Full text of Commercial and Financial Chronicle : September 24, 1959, Vol. 190, No. 5884

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

CANADIAN INVESTMENT OPPORTUNITIES FEATURED

IIP ^5 1959
MINKS ADMINISTRATION
LIBRARY

Reg. XJ. 8. Pet. Office

.Volume 190

Number

5884

New York 7, N. Y.,

The Canadian

Ungava Area

Said the President in

By EDMOUR GERMAIN
Am axperienced

and

Quebec,

developments in the whole

ore

The

involved;

writer

participants

names

notes their

two-way wheat and

plans;

in

the

of

area

syndicates

discusses the possibilities of

hauls

ore

Ungava

the

on

and

route;

seaway

was

points out how badly hydro power and ore deposits were
underestimated.

spent $t

billion
lifetime

on

billions of dollars
t

''

.•

Iron

',

and

ore

.'

-

"As

' -.

1

.

»

hydro-electric

:

.-

power

'■

...

eastern

to

are

Canada, and in particular to the region of Ungava and
contiguous areas in northern Quebec,
wheat and oil

to all the western provinces of the

are

combined.

country

mensely rich in

Canada

every

resources

but

the

which,

the

long

in

above

.out

the

"differences

"I point

be

to

in the

question

sure,-

history

be

dogmatic

end.

in

The

the

for

certain
made

is
in

that

but its lead

one-sided.
of

each

these

however, is

that

our

cer¬

What

great strides will

dramatic

in

east

will

be

;V£>n

7
E.

A.

Germain

R.

vying with western

projects for public attention. One billion dollars is being
spent on resource development in the Quebec Far North
alone

on

immense ventures

on

which nearly

currently employed to

barest beginning.

a

-

It is

Continued

on

page

LONG-TERM

"The

article

be

commended,

and

we

glad

are

to

least

at

or

to

those

portions

23

of

his

Continued

CANADIAN

Canadian
on

CASH

Economy:
which

DIVIDEND

1959

a

PAYERS—An

Milestone

consecutive

cash

Year"

integral
the

are

commerce

and

new horizons
and trade for both the United Stated

Canada, and creates,

as a by-product, a huge
supply of hydro electric power. The occasion
was, moreover, a splendid tribute to the friend¬
ship and cooperation of two great nations, bul¬
warks of peace on a troubled planet, who share
the longest unfortified border in the world.

new

•

As the Queen and Prince Consort moved from

the

Seaway festivities on a six weeks summer
Dominion, they could see at first hand
the evidence of dynamic Canadian progress. They
tour of the

could

oil

it

see

Plains,

our

page

century. The Seaway opens broad

of

fields

in

the wheat fields of the Western

the cattle ranches of Alberta, in the

on

of

the

Western

stands of the Pacific

Continued

26

feature

of the

cover

STATE

and

MUNICIPAL

AND

Lester, Ryons & Co.
623

So.

Hope Street,

Members

BONDS

INVESTMENT

Associate

New

Los

Angeles

SECURITIES

York

Bonds and Notes

Stock

Exchange

Pacific

Coast

Exchange

Offices in Claremont, Corona del Mar,

-

30 Broad Street

New York 15

THE FIRST NATIONAL CITY BANK

BOND DEPARTMENT

M CM sent;

MEW

VOMK

15 BROAD STREET,

NEW YORK 5, N. Y.

•

Dl 4-1400

California

Bond

Net

Distributor

Dealer

To

Dept.

Teletype: NY 1-708

Active

New York Stock Exchange

Commission

Inquiries
Orders

Stock

Exchange

CANADIAN

25

BROAD

STREET

DIRECT

WIRES TO

Correspondent—Pershing St

BANK
Co.

CANADIAN
BONDS & STOCKS

MunicipalBonds

Invited

Executed

On

AH

Exchanges

FOR

MONTREAL AND TORONTO

JXjheoox Securities

■

r

NEW YORK 4, N. Y.

gouUlUXAt COMPANY

Goodbody

&

•

PERTH AMBOY

2 BROADWAY
NEW YORK

1

NORTH

Grporatio/i

Co.

MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT

COMMUNITY

DEPARTMENT

Teletype NY 1-2270
■'

York

Chase Manhattan

Southern

Brokers

securities
Block

Canadian

American

New

on

Securities

Maintained

and

canadian

1832.

Members

Markets

Dealers, „Banks

T. L. Watson &Co.
ESTABLISHED

Investment

Diego, Santa Ana, Santa Monica
Inquiries Invited

TBUTTYIHl NT 1-22*2

COBORHMAM

San

STOCK EXCHANGES

AMD AMERICAN

THE

Pasadena, Pomona, Redlands, Riverside,

OF NEW TORK

Burnham and Company
CAB4JI.




.

Encino, Glendale, Hollywood, Long Beach,

COMPANY

DALLAS

Public Housing Agency

17,

Member American Stock Exchange

Members

NEW YORK

.

IS

State, Municipal

California

of

CHEMICAL BANK

•

page

com¬

DISTRIBUTORS

HAnover 2-3700

BONO DEPARTMENT

on

page

tables showing Canadian

dividends have been paid up to 131 years.

UNDERWRITERS

Municipal

..

FIRST

Provinces, the timber
slopes, the mines of Ontario

and

Securities

Underwriter

a

statement
on

historic ceremony; .brought to com¬
maritime\ reality an - international

Housing,

State and

TRUST

give

an

and

project dreamed about and talked about for half

hearty applause to the President in this instance,

stocks

mon

telephone:

:

-

.

U. S. Government,
Public

baker, in
mercial

of the

rush

the

."

Seaway. On July 26th Queen Elizabeth,

President Eisenhower and Prime Minister Diefen-

great moderation, not to say sanity, in the outlay
public funds of the nation is definitely to

10,000 men

the work. But this is
conservative estimate that
tens upon tens of billions of dollars will be expended
within the lifetime of the present generation on iron

are

.

1959 marked the official opening of the St.

ever,

Lawrence

outgiving by the President from which
paragraphs are taken must, of course, be
regarded as essentially> a political tactic, and a
good ^political tactic. Any word or act by a re¬
sponsible public official, most of all by the Presi¬
dent of the United States, which tends to
promote

T

the

.

ranging from 5 to 131 years..

fifty

the economy from the recession of 1958, renewed
strength in the Canadian dollar (carrying it above
$1.05 in U. S. funds), striking oil in the Yukon
Territory, and crossing wheat and rye to create
a new
grain, Whye. Even more significantly how¬

last

these

situation,
events

citizens.

significant

nine will, long remain in the
memory of Canadian citizens. It has been a mile¬
stone year characterized
by a swift resurgence in

The

is
be

directions.

What is so very new to the
*

will

ahead

The contest

long.;

tainly "won't be

easy

race

the

now

re¬

not

somewhat

competition

be

can't

is

is

Nineteen

fourth, that they
by the American people swiftly
huge spending programs into law.

result,

and

distinguished list of Canadian equities, listed and unlisted,

with unbroken dividend records

salvation; and

these

Enterprise Economist

panoramic review of economic progress

a

Before the session
public had
forced the majority to shelve at least temporarily
its more lavish
proposals.
"This was an historic turnabout. It is
high
tribute to the good sense and
political vigor of

this

at

a

Economy:

achievements of the current year, followed
by tabulation of

had been under way two months, the

be

their

only

A

being advanced in Congress.

stand

will

but

of

how

west

arises

will

There

spective development it
to

of these

one

run,

rest.-

im¬

is

Copy

a

Milestone Year

a

v

;

"The American public at once and
emphatically
stepped in. By letters, telegrams, telephone calls
and personal visits to their
Congressmen, the
folks back home demanded a halt to excesses

other immediately
as

Cents

By DR. IRA U. COBLEIGH

January the majority in
Congress sponsored many schemes to plunge bil¬
lions of dollars into Federal
programs which I
opposed as unwarranted or excessive.

mining and power projects.

('

..

gen¬

to expend tens upon fens of

iron

on

I959

public statement:

mandated

'

to enact

development and in this

resource

is expected

our

were

The Quebec Far North alone is said to have

eration's

recent

a

"When this first session
(of the Eighty-Sixth
Congress) began eight months ago, a greatly in¬
creased Democratic
majority arrived in Washing¬
ton
apparently convinced, first, that there was
still a recession; second, that it was bound to
get
worse; third, that heavy Federal [pump-priming'

observer reports on Canadian opportunities

provided by tremendous, rapidly moving hydro-electric, and
steel

Price 50

EDITORIAL

Rich NaturaI: WeaIth of

Canada's

Thursday, September 24, 1959

LA SALLE ST.

CHICAGO

PROTECTION
MUNICIPAL BOND

Bank
40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

of

DEPARTMENT

America

N. T. A S. A.

San Francisco

Los Angeles

The Commercial and Financial Chronicle

...

■«; (1238)

The Security I

Brokers, Dealers only

For Banks,

markets in a hurry,

(This is under

you'll find

as

experienced
can be a

and

large

our

trading department

JR.

with com¬
facili¬
ties, enables you to get the
best possible coverage of the

hold

markets you want.

vestor,

Three

the

appeal

for the in¬

analyst

and
the
dynamic

most

the

broker.
fields

of technology today

areas

three

These
space,

—

elect ronics

New York Hanseatic

Corporation
Established

✓

Exchange

•

yield

nation's defense complex
facture
William J.

Although

,
.

which

BONDS

MUNICIPAL

those

are

actively

boast

companies

of

and

competence

a

ized

VIRGINIA

can

nucleonics
and

An

clear

H35Z3&QSh
VIRGINIA

built

a

through

space

gories:

into

broad

two

optical

though quite

LAMBORN & CO., Inc
99

WALL

belie

the

Atomic

STREET

fact

line

that

the

reaches

the

spectrum
of
industrial
technology with existing or po¬
tential
application
in
virtually

5, N. ¥.

manufacturing and
operation.
In
addition,

every

SUGAR
Raw

Refined

—

Atomic

—

instruments

havior

Exports—Imports—-Futures

scientist

government

Baird-

the

of

together.

duction

specialized

spectrochemical
instruments enable investigations
in a variety of industrial and re¬
search

situations.

three

Meter

YOU WILL FIND

—

IN

and

complex

Bank & Quotation

can

$45

per

(Single Copy

as

The

of

analyze

former

staff of 550

lating

an

alloy

of

mahy

$4)

on

the
work

basic

to

Much

of

bound

give
on

you

all

well

-

the monthly prices

listed

as

Over

Baird-Atomic
line

securities

meters

as

or

ele¬

instrument

containing

-

Counter

quota-

for

cal

User

chemical

and
production
control.
organizations include man¬

ufacturers

T

In

2-for-l

a

in

stock

split,

of

Write

or

call:

Baird-Atomic

25

Park Place

New York 7, N. Y.
REctor 2-9570

technical

of

knowhow

in

and

electrical

and

such




stock.

These

»

{INACTIVE ISSUES
J
0

submit your offerings.
Perhaps

we can

0
0

help.

1

ALBERT i. CAPLAN S CO.

*
0

writing,
is quoted at 9-9V2
(after reaching a high in the midthirties prior to the split),

&9<

number
2200.

over

of

stockholders

As

of

this

d

Baird-Atomic

The outiook for Baird-Atomic,
js

jnc

the

obviously

future

and

*

conditioned

pr0Spects

the

the

of

company's

services

products

marketed.

are

bv

areas

It

is

fairly certain, however, that these
same

of

areas

reflect

It

progress.

technology which
highest degree

the

front

is

equally

Baird-Atomic

with

experience

on

will

be

of suppliers

certain

prestige

and

in

ipw ln">f
<p aswas

A
£

accom-

the

fore-

these fields,

to

de¬
THOMAS W. L. CAMERON

Hopper, Soliday & Co.
t>

/. ^
j
Members Philadelphia-Baltimore

total,

'

i

If you can't find a
home for certain of your

to

the

p

Stock. Exchange
Cameo, Inc.

.

-

<

-•

^

Cameo

pro¬

'^swmG1*

is

"The

as

Security I Like

fields:

Best" for cap¬
ital apprecia¬

engineering,

contract work

tion.

Cameo

in

is

a

special military infrared systems;*
other areas' concern the sensing of

dynamically
growing tech¬
nical company

the- electromagnetic

of
!

It is work in this

area

of

servicing the
vast

spectrum:

wide

which has !

brought the company's backlog to:
an all-time high of $7 million.
In
number of research and univer¬
a
recent letter to
stockholders, *
sity installations.
Walter S. Baird, Chairman, and
The
company's
flame
photo¬ Davis R. Dewey II, President, re¬
meter
is used in hospitals and ported that
"while our commedical laboratories from coast mercial
instrument. lines
show
.

to coast for the determination of
the ratio of potassium and sodium
in body fluids. Such measurement

author-

actions brought the total shares
outstanding to 714,190, and brings

.

engaged

marily

for

T. W. L.

in¬

increase

INDUSTRIAL STOCK INDEX

It is

pri¬
in the

sale, and
ice of

equipment.

Cameo s

serv¬

gas

20-Year Performance of
35 Industrial Stocks

sales

_

FOLDER

ON REQUEST

lift

in-

growth, the major "part ?rease?<;^vfr
(15) times
(in backlog) ,is *rom *948 to 1958 in a continudevelopment and production*
Continued on page 36

this

N.Q.B.
OVER-THE-COUNTER

.manufacture,
Cameron

.

continued
of

world
oil

dustry.

,

WILLIAM B. DANA CO„

and

offering of 180,000 shares

an

INSURANCE

•

increase

an

number of shares

iZed

chemicals, drugs,
textiles, plastics, petroleum and a

tions.

i

energy and presentation of perti- :
nent reference data from all parts t

'

search
'

Bankers

STOCKS

n° ln J
Tlll *
^
million a year. 0
July, stockholders approved

mathematics and electronics. Bulk:

a

spectrophoto¬
analysis of

ac-

projects reapplied sci-,
...

LIFE

to

?n.c

optics, photophysics, mechani¬

as

the face of

manufactures

infrared

Investment

and

collection
duction

materials used extensively in re¬

those "hard to find"

The

of

sales

™

-

a

+,

Atomic's Tre-,.

-

&

Broadway,N, Y. 6 COrtlandt7-5689

engineering work is}
stock — at the right
done under prime or subcontracttime. I believe
for
the
government.
Programs < l*1?'
Cameo, Inc. .fulfills these
I
recommend
utilize the company's unmatched . criteria
and thus
search

the unit.

publication will

on

and

Baird

of the firm's
This

company's

'v

as

series of indicators

expects

company

plishments,

Baird-Atomic

ence-

alloys

simple

half

nearly

60 elements, with the
percentage concentration of these
elements
read
directly from a

year)
—

ores and

combinations

ments.

Record
(Only

for

metals,
analysis

Engineering

sign development, and application
is the research and engineering
division.
In
this
department,

the

for test of

,

a

based

.

tivity in product and system

The

Grating

111

outstanding.

that

.

and

Focal point of

Spectromet — are used
throughout the metals industry

THEM

used by

'

Research

company's
Spectro¬
graphs unit enables analysis of
a
wide range of elements.
The
more widely-known Direct Read¬
ing Spectrometer and a smaller
-

Tokyo, Japan
Brokers

Sept.

in
the
semi- of growth potential will continue
Test devices are to.provide the stimulus for Amerof transistor cir-Tea's '• engineering and industrial

field.

design

of

Yamaichi Securities Co., Ltd.

reported

company

York, Inc.

Affiliate

facilities

in

'ity control.

Equipment

Baira-Atomic's

unit

types ;of

major

.

QUOTATIONS?

sells

and

makes

cuitry and in inspection and qual-

field.

NEED "HARD TO FIND"

the

where

transistor test equipment

used

Optical

1958,

engineering laboratories and pro-; today

basic

conductor

own

pro-

body regions

or

half-dozen

some

of progress

in his

or

Baird-Atomic

the

analytical
and
investigational
tools to forge a continuing chain
DIgby 4-2727

frequently

organs

separately

industrial and medical researcher,
the
college laboratory
and
the

Liquid

This

yides more on the data than beuseful absolute information

process

provide

ap-

two organs or

in

which

regions,

entire

NEW YORK

atomic energy

regions

of New

195.9

ended

year

nrirc Lp !nrJ2i
.

analyzer enables study of the relative clinical
behavior of two organs or body
body

Baird-

across

.

distribution

and

write

Yamaichi

S£nzStffSXi s

accurate- measurements
of the ratio of radioisotope uptake

these allgroupings

accurate,
product area

fiscal

The

used,

are

tinuous,

and

information

or

.

plication range from the simplest
detection device to a sophisticated
medical
ratio
analyzer for con-

atomic/electronic instruments. Al¬
inclusive

current

Call

1954

(Estimated)

the

then

colleges

Products for

cate¬

equipment

Such units

.

company's diverse product

falls

line

STOCKS

recor.d sales of s6-7 million, with

and universities
where work with isotopes, accelerators and reactors is in progress.

these fields.
The

in

and

branch offices

|or^"fs g^are orf ^^'shares
CeniS a Snare On Z«5D,Z 1*4: snarc^

ssa«L- research laboratories
sa&na&ec
panies, in

25-year span

a

sources.

our

JAPANESE

1949

oroducts

tions from isotopes and other nu

ex¬

technology
— has
position
Of
leadership
pioneering in each
of
and

—over

Mobile, Ala.
Direct wires to

1939

2,394,000

rnunt
count, nmnlifv nnrl analvyp radia
amplify and analyze rarlia-

of

record

three.

all

Inc.,
Cambridge,
Mass.,
which
operates effectively in electronics,

call

RICHMOND,

in

few

above,

singular

a

include instruments

ception, however, is Baird-Atomic,

CAROLINi

SOUTH

to

achievement

CAROLINA^—*

NORTH

noted

areas

point

_

New Orleans, La. - Birmingham, Ala

1944

—

8,000,000

30,

NY 1-1557

Securities Company

which detect,

comoanv's atomic

The

ment in

10,126
955,424

Products

Atomic/Electronic

respectable record of accomplish¬
one or two of the special¬

of

WEST VIRGINIA

Hflnover 2-0700

Year

140,922

In

Exchange

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

For

$

York Stock Exchange

Members American Stock

marketing in the

—Sales-

through

principle.
Such instruments are
used
primarily for detection of
radiation from planes, missiles or
other objects.

Burke, Jr.

most science-based stocks

traded

and

Members New

field.

development and manu¬
of devices
utilizing this

design,

of

investor.

for the

sales

with

Steiner, Rouse & Co

It is interesting to note the cornpany's steady increase in sales in
has enabled the organization to relation to expansion of product
make major contributions to the line and markets over the years;

the

for

Bought—Sold—Quoted

of Cameo, Incorporated—Thomas W.

to come,

are

Louisiana Securities

J.

The company's vast backlog of
experience in infrared technology

n

sources

cases

devices, with indication

that additional orders

represent
potential

Cities

such

for

owledge
which in turn

SAN FRANCISCO

to Principal

Wires

Private

k

CHICAGO

•

BOSTON

PHILADELPHIA

the

nator:

promise
of
products,
processes
and

Teletype NY 1-40

WOrth 4-2300

com¬

new

Broadway, New York 5

120

all

—

denomi-

mon

1920

Stock

American

energy
have
a

Member

Associate

atomic

and

William

—

post-operative shock and during
"L. Cameron, of Hopper, Soliday
progress of certain diseases.
& Co., Philadelphia, Pa. (Page 2)
A major area of emphasis in the
■
company's optical equipment line
is made up of optically-oriented 0f
special systems and devices for
products for navigation and track- government programs."
ing, among other uses.
BairdAtomic is a major supplier of sexFinancial History
tants to the government and, at
Baird-Atomic, Inc. is a corpothe request of the Department of rate entity comprising Baird AsDefense, developed
a
new-type sociates (the name of the founding
periscopic sextant for use in cer- company), Atomic Instrument Co.
tain military aircraft.
The com- (acquired
in
1956)
and
four
pany is currently in the midst of wholly-owned subsidiaries whose
fulfilling a $1.6 million contract activities are concerned primarily

Baird-Atomic, Inc.

plete Over-the-Counter

in

Inc.

Burke, Jr., Vice-President and
Treasurer, May and Gannon.
Inc., Boston, Mass. (Page 2)

security referred to herein.)

any

is extremely important

Vice-President and Treasurer,

combined

system,

offer to buy,

BURKE,

J.

Baird-Atomic,

circumstance to be construed as an offer to sell, or

May and Gannon, Inc., Boston, Mass.

private wire

nationwide

Our

no

solicitation of an

a

WILLIAM

big help.

Alabama &

advisory field from all sections of the country

participate and give their reasons for favoring a particular security,

broad range of active

a

Participants and

Their Selections

which, each week, a different group of experts

in the investment and

to

it's important to you

When

Week's

This

Forum

A continuous forum in

Call "HANSEATIC"
reach

Like Best

Thursday, September 24, 1959

National Quotation Bureai
-

Incorporated

46 Front StreetMew

York!, N. Y.

Number 5884

Volume 190

.

.

The Commercial and Financial Chronicle

.

(1239)

INDEX

A Deferred Free Gold Market

llEHTHM

& &

Means

Still Higher Price

a

CANADIAN
Article

By REID TAYLOR

1959

Mitchell, Hutchins & Co., Chicago, III.
The inevitability of a
author to fiat aiooey

"inevitable

crisis"

that

policy of instituting

war

tion. Other

cognatic subjects covered are:

sold to "anyone else even
that

Sherman's

(4)

our

(Table I,

Canadian Economy:

investment

rush-in ...visit

opportunities

and, by way of documenting the
tabulation7 of the Canadian hanks and

a

to

10

(Table II,

years

CO paper dollar

your

obsoletes!

page

investors*

to

for cash from

...

to

Obsolete Securities Dept.

resump¬

99 WALL

encour¬

STREET, NEW YORK

Telephone: WHitehall 4-6S51

Articles and News

Pag«

more"; (3) denial

...

The

Canadian

—Ira

.

set an arbitrary price for this metal.

no one can

the

19) and from 5

page

(2) injustice in not allowing gold to be

if they offer to pay

"The

page,

discusses

khd COMMNY

mmmmm

securities

presented, includes

131 years

gold price policy keeps a strategic metal away from

and (5)

us;

Year";

Canadian

in

cover

27), along with other data of interest

post-civil-

higher gold price can cause inflation when there's no redemp¬

a

tion;

John

free gold market as a prelude to

a

and permits inflation;

ages

emulate

the

OPPORTUNITIES

companies which have paid consecutive cash dividends from 10

Mr. Taylor urgas we not await the

we

INVESTMENT

on

Milestone

a

views

instead at a free gold market and to famously

but

starting

inherent

rise in the price of gold is ascribed by the

expedient government policies.

3

U.

Economy: 1959

Milestone Year

a

Cobleigh___

^

____

in business, morality and frugality
chart in the individual, so characteristic
During the early,
showing the price of gold in Lon¬ of that age!
don since the year 1250 in shil¬ part of this period a goldsmith's
word
was
good. A mere gold¬
lings per fine
smith's receipt for gold was hon¬
ounce. To any¬
ored everywhere as money. Dur¬
one
who will
take the time
ing the latter part of this period
the
Bank
of
to
England - operated
weigh and

Cover

__

Rich Natural Wealth of Canada's Ungava
—Edmour Germain

The

Area
___Cover

The Bank for International Set¬

tlements

has

compiled

a

independently of the government.
Pound Sterling attained the
highest degree of respectability

consider, this
h i cally

g r a p
and

in

ent

age.
Then

position of

our

in

quired

pres¬

the

•

higher

Reid

thus

future.*

Wilde

Oscar

I.

cover¬

destruction

England

United

the

of

of

incurred

she

States

once

at its pre-war rela¬
tionship to gold for 12 long years.

of

the

It took

credit and

show

nothing." This chart portrays
constantly increasing VALUE
of gold over seven centuries of
war
and peace in spite of con¬
stantly increasing production of
that much sought after metal. The
PRICE of gold in terms of manmade fiat money is quite another
the

dation

creased value of gold

gold

moves

table

stable.

When

there

is

occurred

quite

a

which
once

and

very

years,

down

from

an

extended

the

price

to

1700 to

'first time in

of

700

more

years

6

Electronic Guidance—Ira U. Cobleigh.l

7

was

of the chart

may

Air
'

9

1

'_

not

.

a

L

"

'

'

'

.

1

S. Foreign Trade

13

Ahead—Roger W. Babson__

The Construction Outlook—Walter E.

empire
state oil

Hoadley, Jr.

15

Businessmen in Politics—Lawrence I. Wood______

16

Interest Rates, Bond Market and the Business Cycle

20

Corporate Working Capital Up i Sharply, Reports SEC

12

No Short Cuts to Treasury Debt Management Emphasized by
Federal Reserve Bank of New York
ABA Study Finds No Support for Theory That

Spur

14

___

Rising Prices

Growth

National

Stock

27

Exchange Formed in New York City

38

Eiox

in

maintained

be

adherence

the

Regular Features
As

We

Bank

See

and

It

(Editorial)

frugality

Businessman's

government

gave

indicates

chart

clearly that this is only the
stage of the takeoff of the

.

35

Bookshelf

8
8

''

Investment

Recommendations

Election"

the

50

that the price of gold is
"just right" because it now has
risen to this line of trend, as has
been stated so confidently in the
bulletin
of
one
of
our
leading
banks, reminds one of the fantas¬
tic dream of King Canute.
It dis¬
regards the tides of price perform¬
ance
over
many
centuries
as

the up¬

Continued

NSTA

page

31

Notes

Our Reporter on

Reporter's

Public Utility
Railroad

.

.

.

and

*

Offerings

48
25

You—By Wallace Streete--

State of Trade

— ____

Security I Like Best.

The

—

and Industry.

—

Washington and You____.
not available

*Golumn

ddrr[ddr|1
H LI L H II L U

ctflmfc

2

this

Industro Transistor

week.

CHRONICLE

FINANCIAL
Reg.
B.

S.

U.

DANA

TELEPHONE HAnover 24300
Albany
Nashville




Stock

York

Boston

Newark

»

TELETYPE NY 1-5

Chicago
Schenectady

Glens Falls

Worcester

to

DANA

25,

1942,

•

SEIBERT,

President

SEIBERT, Vice-President

Offices:

Chicago 3,m.

135

South

matter

La

Salle St..

(Telephone STate 2-0613).

*

S.
of

Pan-American

in

$65.00

per

year,

Dominion

of
Canada,
$68.00
per
Countries, $72.00 per year.

Other

Otber
Bank

Note—On

the

year.

Quotation Record—Monthly,
year.
(Foreign Postage extra).
account of

the fluctuations

rate

In

foreign

of
exchange,
remittances
for
subscriptions
and advertisement*

nv^st

made

be

In

New

York

on

request

funds.

1

Exchange PI., Jersey City 2, N. J.
J. C. HE 2-8570

N. Y. Dl 9-3424

Teletype JCY 119
Direct Wires to:

Publications

and

$45.00 per

Prospectus

Capper & Co.

Subscription Rates

Union,

Refining

Febru¬

at

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

Thursday, September 24, 1959
Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue —market quotation
records, corporation news, bank clearings,
state and city news, etc.).
Other

second-class

9576

GEORGE J. MORR1SSEY, Editor
WILLIAM

as

Western States

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

COMPANY, Publishers

Park Place, New York 7, N. Y.

CLAUDE

Exchange

Reentered

Patent Office

REctor 2-9570

ST., NEW YORK 4, N. Y.

Sea View Industries*

Company

25

1868

Speedry Chemical*

Copyright 1959 by William B. Dana

WILLIAM

Founded

Sports Arena

4
52

The COMMERCIAL *nd

glUllild

Spencer Trask & Co.

Extrudo Film

16

Published Twice Weekly

specialized in I

St. Louis

40

Corner.

The

San Francisco

36

-

Security

Chicago
Cleveland
Dallas
;
Los Angeles
Philadelphia

51
-

Securities

The Market

Direct Wires to

24

Governments-1
Report

Salesman's

Teletype NY 1-1825 & 1-4844

5

Securities-

Prospective

inc.

40 Exchange Place, N. Y.

33

Securities Now in Registration,

Securities

request

Mackie,

HA 2-9000

15

__.

Observations—A. Wilfred May

Our

&

32

News About Banks and Bankers

•'

on

of Current Business

Funds

on

Singer, Bean

12

Activity

recent

New

Prospectus

Einzig: "The London Stock Market Until and After

Mutual

say

Organization

Certified Industries*

8

Coming Events in the Investment Field

Indications

be had from

Members

Wenwood

Cover

_

Stocks

Insurance

Dealer-Broker

to

Corp.*

the

gold price con¬
tinued on through this trend line
of
increasing value creating an
area
above equal to that below.
To

Corp.

First Lumber

gold price to higher levels, for in
every previous instance of which

stabilized

25 BROAD

J.F. Reilly & Co., Inc.

Capital Spending Increase Reflected in SEC—Department of
Commerce Survey
IS

most

of

between

to expediency.

writer.

have

alaska oil

Transport and the Mass Market—Sir William P. Hildred 10

\

U.

Jacobsson

there is record, the

toward

there was

For many years we

cary chemical

World Inflation Has Ceased and Other Observations

11

period during which

gold

because

gap

projection of this trend of shown by the Chart.
value.
How graphically this long
It
disregards
Newton's
Law
period of stabilization portrays the that to
every action there is an
old Victorian type of honor and
equal and opposite reaction.
It
frugality in government, integrity
disregards the present position of
our
economy in
the long swing
copy

Selection Factors to Consider in Drug Industry Investing
—John F. Van Deventer

News—Carlisle Bargeron

1931, for the

and it did not move up to

*A

associates

could

ward

the

acoustica
5

From Washington Ahead of the

tions.

Coming

that

initial

by simply bisecting the
bottoms of the fluctua¬

and

tops

could

strict

Likewise

trend of value is

termined

„

inevi¬

was

brings this out in

manner

honor

way

the longer term. An up¬
easily de¬

over

ward

4

Stocks—Shelby Cullom Davis

,

.

the
upward projection of the trend
line of value and the stable price

higher levels, indicating the value
of gold to be continually increas¬
ing

in¬

in terms of

debt

a

widening

ever

price
regularly

persistently

always

Values in Insurance

paid must be written down.

striking

these

1700

because

The chart

price goes to the other extreme.
to

the

finally did in

readjustment

not be

deterioration in such re¬
spects, gold being a refuge from
the follies of men, is more per¬
sistently
sought
after
and ~ the
1250

Policies—George W. Wilson.
The

______

This

general

From

A Better Future for Canadian-U. S. A. Trade and Other

to

Says Chart Shows Inevitability

up

gality and morality are the order
of the day there is only a normal
demand for gold and its price is
and

liqui¬

1930

1931.

Clearly
of

debt

and

admit

must

her money. This she

as if traced by a stylus
recording the characteristics
of
each particular period.
When na¬
ture's laws are respected and fru¬

but

1929

of

she

that

and

and down

waves

crisis

her that her position was
untenable, that the Pound Sterling
was
in
effect already
devalued

thing.

low

chemicals

With the help of the

off.

the
price of everything but the value

PRICE

speedry
3

____

re¬

of her pound

-said: "Nowadays people know

The

___

maintained the precarious position

Taylor

'for gold in the
near

Taylor

—Per
the

came

War

pay

credit

price

and

debts than she had the ability

more

to

world

minimum of gold

a

World

economy

long term
cycle and fore¬
casts a much
a

the

over

man¬

startling
ner

all

most

a

—Reid

Still Higher Price

a

The

reveals

chart

A Deferred Free Gold Market'Means

Philadelphia

Washington, D. C.

Salt Lake City

Denver

Albuquerque
San Francisco

Los Angele

3

4

The Commercial and Financial Chronicle

(1240)

for Canadian-

but

they

are

crescendo

of

criticism
that

STEEL PRODUCTION

relationship
indicative of a rising

S.-Canadian

U.

good

US. A. Trade and Other Policies

Thursday, September-2.4, 1959

serious breach in the generally

no

A Better Future

...

in

of

the

and

open

the

S.

U.

I

CARLOADINGS

vigorous
suspect

there

future

EZECTtilC-OUPPUT,

will

RETAIL

TRADE

FOOD

be

PRICE

PRODUCTION

INDEX

more

Assistant Professor of

Transportation, Indiana University

of this sort of thing and

AUTO

U.

By DR. GEORGE W. WILSON*

might

BUSINESS FAILURES

S.

the
well get used to it,

as

understand

Formerly, Economist, Canadian Board of Transport Commissions

it, and
try to be reasonable in answering
legitimate
Canadian
grievances

Dsnairfiart economist now teaching here

and

provides

Informal, candid

an

things from

try to understand the reasons for them, to be reasonable in our
and to maintain a discreet

answers,

plaints are made.

ill-founded

silence when

cultural inroads;

(3)

participation

ownership

you

would

reflect

simply

are

or

"over-all"

of the

among

the key areas

relation

cultural

social,

relations

can

The

(2)

Size differentials.

living oeside

easy

U.

which

S.

impressions of

the

you

predominant

seem

somewhat

Canadians.

among

somewhat reluctantly, I
must report encountering consid¬
erable open criticism of the U. S.
by
Canadians
when
I
visited
Ottawa
two months ago.
There
First,

general vision
which

give

the

political

and

eco¬

nomic.

involv¬

be¬

sides the

one

one

from

expect

tractions:

"Industrial output and employment levels
declined further
August and early September as the impact of work
stoppages
in basic metal industries
spread. Consumer and business demands
in

Key Sources of Friction

in hiring key

and

(despite having lived about half
of rny adult life in the U. S.) I

nations
aspect

national summary of business and financial
conditions
appeared in the September issue \of the Federal
Reserve
bulletin is both timely and
significant, as per the following ex¬
which

attempt to lay bare
of friction.

now

me

not

were

generally maintained at advanced levels and prices of some
materials increased.
Commercial bank loans continued to
expand rapidly.
Bond yields rose and common stock prices
basic

It is not

neighbor who

a

can

relations

The

hear

worst enemy.

Let

personnel; (5) purchasing policy of materials used in joint defense;
(fc) our ignorance of Canada, (7) thwarting Canadian-foreign policy.
Trade

com¬

may

(4) denial of

alleged political interferences;

opportunity for equity

that

Canadian resistance to our

(2)

specifically;

policy generally and

You

"best neighbor"

your

your

com*

(1) our trade

Some of the areas covered ares

carping

or

made.

are

INDEX

silence

discrete

a

ill-founded

plaints

countrymen. In detailing the bases of the criticisms, he advises that
we

maintain

when

directed at us by his

account of the rising crescendo of criticism

ing

COMMODITY PRICE

the reasons for

do most material

ger

declined.

and better than you."

not

only

which
even

things "big¬
This is

"Production:

more

erally

it

is

Thus,

true.

and

sulted

Canada's substantial achievements
either

do

not

stand

country has of
other will

condition

specific
reasons
for
the
growing volume of criticism con¬
centrated in June which we might
as well
get out of the way before
getting
to
more
fundamental
points.
were

re¬

spective trade
policy. In¬
deed, in per¬
haps ho otherof

area

eco¬

:

'First, the visit of the Queen
usually rekindles the warmth for
Britain, the Empire, etc., for many
people which often takes the form

nomic

signifi¬
cance, has the
political,
so¬
cial

tural
been

Dr.

cul¬

and

G.

W.

Wilson

impact
great

so

of

certain

at

sneers

"former

colonies."

in international

as

trade. Despite the proofs advanced

of

Then, too, the opening
St. Lawrence Seaway not

the

only

overly sold as too much
by Ricardo and J. S. Mill of the syrupy
"togetherness," which
universal benefits to be dervied caused
a
reaction, but also re¬
from free trade few countries at minded Canadians of 50
years of
any time have paid much more U. S.
"heel-dragging" and Con¬
than lip service to it.
At the gressional submission to powerful
present time, though strong senti¬ lobbies despite the importance of
was

ment exists in favor of free

trade, the project to both our nations
probably not occur except but especially Canada.
within relatively restricted areas,
At the same time the oil, lead
for the large power blocs intend and zinc
import quotas were still
to use and are using the realm of
rankling; water diversion into the
international trade as a political
Chicago sewage system from the

it will

instrument

in

the

cold

and

war

protectionist pleas remain

rather

strident.

Many examples could be
cited but the crucial point is that
trade relations cannot be under¬
stood in isolation from other types
of relation.
Thus to understand

Great

by

Lakes

"indifferent

were

hackles

and

vice

A

U.

S.

versa.

Canadian Views the LJ. S.

all

do not purport
Canadians nor

the

typical view

I

the

Canadian"
animal

born

speak
to

of the

for,

exists.

visit."

give

been

strange

formally ', educated
in
having taught
Canadian
University and

a

♦An

School

address
of

Service

by Dr. Wilson before tbe

Banking

the

at

University

Wisconsin.

of

British

to

TV

entertainer

"take

million

in

thing

a

like

that"

reactions

and

etc.,

cause

innocent

bear

the

brunt.

The

against

upshot

of

these

events

background

a

of more
grievances and atti¬
tudes caused, I think, a certain
amount
of
pent up
anti-U. S.

fundamental

sentiment to

become

specific

is

more

vocal.

will

cause

events

Complete Investment Service
DEALERS

*

DISTRIBUTORS

170.

have

national

no

extent

hero,

of

basic

"In

able

This
of

some

Canada

are

has

effort

well

"hewers

of

water."

and

are

"Construction:

most

our

by

Ministers,

Sir

have

more

and

Laurier,
Century
Perhaps he

arsons,

ties,

more

murders,

somewhat.

This

and

rapid
pains and

growing
backward

nations

growth

critical of their

come

create

has
a

paid

a

or

be¬

maintain

be

If

split

would

North

at

a

this

of

division.

serious penalty'to national
unity and identity. Rail lines have

to

a

be

built

wilderness

often

till
'

w

11

m

%s.y£\

1

yet have

t

/

nental

•

Members

;

-

New York Stock

radiotelegraph

Exchange • Pacific Coast Stock Exchange
Midwest Stock Exchange • American
Stock Exchange
Honolulu Stock Exchange •
Chicago Board of Trade
and other
leading
commodity exchanges

circuit to Honolulu

SAN

•

41

IOS

ANGELES

•

NEW

YORK

Offices Serving Investors




CHICAGO

reaches

paths to

to

of

take

avoid

the

Canada does not'

high-grade transconti¬
highway.
Trans-Canada

Airlines had to be created by gov¬

policy. Few rivers flow

various segments of the economy
receive subsidized freight rates to
permit
inter-regional
exchange.
uneconomic

protection

to

domestic industry has proven es¬
sential since we cannot exploit the
economies

of

the

mass

Continued

on

market.
page

the

from 5.1

in

seasonally
July.

Retail

sales in August remained near the ad¬
previous three months and were 7% larger
Sales at furniture and food stores were some¬

of the
ago.

Crop

Credit

and

prospects

improved

further

during

Au¬

Reserves:

Total

commercial

bank

credit

rapidly,
reduced.

Further gold outflows and an increase in
in circulation absorbed reserves -over the period while

were

supplied

Government securities.
.

by

Federal

Required

Reserve

reserves

purchases

of

U.

S.

declined somewhat.

'

"Security Markets:
From/ mid-August
to
mid-September
yields on Government securities in all maturities rose
sharply to
new post-World War II
highs. Market yields on 3-month Treasury
bills rose above 4% and
yields on long Treasury bonds averaged
4y4. In mid-September discount, rates at Federal Reserve
Banks
,

were

and

raised one-half
percentage point,to 4%.-Yields
State and local government

August, increased sharply.
August, and then declined

on

corporate

bonds, after declining in early
Common stock prices advanced in late:
in

the' first half of September

to

the

lowest level since mid-June."

east and west—thus real transpor¬
tation costs are
very
high and

Some

FRANCISCO

vast

forced

a

ernmental

&Co.

Private leased

devious

artificial border.

Dean Witter

'

over

and

amount and

5.5%

ending September 9.
currency

the only one. However, the result
of the economic mistake is to im¬
pose

to

seasonally adjusted money supply declined about $1.5 billion
rise of around the same amount "in July. ; At the end
August the money supply was about 3% larger than a year ago.

reserves

mm.

V

year

rose

"Member bank borrowings from the Federal Reserve
averaged
excess reserves $485 million over the four weeks

that economic choice is not

But

the usual seasonal

$975 million and

simply

south

in

by

The

north-

proves

partly

f ollowing a

economic

dictate

million

finance, and State
factory workers, reflecting
higher paid manufacturing industries, declined
Unemployment decreased about 320,000 to 3.4 million.

level

a

"Bank

America

all,

52

while

distinct identity.
It
is) the height of eco¬
nomic illogic to split North Amer¬
to

to

offset

changed little in August.
Loans continued to expand
holdings of U. S. Government securities were

and

a

east-west.

million

influences,

foodstuffs

(and

was

one-half

strike

remained at earlier reduced levels
reflecting mainly
continuing large supplies. Consumer prices generally rose further
by .3%, from June to July and the total index was .8% above a
year earlier, although retail food prices were 2% lower.

growth

nation

of

"Commodity Prices: Prices of basic materials, which were
relatively stable during the first month of the steel strike, began
to rise again after
early August. Prices of livestock and other

high price to

separate

about

result

a

an indicated volume of 117% of the 1947-49 average,
only
point below last year's record harvest./ Output of livestock
and products has increased further this
year, and total agricul¬
tural production is estimated at a new
high.
/./-///J"'

which is destined to continue.
It
should
be noted
here
that
Canada

small

a

one

superiors; they be¬
come cockier, more
boastful, more
nationalistic, etc. Canada is thus
"feeling her oats" in the wake of
economic

and

Seasonally adjusted employment in nonfarm

decreased

as

"Agriculture:

mate economic

unprecedented

construction

gust to

proxi¬

more

residential

higher.
Dealers' deliveries of new autos reached the high¬
August rate since 1955 and stocks dropped sharply. Trade in
most other lines declined
moderately.
'
'

goes

they

in

est

the

infant

as

giow

above

what

trappings of modern civili¬
zation, than in the past.
with

or

building in August were not fully offset
highway and industrial building activity.

Market:

"Distribution:
than

other

But

decline

less than

was

vanced

rapes

all

at

adjusted unemployment rate

be¬

highway fatali¬

more

neurotics

a

work stoppages in

longs to the 20th Century. How¬
ever,
Laurier's prediction is in
many respects being fulfilled. We
also

the

increases in employment in
construction, trade,
and local government.
Earnings of

Prime

should have said that Canada

from

reached

commercial

mid-August,

Wilfred

Canada."

to

16%

stocks

The

further gains in
"Labor

announced that the "20th

belongs

in

establishments

industrial

famous

down

dealers'

put in

further

decrease

whose future would appear
to surpass even that of the U. S.
of

were

when

seasonally adjusted total value of new
place in August was maintained close to the
revised peak annual rate of about $56 billion reached last
Spring.

power

One

maintained

construction

inevit¬

drawers of

an

July

the new record levels reached
by mid¬
Production of paper, textiles, and other nondurable mate¬

Some

wood

in

rials and of most construction materials has also been at

is fast

We

industry, assemblies

reached

New model

midyear levels.

certainly

the

been

year.

growing up.
by dint of prodigious
beyond the stage of

now

centered

cbangeovers reduced assemblies further
early September before an upturn developed.
Output of most
other consumer goods, including
apparel and household products,

complaints.

But
We

for

of

in

Civil

no

auto

rate

level.

record

of

successful.

accounts

industrial production were

metal

the

advanced

an
inferiority com¬
plex, and it is only normal to
enjoy criticizing the foibles of the

more

re¬

was at 12% of capacity, as compared with 42 in
July
90 in June, and this rate continued
during the first half of
September.
Some industries fabricating metal products began
to curtail activity in August.

These differences create in Canada
somewhat

August

and

Robber Barons.

even any

in

production

The U. S. is a big,
bustling neighbor; Canada
is small, self-conscious and rather
calmer or perhaps "duller."
We

War, not

3%

strike,

1958.

in

function

a

lesser

a

declined

manufacturing and mining industries as the
which began on July 15, continued and additional
stoppages developed in nonferrous metal industries.
Steel ingot

brash,

wisdom

*

to

August declines in

billion;

$32

billion

basically

and

had

BROKERS

have

you

about

production

average, as compared with 153 in July
in June.
Despite a marked curtailment in in¬

electricity in August, unusually hot weather
slight increase in total utility output to 276%

a

primary

steel

temperament.

ica

*

is

$441

was

This
size

was

a

parties frequently

These

UNDERWRITERS

people;

GNP

yours

a

Innocent remarks often

third

Eastern Canada and

worked in Canada's Civil

the

and

Yankees
etc.

Western

Queen's

the

generally true) this
large amount of antifeeling. "Imagine telling the

caused
U. S.

such

in

lead¬

was a

holiday"
from Canadian TV.
Though not
directly involved (and though her

having

Yet,

the

the

to

raised

forced

no

Canada,
in

This

statement

for

"average

indeed,

reared

and

to

even

But

ing Canadian TV personality re¬
marking on a nationwide U. S.
TV program that most Canadians

was

of

Minister.

most sensational event

which

has

being protested

was

Prime

our

U. S.-Canadian trade relations we
must
first
examine
the
vision

Canada

17

Our

Industrial
1947-49

of

use

in

"The

in com¬
parison with U. S. or require U. S.
assistance to complete.
We have
up

N

the

1947-49.

.

the

of

peak of 155

a

dustrial

of

some

149%

to

typical U. S. boast,
in itself, but it is
annoying because gen¬

a

rankles

Nationwide Bank

Clearings 8.5% Above

Bank clearings this week will show
a

year

an

1958 Week

increase compared withr

Preliminary figures compiled by the "Chronicle,",,
telegraphic advices from the chief cities of the
country/
indicate that for the week ended
Saturday, Sept. 19, clearings from
all cities of the United States
from which it is possible to obtain?'
weekly clearings will be 8.5% above those for the
corresponding;
week last year.
Our preliminary totals stanJ at
*27,411,274,879
based

ago.

on

34
.

'

Continued

on

page

38

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

.

jl

BY A.

WILFRED

•

I

\/-

1 he
•

J

•

B

in

^ '

V alues

♦

I nsuranee" brocks

~Ci

hedge, ' better than

MAY

-

value and
with

the

1

o

Vi

t

o

h i

o

k y,

r~"

ters

|i

omission of

cales

n s

of

Chairman

on

to

and

his

ness

to agree

to

cedure

College's

This

verted

gym¬
nasium
to

Flushing
the

by

present

quarters
the
banks

is

it

of

the

blown

City's East
River, the Se¬

to

such

Wiltred

A-

treated

May

as

or

stocks—though not

good

as

would

will

be

be

Solely

ef¬

clear

a

and

inter-related.

are

Era

High

It

is

also

of

and pay

This is

est

Insufficient

President's

his

at

well

ments—even

haphazard
confer¬

press

unofficial state¬

as

the

tegically erroneous in unwitting¬
ly easing
the
Western
Powers'

excellent
document issued Monday by Wal¬
ter
Reuther
and
the
group
of

task of

AFL-CIO

true

demonstrating the Soviets'

leaders

who

with

met

the Premier in San Francisco.

colors.

Good Manners Confined to U. N.

crude

inflexibility

stockholdings,
investor is ultimately,
immediately, interested in
dividend returns, let us examine

Since

by

Likewise in his pleading for in¬
trade—in
his
article
in

creased

behalf of co-existence in the quar¬

terly Foreign Affairs, in his series
of

articles

in

the

dead right. Free China constituted

Philadelphia
Inquirer, as well as here in his
United Nations appearance — has

the

he

proving

strategy

our

Premier's

sole

judgment

butt

in

his

re-voiced

the

platitudes

to

long address here ("it is high time which a response is so difficult.
He put it thus before the Gen¬
that the United Nations, too, act
the

all

way

nations

deal

with

a

that

is, carry it out").
forsaking the horse¬
play and badinage that he has
been
reserving for all "whistle
Stops" ("you labor unionists are
only capitalist lackeys") his more
dignified and subtle soft-sell of

corpse;

Otherwise

his

causes

before

ering forum

this

extremely ef¬
fective propaganda. On the road,
Menshikov

in

is

charge of smiling.
Particularly difficult to debunk
publicly is the voluminous Soviet
Declaration which they distributed
'

here,

elaborating

their

proposals

the disarmament question.

De¬

picting the horrors of nuclear

war,

on

it

concludes

Great

cial

by

calling

"which

Powers,

the

on

bear

spe¬

responsibility before the

tions

for

universal

na¬

security,

to

proceed jointly and without delay
to

the

and

implementation of general

complete disarmament." How

disabuse
are

the

offered

small

the

nations,

bait

the

of

various

artificial

development

any

Of course,

ied,

doing.

the

is

Communists who want peace,

are

their

genuine,

var¬

their

of

stocks?

the

the

income and dividends of property
the

insurance

in

10

has

been

a

h[s

Cullom Davis

•

™

A

condi-

e

ago

choice

term

of

,

estor

an

investing

in

bonds

government

when

general
general

much

inflation

under

take

us

1948-50

vears

not

investment

Let

companies.

last

here

business
these

growth factors

msurance

Does

flourish

,

,

ad

yielding

+^arAPlgh Interest Rates— tax exempt bonds yielding about
bonds yielding 1%, medium-term

panies.

1 Vi %

and

industrial

stocks yielding about 7%. Those
and casualty, to which we address were
the days, you may recall,
ourselves) are large investors of when "no major war has ever
As

financial

institutions

ended

without

a

drastic

postwar

they benefit by high interest rates, depression," when "lon g-term
Since they are in the main short government bonds yielding 2 /2%
and
intermediate term bond in- will
never be permitted
to sell

they

vestors,
their

as

benefit

bonds

proceeds

increasingly

mature

and

reinvested

are

below

par,"

the

more

when

are

•

pressing Laos and murdering Ti¬
betans. They want to sell us
that

we

goods

already getting satis¬

are

factorily elsewhere.

There

host of difficulties in

trying to do

business

with

economy,

including

on-and-off"

ing

for

ends.

the

a

"turn-it-

technique, and dump¬

international

And

are

state-controlled

a

our

political

extension of cred¬

its, whether governmental

or

pri¬

vate, is unthinkable.
But,

in

as

debate,

own,

is

the

improved
to

countries
an

profitably.

disarmament

technique

portfolio

50%

of

well

as

absolute must!

than

more

in

and

some

cases

''the

labor

fre causing many other
a Profitless
when

prosperity,

to

property

companies?

Not

,

}infu®.1to rise and cause bond pnces
°Haedees
admit
not atwe

are

?

the most attractive of in¬
vestments. Who would not prefer
to „hit it Qn the nose?» Hedges
ways

little bit like the girl next

are

a
door

wjlom

we

insurance

directly,

it

is

ba£a"sa
tjL

.

n

fornpteteTy chlnged
lone—

never

married.

^n^herweak
p

points

surDriseS

And

vet

But

Research

as

uncovers

cheaper

and

sprite

„nrnri(!P.

.

p„n

what

oortion

of

i<?

qafp »

{+

«Diav;nfr

anH

at

funds'?

Hn

Brokers, dealers and Financial Institutions

methods of production,
help to keep inflation at bay
—and that helps insurance com—
panies.
Nor does the Cold War

brighten
it

But

the

does,

insurance

sad to

short-term

We^

have

iPaet

Insurance

outlook.

induce

say,

in

Is

Broadway, New York 4, N. Y..»

HAnover 2-0433

NY 14722

/
[

our

What

we

through and confirmed by

jng

Hie

sjimne>

,ik

old

insurance
shoes-

pleasure,

mum

wreak

they also do not

nain

heroic

v

'

Compares Decade's Experience

?Let

us now
les

a

look at
the

of

some
monied

25

Association

of

Security

Dealer*

Broadway, New York 4, N. Y.




specific
aspects

Property insurance stocks, their
growing investment income and
dividends paid to stockholders,
what

hag

^been

the

experience

during the past decade?.
Let

us

take

the

five

natPrl

a

thic

Any

rnnrsp

investor

blue

nrpdiption

in

g

such

Autumn

of

would

"e. °
J

making

thp

daresav

cago) and St. Paul Fire & Marine

nf pvpnts?

a visionary

have

a

1949

been

,„° ®

and an incom

(St.

Paul).

All

five have had

superior records of underwriting
aad growth. During the past 10
years their average investment
income

and their divi-

rose

dends to stockholders ,154%., That
is surely a record of growth which
v

Continued

on page
-

that

denomina¬

common

a

is

of

fare without determining whether
autos

or

TVs

receive

basis

dollars.
of

the

ness.

much

motors
of

Insurance

all

fundamental
of

outboard

or

the first call

credit,

in

the

con¬

is

the

Correspondents inprincipal cities

absolutely

economic

life

throughout the United States and Canqda

community.
Is it
as

missiles.

is

rockets,
But

these

vital

a

busi¬

growing one? Not

a

may

is

it

who

true,

can

be

as

nor

UNDERWRITERS AND DISTRIBUTORS
t
.

foretell

supplanted?

