Of¬
fice—1000 Power & Light Bldg., Kansas City, Mo. Un¬

(in $1,000 units); and for common stock, $4.50 per
Proceeds—For contractual obligations, for work-

assessable

common

stock (par one cent).

Price—10 cents

share. Proceeds—For mining expenses.
—Birkenmayer & Co., Denver, Cole:
per

Underwriter

National Educators Finance

(letter of notification)

June 4
stock.
To

Price—At

train

and

par

Corp,
50,000 shares of

common

(50 cehts per share)* Proceeds—

implement and carry
out the projected plan of development and operation.
Office—1406 Pearl St., Boulder, Colo.
UnderwriterWestern Securities Co., Boulder. Colo.
National

procure

Fuel

persons

Gas Co.

(10/1)

Mayfair Markets
March 24
(letter of notification) 5.000 shares of 6%
emulative preferred stock (par $50) and 5,000 shares

Aug. 22 filed 325.000,000 of sinking fund debentures due
Oct. 1, 1983
(subsequently reduced by amendment to

■>f

$10,000,000).

common

stock

(par $1) to be offered in units of one

ihare of preferred and one share of common stock.

Kinsman Manufacturing
Co., Inc.
Aug. 2d (letter of notification) 1,482 shares of
stock (no par,.

Stuart & Co. Inc.; Lehman Bros.;
Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld & Co.;
Eastman Dillon, Union Securities & Co.; Kidder Pea- '

ihare.

Aug.
Stock Fund,

bidders: Halsey,

able

—

Under w riter—None.

ir Investors

$15,500,000 in bank loans and to carry on the
company's construction program through 1959. Under¬
writer—To be determined by competitive bidding. Prob¬

repay

Smith, Barney & Co., Kidder, Peabody & Co. and Blyth

(9 30)

Power Co.

—

struction

(EDT) on Oct. 7.

International

Underwriter—

construction program.

for

working capital and to enlarge research and :
development department. Underwriter — S. D. Fuller A

•

reimburse the company for ex¬

+ Madison Gas & Electric Co. (10/7)
Sept. 10 filed $11,000,000 of first mortgage bonds
1988.
Proceeds—To repay short-term bank loans

feeds—For

Co., New York.

will be applied to

penditures made for property additions.
To be supplied by amendment.

one

Jndustro Transistor Corp. (N. Y.)
Feb. 28 filed 150,000 shares of common stock (par 16
cents). Price—To be related to the market price. Prev

Proceeds—

Together with other funds, will be applied to pay shortterm construction notes payable to banks, and any bal¬

in the production of citrus juices and by-products
ond working capital.
Office—Anaheim, Calif. Under¬
writer—Simmons & Co., New York, N. Y.
penses

Office—Washington,- D. C./

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds
Together with other funds, to be used to

will not exercise its rights to its pro rata

Price—To be supplied by amendment.

share.

Aug. 21 (letter of notification) £90,000 shares of common
ctock. Price—At par ($1 per share). Proceeds—For ex¬

Industrial Minerals Corp., Washington, D. C.
July 24 filed 600,000 shares of common stock (par
cent). Price—$1 per share. Proceeds—To develop
operate graphite and mica properties in Alabama.
derwriters—Dearborn & Co. and Carr-Rigdom &

stock (par $25).

12.000 shares are to be offered in behalf of
and 3,400 shares by American Busi¬
ness Associates, present owner of 68,178 (98.86%) of the
68,962 outstanding shares.
The 12,000 shares are to be
offered for subscription by existing stockholders at the
rate of two new shares for each 11 shares now owned;

Bids—

(par $1). Price—At market. Proceeds—For invest¬

Merrill

Of this stock,

Corp.; Kidder, Pea-

(jointly).

Lowell, Mass.

the issuing company

ly/; Merrill Lynch, Pierce. Fenner & Smith; Salomon
Bros. & Hutzler and Eastman Dillon, Union Securities &

L>ody & Co.. and White, Weld & Co.
Expected to be received on Oct. 14.

Calif. Underwriter—Daniel
Calif.

Aug. 28 filed 15,400 shares of common

^ Missiles-Jets & Automation Fund, Inc.
Sept. 11 filed (by amendment) 250,000 shares of capital
stock

Montana

Co.; Beverly Hills,

Lowell Gas Co.,

competitive bidding.
Probable
ladders: Halsey, Stuart & Co. Inc.: Blvth & Co.. Inc.,
Xazard Freres & Co. and The First Boston Corp. (joint¬

September.

drilling, exploration and development of oil and
properties. Underwriter—None.

gas

ment.

itock (par $1). Price—From 80 cents to $1.40 per share.
Proceeds—To go to selling stockholders. Office—24751

(jointly); Equitable Securities

Underwriter—

Longren Aircraft Co., Inc.
18 (letter of notification) 34,000 shares of common

Jrenshaw Blvd., Torrance,

—For

mne

Sept. .17 filed $15,000,000 of first mortgage bonds due
1988.
Proceeds—To reduce bank loans.
Underwriter—

Co.

participation. Proceeds—
Building in Cleveland, Ohio.

operate such companies as subsidiaries."
Corp., Portland, Me.

(10 14)

expire

per

Consolidated, Inc., Salt Lake City, Utah
Aug. 29 filed 1,000,000 units, each consisting of one share
of common stock (par 10 cents) and two warrants to pur¬
chase one common share. Price—$1 per unit.
Proceeds

:1irst Maine

capital. Office—210 North 30th, P. O. Box 5070, Boise,
Ida. Underwriter—First Idaho Corp.. Boise, Ida.

share for each 8.8 shares

Minerals

1,000,000 shares of capital stock (par $1)
Price—$5 per share. Proceeds—To acquire stock control
t "young, aggressive and expanding life and other inurance
companies and related companies and then to

(each unit consisting of

one

Rights

date.

derwriter—None.

N. Y.

in partnership

tlarch 28 filed

$85 of debentures and one class B share). Proceeds—For
expenses of setting up production and distribution: man¬
ufacturing and operating expenses and for operating

the basis of

share to stockholders; $26 to general
public. Proceeds—For test equipment and working capital. Office—7601 N. W. 37th Avenue, Miami, Fla. Un¬

Price—$24

Securities Corp.

Insurance

record

owned

per

purchase the Leader
Underwriter—None.
To

Aug. 22

c-ncl $100 per unit to stockholders

Price—$10,000

nterests.

Office—Glenn Bldg.,

capital.

Underwriter—None. '

determined

stockholders

Francisco foundry and for

fuly 16 filed $1,280,000 of participations

Pipe Co.

Milgo Electronic Corp.
Aug. 6 (Tetter of notification) 10,000 shares of common
stock (par $1) to be offered for subscription by present

acquiring

penditures

Co.. Inc., and lor working

units of $100 of

Proceeds—Together with a
the American Brake Shoe Co., will be used to meet ex¬

+ Hurt (Joel) Factors, Inc.
ijept. 8 (letter of notification) 7,500 shares of common
citock (par $10) and S200.000 of 10-year 6% subordinated
convertible debentures due Aug. 31, 1968, to be offered
in units of three shares of stock and one S80 debenture.
jPriee—S120 per unit. Proceeds — To repay Crompton

*To

to be offered in

Price—$100 per unit.
$175,000 mortgage loan from

Underwriter—Mohawk Valley Invest¬

Idaho Power Co.

10 cents)

(par

No-Joint Concrete

Midwest

Aug. 22 (letter of notification) 60,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For work¬
ing capital. Address—P. O. Box 550, Rocky Ford, Colo.
Underwriter—IAI Securities Corp., Englewood, Colo.

debentures and 30 common shares.

Co., Inc., Utica, N. Y.

Atlanta, Ga.

postponed indefinitely.

Laughlin Alloy Steel Co., Inc.
/
Aug. 28 filed $500,000 of 6% subordinated callable de¬
bentures due June 30,1968, and 150,000 shares of common

debentures due June

—Clinton; N. Y.

July 8, but offering has been

Office—Tucson.

iSept. 10

ing

and for working capital. Underwriter—Investment Sales,
Inc., 532 E. Alameda Ave., Denver 9, Colo.

Securities & Co.; Stone & Webster Securities Corp. Bids
—Had been expected to be received up to 11 a.m. (EDT)

Continued front page

Price
—$60 per unit. Proceeds—For working capital. Office—
1383 Bandini Blvd., Los Angeles, Calif.
Underwriter—
None.

• Middle States
Telephone Co. of Illinois
Aug. 20 (letter of notification) 12,906 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record Sept. 16, 1958 on the basis of one new

for

each

rights to expire

12*2
on

shares held

Sept. 30.

Proceeds

record
—

Office
Underwriter—None.

—

416

Mid-West Durex Co., Kansas City, Mo.

July 14 filed 725,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of plant

Proceeds—To

repay

determined

bank

loans.

Under¬

competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Stone & Webster
Securities Corp. (jointly); White, Weld & Co.; Harri—

Ripley &

Co. Inc.; Kuhn, Loeb & Co. and Wer(jointly); The First Boston Corp. Bids—
Expected to be received up to 11:30 a.m. (EDT) on Oct.
man

theim

Co.

at Room

2033, Two Rector St.. New York 6, N. Y.

Nebraska Consolidated Mills Co., Omaha, Neb.

16;

To discharge

short term loans and for working capital.

Margaret St., Pekin, 111.

Sept.

writers

Sept. 9 filed 49,423 shares of common stock (par $10)
be offered for subscription by common stockholders;

at rate of
an

one new

share for each eight shares held (with,

oversubscription privilege).

Price

—

$10? per share.

Proceeds—For general corporate purposes.
—None.

Underwriter

Volume

188

Number 5778

The Commercial and Financial
Chronicle

(1137)
Nedow Oil Tool Co.
May 5 (letter of notification)

150,000 shares of

stock (par one
cent). Price—$2 per share.
pay loan; to acquire

chased by Rock-Ola
Mfg. Corp. Warrants expire 20 days
Price—$4.25 per share. Proceeds
Office—800 N. Kedzie Ave., Chi¬

common

from date of issuance.
—For working capital.

Proceeds—To

fishing tools for leasing; and for
working capital. Office—931 San Jacinto
Bldg., Houston,
Tex. Underwriter—T. J.
Campbell Investment Co., Inc.,

cago

Houston, Tex.