OF INVESTMENT SECURITIES

Cavalry was supplanted, battle¬
ships supplanted, canals and many
railroads—but insurance has

Principal Stock Exchanges of Canada

National

wear

well_and if they don't give max!-

general

is

characteristic
"An

never

supplanted. This lack of ob¬

solescence

The

stocks

thev

all-pervasive.
It rises
prosperity and falls
depression.
It is a method
investing in the general wel¬
it

been

Members:

on

*Cttror!chang^

government

turn

getting at is

are

insurance is

when

Orders Executed at regular commission rates

better

after the blonde left town

Common

a

Insurance hence

25

a

*he

Remember

£9™°^t dio?never Sd

Denominator

sumer

Members: New York Security Dealers Association

with

exempts ditto, while common stock

brings Patent and probably both. If he
more goods to more people which
was sensible and valued his job,
must also be insured.
The capital he
kept his own counsel—and of
goods industries depending upon
> ;. V
war orders also require insurance.
which

prosperity

will

Grace Canadian Securities, Inc.

wi?h

wron?

with

Principal for

a

hnn_

yielding

bonds

can

with

as

in

perj0d when monumental invest-

chiPs" of the fire and casualty
busjnoss> from East to West: Hart?i?W hands of which come into yieids have retreated (because of f°rd Fire (Hartford), Federal Inproducts the
the
public
they the
approximate quadrupling of prance
(New York), Insurance
should also be insured. And Retheir prices)
to about 3%
How Co. of North America (Philadelsearch, in discovering newer and
many
investors correctly antici- Phia)> Continental Casualty (Chitrue.

tor,

Specialists in Canadian Securities

there

-

arl of

<<r.uth they are only partially so?

Are Research and the Cold War

beneficial

,

varies

75-80%.

as

of

as

benefit

represents

assets

high

as

of

citizenry

the

The

be ^ecacfe ahead. Mean¬
their risk is certainly less
fanu™9Su coo™1011 sl°c^s> many
of which have discounted a future
9
f Pa.le .blue; yonder, and
bonds also if interest rates con-

common

Insurance companies (fire

funds.

/

long-

2%%, short-term government

only the third would seem to be
directly helpful to insurance com-

own

henchmen

.
'

jT

other

it

to

full-blooded

They want strategic goods

while

—

spending,

that

obstacles

of

mainly

and

explanation

thesis

ridiculous

honors."
the obstacles to trade

with the Soviets

savings from curtailed armament
of his

"How

be

ranee

dire things were going to happen.
all-round international trade are
from
company
to company, de- ®ut as so often happens about the
in our time!
The entire system of
pending upon the size of the bond future> except one's own ultimate
discrimination in trade has long
portfolio; but in most fire and Personal
future, the fears are
been begging to be interred, and
casualty
companies,
the
bond ?vors®
without
1:ha^

who

promised

Assembly:

the

world-cov¬

made

Ambassador

eral

ins-u

the

not

in

one

interested

Research,

dou¬

confusing

stocks

some

represent a "hedge' posi-

bondholdings

if

C°ld

ble-talk along with a show of rea¬
sonableness
is, unfortunately,

Khrushchevism's

as

°9 fire and casualty insurance

^19r?1

alone, the inter-

from

and dividends from

tions?

Pleading for Trade

Now, the replacement of Stalin¬
ism's

very

,

their dividends out of in-

received

lated too. Why
amid
these

any

talks.

monied institutions

are

vestment income

re¬

are

as

good

as

growth.

It is well known that insurance

companies

Interest

Rates.

probably

riolic

ences,

(3) Not

of

should

the

high markets;

an

theses

statements

stocks

today's

two

and

Camp

epithets ("those American
cowboys"—from Gromyko). Per¬
sonally annoying as these tactics
were, the outbursts seemed stra¬

most

be purchased in

ap¬

this

pieces in the absence of

David

than

Better
can

the

tlemen's unceasing hurling of vit¬

gen¬

(2)
which

dif¬

the

an

giant

these

day;

believes underwriting problems have been overempha¬

Age

years:

(1) • Better' than any ordinary
bond which can be purchased, to¬

is fortunate

one

abetted by today's rising

are

10

Insurance stocks will be:

>

mortgages and

'

is

three

to

stocks

some

write the same,

the next

preferable

than the last decade.

thorough explanation by President
Eisenhower
himself,
after
the

was

as

He notes that they

the

That is
predict,
history will
if not more so, for

of

handful

understanding).

fective

curity Council

stocks

enough to buy.

the past decade. And, we
the moving finger of

Particularly

peasement-tempted
in
other
countries
(who

on

fortunate

Research, slower growth compared with the which tireless research and coureveryone says.
It is also the Time Age of Research's more sensation- a&e and luck can discover in the
of the Cold War.
Probably the al products.
dynamic fields of industrial

disillusion

to

ami

the

impasse is understood

relative

ficult

fire

of steady rise in investment income; and opines
that the next 10 years could provide greater investment
opportunities

This

knowledgeable.

to

of

have his cake and eat if

insurance

hedge, better than bonds

or

pro¬

controls

real

a

categories

sized at the expense

unwilling¬
within

characterizes

denominator

interest rates;

suggestion

effective

any

Davis

enough to buy.

Khrushchev's

Soviet borders.

for

two

compares

concludes they enable one "to

Mr.

many

course, cen¬

constant

from Hunter
con¬

too."

common

concrete

a

for,

ranging

out

Debunking the Fictions
The real answer,

v,

Gromyko et al.
Sitting at lo¬

s

Powers

prolong the Cold War?

fully transmitted here by Messrs.
M

Western

specialist

casualty stocks with the "bluest of the blue chips" in terms of invest¬
ment income, dividends paid,
growth performance and fundamental

THE SOFTENED-SELL AT THE U. N.
NATIONS, N. Y.—In
good old days of Stalin, the
Dictator's intransigence was faith¬

bought but not as good as some
stocks which he might have been

.

insurance

ordinary

a«ay

bond he could have bought, better
than many stocks he could, have

1

By SHELBY CULLOM DAVIS*

Stock

UNITED

atieast served as a

'

Managing Partner, Shelby Cullum Davis & Co., New York City

the

invested Reinsurance

course

r

5

(1241)

.

address

a

prime

which

by

investment
counters

its

before the
Annual
Convention
of
the
New
Hamp¬
shire
Savings Banks Association, Sugar
Hill, N. H., Sept. 18, 1959.
Mr.

Davis

Dominick
Members New

&

Dominick

York, American & Toronto Stock Exchanges

14 WALL STREET

NEW YORK

37
-

6

The Commercial and Financial Chronicle

(1242)

"feel" for

a

extends

Selection Factors to Consider
In Drug

knowing the, names of key
officers. Personalities, enthusiasm
engendered through an organiza¬

Vice-President, Chemical Fund, Inc., New

tion,

the drug industry, Mr. Van Deventer
holding the right securities at

them

effectiveness

is

in

The

line,

the

search,

medical

of

will

indus¬

it

our

evaluation

depend

investment.

is

standing

profession,

re¬

character of foreign
Upon
the
accuracy

and

operations.

relation

tries

status,

abilty,

marketing

with

wrought by its
products.
In
other

financial

growth record, quality of product

to

of these

cant

the success of our
Several of the most

who

many

will

the
is

say

industry

industry.

touted,

ove r

To

overpriced

attractive
means

resembling an iceberg. The visible
part shows a little "above-the-

John F. Van Deventei

a

as

the

competition—domestic
and
foreign,
narrowing
profit
margins, increasing government
interference, the large sums re¬
quired for research, and
price
vitamins

in

as

and

bulk

I

sion

both

Basically,
are

in

drug

eight

of

a

good

warrant

at

address
the

by

Mr.

New York

Analysts, Sept. 15,

time.

I

"blow-the-surface"

lines,

Subtle

include:

Van

low

many

high profit items. It is not easily
changed except by unusual devel¬
opments from research or merger.
Strenuous efforts are required to
maintain a line in growing profit¬
Obsolescence is

areas.

threat

stant

con¬

a

established

to

lines.

Even

unique,
highly
profitable
patented products are not exempt.

Research

should
some

of

of

factors:

is,

Quality

Deventer

of

Management

exposure

levels of management

Society of Security

1959.

mount

importance

in

to

is

evaluation

in

various

developing

of

drug

a

stock.

Competition and the specu¬
lative
nature
of
new
products,

which

be

must

formation

of

number

vital

of

given fields take

staff

of

under

sympa¬

maximize new
possibilities. Knowledge

these

data

in

products

af¬

scope,
re¬

a

One

of

the

avenues

to

in¬

in my opinion,
is to seek out well-managed com¬
panies with the greatest research
to

fields

conceded

obvious

helpful to spend

a

Market Issue will

comprehensive article

developments

on

current

Over-the-Counter Market.

which

I

Operations'

Potentialities

operations

Turns
Chemical
ments

A detailed tabulation

assets.

of all

Over-the-Counter

million

or

an

have

and

The

16

The

foreign areas
burgeoning populations and
high incidence of insidious diseases

dends for five

The

use

of

drugs

will

markets

opportunity

advertise

to

Firm, Corporation

your

or Bank in the Fall
Over-theCounter Market Issue, the date
of which is

OCTOBER 1, 1959
Regular Advertising Rates Will Prevail
For

more

Space in This Issue

trenched
of

case

The Commercial & Financial
Chronicle
25 Park Place, New York

7, N. Y.

world-wide.

As

in

the

research, those companies

which

have
developed
foreign
organizations experienced in deal¬
ing with the complexities inherent

24%

with

at the end

of 18%

$47.0

of 1958

the

over

companies in the
Fund portfolio on June

afforded

broad

a

coverage

counted
total

for

major

a

ethical

companies
to

pitfalls

can

increase
and

of

may

foreign

both

to

also

be

portion

had

been

held

longer.

newcomers.

by

the

served.

earnings

are

bearing on ap¬
three-quarters of

the

seven

years

or

information,

your

included

quadrant

upper

for

For

held,

was

Smith,

Kline

&

French; Norwich; Schering;Merck;
Pfizer; and Warner-Lambert. Two
others in the top quadrant, Amer¬
Home Products and Carter,

the

price
earnings
companies avejr-»
ages 23 times estimated 1959 earn¬
ratio

for

ings.

the

16

Applying

these

same

earn¬

ings estimates to original cost, the

price earnings ratio, how¬
.is.nine times.

average
ever.

Yield of the group currently is
2.3%, but if current dividends are
applied to original cost, the aver¬
age yield. is 7.2%.

Outstanding Single Performer

of

business represented some 23% of
their over-all volume. Their com¬
bined research expenditures

1958.

the

for

than

20%.

was

on

Their

12%

average

for

total

return

average

capital

prob¬

better

industry's

Their

income

net

of

net

sales.
.

Considerable

differences

v

exist

in the relative size of investments
in

various
last

stocks, which

on

June

from

to

4.2%

ranged

.5%

of net assets.

Generally investment
policy emphasizes situations with
immediate

promise,

and
longer
indicated by our

as

evaluation of the factors discussed
has

to

Consideration,
given to a

of

course,

be

company's
size and to the availability and
marketability of its shares. The
capitalization of most drug com¬
panies is usually small as com¬
pared with other
total
for
lion

the

of

industries.

outstanding

the

16

Earlier

be

foreign

the

costly

While

the

shares

two

is

barely

than

more

outstanding

shares

largest chemical

important
diversity of mar¬
though these

not valued

as

highly

the

mentioned

satis¬

Chemical Fund. This stock, Smith,
& French, had been repre¬
sented
in
the
portfolio for
11

The

years.
was

the

stock

appreciation
1400%.
is

equal

Top

investment

publicly
June

on

little of
The

very

Each

held.

30

last

was

original share

to eight existing shares.

Dividends

have

been

successively
with one
exception.
The
price
earnings
ratio of this stock, applying esti¬
mated
1959
earnings to original
cost, is 2.5 times as compared witha
current price earnings ratio of
33 times.
The yield, applying the
current dividend to original cost,
is 27% compared with the present
yield 2.1%.
increased

in

each

year

Form Binder & Co.
LOS

ANGELES,

& Co., Inc.,

Calif.—Binder

is engaging in

a

secu¬

rities business from offices at 8400
Boulevard.

Sunset

is

a

Aaron

Binder

principal of the firm.

Lewis Adds

McDaniel

(Special to The Financial Chronicle)

GREENSBORO, N. C
Lanning

As

when

was

some

limiting their availability.
Drug

original

acquired

com¬

Performer

of

Jr.

McDaniel

has

joined

Lewis

&

The

drug group ranks as a top
performer
for
Chemical
Fund.

ferson

—

Earl H.

the

staff

Co.,

Jef¬

Building.

Nearly one-third of the unrealized
appreciation
June

30

of $114.0

last

was

million

accounted

on

for

an

Even

I

Kine

The
stock

common

companies of 83.0 mil¬

combined

the

expected

their

avoid

be minimized to

extent

kets

The

a

and
in

stock

proprietary vol¬
factory profits which can be ob¬
ume for the
industry. Their prod¬ tained from a
drug investment. In
uct lines covered virtually every
closing I should like to tell you
phase of the industry.
Foreign of the
outstanding performer for

research.

quality of foreign earnings varies
from
country to country, risks
can

upper

showing

and

ther

benefits

Such

had

course,

stocks

industry.
Sales of these
companies' products probably ac¬

in this business will benefit most.
from

a

Currently

invest¬

last aggregated

Additional

obtained

of time

these

the

stocks

appreciation.

the

panies and only, 38% of the out¬
standing shares of the largest oil
company.
Stocks of many com¬
panies also are closely held, fur¬

business




standards of living rise
and
more
common

develop. In spite of for¬
eign competition, many American
drug
companies
are
well
en¬

years or more.

Don't miss the

and

as

Fund

drug

drug

Chemical

above.

profitable.
in

with

great.

portfolio

ican

compared

average

business

is

I

past ten years.

term

increase

case.

22% of total fund

or

This

and

His

to

Fund's

$54.0 million

greatest

Market securities which have
paid cash divi¬

specific

convenience,

June 30

on

increasing potentialities
drug companies. Lower oper¬
ating costs and taxes make this
drugs

A.

had been held three years or less,

for

highly

moment on

a

a

of

some

it might

familiar.

am

invested

for

greatest

drawn on readily available
figures from Chemical Fund with

accounted

need

in the

the

of

in

were

stock.

have

will offer

encompass

of

of

.

The Fall Over-the-Counter

sakfe

the

For

60%

Foreign

stocks
of

factors,

their application in

ably

Foreign

drug
half

this discussion of

less

be

30

CHRONICLE
.

the

to

field, for example, several
companies have programs, includ¬
ing Searle, Schering and Upjohn,
to name a few, while many com¬
panies are engaged in virus, in¬
cluding Lilly and Lederle.

OF

neverthe¬

preciation,

With

search

MARKET ISSUE"

Wilstead

Camerick,

business.

potentialities for greatest
growth. In the difficult steroid re¬

OVER-THE-COUNTER

Gerald

were-Edward

the

drugs,

exposure

Gross

length

last

new

productive

vesting

P.

Committee

Parke,
Davis and Pfizer are examples of
companies with important foreign

of

possess

I

a

30

organization.

most

Albert

Executive

definite plus

a

evaluation of

an

per¬

a

search

THE

are,

in

with

good measure of the
importance and strength of

FALL

domestic, they
less, important and
as

facilities,

sonnel and the record of research

generating

Larkin

the

to

Shearson, Hammill & Co.

combined

details

budgets,

on

Leo J.

Jr.

elected

Horn, Kuhn,. Loeb & Co.; Maurece Schiller, Newburger, Loeb &
Co.; Michael Kourday, Hayden, Stone & Co.; John C.
Howatt,
Harris, Upham & Co.; Hanns E. Kuehner, Laird, Bissell & Meeds;
Irving J. Silverherz, Hay, Fales & Co.; and A. Van

thetic managements

in

"THE

in

develop.

years to

staffs

are

disciplines

research

a

A

area.

however,

clues,

know-how,

skills

and

Dunne,

Also

after long

proved

this

on

available,

fords

PONT MISS IT

>"

testing
periods,
normally
cause
companies
to
blanket
out
in¬

product
of para¬

most

the

far,

by

difficult of the imponderables in¬
volved

Frank

It may consist of routine: *
items or distinctive ~

profit

able

>

A com¬
years to ;;

company.

a

takes

line

Experienced

Repeated
*An
before

spending time in

this

measure

These

company.

to

i.e., management, quality of prod¬
uct line, research, and character
of foreign operations.

investing
which, I

factors
a

factors

the less obvious aspects—some
the

Co.!

Vice-President; Leo J. Larkin, Carl M. Loeb, Rhoades & Co., Sec¬
retary, and Frank Dunne, Jr., Merrill Lynch, Pierce, Fenner &
Smith Incorporated, Treasurer.

industry

develop.

familiar with most of

like, however, to discuss

Factors in Company Measurement

believe, provide

are

"above-the-surface"

discussion

particular company.

Hemphill, Noyes & Co.,

Gross, Bear, Stearns &

manage¬

a

part

such as financial status,
growth
record,
marketing
and
abilty,
standing with the medical profes¬

cannot

wholly disagree with these views,
but
I
believe
they should
be
qualified,
tempered,
and
ex¬
amined specifically for the
degree
and extent of their
bearing on a

there

of

is

and

unseen

Many
the

L.

year!

various compa¬

appraised.

antibiotics,

steroids.

the
in

measurable, but Heavy concentration of a line in a
field
must
be
watched.
is well "below- single
the-surface"
and
requires addi¬ Smith, Kline & French has done a
good job in maintaining its profit¬
tional
information
before
its
able line of specialties.
extensiveness can be
surface"

of investment. The familiar

reasons are

weakness

it another way, a drug
might be thought of as

put

company

stockwise, and
not overly

Gerald

1959-60

the Executive Committee.

on

P.

the

one

when related to
trends.
immediate and longer range

overall

pany's

determined.
The
drug investment,,
therefore, cannot be resolved sim¬
ply by use of statistics such as
price earnings ratios. While this
applies to many industries, it is
particularly
true
of
the
drug
precisely
question of a

constantly re¬
minded, there

Albert

are

elected

developments for Merck.

Product

factors

be

are

two-year term

a

chosen

of

example, in recent years aggres¬
pursued management ob¬
jectives have resulted in signifi¬

small.

are

Poole

C.

sively

potentials for

we

officers

Alan

Brokers has

President for

objectives and intent is
important in bringing other factors
such as research into focug.
For

important of these factors cannot

as

succeeds

as

another and
relative size

to

Knowledge

relative ly

Today,

Customers'

ment's

management,

drug industry is compara¬

investments

nies.

of

of

Hallgarten & Co.

named for

was

Other

information

selection

in

opposed

as

determining

of

portfolio.

tively young, dynamic, and in¬
creasingly
well-known
to
the
public through
the
wonders

valuable

of

Wilstead

who

drive.

and

this

Investmentwise,

of his fund's

specific cases drawn from the drug portion

to

effort

of

sharpen and round out a
picture of a manage¬

to

stock

The investment officer first, however, reviews eight
which he believes should govern selection, and then applies

right time.

factors

Mr.

coordinated

sketches the rewards attainable from
the

Wilstead

details which com¬

subtle

ment's

Using experience in investing in

coordination

and

all

bine

York City

The Association

_

are

DEVENTER*

Thursday, September 24, 1959

Customers' Brokers Elect New Officers

considerably beyond sim¬

ply

Industry Investing

By JOHN F. VAN

drug company. This

a

...

by drugs.
at

Half of the drug group

that time

rant

and

was

all

in the

but

two

With Wm. E. Pollock

now

associated

with

top quad¬

lock

of

Boulevard, South.

the

16

"

MIAMI, Fla.—Donald J. Hall is

&

Co.,

Inc.,

Wm.

100

E.

Pol¬

Biscayne

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

.

(1243)

'

fold

Electronic Guidance

views

some

issues that

the substantial decline in electronic

on

to the relative attractiveness of certain

as

have descended into

a

statistical

market

(listed

better

area

correlated

have

to

in

The

to

cut

on

limb.

a

exuberance
uranium
sues

In the radioactive

1954/5

of

i

s

400

over

fer

and

of

fantastic

these 400

Most

when

Last

a

coil

of

the

makin's

feet

Route

128

Southern

itors,

thousand

plant

space

on

Boston,

outside

and

of

you

electronic

an

California

Jersey
you

and

few

a

of

pair

a

grad

of

Get

company.

and

wire,

M.I.T.

in

Northern

or

underwriter

an

in business. Capac¬

were

transistors, circuits, relays,
and grids, etc. — all these

tubes

baubles of the electronic age were
in

ready

good

demand.
and

ones

provements

Make

research

and

some

im¬

some

people

dubbed

shares, "growth stocks."
Now, of course, the foregoing is

your
;
a

bit

done.

over

Our defense pro¬

especially

gram,

the

rockets

and

for

food

petroleum

paper,

A bear-cat

Foxboro

many

textile,

—

and

research

on

front in auto¬
should

common

$3.30

earn

bit

a

this

share

a

by

more

1962.

Foxboro sells around 22
dicated

At 72

times in¬

That's

earnings.

and

year

quite

a

conservative appraisal for an elec¬
tronic

share

this

of

quality

and

promise.

there's

and

On

this

(over

Associates, for 1959,
$1.75 a share.
the

basis

the

-

ments;

these

and

had

to

be

re¬

with

even

the

shooters.

Muscovite

around
ratio

a

is

stock

is

counter)

-

times

19

lot

earnings.

at

a

couldn't be

selling
This

sensible

more

ing

another

is

than

interest¬

In 1954 it developed

company.

first

the

high speed analog-todigital converter, a basic ingre¬
dient in all high speed instrumen¬
tation data reduction systems.
It
has

expanded into six major

now

divisions producing sys¬

company

echelon,

who

had

received

their

earlier training and experience in
of the big companies.
More

some

than

50

electronic

stocks

For

common.

example,

Corp.

Loral

common

was

publicly offered on May 7 at $12
per share.
It traded at $22 V2 per
share

on

the day of issue.

(It sells

the

on

we've

If

it's

so,

too

electronic

newer

panies.

dwelt

only

R

an

1959

long
com¬

because

42c

were

higher.
as

22

the shares of the big nation¬
ally known companies.
Zenith at
92% is down 43 points from its

are

1959 high; Motorola is down 30;
Texas Instruments down 35; Ray¬

27;

Fairchild

and

Camera down 55.

of all this

ity how should

changes

volatil¬

view the elec¬

we

tronic list today?
clude
that
the

Should

A

smaller

much

hospitality
ex¬
of President Eisenhower

defense

trend?

that
vital

stocks,

Or

electronic
as

ever

scended to

a

consonant

with

"We

the

buy

are

have

valuation

down¬

conclude

we

issues
but

in

are

should

just

now

level

as

de¬

more

statistical reality?

second

con¬

(TVs,

around

earn

ings.

11

There's

also

vertible

bond

look at.
mon

The

at

price, has

share

a

sells

there

York

so

well known and

needless

here.

card

the

business

records

er

in

atomic

and

the

of

member
Midwest

and

announced,
Mrs.

New

Stock

Ex¬

nor

latest

Hackstaff

Colo.

—

in

office

Chicago
&

served

connected

become

has

with Boettcher and

the

Richard A. Gundy

was

depart¬

pal

Co.

seven

office of Wood,
previously had

She

years

with Chicago

17th

Street, members of the New
Exchange. Mr. Hackstaff was
formerly with Stone,

First

York Stock

and Amos C. Sudler &

Moore

Co.

ATLANTA, Ga. — Clinton D.
McCord, Sr. has been added to the
staff of First Fidelity Securities

With Clayton Sees.
PORTLAND, Maine
Finnimore

with

nected

has

—

Corporation, 11 Pryor Street, Si. W.
He was previously with the Bank
of Quitman.

Clifford

become

con¬

Securities

Clayton

Fidelity Adds

(Spscial to The Financial Chronicle)

(Special to The Financial Chronicle)

Bache Adds to Staff

Corp., 443 Congress Street. He was

elec¬

(Special to The Financial Chronicle)

formerly with Walter J. Hood Co.,
Inc.

CHICAGO,

111.—Ronald Wood¬

bury has been added to the staff

punch

Now With Estabrook

automa¬

Bache

of

&

Co., 140 South Dear¬

born Street.

(Special to The Financial Chronicle)

electronic

BOSTON, Mass.—John D.Ames,
has

Jr.

become

Estabrook

tronic computers.

members
Boston

electronics, de¬

&
of

connected

Hemphill, Noyes Adds

with

(Special to The Financial Chronicle)

Co., 15 State Street,
the

New

and

Stock Exchanges.

He

CHICAGO, 111.—John C. Krass

was

York

has become connected with Hemp¬

spite recent market setbacks, con¬

formerly with Goldman, Sachs &

hill, Noyes & Co., 231

tinues favorable.

Co., and Hemphill, Noyes & Co.

South La

Salle Street.

We

This

see

no

dan¬

announcement

is not

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

an

The

million

New

but

logue

whose

electronic

shares

Toronto

are

Exchange.

Telephone and Telegraph Company

in

manufacture

Dated

listed on the
Analogue was

of

Due

September 1, 1959

1954
and
has
development and
precision I poten¬

other

electro

tiometers

and

chanical

components.
are

Thirty-Five Year 5M% Debentures

company

as

Price 101.90% and accrued interest

me¬

Potentio¬

essential

to

the

guidance systems of missiles as
the steering column to a car; so
demand stemming from our rocket
missile program

has

should favor
In addition,

in

replace

conventional

gas

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

where
tempera¬
encountered
(as
in

high

tures

\
The

done pioneer re¬
bearings,
which

search

very

speeds

are

September 1, 1994

in

incorporated

specialized

Analogue

England

a

American

ones

and

missiles
and
supersonic
aircraft).
Analogue is
now
in¬
stalled in a new plant at Hicks-

HALSEY, STUART &. CO. INC.

guided

ville, L. I. 1959 sales should exceed
$1% million. Analogue common,
now
around 6, is an interesting
early stage entry into an exciting

A. C. ALLYN

DICK

AND COMPANY

&.

MERLE-SMITH

INCORPORATED

EQUITABLE SECURITIES

L. F. ROTHSCHILD

SHIELDS

&.

LADENBURG, THALMANN &. CO.

CORPORATION

WERTHEIM

& CO.

BACHE &. CO.

COMPANY

&

CO.

BAXTER & COMPANY

business.

Corporation has been

Ampex
brilliant
of

performer

rapidly

fields.

in

a

a

HIRSCH

&.

CO.

F. S. SMITHERS

& CO.

BALL, BURGE &.

growing
electronic
a leading man¬

BURNHAM AND COMPANY

WM. E. POLLOCK & CO., INC.

INCORPORATED

equipment,
magnetic tape recording and play¬

WEEDEN

back

NEW

equipment, broadcasting and

&.

CO.

VAN

IRA HAUPT & CO.

ALSTYNE, NOEL & CO.

INCORPORATED

YORK

HANSEATIC

CORPORATION

STERN

receiving equipment for radio and
storage
At

STROUD &, COMPANY

Ampex is

television,
the

computers

and

$44

million—up

SWISS

data

systems and video tape.
fiscal year-end (4/31/59)

were

KRAUS

number

ufacturer of telemetric

viewpoint. sales




$45,000,000

Last half

company

five¬

September 22, 1959.

for¬

banks.

Company, 828

them

in

O'Con¬

ment manager

(Special to The Financial Chronicle)

1969.

upon

has

partner,

merly munici-

DENVER,

controls, and, with its Datamatic
division, a major factor in elec¬
The outlook for

Ball,

Virginia L. O'Connor

chips
elegant that it

machines,

and

of

Now With Boettcher

blue

dilate

IBM for

staff

com¬

until

the

are

is

tronic

Malcolm

Hafenbrak

changes.

89

at

to

—

M.

the

joined

Building,

W.

Then

Ohio

Irma

Burge & Kraus, Union Commerce

and, at this
attractive look about

an

stitutional

sales,
Robert
A. Podesta,
managing

might want to

you

$33 V3

bond

and

Bard

have

con¬

It's convertible into

partment In
charge of in-

Ball, Burge

CINCINNATI,
T.

earn¬

4J/4%

a

Ex¬

municipal de¬

(Special to The Financial Chronicle)

Common

$2.

times such

rapid pace is Ana¬
Controls,
Inc.,
the
only-

growing at

con¬

we

apd Khrushchev are a prelude to
disarmament, and that electronics,
as

staff.

Chicago

Stock"

-

Transition

horizon.

attractive

an

Analogue's business.

Taking note

research

of business is in

sells at

Two With

I

considerably
has
At 30 it ap¬
animate stock with

and

successful

underwritings
of 1959, even though today they
being far more soberly appraised
than at the height of their vogue
last July.
But so, for that matter,

A

-

will be in the

common

able and

down

and
t

production

a

share.

a

to be an

pears

to

should
be
Epsco Inc.
high as 51.

figures
sold

D

&

these have been the most fashion¬

theon

and
automate
everything
flashlight to the TVA gen¬
The major threat

changes, and

should increase profit
First half profits • for

company

margins.

meters

&t 17 now.)

Perhaps

$10

exceed

in annual sales in 1960.

were

publicly offered this year.
The
majority of these were the equi¬
ties
of
small
early-stage enter¬
prises with meager or non-exist¬
ent
earnings but shining future
projections.
Immediate
market
premiums of 30% to 50% above
subscription price were not un¬
Electronics

substantially

com¬

panies came into being, shepherd¬
ed quite often, by engineers and
scientists

are

a

tb the industry is

while. Now

a

peppier selling

products

and monitor systems.
expanding and should

equipment

Sales

Cruffenden Podesta

erating system.

tion; Minneapolis-Honeywell lead¬
Epsco, Inc.

Mrs. O'Connor with

moon-

eager

many

turned

and younger man¬

newer

excellent

an

should

33

30 times.

from

So

ords,
from

electronics perhaps

missiles, does require, to the ex¬ tems, instruments and equipment,
medical and industrial electronic
tent of some 60%, electronic ele¬
searched, developed and produced
and in a hurry, if we were to stay

is

radios,
phonographs, appliances and
parts); the balance is principally
government
business
centering
around
space
systems
and
ad¬
vanced weapons.
For 1958 Philco
sales totalled $350 million.
This
year the figure should be above
$400
million
and
the
common

around

earn

the defense

cut-back in

a

hi-fi and

it.

Electronic

should

$3.60,
at 124.

earn

Philco cooled off for

at

quite

copper

square

New

delivery

out.

a

enter¬

electronic

instruments

Foxboro is way out

and
until
around
this, all you needed was

pliers and
had

Cobieigh

and

industries

mation.

1963

year,

of

regarded

mechanical

chemical.

dering what
they're going

June

of

processing,
U.

to

run

appraisal of

the

of

out fast enough.
Came the over¬
capacity and falling demand, and

sumer

highly

very

major

Ira

contracts

sensible

prices.

control

busi¬

after

for

used

er

ness, and the
others
won¬

do

ques¬
money

prise is Foxboro Co., manufactur¬

them

of

much

to

sets

About 70%

A

today?

of

how

to

com¬

plenty

Our

business.

relate

equity

com¬

out

have

television

agement

are

panies

diabetic

to

of

of

ger

budget, and we see broad new de¬
mands for home and portable tele¬

stiffer competi¬
now is a good time to take a look
tion from Japanese and European
at Philco.
This company went
production.
great guns in the early 50s when

be

some

instances.
Where

as a

going

are

still
growth

one

so-so

or

consumer

going to earn, and what
multiples of per share net should

in

price in

defense

In

they're

up-

surges

Peace

our

logical

as

military

tions

Nobel

in

insulin! Electronic

up

panies

were

the

get

Reduction

giving

of¬

d

e

there

never

spending is

-

were

publicly

will

Prize.

com¬

vision sets (in due course in

expected

mon,

realities.

fluctuating fashions of fi¬ Anyone who demonstrates such
frequently leave investors bristling bellicosity as does Nikita,

nance

plenty

Instruments,

cheap, dear,
;

Ampex
N.Y.S.E.)

it.

Texas

Enterprise Economist

Containing random reflections

years.

75

at

color)
stereophonic equipment,
and the myriad of electronic gadg¬
market leaders of the year should
CHICAGO, 111. — Virginia L.
ets that keep books,-make state¬ O'Connor has
earn
twice as much in
1959 as
joined Cruttenden,
last
year.
Decide
for
yourself ments, file, reproduce, enter and Podesta & Co., 209 South La Salle
sort business and accounting rec¬
whether Texas Instruments com¬
Street, members of the New York

left

By DR. IRA U. COBLEIGH

shares; and

five

in

mon

seems

*

AMERICAN

CORPORATION

BROTHERS & CO.

9

The Commercial and Financial Chronicle

(1244)

Baltimore

Dealer-Broker.

&

Ohio—Analysis—du Pont, Homsey
Street, Boston 9, Mass.
Also in the

Milk

31

Barnwell

Offshore,

Brewster-Bartle

Inc.

Report—First

—

Investment

Drilling

Company,

Inc.

—

Company—Report—Alkow
Exchange Place, New York 5, N. Y.

Columbia Broadcasting System, Inc.

Quarterly review of major banks — M.
Schapiro & Co., Inc., 1 Wall Street, New York 5, N. Y.
Borden Report—(Made by Royal Commission on Energy)
—

Montreal,

Montreal,

Monthly Investment Letter

—

able

in

current

Electronics—A

Foreign

Taxes

glamour

Que.,

of Nova Scotia,
Street, New York 5, N. Y.

able is

Diana

Bullock;

Studebaker-Packard,

York

Agency,

37

Dunham-Bush,

Wall

men's Bank

current issue of "Nomura's Investors Beacon"—Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
Also
available is a review of the outlook for Plant and Equipment

for

1959

brief

and

analyses

55

Heavy Industries, Nippon Flour Mills Co., Iwaki
Cement Co. and a survey of the Steel Industry.
Stocks—Current

Information

Company of New York, Inc.,
New

Ill

—

Yamaichi

Broadway,

Securities

New

York

in the National Quotation Bureau

Life

Insurance Companies—Analysis—Sutro & Co., Van Nuys
Building Los Angeles 14, Calif.
Paper Industry
Analysis — E. F. Hutton & Company, 61
Broadway, New York 6, N. Y.

Quebec Industrial Sites

—

Information

—

Provincial Publicity

Bureau, 50 Rockefeller Plaza, New York 20, N. Y.,
ment Buildings, Quebec
City, Canada.

or

Parlia¬

Savings and Loan Associations—Study—Bache & Co., 36 Wall
Street, New York 5, N. Y.
Selected Issues—Suggested portfolios in the current "Market

reports
&

Exchange—Monthly bulletin of trading data on
listed—Toronto Stock Exchange, Dept. E-3800,

all

issues

234

Bay Street, Toronto 1, Ont., Canada.
the

Western

World—S.

W.

Idaho

*

Adams Express Co.

Fenner & Smith
N. Y.

on

Y.

&

Power

Rubber

Co.

—

Review

A.

—

New York 5, N.

Company—Anaylsis—Blyth

M.

Kidder

&

Y.
&

Co., Inc., 14 Wall

Y.

Inc., 211 North Ervay, Dallas Texas.
Star Cement
Corp.—Memorandum-—J. A. Hogle & Co.,
40 Wall Street, New York
5, N. Y. Also available is a mem¬
orandum

—

♦

New York
Marine

Memorandum

Viscose

—

Merrill Lynch,

5,

■

&

Co.,

Fairmont

Foods,

Electric.

and

is

a

memorandum

Sealright
Wall

on

Richardson Co.

Oswego—Memorandum—Hill,

Simmons

Co.—Memorandum—Francis

Street, New York 5, N. Y.
14

Brands

Inc.—Analysis—Hayden,

Street, New

York

West Ohio

Gas

Company

—

Westinghouse Electrie

EAz-cver 2-2400




Teletype NY 376; 377; 378

Statistical Summary —
August, 1959—Bank of Canada,
Research
Department, Ottawa,
Ont.,
Canada,
(paper),
250

($3.00 per year).

Days of New York and Its

First

Savings Bank—Historical
for

in
York, 280
Fourth Avenue, New York
10,
N. Y.
(paper), on request.
the

City

How

of

Savings

New

Retarded

Helped

Children

Can

Be

Evelyn Hart — Public
Affairs Committee, 22 East 38th
Street, New York 16, N. Y.
(paper), 25c.
—

Increasing

Office

Bureau

of

Efficiency

—

Business

Practice,
Avenue,
New
London,
Conn,
(paper),
35c
(quantity prices on request).
100

Garfield

Flow

Private

of

Capital 1956-1958 —United Na¬
tions

Department

and

Social

Economic

of

Affairs

v—

Columbia

University Press, 2960 Broad¬
way,
New York 27, N. Y.
(paper), 75c.
Jobs

in

Employee

Relations

—

American Management Associa¬

tion, 1515 Broadway, New York
36, N. Y., $1.50.
Reform

Labor

Law—Text, back¬
analysis, and rules of

ground

operating—Bureau

Affairs,
N.
W.,

National

of

24th
Washington 7,

Inc.,

1231

Street,
D. C.,

French

is

a

Palyi

Co.,

report

Economists

Committee

State

York

Mone¬

on

Commerce

Postwar

York's

Trends

Economy

York

of Commerce,

Y.

N.

Re¬

New

in

New

—

State Department

Albany,
request.
Senate

& Co

Inflation—

—

—

tary Policy, 1 Madison Avenue,
New York 10, N. Y. (paper.)
view:

Schweickart & Co., 29

—

in

Lesson

New

Meeds,

(paper),

Hearings

on

Vital

Reveal

Need for Depreciation Reform—

Highlights from the Proceed¬
ings of the Senate Small Busi¬
ness
Committee Hearings—

Coming

Bankers Association of America
39th annual dinner at
dorf Astoria.

of

annual

golf
tournament and outing at Colonia

Club,

Colonia,

28-29, 1959

(Toronto,

1-2, 1959

(Kansas

Southwestern
ment

Association

Bankers

an¬

nual

party at Hotel Muehlbach
and Oakwood
Country Club.
2-3, 1959

Dallas

20-23,

1959

National

(Hollywood-by-

visors

Association

of

State

convention

at

of

Super-

Banks

annual

The

Diplomat

Hotel.

Oct. 22, 1959

Strengthening the Japanese Trade
Position in the United States: A

Pilot

Study — United
StatesTrade
Council,
1000

Japan

Connecticut

(Cincinnati, Ohio)

Studies

Avenue, Washing¬
C., (paper).

of Highway

Development
Geographic Change—Wil¬

and

liam

L. Garrison, Brian J. L.
Berry, Duane F. Marble, John
D. Nystuen and Richard L. Mor¬

rill—University of Washington
Press, Seattle 5„ Wash., $7.50.
Tax Aid Record and Appointment

ports,
$5.95.

Inc.,

"The Time

(Dallas, Tex.)
Dealers Asso-

Security

Re¬

1960—Business

Book—For

Larchmont,

N.

Y.,

Has Come to Face the

Ohio Group of
Investment
Bankers Association annual fall

Facts"— Summary of

mittee

Oct.

City, Mo.)
Group
Invest¬

Oct.

the

Street, New York

(paper).

meeting.

Country

Association of Stock
Exchange
First Board of Governors meet¬
ing at the Royal York Hotel.
Oct.

at

the-Sea, Fla.)

Bank

(New York City)
Corporate Transfer Agents As¬
13th

convention

Warwick Hotel.

1959

sociation

annual

East 42nd

17, N. Y.

ton 6, D.

14-17, 1959 (Philadelphia,
Pa.)
Consumers Bankers Association

Women 37th annual convention
at the Hotel
Schroeder.

24,

the Wal¬

Oct.

(Milwaukee,

Association

field

Oct. 14, 1959 (New York
City)
New
York
Group Investment

Oct.

National

51

annual

day at the
Ridglea Country Club.

Canada)

Trinity Place, New York 6, N. Y.

Companies; Small
Loans; Sale of Securities.

American Economic Foundation,

Sept.

Troster, Singer & Co.

&

Brown & Sons, Reyn¬

ciation

N. J.

Members Neu: York
Security Dealers Association

following at a
Credit Unions;

Canadian

National

25

White

Sept.

Distribution

Co.

Co.,

Corporation—Analysis—Reynolds

Wis.)

&

Bissell

Broadway New York 5, N, Y. Also available

Sept. 23-25, 1959

Production

&

—
A. G. Becker &
York 4, N. Y.

39th

(b) Natural Gas Companies

Stone

Analysis

International Harvester.
Motor Company —
Analysis
Broadway, New York 6, N. Y.

the

on

Office

Sales Finance

Melchior

Hammill &

4, N. Y.

120 Broadway New York 5, N. Y.
Corp.—Memorandum—Alex.
olds
Building, Winston-Salem, N. C.

120

40

Street, New York 5, N. Y.

U,Y^dr,States Frei^ht Co.—Analysis—Laird,

on

Co.,

of

$8.50.

Industries—Memorandum—Shearson,
Wall

Broad

&

I. du Pont & Co., 1 Wall

Spartan

in.

Transmission,

Darlington

Street, New York 5, N. Y.

IN INVESTMENT FIELD

(a) Operating Utilities

Company,

Petroleums Ltd.—Anaylsis—Shaskan &
Company, 40
Exchange Place, New York 5, N. Y.
v
Packaging Corp. of
America—Memorandum—H. B. Shaine &
Co., McKay Tower, Grand Rapids
2, Mich. Also available

Events
Trading Markets

&

Pacific

Inc.,

Westinghouse

McKinnon,

Distillers and Chemical
Corporation—Analysis—Wil¬
liam R. Staats &
Co., 640 South Spring Street, Los Angeles
14, Calif.

Incorporated, 60 Broadway, New

Corp.—Memorandum—Walston

&

National

■

Street, New York 5, N. Y.
Atchison, Topeka & Santa Fe
Railway—Survey—Abraham &
Co., 120 Broadway, New York 5, N. Y. Also
in the same cir¬
of

Corporation—Report—Thomson

Broadway, New York 4, N. Y.
Marine
Petroleum Trust—Analysis—Carothers
Inc., Mercantile Bank Building, Dallas 1, Tex.

Pierce,

Incorporated, 70 Pine Street, New York

surveys

4, N. Y.

Midland

Separate

of 250 each:

International

Paper Co.

Jim Walter

Manufacturing Co.—Analysis—Bacon, Whipple
Co., 135 South La Salle Street, Chicago
3, 111.
Manufacturing Co.—Memorandum—Dean Wit¬
ter &
Co., 45 Montgomery Street, San Francisco
6, Calif.
Wall

Regis

Inc.—Review—Hardy & Co., 30 Broad Street,

2

#

*

St.

on

R. II. Macy & Co.,

&

74

Dillon, Union

State

Conn.,
pamphlets are

booklet—Bank

Inc.—Report—Parker, Ford & Company,

Allis Chalmers

Firm

N.

Co., 15 Broad Street, New York 5, N. Y.
Company—Report—The Milwaukee Company, 207
Avenue, Milwaukee 2, Wis. Also available are
R. R. Donnelly & Sons Company, and Ed. Schuster

Tire

Standards

Allis Chalmers

are

6,

cost

Early

Inc.—Analysis—Eastman

Street, New York 5, N.
Ling Altec Electronics

Clarkson—Atomic

Energy of Canada Limited, Scientific Document Distribution
Office, Chalk River, Ont., Canada—$1.50 per copy.

cular

and

Boat¬

&

Co., Inc., 1 Wall Street

America.

Toronto Stock

74

Gas,

Co.,

Co., Inc.

General

120 Broadway, New York 5,
analysis of Celenese Corporation

American

&

East Michigan

Review" Harris, Upham &
Co.,
N. Y. Also available is an

in

&

Corporation—Analysis—General Investing Corp.,

Properties,

Gas Service

—

Cranium

Electric

Lone

Averages, both as to
yield and market performance over a 20 - year period—
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.

of

Fair

Securities

7,

York.

Qver-the-Counter Index—Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used

Service

Inc.—Review—Fusz-Schmelzle

Broadway, New York

Food

of

Mitsubishi

Japanese

Public

52
on

Building, St. Louis 2, Mo.

Extrudo-Film

In

Japan

Corp.—Analysis—Van Alstyne, Noel & Co.,
Street, New York 5, N. Y. Also available are data

Stewart Warner Corporation.

Market—Review—Harkisondass Lukhmidass, 5 Hamam
Street, Bombay, India.
Investment Outlook—Quarterly market
analysis—Edwards &
Hanly, 100 North Franklin Street, Hempstead, N. Y.
Japanese Stock Market—Study of changes in postwar years—

in

analysis of the Frito Company.

an

Stores

Wall

New

Company.

Consolidated Freightways, Inc.—Analysis—Hill Richards &
Co.,
621 South Spring Street, Los Angeles 14, Calif.
Also avail¬

Indian

Expenditures

Trust

the

of

Commissioner,
State
Building, Hartford 15,
$2.50.

Legislation Affecting Canadian En-

prise—Bank

Oppen-

available

Also avail¬

industry—Review—Calvin

—

Laws

Connecticut, 1959 Edition—Bank

and

Letter.

Other

and

Memorandum

—

Banking

on

Ltd., 1 Wall Street, New York 5, N. Y.
Income

Co., Inc., 40

heimer & Co., 25 Broad Street, New York 5, N. Y. Also avail¬
able are memoranda on Mission Corp. and Title Insurance

Burnham and

—

Company, 15 Broad Street, New York 5, N. Y.

&

A.

Canada.
Burnham View

Businessman's

Savings

Analysis—Rowles,

Colgate-Palmolive

of

&

Winston & Co., Bank of the Southwest Building, Houston 2,
Texas.

TO SEND INTERESTED PARTIES THE FOLLOWING LITERATURE:

Oil—Review—Bank

circular,

Corp., 404 North 21st Street, Birmingham 3, Ala.
Holdings Ltd.—Memorandum—Model, Roland & Stone,
120 Broadway, New York 5, N. Y.

IT JS UNDERSTOOD THAT THE FIRMS MENTIONED WILL BE PLEASED

Canadian

Company,

Borax

and Literature

Stocks

.Thursday, September 24, 1959

.

Light.

Investment Recommendations

Bank

&

same

brief analyses of Marlin-Rockwell and Dayton Power

are

.

25-28, 1959
Fla.)

(Miami Beach,

American

Bankers Association
Annual Convention.

the Four
Reports of the President's Com¬
to

Study
the
United
Assistance Pro¬
gram—Committee to Strengthen
States Military

the

Frontiers

Connecticut

Washington
Oct. 30-31, 1959

National

(St. Louis, Mo.)

Association

of

Invest¬

Clubs annual convention
at the Sheraton Jefferson Hotel.

ment

Nov. 1-5, 1959

(Boca Raton, Fla.)

of

Freedom, 1025
N.
W.,

Avenue,

6,

D.

C.,

(paper).

Uranium in the Western World—
A

Study
of the
Short-Term
Prospects for Canadian

Market

Uranium

Atomic

—

S.

W.

Clarkson

—

Energy of Canada Ltd.,

National Security Traders Asso¬
ciation Annual
Convention c 1

tion

the Boca Raton Club.

Canada (paper). $1,50.

Scientific

Document

Distribu¬

Office, Chalk River,

Ont.,

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

.

(1245)

in

World Inflation Has Ceased

capacity.

boom.

This

mands

And Other Observations

recently in

meeting commencing Sept. 28, that "we do not

:

a

general price increase."

they

have

policies.
so

considerably

great there

foreign

success

be

can

is in the middle of
the

lessened

an

made

economic

The

noted

ments must pursue

to

and

in

and

(4)

economist

(2)

rates;

external

The

Increase

large markets require
industry to be combined in larger
units and this will in the coming
>ears

increased demand for

cause

capital

such

balance

interest

a

meeting

reality.

a

a

tries

that
on

the

markets

to¬

such

with

wage

a

policy

price increases may

new

a

money

and

gether

be

avoided.

in

of

low

Concerning the
valuation

increased

public

de¬

fear of

impetus for

an

of

In

months.

During a
period of high

case:

their

decrease

in

order

at

the

to

place the
disposal of an

private economic ex¬
pansion.
In addition, at present
more capital is needed for support
the

of

underdeveloped

countries.

also take into consideration

we

the social demands for better and
more

it

is

hospitals,
to

easy

schools, etc.,

more

understand

that

at

present the demand for capital is
so
great that at least there can
be

There is

strive

to

in

decrease

no

stabilization

for

On

its

believe

Production is

end.

need fear

so

keen that
longer

so

not

do

we

be¬

any

general price increase.

a

This places larger demands on the

individual

countries

its

exchange problem.

own

function should
entrusted

be

central

banks,

have

still

each

This

in these days

not

exclusively to the
even though these
important

an

Because of

fill.

that

so

be concerned with

of them has to

role

the increased

to

im¬

billion

of

Robert
made

be

in

paid

will

ciding

action

with

the
a

the

it
as

has

Broad

mutual

by

it

Francis

of investment

During
of

the

the

work

committee

of

the

the four investment

and

their
Mr.
are

sale

of

portfolios.

Wilson,

com¬

pur¬

securities

In

for

addition

committee

Thurston

man,

to

and

Tri-Continental

directors

and

the

Broad

Group of mutual funds.

WASHINGTON

HOUSE,

has

COURT

Ohio—Westheimer

under

France,

necessitate

adjustment

an

situation

new

scale

through

industrial

the

to

large-

a

rearrangement.

This will increase the demands for
industrial

financing.
The neces¬
capital must be available,

sary

plans

with the plan¬

in,

for

example,

Chile, Turkey, Colombia,
and, most recently, Spain. Credits

from

the

Fund

same

its

time

as

have also

resources

direction

of

Carl

R.

Dunlap

IMF

the

and

the

IBRD

starts.

very

important to have

tact

with

the

different

con¬

countries

the preparations for thecoming annual meeting. After the
improvement
which
has
taken
curing

place in Europe, not the least in
the foreign exchange field, it is
obvious

tries

that

will

play

European coun¬
greater role in

a

and

economic
with

the

financial

subsequent

strengthen
system

in

actions

reached

the

the

of
a

foreign exchange
world. The trans¬

the

Fund

total

of

have

SAN

ANTONIO, Texas—Lentz,

Newton

&

Co.,

Alamo

National

There are,
unsolved

of

still

course,

problems,

for

Forms Schraub Co,

Belle

Cohen has

and

,

This

Schraub

Schraub

Co.

has

formed

with

offices

E.
at

years.

Nautilus

many

D.

Lane

to

engage

1020

in

securities business.

announcement

Three

of the Fund have taken place this

ernment

expenditures
often

decisive
which

part,

play
a

bor¬

almost

point of view

and

more

and
an

more

to

considera¬

ginning of the
tant

any

Form

.

as

succeeded.

Planners,

Inc.

is

—
Progressive
engaging in a

securities business from
318

Clifton

Avenue.

L.

is neither

an

offer

to

Schrader,

nor a

ler

also

is

a

associated

with

be

must

Danger From
The

change

given.

price

Government

level

in

reserves

countries

Sector

Sweden

Swiss

Forms Sakier & Co,
Sakier
with

&

Co.

offices

in

are

President;

at
a

is

head

been
Broad

50

Abraham

Morris

H.

H.

solicitation of

an

offer

to

have
tola

increased.

Florida Palm-Aire

is

recently visited Switzerland, that
closely linked to that of the world foreign exchange trading has, to a
markets, which prices rapidly in¬ not inconsiderable extent, trans¬
fluence
those
on
the
Swedish ferred
to
London.
Foreign ex¬
market, both for exports and im¬ change trading in London has al¬
The
ports. In Sweden as in most other most doubled in one year.
countries the greatest inflationary convertibility has made it easier
danger is generated almost exclu¬ to cash coupons and make other
sively by the budget. It is there¬ transactions, and I heard in Switz¬
fore extremely important this fail erland that the banks have con-,
that the Riksdag takes measures siderably decreased their current
to
eliminate the danger arising expenses, thus they earn more on

American

buy

from

too

a

capital

the
also

and

sector

of

methods

demand

large

from

for

government
from
wrong

financing

(borrowing

cost

reductions

earlier earned

than

on

what

they

the foreign

Copies of the Prospectus

ex¬

as

are

$4.00

may

per

Share

he obtained from such of the undersigned

registered dealers

to

London.

The

work

goes

in

securities in this State.

much

too

must

in

(Par Value $1 per Share)

change transactions they have lost

short-term). Consideration easier.
given to these points of
Middle of an Upswing
view by those countries which are
Secondly, the downward
favored by high economic activity

on

Corporation

Common Stock

Price

be

such

progress

a

way

that

economic

is not jeopardized.

is understood

This

not the least in the

nomic

tendency

may

middle of

an

we

are

swing which

so

Doolittle 3i Co.

far has been char¬

Eisenhower's determined policy to

acterized

an

increased demand

♦From

the

an

budget and

article

in

to

main-

the Svensha

Dag•

blaiet, Stockholm, Sweden, Aug. 24, 1959.




by

which has caused almost full

George, O'Neill 8C Co.

Pacific Coast Securities Company

necessitate

an

J. H. Crang 8i Co.
Toronto, Canada

em¬

ployment of the existing industrial
capacity
and
which
has
even
started to

Allen 8C Company

economic up¬

United States; I refer to President
balance

Goodbody 8i Co.

eco¬

be said

now

to have been defeated and

in the

Hardy dL Co.

increase

September 24, 1959

Sakier,

Israel

Mr.

445,000 Shares

when I

me,

Street

Greenberg,

and

Secretary.
of

formed

securities business

Vice-President;
Schwartz,

has

of almost all Eu¬

bankers

the

firm.

New Lsue

This impor¬
far as can be

are

Jr., Presi¬
Vice-Presi¬

Securities Co.

sell

offices at

Officers

The foreign ex¬

ropean

tion

her in¬

offices at

Progressive Planners

CLIFTON, N. J.

of these Shares. The offer is made only by the Prospectus.

year.

has,

step

seen,

Co.

HILLS, N. Y.—

external

rowing

former
and

resumed

One is the introduction of
convertibility at the be¬

year.

a

Seventy-Sixth Avenue.

Officers

MAMARONECK, N. Y.—Edgar
D.

instance,

developments which are
great importance to the work

in¬

Binford,

Reed

policy,
obliga¬

greater

tions.

of

;v>

three-fourths of which have taken

place during the last three

the

Opens Inv. Office

to engage

now

billion,

$4.2

of

dent;
Richard
Len,
dent;
and
Frederick
Marschalk,
Secretary-Treasurer. Edward Seid-

Lentz Newton Admits

been made available from other
Building, members of the New
the
country
will
be
sources, e.g., U. S. Import-Export
York Stock Exchange, on Oct. 1
lagging
behind
in
the general
Bank,
OEEC,
American
banks.
will admit Frank
J. Greene
to
competition.
Through these different stabiliza¬
On Sept. 28 the Annual Meeting
tion plans, it has been possible to limited partnership.

It is

Reed

of Keith

KEW GARDEN

otherwise

of

and

President

George

At the

the Fund has granted

assistance,

the

Elberfeld.

repayable

are

within three to five years.

veteran

former general partner of

and

zation

these will

pro¬

business, Mr. Reed is

vestment business from

ning and the financing of stabili¬

and

14-year

144-37

actiyities

been in connection

A

vestment

of

kets, will develop,

Six and The Outer Seven,

as

members

it is probable that expanded mar¬

to The

and

Westheimer Branch

important

an

stocks

P.

Vice-Presidents

Stabilization
year

in

ducing properties.

Blodgett, Chair¬
and Frederick W. Page, both

Street

Reed

bonds, Texas
municipal bonds and mutual fund
shares, and will specialize in oil

research

panies and recommends the
chase

di¬

and

corporate
Keith

and gas securities as well

investment
the

currency.

Fund's

business

distrib¬

dealers

F.

com¬

a

secu¬

underwrit¬

as

has

is

in

general
rities

Street

funds

announced

staff of

taken

Ex¬

utors,

rects

coin¬

measures

North

engaged

been

Co. has opened a branch office in
the First National Bank
Building

portance of the public sector, gov¬

t

Wilson

the

and

of

The

have

again able to fulfill its
world

M.

panies.

authorities, pro¬
strengthening of the posi¬
sterling, to the extent

a

J.

million group

opposi¬

England,

have

opened

5738

at

•

Randolph, Chairman, and Fred E.
Brown,
President, of this $700

Suez

to

Increased

part

been

pressway.
The firm

United States.

problem of settling the ques¬
of the lowering of customs
duties, etc., in a matter acceptable

offices for the
firm

expan¬

ers,

been

in

that

thereby

Com¬

pany and new

member of the investment

a

Group

British

role

tion

Securities

poration

currency.

no

Presi¬

committee of Tri-Continental Cor¬

resources

foreign exchange diffi¬

is

in the

Central

of

B.

security

elected

basis

sound

economic

dent

Dallas

been

Tri-Conlinenia! Comm.

effec¬

observe

to

After the

sistance

I

continuous

a

has

is

has

proposal.

Fund

that

ex¬

inflation has

large and competition
I

of

part, I

my

lieve that the world
reached

rates.

world-wide tendency

a

rates.

change

interest

Delhi

crisis, for
instance, the Fund's extensive as¬

last
opinion duced

in

the

should

will

been almost

the

culties.

Whatever the solution will be to

increased

If

$4

has
to

case

by

the

switch

in

economy and
their currencies

of

create

Texas —Keith

veteran

dealer,

Wilson Member of

last

the

Per Jacobsson

the

resources

de¬

a

to

DALLAS,
Reed,

Central

$9 to $14 billion, of

interesting

there

balanced

a

order

to

re¬

therefore be in¬

billion

and

is

The

S.

during

The

$1

tion of

lowed

economic

activities

U.

the

increase

the

from

policies which at present are fol¬

opposite is the

activity

It

Central Securities

im¬

sion and, not the least, to maintain
the necessary credit worthiness.

proposal

September the

which has taken place is based not
the least on the interest and wage

the

authorities

gold

Keith Reed Heads

cre¬

measures

>

increased possibilities to intervene

of

rumors

the

considerably

expansion.

At

which

Dollar

devaluation has lessened

a

economic

present

of

dollar, I
have observed during my travels
in Europe this summer that the

creates

mand

Fears

Devaluation

eco¬

activ¬

nomic

ity,

Lessened

period

a

in

taken

more

stabilization

a

'

New

The

make

to

creased

tion

investments.
In

achieve

for

Fund's

and

more

been accepted by the parliaments
in a sufficient number of coun¬

tive.

rates

the

proposed Tat

was

annual
now

govern¬

achieved

be

may

capital
that

for

industrial

has

of the Fund and the Bank

which

again

once

in

Finally, the increase in the
sources

Europe

course

leave

not

Resources

wage

convertibility is

what

should

the

order

annual

and

(3) London is

tain

This

ated difficulties for the producers.

savings for industry
to hamper an eco¬
nomic expansion.
\
-

demand for capital is

warned

authorities

of

more

to avoid resumption of price inflation.

new

declined.

the advantage of the

Nevertheless, these countries have

the

of the Fund will
The

have

been to

news¬

IBRD

interest

interest

upswing;

prices

the capital market will

on

longer need fear

any

our

arer-ft)

decrease

no

exchange center;
far.

so

due

concerning the raw material pro¬
ducing, countries
whose
export

de¬

porting countries, but it has

As to dollar devalution fears, he found

Other observations

the

increase and that the government
not absorb too much sav¬

in

Swedish

a

which should affect the tenor of the IMF

paper,

that

means

to

reason

investment

should

that

Monetary Fund, Washington, D. C.

World's monetary fund manager stated

is

new

a

ings. The result is therefore again

By PER JACOBSSON*
Chairman of the Executive Board and Managing Director
International

There

look forward to

9

S.

Sakier

Palestine

The Commercial and Financial Chronicle

10

.Thursday, September 24, 1959

..

(1246)

voir

and

Air Transport

draft

charge to the consumer, the

ment

of

A review of the

appropriate

at

an

are

just completing

port

comes
moment. We

years
of
scheduled
commerc

air

i

a

1

the whole

did

winter sea¬

which meant six months, they
virtually no flying at all.

of that prog¬
airlines and

implications

in

the

of

terms

they operate can be
read from other indices—revenue
aircraft

10,000 mil¬
million in
1957; operating revenues up from
$1,000 million in 1946 to $4,000
kilometers
70,000

passenger

in

lion

1946,

in

million

1958.

But

by the

same

token, operating expenses up from

overall

an

second

the

IATA

developed into something re¬
sembling the sleek, silver-skinned
had

the

monoplanes of today.

agency for internati o n a 1

had

cooperation in

range to

Wm.

Sir

Hildred

P.

forty

million

100

meters

mph,

their

1,000 miles and their

all-

deficit

of

point 4 fatalities

million

100

per

kilo¬

passenger

to

down

kilo¬

passenger

meters.

of

Figures,

tell
only
More is to be

course,

Their speed part of the story.

up weight to 25,000 lbs. They were
flying the year round, flying at
night and flying blind. The serv¬
ices of the airlines had reached

transport aer¬
onautics.

185

to

increased

operating

$160 million.
The safety figures
show a reduction from 3 fatalities
per

by the time of that outrage,
World War, aircraft

But

sary

of
the
founding of

variety

of

goods.

I

with

is

It

lems

that I

in

eyes

so

concern

the

IATA

the

and

the

work

with

future.

The future is

have to.
them

that

Committee
Conference

Technical

prob¬

mainly concerned.

indicated

have

Technical

their

technical

the

am

They

rushing at

quickly. Indeed our major
is to digest the techno¬
revolution brought about

by the application of turbine pow¬

The

1920, aircraft had an effective
range of about 300 miles and a

anniver¬

immense

an

found

yet

the map; and I have not

on

seen

map
big enough to
the
air routes
of
the

a

show

all

world

in

their

detailed

er

to civil air

is

the

moment

a

operations. The jet
pre-occupation of

present

airlines

the

and

on

I

dwell

must

for

be

can

Immediately after the

the

war,

add

them.

to

To

give an
figures
of

ex¬

Since

Growth

Phenomenal

ample
without
the
World War II
growth of air transport I would
The development of air trans¬
that the smallest inter-city
helicopter operator among IATA's port since the end of World War
II has been phenomenal.
The de¬
members carries today as many
cay

an

spectively.
By comparison, the
four-engined intercontinen¬
tal jet aircraft now coming into
service have a capacity of up to
160
passengers;
their
still - air
range has been raised to over 5,000
miles and they cruise at more than
550 miles per hour.

large

Some

intensity

passengers

IATA

of

all
in

the

members

1920.

a

year

all

as

in

as much
the members of

many

bined

That
*An
for

the

by Sir Hildred
before
assembly of the British Assn.

England, Sept. 7,

of

Science,

war

needs

years

reconstruction

of

create

had left

com¬

unprecedented

an

air

for

war

transport.

Growth

numbers and what seemed at the
time

an

almost

bottomless

reser¬

or
inaccessible.
You can
anywhere from anywhere in

riers to the movement of

a
no

single

enough
from

a

fence

again
concern

his fellows.

can

shut

to

in

ever

him

In commercial terms,

which

large

it

and

of

result

has

led

the

to

up

complex jet

air¬

by payioad. A recent economic

by

survey
1

ICOA

indicates

assuming average

that,

operational

conditions, the productivity of the
Boeing 707-420, in ton miles per
hour, is more than 8V2 times as
great

a6

that of the DC-4.

as

course, productivity is not
whole story. This, and other

the

having been sold, this advertisement
a

matter

appears

such advantages as

the notable in¬
crease
in range over the years,
are
not necessarily desirable
in
a
commercial
sense,
unless the

of record only,

NEK' ISSUE

cost

of

doing the work

can

be

re¬

duced.

100,000 Shares

-•

'•

.

■.

t

-

■

''

■

Common Stock
(Par Value $.10

per

share)

Offering Price $3.00 Per Share

'

•

operating costs are the
normal
yardstick by which the
commercial desirability of an air¬
craft is assessed. Though the cal¬
culations
for
large jet aircraft
vary in degree, they all show one
trend: the direct operating costs
per ton mile are significantly re¬
duced. This is why the airlines
have turned to the jet. The op¬
erator produces and sells a public
service, the passenger seat-mile
and the cargo ton-mile. The only
way to keep ahead of the rising
costs
to

of materials

and

services

is

improve productivity and ex¬
the market. How well this

pand

25

September 24, 1959




Broad

St., New York 4, N. Y.

Market

descending curve
of fares and the rising standards
of living in many countries, these
postwar years have thus given the
airlines

their

first

market

mass

vinced

taste

and

they

this

that

is

of

future lies. The last

the

con¬

their

generation of

pistcn-engined aircraft
sented

the

are

where

repre¬

limit

absolute

of

the

productivity
which
could
be
squeezed from this form of motive
The industry cannot lower

power.

its fares by

cutting a non-existent
operating profit. The continuation
of
an
expanding
air transport
therefore
requires that the air¬
lines

themselves

avail

of

the

the

Since

price

of

the

and

jet

its

transport dictates that in order to
keep one jump ahead of our own
more

use more ef¬
economical air¬

means

aircraft of much

costs, airlines must
ficient

and

craft. This

productive

greater

capacity,
a larger
this increased

which must be filled with

payioad.

To

get

payioad, charges to the

consumer
This is a circle,

but not necessarily

for the

line service is

when

so

are

we

who

millions

machinery
province

Traffic

'

ences.

for

into

also

and

the

of

the

travel

to

full circle to the
creating suitable

us

for
rates

and

for

cater

can

Want

pleasure.
This brings
fares

one,

vast that present
infinitesimal
in
with what we hope

carryings
comparison
for

vicious

a

potential demand for air¬

the

Confer¬

'

Despite the complexity of world
airline

operations, the Conference
pattern of agreed rates and fares
has

been

extended

to every area
It has been flexible

of the world.

enough to keep
rapid
expansion
traffic
for

since

the

pace

of

the
and

with

routes

1946, and to provide

blue

ribbon

luxury

serv¬

ices of the North Atlantic and the

great fluctuations

in seasonal traffic.

The
the

fact

that

less

Conference

ever

part,

than

disapproved,
by governments, is

cation

of

their

close

of

3%

have

resolutions

been

in
indi¬

even

an

attention

to

Finally,
ment

has

sacrifices

this

of the

any

pattern

been

of

agree¬

without

realized

the

of

individuality of

airlines

which

are

a

part of it, and without interfering
with

the

normal

workings

of

and

beneficial

competition.

While

obligation

to

governments

maintaining their rates at
nomic

a

by

level which will not touch

off cut-throat

ate

one

an eco¬

rate

drain upon

wars

and

cre¬

public treasuries,

they have also been able progres¬
sively to reduce the price of air
transport to the public.
The Conferences are to be held
this year in Honolulu. There will
be three weeks of hard discussions
which will be of interest to gov¬

ernments, to the public and to the
airlines
themselves.
What
will

they face and what circumstances
will

govern

their discussions and

resolutions?

The jet will intensify
the everything. Not only is it a very
passengers are fly¬ productive unit of transport, but
ing the Atlantic today in Super- it will fly over half a dozen coun¬
has

worked

fact that

Golkin, Bomback & Co.

Mass

in

Thanks to the

the Conferences have fulfilled

Direct

THE HERITAGE CORPORATION OF NEW YORK

Lies

Future

the public interest.

Of

All of these securities

60%.

regional feeder services of less
can do trans¬
developed areas. It has also been
work, and is calculated by strong enough to withstand
many
taking average speed from engine drastic fluctuations in
exchange
start to arrival, and multiplying
rates as well as

high
away

the

port

and

with the affairs of

been

in

K., the reduction

the rate at which it

which

be

useful

is their markedly increased
productivity.
"Productivity,"
as
applied to an aircraft, refers to

The world has become

neighborhood

man's

man

U. S. and the U.
has

ticket1 in

the

must be reduced.

Statistics

craft

In a physical
sense, mountains, seas, deserts and
forests no longer constitute bar¬
his goods.

most

evolution
these

less than three days.

a

York,

1959.

The

mote,

and. the

parts of the world

to

world, but it is true.
There
is literally nowhere in this world
today which can be considered re¬

legacy of im¬
proved transport aircraft in large

address

Advancement

the

requirement

IATA did in 1938.

the annual

of

enormous

of

Many

airlines today carry

our

in

as

did

mands

the

get

of

industries

operating cost per mile are
assortment
of two - engined
and high, the airlines have been cri¬
four-engined aircraft, typified by ticized for paying an excessive
the Douglas DC-3 and DC-4, de¬ amount for speed. The fact is that
signed to carry 22 and 44 passen¬ the speed is virtually incidental::
the
jets carry more seats and
gers respectively.
Their still-air
what the airlines are buying is
ranges were in the neighborhood
of 1,500 and 3,000 miles, and their the lower cost per seat-mile. This
is the present position of the in¬
maximum
cruising speeds were
The ! technology
of air
190 and 227 miles per hour, re¬ dustry.
airlines foudn themselves with

,

to

price

manufacturing

greater productivity of the jet.

its implications.

and complexity.
But the picture
So, at one and the same time,
divided into two
would not be complete unless one the
speed of this new generation
out
to
link
Europe
with Asia, visualizes a network of services
550-year periods.
From
1919
to
of aircraft has more than doubled,
1939, we took the primitive aero¬ Africa and Australia; there were around the globe, spanning all of their
range has substantially in¬
plane which the First World War extensive systems in North and the oceans and connecting many
creased,
and
their
passenger
had given us and put it to work South America and the first links
thousands of cities on all the con¬
capacity has more than trebled.
in a rudimentary way in peace¬ over the oceans between the two
tinents
with
an
almost
infinite Aircraft weights
have increased
ful commerce. From 1939 to 1959, hemispheres
were
being forged. number of
possible routings..
fourfold, engine powers have mul¬
we have
applied the tremendous But I remind myself that even in
tiplied by a factor of six, and, of
The World Is a Single
technological development of the 1941 when I flew to Vancouver,
course, not to be outdone, manu¬
second
world
air
war
to
the Trans-Canada only had one aero¬
Neighborhood
,
facturers' prices have risen eight¬
which
could
climb
the
carrying of larger burdens over plane
This network, over which traf¬ fold over the
So we flew to the foot
spie period. Equally
longer ranges at greater speeds Rockies.
fic
shuttles
ceaselessly
and
in important,
the
aircraft and
its
and come at last into the era of of the Rockies and waited at Lethdaily increasing volume, consti¬ associated equipment have become
bridge for the one Lodestar which tutes one bf the
jet transport.
facts of modern
vastly more complex.
There are so many statistics in had the necessary power to get life.
It has become a cliche to
the world today that I hesitate over the mountains.
Jet's Productivity
say that the airlines have shrunk

years

the

earn

movement

persons

average

logical

ress

In

son,

of

where in 1938.

the

After dark and in the

only recently
we
passed
the

These

At¬

North

about 300 hours
$1,100 million in 1946 to $4,360
a year and spent nearly half their
million in 1958; and 1958 reveals
time
in the hangar for repairs.

transport

as

the

more

of

means

millions

excep¬

membership of IATA carried any¬

They could work

and

40th

carried

across

the

1958

In

year.

airlines

passengers

of the first
slow, but steady.

two decades was

in
1946, 90
900
million
1946, 3,000

in

lantic route alone than

speed of about 85 mph. Their payload capacity was about 800 lbs.

40

first

the

air trans¬

last

scheduled

development

The

general devel¬

opment of international

million

aircraft.

offer supersonic

before manufacturers

flown

kilometers

cars,

new

the scheduled air¬
few million

by

of the world—a

passengers
carried
million
last
year;

pools in
order to
Associa¬
tion's spokesman in pointing out that the air lines like their first
taste of the mass market and see therein their future. Thus, Sir
Hildred hopes fares and rates will be made too attractive for the
public to ignore, and he is confident new capital will be forthcom¬
ing at a faster rate than the 150% increase in the past decade. He
warns, however, that the jet system must successfully take over
sets,

the

as

many,

lines

washing machines and swimming
divert dollars into the travel market. So says the

vision

the

than

are

rates

for
of what is
income
in
countries, and for the ship¬

performed

Association must compete with tele-

International Air Transportation

rather

and

feasible

them

make

transport

fares

at

considered

The result in terms of the work

entering the act of increasing

jet's payioad and in lowering the

the

which

air

of

available

normal,
tional,

Association, Montreal, Canada
off the vicious circle from

services

technological development of the
war years provided the basis for a
continuous
improvement
in the

fa

To stave

and

research

scientific

of

the
now

progress.

HILDRED*

of the International Air Transport

Director General

»

}7—

trained flying
Moreover, the forced

aggressive

performance of aircraft and their
related services which is still in

The Mass Market
By SIR WILLIAM P.

of

personnel.

is

testified

by

more

constellations than flew the route

tries

in

loosen

DC-4s when

Conferences

the IATA Traffic

at fares
which have been reduced by 30%
in shillings and pence. In terms
of the working time required to
began

and

in

as

still

many

hours;

further

it

will

frontier

for¬

malities; it will break down iso¬
lations; it will give a further
impetus to economy travel; it will
demand bigger markets; it will

v

Volume 190

eater
a

for

Number 5884

.

which

world

a

.

The Commercial and Financial Chronicle

.

shows

rising standard of living and an

increasing

to travel;

urge

will

it

stimulate the

building of hotels and
tourist countries; it
will intensify the present volume
motels

of

in

all

advertising, for travel is only
attraction

one

posable

people with dis¬
The volume
of

dollars.

travel

want

we

with

to

must

television

sets,

the

vert

dollars

compete

new

washing mahines and
pools and we must be

cars,

swimming
sure

to di¬

the

travel

into

market.
We

must, in short, get passage
still
dam

large river. Lower the height

a

of

the

dam

even

little

a

and

a

very

large volume of water will

flow

over.

flow

Raise it and

stops.

It

Conference

the

is

to

with

fares

governments

the

over¬

of

task

Another

us

and

I

experience,
the

by

still

that

fact

14

Back

stand

amazed
international

80

carriers, representing 50 countries,
varying equipment, with dif¬
ferent lengths of route, differing
classes of business, different out¬
looks
and
prejudices,
different
languages, currency, religion and
standards of living, can get down
to

discussion of worldwide rates

a

fares,

or

matters

agency

matters

and

cisions.

baggage

a

reach

allowance,
interline

or

unanimous de¬

This is demanded

by the

operational logic of a world trans¬
port system and because every
has

government

the

right

to

ap¬

disapprove and amend the
charged their people by the

prove,

rates

which

order

make

to

them.

serve

the

operators give up

In

system, all the
little of their

a

the

attractive

to

000

BY

CARLISLE

State

Department

will

death

relief

and

when Khrushchev finally ends his

ous

visit.

the

breathe

sigh

of

They believe that

how

much

is

long

one

no

matter

he

pick

with

the

he

is

harm

has

still

$593,000,-

spent

lower

combined with
prospect looks

be

can

fares,

the

bright

say

turnover of

lars, did

though

even

the

4,000 million dol¬

over

inordinate amount of
the year with

an

finished

and

And

160

loss of

operating

dollars.

this at

million

time when

a

all finding new capital
unprecendented order of

are

an

magnitude, for their new jet fleets.

Capital investment in the airlines
the last 10 years shows an

over

increase

the average.

on

will they be
greater
in the next few years?
this,

done

vastly

find

to

amounts
am

150%

of

Having

a

confident that the answer

affirmative; and I am not being
Micawber. Our position is that

of

any

which is in

industry

the

of retooling at the same
time as it is carrying on its nor¬
mal commercial activity. But we
are also an
industry with a high
process

external

sensitivity to temporary

vicissitudes. Even if there is a de¬

pression,

go on drinking
eating
food; but a

people

and

water

slight recession will check pleas¬
ure
air
travel
very
quickly.

Happily,

however,

a

brings

are

rather like

of

phase

high

prosperity
We

rewards.

child's tem¬

a

the

routes

Planes

We

have

transport

recognize

to

is

opments in the
the

that

air

"system"

a

must look at new

and we
technical devel¬

light of its place
of, facilities

chain

whole

arrangements

which

are

re¬

quired to get a payload from point

optimum speed,
safety, and economy. We can cope
with the jets; and the terminal
facilities, the airports, the run¬
ways and the navigation aids they
require will come along in phase.
to

point

with

But if manufacturers,

inspired and

the dedicated designers
in their project offices, suddenly
throw at us a supersonic aircraft
which can do 2,000 miles an hour
before the rest of the system is in
driven by

.

of

or

a

across

hands

Los

Angeles, he will go

carriers.

many

With

side

must

not




hurry

us

bitter

Mayor

Poulson

up

of

of

the

by

this

yielding

in

the

interests

autonomy

whole,

will be intensified
equipment we are now

the

buying.

I

sometimes tempted

am

to

think

of

international

our

that

children

be

the

on

higher level

Department

subjected

observance of

is not
I

sovereignty'

themselves
a

rule of

the

to

law. That"

theme for this paper, but

a

know

many pioneers in the in¬

ternational

other

officials
in

mayors

have
mak¬

air

business turn their'

thoughts in this direction after

a

trols"

or

not is the

Senator

apparently thinks

their

constituents.
say¬
as a

duty but I told him off."

Premier

before

good

that

taste.

when

he

¬

was

appeared
hardly in

effect,

Lawrence

body

In

would

that

offer

the

like

he

immediate
what

tional Press Club, asked the Rus
sian

who

With

so

armament

impact.
craft
ond

would

For

have

example,

manufacturers

or

third largest

are

Khrushchev

On

the

had

other

been

hand,
tickled to

have
ther

It
ence

is

with

labor

has

hit

the

been

of

and

I

will

not

go

far

so

to

as

working model of

we

and

for

cratic

process

basis

although
that

lieve

on

in

opinion

further

of

1

is

Me.

Finally

I

would

what

that

say

me

is the

increasing knowledge and friend¬
ship on the part of all peoples
Our job
enormous

ensure
that
the jets
will carry
increasing numbers of human be¬

ings in safety with the object of
creating better standards of living
and a higher degree of
friendship,
mutual

Common Stock
(Par Value, 10< Per Share)

confidence

national

and

and oils,
merchandise and
products of the Corporation have a wide variety of uses as components in the
manufacture of soap, shortening, cooking oils, plastics, rubber, drugs, animal feeds,
paints and other chemical products. All but 10% of the fats and oils purchased by
the Corporation are resold without processing. The balance is rendered and refined

science

the

Corporation's refining plant in Dallas.
j
production facilities of the Corporation are located at
3007 McGowUn Street (P. O. Box 5998), Dallas, Texas.
The executive offices and

inter¬

understanding
at
the
people. If the aim of

is

to

do

honor

Corporation is the buying and selling of animal fats

vegetable oils and the rendering and refining of anima! fats. The

Offering Price: $1.00 Per Share

level of the

the

to

human

Offering Circular Available from

spirit, we have in the aero¬
plane, that complex of techno¬
logical
excellences,
one
of
the

finest

instruments

for

man

his

own

ever

well

made

by

being and

JbarsDtt, ffflttrpljg $c fflrt., Sttr.

happiness.

Now With

50 BROAD STREET

ST.

LOUIS, Mo.

Gerst has

and

NEW YORK 4, N. Y.

Telephone BCwIing Green 9-5190

Teletype NY 1-2402

Newhard, Cook

(Special to The Financial C-.ifonicle)

become

—

William

associated

A."

Please send

with

Braman-Schmidt-Busch, Inc.

me a

copy

of the Offering Circular relating to Casco Chemical Corporation.

NAME-

ADDRESS—

CITY

D.

Roberge & Co., 124 Lisbon Street.

San

with

(a Texas Corporation)

at

James

in

now

Casco Chemical Corporation

The business of the

—

Riordon

ous.

keeps the job sweet for

-

confer¬

the statement

the

ac¬

reason

(Special to The Financial Chronicle)

mar¬

But I do be¬

in Chap¬
Chicago Convention"
that
"every State has complete
and exclusive sovereignty over the
air space above its territory" is a
doctrine which must give concern
to the Almighty.
National sover¬
eignty undiluted by the rule of
law becomes ever more danger¬
ter

that

unpleasantness.

300,000 Shares

it

Mr.

With Gaston Roberge

ISSUE

worldwide

a

my

close to that.

comes

is far¬

and

hope Khrushchev's visit ends
no

say

NEW

it

Berlin, something will be

demo¬

a

war

get together on
than the question

small.

cessful

on

main

our

can

more

complished
in

moon

Khrushchev

generation's experience of the co¬
operation which IATA produces
amongst
the airlines great and

that IATA represents a small suc¬

moment's

than this country.

if

LEWISTON,

leaders

a

provocative action by
They
are
undoubtedly

Eisenhower

air¬

the

we

destruction

wreak

throughout the cold

away

nothing

employers in
Talk of dis¬

ironic that in

which

any

Even

sec¬

stock

be to

ahead of us in guided missiles,
particularly long range missiles.
Whether they could loose them
against us with any degree of ac¬
curacy
is questionable but they

our

the

with

take off at

This

Russia.

an

the

bases

and

against

terrific

a

can

deterrent

much of it de¬
dis¬

him if he was a coward the country today.
during the regime of Stalin, if he, armament makes the
kept his head low and stayed out ket go down.
trouble.

on

air

Russia.

voted to waging the cold war,

asked

of

be

his

troops from Europe
serious, to dismantle all

notice

determine

to

any

on

our

planes

much of his

would

so

have Russia completely ringed and
from which
our
bomb
carrying

seen.

announced

as

except

peace,

more

the

of

President

be

so

study

affect

economy.

to

has

here\

over

of

withdraw

Humphrey, the garru¬
energetic Minnesotan,

and

Khrushchev

would have to do would

we

not

question.

skirts

with

be

group

any
general
disarmament
plan, for example, the first thing

in

they would be effective

lous

They want to be by way of
ing: "I was courteous to him

to

this

terms.

and,

remains

find

to

In

offering it, he accompanied it
by an acceptance of "controls."
This is something we long ago pro¬
posed. What he means by "con¬
Whether

con¬

Khrushchev must have

come

own

In

tion of local politicians is to say
something insulting to clear their

politics, we—and
The question which William H.
grandchildren—_ Lawrence, President of the Na-.

a

little of their national
and

mouth

and

in

happier position if
voluntarily yielded up a

nations

with

away

his

welcoming speeches to avoid
irritating remarks.
The tempta¬

cooperation,

of

in

ing

Cooperation
This

taste

life.
The

International

phase to accept it, we shall run Newhard, Cook & Co., Fourth &
into difficulty.
We must advance Olive Streets, members of the
like an army in good order: the New
York
and
Midwest
Stock
blanks
and
the center,
the air
Exchanges. Mr. Gerst was previ¬
cover and the logistics must main¬
tain
effective
contact
and
the ously with Fusz-Schmelzle & Co.
technical

a

cautioned

Pleased

promise of this development and

Supersonic

Against

Cautions

and

man

a

package thousands of miles

which it makes possible.
is
to
consolidate
the

perature, soon up, soon down.

in

yet day in
airline ticket or one

airway bill will take

would

airlines last year handled a record

I

of

the

considered

makes

apostle

meantime, Khrushchev's
disarmament proposal has caused
considerable
furrowing
of
the
forehead in official Washington.

that he will feel unfriendly to the
United States for the rest of his

bright.

is

at

and

leaders

been

apparently is his inability to
the people of this country

has

the

In

Bargeron

one

transport

able

Carlisle

day out,

1946, but it is

spent in

sensitivity
coefficients."
This
Study
indicates
that
for
every
1% increase in the dis¬
posable income of the U. S. con¬
sumer, he will spend 3% more on
air transport than he did before.
It was the highest figure in the
table.
If
this
sensitivity to air

of

York,

labor

workers,

take his visit seriously. Very few
of our citizenry believe that he

against

the

long time. Jim

electrical

amazed

What

bodily
one
of preventing such
as
happened in New
Los Angeles.
His con¬

with

the

a

make

of

question

a

of

of

thought to have been

never

mad

happy meeting.

a

New

such

business arrangements of the

studying what they call "in¬

they

in

complexity;

only 0.2% of the total spent

work

Club

greatest

come

an

resolutions

Economic

and

over

try in 1957. U. S. economists have

I

rate

transport of all types.

was

been

other

and

and

re¬

belligerent. %

so

remarks

San Francisco apparently was

increase of 460%

goods and services in the coun¬

on

agreements

like

live with. We
fares

Soviet

glowing

our

been

general.

him

but

may

none

of

the

got at

His

longer

no

incidents

as

an

is

what

alone

in

protecting

David.

if

world

It

Eisenhower at

Camp

occasion.

he

can

system.
he spent

another defender
was

servatives.

ambassador

only all over this coun¬
try but to Europe and the rest of

President

But

this

an

which

a

meeting

expect some sharp
No man ever living
greater forum than he did

ference

one

back

Communist for

have

could

York and

thousands

sent

in

is decidedly to the left of center,
while the others at the

the

went not

scheduled

his

he

a

on

without

visit

Russian

present

had

and

up

appear

questioning.

he will not

leave

before

club,
fully understood from previ¬
experiences of Mikoyan and

that

provoked,

to

receptions

have

time

our

30s

Joe

Carey
The

many more

but which each

1957,

of

early

Curran,
system,

BARGERON

autonomy,
or
their
managerial
function, or shall I say their sover¬
agree¬

plant and

a

air

on

This

There

Is

potential is these. In

Americans

too

ignore.

Potential

The
The

find

will

the

ports of conditions in Russia.

eignty in order to reach

approve

can

public

defender

in

considerable

...Ahead of the News

ment,

which

dent

greatest

years

with

airlines

and

after

11

Francisco, Walter Reuther, Presi¬
of the
UAW-CIO, was the

FROM WASHINGTON

I

comment

is that,

come

which

rates

and

the

general

make

must

sys¬

bear.

these

recognize

facts of the life about
up

will

and

fores and cargo rates down
further. The fares are like a
on

beyond what the rest of the
tem

(1247)

-TEL.-

-STATE-

Gaston

J.

12

The Commercial and Financial Chronicle

(1248)

Thursday, September 24, 1959

...

This attitude may be right in the

The London Stock Market

of

Until and After the Election
By PAUL EINZIG

fiksly prospects in the event of

not to

jiii the

be

contention they

Socialist
anti

taxation

as

well

to the

as

assumption of

Poll figures halting

by

Bank

Yet

England's boomlet.

LONDON, Eng. — The general that a Socialist Government
campaigns are
in full would never resort to disinfla¬
swing.
The main Parties have tionary measures if in doing so it
published
their election mani- would check the rise in produc¬
Jestoes.

tion.

They

offer

bigger

and

better

bribe

to

that

the

the only

this

is

under

indication
Labor Government,

a

would

Britain

festo

face

to
on

confirms

earlier

in¬

an

statements

festo is full of

concerning

costly

equities by the Government.

prom¬

the

but

reserves

a

The Socialist mani¬

creased scale.

mani¬

have

inflation

of

revival

Conser¬

vative

Nor

:

el ectorateJ
The

acquisition

the

of
The

of the National Insurance

Socialist

Fund,

any

vested

dose

abroad.
im¬

t a g

equities.

to the admission that the Govern¬
Paui

certain

and the differ¬
that inflation

wins,

will be merely

Socialists

would

be

even

bigger.

be

may

such

by

William M. Adams

expects

them

bonds,
fall and

to

gesture

a

to

would

flight

a

loans

inevitably

a

any

lead

electorate

which

does

by it, not being in
invest

for Wall

Need
A

position

to

would

Decline

Street

substantial

Street

benefit

not

a

speculate.

or

in

decline

call

halt

a

Wall
this

to

would

It

inevitable

become

ing

Wall

and

Street

which would

salable except at very low prices.

for

investors
Conserv¬
Edward Glassmeyer

majority.
For the narrow¬
of the yield between London

substantial

un¬

the

if

such

not

in

The

Labor

does not ad¬

Party

claims
that
its
additional expenditure would not
require additional taxation, be¬
It

also

it would be met out

extra

proceeds
resulting from

of

the

Government

increased

which

finance

the

Treasury

aid

Bill

would

inflationary

of the

to

with

requirements

produce
condition.

its

Street

an

of

in

issue,
highly

a

Why Stock Market Firmness?

existing taxes
expansion of

It is probably because of the
anticipation of such developments
argument is that had it not been that the Stock Exchange has dis¬
for Mr. Thorneycroft's restrictive played firmness lately in spite of
measures, national income in 1958 moderate declines in Wall Street.
would have risen to a sufficient Nobody
can
be certain at this
-extent to ixring the Government stage
whether the Government
an
additional revenue of
£450 will really succeed in returning
It is true the Gallup
million
available for
additional to office.
hospitals, schools, pensions etc. Poll shows a 5V2% lead in favor
an

the national income.

There

of

is

course

The Socialist

an

answer

far

that, but the Conservatives have
not thought of it.
For had it not
for

the

unrestrained

greed
of the Trade Unions, actively en¬
couraged by the Labor Party, the
need for restrictive
a

measures

check in the expansion of

Labor

covering
of

Party's promise of
additional expenditure

increased

resulting

from

taxation

expansion

yield
means

Conservatives

from

conclusive.

but

In

that

1950

is

the

Gallup Poll showed a twice as
big Tory lead and yet the Labor
Government

with

won

a

narrow

margin.

lead¬

production
would
never
have
arisen, and national output would
have continued to expand.
The

the

of

to

would

neither

an

The

in

is

probably

that

in

case

would

of
be

the

realization

Labor

a

victory

unfettered

infla¬

in

of

it.

of

halt

the
as

probable

result

mistic

it will

the

of

effect

expectations

It ought to be realized

anti-Capitalist attitude of
Government.

become
opti¬
Stock

hand

re¬

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

any

of these securities.

146,712 Shares
Southern New England

Company

Labor

a

the

and

festo

gave

there

would

an

be

undertaking that
none beyond
the

re-nationalization

of

and

steel

Price $40.25

threats

in

addition

against

to

industries

anti-Capitalist feelings
accumulated during eight years in
opposition would be let loose in
form

in

of

anti-Capitalist

meas¬

private sector

the

of

the

economy.
'

;'

i

VT.'-4

■}.

Stewart Embanks Co.

SAN

-

will

Prescott,

admit Matook R. Nissim
J.

Block

to

and

partnership.

With Ball, Burge

Shepard

installed

Dec.

The

Harriman

$3.0

billion

$125.4

which

billion.

invested

brought the

In

$10.1

internally

Incorporated

Bear, Stearns & Co.




Hincks Bros. & Co., Inc.

Cleveland

Convention,

President and Vice-Presi¬

addition

billion

and

the

in

to

total

net

the

$3

expansion,

remainder

from

Net working capital
of U. S.
corporations, excluding banks and
insurance companies, increased
$3.0
billion
during the second
quarter and amounted to $125.4
billion on June 30, 1959, according
to estimates made public by the
Securities and Exchange Commis¬
sion. This rise represents the larg¬
est quarterly gain in net working
capital since the early 1950's, and
reflects an increase of $7.7 billion
in current assets partly offset by
a
$4.7 billion increase in current

liabilities.
accounted

Manufacturing
for

$1.7

billion

groups

of

the

$3.0 billion increase in.net work¬
Trade

firms

had

an

Corporate holdings of cash and
Government

S.

U.

amounted
end

to

$55.6

securities

billion

at

the

of

June, 1959, an increase of
$1.9
billion
during the
second
quarter. The ratio of these two
Items

to

total

notes

taled

$2.7

and

Mid¬

(Special to The Financial Chronicle)

PORTLAND, Ore.
Adkisson

is

now

E. F. Hinkle &

Building.

Loren W.
affiliated with
—

Co., Inc., Equitable

to

up

of

which

million

in

raised

was

equities

Other
ceivable

and

accounts

and

payable

eral

income

tax

$900

million

to¬

reflecting

earnings

liabilities

liabilities had

$1.0

rose

improved
corporations during

of

the second quarter.
a

Other current

quarterly gain of

billion.

In

addition

increase

in

to

the

$3.0

billion

net

working capital
during the second quarter, corpo¬
rations
invested
$6.9 billion in
plant and equipment and $800
million in other assets. To finance
this

$10.7

billion expansion,

porations

cor¬

estimated

have

are

obtained

about

$8.3

to

billion,

over

75%,

from internal sources—de¬
preciation accruals and retained

earnings.
vide

the

External

net

new

from

sources

pro¬

balance of funds needed

consisted

and

of

stocks

$800
and

million
$1.6

in

billion

long-term borrowings.

current

York

New

Exchanges.

301h

$82.8 billion, an increase of
billion from March 31. Fed¬

with

the

June

increase, corporations

75%
$800

ner

of

of

as

billion

$1.8 billion in long-term debt.

and

notes

increased

accounts

$3.8

re¬

billion

A. T. Haviland
Amidee

T.

Haviland

associated

Merrill

&

away

Lynch, Pierce, FenSmith, Incorporated, passed

Sept. 18 at the age of 66.

during the second quarter and at
the

Wertheim & Co.

Inc.

Largest quarterly gain in corporate working capital since the early
1950s is reported for the second quarter of this year. It came to

v

mem¬

With E. F. Hinkle
Ripley & Co.

Co.,

York
Louis

3.

Building,

Corporation

s

&

new

Union Commerce

■

Goldman, Sachs & Co.

St.

the slate at its Annual

on

liabilities,
CLEVELAND, Ohio — Mrs. one rough measure of corporate
Margaret B. Kiley has joined the liquidity, amounted to 43% at the
*
•
staff
of
Ball, Burge & Kraus, end of June.

west Stock

The First Boston

Angeles

New

Co.

bers

^

Los

4, 1959. at the Americana, Bal Harbour, Fla. Nomina¬

be

FRANCISCO, .Calif.— ing capital.

(Special to The Financial Chronicle)

Copies oj the Prospectus may be obtained from any of the several underwriters
including the undasigned, only in States in which such underwritns are qualified to
act as dealers in securities and in which the
Prospectus may legally be distributed.

Detroit

Co.

&

Walker &

II.

G.

Stewart, Eubanks, Meyerson & increase of almost a billion ac¬
Co., 216 Montgomery Street, mem¬ counting for most of the balance.

Leonard

share

per

transport,

that don't behave themselves. The

will

(Par Value $25 Per Share)

Company

Co., Inc.

Shepard

Mani¬

Labor

bers of the New York and Pacific
Coast Stock Exchanges, on Oct. 1

Capital Stock (Common)

&

Weedon

&

Corporate Working Capital Up Sharply

For the Labor Gov¬

To Admit Partners

Telephone

dents

alizations.
The
British
public
wants, however, no more nation¬

v-;;..:'
September 22, 1959

Eosworth

C'rowelJ,

Elyth

tion is tantamount to election.

that in¬

pent-up

prospects.

Eraun,

Newton

A.

Nov. 29-Dec.

of 1945-51 expressed its
anti-Capitalism mostly in nation¬

that

speculators to take a
of
election

Crcwell

Glassmeyer

The Association will act

of

ernment

vague

gardless

the following nominees for Vice-

are

♦Nominated for third term; has been Vice-President since December 1957.
♦♦Nominated for second term; has been Vice-President since December 1958.

vestors, British or non - British,
have good reason for fearing the

equities would be accentuated by
purchases
for
the
government,

investors and

Shepard

general public.

road

many

O.

16-18, Santa Barbara Biltmore Hotel,

Hagan

Adams

Robert O.

Exchange and through the Stock
Exchange on the attitude of the

tion, and that the resulting rise in

induced

Mr.

H.

Warren

George

the

on

with

M.

♦•Edward

Poll

less
a

William

**

equities
change in

a

Newton

President:

British

case

A.

following the Fall Meeting of the IBA

Governors, Sept.

Named

Wall

a

made

was

Santa Barbara, Calif.

figures against the
government.
Absurd as it may
sound, the more probable a Con¬
servative victory it may appear

ures
is

be

Gallup

the

This advertisement

only chance

boom

alizations,

It

there

the

the

of

Board

to halt

reverse

setback

a

in

selling

sufficient

be

boomlet

Without

result

would

American

announcement

*

mit that its promises are inflation¬

Robert

Exchange makes it de¬
cidedly less certain, owing to its
effect on a large section of the

Government

would

George

Stock

the

become

from

which

Such

CroweU

H.

victory, and.
victory is not in the bag.
means.
Indeed the rise on

ative

it

Warren

Conservative

speculation of British
on
the assumption of a

lose their purchasing power.

is bound to be inflation, no matter

under

of

this

foreign
exchange
seems to display an over¬
optimism.
The firmness

that

Einzig

of this auction

side

though

the

ment does not trust its own

onist.

outcome

which

this would amount

But

ster¬

sterling during the import sea¬
son
can only be accounted for on
the basis of the expectation of a

are at present
in¬
Government loans,
would be switched into industrial

diffi¬

no

culty in out¬
bidding
its

•

the

The

of

in

out

of

feel

defend

to

case

even

market

which

manifesto

ing to

America,

Association, and partner, Bacon-, Whipple & Co., Chicago, 111.

ling.

election

been

of

President

credit squeeze and high
which will be neces¬

a

obvious,

cause

Association

current

rate,

in

sary

Conservative victory, and sees

a

might

government

trol

The writer explains why a Labor victory spells inflation,
be attributed to

only a substantial decline in our stock market or changed Gallup

ary.

William D. Kerr,

measures

The

fh'ss

ence

by

pelled to reinforce exchange con¬

yet done.

a n

the Investment Bankers

announced

was

from

and

Capitalist

-

would drive large amounts

wonders whether the market's current strength can

The

it

Meanwhile the flight

higher tax yield for more government spending, the British columnist

has

WASHINGTON, D. C.—John C. Hagan, Jr., President and
Director, Mason-Hagan, Inc., Richmond, Va., has been nominated
for President of

Labor Government to

a

supplies the answer which, he finds, the Conservatives have nol as

ises,

Receives Slate for 1960

.

realize

to

relaxed, and it would take some

other

would induce expansion from which it could obtain

want

haste, in order to trans¬
fer their capital abroad while the
going is good.
Exchange control

from

As to the Socialist

by Dr. Einzig.

would
a

reinforce it.

unlikely since the Gallup Pol! erred about the Tories

so

I860 election—are charted

Holders
them in

weeks for

Labor Party victory—held

a

a

is

of the London Stock Market between now and the election

course

and

Socialist victory is bound tosharp fall in ordinary shares.

a

be

The

Investment Bankers Association

Jong run, but the immediate effect

to

end

$106.4

of June, ,1959,

billion.

estimated at

amounted

Inventories

for 7f.""
At

2

if

Anthony J. Cortese

are

level of $81.8

billion,
a
quarterly gain of $1.7 billion
with '
ufacturing accounting
a

billion.

June, 1959, trade

Anthony J.
with

Van

Cortese,

associated

Alstyne, Noel & Co.,
New
York
City,
as
a
market
analyst, nested away Sept. 18 at
the

age

of 49.

Volume 190

Number 5884

.

.

.

The Commercial and Financial Chronicle

September survey made by Securities

U. S.

Exchange Commission and
Department of Commerce reveals scheduled
capital spending will be
up 9% over last year and about
10% below that for 1957, The

xo

ae

new plant and equipment

seasonally adjusted annual

rates

of

are

S34.3

Outlays

are

£?S,Par?i?
higher than

now

solve

to

total

$33 Vi

billion

in

of

second

half of

represent

this year, as

it

tation

companies

are

Both railroad and other

anticipating rises

of

more

than

transpor¬

industry.

The small scheduled decline
expenditures is attributable to the electric power

1958

Percent

(Latest Survey)

Nondurable goods industries

12,444

6,020

5,827

5,964

6,424

6,447

+

Mining

941

996

932

Railroad

1,032

753

1,500

2,024

1,900

6,088

5,840

6,143

9,310

10,919

9,790

30,526

33,255

31,792

Transportation, other than

rail

Public utilities

to these important
landing in Sweden

Union

Commercial and

other___

Total

4

Practically all the major industry groups anticipate a higher
seasonally adjusted rate of expenditure in the second half as corn-

have

tapering off indicated for the final

billion

than

more

planning outlays of $12.4 billion in 1959, $1

in

1958

earlier surveys this year.

and about ihe same as anticipated in
Although expenditures by both durable

itures of

$6.4

goods

billion

manufacturers

in

1959, 8%

have

more

than

in

1959 outlays;

billion

Downward

were

program

6%

is

above

last

year.

is chiefly responsible
stopping the long uptrend in
I do not agree. Last
year's decline in our exports was
due largely to a world recession
which accompanied our recession

also indicated for the chemical industry while the paper in¬

dustries have

raised their spending plans.

here

Most other nondurable

in

goods industries anticipate little change from estimates reported

sions

three months ago but all expect increases from last year's outlays.

In

All nonmanufacturing iudustries with the exception of electric

utilities

increase their

expect to

outlays this

Record

year.

of

new

is

equipment purchases by the airlines are mainly responsible for the
rise
in
outlays of nonrail transportation companies although
steamship
creases

lines

over

and

companies also are planning
The analysis of plant and equipment

trucking

last year.

sample

data,

also

was

and are compiled from reports on a compahy.
separate reports for plants or establishments.

program

absorb

amounts.

will

be

than

less

of

Some

closed

to

us

usual

their

these

markets

entirely.

So

far,. Euromart has not hurt our
exports much, perhaps because it
has been slow in getting under

Frank Sassa

Mo. —Paul V.
Faron has been added to the staff
KANSAS

of

Bell

R.

E.

City,

Co.,

Wornall

4627

Opens

MANHASSET, N. Y. — Frank
Sassa has opened offices at
112
Andrew Road to engage in a se—
curities business.

Road.

way.

Challenge,

Not

Threat

G. A. Pfuhlmann Opens

Philip Levine Opens

WHITESTONE,

BROOKLYN, N. Y.—Philip Le¬
vine

is

business

engaging
from

in

a

offices at

securities
16

Court

N.

Y.—Gustav

A. Pfuhlmann is conducting a se¬
curities business from offices at
7-44 Leggett Place.

jg challenged also bv the

now

ize

busy with

Progressive Securities

KEW

GARDENS, N. Y.—Robert
is engaging in a secu¬

Minsky

rities

business

from

offices

120-60 Queens Boulevard.



,

at

Progressive Securities Planning

Corp.

is

engaging in

a

securities

business from offices at 545

Avenue, New York City.

Fifth

a

scare

successful
Russia

In

such

in

would

order

an

have

to

The

&

is

Unless

firm

U.

trade

alliance

between

tions

mark,

—

Japan

na¬

Sweden, Norway, Den¬
Austria,
Switzerland,

Portugal,
Free

Market

and

Trade

as

herself

—

into

Finally,
challenged by
stature of Russia
area.

a

of

of Charles L. Holton.

Henderson

has

been

Los

Angeles for the past 12 years

and

previously Vice-Presi¬
Holton, Hull & Co.

was

dent of

j

the

the Common Market, and
proposed Outer Seven Euro¬

With Harris,

Upham

i

(Special to The Financial Chronicle)

Free Trade Area now being
promoted by Britain. In the mean¬
time we must fight inflation, keep

!~

pean

our

costs

down,

productivity.
to

our

and

boost

our

This is primarily

union

labor

leaders,

up

who

DURHAM,
Jennings

Harris,

is

N.

C. —Michael

now

Upham

Building.

He

connected

&

was

Co.,

formerly

Reynolds & Co.

Tbn announcement is neither
to

an

offer to sell

solicitation of offert

nor a

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

A NEW ISSUE

SEPT.22,1959
500,000 Shares
l:

Class B

(Non-Voting) Common Stock

(Par Value SI. 00 per Share)
Price

per

Share — SI1.00

Of the 300,000 shares of Class B (non¬

voting)

common

stock offered by the

Prospectus, 200,000 shares

are

being

The Company

Copies of the Prospectus
the

net

proceeds

states in
arc

may

be obtained from

undersigned, and other dealers, only in the
which the

qualified to act

which the

undersigned and other dealers
as

Prospectus

£

dealers in securities and m
may

be legally distributed.

J. A. HOGLE & CO.
Salt Lake

are

shall receive the

of the sale of the entire 300,000 shares.

our

kets.
We

employees,

officers and directors of the Company.

uul

mar^

in

dous

world

These

will

eign trade.

the midst of tremen¬
economic

deeply affect

changes.

our for¬
They will also test to

en¬

gaged in the securities business in

is

exporters in world

the

to

Exchange

Sept.

name

Mr.

S.,

the

of

as

the

Eventually,
our
side
be strongly bolstered by a

solid

successor

Stock

membership formerly standing in

panicky, we can hold our own in
any such trade contest with the
could

Holton, Henderson

Holton, Hull &
1, 1959, and the
membership
of
Mr.
Henderson
represents
the
transfer
of
the

become

we

of

became

Coast

Co.

establish

the foreign trade of
much
greater than

now

West

firm

Co.

member

kind of a gold international
equivalent for the ruble.
Right

Stock
Division,

by Thomas P. Phe-

Pacific

be

some

the

Angeles

Los

announced

&

mem*

lan, President of the Division.

enterprise,

to

J.

Robert

Exchange,
is

appear

so.

of

Co., Los Angeles, Calif., to
bership in Pacific Coast

wage

do

Calif. — The
Henderson,

ANGELES,

President of Holton, Henderson

She

plan to organ¬

the non-Common

increasing

I.

of

crowing

importance of Great Britain.

commerce

Street.

Minsky Opens

LOS
election

lot

100,000 shares shall be offered to

foreign trade need not be
in a long-term period of decline.
Our trade position is not so much
threatened as it is challenged by
the European Common Market. It

is

,

*'•

-

purchased by the "Underwriter" and

Our

With E. R. Bell Co.

■■

■

ALBERTSON'S INC

abroad.

basis and not from

(Special to The Financial Chronicle)

a

to be in
such an eco¬
though she may well

due,

to political ten¬

opinion, the real impact
Euromart on U. S. foreign trade
yet to come.
As this united

rwill

jurisdiction; and a large sample of nonregistered companies, un¬
incorporated as well as corporate, reporting to the Department of
Commerce. The estimates presented are universe totqls based on
the

measure,

of France, West
Germany, Belgium, Luxembourg,
The Netherlands, and Italy
gathers steam, many traditional
European markets for our goods

ex¬

-

Exchange Member

my

trade

in¬

penditures is based on estimates by industry groups.
The basic data were derived from reports submitted by corpora¬
tions registered with the Securities and Exchange Commission;
transportation companies under Interstate Commerce Commission

It

home.

at

some

304.

representing Wall

teams

U. S. exports.

their $2.6

gross

of

firms.
•

Euromart,

for

adjustments

Club,

a

net

a

Exports

think
that
the
formation of the European Com¬
mon
Market,
sometimes
called

Petroleum

1958.

companies have lowered their scheduled

in

people

Many

expend¬

programmed

thus

and

prosperous

Downturn

were also unchanged
previous anticipation there were changes for some of
the component industry groups. In the durable goods group, iron
and steel companies reduced their anticipated expenditures for
1959 while stone, clay and glass companies raised their estimates.

the

Nondurable

with

J.,
with

abroad.

goods and nondurable goods manufacturers
from

reducing tariffs in an
promote
international

to

help other nations
than
our
own.
This has helped to attract the cur¬
rent large inflow of goods from
less

Industry Programs
are

been

trade

in

upturn

effort

period.

■

Kremlin.

imports, how¬
ever,
should
not
necessarily
frighten us. It is a natural out¬
growth of our trade policies for
the past 25 years. Since 1933, we

quarter of 1958. Spending in the last quarter of this year by
manufacturing concerns is expected to be 30% higher than at the
low point in the closing quarter of last
year. Railroads and nonrail
transportation companies are expected to reach their peak in the

Manufacturers

war,

to

not

to

that of Russia.

Last year, U. S. imports

This

pared with the first half of the year.
Total fourth quarter outlays,
if realized, will be more than one-sixth
higher than in the final

some

does

desire

imports by only $1

top

38

Street

regard to

unfortunate for American labor.