4^%

1, 1961, which
1, 1958. Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Morgan Stanley & Co. Bids—Were to have been
received at Room
2315, 195 Broadway, New York, N. Y.,
up to 11 a.m. (EDT) on
Aug. 26', but company on Aug.
20 decided to
postpone refunding program.
•

4301-6tli Ave.,

South, Seattle, Wash. Underwriter—None.

offered

each

common stock
(par $1)
subscription by common stockholders
1, 1958 on the basis of one new share

for

Oct.
four

held

(with an oversubscription
privilege); rights to expire Oct. 15. Price—To be sup¬
plied by amendment. Proceeds—For
additional invest¬
ments

and

general

corporate

Underwriter—

purposes.

Kuhn, Loeb & Co., New York.
Aug. 1 filed $8,000,000 of first
mortgage bonds due 1988.
Proceeds—To redeem

amount

first mort¬

Underwriter—To

determined

$13,-

gage

June

750,000 of 5%% first mortgage pipeline bonds due
1, 1979, to be used for construction program and

by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.;
Kidder, Peabody & Co.; White Weld & Co.;
Equitable Securities Corp., and Shields & Co.
(jointly);
Lehman Brothers, Eastman
Dillon, Union Securities &
Co., Salomon Bros. & Hutzler and
Ladenburg, Thalmann
& Co.
(jointly); Merrill Lynch, Pierce, Fenner & Smith

working

Underwriter—Kid¬

der, Feabody & Co., New York.
North Carolina
Telephone Co.
June 19 (letter of

notification) 207,143 shares of common
stock to be offered to common
stockholders at the ratio
one share for each six
shares held.

bonds

due

1987.

per

and Dean Witter & Co.
(jointly). Bids — Tentatively
had been expected to be
received up to 11 a.m. (EDT)
on Aug.
27 but company on Aug. 22 decided to defer
sale pending
improvement in market conditions.

Northwest Gas & Oil
Exploration Co.
Aug. 22 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—

it Peoples Gas Light & Coke Co. (10/6)
Sept. 12 filed 447,346 shares of capital stock

Price—At par ($1

share). Proceeds—To pay off obligations and for
telephone plant construction. Underwriter—None.

For acquisition

corporate

additional

administrative

gas

and

expenses.

way, New York 38, N. Y.

oil

interests

Office—150

Underwriter

—

by amendment. Proceeds—To
repay bank loans,
for advances to or
additional equity investments in sub¬

it Northwestern Steel & Wire Co. (10/8)
'Sept. 12 filed 125,000 shares of common stock
(par $5).
Price—To be supplied by
amendment. Proceeds—To sell¬
ing stockholders. Underwriter—Blyth &
Co., Inc., New

sidiaries and for construction
program.
Underwriters—
Glore, Forgan & Co. and The First Boston
Corp., both
of New York.
.•
:
/
;
^ Pioneer Telephone Co.,
Waconia, Minn. (
Sept. 10 (letter of notification)
3,000 shares of 514%
series F cumulative
preferred stock. Price—At par ($100
.

York.

1958, due Oct. 1,

share). Proceeds—For expansion and improvements.
Underwriter—M. H. Bishop &
Co., Minneapolis, Minn.
★ Pitney-Bowes, Inc.
Sept. 11 filed $509,000 of participations in the
company's
Employees' Stock Purchase Plan.
per

bonds

1973. Price
To be supplied by
Proceeds—To acquire and import capital
equipment required for development of the
—

amendment.

Norwegian
Underwriters
Harriman Ripley & Co. Inc.;
Kuhn, Loeb & Co.; Lazard Freres &
Co.; and Smith,
Barney & Co.; all of New York.

economy.

—

stock

common

(par $1). Price
$3 per share. Proceeds
For
working capital.
Office—11 Flamingo Plaza,
Hialeah,
Fla.
Underwriter
Henry & Associates, Inc., 11 Fla¬
mingo Plaza, Hialeah, Fla.
—

—

•

Oil

Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock
(par $1)
to be offered for
subscription by common stockholders
of record March
24, 1958 at the rate of lYi new shares

for each share then held.
Employees may purchase 50,000 shares of unsubscribed stock.
Price—To stockholders,

$1.75

share; and to public, $2 per share. Proceeds—
mining, development and exploration costs, and for
working capital and other corporate purposes. Under¬
writers—Harrison S. Brothers & Co., and
Whitney & Co..
both of Salt Lake
City, Utah. Statement effective Sept.

Policy Advancing Corp.
(letter of notification) 30,250 shares of com¬
stock (par $5) to be offered
for subscription by

Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of
loans, various
—To acquire and operate
mining claims and oil and gas
equipment, and a reserve for future operations. Business
properties. Underwriter—Universal Securities
Co., En¬
terprise Building, Tulsa, Okla.
O. T. C. Enterprises Inc.

{letter of notification) 23,200 shares of
class B stock (par
$1). Price—$5 per share.

com¬

Pro¬

ceeds—For
tion

completion of plant plans; land; construc¬
and_ operating expenses. Office—2502 N. Calvert

Baltimore

18,

Md.

Underwriter—Burnett

Sparks, Md.

& 'Co.,

stockholders at the rate of one new share for
each share
held; unsubscribed shares to be offered to
debenture holders

Sept.
mon

(letter

stock

and

others.

Price—$8 per share.

Proceeds—For working capital.
Office—27
St., Binghamton, N. Y. Underwriter—None.

Chenango

Ponce de Leon
Trotting Association, Inc.
Aug. 7 filed 400,000 shares of common stock
(par one
cent). Price—$1.50 per share. Proceeds—To
pay current
liabilities, for new construction and working capital.

Office—Bayard,

Fla.

Underwriter—Robert

Ferman

common stock (par
$1.50)
be offered for sale to residents of
Canada in the Prov¬

inces

Manitoba,

Saskatchewan and Alberta and to
residents of the United States
"only in the State of North
Price

struction

—

purpose,

per

share.

Proceeds

Office—Saskatoon,

—

For

con¬

Saskatchewan,

Canada. Underwriter—Allied Securities
Ltd., and United
Securities, Ltd., both of Saskatoon, Canada.

★ Precise Development Corp.
Sept. 8 (letter of notification) 60,000 shares of 20-cent
convertible preferred stock
(par $1) and 60,000 shares of
common stock
(par 25 cents) to be offered in units of
share of preferred

stock.

ing

Price—$5

bank

Office

per

loans
2

—

and

Neil

stock

and

one

share of

common

unit. Proceeds—To reduce outstand¬
for

Court,

general

working capital, etc.
Oceanside, Long Island, N. Y.

Underwriter—R. A. Holman &
Co., Inc., 54 Wall St., New
York, N. Y. *

surplus.

Ave., North, Minneapolis, Minn. Under¬

ceeds—To

selling stockholders.
Underwriter—Market
Securities, Inc., Salt Lake City, Utah. Statement effec¬
tive Ji»ne 5.

„

Under¬

writer—Investors Investments Corp.,
Pasadena, Calif.
.Peerless Weighing &
Vending Machine Corp.
June 27 (letter of
notification) a maximum of 25,000
shares of common stock (par
$1) to be offered to minor¬
ity stockholders on the basis of one new share for each

Any unsubscribed shares will be

pur¬

Office—Colorado

"best efforts" basis.

•

Robosonic National Industries
Corp., N. Y.
June 12 filed
500,000 shares of common stock, class B..
Price—$3 per share. Proceeds—To manufacture on s<
contract basis

an automatic
telephone answering instru¬
ment; the enlargement of the research and
development

facilities of the
company; patent and patent applications;

Rocky Mountain Quarter Racing Association
Oct.

31,

1957

(letter

stock.

common

of notification)

Springs,

Colo.

Underwriter

($1 per share). Proceed*
outstanding indebtedness. Office—Littleton,
Colo.
Underwriter—R. B. Ford Co., Windover Road*
Memphis, Tenn.
—To

repay

St. Regis Paper
Co., New York
July 8 filed 118,746 shares of common stock (par
$5)
being offered in exchange for outstanding shares of capi¬
tal stock of Growers Container
the basis of one St.

Corp., Salinas, Calif,,

Regis share for 18 shares of stock of
Growers Container. The offer
expires on Sept. 29. Un¬
derwriter—None. Statement effective Aug. 28.

Sheridan-Belmont Hotel

Co.

Aug. 19 (letter of notification) $250,000 of 6% convertiblei
debentures due Sept. 15, 1963 to be offered for
subscrip¬
tion by common stockholders on a
pro rata basis. Price—
Proceeds—For working capital.

Office — 317a
Underwriter—None.

Simplicity Pattern Co. Inc., N.- %
Aug. 15 filed 42,500 shares of common stock (par $1).
Price—At the market or at a price within a
range not.
less than the bid
price and not higher than the asking
price quoted on the New York Stock Exchange at the
time of

offering.

time

The shares will also be offered from
such

Exchange at a price within tho
foregoing range. Proceeds—To go to Joseph M. Shapiro,
selling stockholder. Underwriter
Lee Higginson
Corp.. New York. Offering—Indefinitely postponed.
the

—

Carolina Electric & Gas Co.

12 filed $10,000,000 first and refunding mortgage
bonds due 1988. Proceeds—To
repay bank loans and foar
construction program.

by competitive bidding.
&

Co.

Inc.;

Underwriter—To be determined
Probable bidders: Halsey, Stuart

Kidder,

Peabody & Co.; Eastman Dillon,
Co.; The First Boston Corp., and
Lehman Brothers (jointly). Bids—Had been
expected to
be received up to 11:30 a.m.
(EDT) on Sept. 10, at 70"
Broadway, New York, N. Y., but sale has been post¬
Union

Securities

poned.

Standard Oil

Co.

(New Jersey)
July 31 filed 11,406,078 shares of capital stock (par $7)
being offered in exchange for Humble Oil & Refining
Co. capital stock at rate of five Standard Oil shares for
each four Humble Oil shares. The offer is
expected to
remain open until Oct. 14, 1958. Exchange Agent—Mor¬
gan

Stanley & Co., New York.