Quarterly Trends

third quarter of 1959 with

imports by

our

been

bil¬
had
a
total value close to $13 billion.
This
year
our
imports are ex¬
pected to reach $15 bilion. This is

9

+

good many years, our ex¬

fairly wide

may
lion.

+ 11

N.

329

Taking part in the competition
were

an
So

position

nomic

margin. Now it is
estimated that our shipments of
merchandise
to
foreign markets

+ 35
—

on

fritter

not

Russia's en¬
economic war with
the West.
far, I see no con¬
clusive signs of such a develop¬
ment.
At
present,
the
Soviet

gaging in

to

am

has

with

talk

Roger W. Babson

ports have exceded
a

out

come

do

Union Labor?

Imports Are Increasing

8

can

we

our

There

this week.

6
+ 37

we

What About Russia and

+

one

questions. I

+

754

of

score

Coast

for my

a

trophy

Golf

Montclair

rials costs.

answers

For

end

At

is

+ 10

the

Montclair,

the

'

trip

9

+

of

natural advantages by
failing to control wage and mate¬

a

12,274

leader

memorial

annual

at

1

provided

away

(Millions of dollars)

Manufacturing
11,433
Durable-goods industries-.5,469

the

top,

up

rate,

secure

1958-59

Survey

in

commerce

present

Change

March

;

again

reason

18

predict that during The runner-up team, representing
the next few years U. S. foreign Bear, Stearns & Co. had a gross
trade will suffer some bad jolts, score of 339.
+ '
Pressure
to
go
back to higher
a two-man team of < Drexel &
tariff barriers will increase, but Co.
topped this division with q
I believe we will stand firm. And
gr0Ss score of 167 and net of 151i,

we.

in

any

economic

representing

.

nations.

utility

the

as

team

golf tournament held Friday, Sept.

technological and in¬
capacity.
In fact, they
place in danger our position

may

Hayden Golf

four-man

Carl M. Loeb, Rhoades & Co. won
the honors at the Charles Hayden

hopes, howeyer,

our

Free World.

s-

abroad
Sept.
Survey

circles,

sharp setback

with other.

follows:
Anticipated 1959

A

dustrial

suc¬

our

companies.
comparison of 1959 anticipation with actual expenditures in

A

1958

in

the full

am

d i

.building

Commercial companies are
reporting increases
year, while mining companies expect out¬

lays to increase somewhat.

business

the

I

ceed

last

over

in

in

For

term

the

of one-tenth

suffered

.should

expenditures last year were extremely low and the
anticipation includes a significant amount of leased
equip¬
which is being financed by private investors outside

railroad

and

years

Wins

we

He predicts we will

will resist higher tariff protection.

turbed, a 1though over
the longer

current

ment,

we

exports have not yet

much

one-third.

.Railroad

long period of decline if

a

jolts in the next few

from the

present

group, chiefly trade, and the railroad
industry.
Manufacturers expect to spend about
9% more on plant and

equipment in 1959 than in 1958.

our

recovered

expenditures anticipated in the
survey reported
ago, with most of the
change attributable to the

commercial

in

bad

some

concern

because

uoward

some

be

31st

much

1958..

1959

the

months

not

In recent months there has been

•?

.The rates in the
tnree

need

and materials cost problems.

wage

that

the

/2 billl0n in 1958- This is approximately 9%
capital outlays last year and about
10% below record
1957 expenditures of
$37 billion.

revisions

unem¬

Loeb, Rhoades Team

Europe to check

trade

our

our

suffer

Department of Commerce.

expected

present

our

ployment.

on the reasons and prospacfs for
foreign trade trend, publicist Babson is of tha opinion at this

time that

inftr<tr?th T'<an+d ^35'3 blllion in the final quarter of 1959, accordPvnhLlkMtest survey conducted jointly by the Securities and
Exchange Commission and
the

route to

em

our

scheduled

billion

largely responsible

of

By ROGER W. BARSON
Now

1959 is responsible for the
increase with annual rates above
the $33'/j billion
predicted for this year,

,?U^e3S cut!?ys for
at

much

'

last

naif of

Foreign Trade Ahead

and

for

be

to

appear

Capital Spending Increase ieporfed

lb

(1219)r

,

City, Utah

—

New York, N. Y.

G.

with

Trust

with

The Commercial and Financial Chronicle

(1250)

14

Debt Management!

No Shorl Guts to Treasury
N.

The

Federal

Y.

Bank

Reserve

offers the Treasury two

one,

market

rates

today's

and, two,

interest

of

rate differential between its securities and
corporate and Federal agency securities.

September

by

published
Bank

New

of

ex¬

ad¬

the Treasury's

vanced to alleviate

problems,

financing

York

proposals

quackish

poses

Monthly
Re¬
the Federal

shows

and

they offer no easy way out from
the

which

life

of

facts

stern

the

recognition

it

give

must

the

of

the

to

Treasury's financing difficulties.
analyzes the causes and cures
of the Federal debt management
It

with special emphasis
given to the added impact of to¬
day's
tight money
squeeze.
It
-warns, however, how these prob¬
lems impinge
upon
independent
central bank policy decisions, and
consequently upon the effective¬
problems

of monetary

ness

The

Bulletin

attracted
recent

"man¬

that

notes

as
Treasury efforts
outstanding debt and
new money, in the face of
competing
demands
for

years

refund

to

borrow

strong

funds at all

frequent

a

sure

Public

of

source

the

debt

lic

policy,

within

the

surplus

it

bounds

is

operate

Treasury

a

capital market conditions.

take

and

Within

limits, however, debt
are

a

of pub¬

and must

agement decisions

man¬

of consider¬

able importance,
since different
approaches to managing the pub¬
lic debt

have

can

effects

widely differing

the

upon

nation's

econ¬

omy.

This is true principally be¬

cause

of

the

accounts

for

size

of

about

the

debt—it

one-third

of

total

outstanding
debt
and
is
equivalent to about three-fifths of
Gross

National
of its

cause

folios of

Product—and

be¬

key role in the port¬
private and in¬

so

many

stitutional lenders.
'Not all

parts of the debt pose
•equal problems to Treasury debt
,

Of the $285 billion in
outstanding debt as of June 30,
1S59, $55 billion was held in the

managers.

United

States

accounts

billion

Fund)

and

owned by the Fed¬

was

eral Reserve

trust

the Old-Age and

as

Insurance

$26 billion

$51

Government

(such

Survivors

System. Still another
in

was

the

form

of

Savings Bonds. Administration of
the Savings Bond program, which
is of considerable
importance in

itself,

have

can

major effect

a

debt operations.
for example, when
the budget deficit was $12.5 bil¬
lion, new money borrowing to¬
fiscal 1959,

taled

$26.1

billion,

twice
the
period since 1951 and about three
times the $8.8 billion total of fis¬
much

as

The

1956.

cal

the

as

almost

for

average

volume

Treas¬

of

exchange offerings has also
considerably from year to
depending primarily upon
the schedule of maturing obliga¬
tions.
Thus, while the volume of
ury

varied
year,

securities

issued

exchange for maturing issues

in
was

$39.4 billion in fiscal

high

as

195.9, it was
billion in fiscal

$57.3

as

1958 and as low as

$29.0 billion in

1956.

fiscal
"In

ther

to

the

to

on

thus

avoid

adding fur¬

and

longer maturity.

securities

of

The sale of

longer

term,

when¬

economic

ever

and

market condi¬

warrant

such

action, is also

tions

to avoid the inflationary
inherent in a steadily

necessary

potential

shortening

However,
found

the

it

structure.

maturity

Treasury

possible

to

has

float

not

many

large issues of longer maturity in
the period since 1951.
With the
passage

of time moving the entire
the
outstanding
debt

of

closer

to

banks

increased from

cluded

from

the

discussion

that

It is upon

the remaining
$153 billion of publicly held debt,
of which all but $5 billion is in

the form of marketable

that
f

the

most

Treasury

center

and

ajor

securities,

difficult

debt
of

debt

the

operations

ach the economy.

"The magnitude

the

and

ems,
which

may be

with

gauged

'rom the amount and
maturity
-ch

Treasury

exclusive
lied

of

over

of

security

offering
regular bills

the

in

the

weekly bill
auctions) since July 1, 1951, not
ong
after the Treasury-Federal
accord.

eserve
on

of

Treasury flota-

marketable

securities has
veraged $52.0 billion a year dur~ig
ear

this
in

period—$13.5
new

8.5 billion

cash
a

be

billion

a




otherwise

have

been

in

or

these

securities
bank

that

to

make

difficult

it

achieve

to

a

budgetary surplus.i"

"What

then

tions—other

expansive
guide

the

are

than

—

choice

of

the

There

about 30%

beginning and end

"Numerous

at both

of this

in¬

affect

the

elements

Treasury's efforts to control the
inflationary
(or^ expansive) "ef¬
fects on economic
activity of its
debt operations and to achieve

appropriate

maturity
*

*

"In practice,
may

increase

demands

an

structure.

*

expended

carried

is

tion

seasonal

out

to

needs.

for

other

lent

active

or

of

Treasury

receipts

decrease the total

the real

chief

inflation

is

lem

resources

that

current

prob¬

deflation.

or

reliance

credit

bank

new

upon

absorb

to

the

is

most

Treasury
expansive

inflationary)
finance, and that re¬
upon
short-term
issues,
of

liance

though

they

funds from the, market to re¬

new

place

potentially

(and
method

the

come

due.

old

issues

when

they

The

termediate

availability of in¬

and

longer term funds

in-the market

too

at any one time is
limited, however, and
frequent maturities may mean,

in

effect,

no

alternative

generally

term

the

that

Treasury

but

securities.

short-

offer

to

This

has

best

can

be

purchased
avoided
by an unbunched, even
marginally
less so in its effect upon the econ¬ spacing of maturities which takes
into account the market's capacity
omy.
Short-term securities carry
to accumulate longer term funds.
an
inflationary
potential
even

even

by

nonbanks,

after

their

are

only

is

sale.

Unlike

longer

issues they can soon be turned in
the Treasury for cash and thus

to

provide

a

for

tute

the

natural

"(3)

Frequent

rowing

Treasury

operations

desirable

bor¬

also

are

other

for

un¬

For

reasons.

their

by

to

relying

new

inflationary
upon

the

pressures,
creation of

bank credit, which would in¬
the supply of
money.
Al¬

interest

sale

issues,

rates

capital
might

because

losses

entail.

because

maturity,

of

do
not
longs in

of

which
Shorter

their
early
fluctuate
so

For all

these

of

it is de-

reasons,

sirable\ to issue some part of the
Treasury's borrowing in the form
of

intermediate

and

longer

as

capital

value,

and

economy

Maturity

"Expansive
fects

total

on

services
the

for

frequently,

inflationary

or

demands

offer

choice

of

one

for

ef¬

goods

guide line

appropriate
maturity structure for the public
debt, but there are other impor¬
elements
into

an

which

account.

be

must

One of these

is the

Treasury's capacity to repay
and retire debt at maturity.
If
fiscal policy since World War II

and

ury
may

with

Federal
a

both

the

Reserve

held

be

with

interference

market and

through

refunded

be

must

to

the

Treas¬

System

minimum

a

for regulariz¬

program

ing offerings of short-term issues,
thus reducing the market effects
of

uncertainty

Treasury will
The Treasury
direction

with

the

what

to

as

the

offer in exchange.
has moved in this

during

the

institution

of

past

year

cycles of
issues, in
of regular

six-month and one-year

crease

had

ternatively, such an effect might
be achieved
through the activa¬

addition to the cycle
it three-month Treasury bills.
did after previous wars, the most
"(4) Treasury borrowing (or re¬
efficient policy would have been
payment) of funds in each matur¬
ity range may be expected to have
1 Of
course,
to
the
extent
that
the
a
significant
impact
upon
the
Treasury
enjoys
a
cash
surplus—even
though it does not have a budget surplus availability and cost of funds to

tion

of

otherwise

idle

cash

bal¬

which would increase the
velocity of money.
In immediate
impact, increases in either the
velocity or supply of money tend
ances,

to

have

expansive

effects.

Since,

provided

ment of the
excess

—the
the

of

net

public

for

shift

gradual

repay¬

public debt out of

current

of

revenues,

debt

ownership

an

as

from

to
the Treasury's trust ac¬
does represent a form of debt "re¬
tirement."
counts

"The

vious,

and

of debt management

securities
ized
ers

in

market

a

is

character¬

by the free decisions of lend¬

and borrowers, it must be pre¬

pared to pay a competitive inter¬
est
.

rate.

"To

be sure, it is theoretically
within the Government's power to

the

abridge

freedom

securities

its

sell

competitive

lenders'

of

and borrowers' choice

in order to
less-than-

at

interest

The

costs.

Government, for example, might
require that specified institutions
—such as banks or pension funds
additional

—hold

prescribed

re¬

in the form of .Government

serves

securities.
addition

With
the

to

this

legislated

demand

for

its

securities, it would appear that
Treasury should be able to

the

sell its

obligations at lower inter¬

est rates.

would
sion

the

Also, since this method

represent
funds

of

other

uses

and would

Treasury,

diver¬

forced

a

from

not

to
re¬

quire expansion of total credit, it
would seem that these lower rates
could be achieved without infla¬

The imme¬

tionary consequences.

apparent difficulty with
this scheme for reducing the Gov¬
diately

ernment's interest cost is

in all,

freeze

that, un¬
tended
to

requirement

the

less

much the largest

or

part of the publicly held market¬

debt, it would be largely in¬
Prices are set at the

able

effective.

margin, and
a
marginal

as

of

amount
that

debt

ment

long

so

had

there was
Govern¬
compete

to

funds, the
interest rate would

with other demands for

Government's
have

The ef¬

competitive.

be

to

placement of Government
inter¬
est
rates
through administrative
force
would involve greater and
more
extensive regimentation of

fective

securities at artificially low

the market than has been serious¬

ly contemplated or, perhaps,

appreciated

than
those

by

has

been

who

propound such schemes.

"Alternatively,
ment

might

create

the

Govern¬

attempt to

lower its
efforts to

costs

interest

through

greater

a

securities

demand

for

its

by adding to the exist¬

ing supply of money.
To channel
into the purchase of new

funds

issues, the Government
authorize or require the
purchase of its securities with
funds
previously
immobilized,,
such as the required reserves of
Treasury

might

banks.

Or, lower Treasury inter¬
might be achieved by
setting for the Federal Reserve
System the
task of purchasing
costs

est

Government

securities at fixed

variable support prices.

or

For such

effective, control'
supply, and any
attempt to check inflation, would

support
over

have

to

the

Treasury

bearing

sacrificed.

borrowing

been

have

be

money

be

to

Treasury

reduced

In

effect,

would
turning
interest-

costs
by

securities into

An expectation of
inflation would soon

money.

continuing

be engendered, and other borrow¬

local

to

corporate

important, most ob¬
most often misunder¬

that, if the Treasury is to sell its

and

and

Rates

most

stood fact

other, competing borrowers—such
as mortgage borrowers,
State and
governments,

years."

few

past

Interest

term

securities, which give rise to less
rapid turnover of the debt and
and hence may generally be sold
fewer Treasury trips to the mar¬
with relatively little capital loss
ket.
To the extent that a substan¬
if
holders
should
require
cash tial short-term debt is necessary
prior to redemption."
to meet the liguidity needs of the

taken

at times

money

investors

large

tant

Treasury borrow¬
add to such demands, and

the

uses.

"In general, however, it may be

ing

may

and
timing
of
each
offering over the busi¬
may indicate—that has
determined Treasury action over

by

the

an

magnitude,

cycle

cannot

cover
the
far more
regular re¬
sales
of
long-term
quirements of expenditures. Since
the Treasury might
such borrowing—which has aver¬
have an expansive or inflationary
aged about $6 billion in recent
effect if they were purchased, on
years—can
be repaid out of an
balance, by banks employing re¬
excess
of Treasury receipts overserves
supplied for the purpose current
expenditures later in the
by the Federal Reserve System
fiscal year, its maturity dates can
or with excess reserves or deposit
be
chosen to fit
the pattern
of
balances that would otherwise be
expected Treasury revenues.
idle. Any resulting increase in the
"(2) Because maturing Treasury
money
supply
or
velocity,
of
those covering
course, may or may not be con¬ issues other than
sistent
with
the
objectives
of seasonal needs will most likely
monetary policy at any particular not be repaid out of current reve¬
Treasury must borrow
time,
depending
essentially
on nues, the

the

of

Treasury

character¬

ness

flow

.

elements—as

these

all

,

shifting combina¬

a

maturity,

strictly

meet

These

of

examination

borrowing

Some Treasury

"(1)

course,
economic

or

other borrowers.

"It has been

issues?

Similarly,

securities

and

Treasury financing

or

upon

such

several:

are

social

of

reasons

borrowers. The

wish, of

policy, to encourage or discourage
expanded investment spending by

or

may

maturity

a

Treasury

may

for

considera¬

which

other

Government

inflationary

effects
for

maturity

be

area

supply of funds of that maturity

Considerations

or

otherwise

would

maturity

available to
Other

istically arise in those months—
purchased
usually during the first half of
deposits each fiscal
year—when the uneven

were

reserves,

maturi¬

may also vary
in which they
borrow, the magnitudes of Treas¬
ury
financings are typically so
large as to affect materially the

the

for example, of short-

so,

longer

ity and borrowers

Federal
bfidgets,
at least
1949, have not' provided for
regular debt repayment, and the
defense
burden
imposed by the
cold war probably will continue

structure

with

widely

was

borrowing and however, an .increase in
velocity
in refundings. necessarily involves a
decline in

year

instru¬
activate

to

serve

term

of the economy.

of these prob-

frequency

they arise,

not

cial banks

problems

which

short-term

the

cent

by

ranges
need
not necessarily
be
expansive in character.
It would

market

management

through

effects

raised

or

in

since

funds bor¬

upon

"Treasury borrowing from these

$58 billion
30, 1951 to $61 billion on
June 30, 1959, but as a
proportion
of
total
publicly held Treasury
debt, the amount held by commer¬
June

on

the

follows.

operations

borrowers

ties, for example.
While the sup¬
ply of loanable funds is not fully
compartmentalized as to matur¬

maturity, therefore, the

terval.

special nature, however, and
body of debt has been ex¬

expan¬

pressures

to space out the maturity of the
Treasury's obligations to fit its
capabilities.
But re¬

repayment

substi¬ the credit and capital
markets,
wishing
to because the Treasury is such an
keep, in a near-cash form, re¬ important borrower, each Treas¬
maturity structure of the debt has, serves or surplus funds that are
ury financing operation occasions
shortened.
The portion of mar¬ not
immediately needed. To most a period of flux, uncertainty, and
ketable debt maturing within five investors in short-term Govern¬
'churning,' as lenders await first
years rose from 42.7% in mid-1946 ment
securities, these investments the terms of the new offering and
to 63.6% in mid-1951 and to 72.9%
are
considered
virtually
the then the results of its reception.
on
June 30, 1959, despite efforts
equivalent of cash, and the deci¬ For the Federal Reserve
System,
to avoid this debt
shortening.
sion to purchase them does not
which gives recognition to Treas¬
"A
take
the
related Treasury
place
of
decisions
to ury
objective
financing problems, frequent
has been to minimize
any infla¬ spend the money in other direc¬ Treasury
trips
to
market
may
The
tionary potential that might pos¬ tions.
purchase
of
longer mean some limitation upon in¬
sibly arise from the acquisition term
obligations, on
the
other dependent policy
decisions, and
of its securities by certain classes hand, usually represents a deci¬
consequently upon the effective¬
of investors, particularly commer¬ sion that these funds will not be
ness of monetary policy.
For the
cial banks.
In these efforts to scheduled for other
expenditure Treasury itself, frequent opera¬
for
influence
an
the
indefinite
period ahead. tions may mean that the market
ownership of the
securities
debt, some degree of success has Long - term
may
be is kept off-balance and the diffi¬
been achieved.
Government secu¬ 'locked in' the portfolios of their
culty of designing offerings that
rities in the hands of commercial holders by any subsequent rise in
will be well received is increased.
body

of

a

net

balances.

purchasers

short-term

the

to

the magnitude of other debt
oper¬
ations. The decisions involved are
this

idle

of

which

whether

order

of

banks

would

securities

into account general business

these

borrow¬

other

with

issue

ments

what

nities to sell debt of intermediate

area

of

the

from

pres¬

must

deficit

or

rowed

markets.

management

for

placed principally

the size of the
Treasury's cash deficit or surplus,
with the attrition on refundings,
and

than
money

great when a sizable deficit is
to
be
financed
and
reliance
is

to year with

year

debt

is

other

money

the

to

inflationary

assumed

heavy

credit

closely circumscribed

new

add

likelihood

or

debt, and
refunding problem,
the Treasury has sought opportu¬

maturities, have been

upon

some

marketable

policy.

of the public debt has
increasing attention in

agement

"The

ing is required nearly every year
to cover seasonal needs, the total
of new borrowing has varied from

In

must swallow.
Bank
is
mindful

Treasury
The

While

that

inflationary

or

which

sive

would be necessary.

interest

ing the

likely

from debt management

that the government itself is responsible for narrow¬

It notes, also,

is

supply.

market purchases and forced placement

tionary consequences and/or regimentation that

Reserve

those

issues at artificially low interest rates, warns of infla¬

of Treasury

The

expansive

no

examining alternative recourses, such as tax exempts, in¬

in

creased money supply, open

view

is

market squeeze

it

management policies which result
in an increase in
velocity are less

longer term obligations. The

'excuse for avoiding intermediate and
Bank

bits of

there is no realistic alternative to paying competitive

advice:

liquidity,

Thursday, September 24, 1959

...

ers—e.g.,

individuals, corporations
-— would
have,

municipalities

Dav

skyrocketing

interest rates

Volume 190

to

Number 5884

compenstate

anticipated
real

Tax

"If

investors

of

their

The Commercial and Financial Chronicle

.

the

total

supply

of

tionary

By WALTER E. HOADLEY, JR.*

infla¬

The bright and

manner, or if the freedom

lenders'

choice

is

not

in

such
rates
to
be
disguised, as
through the offering of lower in¬

terest

rate

either

partially

that

are

wholly

ex¬

payments
or

empted from Federal income tax¬

ation, as was indeed the case
Treasury securities before
Such

an

leaves

arrangement,
of

part

actual

the

interest

of

with

Government's

to

be

paid by the Treasury in sacrificed
tax

revenues.

market at costs that

lower

than

those

are

free

a

somewhat

which

by other
borrowers.
qualities of credit risklessness
broad

attach

secondary

to

be

must

paid
a

boom

in

new

new

industrial

recovery in

Total
most

construction

—

—is

recession

and

recovery

be-

now

ginning
level

The
and

market

that

Treasury securities

gen¬

erally make them salable at in¬
terest rates somewhat below those

to

off.

of

essentially new role
may be for the
nation, the industry, investors, and
the consuming public is open to
serious
question.
But there
is
now

"This

differential

has

dimin¬

ished

considerably, however, since
World War II, perhaps
chiefly as

a

result of actions by the Govern¬
itself.
Growing confidence

ment

in

the Government's
assumption
responsibility for high levels
of employment
has, in the eyes of
many
investors, taken much of

of

the risk out of top-grade corporate
obligations.
At
the
same
time,
various Government programs for
the
insurance
or
guarantee
of
mortgages and other types of debt
instruments

have

instruments

to

level

of

brought

almost

continue

serve

as

a

tional
omy

na¬
econ¬

because

the

over

espe¬

home

con¬

tivity,
ate

W. E. Hoadley, Jr.

now

be

seen

a

is

thus

much

Long
ties

more

Government

tending to be¬
stable industry

than generally recognized. Varia¬
tions in construction activity also
to be increasingly in the op¬
posite direction of the movement
seem

"From a panel discussion by Dr. Hoad¬
Jr.
at
the
7th
Annual
Marketing
Conference, National
Industrial
Confer¬
ence
Board, New York City, Sept. 18,

ley,

1959.

securi¬

have

enjoy

a

differential relative to other highgrade securities.
It should also
be

that the

noted

rate

of

reflect

interest

both

current

and

expected

the

borrowing
needs
significant part. Thus,
supply of Government

a very

large

securities

resulting from the

war

and the
ury

frequent and large Treas¬
financing operations in recent

have,

years

themselves,

tended

to reduce the competitive rate ad¬

downward

drift

in

new

N S TA

Notes

of

Government

short,

realistic

the

but

The

SECURITY

TRADERS

financing

Efforts

the

avoid

to

public

paying

of

purchasing power.

quality dwellings and still do not
pose a threat to new construction
in
most
localities.
The
chief
threat

to

lies

ahead

year

of

area

housing

new

money

over

the

in the general
availablility and

cost

rather than in

moreover,

in

1960

following additional registrations have been made for the

National Convention of the National Security Traders
Inc. to be held

at Boca

Association,

Raton, Fla., Nov. 1-5, 1959.

a

is
continuing to
expand as new office structures;
stores, and recreational projects
are
being authorized on a wide
quite

strong

front.

At

and

least

small

a

boom

to be getting under way as a
the

of

Zilka, Smithers & Co:, Inc.

Portland, Ore.

''Allen Crawford, Jr.

French &

Atlanta, Ga.

Crawford

E. Pollock & Co., Inc.

Donald J. Hall

Wm

J. Ries Bambenek

Dallas Union Securities Co.

Dallas, Texas

Russell Wai dley

Fulton, Reid & Co.

Cleveland, Ohio

II. M. Puyson

Portland, Maine

"Mark J. Crowley

Miami, Fla.

& Co.

New

no

"William Raffel

Raffel & Co.

general

in

recovery

"John R. Maher

John R. Maker' Associates

New

"Robert I. Ilerzog

Herzog & Co.

New York, N. Y.

Waddell, Reid Inc.

Kansas City, Mo.

Dempsey-Tegeler & Co.

rise

The

remain

in

so

reporting
growth.
All
in
all,

are

in

construction of

the

to

changes

are

the horizon. The
objections

on

effect of local citizenry

to

rising taxes is reflected in the
lagging volume of new educa-*

tional structures in many sections
of

the

the

county. The overriding of
presidential veto of the public
foreshadows

works

bill

in heavy

some

con¬

to

the

contrast

in

J. F. Stevens

"William E. Denney

Angeles, Calif.

slackening trend which has been
evident during the past year.
for

Except

specialized

some

attractive

with

materials

home

Southwestern IBA

for

new

services

vigorous

coming

the

outlook
is

construction

The

year.

for
en¬

most

likely

prospect will be a moderate de¬
cline

in

home

new

KANSAS
Southwestern

Annual

CITY, Mo.
Group of

slight

hold their sixth annual fall party
Oct.

and

1

Club.

Oakwood
for

Tariff

Further

tained

2 at the Hotel Muehl-

the

and

bach

guests

information

from

E.

building and

expansion in

repair and

may

Stephen

New

Los

with the freedom of investors' de¬

"William J. Burke

May, Gannon Inc.

Boston, Mass.

cisions.

"Philip M. Young

Psfsnes, Ely, Beck & Co.

"Ralph R. Hawxhurst, Jr.

Bacon, Whipple & Co:

Chicago, 111.

"F. Coit Williamson

Schmidt, Roberts & Parke

Philadelphia, Pa.

"James E. Jones

Gregory

of these shares having been sold, this announce¬
ment appears as a matter of record only.

NEW ISSUE

Phoenix, Ariz.

exemption,
a

perhaps

in

devices

addition

unintended

distribution

effect,

as

to

having

income

do

tax

little

re¬

but

conceal the rate of interest actual¬

ly paid
over,

its

by

the

Treasury.
More¬
if the Treasury is to prevent
of the debt from

management

Louis A. Gibbs

New York. N. Y.

'*

St. Louis, Mo.

Scherck, Richter Co.

Henry J. Richter
"Richard Walsh

Newhard Cook & Co.

"Wm. L.

Lester. Ryons

V/right

Angeles, Calif.

300,000 Shares

Transdyne Corp.

New York, N. Y.

Sons

The First Boston Corp.

"Rubin Hardy

York, N. Y.

Common Stock
(par value $.01

per

share)

St. Louis, Mo.

-

Los

& Co.

Angeles, Calif.

New York, N. Y.

having inflationary consequences,

"Walter R. Johnson

G. A. Suxton & Co. Inc.

it

"E. E. Parsons, Jr.

Parsons & Co., Inc.

Gersten & Frenkel

Offering Price $1 Per Share

Cleveland. Ohio
New York. N. Y.

must

the debt

resist

the

toward

ity structure by
—at competitve
—intermediate

obligations.
facts

of

a

of

movement

shorter

matur¬

regularly selling
rates
and

These

Treasury

of

interest

longer
are

the

debt

term

"Lester

Frenkel

"Jack A. Moss

A. C. Allyn & Co.,

manage¬

Shearson, Hammill Adds
(Special to The Financial Chronicle)

SPRINGFIELD, Mass.—Norman

DALLAS

SECURITY DEALERS

to

the

KENNETH KASS

56 Beaver Street

4 Hanover

2 and 3 at the Ridglea Country Club. On Friday
there will be a golf tournment, followed by cocktails and dinner.
On Saturday the group will attend the SMU-Navy football game
in the Cotton Bowl. Tariff for out of town guests is twenty-five

New York 4, N. Y.

New York 4, N. Y.

WHitehall 4-7650

DIgby 4-5112

Field Day October

dollars

for

Third

Securities

Building.

SIMMONS & CO.

ASSOCIATION

Security Dealers Association will hold their annual

mation

Bank

obtained

Underwriters

staff of Shearson, Hammill & Co.,

National

Copies of the Offering Circular may be
from the undersigned.

Boston. Mass.

"

"Mr. and Mrs.

The Dallas




Inc.

hard

ment."

I. Barstein has been added

Louisville, Ky.

The Kentucky Co.

"Arthur C. Murphy

both

may

days

(exclusive

be obtained

of hotel

room). Further infor¬

from J. Ries Bambenek,

Co., Inc., President of the organization.

Dallas Union

Square

Trading Dept. Tel.
WH 4-6627

Country

is
be

$40.
ob¬

Brown,

Barret, Fitch, North & Co., Kansas
City.

modernization work.

All

T h e
the In¬

—

vestment Bankers Association will

important gains over the

achieve

Fall Outing

the indefinite

York, N. Y.

Laird, Bissell & Meeds

such

cost-

saving,
installation
and
design
features, the building materials
industry seems to
have ample

York, N. Y.

Croioell, Weedon &. Co.

And

in¬

engineering

profes¬

having

couraging but it will be difficult
for
the
market
in
general
to

a

John C. Hecht

"Richard E. Owen

or

new

buildings seems almost;
persist.
Public
and
allied institutional buildings have
held at a fairly steady level in
recent months and no important
certain

Chicago, 111.

"Harry J. Hivdepohl

interference

supply

money

part

plant and equipment expenditures.

Philadelphia, Pa.

rates must involve inflation of the

in

industrial building now seems

new

"Do-it-yourself" is
powerful market force and

residential

"P. A. Kosterman

Courts & Co.

market

are

apparent

any

increasing

are

interest

owner

Cincinnati, Ohio

debt.

..

Commercial" building

field.

struction

Housing vacancies are edging up
slowly but commonly involve poor

and

1959

crease

ilies and about 55% of the nation's

future but "do-it-for-me"

ASSOCIATION

Los

Competitive market rates of inter¬
in

strong

a

particularly true in the economi¬
cally powerful and rapidly grow¬
ing annual income brackets above
$7,500.
These families now ac¬
count for nearly 30% of all fam¬

will
NATIONAL

pay

to

reveal

increasing demand for higher

quality housing by families in all
sections of the country.
This is

still

Westheimer & Co.

Treasury has

alternative

to

.

.

to be found in the non-residential

of religious

quarters.

living

Current studies

-

and

plans

anxious

families

of

better

for

mainder

home

new

and

.

brightest prospects
construction during the re¬

ing materials.

Dempsey, Tegeler & Co.

obliga¬

tions.
"In

intentions

Construction
Some of the

sional installations of new build¬

"S. Richard Harris

vantage

est

but

1959,

re¬

Government

play

construction
of

rates

closely the demand and
in the capital market, in

supply
which

other

to

remainder

find

of

fulfillment

thousands

ease

interest

the Treasury must pay and its

lationship

residential

the

buying

Upswing in Non-Residential

lessening of interest by prospect¬

same

consequently come to
far smaller interest rate

of
the

some

safety, in investors' eyes,
Treasury
obligations.

term

-

to

"trade-in"

or

IS

capacity to meet all requirements
during the coming year. Competi-i
home building activity already is
tion
among
home builders can
ive new home buyers.
apparent.
only
intensify
in
the face of
tightening money conditions.
Da,
Upswing in Repair and
Drop in New Housing
large contract construction where
Modernization
Looking to 1960, lessened avail¬
The
outlook
for
repair
and activity has been reduced since the
ability. of funds and rising inter¬
recession, an upturn is in pros¬
modernization activity is for
est rates now point to a 10-15%
pect, with some resultant firming
further growth over the next 12
drop in the volume of new hous¬
in contract prices. The persistent
months. There are some scattered
ing. The actual volume will de¬
rise in labor costs in the building
signs, however, that the growth
pend heavily upon (1) the com¬
field offers little encouragement
rate in the home fix-up field is
petitive success of mortgages in
for any significant improvement
slackening, especially among the
the long term capital markets of
in overall building costs during
do-it-yourself enthusiasts. One of
the nation in the face of heavy
the coming year.
the principal reasons for this re¬
demands
from
both
public and
In summary, while much of the
duced expansion pace is the rising
desire
among
many
families, recent overall expansionary force
in construction has now been lost;
especially with teenagers, to find
entirely new living quarters. This many dynamic changes are in the
These foreshadow manyis a further reflection on the strong offing.
underlying desire for new and growing market and profit op¬
better
homes.
Rising
incomes, portunities ahead.

to fluctu¬

narrowly
between
a
"politically acceptable floor" and
a
"tight money deiling."
Con¬
come

economy

action

over

more

struction

of Federal

level

ac¬

can

that any
role of

ing financial commitments virtu¬
ally
assure
a
persistently high

new

struction

current

mortgage and allied credit con¬
ditions, has now definitely hit the
"tight money ceiling."
Outstand¬

ahead.
New build¬

year

ing, and
cially

the

building, which rose
rapidly in 1958 from the "politi¬
cally
acceptable
minimum"
of
roughly one million starts in part

strong sus¬
taining force
the

in

New home

these

the

suggest

building in the national
is in the offing.

direct

as

to

change

on

competing issues of other highgrade borrowers.

little

turnover

qf the most important deterrents

construction

for

Problems of

ones.

new

will continue in 1960 to offer some

this

sirable

construction
will

housing

The

Just how de¬

Nevertheless

in

ments for

to

general business.

funds

(3) the success which prospective
buyers have in disposing of
present older homes as a
prerequisite to making commit¬

plant-equipment spending.

important expansionary
during the recent general

business

most localities.

the

.

housing; and

their

building is seen as part of general

of the

one

in

construction

forces

to

"Even without tax exemption or
similar devices, the Treasury can

usually sell its securities in

threat to

a

1941.

course,

payments

pose

of

new

home

higher quality housing and that slowly growing housing vacancies
not

two-thirds

used to finance

interesting trends detected is the increasing demand

do

small

together regularly provide

about

the sales

industry.
Dr. Hoadley, Jr., foresees a 10-15% drop
housing volume in 1960, further growth in residential repair
modernization, and brightest prospects in the non-residential

field. One of the

be possible for

may

interest in

for

through competitive inter¬
It

which

new

and

for the Treasury to sell its securi¬
ties by competing with other bor¬

rates.

vested

a

savings and loan asso¬
deposits of com¬
savings banks

ciations and time

not so bright prospects in the construction industry

by an economist with

in

mercial and mutual

outlook for the

abridged by appropriating to the
a larger share of loan¬
able funds through administrative
force, there is no alternative but

est

forth

set

are

be

to

Treasury

rowers

shares

Treasurer, Armstrong Cork Company, Lancaster, Penn.

money

an

sources;
(2) the general
level of savings and the extent-to
which
they take
the form of

private

The Construction Outlook

Exemption Alternative

the

(1251)

the

in

investment."

is not to be expanded in
of

.

for

deterioration

value

.

September 23,1959

The Commercial and Financial Chronicle...

(1252)

le

growth

The Market...and You
STREETE

WALLACE

BY

free/ of

in

thrown

Businessmen in Politics

charge. The road possesses the
unique and permanent ad¬
vantage of an exceptionally
long average haul. Last year
abandoned

it

three

By LAWRENCE I. WOOD*
Labor and Government

million
General

ings and loan companies are
of deficiteering branch lines
beginning last Thursday eliciting ever increasing in¬
"in
the
works."
The
com¬
(Sept. 17), declines were reg¬ vestor interest. Furthermore,
istered in four. However, be¬ the important companies pany's other-income derived

Electric's

legal

outlines

passenger miles,
further
abandonments

with

Relations Counsel, General Electric

Company, New York City

unprofitable
Of the five market sessions

Thursday, September 24,1959

the

of

of

kinds

plant managers

can

expert, drawing on his firm's experience,
political activity businessmen in the capacity
and should do, and then discusses the political

participation of businessmen in their individual capacity as citizens
in partisan politics. Regarding the former, stress is
placed on active
manager's

participation

rather

than

reliance

the

on

firm's

head¬

from its large substantial
quarters' Ivory Tower, and on the making this part of company's
Wednesday's strong operating in California, derive
stake in oil, coal, lumber and
time with company money on a non-partisan basis.
rally, the net loss for the special benefit in that it is
week was held to just under one of the states wherein the mining operations, furnishes a
As
corporations become more this work, but rather, to provide
strong fillup to its earning effective politically, it is virtually the research and
one per cent.
planning neces¬
Again disclosed absence of mutual savings
inevitable that their right to act sary to help each of the decentral¬
power — present and future.
as
a two-way
street, the list banks eliminates the impor¬
Its per-share income was and speak in the political arena ized General Electric managers
shows a decline of about 9% tant competition from that
will
be more
to be as effective as possible. Any
from its peak of all-time reg¬ source. Fastest growing com¬ $2.30 in 1957, $2.51 in 1958, t h o r oughly
reliance on a collection of a few
with $2.75 expected in 1959.
tested than
universal geniuses from
istered Aug. 3 last.
pany
there is Great West
some
With an exceedingly strong has been the
headquarters' Ivory Tower is cer¬
*
*
*
Financial, which has made
case
thus far.
tain to be a waste of time and
financial position, and healthy
tremendous
progress, both
As is customary at the time
The absence
unworkable.
business- and market-w i s e capitalization, its price-earn¬ of
This political work must be pri¬
any
num¬
of a break, the commentators
over the
past five years. From ings ratio of 10-1 would seem ber of decided
marily based upon the employee's
are trotting out the "causes,"
to justify its current market cases affords
active participation and his con¬
1955
through 1958 its per
namely, the high money rates,
mute
testi¬
stituent
representative
relation¬
valuation of 26.
share
earnings
doubled to
the low stock-bond yield ratio,
mony
to
the
ship with public officials.
jjc
sjc
fact
$3.37, with a further rise to
that the
I would like to develop
the steel strike, and disarma¬
these
three
classifications of political
$5.50 expected for 1959. The
Apart
from
their
after- law in this
ment as expounded
by our
work and then illustrate the im¬
area
is still
shares
(split 21/£-for-l
last strike recovery prospects, the
most important "foreign
somewhat un¬
portance of their interrelation.
year) now sell at 47 on the steel stocks have been elicit¬ certain and
visitor."
'
The improvement of the busi¬
American Stock Exchange.
*
*
*
Lawrence 1. Wood
ness climate in a plant
ing long-term investor inter¬ highly under¬
community
is certainly not exclusively a po¬
est. Traditionally thought of developed. We
The "specter" of disarma¬
A Perfect Score in
litical kind of work.
There are
as
cyclical, the industry has should, however, recognize that
ment with curtailed defense
this situation is not likely to con¬
many
reasons
for the improve¬
Diversification
been gradually shifting over
ment of the business climate in
tinue much longer.
spending is the only new one
The General Electric Co. under¬ the local plant communities.
of those factors. The increase
Philadelphia and Reading's to the growth category. Most
cause

of

-

V

in money rates and the steel
strike were with us during the

market's
all-time

ascent

its

to

recent

high.

(

*

on

the relation of

of the issues remain under the
15-to-l

price earnings ceiling,
General Dynamics Co. to ac¬ with Wheeling, selling at 60,
complish the conversion of down at only 9.7 times its
its

in

effort with

joint

coal waste to

*

*

Reliance

report of substantial progress

ketable
former

the

profitably mar¬

estimated 1959
*

which

on

believe

we

are

essential and

for businessmen.

proper

serve

*

The Technicians

approximately a year and a
to engage in certain of
types of political activity

ago

those

ob¬

we

sharp dichotomy between

a

what is done by

Edge

should

I

explain at the outset that

earnings.

*

chemicals, marks the

took
half

manager as an

a

This

involves

large number
local
too

and

high

the

or

analysis of a
factors such as

of

state

business

taxes—

too low (and taxes

can

be too

low)—fairly and equitably
applied or punitive. What about
schools
ies?

and

churches

Are there

librar¬

and

good opportunities

prospective 100%
employee of the company, on be¬
to go to college?
stocks to bond yields, long
batter in the Diversification
enforcement, is
The technicians, deriving half of the company, and what he
recognized as a significant
does as an individual on his own it fair and equal no matter who
market bellwether, has been League. Four months of in¬ their guidance from various time and initiative.
To explain is the violator? Are there adequate
tensive
preparatory
work "break-through" and "mov¬ our company's program, it is es¬ hospitals? How are the traffic and
discouraging to stocks for
since May, when the proposed ing-average" signals, are sential to give emphasis to this transportation facilities?
sometime past now.
dual aspect. Without an apprecia¬
In all, a suggested list of 187
joint venture was announced, closely watching various sup¬
*
*
He
tion of the distinction there is in¬ factors can be marked favorable,
have included successful com¬ port points
closely below the evitable a degree of confusion average, or unfavorarble.
The stock-ODond yield ratio,
This
pletion of commercial scale present D. J. level of 615. The both as to the legal and the ethi¬ analysis leads to the selection of
after years of stability,
began
testing programs. These will fraternity is practically unan¬ cal propriety of any program for several unfavorable factors and
its long decline in December
the development of a definite plan
provide the manufacture of imous in the conviction that political activity by corporate per¬
1950.
From
sonnel.
of attack for improvement.
2.92% at that
Gen¬
key products from feed stocks the market's performance
eral Electric managers have found
A.
time nine years ago, it has
based on P. & R.'s vast re¬ over the next
this an inspiring kind of work and
fortnight will
Our management believes that
gradually fallen to the cur¬ serves of anthracite refuse
be crucial in disclosing wheth¬ there are three kinds of political have had some real success when
rent "deficit" level of 0.64%.
materials. The company an¬ er the bull market is a closed work which businessmen, in their joining with their industrial
Thus, the stock market had
capacity as managers, may and neighbors and other businessmen
nounces
that previous analy¬ item.
in the community, each making
run
indeed ought to do. Briefly sum¬
through a series of red ses
his own evaluation of the factors.
pointing to the availability
[The views expressed in this marized, these are as follows:
lights before it was finally
We believe this kind
of "do-itof substantial markets for the article do not necessarily at any
(1) That work in the local plant
caught in this month's de¬
time coincide with those of the
yourself"
work
is
an
essential
chemicals
to
be produced,
community which is focused on
cline.
foundation
as

a

for young people
What about law

-

.

*

i

have been confirmed. All pre¬

Bank Stocks—A Silver

activities

Lining paratory

concluded

in

will

four

Particularly

present

is

the

course

investments,
rise

in

recent

of

.

loans

with

the

short-term

and
and

great

rates

They are presented the
improvement of the business
of the author only.]
climate in the plant community

those

b

e
six

to

Beneficiaries of the tighterweeks. In any event, Philadel¬
money wind that is blowing
phia is not dependent on the
so
chilly in other directions,
success of this
"glamor" item;
are
the
banks.

v

favorable

"Chronicle."

as

per

share. An additional

shares

are

being

offered

to

employees, officers and direc¬
Incidentally, its conversion
operations from existing longtors of the company.
of waste products is part of
term
holdings. This is ex¬ a
The net proceeds of the offer¬
growing movement. Only
pected to back increased earn¬
ing will be used for general cor¬

ings, irrespective of possible
further

event,

rise

in

1959

pected

to

crease

over

In

rates.

earnings
show

a

are

25%

any
ex¬

in¬

*

*

Similarly, higher money
rate beneficiaries

William

Zecken-

porate

purposes,

Sr. ("Mister Webb &
Knapp") announced the for¬

outfitting of

mation

located

dorf,

are

convert

of

a

new

to

venture

the life

vestment income.

Attraction of

Savings and
Equities

Despite their tax and other

waste

materials

"gold," the gold in this
being steel.
A

insurance companies, because
of the push given to their in¬

Loan

week

The

office
at

new

of

1610

including

the

supermarkets.
the

State

company

St.,

Idaho.

Federal

ship

—

providing

the

on

spokesman-

controversial

Railroad

Outside

into
case

in

effective

an

and

constructive

fashion.

(3)
the

Providing the inspiration,
leadership and the means so

that managers at all levels within
our

companies

art and

Last
a

can

understand the

practice of politics.
year

new

and

the company set up
distinct component at

'

certain

are

that

the

Dog-House
railroads'

return

to

the

DENVER, Colo.—Mervin

"dog-house," Atchison
eliciting considerable "bar¬
gain hunting" interest. The
"story" on this Blue Chippy
is

in

from the work of

public

affairs

does
a

few

not
ex¬

from expert

sional public speeches of top man¬

R. Lell

agement people. We believe that
joined the staff of Dempsey- the
company can make a construc¬
Tegeler & Co., Midland Savings tive contribution to
good govern¬
Building. Mr. Lell was formerlv ment only if its managers
through¬
has

with

the

First

National

classification,

I

political work for
active concern with

the

legislative

area

we

effective¬

pert specialists in the company or
lobbyists or the occa¬

Dempsey-Tegeler

Bank

of

Denver.

out the

country accept these three

kinds of work

market

legislative difficulties, and in¬ carrier is that its price is well
stead following their remark¬
justified by its current value
able growth qualities, the sav¬ with
elements of future




ness

(Special to The Financial Chronicle)

Against the background of
the

Joins

issues

which may affect the business sit¬
uation or the economy as a whole

come

1958.

*

this

as

the state

200,000

Albertson's, Inc. class B
(non-voting) common stock (par

100,000

managers

We

$1) at $11

*

*

the

work.

profits.

par¬

and

state

all

is

shares of

of

both

legis¬

-

Boise,

tile and boot industries go on
with steady and substantial

issue

—

the

over

headquarters to serve as the cata¬
lyst in our government relations

J. A. Hogle & Co., of Salt Lake
City, and New York, on Sept. 22
new

process

in

for

process.
In this
trying to identify the
legislative opportunities or prob¬
lems before they become crises;
seek out opportunities to make a
constructive contribution to legis¬
lation—rather than just being op¬
posed to it; develop knowledge
and understanding on the part of
General Electric managers as to
how to be effective in legislative
work; provide each plant manage¬
ment with an analysis of the back¬
ground, education and record of
his
Congressman
and
Senators,
and important economic factors in

since its activities in the tex¬

ticularly helpful in roll-over

Participation

lative

a

second

labeled

(2)

Stock Offered
offered

the

In

and in the state.

Albertson's Inc.

builder

-

effectiveness in public affairs.

as

their responsibil¬

ity and do their best to encourage

With Merrill Lynch

other businessmen to

And it

(Special to The Financial Chronicle)

CINCINNATI, Ohio—William
Burke

E.

is now with Merrill
Lynch,
Pierce, Fenner & Smith Incorpo¬

rated, Dixie Terminal Building.

of the

is, therefore, not the job

new

Service in
*From

a

do likewise.

Government Relations
General Electric

talk

to

do

by Mr. Wood before the

American Bar Association's Committee

are

or

district.

We will communicate
sues

in

a

General

to

manner

Electric

on

the is¬

encourage

Managers

to

evaluate the impact for or against
the public interest in the welfare
of

the

business

system,

to

speak

up—to express their viewpoints—
in the community, in the state, to
their Congressman and to all of
the

employees in their plants
through works newspapers and
other

means.

The third kind of political work
for managers is to provide the in¬

spiration,
means

the

for

all

leadership,
levels

understand

of

the

manage¬

the

political
system of their community and
county and state. Practical politiment

to

on

Corporate Law Departments, Miami, Fla.

Continued

on

page

37

Volume 190

Number 5884

.

.

.

The Commercial and Financial Chronicle

(1253)

RCA Electronics introduces the tube of tomorrow
Called the Nuvistor, this
is

likely to start

a

thimble-size electron tube

revolution in electronics. RCA

velopmental models
appearance,

tube

ment

design. The result will be tubes that

can




take

perform
more

more

efficiently,

punishment,

use

are more

less

are

far

power,

reliable. De¬

being tried out by de¬

signers will have a profound effect on the size,

engineers scrapped old ideas—took a fresh look at
smaller,

now

and

and performance of electronic equip¬

for entertainment, communications, defense,

industry in the future. It is another example of

the way

RCA is constantly advancing in electronics.

RADIO CORPORATION OF AMERICA

17

The Commercial and Financial Chronicle

(1254)

18

...

Thursday, September 24, 1953

Canada: 1959 A Milestone Year
Continued from

Canada

first page

Quebec, in hydro-electric plants, aluminum
manufactories, and paper mills that turn out 50 %
of the world's newsprint. England must indeed
and

seem

like

"a

island" to the. Royal

little

tight

of

Couple after traversing the fabulous stretches
Canadian real estate.

World's Soundest Dollar
After

this

tribute

introductory

visiting

to

Royalty and to international amity we should
proceed to a current look at the flora and
fauna of the Canadian economy. First, about na¬
tional finances. The Canadian dollar is now the
now

choicest

currency in the world. The debt con¬
operation, completed in the summer of
1958, provided more maneuverability to the
Treasury. Canada has proceeded with good sense,
applying the surpluses of boom years toward re¬
duction of debt, and has not been averse to in¬
version

curring a budget deficit in times of less economic
buoyancy. As in the United States, with a sizable
budget deficit, there was some apprehension
about
was

of
in

inflation—and

resolute

effort

corrective

made via the interest rate. Thus the

posting

6.41% rediscount rate by the Bank of Canada
mid-August tempered speculative enthusiasm

a

and

contributed

to

a

more

stabilized

financial

climate.

banks

Canadian

have

seldom

looked

better.

excellent, deposits have been rising
and substantial new buying of bank shares has
come from reinvestment of funds received by in¬
vestors in certain
life companies, when these

Earnings

are

institutions

shares

sumers

performers include
Edmonton, British
American and Texaco. And there were rising
estimates of the through-put for Trans-Mountain
Pipeline leading to a better following in that
metals

industry, for the first

months of 1959, there was considerable

un¬

appointment of the National En¬

Board in mid-August, however, new assur¬
into the markets,
especially in natural
gas securities. The prospect of a fair return on
pipeline capital, the advancing of programs look¬
ergy

ance

this

year

have been

while

Groceterias gives it a good com¬
Each is great for give-aways, and a
lucky customer of either may find himself sud¬

Steinberg's Ltd., whose common stock
cently become a public issue, is believed
about the

the

Yukon.

ceives

the

No

miner

or

gold shareholder

ounce

slightest

Giant

ores

Yellow

or

lower-cost

ore

earning

mining techniques.

interests in Labrador and is

ing toward sensible gas export arrangements, and
the working toward completion of the Trans-

A

%

In Southern

a

favorite iron

to

the

big

steel

mills

on

the

lions

> A

<

limm

>

a

vast busi¬

in

10

will

earnings this

report

remarkable

a

year.

of oil, timber, and mineral laden
also, outside the U. S., the only major

acres

perhaps the most complete.
Had time permitted we'd have liked to talk at

length about Canadian Breweries, the largest in
the world, Aluminium Ltd. and its
rising output;
about Ford Motor Co.
increasing its interest in
Ford of Canada to 75% (from
271/£%); about the

an

great steel companies; about

some

exciting

Acceptance

and

Traders

OPPORTUNITIES IN CANADA

fx :-:-

STOCKS

DtMN

Our facilities
the

can

industrial
in

be of valuable assistance to those
interested

development of Canada and

of

benefit

Nesbitt, Thomson
all classes of Canadian external

and internal bond issues,

Exchanges,

or

Members

quoted

on

London, En?.
Ottawa

"

*'.

Calgary




^

PLACE, NEW YORK 5

Telephone WHitehall 4-8161

Montreal

Stock Exchange
Canadian

•'»

—

Member Toronto, Montreal

and Canadian Stock

Exchanges

Stock

Nesbitt, Thomson
Broad

25

Association of Canada

W., Montreal

140

Toronto

Federal

—

& Co.

Toronto Stock
Exchange

Exchange

and

Company, Inc.

Street, New York 4, N. Y.

Street, Boston, Massachusetts

Montreal

Winnipeg
Direct

Canadian Affiliate

Dealers'

355 St. James Street

Nesbitt, Thomson
Members

1-702-3

Associate Member American Stock Exchange
40 EXCHANGE

Investment

request.

Bomimiom Securities ©rporatiom
Philadelphia

Company,

Branches in the principal Cities of Canada

TORONTO, MONTREAL, OTTAWA, WINNIPEG.

BELL SYSTEM TELETYPE NY

and

Limited

'

CALGARY, VANCOUVER, VICTORIA AND HALIFAX

Boston

The

of

Head Office:

net New York-markets

DIRECT PRIVATE WIRES TO

*.

t

the.-Montreal and Toronto Stock

Vancouver
New

Halifax

York,

Montreal,

London

i

to

selecting suitable investments through which to

participate in Canada's assured growth.

on

new

land companies; about the
great credit companies
such as International

investors

Stock orders executed

and

years

has

.

in

Markets maintained in

like

railroad not government owned. As an across the
board investment in
Canada, Canadian Pacific is

Great

■',> ,fv
..

of

land. It is

equity.

el mtmM

/■-

Canadians

other, and with folks

Canadian Pacific
Railway is notable for its vast
transportation system—railways, airlines, steam
boats—its hotels, its
big controlled mining enter¬
prise, Consolidated Mining & Smelting and mil¬

interesting speculation because of the quantities
of ore located, and
cheap water transportation
available

Bell

continent,

increase in

dozen years ago are

Ontario, Steep Rock has proved

of

power

the

across

being realized. Ungava-Labrador is proving
up its vast reserves and is rapidly becoming one
of the major iron
producing sections of the world.
The Seaway is, for this Labrador trade, a
golden
boom and by the mid-Sixties 25 million tons of
ore a year
may be thus water borne. Hollinger
Consolidated, with plenty of gold, also has large

came

million

by Bell Telephone of Canada. Tele¬

are

a

half

steadily risen. Per
share for 1959 should reach
$2.40, up from $2.15
last year.
Stockholders, for whom the Bell toils,
should be pleased! British Columbia
Telephone,

Hollinger,

the dreams of

a

phones in service have doubled

Kerr-Addison,
among the equities most
respected by Canadian gold fanciers.
Cochenour Willans

done

ness

per¬

reason

Knife,

and

communicate with each

in the States—which is the basis of

for 25 years

from richer

re¬

highest merchandizing profit ratio.

Seventeen
to

pegging gold at $35
in a row. But that is still
the fact; gold shares, with few exceptions, remain
unvolatile and gains in earnings must be achieved
an

has

to have

Telephones and Transportation

price of gold will still get
argument anywhere from Sherbrooke to

an

run.

denly winning a mink coat or a ranch house.
Woodward's is going big on the West
Coast, while

Mere mention of the
you

Loblaw

petitive

now

certainty about such things as exports, rates of
return on pipelines, and whether there
might be
a
petroleum pipeline built. from Alberta to the
Ea.st. With the

far

so

confusing. International Nickel has led the field
in profitability. Many coppers — Consolidated,
Hudson's
Bay Mining, Opemuska, Maritimes,
Temagami and some more speculative newcomers
have been patiently waiting for a pick up in price
to past 32 cents or a strike in other climes that
might lead to that. The industry yearns for such
a
sturdy copper demand as carried a glacierpacked hopeful, Granduc, to $8 a share a few
years
back. Lead and zinc are also waiting
patiently for better metal prices.

Major Iron Ore Deposits

The Extractive Industries

seven

results

two

consumer

which shares with Sears Roebuck a half
interest
in the
big mail order company, Simpson-Sears
Ltd. Dominion Stores is the
leading food chain

issue.

In

witnessing big forward steps in-'

dollars out of
every three go
spending for goods and services,
So it is that with
steadily rising per capita income
and higher
living standards, Canadian merchan¬
dizing organizations are going great guns. There's
Simpson's Ltd., a fine department store chain

and

Calgary

is

iron.

Canada

into

of the better

some

Star,

In iron

In the oil and natural gas

In

Gas and Great Northern.

In oils

North

1959

Canadian

Ontario, Canadian Export, West Coast, Con¬

ern

mutualized.

were

Lakes.

pipeline brought renewed interest in such
Alberta Gas Trunk, Union Gas, North¬

as

wire

connections

Toronto,

between

Ottawa, Hamilton,

Kitchener,

(Ont.), Winnipeg, Calgary and Vancouver

Number 5884

Volume 190

.

.

The Commercial and Financial Chronicle

.

Finance, about the four

five big

or

paper

Cash Divs.

com¬
No. Con-

paper with our morning coffee; about all the
uranium that's been produced; about juicy steaks

Years Cash

Calgary; undulating wheat fields in Manitoba,

and British Columbia brown bears three times as

big

Khrushchev. But time prevents.

as

secutive

Divs. Paid

Beaver

So

274

a 21 gun salute to Canada,
resiliency, the zeal and ability of its
people and the exciting unfolding of its destiny

its economic

under

government that recognizes the dynamic

a

forces for

good, for material comfort, for peace,
prosperity and progress, inherent in the free
enterprise system. A magnificently solvent bank¬
ing system, a super-sound dollar, broad markets
implemented by major and regional Stock Ex¬
changes, have made for an ideal investment
climate in Canada—where sound companies, such
as

those below

dends for

earn

can

and pay

June

30,

1959

tion

June

30,

1959V

Based

Ltd.____

4.7

Men's

fur felt

Engaged

in

and

79

2.00

42%

4.7

26

0.40

b7%

5.3

construction

road

building

11

2.30

with

-5.6

Co.

Bank

Makes

19

0.25

5%

4.5

continuous divi¬

2.25

49%

4.5

50

1.00

37

2.7

production, refining,

3.4

1.05

19

0.10

10

1.00

11

0.80

15

1.50

33

4.5,

105

4.60

b216%

2.1

32

2.00

68%

2.9

24

1.75

53%

3.3

104

2.00

67

3.0

17

1.40

47%

2.9

35

1.35

34

4.0

21

cake

and

0.70

133/4

5.1

92

1.70

61%

2.8

Ltd

4.50

Co.

co.,

wholesaler and

Flooring Co. Ltd. "B"

1.40

37%

3.7

b24%

Brock

insurance

Malting Co., Ltd..
the

Ltd.

industries

Columbia

Full

44

2.00

43%

4.6

13

(Stanley) Ltd.

Building Products Ltd..

for

brewing St distilling

Canada Packers Ltd. "B"

Telephone

"Ord."

0.40

bll%

3.5

33

1.80

33%

5.3

line

of

prods.

packinghouse

Canada Permanent Mortgage

Corp.
Lends

Laundry supplies, hardware,
plumbing supplies, etc.

—

first mortgage security,

on

issues debentures, accepts deposits

Canada Steamship Lines, Ltd.

Asphalt roofing, flooring and

Freight
other

passenger

vessels:

Interests

and
diverse

include

hotels

insulation

Bulolo Gold Dredging, Ltd—
Operates
in

New

a

Steel

0.40

3.80

new
rolling mill St related oper.

Meat, lards,

23

0.85

19

12 Mos. to

Years Cash

June

30,

1959

13

0.60

12%

Power

&

Ltd.

Quotations represent June 30, 1959 sale prices or the last sale price

for stock dividends, splits, distributions, etc.

tion

June

Based

through

distributes

shoes

19591

Continued

Complete'coverage of the Cana¬

1959

dian

38%

0.60

17%

investment market is

through 26 offices of James

pro¬

Richardson & Sons, located from
Victoria, British Columbia, to
Montreal, Quebec. A1 complete

4.4

3.4

Canadian investment service via
direct

private wire is available
through Dominick & Dominick.

\

33%

1.9

21

0.65

16

*0.30

14

2.00

4iy2

4.8

20

new

b Bid.

on

June 30,

retail chain

Aluminium Ltd.

Quotations represent June 30, 1959 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June 30, 1959,

Paymts, to

30,

1.70

26
and

♦

§ Add current Canadian Exchange Rate,

Approx.
Quota-

Shoe Stores,

Ltd.

Canadian Bank of Commerce

vided
11

Makes

Ltd. "B"

Operates 793 branches throughout

Newsprint and allied Droducti

Agnew-Surpass

Co.

the world

Co.,

Paper

4.8

butter, poultry prod¬

—Canadian $ f-

Abitibi

Cable

% Yield

Including
Extras for

Wire and

b Bid.

Cash Divs.

Divs. Paid

4.5

prior to that date. Bid and ask quotations are as of June 30, 1959.

10 to 131 Years

No. Con-

Vinegar nnd apple products

Copper and steel wires and ropes

§ Add current Canadian Exchange Rate,
t Adjusted

Canada Vinegars Ltd

Canada

ucts, etc.

From

secutive

10.5

Guinea

Burns & Co. Ltd

♦

Have Been Paid

12

gold dredging project

Burlington Steel Co. Ltd.

DIVIDENDS

0.50

12%

4.8

Largest producer of aluminum

ingot in the world

Andian National Corp., Ltd..

5.0

Operates oil pipe line in
Colombia, S. A.

Anglo-Canadian Pulp and
Paper Mills, Ltd

Serving Investors Across Canada

Newsprint and allied products

Anglo-Huronian Ltd.
Holding &

operating co.—chiefly
gold mining

Interests in Can.

Anglo-Newfoundland Devel¬
opment Co., Ltd. "Ord."__

71/4

2.8

15

0.20

13

0.90

38

1.85

29%

6.3

22

0.72

14%

0.16

13

1.20

ESTABLISHED
OF

MEMBERS

LEADING CANADIAN

1B57
ALL

STOCK AND

5.0

19

COMPLETE

2.4

22

James Richardson & Sons
EXCHANGES

COMMODITY

Newsprint and allied products;
siso mining interests

Argus Corp., Ltd

,

Investment

co.—manufacturing Se
merchandising Interests

Aibestos Corp., Ltd
Mining & milling of asbestos flbrt

Ashdown Hardware Co., Ltd.,
J. H„ "B"
Largo wholesale and retail
business la

general hardware

Aunor Gold Mines
Ontario

Ltd

3.05

5.2

gold producer

Auto Electric Service Co. Ltd.

27%

electrical

carburetors

auxiliary

St

equipment

Bank

131

of Montreal

1.75

59

3.0

127

2.25

16%

56%

3.1

American investors in Canadian
securities may reach any part of
the expanding market through
the

investing

combined

two

long established Investment

facilities of these

Houses.

throughout the world

BANK

OF NOVA

Operates
offices
•

for

2.9

Operates 753 branches and agen¬
cies

FACILITIES

4.4

Service distributors of automotive

See

550

SCOTIA__

branches

and

sub-

throughout the world
Bank's

advertisement

on

page

20.

Banque Canadienne
Nationale

78

1.75

29

4.50

10

0.03

Operates 587 branches in Canada

Barber-Ellis of Canada, Ltd..
Stationery

and

printers'

b55

8.2

supplies

Canada

Dominick & Dominick
ESTABLISHED

Barymin Explorations Ltd.__

0.61

MEMBERS
A

Ontario.

Manufacturers

NEW

TORONTO

YORK,

STOCK

BARCLAY

of

20
barn

equipment, household
pumps, etc.
-•

and

0.35

9y8

3.8

stable

equipment,

♦

•

■

,

,

Quotations represent June 30, 1959 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June 30, 1959,
§ Add current Canadian Exchange Rate.
*
Dividend paid in U. S. Currency.




1870

4.9

Holding company, prospecting and
exploring various properties N W

Beatty Bros. Ltd

3.3

largest Canadian com¬
life, accident

sickness

Canada
Malt

largest privately owned
telephone system in Canada

CONSECUTIVE CASH

6.7

15

Holding and operating company—
machinery 8t equipment interests

controlling B. C.

Second

On Which

2.2

and largest foil converting
plant in Canada

and

42

British

Common Stocks

5.5

refining

Specializes in manufacture of
hardwood
flooring of all kinds

One of the

British Columbia Power Corp.

Electric Co.

(Listed and Unlisted)

10%

Sugar

Canada Iron Foundries, Ltd..

revenue

Ltd.

CANADIAN

0.375

16

Dominion

panies underwriting

Holding

I

10

cement

&

Oldest

stamps, and similar Items

Petroleum

0.4

Canada Foils, Ltd

Note

British American Oil Co. Ltd.

26

drilling rights

retailer

25

bank notes, bonds,

ga3

0.10

29

and

and beet sugar

Cane

Canada

Traction, Light and

Ltd.

Canada

Bread

branches

Diverse

British American

1959

23
oil

Canada Bread Co.,

and

Power Co., Ltd. "Ord."___
utility Interests In Brazil

30,

in Alberta

Co., Ltd.
b50

June

Corp.,

Canada Cement Co., Ltd

several cities in central Canada.

Brazilian

Edmonton

Ltd.

wool felt hats

general

on

Paymts. to

tion

June 30,
19599

June 30,
1959

Divs. Paid

Calgary &

Portland
—

Bird Construction Co. Ltd

in

26%

Leases

Ltd

12 Mos; to

Years Cash

Based

Quota¬

-Canadian $ $—

fl.25

and Quebec

Hats

secutive

Extras for

,

16

Important telephone system

Biltmore

% Yield

Including

Paymts. to
June 30,
1959'

supply retailer,

telephone Co. of Canada

Approx.

Cash Divs.
No. Con*

on

distribution

generations.
TABLE

12 Mos. to

Quota-

branches in Canada

in Ontario

conclude with

we

Lumber Co.

Lumber & building

Most

-

Extras for

—Canadian $ §—

Bell

Climate

Ideal Investment

Approx.
,% Yield

Including

panies that make it possible for us to have a news¬

in

19

(1255)

14

AMERICAN

EXCHANGES

7-4600

WALU STREET

NEW YORK

A

on

page

20

20

The Commercial and Financial Chronicle

(1256)

if

Interest Rates, Bond Market
And the Business Cycle

term—will

as

well

reach

soon

Continued from

.

as

the

would
to

and

Cash Divs.

peak

to

would

which

bonds,

bond

on

well

expects

interest

of which

will

serious

and

indicate

stock

picture,

the

market

level

will

Canadian

would

change

continuing

decline

reversal
a

the

addition

In

in

from

the

to

the

industry

and

b

e

t

the

and

consumer

ANGELES, Calif. —An¬
nouncement was
made by > Mark

a

Davids,

rate

billion

1959.

Thursday,

the first

ness

purposes

ury

will

borrower

the

able

of

of

being

will

a

repay

U.

and

Marcus

Nadler

pres

¬

confidence

Congress to

discipline,

its

prac¬

unwill¬

increase

the

as

to have

than

gloomy

five

maturity of
the rather
and

a

years,

budgetary

constant

outlook,

increase

wages and prices even

1957-58

recession

shadow
dollar.

*From

the

on

market¬

in

both

during the

have

cast

a

integrity of the
policy of the

A firm credit

talk

by Dr. Nadler before the
Seminar
of
the
New
York
Bankers
Association,
New
York
a

Investment

City, Sept.

18,

1959.

credit

lation

of

is

the

eventually

effect

an

on

inventories

the

well

as

guided

5.8

12.00

b742

1.2

38

3.6

Ltd.

.

3J

1.35

33

1.25

40

3.1

30

1.25

40

3.1

34

0.80

28%

2.8

16

1.50

281/s

5.3

16

0.70

10

1.025

191/4

5.3

1.00

50

2.0

10

1.50

a49

2.5

25

1.50

b62

2.4

15

1.00

23i/>;

4.3

12

0.11

3.70

3.0

15

0.50

81/2

5.9

18

1.00 J

23

0.60

36

2.00

•

"A'

allied products

compressors,

pulp and

Oil

Cos.,

pneu¬

paper

Ltd
distribution

&

private

railway system of

Automotive accessories,

Shipbuilding,

■

industrial

repairs: also

and

Canadian

makes

Westinghouse

Airbrakes
electrical

0.4

mining machinery

Co.,

Ltd.

other government

180

parts, etc.

Canadian Vickers, Ltd

vehicles—as(

agencies.

and

large

variety

of

apparatus

of

macaroni,

ver-

mlcelli, noodles,

fancy pastes and
-canned foods. Plants at Montreal,
St. Thomas and Lethbridge '*

Admit Revson

Chartered

Trust

Co

General fiduciary business

ATLANTA,
11

Marietta

bers

of

the

change,
fred F.

con¬

on

Ga.—Courts & Co.,

Street,
New

Oct.

N.

York

will

1

W.,

;

mem-;

Stock

admit

Chateau-Gai Wines Ltd

■

Wines and

Ex¬

Al¬

Juices

-

Cochenour Willans Gold

Mines

<.

Revson, Jr., to partnership.

'

-

Gold

Ltd.

producer

N.

W.

Ontario

re¬

;

Stern, Frank Partner

ing and the high ratei of interest
may slow down
the offerings of
and

30

trust

Manufacturers

the

on

Invest.

Catelli Food Prod. Ltd. "B"-_

bound

Moreover, the

obligations

31

sell¬

St

Canadian Tire Corp., Ltd

mis¬

training programs,
navy and. air

as

tools,

"The"

Courts & Co. to

supply of mortgage money
adversely affect home-build¬

tax-exempt

1.80

Canada

army,

civilian

and

for

duced
will

4.5

Electric

Can, Pac. Ry. Co. "Ord."____

rate

ability of builders to obtain
struction loans.

29

Falr-

type Invest,

Petroleum refining

^

He

space

evaluation

force

accumu¬

and

1.30

14

matic

research, development

the

past few months.
As the
policy of credit restraint is con¬
tinued, the reduced availability of
bank

on

at

10

Canada

Manufactures

The

indefinitely

4.0

Chicago

General

Gen.

Canadian

has

commands.

of

Chemicals and

graduate of

a

for

of

Co.

Canadian Ingersoll-Rand Ltd.

the

at

agents

&

Canadian Industries Ltd

will

decline.

then

221/2

Morse

manufacturing

rights

products in

on

Academy,

various

serving

or,

activity

1959,

24,

Program

the

increase interest rates
with

and

volume of consumer credit cannot

ingness to permit the Treasury to
bonds

and

luncheon

a

Naval

siles, satellites,

boom

throughout 1960

business

off

level

0.90

waterways

sales

Management

'

obli¬

the

8.5

24

__

Morse

Canadian

responsible for the devel¬

Range

weaknesses

some

whether

continue

whether

inflationary

of

fiscal

ing

opment of the full Pacific Missile'

the extent of which

indicate

will

maintain

to

1960

appear,

a

Monroe,

in

now

well

will

Sept.

S.

served

is

constant
consider¬

short-term

of

present

Space" at

Admiral
the

but also the Treas¬
in a stronger posi¬

amounts

During

The failure of

State

it

may

will

in the international position of the
dollar.

the

decline

gations.

desire to combat

more

seasonal

a

Federal

guided by the

able

be

Instead

tion.

continue to be

tice

be

Not only

in the demand for credit for busi¬

Reserve credit

sures

there

will

22

and

Ltd

Fairbanks

Exclusive

Renaissance Room, Biltmore Hotel.

quarter of 1960.

1.875

make

Canadian Gen. Elec. Co., Ltd.

film entitled

In

re-

policies

.

"

"Seapower In The Space

on

and

to

balance

banks,

.

the

address

"Man

i rements

during

Club

particu¬

ranges—will

on

Co., Ltd.
Exclusive

three national

the nation's

of

Age"

cur¬

cash

and

home

at

Monroe,

Money market conditions should
become somewhat
easier during

of

obligations

q u

exist

3.7

dredging; construction <St

Canadian

Commander of the Pacific
Range at Point Mugu—

missile

one

Rear Admiral
United States'

that

larly abroad.

short-term

rent

Navy,

po¬

about the future of the dollar that

toward

40y4

32

Co., Ltd.
bushings

Celanese

repair work

of

Club

Bond

$7

and

its

P.

Missile

way

1959

1.50

grain

and

subldlarles

—

bearings,

General
'

Co.,

&

Ryons

the

$5

w e e n

meet

swayed by

pressures,

of

Angeles

Jack
not

Lester,

President

would

will go a long
dispelling the fears

litical

1959 ♦

15

Canadian Dredge & Dock
Co.,
Ltd.

Space

on

LOS

Los

bank,

central

may

sell

to

billion

in

in¬

credit

for

trade

expected expansion
c r e d i t,
t h e
Treasury will
have

seasonal

demand

Bronze
co.

bronze-

Canadian

To Hear

favorably affect bond prices.

crease

1959

on

Paymts. to
June 30,

8ynthetic yarns and fabrics

Dr.

interest

equities

in

June 30,

castings

LA.

1960 the extent

He cautions that

boom.

of the

addition,

In

off.

tion

30,

22

Holding co.—brewing
milling Interests

have a
prices.

Holding

weaknesses during

course

that

notes

rates

cyclical

some

June

Based

—Canadian $ §—

Canadian Breweries Ltd

...v

market conditions will occur and short-term as

long-term

as

Nadler

Quota-

12 Mos. to

secutiv;

Divs. Paid

State Hankers Association

Tight money can be expected to last until the first quarter of 1960

% Yield

Extras for

Years Cash

shift from stocks

a

Approx.

Including
No. Con-

market to decline

equity

lead

favorable effect

Academic Dean, Investment Seminar of New York

when easier money

19

page

during the present cycle and then
level off.
A continued tendency
for

Thursday, September 24, 1950

long-

their

r.

Canada: 1959 A Milestone Year

renewal

a

..

rates—short-term

York University

Professor of Finance. New

to

wage-price spiral;
It is quite possible that interest

of Institute of International Finance and

Director

lead

steel

the

of

settlement
should

of the

By DR. MARCUS NADLER*

it

the

strike

.

LOS

ANGELES, Calif.—On Oct.
Roberta Mace Bennett will be

1,

thus

admitted to limited partnership in

curtail public works. International Stern,
Frank, Meyer & Fox, 325
competition will increase and will West Eighth Street, members of
be felt not only in foreign mar¬ the New York and Pacific Coast
kets but also at home, particularly Stock
Exchanges.

Coghlin, B. J. & Co. Ltd
Manufacturer

of

railway
equipment

heavy Industry

Collingwood
Operates
elevator

Conduits
Rigid

2

a

In

and

Terminals, Ltd.

bl8

5.6

million bushel grain

Collingwood, Ontario

National Co.,

electrical

conduits,

Ltd._

12%

4.7

elbows,

couplings, etc.

Confederation Life Assoc
Wide

life

♦

range

of

endowment

133

1.5

and

policies

Quotations represent June 30,

1959 sale prices or the last sale price

prior to that date. Bid and ask quotations
§ Add current Canadian Exchange Rate,

are

as

of June 30,

1959.

b Bid.

Underwriters

To

help

you

Distributors

—

Dealers

—

CANADIAN

bear the burden

Government, Municipal, Public Utility
As

a

you

businessman dealing in Canada,
face the same kind of problems

with taxation

But

as

you

and Industrial Securities

do in the U.S.A.

Markets quoted, information furnished

knowing the facts

on the taxes that
affect your interests north of the
border can
do much to ease the load. The
information

you
a

need is set down in clear, concise form in

booklet offered free of

•

j

charge by The Bank

You

can

obtain

your

Agency, 37 Wall Street, N.Y.

Gentlemen:
Please

send

j

booklet

on

|

Name

Legislation Affecting
free copy of this

helpful BNS booklet just by filling in and
mailing the coupon.

1903

The Bank of Nova Scotia,
New York

It's the latest,
completely
revised edition of the BNS
memorandum on

Canadian Enterprises.

Established

CFC9

of Nova Scotia.

Income Taxes and Other

Business

request.

on

me

a

free

copy

of

your

CORPORATION LIMITED

newly-revised

Income Taxes and Other Legislation.

244 St. James Street
Toronto,

Halifax,

Calgary,

I
|

ROYAL SECURITIES

Edmonton,

Saint John,

West, Montreal 1

Quebec, Ottawa,

Vancouver,

Victoria,

Hamilton,

Charlottetown,

Winnipeg
St.

John's

Address
Teletype service between offices from coast to coast

Company Name

THE BANK OF NOVA SCOTIA

Position

New York

□ Check here

ROYAL SECURITIES COMPANY
Agency: 37 Wall Street. Chicago Representative:

Board of

Trade Bldg. General Offices: 44
King St. West, Toronto.
London Offices: 24-26
Walbrook, E.C.4; 11. Waterloo Place, S.W.1.




to put your

list for The BNS
month

on a

name

on

our

free mailing

Monthly Review, which reports each

current topic

affecting Canadian business.

Members:
Montreal Stock

Exchange

Canadian Stock Exchange

The Toronto Stock Exchange

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

,

(1257)

Canada: 1959 A Milestone Year;
Cash Divs.

This

Approx.

including

is neither an offer to sell nor a solicitation of an offer to buy
of these securities. The offer is made only by the Prospectus.

announcement

% Yield

No. Con-

Extras for

secutive

12 Mos. to

Years Cash

June

Divs. Paid

Quotation

30,

Based

Paynits. to

June 30,

1959

on

June

1959♦

NEW ISSUE

any

September 24, 1959

30,

1959

—Canadian $ §—

Consolidated Mining &

Smelting Co. of Can; Ltd.
Lead,

zinc, silver,
tilizers, etc.

27

0.80

19 %

2.00

42%

4.7

112

0.85

42

2.0

fer¬

Consol. Paper Corp., Ltd
Owns

five mills; daily
capacity 2,479 tons

Consumers

Gas

Manufactures
in

the

Wide

variety

distributes

cohol

of

and

and

(Par Value 34£ Per Share)

glass

24

1.50

33

4.5

23

1.10

18%

5.9

25

0.80,

12%

6.3

1.2

containers

operating

co.

al¬

—

The Public

spirits

Cosmos Imperial Mills Ltd.__
Manufactures
cotton

Common Shares

gas

Corby (H.) Distillery Ltd. v.t.
Holding

heavier

grades

Offering Price is Net Asset Value plus an underwriting com'
change at 2:00 P.M. and 4:30 P.M., E.D.T., each day. In
single transactions of 2,000 shares or more the underwriting commissions
and Public
Offering Price will graduate downward. The offering period ex'
tends until October 2, 1959 unless sooner terminated
by the Representative.
mission and will

of

duck

Crain. R. L. Ltd
Manufactures
business

14

&

70.25

21

31

2.00

62

60

sells

0.80

31

continuous

forms

Crown Cork & Seal Co., Ltd.
Bottle

for

caps

Capital Fund of Canada, Ltd.

area

Consumers Glass Co., Ltd
»

New York

newsprint

Co.____

and

Toronto

1,000,000 Shares

4.1

14

chemical

the

beverage

3.2

,

in¬

dustry

Crown

Trust

General

Crow's

Co
Pass

Coal

2.6

NEW YORK

Ltd.

42

producer on
western
Canadian Rockies

0.60

20

Company Act

3.0

-

23

1.70

'

32%

less

3.8

b535

3.2

and the United States.

23

4.3

LOO

18

5.6

1.00

19%

5.1

33

0.60

40

0.70

20

17.00

47

1.00

10

18%

and Anglo Invest¬

Corp., Ltd

Investment

holding

and

cranes

of

company

all

Dominion

structural

'

„

kinds

Manufactures ladies'

Ltd

;

,

ii

i

i

—

.

.

.

..

i

Copies of the Prospectus may be obtained in any State only from brokers or dealers
who may lawfully offer the securities in such State,
including the Underwriter,
Carl M.Loeb, Rhoades a Co., and the Selected Dealers listed below.

v

Corset Co.

...

\

Bridge Co., Ltd.—

Bridges,
steel

Ltd

gold producer

Dominion

than

50% of its total assets invested in securities which provide a
participation in Canadian industries and natural resources. The Fund re
serves the
right to invest up to 50% of its total assets in the securities of
companies which derive their income from sources outside of both Canada

18

Mines

ment

Canadian

a

policy of the Fund is to invest in the securities of companies
deriving their income from sources outside of the United States, with not

5.2

holding co—interests include a
complete line of whiskies and gins
Ontario

LTD. is

registered under the United States Investment
diversified, open-end investment company.

The basic

A

Dominion

as a

slope

Distillers Corp.-Seagrams
Ltd.

Dome

CAPITAL FUND OF CANADA,

N.R.O. investment company

Co.,

Coal
of

-

fiduciary business

Nest

foundation

garments

Dominion

Ltd.

Engineering Wks.,

___

Wide

variety

of

machines

and

Carl M. Loeb, Rhoades 8C Co.

equipment

Dominion
Towels,

Fabrics, Ltd._____

tapestries,

draperies,

bl2

5.0

etc.

A. G. Becker & Co.

Johnston, Lemon & Co.

Piper, Jaffray 8C Hopwood

Incorporated

Companies and Banks Which Have Paid Consecutive
Dividends from 5
,

to

10

Years

on

Page 27

Farwell, Chapman & Co.,

■

i
""""

•,

.

Foundries

&

steel

H

'

""""

48%

42

2.60

85

3.1

16

8.00

b270

3.0

2.10

42%

Wide

14

1.00

19%

.

.

ijf:

-'nA y jC*,

'

J. Barth 8C Co.

Jones, Kreeger 8C Co.

'

"

5.1

1.25

66

1.9

14

variety of

1

4.9

0.525

17%

3.0

48

0.60

10%

5.6

14

0.75

14%

5.1

33

1.60

39%

4.1'

22

1.50

29

5.2

16

*1.20

17%

7.0

primary

Kirkpatrick-Pettis Company

products

Dominion Glass

■

2.3

18

of

1.10

73

variety

Lovett Abercrombie & Co.

Bateman, Eichler 8C Co.
23

wide

Mead, Miller 8t Co.

*

*

Steel

Ltd.
Makes

Co., Ltd

1

Bacon, Whipple 8C Co.

Boettcher and

Operates company for fire insur¬
ance, etc.

Blunt Ellis 8i Simmons

'
■

„

glassware

Dominion Insurance Corp

Sutro & Co.

,

"
■

Dominion

J. M. Dain & Co., Inc.

y

Second Table Starting

.

Betts, Borland & Co.

Appears in the

Company Ingalls 8i Snyder

/

•

A. G. Edwards 8C Sons Joseph Walker & Sons

Dominion Oilcloth and Lino¬

leum

Co., Ltd

Wide

range

cloth

products

of

linoleum

oil¬

and

Dominion Steel & Coal Corp.,
Ltd.
A

holding

co.—coal,

iron

de

;teel

Interests

Dominion

Stores

Operates grocery

Dominion

Ltd
meat

&

Tar

and

Chemical

tar

&

chain

Co., Ltd.
Distiller
of

of

coal

J

producer

Its derivatives

Dominion
Wide

Textile
of

range

Co., Ltd—

cotton

and

yarns

fabrics

Donohue Brothers Ltd
Owns
at

and

operates

Clermont,

Economic
General

a

mill

paper

Quebec

Invest't

Trust Ltd.

investment

trust

business

Eddy Match Co. Ltd—
Manufactures

and

book

matches

is

lumber

in

facture

of

Electrolux

and

wood

through

business

vending

and

Greensliields & Co

Ine

subs,

Specializing in Canadian Government

manu¬

machines.

cleaners,

vacuum

(n.y.)

and

Corp

"Electrolux"
air

sells

&

*

-

*

.

Provincial, Municipal and Corporate Securities

iv '

purifiers

Equitable Life Insurance Co.
of

Canada

Wide

of

21
life

and

endowment

0.90

b53

1.7

27

line

.1.20

26

4.6

25

1.50

22%

6.7

1.00

18

5.6

64 Wall

.

Street, New York

policies

Falconbridge Nickel Mines,
Ltd.
Nickel,

copper,

produces

steel

cobalt;

*

Canadian

subsidiary

Famous

Players Canadian
Corp., Ltd.

'

Largest
ture

Affiliate

castings

operator

of

motion

pic-

Greensliields & Co Inc
,

-

theatres In Canada

Business established, 1910

Fanny Farmer Candy Shops,
Inc.

.......

32

Operates large candy chain
♦

Quotations represent June 30, 1959 sale prices or the last sale
price
prior to that date. Bid and ask quotations are as of June
30, 1959.
§ Ada current Canadian Exchange Rate.
>
t Adjusted
*
Dividend

for clock
paid

dividends, splits, distributions,

in U.

S.

etc.

Currency,

b Bid.




Continued,

on

page

22

Montreal

Ottawa

.

Quebec

Sherbrooke

London, Ontario

Toronto

32

The Commercial and Financial Chronicle
22

of

Members

coast

Co., J. Marion Engler, VicePresident, St. Louis Union Trust
Company, Alois T. Bolfing, Treas¬
&

the

of

are

Transit Casualty Company,
Maloney, head of the
research department, Edward D.
Jones & Co., all of St. Louis.
and John J.

of

Association

National

Investment Clubs at the SheratonJefferson

Hotel

Louis

St.

in

The

Natiortal

by four

'

clubs composed of 40
Today, the organization
comprises 4,647 clubs and 64,151
individuals. NAIC clubs may be
Michigan

persons.

found in
well

as

state of the union
foreign coun¬

every
as

several

tries.

Among
conclave

shank,
for

speakers

William

are

Jr.,

David

at

Cruick-

H.

director
L.

individuals

groups

friends,

of

are

small

neighbors
who

associates

business

Bank

or
meet

of St. Louis, and Irving C.
Smith, Vice-President and Chair¬
man
of
the
budget committee,

monthly

Monsanto

advises affiliated groups to invest

Chemical

Company.

England Tel & Tel

to decide how they are
invest their pooled funds. NAIC

to

the

at

proceeds

re¬

of

the

t>e used for general

proceeds
corporate

purposes.

The debentures will be redeem¬
able at the
at

option of the company

redemption prices ranging from

107.40%

to

plus accrued in¬

par,

terest.

Collier Norris

6?

Quinlan

MEMBERS
MONTREAL

STOCK EXCHANGE

service.

EXCHANGE

STOCK

About

54%

Other

furnished

typewriter
services

line

£?

Limited.

Quinlan

com¬

and

vision

of

and

for

use,

radio

and

and

programs

purposes.

tele¬

service

facilities for private

teletypewriter

For the

Association of Canada

and

Montreal

include

the
tele¬

for

other

six months ended June

net

income

of

$24,315,358.

000

on

of

of

Sept. 22 offered

approximately
51/2%

new

deben¬

tures, dated Oct. 1, 1959, and ma¬
turing July 5, 1960. Priced at par,
the
new
issue
is
being offered
through
John
T.
Knox, Fiscal
Agent and a nationwide selling

a

maturity of Dec. 1, 1959 and Jan.
4, 1960, for a total of $5,000,000,

Canadian service

increasingly placing their

members

we

are

have

direct wire

a

to

our

for

a

quote, an order,

a

request

information, try Bache. Our fortnightly

Canadian Market Letter

on

Address Canadian

from

the

Corp.

request.

is

engaging

in

a

from
offices
Northeast First Avenue.

NEW

YORK,

STOCK

are

at

AMERICAN. TORONTO
AND

COMMODITY

AND

OTHER

EXCHANGES

Robinson, President; F.
C. Gardner,
Secretary; and D. M.
Robinson, Vice-President.

ST.

W.

360

IMpire 0-4871
founded J879

Hamilton: 20 King Street.East




J.

Freiman,

Owns
ment

&

Tel: JAckson 8-4281

4.9

lumber

and

and

yarns>

Ltd

operates

store

Gatineau

_

largest

3.6

'

Co

Power

b35

depart¬

Ottawa

in

22

11

0.20

19

0.40

33

6.00

225

2.7

0.50

8

6.3

16

in

energy

1.45

35

Hydro-electric

1.80

b45 '

4.0

13

1.60

41

3.9

38%

3.8

Eastern

Canada

General

Petroleums

of

Can¬

ada Ltd. "Ord." & Class "A"
Oil

well

Household

rant,

3.55

5.6

drilling contractors

General Steel Wares Ltd
utensils;

and

18%

2.2

hotel, restau¬

hospital

equipment;

refrigerators, etc.

Goodyear Tire & Rubber Co.
of Canada, Ltd
Natural

and

synthetic

rubber

products

Gordon

Mackay

Stores

Ltd.

"B"
subsidiaries

which

tribute textile products and

dis¬

allied

goods

Grand & Toy Ltd..:
Manufactures

commercial

eral

stationery

and

&

gen¬

distributes

business

&

forms

office supplies
throughout Ontario

furniture

&

Great Lakes Paper Co., Ltd..
Manufactures

newsprint

and

un¬

bleached sulphite paper

Great West Coal Co., Ltd."B"
Wholesale

of

distributor

coal

13

0.50

of

range

accident

life,

12.5

I

.

Great-West Life Assur. Co
Wide

4.00

lignite

.

60

4.30 b341

1.3

and

health policies

Great West Saddlery Co., Ltd.
Wholesale

variety

wire

of

General fiduciary

Maufactures

large
products

Mines,

0.20

31

0.80

27

3.0

f0.50

18

3.1

0.14

b2.30

6.1

18

0.90

24

variety

4.95

4.0

0.50

13%

3.8

17

1.00

27%

3.7

b4.45

2.2

of
-

Ltd

gold producer

Hamilton Cotton Co., Ltd
Wide

22

business

Hahn Brass Ltd

Ontario

1.1

products

Guaranty Trust Co. of Can._

metal

9

general

and riding gooda

Greening (B.) Wire Co., Ltd.
Wide

f0.10

21

of

10

13

distributor

store mdse.,

textile

of

variety

and

seamless

In

"Wilton"

variety

"Axmln-

parts

Products

Paper

0.10

13

Manufactures

cluding

paper

containers

products In¬
corrugated

&

,^7

.

products

Hinde

■'

and

Dauch

•' '•,

7

Paper Co.

of Canada Ltd
Wide

5.6

rugs

automotive

of

bl6

products

Harding Carpets Ltd

26

1.80

55

3.3

44

of

variety

0.48

31

1.5

25

3.00

51%

5.8

paperboards,

boxes, etc.

Hollinger Consolidated Gold
Mines, Ltd.
Ontario

gold producer

Smelting Co. Ltd
Manitoba
♦

copper

& zinc products

Quotations represent June 30, 1959 sale prices or the last sale price

prior to that date. Eid and ask quotations are as of June 30,
§ Add current Canadian Exchange Rate,
t Adjusted for stock dividends,

1959.

splits, distributions, etc.

b Bid.

to

Fifty

years

Branch Offices
Dominion
68

Bank

Opens

is conducting

located at

TORONTO

and

a

by

Branches

360 St. James St. West

J

MONTREAL

private
at

Royal Bank BIdg.

BIdg.'

Street

Yonge

Connected

PETERSBURG, Fla.—Arch

Roberts

of specialized financial service

Canadian brokers, banks and institutions

wires with our Main Office

Boston, Mass., Washington, D.

C.,

Bloomfield, N. J., Princeton, N. J., and Oil City, Pa.

secu¬

Avenue, North.

Laidlaw

T. H. Fitzgerald Opens

Bay Street, Toronto

3.6

30%

rities business from offices at 480

Street, New York 5
Dlgby 4-6300

13%

1.50

fabrics

A.

139

M. A.

First

36 Wall

Wide
variety paper
products;
synthetic

Department

Baciie & Co.

0.50

-

contractors

Officers

(Special to The Financial Chronicle)

LEADING

general

securities

business

Arch Roberts

MEMBERS

&

Companies, Ltd

Over

(Special to The Financial Chronicle)

MIAMI, Fla.—Denmar Corpora¬

or

1.25

2.7

1959.

Form Denmar

tion

Whether it's

Proceeds

maturing Oct. 1,

office

there, designed to handle volume.

1.

14

bl82%

financing will be used to refund
$179,000,000 of 3.45% debentures

Why? As Toronto Exchange

us.

reopened and sold for deliv¬

Oct.

ery

5.00

16

Ltd.
Engineers

Fraser

that

issues already outstanding with

demanding fast, reliable

1959

Hudson Bay Mining &

group of securities dealers.
It
was
also
announced

were

1959 ♦

Canada

of

Ltd.

$133,000,-

nine-month

27

20

_

Co.

Hendershot

a

1959

on

Paymts. to
June 30,

June 30,

Canada,

"B"

Wide

The Federal Intermediate Credit

issue

of

Hayes Steel Products Ltd.

Debentures Offered
Banks

tion

30,

Automotive manufacturer

ster"

Federal Credit Bank

through

Ltd.

Co.

Foundation

Specializes

Toronto

Brokers and dealers

Motor

Hallnor

/

30, 1959 the company had total
operating revenues of $186,394,074

MEMBERS
Dealers'

the

communication

exchange

transmission

Collier Norris

of

pany's telephones are in metro¬
politan areas having a population
of
100,000 or more, about 31%
being in the metropolitan area of
services

trades

Ford

Manages

is engaged
in
furnishing communication serv¬
ices, mainly local and toll tele¬
phone service, in Maine, Massa¬
chusetts, New Hampshire, Rhode
Island and Vermont. On June 30,
1959, the company had 3,130,074
telephones in service and Westerly
Automatic Telephone Co., a sub¬
sidiary, had 10,724 telephones in
company

Boston.

The Investment

are

remainder

The

June

Based

—Canadian $ §—

issue

the

time

The

CANADIAN

Divs. Paid

Stuart & Co. Inc. is
manager of an underwriting syn¬
dicate which publicly offered on
an

Quota-

12 Mos. to

secutive

Debentures Offered

22

Approx.
% Yieid

Extras for

Years Cash

Halsey,

ceived.

clubs

Investment

Inc.; Guy S. Freutel, first
Vice-President, Federal
Reserve
pany,

affiliated

43%.

climbed

has

Com¬

and

of

number

research

of

Babson

year's

this

New

Including

.

Association -was

]

■

No. Con-

of $45,000,000
Topics
to
be
spotlighted
at
New England Telephone & Tele¬
workshop
sessions
on
Friday
evening
include" "Analyzing
a graph Co. 35-year 5%% deben¬
Financial Statement," "Basic In- tures, due Sept. 1, 1994, at 101.90%
and
accrued
interest, \ to
yield
vestment Club Accounting," and
"Stock
Selection
Guides
and 5.625%. The group won award of
the debentures at competitive sale
Analyses." All of the dozen work¬
on
Sept. 21 on a bid of 100.42%,
shops will be conducted by offi¬
Net proceeds from the financ¬
cers and directors of the National
Association of Investment Clubs. ing will be used by the company
to repay advances from its parent
Last year, NAIC met in Chicago.
Since that time (November, 1958) organization, American Telephone
& Telegraph Co., which are ex¬
the organization's club
member¬
ship has jumped 36%, while the pected to approximate $42,700,000

on

Canada: 1959 A Milestone Year
Continued from page 21

Cash Divs.

Sept.

Friday and Saturday, Oct. 30 and
31,
7-•
formed in Detroit in 1951

buy
growth
after careful analysis.
to

and

urer,

expected to at¬

ninth annual convention

the

re-invest dividends,
compaines

regularly, to

research, G. H. Walker

director of

CHICAGO, 111.—More than 1,000
members of investment clubs from
tend

panel discussing

the

Hold Convention
coast to

a

problem of portfolio manage¬
ment will be Frank X. Keaney,

Investment Clubs to

"

Thursday, September 24, 1959

...

(3258)

Established

MANLIUS, N. Y. —Thomas H.
Fitzgerald,

Jr.

is

engaging

in

a

securities business from offices at
505

firm

Co.

Pleasant
name

Street,

of T.

H.

under

the

Fitzgerald &
\

25

BROAD

&

Co.

1842

STREET,. NEW YORK

4, TJ.

Members Netv York Stock Exchange
and other

leading Exchanges

S. A.

Number 5884

Volume 190

.

..

The Commercial and Financial Chronicle

(1259)

Cash Divs.

Canada: 1959 A Milestone Year
Approx.
% Yield

Including
No. Con-

Extras for

secutive

Quota-

12 Mos. to

Years Cash

June

Divs. Paid

tion

30,

June 30,

1959

Based

secutive

Lends

money

first

on

95

security and operates deposit and

Makes

debenture accounts

Imperial Bank of Canada
Operates 304 branches

84

70%

1.80

throughout

19

__

lacquers,

1.50

34

dowment

and

Imperial
With

term

Oil

life,

81

2.00

40%

3.0

Industrial

«fc

4.3

insurance

Nickel

and

of

Co.

26

92%

*2.60

14%

25

1.25

b25

and

owns

Holding and operating co.
erates

pulp

Canada

and

U.

In

47%

3.1

16

Ltd

*0.667

38%

1.7

32

3.0

1.30

32y8

operates

Ontario

Royal

&

17

Rice

Mills

14

31%

2.40

49

and

other

1.00

10

10.0

<

of drugs,
general merchandise

for

1.00

bl5%

other

28%

5.0

18

Hosiery Mills

0.60

b20

3.0

0.32

5

6.4

23

0.80

17%

4.5

61

1.75

56

3.1

30

0.60

Ltd.

"B"

1

f0.90

16

Ontario grocery wholesaler

National

15

0.80

&

National Grocers Co., Ltd

6.5

tooth

and

12

chemical

19

12

Wholesaler

Manufactures ladies' hosiery

3.1

National Steel Car Corp., Ltd.
Railway

automobile chassis,

cars,

etc.

12

number

3.00

46

6.5

National Trust Co., Ltd

of

General

trust business,
accepts deposits

houses

also

Neon Products of Canada Ltd.
14

1.35

18

♦

Quotations represent June 30, 1959 sale prices
prior to^that date. Bid and ask quotations are

or

1.00

b26%

the last sale price

Quotations represent June 30, 1959 sale prices

prior to that date. Bid and ask quotations
§ Add current Canadian Exchange Rate.
♦

Dividend

a

0.80

21 %

1.20

29

4.1

21

0.20

33

1.25

26

4.8

11

1.00

25

4.0

22

0.06

14

0.60

11

5.5

37

0.40

31%

2.00

as

natural

and

Corp._

development

and electrical
panies in Alberta

of June 30,

16

of

paid in U. S.

Currency,

b Bid.

s

Investment Foundation Ltd._
type

Management

investment

IRON ORES

trust

Journal

Publishing

of

Co.

Ottawa, Ltd.
"The

Publishers

Journal"

Ottawa

Kerr-Addison Gold Mines
Ltd.
Ontario gold producer

Labatt Ltd

John

General brewing

-

to meet

business

Gold Mines Ltd—

Lamaque

6.5

3.10

Quebec gold producer

Laura

Secord

Shops,

Candy

Retail

chain

candy

Ontario

in

i

?-

Ltd.

printing and litho¬
Manufactures labels,
folding cartons and calendars, etc.
Engaged in
graphing.

Leitch Gold Mines Ltd
Ontario gold

—

Wholesale hardware trade

Operates

"self-service"

133

markets

in

northern

•

V

.'

up

plant

ores

of

Chocolate

other

and

precise specifications and higher quality.

food

This is the trend

•>

Walter M. Lowney Co., Ltd._

24

11

29%

1.00

Mines, Ltd

Ontario

0.15

18

2.75

86

3.2

19

1.15

41%

0.20

14

1.20

high-grade

lumbering and power Interest

MacMillan & Bloedel Ltd."B"
Fully integrated lumber

source

as

the

one

of direct-shipping,

2.8

20

major Canadian

Holding company—newsprint,

ores

in the Superior district.

business;

large exporter

\

In

addition, the Company

Madsen Red Lake Gold Mines
Ltd.

-

6.6

3.05

most

gold producer

Maple Leaf Gardens, Ltd

5.0

b24

and operates Toronto sports
of

ores.

Steep Rock is already established

5.0

3.00

gold producer

Maclaren Power & Paper Co.

Ontario

"tailored"

to

3.4

confection

products

Macassa

for

modern group

now

has Canada's

of integrated plants

ore-handling, treating and grading, designed

name

same

Maple Leaf Milling Co., Ltd—
Grain

drive to step

industry increasingly demands iron
1.4

145

York,

New

Pennsylvania and Ohio

arena

'■

stores in Ontario

Loblaw In 5.

Owns

'

productivity and operating efficiency, the steel

Loblaw Cos. Ltd. "B"
Operates chain of "self-service"
grocery

Iii its present

in

Canada

Eastern

' 'A

' ■[„''[

4.3

1.40

producer

Lewis Bros., Ltd

tj'

exacting requirements

Quebec

Lawson and Jones Ltd. "B"__

f-'

1

&

flour

handling;

operation of bakeries,

14

y

2.7

18%

0.50

milling;

to meet

the

new

buyer requirements and all

,

etc.

15%

14

0.40

10

Massey-Ferguson., Ltd

0.4125

2.6

5%

7.9

in service

during the 1959

season.

Complete line of farm
Implements and machinery

Maxwell Ltd.
washing

Manufactures

dryers,

lawn

mowers

machines,
and food

General

grain

com.

13

2.9

34

fl.00

dealings

McColl-Frontenac Oil Co.
Ltd.

capacity is being steadily increased

in line with market demand.

choppers

JVIcCabe Grain Co., Ltd.,

Annual

shipments for the
to

1

At the present rate

present season are

expected

he double those of last year.

See Texaco Canada Limited
Oil

production,

refining and

distribution

Mclntyre Porcupine

Mines,

Ltd.
Ontario gold

43
producer

<

3.00

..

89%

3.4

'.

STEEP ROCK IRON MINES LIMITED

E"

♦ Quotations represent June 30,

1959 sale prices

prior to that date. Bid and ask quotations
§ Add current Canadian Exchange Rate.
•

are

or
as

the last sale price
of June 30,

1959.

Dividend paid in

U. S. Currency.
t Adjusted for stock dividends, splits, distributions, etc.
bBid.




.

\

fT;jJ

Steep Rock, Ontario

1959.

Ask.

30, 1959.

com¬

gas

3.6

the last sale prlca

1.3

21

or

3.8

15

are

Continued

3.8

20

bl6%

Neon advertising signs

7.5

refiner

Management

4.5
i

National Drug and Chemical
Co. of Canada, Ltd

Ltd.

4.9

43

a22%

3.5

16

1.00

products.

4.0

1.10

0.95

-

department
Quebec.

producer and

International Utilities

5.0

dis¬

b Bid.

Co.
42

oil

American

1.50

b40

Manufactures and distributes rice

as of June
§ Add current Canadian Exchange Rate.
+ Adjusted for stock
dividends, splits, distributions, etc.

S.

Petroleum

Ltd.
South

♦

2.6

115

Op¬

—

mills

paper

the

and

International

f*2.97

14

and

In

Mount

5.0

Bmelters

International Paper Co

Corp.

forms, advertising
products, etc.

Owns

many

Co.,

containers

51

Morgan (Henry & Co.) Ltd-

3.5

Dlesel-electrlc locomotives and
related production

operations at mines and
near
Sudbury,
Ontario

mary

0.50

y

Montreal Locomotive Works,
Ltd.

2.8

co.—Pri¬

operating

Moore

4.8

brewer

apartment

Canada, Ltd.

11

Brewery, Ltd. "B"_

Operates

for share

Holding

33

Quebec

nickel

2.00

& trustee, management
securities & real estate

Business

Monarch Mortgage &
Investments Ltd

Name changed to Wood (John)
Industries Ltd. Shares exchanged

International

tube

Montreal

business

International Metal Industries

•hare

1.60

12
bronze,

Molson's

acceptances; also small

gen'l

for

14

Montreal Trust Co

products

paste, shaving cream
semi-liquid products

37 %

1.60

6.3

financing

house

Eastern

(Robert)

Makes

Corp.,
12

loans

5.0

cigarettes

Acceptance

Ltd.
Purchases

13%

0.675

3.20

and

Modern Containers Ltd. "A"__

48

and

in

metal

ada, Ltd. "Ord."
cigars

supply

Brass,

o

oil enterprises

Imperial Tobacco Co. of Can¬
Tobacco,

0.20

of

"A"

full

comprises

Storage Ltd.

stores

Industries

Mitchell
1.20

6.1

play

&

1959

Executor

(J. S.) & Co., Ltd.__

General

2.5

policies

60

10

papers

en¬

Ltd

subsidiaries

Integrated

Mitchell
58

of

range

bl6%

company

Co.

Canada

Comprehensive

fl.00

13

exploration

1959 ♦

on

Paymts. to
June 30,

—Canadian $ §—

timber products

Holding,
•

1959

tion

June 30,

Based

warehouse in Montreal

Mining Corp. of Canada, Ltd.

4.4

enamels,

Imperial Life Assurance

Divs. Paid

30,

% Yield

Quota-

Operates general and cold storage

Co., Ltd

specialty

June

J

line

___

other

paints, etc.

of

Co.

_■

Paints

Ltd.
Varnishes,

1959

first quality face brick

Newsprint,

Glaze

-

12 Mos. to

Years Cash

Minnesota and Ontario Paper

2.6

Canada

Imperial Flo

14

Brick

Extras for

secutive

Paymts. to
June 30,

1959*

Approx.

Including
No. Con-

Montreal Refrigerating &

in grain and
operates
elevators in Western Canada

Milton

tion

June 30,

Cash Divs.

on

—Canadian $ §—

Deals

3.0

mortgage

30,

1959

Based

Grain

Corp., Ltd

54%

1.65

June

{

Midland & Pacific

1959

Quota-

12 Mos. to

Divs. Paid

/

—Canadian $ §—

Huron & Erie Mortgage Corp.

Extras for

Years Cash

on

Paymts. to
June 30,

1959 ♦

Approx.
°/tr Yield

Including
No. Con-

Cash Divs.

23

—

in the Lake Superior Region.

on

page

24

24

The Commercial and Financial Chronicle...

(1260)

Our Reporter on
JOHN

BY

CHIPPENDALE,

T.

borrowings of

Governments

not

The

demand

for

is

loans

very

JR.

for

force

and
this is keeping the
money market tight, so that the
action oi Government obligations

large

The

the

4%

rate

have

Banks

however, not"

tight money and credit conditions
is likely to prevail during the bal¬
ance of 1959, unless there should
be further set-backs in the equity

System

still

foreseeable

banks

and

the

of

advances

have

This

creases.