Stanway Oil Corp.
Aug. 14 (letter of notification) 300,000 shares of

common

Price—At par ($1 per share). Proceeds—For .de¬
velopment and operation of an oil well. Office
9151
Sunset Blvd., Los Angeles 46, Calif. Underwriter—U. S.
Corporation Co., Jersey City, N. J.
—

July 9

Enterprise, Inc., Wichita, Kansas

May 5 filed 125,000 shares of common stock. Price—$10
share. Proceeds
To be used to organize, or re¬
organize and then operate companies in foreign nations,
principally; but not exclusively, in the Far East, Near
per

—

East and Africa.

Underwriter—None.

★

Public Service Co. of Indiana, Inc.
Aug. 27 filed 242,826 shares of 4.80% cumulative
vertible

300,000 shares

Price—At par

State

Private

preferred

subscription by
1958

Peckman Plan Fund,
Inc., Pasadena, Calif.
May 19 filed 20,000 shares of common stock
(par $1).
Price—At market.
Proceeds—For investment.

four shares held.

stock
(par 10*
Price—To be supplied by amendment. Proceeds*
working capital. Underwriter—James H. Price &.
Co., Inc., of Coral Gables, Fla., for 250,000
shares; balance

—For

stock.

Sept. 8 filed 250,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To increase capital and
—None.

Paradox Production
Corp., Salt Lake City, Utah
April 18 filed 767,818 shares of common stock
(par $1),
of which 100,000 shares are to
be offered by the
company
in exchange for oil and
gas properties and 3,000 for serv¬
ices; the remaining 664,818 shares are to be offered to
the public. Price—To be
supplied by amendment. Pro¬

cents).

South

Aug. 18 filed 209,993 shares of
to

Office

To purchase equipment and
for working capital.

writer—None.

share for each three shares held

new

Aug.

Prairie Fibreboard Ltd.

notification) 26,300 shares of com¬
(par $5). Price—$11 per share. Proceeds—

—1010 Lyndaie

one

Riddle Airlines, Inc.,
Miami, Fla.
May 15 filed 750,000 shares of common

Co., Inc., Miami, Fla.

Preferred Risk Life Insurance Co.

it Pako Corp.

efforts"

oversubscription privilege). The subscription
period will be for 30 days
following issuance of sub¬
scription rights. Price—To be supplied
by amendment
Proceeds—To pay off demand
note, to pay other indebt¬
edness/and the balance if any will be added to
working,
capital. Underwriter
Pacific Securities Ltd., Van¬
couver, Canada.

common

one

March 6

St.,

the rate of

(with

North Sheridan
Rd., Chicago 14, 111.

Dakota."

mon

At par.

per

Oil & Mineral

"best

Richwell Petroleum
Ltd., Alberta, Canada
June 26 filed 1,998,716 shares of
common stock
(par $1)«
Of this
stock, 1,174,716 shares are to be sold on behalf oft
the company and
824,000 shares for the account of cer¬
tain selling stockholders.
The company proposes to offer
the 1,174,716 shares for
subscription by its shareholder!*

March 25

For

10.

—

mon

Oak

Ridge, inc.
Sept. 4 (letter of notification) 100,000 shares

sup¬

plied

Co., Inc., New York 5, N. Y.

public relations, and for working capital. Underwriter—
None. Statement effective
Sept. 4.

be offered for
subscription by stockholders of record
Oct. 2, 1958 at rate of one new
share for each 11 shares
held; rights to expire on Oct. 20, 1958. Price—To be

Broad¬

loan

York,

Reynolds Engineering & Supply, Inc.
Aug. 22 (letter of notification) 60,000 shares of common
(par $1). Price — $5 per share. Proceeds
For
working capital. Office—2118 N. Charles
St., Baltimore
18, Md. Underwriter—L. L. Bost
Co., Baltimore, Md.

(par $25)

and

Greenfield &

Norway (Kingdom of)
(9/24)
Sept. 5 filed $15,000,000 of 15-year external

Corp., New

—

Pennsylvania Power Co.

tures and two shares of stock.
Price—To be supplied by
amendment {a maximum of $33
per unit).
Proceeds —
Together with funds from private placement of

record

for

North

Office—Fayetteville, N.

Israel

basis.

stock

it Pennroad Corp.' (10/1)
Sept. 12 filed 1,286,619 shares of

Carolina Natural Gas
Corp. (9/22-26)
July 31 filed $5,200,000 of subordinated income deben¬
tures due Aug.
15, 1983, and 520,000 shares of common
stock (par $2.50) to be offered in
units of $20 of deben¬

capital.

stock

common

England Telephone & Telegraph Co.
July 31 filed $40,000,000 of 34-year debentures due
Sept.
1, 1992. Proceeds
To refund a like amount of
—

Underwriter—None.

notification) 46,182 shares of class A
(par $2.50) and 2,511 shares of class B
common stock
(par $2.50). Price—Class A stock, $4.50
per share; of class B
stock, $5.25 per share. Proceeds—
To purchase supplies and for
working capital. Office—

New

first mortgage
bonds, series B, due May
are intended to
be redeemed on Nov.

51, 111.

★ Penberthy Instrument
Co., Inc.
Sept. 12 (letter of

—Rassco

stock

(par

$100)

being

offered

common stockholders of record

con¬

for

Sept. 16,

the basis of one preferred share for each 20
com¬
shares held; rights to expire on Oct.
6, 1958. Price
—$100 per share. Troceeds-^-To reduce bank loans. Un¬
on

mon

derwriter—Blyth & Co., Inc., New York and San Fran¬
cisco.

invested in stocks and bonds and to acquire other life
insurance companies. Address—P. O. Box 678,
Gulfport,

Miss.

Underwriter—Gates, Carter & Co., Gulfport, Miss.
Strategic Minerals Corp. of America, Dallas, Tex.
March 31 filed $2,000,000 of first lien mortgage 6% bonds

and

975,000 shares of common stock (par 10 cents). Price
bonds, 95% of princmal amount; and for stock $9
share. Proceeds—To erect and operate one or more
chemical processing plants using the Bruce - Williams
—For
per

Process

6% series A sinking
fund debentures due 1973, to be offered in
denominations
of $500 and $1,000. Price—At
par. Proceeds—For work¬
Underwriter

beneficiate

manganese

ores.

Underwriter—

Southwest Shares, Inc., Austin, Texas.

Strouse,Inc.
July 29 (letter of notification) 26,850 shares of
stock

Rassco Financial Corp.
June 26 filed $1,000,000 of 15-year

ing capital and general corporate purposes.

stock

Life, Health & Accident Insurance Co.
(letter of notification) 50,000 shares of common
(par $1). Price—$5 per share. Proceeds—To be

common

(par 10 cents) to be issued upon exercise of war¬

rants.

Price—$1 per share. Office—Main & Astor Sts.f
Norristown, Pa. Underwriter—H. A. Riecke & Co., Inc.,

Philadelphia, Pa.
Continued

page

The Commercial and Financial Chronicle

(1138)

Continued from page 37
•

Tax

Exempt Bond Fund, Inc.,

Washington, D. C.

1957 filed 40,000 shares of common stock (public
offering of 500,000 shares now planned). Price—$25 per
share. Proceeds—For Investment.
Underwriter—Equit¬
able Securities Corp., Nashville, Tenn. Statement with¬
drawn on Aug. 22.

contingencies and working capital. Office.—511 Securi¬
ties Bldg., Seattle 1, Wash.
Underwriter—H. P. Pratt
& Co., 807 Hoge Bldg., Seattle 4, Wash.

June 20,

+ Tennessee Gas Transmission Co.
Sept. 11 filed 467,098 shares of common stock (par $5)
to be offered in exchange for outstanding cqpital stock

(5,766.633 shares) of Hartol Petroleum Corp. on the basis
81 shares of Tennessee Gas stock for each Hartol

share.

Texas Calgary

of capital stock (par 25

cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Ker-

Canada. To be offered in

naghan & Co., Ltd., Toronto,
Canada only.
•

Thiokol

Chemical

—

For

investment.

Underwriter—

United Asbestos Corp., Ltd., Montreal, Canada
July 29 filed 225,000 shares of capital stock (par $1) to
be issued upon exercise of options exercisable at $4 per

share.

Underwriter—None.

debentures

the basis of one unit for
each two shares of stock owned (500 of the shares are
being offered to the President of the company). Price—*
$60 per unit. Proceeds—For working capital. Office—
543 Whitehall St., S. W., Atlanta, Ga.
Underwriter—
to be offered to stockholders on

None.

Timeplan Finance Corp.

of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 sharei
of common stock (par 10 cents) to be offered in uniti
of one share to each class of stock. Price—$11 per unit
March 25 (letter

— For
working capital. Office — 111 E. Main
St, Morristown, Tenn. Underwriter—Valley Securitiei
Corp., Morristown, Tenn.

/Proceeds

Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 pel
share. Proceeds—To drill two new wells and for general
Underwriter
Co., Inc., Salt Lake City, Utah.

corporate purposes.

—

Andersen-Randolph

None.

the

necessary

of common
stock¬
share»
are to be publicly-offered at $3 each.
Proceeds — For
general corporate purposes. Office—151 Adell Avenue,
Yonkers,. N. '» Y. Underwriter — Edwin Jefferson, 39
Broadway, New York 6, N. Y.
•

in producing
Underwriter—None.

as
of Sept.. 24,
1958 (with an oversubscription
privilege);- rights to expire on. Oct. 14/ Price—To be
supplied by^amendment. Proceeds—For capital expendi¬

held

U. S. Land Development Corp.
•
Aug. 15 filed 1,200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To be
added to the company's general funds and used to de¬
velop Pineda Island near Mobile, Ala.
Office — For

United States Telemail

Acme

Service, Inc.
Service,

Mining Corp.
shares of common stock (pai
share. Proceeds—For land
acquisition, exploratory work, working capital, reserves
and other corporate purposes. Underwriter—None. Al¬
fred

Amos Treat &

mill). Price—25 cents

per

Owens of Waterloo.

Ia.t

is President.

(letter of notification) 7,500 shares of

common

Sept.

—$4

construction program. Underwriter—A. G. Becker &

per

share.

Office—203

Proceeds—For drilling for oil and gat
Main

Street,

Coudersport,

Pa.

Under¬

writer—None.

and sunken treasure and exploitation of lost mines and

mineral

deposits.
Office—130 East 18th Street,
Daniel Stack is President. Under¬

Brooklyn 26, N. Y.
writer—None.

Tricon, Inc.
Aug. 8 (letter of notification) 150,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To pay
expenses and cost of plant option; for first year's pay¬
ment

instalment purchase contract for land and im¬

provements; for construction of plant, tools and equip¬
ment; advertising and working capital. Office — 540
Steamboat Rd., Greenwich, Conn. Underwriter—Sano &
Co., New York, N. Y.
Triton Corp., Newark,

N. J.
Aug. 1 filed $1,600,000 of 5% debentures due 1973, 4,000
shares of 6% preferred stock (par $100) and 48,000
shares of common stock (par $1) to be offered in units
of $8,000 of debentures, 20 shares of preferred stock and
240

common

stock.

Price—$10,240

per

unit.

Proceeds—To acquire, own and operate interests in
pro¬
ducing oil and gas properties. Underwriter—None. Of¬
fice—11 Commerce Street, Newark, N. J.

Timothy H.

Dunn is President.
•

Tropical Gas Co., Inc., Miami, Fla. (9/16)
A\ig. 22 filed 25,544 shares of convertible preferred stock
(par $100) to be offered for subscription by common
stockholders

of record Sept. 9, 1958, at the
rate of
preferred share for each 27 shares held; rights to
expire about Oct. 2. Price—To be supplied by amend¬
ment Proceeds—To acquire the capital stock of South¬
eastern Natural Gas Corp., for payment of the
company's
outstanding short-term bank loans and short-term notes
payable to suppliers, to the repurchase of notes receiv¬
one

able currently

discounted, and the balance for general
corporate purposes. Underwriter—Glore. Forgan & Co.,
New York.

Offering—Expected today (Sept. 18).

Tungsten Mountain Mining Co.
Aug. 11 (letter of notification) 100,000 shares of
stock

com¬

(par $1). Price—$1.50 per share. Proceeds—
To extinguish present indebtedness, increase reserve for
mon

1978.

Price—To

Co.,

Recovery Corp., Chicago, III.
37,500 shares of class A common stock. Price
Proceeds—For exploration and develop¬
of properties, and the balance for other corporate

$100)

Underwriter—None.

Corp. of America, Portland, Ore.
April 30,1957 filed 1,250,000 shares of common stock (par
16 cents).
Price—To be supplied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.
Albert

Griswold

Portland,

Ore.,

...

-v

;

(Republic of) .>
July 15 it was announced that the country contemplates
the issuance and sale of $30,000,000 bonds. Proceeds—For
electric power projects and other improvements. Under¬
writer—May be Kuhn, Loeb & Co., New York. Offer¬
ing—Expected in October or early November.

Uranium

Graham

of this company.

Austria

—$4 per share.

ident.

(10/9)

June 4 filed

purposes.

Co.,

664, JOl Indiana Ave., N. W., Washington 25, D. C.,
by 11 a.m. (EDT) on Oct. 9, 1958, for the purchase from
the Attorney General of the United States as an entirety,
515.6 shares of: Common capital stock
(par $100) and
210 shares of 6% cumulative preferred capital stock (par

Chicago, 111., and New York, N. Y.

ment

Manufacturing

Room

supplied by amendment.
Proceeds—To repay $10,300,000 of bank loans and for

Inc.,

Lynch. Pierce. Fenner & Smith.

Merrill

Sept. 9 it was announced that bids will be received at
the Department of Justice, Office of Alien Property,

Universal Oil

Treasure Hunters, Inc., Washington, D. C.
Aug. 14 filed 1,946,499 shares of common stock (par one
cent). Price—$1 per share. Proceeds—For research pro•gram, exploration, and it is hoped, recovery of buried
other

and

Arabol

Co., Inc., of New York.

Universal-Cyclops Steel Corp. (9/29-10/3)
Aug. 5 filed $22,500,000 of sinking fund debentures due

stock (par $1) to be offered pro-rata to stockholders on
the basis of one new share for 10 shares owned. Priot

addi¬

Underwriters—Blyth & Co.,

ing capital and inventories.
Inc.

Underwriter-

•

Trans-Eastern Petroleum Inc.
Feb. 27

Office—Salt Lake City, Utah.

Co.

announced that the company plans

the form of common stock,'
preferred stock, or a combination of the two, including
bank loans.
Proceeds—For expansion program, work¬

Feb.

purposes.

was

tional financing this year, in

17 filed 375,000 shares of common stock
-(par $1,
Price—$4 per share. Proceeds—To purchase equipment
and supplies and for working capital and other corporati

Nov. 6, 1957 filed 3,000,000

one

Steel

March 21 it

(Name changed to American Telemail
Inc.)

Uranium

Underwriter—None.

tures.:

Lauderdale, Fla.
Underwriter—Palm Beach Investment
Co., Inc., 308 South County Road, Palm Beach, Fla.
•

(9/24)

Wisconsin Electric Power Co.

Sept. 3 filed 510,005 shares of common stock (par $10)
to be offered for; subscription by holders of outstanding
common at the rate of one new share for each 10 shares

expenses

Office—Louisville, Ky.
Smith, is President.

$60 per

stock (par $1) of which 10,000 are to be offered to
holders at $2 per share and the remaining 62,035

United Security Life & Accident Insurance Co.
Aug. 22 filed 120,000 shares of class A common stock.
Price—$3 per share. Proceeds—To provide the reserves
required to be held in life and accident insurance poli¬

to pay

—

Underwriter—

capital.

System, Inc./

Wilier Color. Television

(with an oversubscription privilege);
rights to expire Sept. 30, 1958. Price — $375 per share.
Proceeds—For operating a life insurance and a sickness
and accident insurance company.
Office—2 White St.,
Concord, N. H Underwriter—None.

and

Price

held.

.7/c

April 2 (letter of notification) 72,035 shares

each 10 shares held

Edmond M.

outstanding 5% subordinated
of five shares for

holders

offered

each $1,000 of debentures then
share.
Proceeds—For working

Aug. 8 (letter of notification) 410 shares of capital stock
(par $20) being offered for subscription by stockholders,
of record Aug. 29, 1958 on the basis of one new share for

insurance.

debentures of record March 24 at rate

President.

cies,

St., Salt Lake City, Utah.

Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to i>e offered
for subscription by stockholders of record March 24 at
rate of one new share for each four shares held and one
additional share for the balance of such holdings in
excess of the number of shares divisible by tour;
also

United Life & Accident Insurance Co.

share of stock and $50 principal amount of

Shares, Inc., Denver, Colo.

—

Main

—

Thomas Paint Products Co.

May 26 (letter of notification) 1,250 shares of common
stock (par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one

Industrial

July 16 filed. 1,000,000 shares of common stock (par 25
cents).v.,Price—$5 per share.-'Proceeds—For investment.
Underwriter
Andersen, Randolph & Co., Inc., 65 So.

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $3 /
Price
$10 per share. Proceeds — For acquisition oi
operating properties, real and/or personal, includinf
office furniture, fixtures, equipment and office space, by
lease or purchase. Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland/ Ore., it

for

Western
>

Proceeds—To pay outstanding liabilities, to in¬
working capital and for general corporate pur¬

crease

filed

stock at the rate of

mon

Corp.

shares of capital stock (par $1) be¬
ing offered for subscription by stockholders of record
Sept. 17 at the rate of one new share for each 12 shares
held; rights to expire on Oct. 1. Price—$42 per share.
Proceeds—To be added to the company s general funds
and be available for general corporate purposes, includ¬
ing expansion of facilities principally at its Utah Divis¬
ion. Underwriter—Kidder, Peabody & Co., New York.

Trans-America

89,391 shares of common stock to be of¬
subscription by holders of outstanding comone new share for each three
shares held. The record date is to be supplied by amend¬
ment.
Price—At par ($5 per share). Proceeds—To be
applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction- and cohversion; prograrii.' Underwriter—None.
6

fered

Investors Plan, Kansas City.

$10,000,000 of plans for the accumulation
Century Investors, Inc. Price—Ai

Proceeds

Weaverville,

Car.

of shares of Twentieth

market.

(10/1)

capital stock (par $1).

per

Western Carolina Telephone Co.,
June

Mo.

poses.

Aug. 22 filed 106,669

writer—Stowers & Co., Kansas City, Mo.

June 20 filed

September 18,1958

share. Proceeds—For investment. Under¬
writers—Kidder, Peabody & Co., Bache & Co., Reynolds
& Co. Inc. and Dean Witter & Co., all of New York.

June 20 filed 2 000,000 shares of common stock (par $1)
Price—At mai^et.
Proceeds—For investment. Under*

Twentieth Century

Thursday,

Wellington Equity Fund, Inc.
Price—$12

Kansas City,

Investors, Inc.,

Aug. 29 filed 2.000,000 shares of

Stowers & Co., Kansas City, Mo.

Co., Abilene, Texas

April 30 filed 2,000,000 shares

Twentieth Century
Mo.

Bank of Astieville

holders

Pres¬

(N. C.)

announced Bank is offering to its stock¬
of record Aug. 22, 1958, the right to subscribe

Sept. 10 it

was

or
before Sept. 30, 1958, for 5,000 additional shares
capital-stock (par $10) on the basis of one new share
for each 4V2 shares held. Price—S30 per share. Proceeds
on

■

Utah Minerals Co.

April 11

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceed*
—For mining expenses. Office—305 Main St., Park City
mon

—To increase

stock.

Utah.

Underwriter—Walter Sondrup

& Co.,

Bank

Salt Lak«

-"i-V*l

May 6

(letter of notification) 300,000 shares of capital
At par ($1 per share). Proceeds — Foi
development of oil and gas lands. Office—574 Jefferson
stock.

Price

—

Utah
26

Power &

Light Co.

filed $20,000,000 of
redeem

first

capital

date/ Proceeds—To increase

and

surplus."

California

Electric

Power Co.

July 14 it was announced company contemplates mar¬
keting between $5,000,000 and $7,000,000 securities in
October, 1958.
Neither the exact date of the offering
nor

the

nature

determined.

of the securities

Decision

be offered has been

these two points

will probably

Proceed^—To repay bank loans.

Underwriter—To be determined by competi¬

not

tive

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities
Co., and
Smith, Barney & Co. (jointly). Bids—Were to have been
received in Room 2033, 2 Rector Street, New York,
N. Y., up to noon (EDT) on Sept. 9, but were postponed
on Sept. 3.
Bids will now be received on such day subsequent to Sept. 22, 1958 but not later than Nov. 25, 1958
as shall be designated by
company.:

of New York

Underwriter—Morgan Stanley & Co., New York.