Federal

Reserve

spite
of the
beliefs that
mpney
and
credit
could
get
tighter in the next three months,
this period is being regarded by
not a few money market experts
as a
time in which purchases of
Treasury
obligations
could
be
very fruitful. The fall and winter
demand

funds

for

could

making
order

money

few

months

will

signal

or

at

will

banks

liquidate

on

is

the

is the

year

a

money

which

which

is

being

new
wire

watched

to

believe that the

tary authorities will
the

seasonal

will

Noranda

mate business and the

of

new

be

needed

get funds which
to

meet

current

The November refund¬

ing will be the next Government
operation, with the final cash bor¬

no

rowing of the calendar to be done
mone¬

not too

to it

long after this venture has

been cleared away.

takings

legiti¬

confined

money

the

of

Quebec

r

should
a

then

be

new

half

Affiliate of Watt & Watt

be

1960

the

of

the

of

market,
Treasury

the

on

out

money

of

will

market

Montreal Stock

zinc

and

unle^

Ontario

Northern

in

the

the money market by the year-end

Exchange
'

'

though - between now and
tight money market might
tighter.
Higher
near-term

then

a

Investment Dealers' Assn. of Canada

get

Private Wires Between

could

rates will continue to attract buy¬

and

ers

Walt & Watt
Members National
of

70 Pine

Association

Quebec.
Dec.
1957, had 46,711 telephones in

Specialty

buying

provide

oppor¬

have funds

long

investment.

The

-

term

provide investors with yields that
could

have

for

attraction

them.

However, since much better yields
are
available
in
corporate and
tax-exempt obligations, it is not
likely there will be too great
competition for the non-Federal

Port Arthur

WHitehall 4-3262

unless

bonds,

Teletype N. Y. 1-374

make

terms

J

the
the

long
yield

Treasury
necessary

Investment Course

are

30 Broad Street,
members of the
New York Stock Exchange will
present a series of lectures on in¬
vestment for security and income
Hardy & Co.,

New

offices in fifteen

principal Canadian cities
London, England.

net

to execute orders

York

31,

rT-/..V•

Co.
14

The
as

Wood, Gundy & Co., Inc.

bl7%

4.6

57

1.95

50

3.9

11

0.60

12

5.0

89

1.20

28y2

4.2

1.40

23%

5.9

18

0.15

16

4.00

feeds, and cereals

Telephone Co

operates local and long
phone system. At latest
has 22,421 phones in use.

distance

report

Ontario Loan and Debenture
Co.
_____

Accepts

deposits and sells deben¬
invests in first mortgages

tures;

Ontario

Steel

Products

Co.,

Ltd.
Automotive

springs, bumpers and

plastic products

Pacific

Atlantic

Investment
Investment,

type.

Canadian

Co

trust

,

Ltd.___
of

,

Pacific
Co.

Coast

-

4 2

Terminals

Ltd.

Owns

3.60

Management
.

________

b60

6.7

terminal

facilities and cold
storage warehouse at New West¬
minster, B. C. Capacity—1,500,000
tons

cargo

per

year.

,

Page-Hersey Tubes, Ltd

...

34

0.90

29%

Industrial pipe and

3.0

tubing
Pato Consolidated Gold
21

Operates

a
gold dredging
Colombia, S. A.

Penmans
Woolen,

Ltd.
cotton

0.25

>

4.00

6.3

project

53

1.80

33

5.5

18

0.85

29

2.9

26

silk

and

fO.65

16y4

4.0 A

27

0.50

11%

4.4

22

1.50

40%

3.7

23

2.00

633.2

43

8.00

knitted

goods

People's Credit Jewellers
Ltd.

_______

Retailer

of

jewelry and associated

merchandise

Photo

Engravers
typers Ltd.

Photo

commercial

Placer

&

Electro-

engravings,

electrotypes,
photography, etc.

Development, Ltd

Investment—holding

company—

interests

Powell River Co., Ltd.______
Largest producer cf newsprint

on

the West Coast'

Power Corp. of Canada, Ltd._
A utility holding
management and
engineering company
Premier Trust Co
Operates

as

Price

150

5.3

trust company

trustee, etc.

Brothers

,

&

Co., Ltd.__

in

coach

16

2.00

42%

4.7

23

1.00

14%

7.0

45

lines

In

1.60

40

4.0

Quebec

Ontario

■

Quebec Power Co
Operating public utility
♦

Quotations represent June 30, 1959 sale prices
prior to that date. Bid and ask quotations are
§ Add current Canadian Exchange Rate,
t Adjusted for stock

dividends,

b Bid.

the last sale price

or
as

of June

30,

1959.

splits, distributions, etc.

.

Willkie

the

an

lectures, which
informal

are

course

planned

for

adults

BELL, GOO IN LOCK tj COMPANY
INCORPORATED

will be given from 8-9:30 p.m. on

Thursday evenings, starting
1, and again on Feb. 4.

New York

Oct.

64 Wall Street
NEW YORK

Subjects to be discussed will be
Principal Comes First; Survey of
industry; Investment Media; Se¬
curity Analysis: Group Approach;
Security Analysis: Selecting Best
Value;
Survey
of
Different
Groups; Interpretation-^Financial
News-Trading Terms; Mutual
Funds Advisory Services; Personal
Planning.

Wood, Gundy & Company
Members of

Montreal Stock Exchange

Exchange

and

CANADIAN INVESTMENT

Ira Armand Opens

affiliated ivith

Canadian Stock

0.80

20 West 40th
Street, New York City. Samuel C.
Greenfield will be lecturer.

Exchanges in Canada or at
prices in United States funds if desired.

Exchange

•

Memorial Building,

Stock

The Toronto Stock

City,

held

be

to
us

3.0

Newsprint and related products

adjustment.

available to institutions and dealers.
We
have direct private wire connections to

all

3.30

Owns and

Operates

on

0.10

3 9

22

Mills flour,

and

These facilities enable

5.4

use.

Manu.

Provincial Transport Co

and

3.55

49

Ogilvie Flour Mills Co., Ltd..

gold

Fort William

Our investment services in all fields

50%

0.19

36

__________

Okanagan

months

Government market will likewise

Montreal

Street, New York 5, N. Y.

System

few

next

for

Buffalo

Security Dealers, Inc.

Bell

the

tunities for those who
New York

Incorporated

2.00

and

Northwestern

unforeseen

Accordingly, it seems as though
pressure will be coming off

Exchange

Winnipeg Grain Exchange

5.3

producer

system

in

even

Canadian Securities

14y8

14

Telephone Co. Ltd-

centres

raiser for the first

Buying Opportunities Ahead

'*

Stock

0.75

30

Dredging Ltd.

Toronto

3 7

producer

Operates telephone

as

happenings should develop. Refundings will, of course, be taken
care of as they come along.

Street, Toronto

Members

49

25

gold

copper

Northern

1.80

wire

Mines, Ltd

Copper and

to,the sport or interme¬

from

and

These under¬

Treasury

diate term sectors

6 Jordan

'

.^Weaving Co.,

mesh,

Normetal Mining Corp., Ltd.

peak

expenses.

today,

not see

needs

the

demand will be
Sometime
month the Treasury will be

next

is

-

-

—

clotb,
weaving machinery, etc.

the money market.

in the market to

will be made

squeeze

to

1959

—Canadian $§—

.

Ltd.

of

on

June 30,

1959 ♦

Mfg. and distributes office furni¬
ture and supplies

balance

time

secu¬

the other hand there

7

Based

Paymts.

,

continue

Government

that funds

so

there

that

Ltd.,

utility

Treasury Out of Market Soon

higher

tion

1959

11

public

Wire

Makes

needs.

on

rities

Co., Ltd.
Operating

Niagara

of customers'

care

Quota-

June 30,

Newfoundland Light & Pow.

Office

available to customers. To be sure,

be

restric¬

be used to take
credit

most
closely by money market
specialists as this is the period in

but

that the

issues

commercial

highest discount rate since
a

great

Government

will
likely increase in the fu¬
ture, it is to be expected that the

Help from Fed. Expected

is

5%

of

rate

reason

1932

sell

to

so

the

loans is still very sizable and

carefully.

very

in

most

to

Divs. Paid

(mainly shorts and intermediates)
in order to get funds which would

can

at

a
degree of pressure
from the commercial banks

need

a

However, since the demand for

market and capital market
next

which

to customers

Extras for
secutive
12 Mos. to
Years Cash June
30,

be

take

% Yield

No. Con-

nonethe¬

could

Approx.

Including

The

prime

thus

in

watched

funds

obtain

to

This

still

since there would not be

not

facilities

discount

money

;

;

Cash Divs.

us.

Reserve

would

^

~

■-

the

Federal

tight.

less

of the Cen¬

use

the

reins

away

rates.

a

and

undue

be loaned out

the

be

any

Banks'

tral

considerable length of
might present a
real buying opportunity in high
yielding
Government
issues
as
well as corporate and tax-exempt
obligations. Developments in the
peak for

The

banks

are

by

credit

very

indicate

to

System

In

the

the

that the deposit institutions of the

market.

time

the

startling in¬

seems

still ahead of

relief for

/

and

Would not, however, mean
that the policy of active credit re¬
straint had
been
changed, since

the discounts

any

business

Canada: 1959 A Milestone Year
Continued from page 23

Banks

Reserve

member

of

shown

not

Federal

that

shows

of.

from

are

minor

market

force is,
penalty rate and

a

both

Treasury

Some

Central

the latest available reports of
12

the

future.

the

which

in

be

just put in

defensive, even though a
technical rally takes place from
time to time.
A period of very
is

policy is to

monetary

Treasury will

care

help from the powers that
be would not be a surprise as far
as the money market is
concerned,
since the period of heavy credit
demands

tive

the

taken

be

Some

Thursday, September 24,1959

AFFILIATES

SECURITIES

Wood, Gundy & Company
Limited

Head

Office—36

King St. West

Toronto 1, Canada
Branches in the
principal cities of Canada
and in




London, England

.

,

Ira Armand & Co.,; Inc. has been

formed

with

offices

at

45

East

End

Avenue, New York City, to
engage
in a securities business.
.

Officers

are
Ira Deutsch, Presi¬
Murray Rosenthal, Treas¬
urer, and Kenneth Parker, Secre¬
tary.

dent;

BELL, GOUINLOCK & CO.
LIMITED
Established 1920
25 King Street, West

Toronto

LEG GAT,

BELL,

GOUINLOCK

LIMITED

1

Members Montreal Stock
Exchange
Montreal

:

.■

.

Volume 190

Number 5884

...

-

r

'■

: %

■

The Commercial and Financial Chronicle

sales

Canada: 1959 A Milestone Year
Cash Divs.
-

Extras for

sec'iitive 12 Mos. to
Vears Cash June 30,
Divs. Paid

'

1959

% Yield

.

Quota-

Based

BY JOHN

on

tion

Quinte Milk Prod., Ltd
Wide

11

June 30,

(P.

L.)

Sales

1959 ♦

Another important indication of

1959

Wide

of

range

the

Some "A. B. C.'s" of Investment

3.7

Wholesale

of dry

0.80

17

12

0.80

141/2

Operates 919 branches
the

to sales.

ing

series of six published con¬

with

certain

basic

which

tools

can

be

0.50

b34

1.5

2.25

85%

2.6

accounts receivable without

used

24

0.60

121/2

4.8

there

interests

0.65

141/2

4.5

24

1.00

15

6.7

switches,

etc.

Scythes & Co. Ltd.__
Manufactures

cotton

53

new

0.71

301/2

varnishes,

Paints,

Sicks'

ale,

stout

47

4.4

32

fl.40

32

4.4

20

0.25

etc.

enamels,

Breweries Ltd

Beer,

2.05

carbonated

and

beverages

Sigma Mines

(Quebec) Ltd.-

Companies and Banks Which Have Paid Consecutive

tained

Second Table Starting on Page 27

12

1.00

4.2

22

0.60

11%

5.3

14

0.60

35

1.7

10

0.03

products

Silverwood Dairies, Ltd. "B"
Full

b24

other

and

suits

line

of

dairy products

Simpson's Ltd.
Owns

and

operates through sub*,

dept. stores In Canada

Siscoe Mines Ltd
Holding

Co.

various

mines

and

with

interest

located

in

0.80

3.8

the

in

hardware

companies; also
and forgings

Smith

metal

22
for

1.35

29%

4.6

Internal

upon a

41

2.9

the

24

f2.20

3.1

71

any

the

and

given

profit

busi-

Analysis of Income

41

utility;

public

comparison of at least four
First, of course, is
of gross sales.
This
should
show
a
healthy

the

matter

2.50

12

2.125

60%

an

income

investment

rate

of

annual

turnover

account, on a, comparative

Forms Nat Berger

good working

guide

as

A declining ratio of sales to inventory is an indication of slug-

4.1

gish sales, possible stale inventory
accumulation and ensuing losses
to come. Increasing this ratio is
a healthy sign that management is

South¬

Quebec

lines

of

Assoc.

gross

Berger

it is

to the
manner in which management
is
converting inventory into profits.
a

business,

individual

However,
2.50

.

is worthy of further

profit should increase along with increased sales
and, in many lines of business
where the "break-even" point is

for

37

*

Associates, Incor¬
Ratio of Inventory to Sales
porated has been formed with ofAnother helpful ratio is that fices at 477 Madison Avenue, New
Gf inventory to sales.
Although York City to engage in a secuthis does not accurately indicate rities business,

The "Gross Profit" margin varies

station*

Ltd.

curve,

investigation from

growth.

dally newspaper*
Canada;
operates
three
seven

Operating

soundness

of

five years.

to

manufacture* In

Southern Canada Power Co.,

ern

readers who are interested, they
might observe the ratio of net
profit to sales before taxes of the

Accounts

Co., Ltd..

across

radio

are

account

All ratio studies should be based

1.20

denotes good

_

standpoint.

figure
Publishes

income

financial

Canada

Southam

are

an

power

15
paper

so

.

Nat

(Howard) Paper Mills
and

in

stamping*

Ltd.
Pulp

and if

conclusion, the author wishes
*° emphasize again that this all
too brief and inconclusive series
°* articles has been written more
a? a gui^e to salesmen and hidividual investors, so that they
generally successful concerns, and
have some preparation for
use these as a basis for his study further study of this rewarding
of any subect company. For those analysis of the balance sheet and

ness.

(N.) Co., Ltd

Pole-line

years

internal controls, collection meth0(*s> sales policies, and alert management.

The final net profit before Federal taxes and after, should also
show a healthy increase as sales
move upward.
The ratio of net
to sales (before taxes) also varies
for individual lines of business
from 1%% to as much as 15%.
The analyst can readily observe
the ratios existing in the most

given

profitability

Ontario

Quebec.

Slater

the

BetoreTo- investigated.

oasis.
After jmu have made a study
(a) Charges made to surplus ac- five largest companies in such of the internal financial soundcount rather than to expenses, and fields as retailing, mining, steel, ness of any investment the job is
(b) Overstating or understating aviation,
drugs, chemicals, etc., only half done—sound investment
depreciation and depletion charges during
the
past
five
years, decisions
combine selection and
and manipulating inventory fig- Any
company
that consistently timing. The price you pay for
ures.
With this watchword, be on shows an inability to carry down any investment is also a deteryour guard, read the figures and
to net after taxes a sufficient per- mining factor as to whether or
study the balance sheets for sig- centage of gross profit should be not it should be acquired.
This
nificant changes, both functions held under suspicion. A growing important
consideration should
are of importance in determining
firm, with a healthy sales and never be overlooked.

Dividends from 5 to 10 Years Appears in the

swim

firm's

company's actual results

a

any

methods that

rayon

year

be constantly more favorable over

declining gross profit margin, is a
straw in the wind and should be

in-

were

business

period. (2) Two
most widely used
in "confusing the issue" and distorting the actual figures con-

over

Lingerie,

a

stationary,
the
gross
margin
should
increase

profit

often of small value in deter-

mining

Quebec gold producer

SilknitLtd.

losses

businlss

are

5.6

4.50

collections

relatively

where

limited space

utility

18

tell

ing into this broad subject in the
of this column, there
are several pertinent observations
of
which
every
analyst is well
aware.
(1) Consolidated income
accounts that are not sufficiently
detailed
as
to
pertinent items
necessary for a clear cut analysis

2.3

Sherwin-Williams Co. of

Canada, Ltd. ;

during

natural

Shawinigan Water and Power
Co.,

how

or

curred'

waste, cotton, wipers, etc.

Quebec electric

sheets

balance

earned,

wool

and

that

down,

customers

chased. A healthy sales curve,
accompanied by a stationary or
the money came from and where proportionately more than sales, more or less modest increase in
it went. The income account ex- A rapidly increasing sales curve, accounts receivable, is a very deplains mathematically how it was accompanied by a stationary or sirable situation. This ratio should
The

23

evidence

and that a
may be
depre¬
ciating in the quality of their
payments for merchandise pur-

serve more as a "Do It
Yourself Kit"
might become the foundation for further study.—EDITOR.

The Income Account

is

slowing

are

world

motors,

a cor¬

firm's

that

Holding company—machine tool

Electric meters,

increas¬

be all inclusive but to

10

91

Sangamo Co., Ltd

are

slowly then receivables,

responding increase in sales, then

throughout

Russell Industries Ltd

Where sales

more

when the year-to-year figures
show a comparative increase in
or

functionally in the study of the relative attractiveness of
various securities, and the balance sheet and income account
items pertinent thereto.
These articles are not intended to

High-grade bond writing paper &
related product*

Royal Bank of Canada

investor

the

goods & variety store

Paper Co., Ltd. "B"

a

efficiency with which a busi¬
is collecting its current re¬

ceivables is the ratio of receivables

secutively in the Chronicle covering this most important
subject. The primary purpose is to furnish the salesman and

5.5

merchandis¬

lines

Rolland

ness

Analysis

ARTICLE VI

-

This is the final article in

4.7

bolta

and

Co., Ltd.__

retail

and

Vv*
18

screws

Robinson Little &
ing

b4.05

Manufac¬

turing Co., Ltd

buying

Ratio of Accounts Receivable to

DUTTON

June 30,

variety of milk product*

Robertson

its

alert and aggressive.

are

Paymts. to

—Canadian $ §—

0.15

conscious^, and

policies

Approx.

Including

;„

No. Con-

Securities Salesman's Corner

C-R

Syndicate

The C-R Syndicate No. 5 has
been formed with offices at 55
Broadway, New York City, to
engage in a securities business,
Partners are Irving Zindler, Alexander Rapport, and William Lipman.

Sovereign Life Assurance Co.
of Canada
Life

1.2

b211

endowment Insurance

and

Standard Paving & Materials
Ltd.

-

General

♦

57%

There IS

3.7

paving contractor

Quotations represent June 30, 1959 sale prices or the last sale price
prior to that date. Bid ar d ask quotations are as of June 30, 1959.

Cn,
;;>

5 Add current Canadian Exchange Rate,
t Adjusted for stock dividends,
b Bid.

splits, distributions, etc.

Continued

on

page

26

something

/

new

''

.

V'- * VO. \ Vt •/?/

Cochran,Murray & Co.
LIMITED

No company

Member

stands still—it forges ahead or it drops back.

Investment Dealers' Association of Canada

The Sun Life's consistent

•

Cochran,Murray G Hay
LIMITED

continues to

88-year record of growth is evidence that

forge ahead. Contributing to this progress is its

adopt worthwhile

new

it

readiness to

ideas in all phases of its operations. Its new, easy-to-

Member of the

Toronto Stock

Exchange

Dominion Bank Bldfl., Toronto,

Telephone IM. 3-9161

read

policy contracts and its recent additions to an already

of life insurance and savings

plans

are

just two of

many

wide range

examples.

Haaittoa




SUN LIFE ASSURANCE COMPANY OF
♦

«.

-

!•

♦

Coast to Coast in North America

CANADA

26

I

The Commercial and Financial Chronicle

(1262)

popular

See It
We

As

and

steps

needful

to

there

it

encourag¬

last ing

have been

would

voters

indications that there is
January if the recession had perhaps a growing realization
in

still

fact

There

be

can

with

been
no

us.

question, of

deal of
the Democratic oratory dur¬
ing the 1958 campaign—and
that

course,

a

before

even

theme

the

great

that—had

its

as

and

recession

the

alleged need of applying New
Deal remedies in large doses
and without delay. Nor can
there be any doubt that this

attitude and this
trend of thought car¬

general
broad

1959.

ried

over

but

inevitable

should
that

in

be

the

the

It

such

that
case.

all

was

fact

The

recession

proved .to
placed the
Democratic party in a very
awkward
position of which
be

the

definitely

over,

President

took

ad¬

due

vantage.

interesting
enough in its own right, but
we
should
feel
very
much
more

heartened if there

were

good evidence of an abandon¬
ment by the Administration,
the Republican
party, or any
other influential

able

fate,

was

all

off

throw

to

number of official quar¬

a

jority, suggests that the

un¬

secutive

or

finan¬

to

d i

some

We, of

course,

neo-Keynesians.
have

no way

knowing what the reactions
the

President, his party
general public would
been to many

of the

substantial

in

the

of Democratic party, and these
of

same

the have

or

the

elements

that

we

but

direction,

from

greater

from

the

em¬
un-

General

of the year, and then the fears
of the still closer election will

Canada

be

General Fund

seen

and

parties. It remains to be
whether
his

the

incorporated

long-term growth possibili¬

ties/through: (1) investments in the
by

resources

of diversi¬

means

holdings of Canadian stocks

and (2) rein¬

vesting all net earnings at low tax cost.

party

may

be obtained from

authorized investment dealers

present

Devonshire
Boston

NEW YORK
6i Broadway




9,

Street

Ltd. "Vot. Com."
Markets

South LaSalle Street

80y2

2.4

2.00

49

4.1

20

1.00

15

6.7
<

.

'

"

34

products

30

0.06
1.00

b3.25

2.0

1.14

5.3

in

Sylvanite Gold Mines, Ltd.__
Ontario

•

0.065

23

new

petroleum
Quebec

and

gold producer

Tamblyn

(G.)

Ltd

27V2

3.6

20

2.5

Operates chain of 103 drug stores

Taylor,

Pearson

Carson

and

(Canada) Ltd.
tive

'

13

co.—Interest

and

household

In

0.50

34

Holding

0.10

16

1.60

73 Vz

2.2

0.25

7%

3.4

automo-

appliances

Teck-Hughes Gold Mines,
Ltd.
Ontario

Texaco
Oil
.

gold

2.14

4.7

producer

Canada

Limited

production,

and

refining

distribution.

Third

Canadian

vestment
ment

General

Trust

Investment

trust

In¬

Ltd

of

the

31
manage¬

type

:

Toronto-Dominion

Bank

>

in

Elevators,

21

1.25

46 y2

2.7

76

1.625

53

3.1

14

1.00

26

3.8

2.40

35^2

6.8

11

f0.32

17%

1.8

0.50

10

5.0

35

0.50

bl2%

3.9

19

0.90

22

4.1

14

0.70

11%

6.1

20

0.025
0.50

3.00

20

0.65

in

York

and

London, Eng.

Toronto

501

2.8

13

New

60

11

branches,
in

1.70

35

503
one

102

13

Operates
Canada,
one

Ltd

Grain

elevators,
feed
manufac¬
turing and vegetable oils

Toronto General Trusts Corp.
General

fiduciary business

Toronto Iron
Steel

plate

Works, Ltd.

products

and

special

metals

Traders

Finance

Corp.,

Ltd.

"B"
Purchases

Installment

sales

ob¬

ligations

Union Gas Co. of
Production,

United

transmission
natural

gas

Corp.,

"A"±

In

bec

of

Amusement

Ltd.,

Operates 34
tres

Canada, Ltd.

storage,

distribution

and

motion

Montreal

picture thea¬

and

other

Que¬

cities

\

United Canadian Shares Ltd.
Holding

United
An

co.—Insurance

Interests

Corporations Ltd. "B"

investment trust

agement

of

Steel

v

the man¬

type

United Steel Corp. Ltd
plate and welded

steel

products

Upper Canada Mines Ltd._
Ontario

Ventures Ltd.
•

Holding,

and

"•

27V4

1.8

promotion,
development co.

Ltd.

Biscuits

and

b80

3.8

confectionery

Waite Amulet
•

2.0

investment,

exploration

Viau

1.22

gold producer

Mines, Ltd

6.25

10.4

Quebec copper-zinc producer
♦ Quotations
represent June 30, 1959 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June 30, 1959.
§ Add current Canadian Exchange "Rate,

t Adjusted

for stock dividends,

splits, distributions, etc.

b Bid.

AXE

SECURITIES CORPORATION
AXE-HOUGHTON FUND A, INC.

LOS

ANGELES

West Seventh Street

AXE-HOUGHTON FUND B, INC.

majority will be

as

amenable. We wish it

not too much to

pressure

would
dent

were

of politics next year

drive

and

both

the

Presi¬

Congress to really
economizing.

PORTLAND, Oreg.
Richard
V.

filiated

Card

with

was

Smither

L.

Sundholm

American

&

E.

Bank

I.

—

now

Hagen

&

Building.

STOCK FUND, INC.

AXE SCIENCE & ELECTRONICS CORPORATION

AXE-TEMPLETON GROWTH FUND OF CANADA, LTD.

400 Benedict Ave., Tarrytown, N. Y.

Telephones: MEdford 1-2272

and
af¬

Co.,
Mr.

MEdford 1-4612

Teletype: Tarrytown, N. Y. 1708

Owen J.

Kinney
are

(0

Head Office & Order Room:

previously with Zilka,
Co.

^ AXE-HOUGHTON

hope that the

(Special to The Financial Chronicle)

Eric

no

H

also whether the

Democratic

Card,

Mass.

CHICAGO
lao

1.90

44

extreme friction lubricants
related products
•

atti¬

Three Join E. I. Hagen

or

VANCE, SANDERS & COMPANY, INC.
Ill

.

steel

of

-v

will

and

can

their

constructive

Prospectus

branches

President

agance, and

fied

all

tude about waste and extrav¬

LIMITED

and industries of Canada

3.2

wares

traditionally great. Next
will be a testing time for

continue

in Canada, seeking

37

23

small

year

both

A mutual investment
company

retail

and

fiduciary business

Ontario

footing. This is a fact of key
importance since, as the Presi¬

It will be back after the turn

1.20

Canada.

Makes
and

duly grateful,

allotted time of

3.5

Supertest Petroleum Corp.,

-

is but half gone.

1959

17

wave

Sterling Trusts Corp

1

dent says, the
this Congress

1959 ♦

0.60

25

short

Stuart (D. A.) Oil Co., Ltd.__

,

barrassment

in

Engaged In
production

a

must be

1959

on

Paymts. to
June 30,

and

owns

and

Steel Co. of Canada, Ltd

for

and

June 30,

business

great deal more is re¬
elements in Congress
quired if we are to get our
saved the Reserve au¬ economy on a safe and sound

have thorities

measures

right

radio

Wholesale

Administration
political eleupon
a
pointments which he regards,
: ment in the .population of the limit
upon Federal expendi¬
fallacious notion that depres¬ tures, as well as a number of and rightly so, of importance.
But let no one suppose that
sion
(or recessions, if that proposals
which
have
not
even
the
term is preferred)
proposals of the
ought to be been enacted into law, are
combatted or can be cured or cases in point. Of course, some President have done more
than scratch the surface of the
prevented by such therapeu¬ of the actual achievements
needs of the day.
tics as is advocated
They, or
by the would not have been possible
New Deal
many of them,, have been in
and
the
for
others but
the
cooperation of

among the

subsidiaries

operates
stations

its

s a p

tion

30,

Based

19

Stedman Brothers Ltd.__

act

accept

Radio Ltd._

Through
«

,

to

Quota-

—Canadian $ §—

it very difficult for members
of Congress, or some of them,

had

the

June

Divs. Paid

Standard

ancient

to

% Yield

Extras for
12 Mos. to

Years Cash

rationally about the
rate of interest paid on gov¬
cial
officials
for which
the
ernment obligations or about
President is responsible.
any action which the mone¬
In
general the so-called
fight on inflation, both by the tary authorities may take
which tends to make funds
Federal Reserve System and
cost more. The President has
the insistence on the part of

the White House

Approx.

Including
No. Con-

not

of

t

Cash Divs.

prejudices the fact is
to
be regarded as
ters that the time to combat hardly
strange, however regrettable
a
major recession or depres¬
it
may
be. We should, of
sion is when the excesses are
course, be much better off had
building up, or threaten to the interest
ceiling on longer
build-up, which make later
term
Treasury obligations
trouble
all
but
inevitable.
been removed, and certainly
That is to say, there is evi¬
nothing but condemnation can
dence of some understanding
be
accorded
the
degree in
that the time to combat the
which Congress continued the
next recession or depression is
old, old practice of adopting
now.
A number of the pro¬
projects which do not have
posals of the Administration
a
startling effect upon the
seem
to point in that direc¬
budget this year, but which
tion, and the fact that a num¬
make any reduction in out¬
ber
of
them
have
been
lays in the years to come so
adopted, perhaps with some
much the more difficult.
reluctance by Congress with
There is a long standing polit¬
the help of some of the ele¬
ical prejudice which renders
ments of the Democratic ma¬
in

derstanding is not confined to

All this is

turn of economic

'I

-

Continued from page 25

points those
Congress have

control

Thursday, September 24, 1953

Canada: 1959 A Milestone Year

and

other

at

who

Here

he now con¬
taken a constructive attitude
had
which are calculated to demns
unemployment
still been large and on the in¬ toward proposals which were
achieve such a purpose.
crease
last January, but we designed to bring the opera¬
What Would
tions of the Federal Govern¬
are
very much
afraid that
ment more into line with the
They Have Done?
broadly similar tactics would
Yet we can not help won¬ have found favor at the White needful.
dering what the attitude of House and quite possibly
What Might Have Been
the President, his party, and, among large sections of the
If a Democratic Congress,
yes, that of at least the more rank and file.
caught as this one was by the
articulate elements among the
There are certain
Continued from first page

proposals

felt

has

it

take.

...

Branch Offices:
730 Fifth Ave., N.Y.19

430 N. Camden Drive

2808 Russ Building

Beverly Hills, Gal.

San Francisco, Cal.

BRadshaw 2-8258

EXbrook 7-0715

COlumbus 5-0250
15 William St., N.Y.5
HAnover 2-6962

Volume 190

Number 5884

The Commercial and Financial Chronicle

...

Canada: 1959 A Milestone Year
Cash Divs.

% Yield

N

No. Consecutive

Bankers Find No

Quota-

Extras for
12 IVlos. to

Years Cash

June

Divs. Paid

Based

tion

30,

June 30,

on

Payrats. to
June 30,

1959♦

1959

That

1959

&

tries

(Hiram)-Gooderham

Worts,

Ltd

P24

35V8

.1.40

Ltd

Products
Canada

0.80

19

13%

5.8

23

plywood.

sells

and

32V2

3.7

12

veneer

4.0

0.80

27

:

of

range

34

2.4

products

Weston

(George)

Ltd. "B"__

Pine
•

biscuits, bread,
fectionery, etc.

cakes,

30

and

paper

Wood,

distributes

Co.

Subs.

water

equipment,

Zeller's

4.0

Can.

heaters,

N

U.

&

27%

c

e

36%

3.3

w'lth-

Bankers

Jesse

from

available

Commis¬

handled

committee

the

and

Have Been Paid From

bnnkipf

Growth

without

Alvin
come

&

Co

L.

for

problems of economic growth
avoidance of inflation.
The
charts and selection of the data
designed primarily to serve
of reference in con¬

were
as

Approx.
% Yield

Including
Extras for

No. Consecutive

12 Mos. to

Years Cash

Divs. Paid

June

30,
1959

Quotation

June

30,

Based

on

Paymts. to
June 30,

1959 ♦

1959

—Canadian $ §—

Acadia Atlantic Sugar
Refineries Ltd.
Refines

duces
ages

raw

50

or

0.525

-

&

cane

sugar

Infla-

4.8

11

grades <fe pack¬

more

Mines

syenite

processes

for

in

use

0.68

u

"Another

WaU street

and

air.

steel

♦

and

1.40

has

be¬

New

York

fittings for soil, water
boilers,
radiators

engaging

in

a

Corpora¬
securities

business from offices at 860 West

181st Street, New York City.

of Alvin Wachsman &

business from offices at 366 Fifth

Co., which

has been dissolved.

Capital Growth Distrib.
Capital
is

Growth

conducting

Distributors,
a

securities

Avenue, New York City.

@
Annett &

Company Limited
Member

The Investment Dealers' Association of Canada

Security Underwriters

Stock and Bond Dealers

Annett Partners Limited
Member

Toronto Stock

European countries
United States. This ac¬
for the omission of data

Exchange

finances

government

to

unit labor

to

and pro¬

costs

220

Telephone

Bay Street

EMpire 3-7361

Toronto, Canada

and
and

Quotations represent June 30, 1959 sale prices or the last sale price
prior to that date. Bid and ask quotations are as of June 30, 1959.

S Add current Canadian Exchange Rate.

Continued

limitations and

incompleteness of the data, these
charts obviously do not provide a
firm basis for drawing many safe
conclusions.
But they do reveal

scaffolding.

on page

28

some

interesting comparisons and

relationships that may be helpful
in
analyzing
current
economic
trends.

thing, there appears
significant correlation,
either one way or the other, be¬
tween the degree of inflationary
"For

to

Canadian Securities
EXECUTED

ON

be

one

no

pressure

Brokers In

ORDERS

is

Inc.

consideration," he

"Because of the

3.3

42

distributes pipe

Also

Corp.

Investors

ductivity.

ceramic, trade, in Ontario

Anthes-Imperial Co. Ltd
Manufactures

All-State

the

and

nepheline
glass
and

the year.

City, where he will handle secu¬
rity and commodity accounts. Mr.
Wachsman was formerly head of
the cotton futures brokerage firm

continues, "was the desire to pre¬
sent only data that are available
on a reasonably comparable basis

relating

5.9

of their of
meanors

sidering these problems, Chairman
Sienkiewicz points out.

counts
0.04

Nepheline Ltd

&

source

a

and

of sugar

American

m t>usi-

■

f S '"1"^ anc, fm,ance
?ee
".f* interpretation
mistakes
and
misdeAll State Inv.

associated with Dean Witter

for the major

pro¬

Major government officials and

?etomw?Tk?7

on

arid

Cash Divs.

S ITS £
^^association before

tion

Wachsman

the

10 Years
5

The
event
usually is heavily
oversubscribed, Mr. Guastella said

should

Committee

attention centered particularly on

to

President of

econ¬

prepared for participants in
the Sixth Annual Monetary Con¬
ference held under sponsorship of
the ABA in London this past sum¬
mer.
While the agenda of
the
Conference included a wide range
of economic and financial topics,

CASH

Guastella

14 in number

The charts,

omists.

DIVIDENDS

Association, will be

was

Arthur R

by

were

CONSECUTIVE

and the rate of economic

The Rio Tinto

growth in various countries dur¬
ing 1952-58.
For example, Ger¬
many had very little inflation and
a
very
high rate of economic

growth. France had a rapid rate
of growth but also strong infla¬
tion.
The United Kingdom with
a

THE

high degree of inflationary pres¬
had a slow rate of growth.
United States with relatively

Group

in Canada
ALCOM

MILLIKEN

URANIUM MINES LIMITED

LAKE URANIUM MINES LIMITED

sure

MONTREAL

STOCK

EXCHANGE

The

CANADIAN

STOCK

EXCHANGE

little

inflationary

had

slow rate of growth."

a

Other members
tee

W. D. Latimer Inc.
STOCK

EXCHANGE
CALGARY

607

St. James

STOCK

CANADIAN

STOCK

EXCHANGE

EXCHANGE

Street W., Montreal, P. Q.

Telephone University 6-8763




OCEANIC IRON ORE OF CANADA LIMITED

of the commit¬

Gabriel

PRONTO URANIUM

Hauge,

Chairman of the Finance Commit¬

RIO TINTO CANADIAN

MINES LIMITED

EXPLORATION LIMITED

private wires to Toronto, Ont.

Arthur F.

Maxwel,

Presi¬

dent of the First National Bank of

Biddeford, Maine, and of the Biddeford Savings Bank; William A.

Chairman, First Na¬
tional Bank in St. Louis; William

McDonnell,
H.

Direct

are

URANIUM MINES LIMITED

also

serving with Chairman Sien¬

kiewicz

York;
MONTREAL

pressure

NORTHSPAN

tee, Manufacturers Trust Co., New

MEMBERS

and

Follies

20^ the °grJ^baRroom^the
artel Astor ft
annoJrnced ^

With Dean Witter Co.

bankers

to

request,

On Which

Writers'

Alvin Wachsman Now

is Presi¬
dent of the Central-Penn National
Bank of Philadelphia, made this
assertion in a letter foreword to
a
booklet of charts showing eco¬
nomic trends in Western Europe
and the United States, which is

Common Stocks

business

Financial

Sienkiewicz

Sienkiewicz, who

Mr.

(Listed and Unlisted)

the
an¬

show, written and
produced by the New York Finan¬

tion, American Bankers Association, 12 East 36 Street, New York
16, New York.

price that must be paid for economic progress," he added

CANADIAN

of

and

18th

The

HartldT'chladl^

directed to?

Economic

place the burden of proof on those
who contend that inflation is a

II

be

for thp

be

the

"They at least

TABLE

and

Policy

will

Manager, and

Association.

Canada

Economic

Staff work

Inflation

c a n

1.20

19

New York;

bellow

the Ameri-

of

etc.

"The

1959."

cial

sion.

Chairof

t

o u

Ltd.

Co.,

caricature

of

compatible.

nk i e-

z,

Growth

5.8

S.

trade

Operates chain of specialty store#
across

are

will

growl at the

industry,

Conclusion drawn is that

ABA

Economic
1.60

nual

applied to

W. Tapp, Chairman of the Board,

Committee for

Ltd.

oil

i

man

products.

Industries

17

mfr.

12%

0.50

correlation

bulls
will

cr/Ynie

A. S i
w

"A"
Holding

1.5
;

22

and

paper

John,

39%

0.60

con-

Wilson, J. C., Ltd
Manufactures

of

Trust

i c e sta¬
bility and vig¬
orous
growth
are incompat¬
ible," accord¬
ing to Casimir

specialty

paper

tack

Reierson, Vice-President, Bankers

of p r

St

Paper Co., Ltd.

"B"

bears

"£ntdZ°„Sr°rt t0 the the°ry los
?ank4 of America N.T. & cf the
BJL,
that the gcfals
Angeles, and Chairman
Hot

17 %

0.70

Plant In Vancouver

Westminster
Wide

1.20

provinces

Western Plywood Co. Ltd.
"B"
Manufactures

showing economic trends
in leading
countries of Western
Europe and
the United
States

Breweries,

four western

same

Data

Ltd.
Serves

not, and that the

price stability and vigorous growth

Manufactures sheet metal

Western

did

countries not afflicted by price inflation.

Holding company—extensive
liquor interests

Westeel

Present 1959 Follies
The

experiencing price inflation maintained economic growth and

others

4.0

27

N. Y. Fin. Writers to

Study of principal Free World countries prepared for international
bankers meeting held in London this past summer shows some coun¬

—Canadian $ §—

Walker

Support for Theory
Rising Prices Spur Growth

Approx.

Including

(1263)

Neal,

Wachovia

Senior
Bank

Winston-Salim,

Vice-President,
and

N.

Trust

C.;

Roy

Co.,

L.

THE RIO TINTO MINING
335

COMPANY OF CANADA LIMITED

Boy Street, Toronto,

Canada

28

The Commercial and Financial
Chronicle....

(1264)

the

of the region. In some
this interest is represented
by participation in projects initi¬

The Rich Natural Resources

ores

cases,
ated

Of Canada's Ungava Region
Continued from first page

mining
the

and

—

in

projects

power

iron

will

mines

be

developed

as

as

thick

a

Labrador

in this

been known for

a

area

known
then

until

not

last five

decade

a

border

dor

and,
from
there,
mountain
range
to
Wabush Lake,
continuing west¬
erly to Mount Wright and Lake

fully.

ore

had

currences

son's

earlier, if they could

a

little

little

a

more

original estimates of
tonnage in the area were,
they must now be revised sharply
upward, probably by as much as

twice

iron

as

much

grade in

rador

the

Trough

traditional

of

ore

the

of

source

a

but

on

go
ahead with the
building of actual mines on many

of these claims have of course

re¬

ulative

character
with

ciated

formerly
of

some

these

and

there is in this

ore

of

what

grade

has

nadian

steel

tonnage, have a di¬
rect interest in mining properties
in, and contiguous to the trough
assures, of course, a market for

Lab¬

Mesabi,

great deal

Packs

Bethlehem

the

of

est

area

Ltd

Steel

steel

Corp.

less

in the

a little
when it
portion of Republic

a

up

the

on

than

picked

producers

the entry of Bethlehem

was

NORANDA

TIMMINS

a

cently

participate with Iron
separate venture un¬

to

ing Co. to develop the extensive
low grade ore bodies on conces¬
sions

Wabush

near

Iron

Ore

under

with Labrador

Lake held

tion

Co.

Iron

Private wire

Lake

Carol

from

and

operation of a
from the

railway

Besides Bethlehem

and

Repub¬

ore

Youngstown
Sheet
8c
M. A. Hanna Co.; Armco
Corp.; Wheeling Steel; Na¬

Steel, and Hanna Coal &
Ore Corp. Iron Ore is
developing

t h

concessions

e

of

Hollinger
Exploration Co. in

Shore

Mather
iron

&

ore

Co.,

the

big

company,

Mining

subsidiary of
Corp., is de¬
iron ore deposits

large

also

the

gaged

options

the

on

in

the

the

EQUITABLE SECURITIES CANADA LIMITED
Member of The Investment Dealers'
Association of Canada

EQUITABLE BROKERS LIMITED

ates

goes

•

HALIFAX

Subsidiary: Equisec Canada Inc.

Associated Company:
Kleinivort, Sons & Co., Ltd., London, Eng.




Goldman, Sachs & Co., New

0.60

12%

48
W,

mfg.

V:

"■.'■".re¬

8

whose

main

companies

0.03
•

•

b0.50

■

6.0

.

en¬

7

'

5 3

6

0.25

3 90

6 4

1.00

36

6

subs,

in

9y2

8

through

bakeries

0 50

0.50

26

5

Co.

Quebeo

o.24

oper¬

Ontario

&

v

Consolidated Discovery
Y'knife Mines Ltd
Gold
N.

...

producer, Yeilowknife Dist.,

W.

T.

Dominion

Scottish

Invest¬

ments Ltd.
Investment

trust

of

2.8

management

type

DuPont of Canada Ltd
Manufactures

fibres,

Edmonton
Co.

chemicals,

commercial

Concrete

-

1 9

textile

explosives,

etc.

Block

Ltd.

2.95

8.1

Manufactures concrete blocks and

lightweight
is

20,000

aggregate.
8-in.

Capacity

blocks

per

day.

Empire Life Insurance Co.__
Operates

General

as

life

9

0.90

9

0.30

7

0.30

7

0.40

9

Insurance

Bakeries

0.24

67

Ltd

8%

Giant Yeilowknife Gold
Mines Ltd.
N.

producer

W.

Yeilowknife

«

3.4

8.25

of
Canada's
largest inde¬
pendent bakery operations. Makes
bread, cakes, biscuits and con¬
fectionery

Gold

1.3

co.

One

3.3

area,

T.

Hughes-Owens Co. Ltd. "B"

bl4

2.9

Mfg. 8c retailer of drafting equip,
scientific Instruments it artists'
supplies

Interior Breweries Ltd

per

2

breweries

capacity

♦

of

with

70,000

com-

4.50

5.3

y

barrels

year.

Quotations represent June 30, 1959 sale
prices
prior to that date. Bid and ask quotations are

or

as

§ Add current Canadian
Exchange Rate,
a

the last sale price
of June 30, 1959.

Ask.

b Bid.

t No

-,v

■

exchange trading.

is

Cleve¬

is

inter¬

A reliable

Albanel

Lac

source

of

information is the

of

work

done

The

on

too,

has

extend

now

the

requirement of

Na¬

any

already

way surveys

Investor

..

.

its

ahead.

Operating Licenses

properties

of

LIMITED

Atlantic

Iron

Oceanic Iron Co. held un¬
der concessions from the
Province
of
Quebec. Just this
yearj

the

Department of Mines at
City granted operating
Continued

on

MEMBERS? THE TORONTO

are

Ore and

Quebec

WILLS, BICKLE & COMPANY

Iron Ore Co.

operating its big mines,

Quebec
York

basic

drill

Canadian

Schefferville, where
is

KITCHENER

7

2.8

Co¬

It

the

Railway,
to

Grants

Yongre Street, Toronto, Canada

wire with

ore

From 300 to 500 miles north of

•

in

are

19

in
trackage to
that area
though, naturally, there
is no intent to build
any railway
there until that
project definitely

Head Office

Direct private

in

completed right of

order

Member of The Toronto Stock
Exchange

U. S.

iron

which

process

cores.

tional

HAMILTON

5.40

4.3

industrial

Ltd

company

Holding

taking out a
ore for pilot
plant treatment in order to check
hole

•

0.15

The latest word from this

laboratory

WINDSOR

companies

Canada Ltd.

project is that Cleveland Cliffs is
in

8

20

Investment

in searching for oil.

development of iron

deposits

section.

0.35

±

large bulk sample of

Corporate Bonds and Shares

•

also

Co.,

Quebec

owned by
Exploration.

Cliffs

ested

9

±

Consolidated Bakeries of

general region, and
side of the

Cleveland Cliffs Iron

&

0.10

manufac¬

Quebec

there, Normanville Min¬
ing Co., representing the interests
of Jones &
Laughlin Steel Corp.

land

of

paints,

Oils

Holding
holdings

Operates

border

of

type

operates

Command

v

same

8

.

air-conditioning and

flavors,

bined

on

5.6

.'.vf.»y-

Farnham, Ont.

Steel

area.

ai8

rubber goods, moulded
drug sun¬
dries, elevator gears 6c
machinery.
plants in Montreal, Toronto
and

Quebec Car-

Co.,

States

i.oo

holding company.

in

&

food

com¬

are

ore

MONTREAL

2.5

5

"B"

Owns

Labrador

&

lic, other big steel and

property

60

34

bl60

4.00

Combined Enterprises Ltd

spur

Shore

lands.

balt

Provincial and Municipal Debentures

107/a

6

Silver producer, also has consid¬
erable Investment
portfolio

Railway track in to their adjacent

veloping

Treasury Bills

0375

Castle Trethewey Mines Ltd.

Railway, to take over

Quebec North

holds

Government of Canada Bonds

5.6

and

Investment Trust Ltd

Ca¬

somewhat to the west of the Lake

Dealers

17%

trust

—

Distributors

Leaf"

8

Management

a

construction
42-mile

and

Underwriters

i.oo

Canadian International

prop¬

and Wabush Iron
joint subsidiary,

formed

Carol Lake

Lake

lease

under

Mining

have

United

connecting Branch Offices, New York, and other leading
exchanges

5

Columbia,

Manitoba. Brand

refrigeration field from
turing to installations.

Mining & Explora¬

The

Co.

tier

VAL D'OR

"■

gold producer

Engaged

by

arrangement

an

Steel Co. of Canada.

ELLIOT LAKE

and

"Clover

Investment

of Carol Lake Min¬

name

Wabush

ROUYN

British

_

Ltd.

a

name
of
Wabush
Iron,
are
Youngstown Sheet & Tube; Interlake Iron; Mather Iron
Co., and

CHIBOUGAMAU

3.8

' ■

■

Canadian Ice Machine Co.
Ltd.

Canada and the decision made by
Bethlehem
somewhat
more
re¬

In the

KIRKLAND LAKE

39 y2

Operates Montreal Forum

ago

in
the development of the big Jave¬
lin deposit at Wabush
Lake, re¬
ported the largest single iron ore
deposit in the world, under the

HAMILTON

1.50

Canadian General Securities

scene

year

Steel's interest in Iron Ore Co. of

Pickands

BRANCH OFFICES

in

are

Ontario

Cleveland

King Street West, Toronto—EMpire 6-9971

5

Canadian Arena Co

Quebec, as well as of those of
Labrading Mining in Labrador.
Companies participating with

11

plants

names

Steel Interested

Indicative of the growing inter¬

North

Winnipeg Grain Exchange

-

1959

and

salmon, clams, oysters, etc.

with

tional

Canadian Stock Exchange

1959*

Campbell Red Lake Mines

Steel

Calgary Stock Exchange

June 30,

"Rupert Brand".

Co.

Toronto Stock Exchange

on

Paymts. to

June 30,

and

supplies.

Nova Scotia

ities.

Tube;

Members:

Ltd
importers,

confectioners'

of

British Columbia Packers
Ltd "B"

panies with interests in Iron Ore

Industrial, Mining and Oil Securities

Company

Manufactures,
wholesalers

activ¬

Based

—Canadian $ §—

bakers'

asso¬

tion

June 30,
1959

^

Bowes

moved much if not all of the spec¬

Quota-

12 Mos. to

Divs. Paid

nadian Javelin and already Carol

grade.

The fact that steel companies,
representing 90% of the U. S. steel
ingot-producing capacity and a
substantial
portion of
the
Ca¬

30-38%

secutive

% Yield

Extras for

Years Cash

Recent

zones.

Approx.

Including

erty adjoins that held by Wabush

region

nearly

so-called

in

as

lower

still to be written.

that there
or

James

concessions

or

just how much

ore

now

of

Cash Divs.
No. Con-

to

very easily
Explorations
are still
continuing in the region,
however, and the final chapter on

the

It is known

north

the ore in the trough and
region generally is of the

beneficiable

explorations have justified
most sanguine hopes enter¬
tained for the region. As gener-

100%.

just

claims

known mineralized

der the

the

cent

is around 10 billion tons

oc¬

Bay

somewhat

re-

the

ousr as

inal

decisions

Ore Co. in

eral,

credu¬

Extensive

sooner.

iron

region, however,
vicinity of Hud¬

itself. The ore at
Knob Lake is of high grade, con¬
taining 51% or more iron. In gen¬

have admitted to
what they could have

lous

companies or ore
companies themselves to pick up
options from—exploration or pro¬
motion companies, holding orig¬

Hudson's

companies

have become

James

Canada: 1959 A Milestone Year
Continued from page 27

the steel

Bay, and in the Belcher Islands in

only in the
that the steel and

ascertained

other

are

the

Bay,

toward

on

in the

in

notably

not

themselves

ore

and

There

Bay.

the

It is

years

a

Albanel

and

ago

great semi-circle

is for

Knob Lake on the Quebec-Labra¬

half century or

thereabouts, how extensive
deposits
really
were
was

of indeterminate

a

tip of the Pen¬
insula of Ungava, along the west¬
ern shore of Ungava Bay, down to

Trough

Quebec-Labrador

Trough extends—

vein

dimensions—in

through

Great

too,

from the northern

public debt financing. Alert in¬
vestors, however, won't lack for
opportunities to place funds prof¬
itably.
The

feeding
Just as

furnaces.

The Labrador

enterprises of American and Ca¬
nadian steel companies and the
power
development
will
very
likely be the result, mostly of

While the existence of iron

steel

the ore in the
trough is more easily beneficiable
than
the
Mesabi product. It
is
so friable, it crushes easily in the
hand. It is thus simple and in¬
expensive to mine and process.

since much of the

ventures

material

raw

American

important,

To a degree, though
by no means entirely, the invest¬
ing public will be barred from
direct
equity
participation
in
region.

these

the

of

T

or backed by ore companies.
typical pattern of development

A

Thursday, September 24, 1950

page 29

STOCK

EXCHANGE

THE INVESTMENT DEALERS' ASSOCIATION OF CANADA

44

King Street West, Toronto, Ontario

Telephone EM* 8-3031

Cable Address W1LBRIC0

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

.

Cash Divs.

•

Approx.
% Yield

Including

•/*'.*
-

No. Con-

,

.

Extrasfor

secutive

'

12 Mos. to

4

Years Cash

June

Divs. Paid
'

■

.

.■

Based

Quotation

June 30,

into

The Rich Natural Resources

on

Paymts. to
June 30,

1959*

1959

Internationa] Bronze Powders
Ltd.

,

Holding
bronsc

co.

and

19%

manutacturs
aluminum powders
Bubs,

.

v

Interprovincial Building

Credits, Ltd.
Home

Interprovincial Pipe Line Co.
'*

Owns

&

line

0.70

8

11%

6.0

Improvements financing

operates
Red

from

Superior,

Wis.

Barnla,

and

2.05

7

51

4.0

Public

Service,

Ont.

Ltd.

7

0.625

23%

2.7

Holds all com¬

Holding company.
ice Co. Ltd. which

light & power from 2 steam
electric,
5
hydro-electric and 4

Jockey

stations.

generating

power

66,645 hp.

Capacity

Club

properties, has completed
preliminary
explorations
of its
major site off Hopes Advance Bay
Ungava Bay. Partners

on

to

with

dieeel

given two years in which to bring
iron ore deposits at those lo¬
cations into production.
Ungava

the

final

Ltd

0.10

8

2.45

4.1

Operates several horse race

it

conclusion

trated

Lambert, Alfred, Inc. "B"

9

0.65

14

4.6

Manufacturers, wholesalers and
retailers of footwear goods

Plan $300

0.30

9

bl0%

2.9

trust, management

type

1.00

9

Co.

32

3.1

Quebec electric utility

MacKinnon Structural Steel
Co.

1.00

7>

Ltd

Fabricates

and

bl4

7.1

steel.

Mailman

Corporation Ltd

0.60

5

a20

3.0

Subs,
engaged in manufacture of rubber,
canvas
and plastic footwear, etc.
Operating

and

holding

oo.

Co. Ltd.