Proceeds—To

1958-1960.

Underwriter—McCar"
•

later

mortgage bonds due
$15,000,000 of first mort¬
gage bonds, 51/4% series due 1987, to repay $4,000,000 of
bank borrowings, and the balance together with further
borrowings under a bank agreement and cash generated
in the business will be used to carry forward the con¬
struction program of the company and its subsidiaries
amounting to approximately $43,000,000 for the period
1988.

remaining 30,000-shares in the ratio of one new share
for each eight shares held after giving effect to the stock
distribution. Price—To be determined by trustees at a

Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.
June

;

it was announced stockholders will vote Sept.
increasing the capital stock by 110,000 shares to a
total of 270,000 shares'." Following approval, it is pro¬
posed to issue <80,000 shares as a 50% stock dividend
and offer to stockholders the. right to subscribe for the

Sept.

City, Utah.
Utah Oil Co. of New York, Inc.

capital and surplus.

ley & Col; Asheville, N. C.
,

be reached

i Central

until

Electric

mid-August

early September,

& Gas Co.

Sept. 11 the company applied to the Nebraska
Commission

common

vertible
Jackson

stock

sell

Railway

100,000 shares

(par $3.50) and up to $3,000,000 con¬
Underwriters — Paine, Webber,
& Webster Securities Corp.

debentures.

& Curtis- and Stone

Central
.

for. authority

ffadley Corp.

/ /

The shareholders of the company

; '
at

special meeting

held on June 23, approved ah amendment to
ficate of incorporation authorizing an issue

the certi¬
of 200,000

Volume 188

Number

5778

The Commercial and Financial Chronicle

(1139)
shares

$10).

(par

cumulative

Convertible

convertible

into

preferred

stock

common

for-10 basis;

stock

the

of $2.86 per share.
of

Proceeds—To retire outstanding notes
subsidiary in the amount of $768,000.

Central

Louisiana

will vote
company

• Chicago & North Western Ry

(9/3C)y"

Bros. &" Hutzler.

ized

was announced

the

having

sale

stock

Proceeds

' ;7/.:7;;i

that the directors have author¬

Petroleum

market this year.
New York. :

Weld & Co., all of New York

Proceeds—To finance construction program.

pany

that company plans to issue
year. No de- *
yet has been made as to the procedure the com¬
will follow.
Proceeds—For repayment of short-

term

notes

reported

and

for

construction

program

determined

by competitive bidding
probable bidders may be Halsey, Stuart & Co. Inc.
Merrill Lynch, Pierce,
Fenner & Smith, and White
Weld & Co.. (jointly); Blyth & Co., Inc.; The First Bostor
Corp.; Lehman Brothers.

directors,
stock

Utilities

Corp.

approved

connection^with

stockholders

offer certain shares

(on
the

•

Grace Line

plans

government

Inc.

„*

issue

insured

plan

authorizing the

offering! of;

'.l-for-20

same

basis),

terms to

common

also

employees, in-

■

„

bonds

seeured

$18,000,000 of
first preferred

000,000 each.

Underwriters—Merrill Lynch, Pierce, Fen¬
Smith; Paine, Webber, Jackson & Curtis; Smith,
Barney & Co.; White, Weld & Co.; and F. Eberstadt &
Co., all of New York. Offerings—"Santa Rosa" offering
and

expected sometime in October and "Santa Paula" offer¬
ing later in year.
' •
<.
•.

Great Atlantic & Pacific Tea Co.
Feb. 19 it was reported a secondary offering of common
voting stock is expected in near future. ^'Underwriters-

May include: Blyth & Co., Inc.; Carl M. Loeb, Rhoades
& Co.; Hemphill,. Noyes &
Co.; Smith,; Barney & Co.:
and Merrill Lynch. Pierce, Fenner & Smith.
-

Hartford Electric

Co.

Aug. 27 the directors approved a program under which
it plans to issue
149,633 shares of common stock (par
$25) to be offered first to common stockholders on a 1-

011

Nov. 6.

issue of between
soon

Registra¬

market.
Proceeds—For public works
Underwriter—The First Boston Corp., New

Moore-McCormack Lines, Inc.
March 24 it

Power

& Light Co.

and Lehman

common

stock:

For

Son.

Blyth & Co., Inc. and J. J. B.

bonds, to be determined by
competitive' bidding. Probable bidders: Halsey, Stuart &
Co; Inc.; Eastman Dillon, Union Securities & Co. and
Merrill Lynch, Pierce, Fenner &
Smith, (jointly); Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
any

Laboratory for Electronics, Inc.
July 3, Henry W. Harding, President, announced that
the directors are currently
considering refinancing $790,000 of outstanding notes
($658,750 held by a principal
stockholder and $131,250 by a bank)
| on a more perma¬
nent basis.
This may be done through equity or con¬
vertible debenture financing. Office—75 Pitts
St., Bos¬
ton, Mass.
★ Lorillard

(P.)

Co.

Sept. 17 company announced it plans to offer its stock¬
holders the right to subscribe for approximately 363,000
additional shares of common stock on the basis of one
new

share for

each

corporate

Brothers

and

Underwriters—Kuhn, Loeb & Co.

Brothers, both of New York.

Offering

—

Postponed because of uncertain market conditions.
New

York State Electric and Gas Co.

March 7 it

announced that

was

approximately $7,500,000

from additional

financing will be required for construc¬
tion expenditures for the balance of this
year. The man¬
agement intends to negotiate a new line of credit with a
group of banks and expects to sell equity securities later
this

year

in early

1959, depending

prevailing

upon

market conditions. Underwriter—For
any common stock:
The First Boston Corp., New York.

★ Norfolk & Western Ry. (10/9) (11/13)
Bids will be received this Fall
by the

(12/18)'

company for the
purchase from it of $19,200,000 equipment trust certifi¬
cates due from l-to-15 years, viz: Oct. 9,
$7,440,000; Nov.
13, $5,310,000; and Dec. 18, $6,450,000. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Northern

Illinois Gas Co.

June

year

$10,000,000 mortgage bonds.

announced

was

determined

will sell late

this
Underwriter—To be

company

competitive

Stuart

bidding. Probable bidders:
First Boston Corp.; Glore,

Inc.;

Pacific Gas & Electric Co.
20 it was reported
company

March

eight shares held. Proceeds — For
Underwriters — Lehman

purposes.

Smith, Barney & Co., both of New York.

Master Fund, Inc., Fairfield, Calif.
Jan. 27 it was announced this newly organized

ding.

sale

Probable bidlers: The First Boston Corp.; Halsey,
Inc.; Blyth & Co., Inc.; (2) For preferred
Blyth & Co., Inc.
*
-

Pacific

Telephone & Telegraph Co.

Aug. 22 it

announced

was

(11/18)

plans to issue and
$80,000,000 of 32-year debentures due Nov. 1, 1990.
construction

program.
Underwriter—To
by competitive bidding. Probable bid¬

determined

ders:

company

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

Bids—Expected to he received
Pacific

Aug. 22 it

for each

.*•,

reported company plans to offer to its
preferred stockholders 1,594,604 additional
stock

common

eight
($100

—At par

Nov. 18.

was

and

common

shares of

Telephone & Telegraph Co.

per

the basis

one

new

preferred shares held.. Price
share). Proceeds—To repay advances

common

and

to reimburse the treasury for
capital expenditures
previously made. Underwriter—None. Control—Of the
332,000 shares of 6% preferred stock (par $100) and 11,936,835 shares of common stock (par $100) outstanding
as of Dec. 31,
1957, there were owned by the American
Telephone & Telegraph Co. 640,957 preferred shares and
10,790,943 common shares.

Panama

July 14 it

(Republic of)
announced

public offering is expected'
approximately $26,000,000 external bonds. Proceeds—

of
To

was

redeem

feeder

certain

road

outstanding debt and for Panama's
Underwriter—Lehman Brothers,

program.

New York.

Pauley Petroleums, Inc.
Sept. 2 it was reported that the company plans early
registration of 500,000 shares of common stock. Under¬
writer

—

William

Staats

Registration—Scheduled

for

Co., Los Angeles, Calif.
Sept. 17. Offering

around

—Expected in mid-October.

Pittsburgh & Lake Erie RR.
Bids

are

(9/24)
/
expected to be received by this company on
for the purchase from it or $3,975,000 equip¬

ment trust certificates.

invest¬

Stuart & Co.
stock:

Sept. 24

Registration—Expected early in November.

plans

undetermined amount of bonds and/or
preferred stock
in the latter part of this year or
early 1959. Underwriter
—(1) For bonds to be determined by competitive bid¬

Proceeds—For

construction

Milliard

announced company

$24,000,000 of

Forgan & Co.; Blyth & Co., Inc.

announced company plans to issue and
of first mortgage bonds due 1988. Pro¬

For any

was

plans to issue and
government insured bonds secured by
first preferred ship
mortgage on the liners S. S. BrasU
and S. S. Argentina.
sell

Halsey,

was

plans to issue

—

sell

company

amount
of first mortgage
(about $10,000,000) in the latter part of this year
or
in early 1959. Proceeds
To repay bank loans.
Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co.,
Inc.; Merrill Lynch, Pierce, Fenner & Smith and
Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.

$30,000,000

be publicly offered

Corp. (jointly); Glore, For¬
Co.; and Goldman Sachs & Co. (jointly).

Kansas
Feb.

the

undetermined

bonds

Stone & Webster Securities
gan &

announced

was

Probable bidders:
& Co. Inc.; Salomon Bros. & Hutzler.

Halsey, Stuart

California

nians to offer to bona fide residents of
10,0^7 shares of capital stock (par $1). Price
—$10 per shar;, less an underwriting discount of 8^2%.

★ Puget Sound Power & Light Co.
;
Sept. 12, Frank McLaughlin, President, announced that
company plans to issue and sell $15,000,000 sinking fund

Proceeds—For investment.

approximately

ship mortgages on the new "Santa Rosa" and "Santa
Paula." The financing will comprise two issues of
$9,ner

(EST)
Sept. 24.

a.m.

American

general

eluding officers, of System companies. Clearing Agent—
Merrill Lynch, Pierce, Fenner & Smith, New York. Of¬
fering—Expected late in November.
k

Company

to 11

Bids—Expected

Kentucky Utilities Co.
June 16 company stated it will sell bonds and/or com¬
mon stock in
the last quarter of 1958.
Underwriters—

Un¬

7 stockholders

construction

Gas Service

April

for

used

program.
Underwriter—To bo
by competitive bidding. Probable bidder*;Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth &
Co., Inc.; Equitable Securities Corp.

derwriters—May be Merrill Lynch, Pierce, Fenner &
Smith and Kidder, Peabody & Co., both of New York.
Offering—Expected in October.

General Public

loans

determined

Light Co.*V'v
Aug. 20, McGregor Smith, Chairman, announced that the
company plans the sale of 300,000 shares of new common

the

ceeds—For

Florida Power &

loans

bank

$50,000,000 of bonds may

sell $10,000,000

Uhderwriten
.—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith;/and White

retire

Co. Inc.; Kidder, Peabody &
Co., and Merrill
Lynch, Pierce, Fenner & Smith
(jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and

Equitable Gas Co.,•
7%^
July 18 it was announced that the company expects later
in the year to issue and sell additional securities, prob
ably preferred stock, to secure approximately $5,000,001
of additional funds. Proceeds—Together with $7,000,00f
from private sale of 4%% bonds, to repay short-term

—

November.

construction program. Underwriter—To be determined
by
competitive
bidding.
Probable
bidders:
Halsey,

and

Proceeds—For

Chairman, announced that com¬
plans to sell some bonds originally scheduled for
mid-year, but which sale may now be deferred until
Jate 1958 or early 1959. Proceeds—About $8,000,000 for

juice, and "Clapp" baby foodsf Underwriter -- Kidder,
Peabody &■ Co., New York. ;'b:JV

Underwriter

•;

sell

Stuart &

bank loans and for construction program.

Montana-Dakota Utilities Co.

pany

—

was

—

Kansas Gas & Electric Co.
March 31, G. W. Evans,

that an offering of 250,000
shares of common stock is planned (including 100,000
for company and 150,000 shares for
selling stockholders.
Business.
A leading processor of "Sunswe'et" prune

March 24 it

Underwriter

Duffy-Mott Co.
Sept. 15 it was reported

cision

placed
early
7 7
-

: •

Corp.; Harriman Ripley & Co. Inc.

projects, etc.
York.
/

•

stock.

Inc.

Japan (Empire of)
Aug. 20 it was stated that

were

October

program.

,'■-/// V-'">7;.

tion—Planned for around

Underwriter—Kuhn, Loeb & Co.,
/• '• *

can

issues

For construction

—

to be received
up

Co.

(Kingdom of)
Sept. 2 it was reported that an issue of between $20,000000 to $30,000,000 may possibly be placed on the Ameri¬

program.
Underwriter—To be determined by competi¬
tive bidding. Probable bidders:
Halser, Stuart & Co. Inc.;
.Eastman Dillon, Union Securities & Co.; The First Bos¬

and

Denmark

bond

Expected late
.:

Proceeds—To

ton

that the stockholders are to
15 on approving a proposed offering of
$10,000,000 20-year convertible subordinated debentures.
"Underwriter—billon. Head & Co., Inc., New York.

Chas.

Co. (11/6)
Aug. 26 it was announced that the company plans early
registration of $20,000,000 first mortgage bonds due 1988.

reported

was

Co.,

^Indiana & Michigan Electric

of the

the first three months of 1959.

it
Sept.

Previous
—

sometime in cOetober

Aug. 25 it was reported that the company may issue and
sell $25,000,000 of preferred stock.
Underwriters—May
be The First Boston Corp. and Glore Forgan & Co., both
of New York. Offering—Expected late in 1958 or during

expansion. Underwriter—
Glore,-Forgan & Co.; New .York.
Offering — Expected

Cosden

Co.

stockholders.

not

Commonwealth Edison Co.

vote

Heublein,

Aug.

Putnam

Aug. 25 it was reported that the company plans early
registration of 400,000 shares of common stock; of which
100,000 shares are to be sold for the account of selling

company.
Underwriter — To be
competitive bidding. Probable bidders
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Glore.
Forgan & Co. and Eastman Dillon Jnion Securities &
Co. (jointly). Bids—Expected to b« r^^ived on or about

21.

Offering

None. "*■

determined- by

Oct.

—

★ Hawaiian Electric Co., Ltd.
Sept. 12 it was announced company plans to offer to its
common stockholders the
right to subscribe for an addi¬
tional 42,350 shares of common stock in the near future.

•--To repay advances received from American Telephone
& Telegraph Co. which owns 29% of the outstanding
common

Scranton

November..

exceeding $25,000,008 debentures
maturity of not more than 35 years. Proceeds

Underwriter

Proceeds—To build pipe line system to cost about
$111,-*
Underwriters — Stone & Webster Securitiea
Corp. and White Weld & Co., both of New York.

000,000.

and

Cincinnati & Suburban Bell Telephone
Co. (10/21)

July 7 it

approved, the
will seek authorization of the Connecticut P. U.

privately.

Inc.frSalomon

and

March 24 it

Sept.. 3.0 for. the purchase from it of $1,875,000 equip¬
trust certificates (the first installment of an au¬
thorized, issue of $5,625,000).
They will be dated Oct.
15, 1958 and will mature in 15 equal annual installments/
Co.

proposal

& Co. for any preferred
Under previous rights
offering to common stock¬
holders unsubscribed common stock was sold to Chas.

ment

Halsey, Stuart &
V-. '•7/

the

Scranton & Co. and Estabrook

bidders:

stock.

Bidswill be received by the company up to noon (CDT)

Probable

Oct.

Commission.

Electric

Co., Inc.
March 28 it was announced that the company's financing
program for the year 1958 anticipates the sale of botl
debt and equity securities (probably- preferred stock
aggregating approximately $5,000,000. Both issues ma?
be placed privately.
V:
'//•s'/iVV

100,000 shares of preferred stock (par $50);
$18,000,000 of first mortgage bonds. Stockholders

and

rate

debentures.

ment

company

Michigan Bell Telephone Co.
Aug. 12 directors approved plans to sell $40,000,000 of
34-year debentures. Proceeds—To redeem a like amount
of 4%% debentures due November, 1992.
Underwriter
—To be determined by competitive bidding.
Probable
bidders:
Co.

Halsey, Stuart & Co. Inc.; Morgan Stanley &

Bids—Had

been tentatively scheduled to be re¬
Sept. 16, but on Aug. 26 it was voted to post¬
pone this refunding program because of present market
ceived

conditions.
Midland
March

Enterprises, Inc.

28,

company announced it
Dec. 31, 1958 $3,200,000 of

Midwestern Gas Transmission Co.
March

was

announced

that

this

subsidiary

Tennessee Gas Transmission Co. has applied to the Fed¬
Power Commission for permission to issue first

eral

mortgage

bonds,

un|ecured notes and common stock.

Proceeds—To

reduce

bank

loans.

Under¬

writer—To be determined

by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc. and Lehman
Brothers
(jointly); Merrill Lynch, Pierce, Fenner &
Smith; Stone & Webster Securities Corp., The First Bos¬
ton Corp. and Smith, Barney & Co.
(jointly), Bids—r
Expected to be received late in October, 1958.
St.

Joseph Light & Power Co.

April 15 it
market

was

announced

$6,500,000 in bonds

that the compa&y plans to

preferred stock "sometime
on
May 21 voted on
authorizing an increase in bonded indebtedness of $6»500,000, and an increase in preferred stock from 25,000
shares to 50,000 shares. Proceeds — For repayment of
this

plans to issue on or
first preferred mort¬
gage bonds.
May be placed privately. Proceeds — To
repay bank loans and for working capital.
before

summer."

short-term

The

bank

stockholders

loans

and

for

construction

program.

Underwriter—For bonds to be determined

by competi¬
bidding. Probable bidders: Halsey, Stuart & Co, Inc.;
Smith, Barney & Co., Glore, Forgan & Co. and Blair
& Co. Inc. (jointly); White, Weld & Co.; Equitable Secu¬
rities Corp. Last preferred financing was done privately^

tive

Continued

page

Chronicle

The Commercial and Financial

;

Thursday, September 18,1958

(1140)

may

run

preme

that this corporation late this

Sept. 4 it was announced

plans to become an open-end Fund
additional shares of its capital stock.
Lehman Brothers, New York.
year

and issue some
Underwriter-

Aug. 2fj it was announced that the company

in all prob¬

ability will offer additional common stock to its share¬
holders in the near future. Proceeds—To expand opera¬
Office

tions.

Auburn Ave.,

197

—

stockholders authorized an additional 100,000
preferred stock (par $50).
Underwriters—
Stone & Webster Securities Corp. and Paine, Webber.
9

Telephone

Bell

Co.

July 10 it was announced Missouri Public Service Com¬
mission authorized the company to issue $110,000,000 of

Proceeds

35-year debentures.

—

short term obligations

postponed.
1958.

been

about Sept. 30,

St. Louis, Mo.
announced company plans

Union Electric Co.,

March

it was

to market

Offered

petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler (jointly);

previously incurred.

o r

whose sales in

p.,

amounted

Kuhn, Loeb & Co., and American Securities Corp.
(jointly). (2) For any preferred stock—Merrill Lynch,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Dillon, Union Securities & Co., (jointly); Leh¬

man

Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co.

Inc.

(jointly); The First Boston Corp.; White, Weld

ties.

Consolidated
sales
and other
o n w i cl e underwriting
sively entered the international
headed by Morgan Stanley crude oil exploration and pro¬ income of the company for the six
m on ths
e n d e d
June 30, 1958
& Co. and comprising 216 invest¬ duction scene in recent years.
It
ment firms is placing on the mar¬ currently is engaged in explora- amounted to $919,910,000 and net
ket today (Sept. 18) an issue of tion in Venezuela, Iran and Libya, earnings
were
$52,423,000 comwith
$1,049,465,000
and
$200,000,000 Standard Oil Co. (In- and has a contract to develop pro- pared
diana) 4M>% debentures, due Oct. duction in Argentina.
$82,577,000 for the first half of

will be watching the
market, now in new historic

People
stock

high ground, for the next week or
so and, if there is further gather¬
ing of the inflation clouds, bonds
could suffer by neglect.

solutions.

nitrate

ammonium

and

Ana t i

group

The debentures are of-

1983.

and accrued interest

fered at 99%
lo

yield about 4.57% to maturity,
offering represents one of

Tho

Most of the company's chemical
activities
new

are

now

integrated in

subsidiary, Amoco Chemicals

——■—-—

:——-—

For the 1957 calendar year
total income was $2,029,689,000
and net earnings $151,509,000.
1957.