Mines

"B"

wholesales

and

Capacity:

850,000

tems

5

10.0

lignite coal.

tons

per

year.

fl-00

6

14%

7.0

Gold

Northland

Mines Ltd.__

Ltd

Utilities
electric

Distributes

6

0.15

2.55

5.9

Ontario

Northern

producer

0.45

8
and

power

15%

2.9

development
all possible.

several

to

gas

cities in Western
*.'..V ■
"ir:

-Canada.

Parker

Drilling Co. of Canada
&

Owns
in

operates oil drilling

300

some

3.10

9.7

0.90

9

telephone services to
towns & villages in

counties of Eastern

31

2.9

0.85

10%

8.1

copper,

0.75

9

37%

2.0

Through holdings of 3 subs, oper¬
86

retail

clothing

stores

18%

5.3

Newsprint and allied products

0.28

7

4.00

7.0

floor pol¬

Mfgs. vacuum cleaners,

4.15

6.3

and

U.

the U. S., up

Seaway

Steel

S.

or

the
down the

is

north

pushing its big
project, in order
get it into production by next
year. The company has 4,500 men

or

at

Quebec

Bay and Baffin Island
respectively, islands
less
adjacent to
the
Ungava pensinsula, Way to the
south but still part of the region
is the ilmenite ore deposit being
mined by Quebec Iron & Titanium
Corp. near Havre St. Pierre on
the

north

the

shore

which

Lawrence

it

of

Cartier

in

Cartier

Port

the

nine but also
at

that

the concentrator

on

elec¬

smelts

construction at Port Cartier where

point.

facilities

initial
million

tons

to

Problems

Quebec

Iron

additional

the

be done

As

pretty much the pioneer project

Most

and

the

tion

area,

unique
it

and

has

work

on

Not

rock.

eight

of

Iron Ore has had
problems to face
with imagina¬

the

would

inside

increase

to

arm

the

of this

work

much

have

the

Krupp

shipping

would

a year

consist

than now planned and also of

loading belts to permit ships
Continued on page 30

Br aw ley, Gathers &

Co.

venture.

of

Members
Investment Dealers* Association

oj Canada

Toronto Stock Exchange

Essen,

Westfalen-Huetten

of

Ober-

Huettenwerk

Mannesmann

Like

would

Oceanic

3,0

to

9

0.30

6

5.0

Dussel-

of

CANADIAN

GOVERNMENT-MUNICIPAL-CORPORATION

Ores,

Ungava

SECURITIES

ship its pellets to
transshipment to

the

for

Greenland

"

.

England. Oceanic has disclosed
its plans have proceeded to
stage even of planning a town

that

site,

,

Quotations represent June 30, 1959 sale prices or the last sale
prior to that date. Bid and ask quotations are as of June 30,

price
1959.

§ Add current Canadian Exchange Rate,
Ask.

b Bid.

as

stock dividends, splits, distributions, etc.

tabulation

exhausts

the

list

by
of

no

done

has

project
which
temporarily on
ever,

phone from New York

COMMERCE

BUILDING

3-5821

TORONTO

^

5

Consolidated Fenimore Iron

extensive

ex¬

probably

seems
at
least
the shelf, how¬
awaiting a more

situation and
financing
arrange¬

favorable marketing

Direct private

OF

EMPIRE

iron

ploratory work on a concession in
the lower Ungava Bay region, a

commission basis

BANK

means

likely

developments in this general

Mines

CANADIAN STOCKS

CANADIAN

treat¬

favorable markets and espe¬
cially financing to go ahead with
the job.

area.

Net U. S. funds or

a

ing

ore

Fast accurate service on

well as erecting

plant, but says it is await¬

This

satisfactory
ments.

The

same

company

has

reported drilling in the Lac
D'Aigle area, near Mount Wright.

CANADA
Government ancS

Public Utility

Corporation Bonds

and Industrial Securities

Pipeline and Gas Securities

been

WALKER 5-1941-2

Natural Resource Stocks

Canadian

Cleveland, Detroit

Boston, Buffalo, Chicago, Cincinnati,

Milwaukee, Philadelphia and St. Louis

Enterprise 6772

Javelin, in addition to
holding a valuable concession at
Julian Lake, near Wabush Lake,
in
Labrador
has
other
mining
the

\_

Pittsburgh

185

BROOKS 6• COMPANY

BAY

STREET




•

at

the Quebec side of
the same general

location, all near Mount Wright.
Javelin

Cy Wilks, Manager U.S. Dept.

The Toronto Stock Exchange

on

border

These include properties at

Zenith 0210

*

TORONTO

Over-tlbe-Counter Securities
—

properties

Members

to

of the

laying of more railroad track¬

age

more

When it ran

the north,

ment

S. J.

for

an in¬
blasted

too

capacity to 20 million tons

done

ingenuity.

solid

of

out

inlet

which

L-shaped

let from the bay is being

the only one of them
production is Iron Ore.

some

handle

concentrate

of

shipment by water are being in¬

actual

for

St.

Rather elaborate
docking facilities are also under

in

named

the

St.

the

most advanced of
the other iron mining projects

operation,
all

Solves

frobi

railway

on

Lawrence northward to Lac Jean-

stalled. Actually,
Ore

Iron

Aside

summer,

193-mile

the

on

from

this

there

work

chiefly

trically at Sorel, obtaining a high
grade pig iron as a by-product
of titanium production.

syndi¬

a

farther to

40

Operates wholesale hardware

t Adjusted for

Corp.y Ltd.

transshipment by rail

to steel mills in

Europe but, in its case, probably

Wood Alexander Ltd

a

Mining

Hudson's

representing the in¬
terests of Rio Tinto Mining Co. of

1.20

Operates as trust company

♦

is shipped by water either up

to Sorel for

to

Oceanic,

0.26

Yukon

Victoria & Grey Trust Co

business

Hudson's

off Payne Bay, are the properties

6

Sllver-lead-zinc-cadmium

producer,

35 miles in¬

prospect

Buchumer

9

United Keno Hill Mines Ltd—

iron
from

Cliffs

Canada.

heaters, furnaces, ©tc.

gas

its

for

and

Atlantic Coast.

Mines

—

Schefferville

ex¬

Ultra-Shawkey Mines Ltd. have
explored low-grade, iron-bearing
deposits on the Belcher Islands in

companies

Cleveland

Dortmund,

of

Switson Industries Ltd.—

ore

in

out

of the iron
this region,

Steep Rock Iron

include

Co.,

Verein. Still

1.00

9

Ltd.

and

model

as

if at

dorf and Gusstahlwerk

Quebec

St. Lawrence Corporation

ishers,

of

carried

Ltd. and five steel-makers of West

hausen,

in

mine

on

summer,

many

share

to

Hoesch

nine, and pyrites in Quebec

ates

steel

Germany

Reitman's (Canada) Ltd

Ontario and

of

Iron

9
silver,

cate

These

Quebec

Ltd.
gold,

so

developments

ore

anxious
17

Quemont Mining Corporation
Produces

start

next

year.

project this

Ungava Ores represents

Quebec Telephone—
Provides

0.30

rigs

Canada

Western

with

As

7

Ltd.

to

and

year

v

"

■>:

com¬

concealing its
preliminaries

in connection with the

own

equipment

St. Lawrence

because of ice conditions in

The company is not
desire to complete

has

general

Belcher

as

Far

large part of the

so

considered

its

do

equipment on the
built what must be

ore

r, transshipment :, to
Europe,
probably to Rotterdam. Use of a
Greenland
port as a transship¬
ment point is regarded as neces¬

a

of

Bay where
large tonnages of low-grade iron
formation
have
been
indicated,.

pany's present plans are to roast
concentrate and pelletize the ores
at Hopes Advance Bay and then
to ship the pellets to Greenland

sary

repairing
spot and

Lake, Chance Lake, Simone Lake,
Gensart
Lake,
O'Keefe
Lake,

Audrea Lake, East
Lake, North Lake, Pekans River,
Georget Lake, Harvey Lake, Star
Lake, Cotton Ball Lake, Claire
Lake, and Sneak Lake.
Under
an
arrangement
with
Pickands Mather which acquired
from Javelin the railroad right of
Purdy

Lake,

-

the St. Lawrence from which the

Ltd.

more

Quebec

ized it would have to

Lake when

is

of

land

North, estimates the cost of bring¬
ing its project operation at just
under $300 million, exclusive of
costs of a transhipment station on

Ungava

in Mexico.City.

Dickenson

New

0.50

5

Mexican Light & Pr. Co. Ltd.
Directly and through subsidiaries
operates lighting and power sys¬

the

excava¬

draining

geological mapping,
diamond-drilling and ore testing

for

Manitoba and Saskatchewan
Coal

of

in

settle, thus leaving the pits free
mining operations. Being so

tensive

Million Project

ore

mining

succeeded

shops for
repair
at
railway
equipment repair and servicing
at Sept Isles, terminal point on

Mines

first

the island of Greenland. The

structural

erects

iron

open-pit
far below

far from the centers of population
and industry, the company real¬

ready
to bring the
deposits at that location into
production. Great Whale Iron

Ungava Ores, popularly referred
to as the Cyrus Eaton interests in
the

Power

Lawrence

St.

should

ore

and

deep

wells

for

Lake,

iron

large scale blast
pellets concen¬

the

line into Julien

spur

to

Corp.

Lower

from

of

Wabush

be undertaken in Europe this fall.

London Canadian Investment
Investment

tests

reached

was

decided

was

furnace

tracks In Ontario

tions

Railway, success to
Railway, will build a

Javelin

of Un¬

reexamine

Wabush

its

29

off this water faster than it could

from the Quebec North Shore
into

in

it sunk

the level of actual

Lake

gava

Jamaica

serves

Carol

which,
they are

Ores met early this summer
their plans and to
assess the likelihood of being able
to move with any real speed. No

stock of Jamaica Public Serv¬

mon

line

Atlantic

1,770 miles

Jamaica

main

Iron Ores Co., formed to work the

oil pipe¬
Alta. to

crude

Water,

way

licenses to these companies

3.6

Continued jrom page 28

in substance, means that

0.70

9

;

water

mining,

Of Canada's Ungava Region

—Canadian $ §—

'•

;

30,

1959

(1265)

Enquiries Invited

—

KIPPEN & COMPANY, Inc.
Members Investment Dealers' Association

of Canada

Established 1922

607 St. James Street

West, Montreal

UNiversity 6-2463
Direct Private Wire to

Toronto

30

The Commercial and Financial Chronicle

(1266)

fact that 2,000 men are right now

good

busy at work

The Rich Natural Resources

would

sion

on

first

plant

docked

on

be

loaded

is

each side of the inside

to

arm

at

contemplated 20 millionshipping capacity, however.
blueprints already allow for

ton

where

of a full
T-shaped
by including another inside
arm, as an extension of the first

that

tons

of

concentrate

this is

ore

a

of

called

area

the

for

ore

vessels

now

of

in existence.

Rotterdam

which

could

work

on

at Port

on

Isles,

the

across

north

shore,

not

means

it

The

at

than

more

or

Montreal,

now

though

initial plans call for the construc¬
of

only

idea

15

of

million capacity.

the

amount

construction

dustrial

of
bay

to

that

ore

as

same

other

and

along

iron

An

Cartier,

the

area

be

installed

Ports

A feature of Port

also

Comeau

tion

Sept

Ocean

25 million tons

preliminary

Cartier.
Ice-Free

this

elevators,
being
erected
by
Cargill Grain,
will
eventually
have
a
capacity of

townsite to be erected

a

out of

too

Sept Isles and Port Cartier to

around.

mean

that U. S. Steel may be competing
for
foreign ore business. U. S.
Steel has also started

wheat,

the seaway route
upstream over the
same route, thus achieving maxi¬
mum economies
of transportation
along the seaway route.
These
three
ports
will
certainly
be
generating a lot of traffic all year

Presumably,
vessels of this size could only go
to

Atlantic

and

100,000tons, larger than anything of the
kind

and

—

shipped

stream

ship¬

only 20 million tons alto¬

handle

elevators

possible for
the same
upperlakers to haul wheat down¬

gether. The inlet is designed also
to

ore

Baie

the known plans of the
and ore companies of the

steel

grain

new

will

preciated from the fact that until

entire

upstream

world destinations. The proximity

year.

recently

ment of

farther

to serve the seaway
What all this
means
is

be

—to

be ap¬

can

same

during the cold months of the year

opposite direction, to
facilitate the shipment of 40 mil¬
lion

during

This

up

iron

can

the

HOw much

some

traffic.

construction

in

Lawrence

point

months.

little

a

going

are

inlet
but

that

at

winter

Comeau

a

The

St.

the

feature extends to the Port of Baie

The company's plans do not end

with

ice-free

the

once.

that

is

this

rather

continent

be

remote

is

going

corner

afforded

also

of
on

of

in¬

in
the

by the

tion

Commis¬

Bersimis

the

River.

million
capacity went into

power

missed

second hydro¬

a

Hydro-Electric

Quebec

of Canada's Ungava Region
Continued from page 29

on

electric plant being erected by the

Bersimis

the

on

A

horse¬

1.2

of

opera¬

only

last

first plant, known as
1, is already delivering
the largest known block of com¬
mercial a. c. power by high voltage
(300,000
volts)
transmission,
a
This

year.

Bersimis

total

of

year,

over

kilowatts

billion

4.8

distance,
Montreal,

longest

the

miles altogether, to

400

a

problem

alumina

or

the dam at this site which will be
the

largest dam in all of Canada.
Hydro

Bersimis

and

1

first of the

big

installations

Bersimis
2

gorges
sea.

utilized

elsewhere

be

to

made
a

million,

be

they

nearby

is

to

but

British

to

as

New

delivering
also

forest

and

mineral

the

resources,

industry

some

It

would

hydro¬

tration, good people, and

an

unsurpassed school system.

and

ties to

transportation with excellent shipping facili¬
all parts of the world.
$17,625,000,000 in for¬

eign capital

was

invested in La Province de Quebec

during the past 14
In

splendid road, rail, water

air

June

risen to

years.

4,758,000,

of

the

growth of 17.3%

a

Province
over

the

had

1951

Fresh

There

to

Province

de

ore

St. Lawrence north to Payne Bay,
not
hesitate
for
long to

would

up

some

energy

for

the

trialists to prepare

portion of hydro¬
available in the

if

they could get it reason¬
ably cheap. It has been reported
that they certainly would sit up

area

take

and

notice
hour

kilowatt

power

Quebec

if

power

them.

now

to share in its most

promising

future.

information

on

industrial

sites

and

conditions, write: Provincial
Publicity
Bureau, Parliament




Buildings,

Quebec
50

City,

Canada;

Rockefeller Plaza,

New York 20, N. Y.

or

per

avail¬

were

likelihood

The

across

Bersimis

River.

the
2

St.
will

capacity of

a

annum

per

90,000 tons of
but is planning

this

the

double

within

next

is

hydro¬
electric installations in the region
might run from somewhere around
mills

3

per

kilowatt hour in the
and
maybe as

high

section

5

as

made

is

found

in

exactly

winter

being made.

rivers

has

been

the

regarding
north country

this

of

known

for

time

some

has been unreliable.

data

By previous estimates, only 230,000 h.p. of hydro-electric energy
available

for

the

from

Bersimis,

instance, but Quebec Hydro is

Huge generators, rated at 150,000
h.p. but capable of achieving 50,000 h.p. more than that
most

million h. p.
installation
there.
By
the
old
data,
the
Manicouagan-Outarde
system was rated at only 2 mil¬
lion h. p. but it is known now that

powerful of any

there

electric

installations

hydro¬

anywhere.

continent—are
power

operating

plant

constructed

under

now

in

Bersimis

of

1,

a

underground,

deep

to

mountain

the entire

now on

rock

itself

mountain,
permit the
contain

enormous water pressures.

the

Gener¬

ators

being
installed
in
the
Bersimis 2 plant now are rated at

180,000 h.p. Harnessing the Ber¬
simis for power involved conver¬
sion of a total head of over
feet, consisting of a series of falls
and rapids over a distance of 40
miles,
into
two
vast
reservoir

Outarde

are

available
need

ous

pendable

2

a

three times that amount
there.

for

data

It

accurate

tion desired.

For not much longer

the Ungava area be described

unexplored region.

as an

The

unreliability

Economic

its

report

single

hydro¬
electric
system,
according
to
present plans. Possessing between
them a total of 6 million
h.p. of
potential energy, this river system
will, it is thought now, be de¬
as

a

veloped in three steps, depending
on what need there
might be for
the

The

power.

Outarde

Manicouagan-

could

support
a
tre¬
aluminum industry
at

mendous

Baie Comeau

or

neighborhood,
Comeau

is

elsewhere in the

for

instance.

mentioned

there is the start of

because
aluminum

an

industry there although
of

this

dimension

made for

far

as

In

such

a

Baie

plans

no

have

been

development,

power,
an

including

under

1

million

h.p.

construction, supports

aluminum

600,000

ingot

output
tons

of

a

nearly

year

by

Aluminum Co. of Canada.
Already
the world's largest
single alum¬
inum

production
Lawrence
north

area,

this

St.

shore
region
easily take over the job of
satisfying an even larger part of
could

the

rated

ago

St.

world

Because

of

the

Prospects,

only

two

several

Lawrence

years

rivers

on

North Shore

only four million h.

in

at

The cor¬
rected figure is 11.5 million. This
p.

estimate covers the capacity
of the Bersimis and Manicouagannew

Outarde, as of the Moisie, St.
Marguerite, St. Leon, Magpie, Romaine and Natasquan rivers, all
flowing into the St. Lawrence.
The Royal Commission also rated
at

only 6.8 million h.

p.

the

com¬

bined potential

capacity of all the
rivers flowing into Ungava Bay,
Hudson's Bay and James Bay. The
corrected figure here is 10.1 mil¬
lion h. p.

need

the

for

this

metal.

availability

of

have

A

party of young engineers,
working with the help of plane
and helicopter in a survey of the
region around Fort Chimo, the
Eskimo

settlement

just

off

Un¬

Bay, 600 miles north of the
Lawrence, in a preliminary es¬
timate, place at 3.5 million h.p.
gava

St.

the

potential

River

and

of the

Kaniapiskau

tributaries

and

at

an¬

other 500,000 h. p. some smaller
rivers farther north, all
emptying
into Ungava Bay. There, are also
other

the

of

water

suffi¬

a

be main¬

can

around

of

disclosed

to

provide

steady and reliable

source

tric

a

area.

in

energy

the

of elec¬

Two

big rivers, Fort George
Broadback, flowing into Hud¬
Bay

are

rated

now

at

2.5

h.p., added together, and
rivers, flowing into James
Bay — Eastmain, Rupert, Megiscane-Nottaway and Harricana—
five

have between them a total of 3.6
million h. p. In addition, there are
some rivers in the interior of
New

Quebec, tributary to other rivers,
which
for

still

have

of

energy

be

to

possible

any

measured

hydro-electric

dimension.

mouchouane

bougamau

River

Tms river is

in

is

area

The

Chi-

of

rated

now

Cha-

the

one

at

these.

150,000

h. p.

Big Hydro-Electric Pool

Conservatively,

a
total of
million h. p. of hydro-electric

18
en¬

still remains to be harnessed
in the Quebec Far North. This is
equal to over half of all the hy¬
ergy

dro-electric
stalled

capacity

and

United

in

than

more

It

is

the

all

in

Canada

about

are

stalled
17

35

pacity

is

in op¬

There

h. p.

the

of

U.

in¬

S.

and

installed

of
Canada.

in

Quebec

in

h. p.

million h. p.

the

somewhat

now

itself.

million

capacity

million

in

hydro-electric

capacity installed and
eration

in¬

now

operation

States.

ca¬

If

to

the

18

of potential for New

added

the

6.5

million

h. p. of potential estimated for the
River
in
nearby and

Hamilton

contiguous Labrador, the total for
the

entire

rivails the

area

lion

h. p.
of optential
for the Congo River in

30

mil¬

estimated

Africa, the

largest
known
single
pool
hydro-electric energy known
exist any place in the world.
Some
with

conception

which

the whole

events

of

the

of
to

speed

moving in

area

Ungava

are

of Quebec

be gleaned from the fact that

can

three
area

air

big

airlines

now

the

serve

with regular flights.
Nordprovides service from Mon¬

treal

to

Fort

Roberval

Chibou-

and

and also from Montreal to

gamau

Chimo and,

Frobisher.

beyond, to

even

Quebecair

serves

Montreal, Quebec, Forestville,
Comeau, Lac Jeannine, Sept.
Isles, Rose Bay and Shefferville.

Baie

provides

regular
Montreal, Que¬
bec, and Sept Isles.
In addition,
service

Iron

between

Ore

Co.

operates

Ungava

Transport, providing air service
largely for company personnel,
between Sept Isles and Scheffer¬
ville,
bec

top of running the Que¬

on

North

Railway

Shore

as

&

public

a

Labrador

carrier

passenger as well as ore
between these two points.

for

traffic

Harris, Upham

to Hold
Fall Lecture Series

Harris, Upham & Co., 99 Park
Avenue, New York has announced
an
informal, complimentary

that

investment

series

will

commence

Monday, Sept. 28, at 7:30

p.m.

in

the firm's

99 Park Avenue office.
60-minute lecture and dis¬
cussion periods, planned also for

The

Progress at Fort Chimo

Saguenay River region,
here, 3.6
hydro-electric

now

final

as

to the north and west of
million
h.p.
of

measurements

Trans-Canada

previous

indicated by the fact that
the Royal
Commission on

even

the

of

is

known.

the

northern

depth and flow and the gathering
of other necessary hydraulic data
in the area. Quebec's Department
of Hydraulic Resources has large
numbers
of
engineers
literally
combing the area for the informa¬

Canada's

developed

de¬

take fresh measurements of water

data

These two rivers will

and

these

on

Rivers, just a little to the east of
the Bersimis, will
probably be the
next waterways to be harnessed
area.

the obvi¬

was

rivers, in the face of a possible
big local demand for it, which led
originally to a decision to under¬

can

Manicouagan and

through
huge falls to the

over

year

water,

tears

conditions

tained

information

the

but

par¬

at what cost

and these surveys are

Some

how

available at

ticular locations and

just completing

be

Some

determine

power

possible
good,

some

locations.

to

much

in

mills

northern

was

to

and

the

as

winter's accumula¬

a

moisture,

Careful

from

costs

solid engineering surveys must be

be

For

mill

two

underwater

cable

of

million

doubt

big steel companies with
interests
anywhere on
Ungava Peninsula, from the

iron
the

in the

Quebec invites investors and indus¬

tion

son's

Surveys

slightest

that the

to

Montreal, also

Aluminium

the

smelting of aluminum ingot at
Baie Comeau, also to Gaspe min¬
ing and industrial companies via

The

La

representing

and

Hydraulic

isn't

able

systems.

figures.

its

insurmountable

no

Schefferville.

that

1,000

1957, the population

picked by
utilization.

southern

the

La Province de Quebec has

be

for

be

other

some

or

might

to

plicated by the late thaw, coming
in
the first half of
June, when
great ice jams form

cient flow

Comeau

which

1

—

greatest

im¬

added

that, with proper control,

Baie

spot

The Bersimis power plants are
themselves examples of the most

electric power
system in the world, a stable adminis¬

just

be

at

to

Bersimis

going

now

well

as

in

cost of $400

consumers.

power

City

will

distant

to

power

the

hydro-electric

new

Quebec. Erected at

ingot

available abundant

than

be

to

mediately in the vicinity, whether

modern

are

course

have

computations already made.
The problem in the north is
com¬

Outarde power could of

electric

are

would

the

smelting
into the pig metal
in this area.
Since
Quebec Hydro has pretty
well settled the question of the
economic
feasibility of shipping
electric
long distances by high
voltage transmisison, Manicougan-

pick

the

on

few years.

Here

for

tial.

problem to ship it to Wabush Lake

to

La Province de Quebec.

it

haul

or

has

Capital and industry find the richest possibilities in

to

Bersimis

mining and industrial community
is already under way and growing
up in this area. British Aluminium

OPPORTUNITY|BECKONS

bauxite

transportation,

no

schedule, the second plant,
2,
will
be
ready
to
generate electricity by November.
This plant will have a generating
capacity of 800,000 h.p. Over one
million
yards of concrete have
already been poured to construct
on

firm up the flow of this power to
all destinations. A new, modern

WHERE

be

anywhere in the world. If all goes

Lawrence

...

water

Thursday, September 24, 1959

...

rivers

to

be

measured

in

region whose totals of poten¬

Oct. 5, Oct. 12 and Oct.
19, will
treat, in order: "The Stock Mar¬

ket

And

Mrs.

How

Rose

M.

It

Operates"

O'Neill,

by

registered

representative; "Investing For the
Future''office

by

Thomas

manager;

vestment

O'Neill;

B.

Planning"
and

"The

the

Percy

S.

by

Value

search Behind All This

by

Meek,

"Individual

Weeks,

cf

In¬

Mrs.
Re¬

Planning"

manager

firm's Investment
Department.

of

Advisory

Volume 190

Number 5884

.

.

The Commercial and, Financial Chronicle

.

bearing

Means
Continued from page 3
from

extreme

one

extreme

in

disregards

on

the

to

other

long term cycle.

a

fact

a

that

should

of

age

frugality,

until

conditions

turned to normal.

time will

than

end

never

and

re-

course

Of

have

that

arrive until

be that will force our hand is not

look

eign holdings of

further

to

find

as

A
One

added.

Answers Inflation Argument
The bank bulletin referred to

become

engulfed

fantastic

so

This
the

in

that

the

time

one

a

that has

debt,

surely

one

in-

no

formed person expects that it will
ever
be
paid without a drastic
write-down.

or not.
There is

tjgr there
wnen base

fear

great

of

free

a

price

of

gold

mum>

any

win

ability or
of
paying

no

even

any

that day, ourselves. We talk
balancing our budget to
stop inflation but we race ahead

pone

about

little

with

about

concern

the

were

here today he would with-

and therefore continues to surge.
Did he believe that he or
dissipate our country's wealth in anyone else was wise enough to
We
are

are going
misleading

the

idea

perity

that

in

as

a

time of

even

war

further—we

people
continuing

with

our

be built

pros-

such a debt
dissipation of
by burying the real evidence of a depreciating dollar at
Fort Knox. ' We have attempted
to eliminate gold as a measuring
can

structure and such

on

a

wealth

stick for all other values.:We

are

say

the country should return to

gold at the former price of $20.67
an ounce? Did he believe that he
or anyone else was wise enough
to say what the price should be?
Did he entertain „any notions that
a higher price for gold
would
accelerate inflation? Did he yield
to the great hue and cry that only
the
speculators
and the gold
miners would profit by a free
market? Did he entertain any notions that either he or anyone else
should have a free hand to regulate the money supply in case
there should at any time be unemployment?

trying to substitute our fiat dollar
and make a piece of paper the
measure
of the price
of every
other article including gold itself,
We are to "know the price of
everything
but
the
value
of
nothing." We are not to be trusted
No.
John Sherman knew the
with
real
money
because
real only honest money was money remoney, gold, would measure and deemable in gold. And that means
reveal the actual value of what "hard" money. He recognized the
we are calling money, but is really
necessity of a free gold market to
more
like play-money in that it reveal the truth about irredeemtends to parry us farther and far- able paper money. He recognized
ther away from all sense of real the function of
gold to restore

dollar may
to know the truth can he be
blamed for suspecting the worst?
Are not our stock and^bond markets already showing that a great
many people are

doing this

very

thing?

last 10 years

some

own

citizens who

are

unfortunate

enough to be gold miners, you sell
all your gold to me for $35 an
ounce or I'll put you out of business.
You cannot sell it to anyone else even if they offer to pay
you more. If there is any selling
to be done I'll do it. We have already given an option to our
friends across the water to buy
the gold and they can exercise
their option at $35 an ounce no
matter what the value may be
now or at a later date. Incidentally these foreigners not only have

returned thi£ premium narrowed,

When the date was finally set for

back

a

to^ guide the nasound ^currency

gram.
Of

this

is

not

the

just

good

as

an

ounce

of

gold.

investors

admit the increased value of gold
our

money?

praising

of

'this

readjustment.

The

handwriting is already appearing




pvhortation*

gold standard

The Chart snows the inevitabil-

ity

In

John

Sherman

for by the disappearance

returning our country to redeemable money- in 1879 some of our
sound
money
proponents
are

in terms of

-t

which

CQst t

A nation which has

be at the

mini_
no

r

'5 SUr®Jy aS Newton's la™ of jc-

a^. ^eac*lon

ha<?

gold

complete mercy 0f

which

we

call

monev

T

.

.

P

n""

j^^atine Sart^ that ourmoun"
taiSous debt
£ due for a'
will

sofd

'

oublic

an™ private

drastic

write-down!

undoubtedly

hv

nrP^Pd

ftor

n

be

higher

mnrh

ex-

nrire

keening with its value

in

^

.

£ut it is out otour bands With
' aj^arent c c»n c eii^n in high
Pjaces, noapparent understanding
"ie val"e ot gold to our econ°my>
1S in^ the Panels ot our foreign

Andrews> Posner & Rothschild,
52 WaU street> New York City,
members of the New York stock
Exchangej on Qct
1 win admit
Dorothy S. Mumford to limited
partnership

friends who know the value of
gold, and, now that they have acQuired our dollars through our
JjJWss will no doubt continue to
®

?. ,?

f

v

+

+

' Dan.-ii

Admif

Barrett to Admit

Barrett
N

&

Citv

Y

Co>)

Broadway,

61

members

the

of

New

at $35 an ounce. Yet we are told
•
* r.v*
^ s f
once again in this same bank bul- York Stock Exchange, on Oct. 1

would

and

the world, instead of gold, virtually assures that as a nation we
are destined to learn the tragedies
of fiat money the hard way, as
other nations have. With the pitiable lessons of history to guide
them do these people really believe that inflation can be controlled by shifting debt from one
account to another in our reserve

Partnership Change

,

PITTSBURGH, Pa.—On Oct. 1,
R.

Burton

for

a?

therefore

impractical

dangerous,

and

a

return

$35 to

Jhe

to

the

ounce

our

unrealistic

costs

and

prices,

is our paper dollar.

Can you imagine a more inactually flammatory situation and one forecertainly have a boding of more ill for our nation
seem

if

not

visionary

will

Parker

become

& Company, Union Trust Buildmembers

of

Pittsburgh

the

Stock

New

York

Exchanges

™»Durgn ^ock hixcnangls.
He will cease to be a limited
partner on the same date,

,

;

The Toronto Stock Exchange
lists

larger

a

industrial

Where

of

number

shares

than

any

other two stock exchanges in
Canada.

in Canada
are

the most

industrial

a

general partner in Kay, Richards

Of

the

$53,000,000,000

over

listed

of

shares

than

more

$47,000,000,000

are

shares of

industrial

companies.

shares listed

Every variety of company in

and traded?

industry

Canada's

the

rapidly expanding

is

611

represented

companies

A

complimentary

Monthly
essential

money

paper

of corporation profits and increasing unemployment.
Who is to blame for
Acting Before the Inevitable
our high costs?
There are some
Crisis
strangely silent on this one im- who will blame labor. Some will
Are we, like Britain, to await
portant step. They never mention blame big corporations, some high
the inevitable crisis to show us
bjs institution of a free gold mar- taxes, or big government. The real
that our position is untenable, that ket
apparently because they are culprit, however,
and the one
the dollar has already been in
afraid to allow gold to reflect the which permits all and encourages
effect, devalued, and that we must true value of the dollar.
Their all other excesses and demands,
as

hold

nation

us to chan*e °ur reckIess eourse'

in

in

this

only

for gold.
Instead of production they are taking our
rushed in to buy the markets away from us not only
ary
alchemists who would have government bonds which they had abroad but in our own country
you believe that 35 paper dollars previously shunned because of no and thereby increasing their dolcreated in endless amount by the confidence in the money.
What a lar balances. This can hardly fail
simple process of going into debt precedent!
to be brought home to us shortly
are

sailboat against the wind
no keel.

group.
course

people of the nation.
The magi-presumption
of specie payments way our foreign friends acquire
cians of John Laws' day, the Hoi- the premium had disappeared en- pur money. Because of our flatuland Tulip Craze, and the Missis- tirely and no one presented any lent dollar and our inflated costs
sippi Bubble, certainly had nothing on our modern day vision-

a

if it has

Yes, our government does buy
the trickle of gold which is coming out of our own mines.
Our
government, in effect, says to its

the

for

a

amount

gold and that without our purchases it would decline in price,

bor-

to

tragedy

sailboat without

a

a

our

currency

our

of determinathe part of the pilot can

on

$9 billion worth dollar is the standard of value for

of gold has been produced in the
world outside the United States
and Russia. We have acquired not
one ounce of this gold. In fact we
have lost some 4 billion in the last
10 years. Thirteen billion in gold
have gone elsewhere. Of course
there is only one possible explanation. The $35 price is wrong,
Still some people seem to think
we are supporting the price of

only fooling themselves and

and

tion

future

Cer-

tion

it

Inflation in the United Spates m relation to a depreciated paper
*s n°t °nly out of hand as shown money,, the only kind of money m
oar
annual budget, so which t at debt wi 1 ever be pa d*
u^uch of it for non-productive and
be. If he isn't allowed give-away and_ military purposes,
Andrews, Posner Partner

crusaders, bankers, or government monetary planners, are

confidence

Certainly those who think they
can set an arbitrary price on gold,
be they well - intentioned sound

rowing

That

paper

the exclusive right to exchange
dollars for our gold but they have
basis.
So, a free market was a first call on dollars in your pay
opened and gold sold as high as envelope before you ever see them
$50 an ounce. This was IV2 times through our government's withthe former price.
As confidence holding tax and give-awayx pro-

values.

money

should it come?

war,

for

No

steer

if

letin that determination to resist wm admit John J. O'Connor,
went all out on her postwar ina
can make deflation un- member 0f the Exchange, t©
If John Sherman, Secretary of flationary binge.
A few telling necessary.
limited partnership.
the Treasury at the time of the facts should make this perfectly
This notion which seems general
Civil War green-backs of 1962-78, clear and irrefutable. During the in banking circles, that our fiat

poses

of peace

future

any

for fur-

even

controlled? Without

Refers to John Sherman

enormity, of that budget which out a doubt have instituted a free
has grown to 20 times its size of g°id market long before this, rec20 years ago and almost 30 times ognizing that the longer a free
its size of 30 years ago
It is g°ld market is deferred, the more
largely for non-productive pur- drastic will be the upward price

time

in

win be unacceptable

intendebts,

Irived every way possible to post-

What will be the most

metal

keel.

inflation

of

so

base

its enemies and its allies as well. This
This

ernment which no longer respects
...
.
tion
off
our
the wisdom of a minority. ApparDiverts Gold Supply
Unlike Britain in that former pe- ently no one in authority has the
The $35 price for gold is now
riod we can count on no one to initiative, even though he knows little more than a state of mind,
rescue us from our folly or perhaps
the good of the country is at stake, a holdover from a recent period
even to put off the inevitable readto make such a decision as a first during which the United States
justment to a later day although step to establish real values again, dominated the economies of the
as indicated below we have conwestern powers, and before she
ing

doses

are

bearing on inflation as long as the
cles as well as on the part of some United States citizen cannot conof our bankers because a free gold vert his money into gold at any
market would prick the bubble price? All he can do is speculate
of fantasy atop of which we are on what the ultimate value of his

living. Some of our people would
do well to recall-, the long disby trying to maintain our dollar credited authors of a scheme to
at
its
pre-war
relationship
to take
away
from fie American
gold? Fourteen years have passed citizen his inalienable rights to
since the end of that most de- own real money and thereby place
structive of all wars. We are show- spending
limitations on a gov-

office holders with the stamina to
ther

'ainly not s,eeI> certainly not C°P" Obviously only a sharply higher
to be^oTght with missies! fweig^wlthdrawafs'^wfll"compel

is no monetary base?

Why has the

gold market in governmental cir-

Aren't we repeating the mistake
England made after World War I

well

monetary

any

resist the popular clamor

nation is like

might

ShipS' and what n0t' witl>

it

debt.

Metal

thought

really

they

Do

have

we

could be

monev^sold0^will°b^a nrime^s-

piled

States is

Strategic

more

strategic

against an over - night decision inflation.'
This brings up an inwhich will be made for our mone- teresting point. How can a monetary authorities whether they like

on

gold

our

away

banking system?
believe

gold

world

of the takeoff? A second great war
has been fought.
Debt has been

justification for the second stage

nothing as its base,
invitation to out-

take

con-

makes the statement that a h?gher
securities will price for gold would "create a cPntial' &
a
protection monetary base for accelerating
ld wiU

our

liquidated

be

open

to

open-

government debt

under the above conditions?

there may come a boint where for-

Revaluation
we

present setup, an

than

an

siders

fn^ur dol^continues'To w^ne ST^if^M

Conditions Exist for More

United

the

dollar with

less

or

with- gold.

are

regularity"1 What^the spark^will

and

D10raIlty'

Must

ex-

being fidence is restored and it is dif-

is

Foreigners

realistic.

former

integrity,

pricing

the attitude often

Washington that the
right for a return to a
standard
and
will not be

eliminated from world markets, ficult to see how confidence can
American industry is building be restored without a return to
abroad where costs are realities thiough a free market for

be

to
anyone
except
that
who buries his head in the

completeTntfthes^s of°thaSt

gold
right

The United States by

artificial

its

It

obvious
person

the wall.

in

time is not

Still Higher Price

a

on

pressed

A Deferred Free Gold Market

31

(1267)

issues
you

The

on

of our*

showing

trading data

listed will

free

copy

Bulletin

on

all

be sent to

request.

largest market for

industrial

shares

in

Canada

THE TORONTO STOCK
EXCHANGE

62

(1268)

The Commercial and Financial Chronicle

New Firm Name
business

vestment

Service,
N.

W.,

under

Jefferson
Place,
being conducted

1823
is

now

firm

the

Investor

of

name

of

The Mutual Funds

Mutual Funds

WASHINGTON, D. C.—The in¬

BY ROBERT

E.

Delaware

to

A

we
one

Harvey Streiner Opens
N.

Y.

—

Harvey

from offices

655

at

of

Sept. 17

("When

Fund")

a

dealt with the emotional selling of
small-fry traders. As any¬
who has remained close to the
thinking of the financial com¬

need, to be sure, was vastly different from the little
The unsophisticated dabbler in stocks, as was noted
here,

fellows'.
needed

professional

fellows

ham Parkway North.

was

for

investment

guidance.

The

need

of

the

weeks

MUTUAL

support of the market in which they had "long"

brokers

that

around.

have

And not

would

leper.

a

analysts

the mutual

instances

It

is

have

funds

saying these many
turn the stock market

in

which

no

who have

very ones

business

as

rivals

and

there

diminishing) who view

are

challenge to commissions that would flow
trading in and out of stocks instead of committing
a
long-term diversified investment program manr
as

a

from customers

themselves

to

aged by the funds.

Natimd

saying,

as

was these very same foes of the funds who were
the market gave ground, that buying by the funds could

And there were those who hinted that the weakness
oil stocks could be traced to
selling by the funds.

in

FREE INFORMATION

Now, it is not the function of mutual fund managers to support

FOLDER AND PROSPECTUS TO

the stock market.

YOUR INVESTMENT DEALER OR

Fundmen

national securities &

research corporation
Etfablished 1930

120 Broadway,

It is not their business to bail out friend

or

foe.

first and foremost, trustees. Theirs is a terrible
responsibility, the burden of making the savings of millions of
people grow through judicious investment.
If the funds have
become spectacularly
popular in the past decade, it is because the
American butcher, baker and candlestick maker
recognize that
they have, on the whole, fulfilled this task extremely well.

New York 5, N. Y»)

It

is

are,

the

not

the market,

task

of

the
can

although they

institutional

hardly avoid such

to influence

managers

result, at times,

a

in the light of their

buying power. But if mutual fund managers
to make this their aim, then
they would no longer be worthy
their high trust.
And, you may be sure, this trust would no

were

of

longer be forthcoming.

And,

the people who did

as

more

Wall Street to the 50 States of the Union than
any
not going to fry
of

active

on

the

stocks

selling

And, with the hope that springs
there was the expectation that
advantage of the opportunity to buy

the

on

bargain

counter."

(They

showing

were

strong

a

record

Robert

made

below for

amid

the

have

own

been

mutual

if

even

funds

baffling currents

The mutual funds

been

They have not
community. And the day

the

millions

been

the

on
-Stale.

CUy

Broad

friends

the

J.

a

get-rich-quick "counsel"

that

built

CONSIDER...

S. Eckard is
engaging in a securi¬
business from offices at 404
Olive Street under the firm

ties

EATON & HOWARD

ment

name

of

Eckard
&

Boyd Eckard
was

&

formerly

Co.

ties

totaled

Association of Investment Compa¬
nies
has
announced.
Purchases

during

July,

Mr.

with

Avenue.

Hall

located

of

The
in

Total

Hall.'

financial

assets of the

net

BROOKLYN, N. Y.—Irving Git¬

'S;i ""'SS
® o('mc>Pal

is

conducting

business from

cow"8.,

55th

offices

Schweickart

$11,351,342,000

fund

securities

a

at

251

branch

East

Road

Street.

E.

office

under

at

the

.,

plans

1958,

between

selected

your

Investment Dealer

for

invests
in
bonds and

stability,

and

a

or

Prospectus

preferred

of




funds

mutual

imately 3.6%
equities
Stock

thef

of

listed

fund

di¬

are

value

of

the New

on

common

stocks

Chicago

—

—

all

York

in

investors led

the

na¬

purchases of mutual fund

Y.

&

Co.

directlyExchange

Stock

of

Westheimer

and

and

&

the

affiliated

was

Fifth-Third

Union

Provident

Trust

Co.

4

'

Pogue

leading Cincinnati Depart¬

a

and

of

the

Board

the

long¬

served

Stock

recently

Directors
&

of

Board

Cincinnati

of

Bank

former

a

of

the

Exchange, he also
on

Co.-

Savings Bank

A director of the H. & S.

Co.,

with

Trust

the

of

Savings

Co.,

Leesburg, Ohio.

Columbian Securities
Columbian
tual

Fund

formed
180th

Street,

engage

Officers

in

Securities

Shares

with

a

and

Inc.

offices

New

has

at

882

York

securities

Mu¬
been
East

City,

to

business.'

Irwin

Jonas, Presi¬
dent; Seymour Dubbs, Vice-Pres-»
ident; Eli Levine, Treasurer, and
Gilbert L. Schutzman, Secretary.
are

Fund Management

LITTLE
ment Fund

ROCK,

Ark.

—

:

Invest¬

Management Corpora¬

tion has been formed

at 800 West Third Street to engagein a securities business.
Officers

1959

000,

the

a

of

Jay

totat%)f $194,299,-

a

National

Investment

Association

Companies

York

was

of

announced.

second

among

the

with

with

offices

Harry H. Crow,- Jr., President
Treasurer; and Tilmon Waters;
Secretary.
Mr.
Crow
was
for¬
are

and

purchases amounting
$181,643,000.
merly with Merrill Lynch, Pierce*
Nation-wide, purchases of shares Fenner & Smith Inc.
open-end

nies

Y.—

with

by

month

investment

investors
period

to
$1,Gains in mutual fund

153,979,000.
investments

virtually

compa¬

during the six-

amounted

were ^

every

registered

in

state.%.,,,

The third state in

purchases

was

where-; $76,818,000
in (' ftiutual
fund

invested
Illinois

was/fourth with
totaling,- $55,735,000
Massachusetts with

by
$48,645,000;
Missouri/with $47,306,000;
Ohio
with4 $41,948,000;
Florida

with

$36,756,000;

Michi¬

with $35,787,000, and

Minne¬

with

$33,847,000:/

Broken

down

vestors

in

the

regionally,
i

Middle

Fund of CANADA
LTD.

A

diversified, managed in¬

vestment

and

volume

of

in¬

$283,403,000.

$235,195,000.

Third

the

Canada.

Net

resources

growth of

earnings

are

by

the Fund at low tax cost.

Atlantic

The

Pacific region of California, Wash¬
ington and
Oregon was second
with

in

industrial

retained and reinvested

.

York, N^ew Jersey and
Pennsylvania — wete^- in front in
share purchases with ja total dol¬

Angeles

N.

firm

Vonderhaar
the

Inv.

*

lar

Los

the

For FREE

states—New

upon request

Atlanta

joins Bache

member

%./

Exchange.

stocks

Lord, Abbbtt & Co.
—

mutual

gan
bal¬

tATON & HOWARD, Incorporated

New York

of

totaling $58,532,000
$73,704,000
for
and
$41,761,000 for

followed

portfolio

He

from

Citizens

with

investments

selected for growth possibilities.

24 Federal St., Boston 10, Mass.

plans

sota

Company

anced

Prospectuses available from

such

association pointed out.
Mu¬
tual funds currently hold approx¬

Middleneck

A Balanced Investment Fund

He served in this post

by investors declined dur¬

shares.

The

opened. In

were

20,278

ac¬

put into effect.

August,

was

and

31,

During

In July, 1959, 30,549

Pennsylvania,

c°h7e.

Exchange.

of

N.

Business Shares

of

shares during the first six months

opened

American

veteran

for a record-breaking three-term
period.

Store,

to

Turner.

lifelong resi¬

a

and

the securities business, is a former

member

Florence

EDM

the world.-

Chairman of the Cincinnati Stock

time

formerly

32

Vonderhaar,

ment

was

direction

Mr.

dent of Cincinnati

Trustees

states

has

offi¬

through-:

out

Vonderhaar

August, 1959, 33,441 new accumu¬
lation plans were* started by in¬

New

Co.

Aug.

on

continued.

shares

125

NECK,
&

C.

slightly during the Company (Cincinnati) where he
month, it reported. They came to had been a partner since 1947. His
association with this firm
dates
$15,402,117,000
at
the
close
of
Prior to entering,
August,
1959,
compared
with back to 1932.
the
stock
brokerage field, l^fr.'
$15,532,827,000 on July 31, 1959,

in

terman

mu¬

the

net¬

tions declined

Plainfield, N. J.

GREAT

155

the

Schweickhart Office

Irving Gitterman Opens

to

tual fund members of the associa¬

at

firm

amounted

$220,776,000 and, in August, 1958,
they totaled $133,131,000.

Faraday Securi¬

offices

1959,

in

of

ces

of

during August
$175,825,000, the National

Assets

even the diefield that has given

business

from

branch

H.

versified among an estimated 3,500
securities
of
2,000 corporations,

WESTFIELD, N. J.—George E.
\Handza is continuing the invest¬

East

of shares

purchases

be

seventieth

Bache

and

new

will

work

77,000 investors.

July,
1959,
August of 1958.

Now Proprietor

Boyd

—

the

•

tion

PORTERVILLE, Calif.

office

In¬

fund

tment

lives

firm. The

election

Financial

mutual

than

California

Boyd Eckard Op ens

Inc.

mutual fund shares

flourishing trade at

a

the expense of their fathers.

i

Fund,

Fund, founded in 1935, is

Investor

L.

Partner of the

C.

directors.

more

by

Senior

Managing

of

Wedemeyer
Tempest to the

William
of

an¬

Bache,

*

Albert

$155-million

a

ing

not be distant when

may

Group

was

nounced

nation-wide
*

Industrial

General

board

Fla.,

Harold

funds.

compared

of

Mr. and Mrs.

in

Street

Fort

at

Lauderdale,

company,

of Denver has announced

has

office

been

diversified,

investment

Financial

and

of

Tri-Continental

of

Redemptions

shifting for themselves
foreign tension and

without

has

Wilson

❖

shares

populace, which seeks
investment direction and, unlike another
generation, is not bent

Addreit-

the

not

tight money,

hards will recognize the
profound values in
guidance to a broad cross-section of the

Namt-

of

long ago made their mark with

America.

St., New York 4, N. Y.

fraction

a

had

of

labor unrest.

HARE'S LTD.
85 Broad

would

people who
a

M.

leading

a

mutual

were

the

situation

J.

closed-end

of

pay¬

member of the investment

a

Corp.,
and

share,

a

Sept. 25.

August,

the

community, which
quick to attribute the recent market weakness to
emotional
selling by small fry, might well ask how much more serious

coupon

a

stockholders

to

15

cumulation

From all this
may yet emerge a better appreciation of
mutual funds by
people, in and out of Wall Street, who have
always viewed them with favor. The financial

free Prospectus.

declared

had

vestors.

was

Mail the

LAUDERDALE, Fla.—The
appointment of Harry C. Vonder¬
haar as Resident Manager of the
forthcoming Bache & Co. branch

Jf.

■

popularity of accumulation
plans for the regular monthly or
quarterly acquisition
of
mutual

side.

preference for Treasury bills in recent
days.)

GROWTH FUND LIMITED

Bache in Florida

Lionel

of

The

eternal within the human
breast,
the funds would soon "take

shares.

Vonderhaar with

common

1958.

are

somebody else's fish.
Meanwhile, the Wall Street fraternity was getting a measure
comfort during the market
spill from noting that the funds were

not

CANADIAN INTERNATIONAL

#

Corp.

Oct.

and

to spread

other, they

fund

FT.

dividend of 12 cents
able

stem the tide.

WRITE FOR

in

corporations,

election

■;

Parker

dustrial

Ironically, it

Income Seu&1/

mutual

Chevrier to the board of directors.

they shunned them as they
course, that there are short¬

secret, of
sighted Wall Streeters (their numbers
the mutual funds

been

buying could
these people are the

few of

a

upon

been

even

and

institutional

long looked

FUND

Canadian

committee

Many

INVESTMENT

Ltd.

Fund,

invested

of

big

positions.

A

General

is

stocks

announced

of

H

■

Their

Pel-»

if

Ohio,

investors
worth

Central

region, com¬
Indiana, Illinois,
and
Wisconsin, where
purchased
$161,949,000

of

Michigan

in¬

new

a

Report

North

posed

agreement.

which

Fellow Needs

a

of

advisory

Canada

Big Fellow Needs A Fund, Too

column

munity these past few weeks can attest, many Wall Street brokers
and big-time traders also were in need of succor from the mutual
funds.
"•
'
'V;V ■

Streiner is conducting a securities

business

approval
Ss

Service.

BRONX,

obtain

vestment

the

East

called

special meeting of shareholders
for Oct. 20 at Wilmington, Del.,

Investor

In

has

Fund, Inc.

a

RICH

Service

Securities, Inc.
Officers
are
Samuel J. Gorlitz, President;
Daniel M. Lyons, Vice-President;
Jacques M. Heller, Treasurer, and
Irene
Eichner, Secretary.
All
were
formerly
with
Investor

Thursday, September 24, 1959

...

was

the

descrip¬

tive

Prospectus, mail this ad
with your name and address
to Dept.
cF-2.
THE

50

KEYSTONE

COMPANY

Congress St., Boston 9, Mass.

*

Volume 190

Number 5834

.

.

The Commercial and Financial Chronicle

.

(1269)

office

News About

CONSOLIDATIONS
NEW

Banks and Bankers

OFFICERS,

the

BRANCHES

NEW

at

54th

Street

Mr. Mencke

way.

Bank's

205

in

East

charge of

42nd,Street

Office.

ETC.

1
*

REVISED

CAPITALIZATIONS

The

*

of

as

Harold

Federation Bank

and

Trust

Com-

pany,
:

"

_

William R. Cross, Jr., has been

elected

office

Vice-President of MorGuaranty Trust Company of

gan

a

President

as

available

as

will

be

consultant.

a

Flanigan will

but

continue

Mr.

Chair-

as

*

*

Director

and

of

Public

Chief Executive
Officer.; Relations of the East River
Stewart,"
Mr.
Flanigan ings Bank, New York died
stated, "will share with me the 21. Miss Campbell had been
executive
responsibilities
of the East River Savings Bank
Manufacturers
Trust
Company. 1933.; She was 63 years old.

; "Mr.

He

has

had

than

more

22

experience in commercial banking
and nearly seven years experience
in investment banking.
?
.

time, it is

same

matter

a

Master

of

Business

tion

banking

President

Mr
New York,!1

18 by

Sept.

Mr

Cross

the c bank

division.

will

be

general
had been

He

1930.

banking

He

take

on

Trustee,

career

Mr.

clerk

a

the

auditing

department of the National Bank

department;

0f

Scott,

the

United

States

A.

De-

Commerce

later

served

partment, and John G. Winger, of

in

department

the

of

New

York.

bank's

the

He

credit

tion's

j department

as

Vice-Presidents.

.

.•

Mr. Patterson joined the Bank
in 1952, had been Assistant Vice,

President

since

joined the Bank in
been

Assistant

an

since 1950. Mr.

Mr.

1956.

1922

Scott

had

and

Vice-President

Winger

was

named

petroleum

a

economist in
1956,
joining the Bank in 1950.

after

H.

appointed

Adams

has

been?

Assistant

an:

Vice-

President of the trust department.
•

The

*

%

Manufacturers

Chase

Manhattan

Bank,

bank's senior

the

was

ficer for

some

The

as

A

unique

provision

in

if

inqHp

adrPPmPnt
agreement

ble

made

it

Ramer

Bank

and

Trust

Co.

sonnel

With

four

offices

Curtis

in

the

P.

City

islands,

bank's
In

of

*

in

York,

New

of

died

Mr.

New

Nunn

became

for

York

Company.

City

Assistant

the

Later
and

Treasurer

a

Na-

he
a

Director of the City Company of

$10,420,000 and
$12,304,000 as

of

York,

Assistant
Stock Purchase

Mr.

Assistant

the

of

Nunn

in

Panama

Zone.

four

and

Altogether,

have

102

offices

in

became

Assistant

the

the

branches

New

will

on

United

States

and

10

sentatives'offices in the U
-

S

Servto

rose

and

subse-

she

attain

tne

office

elected

was

Vice-President, the first
of

Rela-

to

woman

Vicp.-Presi-

dency in the history of the East
River Savings Bank.
*

*

*

W.