—

the larger

debt

underwritten industrial
financing operations of 1958.

The debentures

able

prior

funds

are

Oct.

borrowed

with

1963

Greater Promise for Germanium

non-refund¬

Westinghouse chemist finds

lower inter¬

Annual

sinking fund payments
of $6,500,000 from 1964 to 1982 are
of

the

retire

debentures

prior

60%

least

ma-

The sinking fund redempprice is 100.
Regular redcm.ption prices commence at
104% to and including Sept. 30,

turity.
tion

1960, decreasing thereafter to the
principal amount on and after
Oct. 1, 1978.
The net proceeds from the sale
of the debentures will be applied
by the company to the retirement
of $60,000,000 of short-term bank
loans, with the balance going to
General funds to be available for
capital expenditures ana other
.

Sept. 11 at the American Chemical Society's 134th national meeting.

what

agent

may

Products Depend

tions

Catalysts take
have

a
„

wide
wmc

catalysts

are

many

vallKly
variety

some

cases

used

forms and
amtUKU.
appliea-

ul
of

specialized

toIlovTdownor

•

to the

marketing and 8% to the trans¬
portation and other divisions.
Standard
subsidiaries

Indiana

constitute

and

its

the

one

catalytic materials"
Overlaps Chemistry and Physics
The

fuels, for example, could not
produced without catalysts.
The

fundamental

cribed bv Dr

research

des-

Sandler is exnprtprl

largest integrated organizations in to provide a better understanding
the petroleum industry.
Its pe- of how catalysts work, and to
troleum products are marketed in to further discoveries in this i™
all the 43 states although marketportant field of chemistrv
He
ing is limited to lubricating oils commented that the research alio

as a
.

prepared

the^overlapping

specialty products in three
southwestern and west coast states,

demons rates

Tiie

chemistry and physics

company

reserves

estimates
Dec.

were

states and
lion

cubic

net

1957,

all

the

Canada,

barrels of

ural gas

31,

its

United

2,1/4 mil-

oil

the

scientific

areas

the

speaker observed

and nat-

effects

germanium

feet

natural

gas.

The

important

the

role

^r^reg"dere« reTorte^'thal
capacity
at
June
30,
1958
of rep0lted
that
725,OCO barrels-per-day.
Long a crude oil producer in
Canada, the company has aggres-

of
by

germanium acts
an electronic

catalyst through

d CdU?iy&t U,1UU8U dU eiecuuinc

mteractlon that creates weak

that

kind

"should

in
...

the meta1' the chemlst explained,

This effect is thou§ht to be caused
by a number of active electrons
S?6"1 W °" ,the SUf£af' Iu
th!f fa<talytiC actl?n' ™blcb was
called "weak chemisorption," gercollects surrounding
manium

New applications for the transistor metal were not
discussed, but

liquids and 12,720 billion

cruae

covered

speed-

displayed
play an

reactions
.vuvuouo

ceitain

propm-

atoms
verses

the

molecules and

the

process,

later

according

re¬

presented his scien-

tific paper, which dealt with the

^ ^ * germ£mium °" hyd«*en

chemical and on oxygen, at a session spon-

changes involving hydrogen

sored

the

ACS

Division

fixing

given issue, it has
closer to ideas
what the investor would be
on

been possible to get
of

consider

willing

way

Rather bankers

forced to turn

are

emphasis in the opposite di¬
and figure just how high

in the hope of being

can

awarded the issue in question.
Thereafter

pattern to

the

of investors

ideas

and, in this part of the operation

seldom easy. Ordinarily

are

it takes

almost perfect blending

of all factors to

several

bring

deal such

window

out-thc-

has marked

negotiated

the

opera¬

the

weeks

change in Federal Reserve
is

Right

however, the under¬
fraternity, pleased with
recently,

now,

writing

is casting its eyes in the
the

cue

what

the latter

way

direction

seeking

Treasury

in mind in the

may

have

of new issues

replace maturing obligations.
Taking

plans for handling the impending
maturities of $3 to $4 billion, over
coming week

have time

been

feasting

paratively
the

now

moment

who have
run of com¬

buyers,

"fat

this past
satiated for

calves"
appear

and

ready

renewed
soned

much

credit

raggedness

market

this

spell.

the

tlic
sea¬

condition,

Physical Chemistry in the Hamil-

but

ton Hotel.

competition which has been aris¬

they

are

to draw

will

barely

deep breath

completing its coming financ¬

ing before turning to provide for
another $11 to $12 billion of debt
falling due in November.

will be

The coming week

a com¬

paratively sluggish one in the new
issue market. Only two issues are
scheduled for offering, with Con-,
sumers Power Co. raising its entry
from $35 to

$40 million of bonds,
bids on Tuesday.

slated to open

was slated to
of new preferred

utility also

sell $15 million

Wednesday but has decided to

delay that particular

phase of its

The same day bankers will
market $15 million bonds of the
Kingdom of Norway.

plans.

And

Co.
on

Electric

Wisconsin

will

offer

Power

its shareholders

"rights" and without benefit of
510,005 additional

shares of common.

D. Hoffman Opens
Daniel Hoffman is conducting a

securities business from offices at
342

Madison

Avenue,

New

York

City.

HORNELL, N. Y.—George D. B.

Bonbright & Co., have opened an
office at 14 Mays Avenue, with
John S. Clancy as representative.

settle

back and watch things for a
Observers

end.

Treasury

the

But

Bonbright Branch

Breather.

Institutional

policy.

Secretary

Robert B. Anderson may announce

what it has accomplished

that

expected

underwriting,

below

Fahrenheit.

chequer

This

task

the

comes

fit the reoffering price

trying to

were
greatly accelerated at 310 degrees
zero

question.
The nation's ex¬
has its work cut out in
ahead what with the

the

Light Week Ahead

bidding
comes
into play, among utilities
and railroads, this is not the case.
competitive

Where

things

considered

and yield.

coupon

fortnight,

report.

Dr. Sandler

feel

tions of this week and last.

lea® chemical bonds at the surface of

and

before

the

they

^Th^^omMmi^Mtirnntes that it. c'le!"'ca.' reactions. The catalytic otherwise control a process. Alcanital exnendTtirw for 1 Tiff will f
iV1«y
P^h-white m0st every product of chemistry
Up
ahnnt
nnn nnn
with
metal, after it is subjected to an depends on one or more catalysts
^,a., f $-0 000,000 with 51% electric discharge, was said to be at some stage of its development
distributed to the producing, 28% "as
high as found with the best ~
'
development.
Modern
high
powered motor
lo the manufacturing, 13%

market

together

rection

On Catalysts

lltlvc

his client

banker and

closely

their
All Chemical

well in the laboratory as a catasome

estate

real

facilitate the purchase of a house.

Laboratories
Pittsburgh,
Pa., disclosed that specially prepared, pure germanium works

accelerator/for

proc-

bring together the reacting substances or to create conditions
favorable to the reaction, some-

chemical

catalysts themselves are not
consumed. They merely function to

bond as

Treasury's

the

price-tag

esses,

Dr.
Y.
L.
Sandler, research
chemist of the Westinghouse Re-

lyst,

With

working
out

In speeding

which

demand

greeted the current outpour¬
ing of negotiated debt securities
offerings naturally has had the ef¬
fect of bolstering sentiment in the
market place. And well it should

chemistry and physics.

Germanium — the substance in
the tiny transistors and rectifiers
of modern electronics—also has
the ability to speed up certain
chemical processes, it was reported

investor

Brisk

has

circumstances a
a part of the
refinancing offer is
more
or
less out of

present

long-term

demand.

as a

better under¬
standing and lead to further discoveries in the important field
catalyst and should be expected to provide

est cost than 4.57 %■.

calculated

germanium works well

pure

Treasury's Problem
Under

have, for these issues were no
ordinary flotations but rather of
a
scope
to test the underlying

Reported

equi¬

ing from the bull market in

1957

about

$22,000,000.
The company owns a 55% interest
in Calumet Nitrogen Products Co.,
which owns and operates a plant
for making anhydrous, ammonia

By Large Nationwide Underwriting Group
Headed by Morgan Stanley & Co.

plans to sell about

company

Co.; Kidder, Peabody & Co

Standard Oil Go. (Ind.) Debentures

March 4 it was announced

$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet been
decided on.
Underwriter—To be determined by com¬

Eastman

of common stock in the latter part of

about $30,000,000

Public Service Corp.

Wisconsin

Inc., New York.

Stanley & Co. Of¬
Bids had been expected

sale

Offering—Expected this

(jointly).

White, Weld & Co.

Virginian Ry.
Aug. 26 the directors approved a proposal to exchange
2,795,500 shares of 6% cumulative preferred stock (par
$10) for $32,148,250 new 6% subordinated income sink¬
ing fund debentures to mature Aug. 1, 2008 on the basis
of $11.50 principal amount of debentures for each pre¬
ferred share. Dealer-Manager—Harriman Ripley & Co

Halsey, Stuart & Co. Inc.; Morgan
fering—Has

1959.

Light Co.

Fall.

The purpose is to restore government balances
which have been reduced by the repayment of excessive

To refund outstanding

Gas

Halsey, Stuart & Co. Inc.; Estabrook & Co. and Coffin
&
Burr, Inc.
(jointly); Kidder, Peabody & Co. and

000,000.

$100,000,000 4%% debentures. Underwriter—To be de¬
termined by competitive bidding.
Probable bidders;

early in

$5,000,000 first mortgage bonds. Underwriter—To be
determined by competitive bidding.
Probable bidders;

financing involved is in the neighborhood of $250,-

new

1958

Aug. 18 it was reported that the company plans the

will
the

Savings Association. The Chase Manhattan Bank
the fiscal agent for the credit.
The amount of

Smith,

York, and Bank of America National Trust

Bank of New

Jackson & Curtis.
Southwestern

(Government of)

for the country. As a first step in the pro¬
short-term credit is being negotiated between the
government in cooperation with the two investment
banking firms and a syndicate of commercial banks in
the United States, Canada and the United Kingdom.
The three institutions which are to head this syndicate
are The Chase Manhattan Bank, The First National City

N. E., Atlanta, Ga.

Inc.;

Co.

Worcester

program

Power Co.

Southern Colorado

May

late

gram a

Underwriter—None.

Securities Corp. and
Co. (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until

the Government announced that Kuhn, Loeb &
Co. and Kidder, Peabody & Co., both of New York, have
been selected as financial advisors to develop a financial

Fideiity Fire Insurance Co.

Southeastern

Stuart

(jointly);
Eastman Dillon, Union

Securities

American

Brothers, Smith, Barney &

Venezuela

July

Halsey,

Equitable

Proceeds—

Underwriters—Expected to be Leh¬
Co. and Merrill Lynch,
Pierce, Fenner & Smith, all of New York.
OfferingExpected in mid-autumn, probably late in October.
man

bidders:

Barney & Co. and Robert W. Baird & Co., Inc.

Chemical Society.

Ltd.

Fund of Canada,

Court (expected within two months).
Petroleum
Research Fund of the

the

October, 1958.

plans to Issue
Proceeds—

$10,000,000 of first mortgage bonds.

Probable

between $50,000,000 and $60,000,000. Approval
rests with the New York State Su¬

transaction

the

Light Co.

To retire bank loans ancj for construction program. Un¬
derwriter — To be determined by competitive bidding.

Aug. 13 it was reported that an issue of common stock
will soon be offered to the public, the proceeds of which

plans to issue and sell
stock, of which it is
exchange for out¬
standing preferred stock. Underwriter—Paine, Webber,
Jackson & Curtis, Boston, Mass. Offering—Expected in
Aug. 4 it was reported company

100,000 additional shares of common
intended to offer 17,000 shares in

Scudder

and sell

Universal Oil Products Co.

(Mass.)

March 17 it was announced that company

construction program.

Instrument Co,

Scientific

Sanborn

Power

Wisconsin

Proceeds—For

the first quarter of 1959.

this year or in

Continued from page

not overlooking the

Goodbody Branch Opened
ATHENS, Ga.—Goodbody & Co.

branch office at 289
under the man¬
agement of Homer G. Cooper. Mr.
Cooper was former local manager
has opened a

Lumpkin

Street

for Courts & Co.

Volume

188

Number 5778

The Commercial and Financial Chronicle

(1141)

Pemiroad

Offer

Dillon, Read Group Offers 1,200,000 Slis.

Additional Shares

Mutual Funds

Of American-South African Invest. Co.

To Stockholders

Offering Price is $28

By ROBERT R. RICH

Kuhn, Loeb & Co. syndicate
underwrite

The

Pennroad

closed-end
filed

Corporation,

registration statement covering

proposed offering to its

stockholders of

com¬

for each four shares held.
The

about

Oct.

$32,728,000 for August

1958, >at which

subscription rights will ex¬
pire about Oct. 15, 1958. The of¬

fering will he underwritten by
of investment firms

-group

Auff. 31,1958

Total

In addition to the

primary sub¬
right, the subscription
offer will give each stockholder
an oversubscription privilege.

vestment

scription

number

short-term

and

146

boncls_._____

729,508

to its general

Sales

cor¬

consist

shares of

solely

6,433,095
?

A change in the name of Penn¬

to Madison

road

new

Fund, Inc., will

stockholders at
special meeting to be held on

Oct.

15.

directors

Pennroad

IPC

Sell Shares

Of Axe Science

the company as affiliated with or
controlled
by the Pennsylvania
Railroad
ment

Contractual Basis

have

investors continue to regard

many

Investors

Company, the manage¬
originally formed

which

the

two

companies

was

discontinued in 1939 and Pennroad
believes the
substantial

relations

new

name

will be of

advantage to it in its

with

investors

distribution

mutual fund contractual

new

plan for

the accumulation of shares of Axe

Science

Electronics

Corp.

The plan was developed for Inr
vestors Planning's 2,600 registered
representatives and its franchised
affiliates throughout the eastern

I. P. C. President Walter Bene¬

said

the

broadness

dick

National Investors

plan's distribution makes its
introduction "a
major develop¬
ment' in the application of con¬
tractual plan investing to specialty

Assets at $80 Million

mutual funds.

the

new

Corp.,
stock

old

22-year

the
fund

the

growth

Broad

Street

Except for the investment

me¬

dium used, he added, its prospec¬
tus is modeled after the I. P. C.

plan
for
the
accumulation
of
of Mutual
Funds,
have shares of
Axe-Houghton, Fund B.
topped $80,000,000 it was reported This balanced fund
plan was in¬
by Francis F. Randolph, Chairman troduced
by I. P. C. on Oct. 20th,
and President.
1953.
Over 50,000 Fund B plans
Group

reached

assets

Net

record

have

established

been

since

1957.

supplement, not
place," the Fund B plan.
"to

signed

According
to
Mr.
Randolph,
market appreciation of the fund's
portfolio securities accounted for
of

rise

the

asset

value

assets.

was

Per

$10.97

Sept. 15, up about 27% from the
$8.62 reported at the start of the
year.

stockholders
vestment

have

"We

instructed

people and advised
to

offer

the

re¬

affiliates

balanced

fund

"Balanced Funds

such

Fund

systematic investment pro¬
using mutual funds as the
vehicle," Mr. Bene¬
dick said. "The new plan must be
regarded as an opportunity to
investment

build

DIVIDEND

Investors

shares
Massachusetts

paying

15 cents per
investment

Life

Fund

dividend

share from net

income, payable

September 22,1958 to holders
of
at

trust

the

such

sells

mutual

the

funds.

assets

securities

South

convertible

into

or!

companies engaged
businesses
of
varied

of the

date

pounds,

other

types

South Africa.
The
securities in
which the company invests will be

will

Adams

re¬
a

later

than

Sept. 27, 1958, for
directly from present

purchases
holders

substantial

common

the Over-the-Counter Market.

The

Treasury

ruled

blocks

certain

com¬

neither

that

loss

any

the

personal

holding company in that 95%
its

stock

family-owned.

The

would
become effective
Oct. 15, 1958. As of Sept. 2, 1958,

merger

outstanding
Street

State

stock

common

comprised

business

conditions

pany

gain

with

and other developments, the com¬

nor

Adams

connection

Adams

merger.

Subject

has

Department

Street will realize

State
or

initial conversion

convert into .j dollars,

amount equal to its initial cap¬
at the same
exchange rate

ital
at

which

that

eonverted

capital
from

was

first

dollars

into

pounds.
Mr.

Charles

can-

Engelhard

of the board

South

African

over 10,000 contrac¬
voluntary and single-pay¬
ment plans of other open-end in¬
vestment companies.

4,999,433

expects to invest the great¬
portion of its net income and

entire

the

amount

of its capital
comparatively
minor portion of its net income for
the payment of semi-annual divi¬
dends. It is the company's inten¬

gains and to

use

tion that shareholders will receive

dividends in United States dollars.
As

foreign

corporation,

Investment

Company, Limited. Mr. Engelhard
is hlso chairman of EngelhaM In¬

dustries, Inc. and affiliated com¬
panies, chairman of Rand Mines,
Ltd., and chairman of Rand Amer¬
ican
Investments,
(PTY)
Ltd.
Gordon V. Richdale, deputy chair¬

tor of Rand American Investments

(PTY) Ltd.
Charles S. Barlow,
managing director of AmericanAfrican, is chairman of

South

American

South

African

Invest¬

ment

Company, Limited: James B.
Baldwin, a vice-president of Kes¬
wick
Corporation;
Frederic
H.

Brandi, president and director of
Dillon, Read"& Co. Inc.; Francois
de Flers, vice-chairman and gen¬
eral
manager
of
Banque
de
LTndochine; Kingman Douglass, a
vice-president of Dillon, Read &
Co.
Inc.; John F. Fowler, Jr.,

Continued

the

International,
St.

Get the facts

Regis Tops

With
The

page

International

CUSTODIAN

Paper Co. and St. Regis Paper
Co. represent the largest holdings
in

Managed

Shares, it
the

Funds, Inc.'s Paper
reported yesterday
million mutual fund

FUNDS

was

$60

FRANKLIN

Managed

securities

group.

One of the

classes

Find out

of shares

by
Managed
Funds,
Paper Shares is the first and only
fund

now

about this series of Mutual Funds

seeking

Gardner,

Jr.

staff of Reynolds & Co., 425

Mont¬

gomery

with

Street;

was

Baxter & Company.

the

ican

nation

industry.

FRANKLIN CUSTODIAN

is invested in Inter¬
9.1% in St. Regis.

64 Wall

national
Other

and

Paper

portfolio

(8.4%),

Crown Zeilerbach

(7.7), American
Union Bag-Camp

FUNDS, INC.

Street, New York 5, N. Y.

Please send me, without obligation, the Prospectus and other information concerning the Franklin Custodian Funds.

Can

leaders

are

(7.0)

Scott

and

Paper
The

class

Paper

(6.2).

formerly

Kidder, Peabody & Co. and

Of its $13.1 million in total net

(Special to The Financial Chronicle)

Cal.—Belden
has joined the

class

possible growth and income through investment in Amer¬

solely in the securities of
the pulp and paper industry.
assets, 9.2%

Reynolds Adds to Staff

of Ameri¬

invested

than

for

capital,

shares of $10 par value.

mutual

Reserve

the purpose of a return of

the

^pewrififi^
shares,

African

of U. S. dollars into South African

con¬

common

Exchange Guaranty Agreement

the

common

him

with the company under which
the company may, after five
years,
but not later than 10 years, from

Afriga,, The ^l^nce, other chairman

common

taxable

$8,580,000. panies engaged in mining gold, Thos. Barlow & Sons, Ltd., a di¬
premium of 3J/2%, or ap¬ and in other businesses, in South rector of Standard Bank of South
proximately $300,000, accruing to Africa. The total purchase price Africa Ltd. and Syfret's Executor
State Street results from the fact of the securities to be acquired & Trust Company
(Proprietary)
that its shares have commanded a pursuant to the contracts is $22,- Ltd.
The following are directors of
premium above net asset value in 449,592.

tual,

its

SAN FRANCISCO,

Street, Boston 9, Mass.

Incorporated 1818

the

not

ceive shares of State Street with

firm services

50 State

en¬

than minor ahiounts which may be
held in cash, will be invested in