West Indies bank and

by

the

of

at

Jackson,

The

Dime

across

Savings

Bank

of
Brooklyn, N, Y.,
passed the major portion of

three-quarters of

a

has
some

billion dollars

board

of

the

on

Sept.

Federal

System.

serve

banks

had

Directors of both
approved the merger'

earlier

Horace

of

;

Flanigan,

Chairman

York

the

two

forth

the

the First National Bank of Helena,

Oct. 22.

on

consolidate

bank

his

letters

set

planned membership of the Board

banking

72nd

with

1913

affiliated with
Manchester Bank in St. Louisl
"
^

of Directors of First Union New the
"
Haven National Bank, as the new
In
1917, Mr.' Watts joined the
institution will be known.
yj "■< French Foreign Legion for duty
The plan to consolidate was first
in the

European

announced
Boards of

at

Street.

Directors

of

the

the

War

banks unanimously voted in favor
of the plan. Before the plan can
be made effective, approval by the
holders

of

two-thirds

of

the

out-

standing stock of each bank and
by the Comptroller of the Curis necessary.

rency

According to the bank letters.
Comptroller of the Currency
has already given preliminary apthe

proval

to

lowing

a

part

the

consolidation.

favorable

of

the

vote

two

Fol-

the

on

stockholder

groups, the Comptroller would be

in

position

a

issue

to

his

United

the

two

certifi-

The Agreement of Consolidation
an exchange of stock
the basis of 1.20 shares of new

stock

of

National

the

First

Bank

New

will

receive

for

each share Of that bank's present
(par $10) one share of the

stock

stock

new

(par $10)

of the

con-

as

Tri

the

seen

bank's

total

resources

rise from $156,000,000 to today's
total of nearly $1,200,000,000. In
those same 30 years, "The Dime's"
mortgage
portfolio
has
grown
from

$111,000,000
$768,000,000.

to

than

more

After serving in various capacities in the mortgage department

a

Louis

tions by the new bank.

hewafSromStedto Assistant
Vice Pr«St Tnf in
1929
he
Iat,'S 1vice President
JJfaifinn hiStained until 1935
a

p0Sltl0n ne retalnea u 1

Griswold

C.

and

Walter

•

*
*
*
A merger certificate was issued
on Sept. 4 by the Office of the
Comptroller of the Currency ap-»
proving and making effective, as
of Sept. 5, the merger of The
Depositors
National
Bank
of

*

*

,

tt

11

a

-

i.

-

xi

-n

•

i

*

¥,arol<i ?/ Ashworth, President

ac

foliar

a

teller

as

a

in

1924.

if

when

He

fmirirlaf?

ixrac

it

founded

was

became

President

in

named Assistant

he

was

*

*

capital stock of
The First National Bank of
Jermyn, Pa., was increased from

$100,000 to $200,000
dividend and from

by

stock

a

$200,000

$250,000 by the sale of

new

to
stock,

effective Sept. 10.
(Number of
outstanding—10,000 shares,
value $25.)
*

*

*

a

Vice-President.

*

Baltimore, Md., succeeding Frank-

bas

N.

Y.,

Arthur T.

By

*
*
*
stock dividend

a

proval

Roth has become Chairman of the

mon

Board

Citizens National Bank of Alexan-

and

continues

as

Chief

of the Board and President,

Paul

E.

Prosswimmer

President,

Banking

was

vacating

in

the

Department

voted

ap-

the

capital stock of the First and

dria, Va.,

000,000

was

dividend

increased from $1,-

$1,100,000

to

from

and

by a stock
$1,100,000'to

'$lJ350jQ00 by the sale of new
stock, effective Sept. 10. (Number

shares outstanding — 135,000
shares, par value $10.)
of
•
*
*
The National Bank of Detroit,

an-

into

the

building

new

of

Hagemann, Jr., President of the the loss of

Sept.
a

divisions

contact

customer

weekend

11-14

business

on

the

without

hour,

and

.,4* ./*

Board, it was announced today by
Harold H. Helm, Chairman.

Boston, Mass.

it

Sfhf
II

U

early

year.

announced approval by

the board of a regular quarterly
dividend of 20 cents per share
payable Oct. 6 to stockholders of
record of Sept. 25.^
the intention of our dito
maintain
the
same
dividend rate on the new stock
"It is

rectors

to be issued," he disclosed,
10%

the

of

Issuance

and

stock

new

dividend

stock

also

are

subject to approval by the bank's
stockholders at their annual meet-

jng>

the

*

common

Fort

*

F%a.,

Lauderdale,

sale

the

by

"seplT

effective
,

of

of
of

in¬

was

to $2,117,*
stock,

new

of

(Number

4

outstanding

.j^reg

.

stock
Bank

creased from $1,815,000
500

•

.

capital

National

Broward

211750

—

?

value $10.)

Bar

'

*

Ralgh h J?nes. ™as eI?cJfd

i

National

the

of

Vice-President

Bank of Commerce, Houston, Tex.

and

*

*

*

Michael

T.

the

of

President
Executive

Hopwood,
Meyer,

D.

S.

Frank

has been
Board,

Halbonty

Chairman

Vice-President of the

North

Side

Tex.

state Bank, Houston,

completed the transfer of all de-

Company, New York, anthat Charles J. Stewart,

bank's

authorities,

H clpprOVai IS ODlcU
stock dividend will be. paid

of

General the
was

nounced Sept. 16 by H. Frederick

the

by

banking

of

*

corn-

of Miami,
to225,000
stock^dividend

150,000

waVanno"urTc"ed"septrr7

The

the

capital stock

Bank

and^a, 10%

been

bn P- Whitcraft, who retired.

*

At The Franklin National Bank
of Long Island,

The

Board of Directors subject to ap¬

the

was

made

from

He also

appointed an AsBrison C. Tucker was elected
Vice-President,
and
in President of Eutaw Savings Bank,

was

Metropolitan

Fla.,

*

common

Mortgage Officer.

with

C.,

stock of $2,500,000.

An increase in the
of

par

when

N.

tional Bank of Greensboro," with
capital stock of $2,875,000, divided
into 575,000 shares of common

next

1947.
The

Durham,

common

Dorsey

elected

Iri

Cashier

v922

shares

shares

1945,

Vice-Presidents
has

York

newlv

the

ininerf

Assistant

at;

sistantNew

v.^

created First National Bank in St

stock of the par value of $5 each,

and personnel of both banks will
be retained in comparable posi-

of the bank for 16 years, Mr.
Jackson attained officer rank in

pointed

Chemical Bank New York Trust

was

iqiq

elected

Company,

World

entered

made Second Lieutenant,

was

r

Wheri

theater.

States

transferred to the
staff sergeant and later

I, he

AEF

The stockholder letters stated
that all of the operating officers

Cheltenham, Pa., died Sept. 14 at
the age of 59.
Mr. Ashworth joined the bank

*

the intersec-

Aug. 24 when

on

*
*
*
Mich., will dedicate its new Main
Bonhag, Assistant Manaeer, and
The election of Roy W. Lawson Office on Oct. 4.
Miss Patricia McElroy, official as- and Robert E. Munroe as Senior
National Bank of Detroit moved

Gordon

in

career

In 1915, he

Ark.

Rockland-Atlas National Bank of

partments by Sept. 21.

formerly
on

to

banks

the

on

A. Miller to its Brooklyn Advisory

Board

of

nounced

of

proposal

Mr. Watts has served First National in various official capacities
for more than 33 years. He began

vote

Manufacturers

the

Trust

C.

*

*

will

by

of the Board.

and

Since joining the staff of The
Brooklyn as an inspector
in its mortgage department on
Spnt
93
1Q9Q
I\/Tr
TQ^l-cnn
Viae
Sept. 23, 1929, Mr. Jackson has

man

.

❖

Conn.,

Union

Company, New

of the Cheltenham National Bank,

vision of William W. Carlough, the bank.
i4: Manager, assisted by Herman A.

Re-

The

tury-old bank.

the

stMkholdfrs

bv

and

plan on

announced

was

William A. McDonnell, Chairman

New

solidated bank.

city' wiu be under the super" 'he overall lending activities

10

Haven, Conn,

Bank,

it

"*1,

merger was effected
under the
charter and title of "Security Na-f

1958

new

Public

"and"

Sent

National

Oct.

First New

common

In

.innovated

Financial

Banks

on

Haven

under the bank's pension

of The

Haven

tions.

she

in

York

Board

loan department of First National

Stock-

Programs,
vistas

The new branch> which is First post of Executive Vice-President,
National City's 80th in New York a Director since 1947, he heads

Banking

in

*

holders

the

Executive Officer, it was announced. He was formerly Chair-

and

*

Company stock (par $10).

with

purchase
had
on
Sept. 2 bv the New
intendent
State
of
Superintendent

proved

be

(par $10) of the consolidated bank for each share of Trust

Charged

opened branches at Third Avenue
and 46th Street and Third Avenue

and

-

abroad.

1 The

located

She

for

account

new

tion of East 63rd Street. During
recent
months - the
bank
has

repre-

time

stock of $500,000, into
Security National Bank of Greensboro,
Greensboro,
N.
C.,
with

*

Third Avenue on Sept. 21 in

auarters

York

will

Office

Durham,

The First National City Bank of
New York opened its third branch

City and 26 outside the continental

*

four

bank

in

*

in

;

Canal

Cuba,

in

two

,v

on

1956

four

Director

responsibility of the Bank's Advertising
and
Public
Relations

sistant

Rico,

...

.

Lawson M. Watts, Vice-President *n charge of the real estate

permanent

provides for

Relations.

Vice-President in 1951.

includes

nounced'

this

lie

of New York in 1949 and Assistant

Puerto

new

on

cate of approval.

Caribbean
now

its

E.

anV

has

President,

quently was appointed Assistant
Vice-President in charge of Pub-

In 1949, he

which

of

Secretary

Cashier of the National City Bank

system

ac-

Pro-

responsible

was

ice, Departments.

The closing added four banking
offices
to
Chase
Manhattan's
branch

Andrews,

St,

Kelly

15,

Bank in St. Louis, Mo., will retire

December,

and

Inc.

Plan Corporation.

Aug. 31, 1959.

she

new

office.

Dime of

*

Nunn, Assistant Vicefh/s
the l?ircf Mafinrm.l
First National

1929

was

tern-

Sept.

earlv

the

some

*

to) in home mortgages, observed his
30th anniversary with the cen-

n-P

Treasurer

of

advanced

was

17,000 employes.

had

resources

bank in

Sept. 18 at the age of 55. He was
head of the retirement plan of the

New

deposits

the

of

Bank

the West Indies Bank & Trust Co.

total

joined

Department, 45 Beaver St.

tional

16.

Mr.

position of Assistant Secretary. He is assigned to the Per-

clerk

at

by

the

the business and assets of the West

;
The sale becomes effective
the
close of
business
Sept.

John

announced

1927 and in 1955

Presi-

Service

Service

coordination

whose desk

also

was

Pr^ciH^nf
President

shares
of Chase Manhattan
stock,
through an underwriting agreement, to be used as payment for
Indies

1934,

of

head

Head

to

of

charge

the

Frederick

of

Flanigan.

the

nncQipossi-

22,300 outstanding

for

in
the

capacity

in

of

Assistant Vice-Presi-

an

then

Savings Bank,
position at the Bank

G.

appointment

RamCr
dent

years

*

merger

loaning of-

prior to being
ele^ed President in 1956.

Co., Virgin Islands.
iPrtfPr

Trust

Senior Vice-President in 1951, and

Mr.

York, announced on Sept. 16
that it completed the
purchase of
the West Indies Bank and Trust

institu-

Company as
Assistant Vice-President in 1929,
became
Vice-President
in
1939,

*

New

the

as

traveling representative in
the southwest territory.. He joined

.

William

and

the

business in the bank's five
in

Herbert P. Patterson, of the inter>

Compbell entered
.suggestion
of

James

the

moted

became

Business

the

first

in

Director

national

petroleum

Her
was

counts

Hooper* began his banking
as

R.

University,

of

dent of Eafct River

Vice-

and

Miss

at

of

A' Company in 1949.

The, Chase
Manhattan
Bank,
ptfew York on Sept. 22 elected
David

Miss

Mo.,

the

1960.

The

Administra-

York

School

1933

*

,

of

:In

in

President of The New York Trust

New

Graduate

of

rapidly
offices

the

Vice-President,

President,

Com-

Company in

advanced

from

Darwin

the

Department

through

Assistant

President of The New York Trust
*

joined

Banking

banking

Vice-

a

Company since 1951.
*

to

The New York Trust

assigned

s

Stewart

mercial

Henry* C. Alexander, Chair-

man

to

announced

was

and

lighter responsibilities."

Cross, Jr.

since

Administration.

fice
R.

Avenue

completed

Haven,

.

Trust Company for 30 years, finds
it necessary to relinquish his of-

Wiiiiam

of

Sept.

Compbell received her ^Bachelor
of Arts degree from the University
of
Michigan
and
held
a

regret that Mr. Hooper,
who has been with Manufacturers
sincere

as

Western

Bank,

Jefferson-Gravois

Louis,

?

Construction

New Haven Trust

with

0f

Mass.,

_

"At the

of

to

Atlas

-

Boston,

customers

Sav-

Born in Fairland, Indiana,

years

Rockland
of

Stockholders

Dorcas Campbell, former VicePresident

the

Bank

site.

same

*

and

man

later

National
welcomed

the

New York, was announced
Sept. 17 by Thomas J. Shanahan,
President.

—

,

A.

Director of

a

days

porary headquarters
of
Western
Avenue Office

*

election

O'Callaghan

.

Broad-

and

is

33

President

Trust

of

Company,

The
New

New
York,

Sept. 21 was elected President
Manufacturers

effective Nov. 2.

Trust

Company

Mr. Stewart will

succeed Eugene S.

Mr.

Helm

also

announced

Sept. 23 that Frank G. Frederik-"
sen

John

and

Assistant

appointed

B.

Mencke,

dents.

Metropolitan

Division.

of

eriksen

the




Both
is

former

Secretaries, have been
Assistant
Vice-Presi-

Hooper who, in
anticipation of r'etiring for reasons

health, wishes to relinquish the

on

at

are

with

the

Bank's

Mr. FredBank's regional

Mr.

Hagemann

also

the election of Norman H. Lee

as

Assistant Cashier in the Commercial Loan Department.

*

,

The
and

corner

Everett

*

*

•

of Western Avenue
Street in
Boston's

District
was
just
a
vacant lot last Thursday; only four

Brighton

*

announced

*

Centerville State Bank, Center-

ville, Mich.,
First

Company
zoo,

was

National

absorbed
Bank

and

oy

The

Trust

of
«. Kalamazoo, Kalama-

Mich.

J8
Preston Estep was elected a
member of the Board of Directors

charter

*

*

*

A

*

was

issued

by

the

Comptroller of the
Currency to the First National
Bank of Kermit, Kermit, Winkler
County, Tex.
The President 13
--Office

J-

"anH

iV£

**.

c^p

or

of

Th

r

K.

minnnrvn

„nnnff

$iou,uu

.

'

Cashier

the

bank
and

a

has

Z

SUrDlus-

;

24 )

The Commercial and Financial Chronicle

(1270)

Ciifiir^k
Deiier rUIUl
IvJI
v^O» lavJMCai
A*
^
r•
rr\r

O./"V
I
QvJv2
UC A TroH^

QilVJ
^nn

I

.

fvWi{mm

h-

ffimmptTP

^eetforts T
tend
to

f,ow
flow

"aturally

would

would

and

north-south

be

feel

Culturally, the problem is
greater. With the population
one-tenth that of the U. S., mass
(2)

circulation

which

difficult

are

to

those

in

any

same

is

true

books,
made

radio^anTrV—it
radio and IV
it

not

economic

to

o?ten

more

networks

our

the

radio

large proportions
S. material.
So, it is hard

oi

U.

maintain

distinct

a

Culture—out

Canadian
tried

have

we

and,

think, with reasonable success.
For
example,
our
thinking
on
rnany
vital issues differs from
of

US.

be

sort

a

between

achievement
would be

S.

(a) Wheat is much more sigmfi—we

joss

jn

production

relation

to

in

and

thinking;
TV

S.

U.

So

than

bushels

min10n

mar-

the United

in

and

0f

,,«Pd

oniy

annually

ot

28%

of

needs
t

_

export

to

Qf

bushels

the

average

of

Canada

much

a

wheat

totaj

her

larger

crop

than

our

But

we

wheat

to

than

Canada

the

t0

struggle

the

to

p
though

pursuing
alleviate

the

policy

a

S.

U.

was

designed

to

serious domestic prob-

a

jem and though there was no intention of harming Canada, the
fact is that Canada was seriously
affected.
much

Canadians

the

which

wjth

resent

very

indifference
dumping was

apparent
U.

S.

nf

and

.f Tt

seductive cultural

the

to

the

of

excess

accruing

Remember
of

o

French

fights

„

,

this

and
even

also

that

population

our

is

paiticular group
strongly than

more

Now,
the

<2)

n.,

0l1

,

,

if the

U.

S.

loss

were

of

due

markets
to

complex,

have

basic

a

separate

identity which puts

and

fensive constantly and

to

distinct

the de-

on

us

suffer-

are

ing from rapid industrial growing
pains which inevitably cause institutional change
us

more

than

concerned

it

prevent
the

and this

from

precise

makes

ever

congealing

mould

to

into

created

by

the

factors tend to make

"

cal

of

the

arateH

'

thines

fart
fact

of

us

of

the

havp

U

from

miles
Thp
The

a

U.

von

hv

to

within
S.

border

nation

oin-

nom

800 miles Of
mu

^

i

Chicago

W

the

United

\

in

States

•

specifi-

grounds

the

over

"The

not
as

es-

like

On occasion

U.

S

XXCU

black

mail

-JSSr

V^IUUcl.

be

may

A

acIiblUVc

expected

to

voice

that

know

like

gut

there

is

besides

subtle

the

such

that

excise

im-

tactless

"domination"
a

insidious

more

problem

of

alleged

which

furor in the

and

U.

created

S

such

1958 Canadian elec-

tions.
Factories
u

S

controlled

parent

through

companies

account

manufaetur-

ing nlant sales and one-fifth of alt

Canadian

border.

Canadians

Interference
(4)

interferences with Canadian trade

national f0'r one-third of all

on

namely,

—

u

s

factory

emplovment

investments

dominate

taxes, terms of. capital.. control)
vehicles,

95%;

(in

many

e.g.

-

petroleum,

forgotten. They fear there may 68%; mining and smelting, 54%;
be more to come, and, if impos - chemicals, 51%. '
tion of the oil import curbs is folThough U. S. capital isiwelh^ed shortly b^ a D. S. tariff comed, and. indeed required, to
hike or quota on lead and zinc, sustain rapid Canadian economic
growth,.many persons are wondering whether it might not be

a

Qthe

wlth

grievances

respect

coSd clnadian ^r-

" C°nCerned °" JU"e

1959

authorities

during

the

Korean

tions

were

imposed

on

Canadian,

as

age Canadian oil development at
one

time and

to

discourage it at

/

we

had better think about "going nity relations,

it alone." We would rather not
but such niggardly, short-sighted
policy causes one to pause a bit
and does strain relations unduly.
(3) Direct interference with
dents

are

worth reporting.

Ford

Motor

The

narenf

j^d -instructed
entertain

to

china

for

hberal and I
that

market
despite
the
substantial
extra costs involved. This would,
of course, require protection and
so restrictive policies, once begun,

Canada

was

the

editorial

of

think

of

the

S.

perfectly
law.

would

order

employment

substantial

existed.

Here

at

a

unemploy-

we

have

the

"foreign

domination"

company

located and incorporated

in Canada for

over

a

iNovemoei,
,

^

There is one field in which
w.e fee! ^ba
^01T!e fr}endly ad"
Y/CG ,ml^b^ .n?t. uGj
a"?lss*
•

f.ourury

not

mnrc

Canadian

the

expanded

in

Novemher

*

*-

'

Trade

gard

g

yGur econJml? P°S1"

"to

these

f

i,

branch Pianis u
pTantsIf

sensible SOm.? 0r a" °f 6 (fo"owmg sug"
and the ge. '°nS ^ere adopted'

more

been

under

Furthermore,
when

cars

much

U.

have

would

have

is

in

5Sto tu^t-

of

-currgpctPd

and

bv

Canada's policy to-

China

Minister

thP

pnrrirriprrp

Red

subsidiary

10 000

some

rph

,

You have established in Canada a
£/"eat many subsidiaries. We think
y°ur public relations in our

Canada

order

an

light trucks.
wara

its

of

thp

of

enmnanv

Comoanv

,

T

ex-

ports and imports: here three inci-

issue

—

a

25 years could

(1) Prom°te exports
Canadian subsidiaries including
components for use in parent
comPany plants,
^

Use

"(2)

many

as

Canadian

materials and component parts in

Canadian operations
be economically justified,
"(3)

Do

can

as

your

processing

more

of

not operate in terms of Canadian Canadian materials before export,
in
the

export interests because of "external control."

(b)
is

the

of

1952

Then

we

have

the

case

of

where this

can

be done

on

a

corn-

petitive basis,
"(4) Encourage and train Cana-

Frozen Red Shrimp.
Canada has imported

Since dian personnel to take an increasfood- ing part in the management and,
import restrictions, then it is clear stuffs from Red China. The ship- professional positions in subsidthat defense policy has changed ments dock at Vancouver and iary corporations.
since

the

dav.

rpvpu

vph^

in

then

move

eastward

via

trucks

,f,,i X

*

•

r*

a

ls
causes

on

serious harm to

a

(The Canadian delegate) to the
on

Trade and

States was considered
The document states:

essential,

'"It is agreed, therefore, that
our

two

governments

shall

co-

toms, detour over U. S. highways
just as U. S. trucks use Ontario

ob-

Canadian

oil

out

of

a

market

^

Glve

woifomori.

.manaSeme t

loca

kighwaysB bet,?,eeiL Btu£fa'o were l^^n^bsidTaries" °P ra
and <-anaulan suosioiaries.

x

amount of disposal. The main

new development

Detroit. Recently, the trucks

out that his dele- operate in all respects practicable, stopped at the U. S. border withT
ob3ect ^ genuine and to the extent of their re- out warning because the U, S.
patiently United
States
aid
programmes spective executive powers
to the Government
felt the hauling of
HtiypT* understandlng hy U. S. and the extension of help to end that the economic efforts of frozen .Red China Shrimp over
needy countries; indeed, within the two countries be coordinated
highways threatened U. S.
Understanding U. S Trade
the limits of its capabilities Can- for the common defense and that security.
Policies' '
ada bad a*so extended aid of this the production and resources of
At the present time this policy
C3)
Rut
m„r»h
„f
tUn
^ind' Further> in more general both countries be used for the has been reversed but again the
Canadian
romnipirit
current !ern?s his delegation had no ob- best combined results.'
inability and unpredictability of
dered by a comoiete lark nf ,1n~ 3ectlon to Unitfd States disposal
"This declaration is being in- U. S. actions creates antagonisms,
derstanding bv U S riti7Pn«
Pr°gran}nies which had the ef- terpreted in Washington now to
(c) Another incident involved a
specific U. S. Dolicies whirh con"
lncreasing consumption of mean that 'the best combined re- shipment of sesame seed from Red
ously encroach uoon or affopf
J,
colpmodl.ty m question by the suits' can be achieved by keeping China. Due to a shipping strike




looks

nati0n

by

considered

vulnerable

defense

just

could

certain6 inpvlfhl A r° Creat^ Tariffs Pointed
IhmflH tS be borne iS anX gation did not
snouid, I think, ?\

i

this

I-

+

good neighbor.
„

penalties!

rit 1
since me day, seven years ago, men move eastward via trucKs.
Carry out in Canada mora
17
■
X
e?,onoi?ic cooperation be- Because of a rather inadequate research work and undertake
mternational dumping tween Canada and the United highway, the trucks, sealed at cusdevelonment

I "Wheat Suroluses "

Geneva Agreement

x

pecially

ment

tw«

failure

which

be

means

time

exchange for local
currencies, it also makes a practice
of requiring the recipient country
to buy a stated quantity of its

buy.

tban ba.H

t^'

any

commodities in

^
Thls
y !uUr u11,; which

of

of oil

source

this program when the supplies.
As a result serious conUnited States gives away surplus sideration was given in Canada to
wheat, cotton, tobacco, or other selling Alberta oil in the Montreal

we

the

is

us

cally to exempt from a quota systern imposed for reasons of national
defense
the
one
foreign

Snalfa^-'Amedfaa CommXe, ^

selling wheat loses not only the "Montreal Star," Jan. 8, 1959:
5?
market satisfied by the
«If u. S. defense henceforth
SGP^ Sve-away, it also loses the chance to be conducted on the basis

throw

Though

Administration's

legitimate

of

Canadians

lUWcUU

program.

'ogistics finally led to their repeal as far

a

Under

petitor

troubles

"What

1958:

of surplus products in an
The result of the U. S. import than
unorthodox manner which dries quotas was to augment the already sales
up Canadian markets.
excessive
world
and
Canadian

i

stone's

a

■*

position of the marginal U. S. oil
producer."
"Journal of Commerce," Jan. 16,

posing

would hp riiffprpnf
nf
vI lS"
0^1! tf most of the remaining wheat which the
i
that
recipient
country
must

linr/ouarp " nL
nf

0

of course,

is,

live

a

because of) differences in
policy
suffer

Thus,
foreign

economic

of

^ndus^r^abza^on
further requirements from the would tend to snowball.
f+L andi- early 20tb century. United States. Canada, as a comTypical of press comment
of these

nl?mw!hSSo°^eIly tensitivf>

of the strike in Vancouver.

Ko

the

fHP1C!aY'
Ail
All

com-

^ « egnomjctfto-tributary tries w,i be frustr^mg indeed so moregdesirable to rlfk slowing
Indeed
Z-ini
remed "
market is con-. dowft.;growlh..
preclude the
b® pmeLenlv'
Offile
These views
official Canadian chance of becoming an economic
rean emergency
the Office: of
Ihese vie^ offlcml Canadian satelln especially in view of the
W"h^|s
interferences - indicated

Alberta

inferiority Law 480, the U. S. has been dis- another.

strong determination

a

maintain

a

Canadian

forced to pay extensive
charges until the end

pany

was
demurrage

East

5
' esP?cially
tb effect of the long-range planSt Coast and the Midwest umg of Canada s export indus-

on ?xpT?r

superior as well

in

we

.

the

and

truck

The U. S.

«ave original reason forlo"g after key Canadian industries,
'"V Peking them is motor

.

1A1_.

ditions' °£ US t0 maintain its tra" ™mp.laint- Tkeyears under Public
fact is, however,
that
recent
So

~

refused

the baslc economic the

~

Protdeni here is that Canada has
devf'°Ped <\rude„ o'1 Production
faclllties, under U. S. encouragemen^ weR in t^cess
Canadian
requirements, pius, we must rely

Middle East and Venemarketing skill, better product, zuelan oil. National defense, thereetc., there would be no cause for fore, supports a policy to encour-

dltl0ns-

~

by

case, at least,

U., S.

.

one-third

Middle

as

tranship

episodes despite later re- Porations are.-' 1959' P- 29> and exceptional pri- cantations inculcate a feeling that
(a) Demands for stock partici-\
TT
orities for steel P^e, oil-well since we cannot rely on U. S. pation by Canadians.
*hm7t drilling machinery and other policy, which is so often made ac(b) Hiring of Canadians in key
pwp
rSat w e(luiPment destined for Canadian cording to the economic health of positions.
AmpHran Vnm
oil fields were g^nted by U. S. politically influential industries,!
(c) More attention to commu-

L-anaaian-Amencan com-

keep

in

far

was

benefits

to

superior.

treatment

same

^

rNp

cw

policy

em" '
^
campaign.
Thus U. S. national
justify this we tend
(b) Tbe U. S. as a wealthier na- defense interests were strongly in
to be hyper-critical.
tion can more readily afford to faVor of rapid development of
Also, remember that our basic give away or subsidize wheat sales Canadian oil productive capacity
institutions
are
British
and
we
abroad. Thus, what seems to be during the Korean emergency.
remain convinced that
politically econommaHy sensible policy for in 1957 and 1958, the flexibility
and, to a large extent, culturally tbe
U. S. has a tremendously 0f the national defense argument
modified
versions
of
these
are
adverse impact upon Canada.
proved itself when import restric-

out of your

brace

Canadian oil is to be accorded the

and

under bond to Canada.

period For it would

same

Ir12 2% nadian crude from

^tp^Pvnnrt1rnn^mnt1^
nifr
wWo^
^ fotS
4

comments

some

Seattle

appear that in1 this considerable anger over such inwhat is really being Hdents
•
m miHion bushels and surpiuses defended
by this artificial Fed- ciaenls' :
piled up. ["Wheat Surpluses," op. eral restriction is the competitive
Subtle Domestic Political

t0J ?

States

united

—^

it

in

agreement

of

?ot countin« the strained rela- port quotas,

aver-

9n

production

Canadian

annuai

{he

57%

or

million

457

simply

stations.

we

in

fmasZ
pS od domestc tl0"S/

JJnoJL
age

of 619

average

annually,

bushed

don't and won't, at least not com-

pletely..

domestic

states absorbed an

f

defensive

cheaper to abandon

to

much larger

is

the

Canada

ket in

example:

For

markets.

0f

Wheat

vulnerable to any

Very

are

statistics provide
the
most striking illustration of
the reiatively greater importance

in

the

~

Canada's exports fell from 309 to

Thus,

,

'^o^ftrade

many

the U

the

on

and

radio

own

tune

is

^

XUldsebduc«vee1uyret0ofUUUmsb

to

It

bushels

^ve these and n our own ^

R
problems

way.
ous

remember that

so,

always

are

is

Tt

suipluses.

by

plagued

countries

our

cumins

hv

retaTn ^h^se

we

ferocity but, if

as

and

Britain

Sf Ofterf
we

do

of
Generally, we tend
of
halfway house

customs

our

to

the

^

0100

tj52 million bushels. Thus

I

that

Wheat—both

)

lunc in °/ 1"n
toV."- Zt
dn"cl

carry

to

United

the

from

in

TV and

own

statistics

.,1*

sets

than

and

mams

,

bUVtl

s

of program-

TV'

ducts. This was evidenced in ex-

simply ^tates" In markets fnea[h' United fhe harm done a+m Canada by that
p y
thGk*YG
convinced this
domestic
the United carided ou5' 1
to

is
is

present

an<T variety

Canadian

Thus

The

including
U.S. A.

in

with
Witn

amount

hxim

U. S. drugstore.
of

the

uJ

^eco- canf to Canada than to the U. S.

newsstands

our

distinguish

the

textbooks

operate

can

Thus,

nomically.

me

legitimate pol °y
and

few all-Canadian mag-

are

azines

difficult,

is

signed

ports rose lrom 347 t0 547 m,ih0n the whole import-cutting

are

even

in

O ICI6S tbe exp0rjs states wasand flour 1950."
promot- Illustrative
-ng United
0f wheat

document

e

i-ei

UI

0^

initioRetain"!g Cultural Iden ity
Cultuial Identity

There

t

L

yea"

n

media

cies, barter deals and tied sales, who

.

interpretation probthe minds of those

an

not

v/iiv-ivu

^

worth it.

is

11

I.

ably

with such determination and in appearing in the U. S. press are
such volume that it caused great the following:
frequently get out of damage to Canada s normal com-Wall Street Journal," Jan. 3,
they
haye
jn
recent merCial marketing of these pro- 1958: "But in the new cutback,

^

nntirmolicfir.

our

sub- cheapest:

export

When these are
inherent sensitivity,

an

tempers

nationalistic nnrlhUWHr Hilt \A7P
endeav'or but we

AI11,

such Aas

sidization, sales for local curren-

affairs.

to

added

inter-

national rather than inter-region-

techniques

i

n

I
r

V^IIIWI

internal

4

-netae

,f

Without

i

Thursday, September 24, 1959

jection was that, by a variety of where it has proved to be the quested permission to unload at

i

<

■

...

in

Vancouver,

Canadian

re-

g

"(7) Offer Canadians opportunities to buy equity stocks in the
subsidiary companies operating m
Canada.
"(8) Encourage branch plants to

participate more fully in the lifa
of their communities."
Recently
were

your

injected

antitrust

into

Canada

lawg
via

u. S. subsidiaries though the subsidiaries

were

operating in accord

with Canadian laws and Canadian

commercial policy.
of Justice angrily

The Minister
declared that?

Number 5884

Volume 190

"such

is

intereference

.

.

-

•'

Defense

American

Norh

U.

area
of
Defense.
The

needs

S.

Canada as

"shield"

a

maintain equipment

and

needs

and

other forces on

to

Canadian soil
deter any surprise

and

detect

to

no

basic

and

a

as

Bank and Insurance Stocks

Beyond this there

awareness

that Canada is

the

in

American

North

is

in the U. S.

anything but

the

U.

S.

BY ARTHUR

Louise

Bullwinkel, of Tripp &
Co., Inc., has been elected Presi¬
dent
of
The
Municipal
Bond

benefit of immediate admission to
the union.
Indeed, it was only
10 or 12 years ago that a U. S.
Congressman argued that Britain
should sell Canada to the U. S. to

This
We

pay off her war debts.
Bruce
S. On Hutchinson, well-known Canadian
needs author touring in the U. S. rethe U. S. because the Canadian cently, reported that "the brutal
military establishment could not fact is that there is simply no
possibly defend against (or even American opinion about Canada,
delay seriously) an attack.
It is hardly an exaggeration to
Until
last March Canada felt "ill the
problem of Canadian-

Maginot Line of the U.
the
other
hand,
Canada
the

American relationships an excess
ot friendship which breeds an
fense through production of the ?xc?ss
of well-meant ignorance.
Avro Arrow
a
1,500 m. p. h.
11 the caset f somf *°l?.lg" n®~
delta wing jet interceptor-which
'°f-<><£ statesmen s difficulty is
would be used by both U. S. and
talk. through a hard stone wall
Canadian
forces
The Canadian °* hostility.
In. the case of the
government spent $400 million on + S. it is to talk thiough a soft,
its
development. In the fall of thick,
impervious insulation of
1957, after three years of work goodwill which smothers facts in
employing 15,000 workers steadily, anection.
flying model was put into the
Canadians thmk they know the
major con-

that she could make a

North American de-

to

Elect New Officers

WALLACE

the

that we deserve

Soviet attack. Canada has become

tribution

Mun. Bond Women

a cozy

completely northern companion so similar to

Our two nations are

interdependent

year-round,

excellent

British colony.

....

well

are

the bulk

Week

on

our

—

Women's Club

Insurance Stocks

of New York, suc¬
Josephine M. Rodd, of
Goldman, Sachs & Co., it has been

ceeding

out of the month of September, and

way

of the

fire-casualty insurance earnings for the first half
While we cannot call the overall showing
good, it does begin to hold out promise of better times to come;
and when the full year's results are at hand we feel that there

announced.

finally available.

are

will

be

fairly good improvement

a

The

this

for

reason

the

The

one.

unusual loss

an

industry does

April, but rather for

good

as

fact, principally, that there

that had

over

1958.

experience, such
not

look

1958's, this

as

two

were

for

due to

was

months out of the six

as

made the half

a poor

repetition of March and
normal results from here on.

more

a

We have added to

our list Hartford Steam Boiler & Inspection
will be well for investors
it by. Several large-units, notably Hartford Fire, are
included, as their figures have not been published.

the stock is acquiring stature, and it

as

to

not
not

pass

First Half 1959

Earnings
6-30-59

Adams, McEntee & Co., Inc.
Jeannette
F.
Boondas,
of
Gregory & Sons, and Constance A.
Hay,
of
Shields
&
Co.,
were

elected
Combined

^Adjusted
Underwrit.

Liquid.

Dorothy Root, of F. S. Smithers
Co., was named Vice-President,
succeeding Estelle M. Hanvey, of
Wood,
Struthers
&
Co.
and >
Maureen Gough, of J. J. Kenny
Co., was elected Treasurer, suc¬
ceeding Angela P. Policritti, of
The
First
National
City
Bank.'
Norma
C.
Detlef,
of
Lehman
Brothers, was elected Secretary,
succeeding Jeanne Skippon,
of
&

expectation is that while these first half

earnings mostly are not quite

-

Net

^Federal

Invest.

Loss &

Exp.

Value

Result

Income

Taxes

Earnings

$

$

$

$

Jeanne

and

Ratio

$

%

U. S. knows little
In the final analymade the Arrow
basis of many misobsolescent. In March of last year, takes in U. S. policy.
But U. S.
the
government announced the ignorance of Canada is quite unend of all work on the Arrow and derstandable,
however lamentthat Canada
would rely on the able. It stems from two facts—
Bomarc guided missiles to be pur- Canadians
are p r o b ably the
chated in the U. S. Thus instead world's worst advertisers and the
of the Arrow helping our balance U.
S. is far more important to
The

air

of

Soviet U. S. but the
which about Canada.
technologically sis this is the

the
Sputnik

day

same

launched

liance

S., re-

with the U.

payments

Bomarc

the

on

would
serious,
all the

Aetna

to

fill

im-

portant intangible." (p. 20)
Our position as a military satellite came all too clearly to the
be

"To

mented:

a

and control
warheads and long-range
Canada possesses and
to

necessary

nuclear
missiles

.

Power.

.

possess

.

neither.

rontrols

we

magazine laPower it is

Maclean's

As

fore.

.

.

We

Once the

.

count

cannot

are

on

a

non-

begins
having any
war

1.65

+ 0.02

0.48

1.45

2.30

—0.67

3.08

41.78

1.06

0.89

—0.66

1.27

62.81

1.46

1.05

—1.04

1.47

87.7

76.51

—0.27

2.53

+ 2.38

4.64

100.6
94.4

Federal
Fidel.

its outcome
than the State of Monaco."
This enhances our feeling of inmore

influence

and

ferioritv
ness.

If

the

on

consequent touchiU. S. wants closer

integration, a new attitoward
cooperation
with

military
tude

Canada is
a

essential and especially

Canada,

remind

(I

View

Canadian

demands

should

it

realized

once

oil.)

'
,
Summarized

foregoing suggests that Ca-

new

category of

be considered

relation.

you

a

Canada
does
not
stand in a position toward us of
a "foreign" country.
By no means
relationship.

purchase

again cf the problem of
_

"Canadian and U. S. interdependence

defense in

greater willingness to

mater;als for our joint

study of the

Havs reported after a
problem that:

concept

The
the

in

to

be
of

of

and

united through a

different

capabilities,

banc agreement

and aspirations, and
nadians
have
some
justifiable voluntarily joined in enterprises,
cause for complaint. The totality
domestic and foreign, calcu'ated
of the above creates a somewhaT'to strengthen the chances for a
adverse
vision of the U. S.-- by world
reflecting the:r common
Canadians. In terms of trade pol- values.
This is, the challenge for
icv. we have become pretty leary
Canadian-U. SV'relatiohs " '
The

of

having

too

eggs

many

in the

seeking to
diversify our exports and imports
to
a
much greater extent. ,This
may prove costly but the long-run
gains are probably worth the effort, especially if it causes greater
awareness
of Canadian problems
U.

S.

basket

and

are

by the U. S. But we are inevitably
destined to remain each other's

values

basic questions there
close agreement and coop4rati0n. It is the "little" things,
unthinking annoyances, which
create frictions.
These we must
minimize if we are to achieve the
fu^ results of our inevitable inQn

iarge,

-ls prefty

terdependence.

game

customers

abound

so

and

the

1.65

2.67

—0.39

55.53

—1.51

1.40

—0.01

—0.12

—0.81

1.97

—0.01

1.15

—0.60

1.86

+ 0.02

1.28

115.17

—0.65

2.57

+ 0.06

1.98

Cas.

45.74

—0.59

1.41

—0.12

0.82

101.7

51.56

—0.81

1.03

+ 0.03

0.25

107.4

Home

Insur.__

__

N.

Maryland
Merchants

___

New

w

p

a

RlirLo

skiing is Corp.

Opens

KEY

Elias

WEST, Fla. —Jacob M
engaging in a securities

is

business

from

offices

613 %

at

4.09

5.58

97.4

,2.09

0.09

105.1

—2.44

107.8

2.82

98.9

Lane Pastor Opens

0.89

99.5

(Special to The Financial Chronicle)

80.45

Northern

—6.55

4.11

100.99

0.63

2.19

67.32

0.45

1.32

104.37

0.29

2.02

161.81

—2.60

3.16

_

Ins.___
_____

__

+ 0.02

2.31

105.7

0.90

__

Duval

99.3

0.56

--

100.8

36.75

—0.24

*1.14

Fire-

46.10

0.56

1.13

—0.01

1.68

42.07

1.75

0,90

—1.08

1.57

50.18

0.62

*1.09

—0.47

1.24

97.6

Standard Acc._

88.45

—0.08

2.84

«•

2.76

100.0

U. S. F. & G.__

47.60

0.02

1.32

1.34

TAMPA,

100.0

Pastor is
securities business

Fla.—Lane

engaging in

80.3

Security

Street.

a

96.9

Sur.

Prov.-Wash.
Paul

St.

Seaboard

__

__

»

—

from offices at 3216 Tacon Street.

Forms Fred

Berney Co,

(Special to The Financial Chronicle)

MIAMI, Fla.—Federic S. Ber¬
is engaging in a securities

ney
provision for dividends on the preferred stock.
liability on unrealized equities.
$Plus

*After

contingent

for

minus,

a

Not

writing

business

+No adjustment made
indicates credit;

we

offices

from

Way under the firm name
of Fred S. Berney Co.

Under¬
minus signs in the Net

have fewer minus signs in the Adjusted

column, but we also see fewer

Another important observation to be made is
that Federal taxes did not hit the fire-casualty insurance compa¬
nies. Here are 29 representative companies; seven had tax credits
for the half year, and ten others incurred no tax liability what¬
ever.
Obviously, in these cases their poor results in underwriting
just about offset their investment income figures.
It will be remembered that for a great majority of units in
this field, the tax take on investment income is usually small
v-e^ause t^ev are tax^d tat 52%. let us say) on only 15% of the
income that they derive from dividends of domestic corporations.
Of course, the interest arising from state and municipal bonds is
tax-free, too. An insurance company feels the weight of income
taxes when its statutory results are highly favorable.

Robinson Forms Co.

Earnings column.

(Special to The Financial Chronicle)

POMPANO BEACH,
in

fices at 30 Northeast 27th Avenue
under

the

firm

but it will be well to keep
this in view of the current stock market
set-back develops momentum, it can make

fingers crossed on
If this market

decline.

serious inroads'On

and

INSURANCE
STOCKS

business.

But

over

the years,

a

stock,

declining equity market can hardly be expected

Members

New York Stock Exchange

and

regular

the

cash

has announced a 3% divi¬
disbursement.

The

stock

had been paid in 1956, 1957, and 1958.

Telephone:
Bell

SCARSDALE, N. Y.—Southgate
been formed with

offices at 6 Archer Lane

to engage

securities business.

Partners

in

a

are

Jacob J. Katz, Herman

Elmer L.

and

Kerbel,

Litwin, Fred S. Weitzner,

Jack

Zpies.

T.

BArclay 7-3500

1-1248-49

NY

Teletype

Specialists in Bank Stocks

AND

NATIONAL

BANK

With R. W. Newton Co.
(Special to The Financial Chronicle)

LITTLETON, Colo.—Charles E.
Coleman
with

R.

has
W.

become

Newton

&

associated

Co.,

26

London

and Columbine Securities

Denver.

Corp. of

Ltd.

Office:

BISHOPSGATE, LONDON,

E.C.S

Branches

54 PARLIAMENT

STREET, S.W.I

13 ST. JAMES'S

SQUARE, S.W.I

Rd.,

Nairobi;

13 St. James's Sq.;

Ins.

Govt.

54 Parliament

Dept.:

St.; Travel Dept.: 13 St. James's Sq.; Ineome
Tax Depts.:
54 Parliament St. St
13 St. James's Sq.

ADEN, KENYA,
SOMALILAND

Bankers to the Government in:

UGANDA,

ZANZIBAR

&

PROTECTORATE

1785

Shepperd Street. He was formerly
with
Diversified
Securities, Inc.

GRINDLAYS

LIMITED

Amalgamating National Bank of India
and Grindlays Bank Ltd.

Trustee Depts.:

Southgate Associates
has

Stock Exchange

Members American

120 BROADWAY, NEW YORK 5, N.

Head

I

Associates

Quoted

—

Laird, BrssELL & Meeds

weight coming from the investment end of the

Security Insurance of New Haven
in

Sold
I

help insurance stock prices.

to

—

insurance stock prices

follow (or may we say, accompany) underwriting

results, with less

Bought

investment holdings.

speaking,

Generally
have tended to

Forster

BANK
#

provement in the

appreciation was somewhat higher, too,

of

name

Company.

Robinson and

Industry-wise, automobile results for the first half of this year
to plague the carriers, but there was some small im¬

loss and expense ratio. If March and April
losses had not been as severe as the immediately preceding sev¬
eral months in that quarter, the first half would have been suf¬
ficiently favorable to lend more promise for the calendar year.
Nevertheless, it is our opinion that the trend has likely turned for
the better.
Investment income was modestly higher,
Portfolio

engaging
of¬

business from

securities

a

Fla.—Rob¬

Robinson is

Forster

ert

continued

our

2377

at

Coral

sign

debit.

only do

dividend was the same as
t-

J. M. Elias

(Special to The Financial Chronicle)

1.49

Hamp...

Phoenix

40

at

—2.00

Amst.

Pacific

offices

65.40

Union___

New

with

182.19

National
Natl.

formed

102.1

Amer...

Co.

serve

Exchange Place, New York City,
to engage in a securities business.

102.1

A.

Ins.__

Falls

Ins.

been

103.2

92.37

retiring
to

104.6

80.68

The

continue

Syndications Clearance has

90.4

83.21

will

Syndications Clearance

97.3

3.93

Glens

I




_

Great

dend

foresee no
rorm c.. /■*. ourna int.
drastic trade shifts away from the
WASHINGTON, D. C. — E. A.
U. S. despite the Prime Minister's Burka, Inc. has been formed with
announcement
during
the
1958 offices at 1500 Massachusetts Aveelection.
nue, N. W., to engage in a securiWhat "vision" do U. S. citizens ties business.
Officers are E. A.
have of Canada?
Generally, we Burka, President, and Joseph Levi,
are
still looked upon as "hewers Secretary-Treasurer.
Mr. Burka
of wood and drawers of water," as was
formerly with Sade & Co.
a vast vacationland where fish and
Mr. Levi was with the Stanford
best

•

on

Dep.

Gen. Re

poor

interest

best

nations

background

a

is that of free and

both countries

Doweri'ul

as

&

Fire. Fund

,

Kurtzmann.

the Board for another year.

105.7

—1.19

our

Some progress is being made,
Recently Congressmen Coffin and

on

of

for two years,

99.3

—

84.97

If North American solidar-

standing.

President

101.6

2.08

—

80.60

as

cf Canada. The dream was an

Doris

102.4

■

Ins

(the size difference),

joint defense efforts.
We
have entered a New Era of In¬
terdependence due to the Soviet
menace. This has already created
additional problems and frictions.
Mutual understanding is the only
way to prevent serious difficulties. Fortunately we have a large
fund of good will—let us not dissipate this by senseless
dents' ; let us help each other
toward a better mutual undei-

0.33

+ 0.06

Casualty

of .June

grandizement. It marked the beginning of a reshaping of Canadian thinking about the defense

Ship.

104.19

105.4

0.55

1.01

Coiit.

the "Atlantic ity is essential from a military
1959 pointed point of view, we had better take
out, this "was a rude awakening steps to patch up many unnecesfrom
a
dream of industrial ag- sary grievances else we jeopardize
Furthermore,

Monthly"

Ins.

&

—0.60

2.41

1.61

—0.38

of the Board

serve

Skippon was elected
unexpired term of

the

0.63

3.45

—1.07

35.67

__

Cont.

Canada than Canada is to the U. S.

ment.

problem.

—4.11

67.34

American
Bank.

Many of the frictions between
what
would
happen to
our two countries can be softened
skilled technicians?
h
by better Canadian sales effort to
Though the U. S. agreed to re- explain ourselves as well as less
lax
the "Buy
American" policy flexibility
in interpreting "naand purchase raw materials and tional security," etc. and less givperhaps some Bomarc components ing in to special interest groups
in Canada, this does not solve the (such as oil) by the U. S. Governit. Perhaps just as

worsen

133.53

Ins.____

Agricultural

members

Governors to

a

Union

35

(1271)

The Commercial and Financial Chronicle

than

more

acceptable "

is fitting and

.

Branches

INDIA, PAKISTAN,

TANGANYIKA,
ADEN,

in:

CEYLON, BURMA, KENYA,
ZANZIBAR,

UGANDA,

SOMALILAND PROTECTORATE,
AND SOUTHERN RHODESIA

NORTHERN

36

The Commercial and Financial Chronicle

(1272)

Continued from page

ELY

OWEN

BY

$5,000 to the cost for each well.)

2

Furthermore, unlike pumping,

aliy increasing surge to $5,181,009
while net income expanded oyer

lift

twenty-one (21) times to $450,000 or 8.6% of saies. This record

Oregon

California

Power,

with

a

hydroelectric

company

nual

of $28 million, sup¬

revenues

an¬

plies electricity to a population of
some
250,000 in 72 communities
and rural areas in Klamath, Jack¬

Josephone, Lake and Douglas
Counties, in Oregon, and Siskiyou,
Modoc,
Del. Norte, Trinity and
son,

About

of

77%

de¬

are

revenues

Oregon and 23% from

from

rived

California.

.in

Counties

Shasta

California. .1

.

_

industries in the terri¬
are lumbering, fruit¬
growing, farming and raising of
livestock, and gold mining. Resi¬
Major

tory served

dential

for

47%

23%

of

7%

(including

with

contract

The

16%

about

under a special
Reynolds Metals).

company's

rates are among
country, resi¬

the

in

lowest

the

commercial

revenues,

industrial

and

account

sales

rural

and

1.66c

dential rates averaging only

kwh last year; annual usage
of 8,633 kwh is over 2Vz times as
large as the national average.
per

operation at the beginning of
year. This plant and the two
mines which supply it represent
the first extensive uranium devel¬
in

opened

famous Mount Shasta

on

destined

Earnings

have
amount¬

net property

on

some

years,

ing to

only 4.6% last year on a
year-end rate base.
The percent
earned
on
invested
capital was
4.4%. There is no present indica¬
tion that the company expects to
ask for a rate increase,
but the
low

rate

of

become

to

would

Tourism and recrea¬

in the West-.

such

rant

developing mar¬
which will
stabilizing income for the
basic industry through the

has been given to
aid

in

area's

establishment

mode, resulting in renewed

been

interest

in

so

paper industry in locating in
company's service area.

and
the

Air

Base

Klamath

at

200,000

had to

million

G.

E.

the

at

or

&

reflected a
charge under

for

firm

tract

contract

a

which expires
Presumably this con¬

deemed

was

the

to

necessary

during

company

bad

hydro years since it has no steam
generating capacity. ' YYY \
Y
Interchange of power with Bon¬
neville and

few industrial

a

com¬

panies netted the company about
89

million

unit

cost

additional

At the end of

by

combined

kwh,

1958

the

of

about

wholesale
1958 the

of

350,000,

business.

had a
nearly
a

peak

excluding

In

in

Oregon

commercial

was

operation,

adding about 80,000 kw capacity.
Preliminary
work
on
various
hydro
located
on
the
projects
Klamath and McCloud Rivers will
be continued during
1959; the un¬

developed
these

potential

power

rivers

two

is

on

estimated

to

be 435,400 kw.

The

will

year

program

company's agriculture depart¬
ment has been successful in im¬

probably

The

years.

construction

•

loss of interest
earnings for the 12
May 31 were $1.93

amounted

probably

interest credit

to

27c

decline

last
a

year

share

rather

on

from the bottom of the
1957-58
decline has been rapid

covery

and

months

first
registered a

for the

sales

intensive:

five

of

1959

15% increase and revenues gained

However, mild and dry

10%.

over

be

benefit

in

excellent

weather

during .the

by increased sales since it

could

take

firm

cific

Gas

(if

much,

if any,

respect
able

to

there

power

from

needed)
extra
are

cost.

several

developments.

In

Pa¬

without
In

this

favor¬

the

before

of gas

case

is

produces
of

oil

field's

a

4c

lift,
nor¬

the

provided

of

barrel

per

total

fluid

as

compared to 12c for the rod pump,
economical

most

form

energy

fields

reduced hydro sup¬
adversely affecting net

heating,- and

thus

ply

income.
California

quoted

Oregon

the

in

the

over-

around

market

Power

and

34

is

counter

-

$1.60

pays

yield 4.7%.. The common divi¬
dend last year ,was free of Fed¬

to.

eral

taxes

income

due

largely to
accelerated amortization of hydro
The

projects.
that

in

will
and

dividends

the

stock will

be

also

be

I960;

1960

beyond

years

of

1959

estimates

comnany

dividends

free

the

on

tax-

the
portion

for

some

common

non-taxable

to

the

1963, the last year of amor¬
tization under Necessity Certifi¬

year

cates.

Y.

.

Y

•'

'

The stock is currently selling at
about

The
33%,

earnings.

ratio

approximates
book value $26.

equity
and

times

17.6

.

CORRECTION—El

tric's

present

$1.16,

$1

not

dividend
rate
is
as
reported in the

which

article

in
column in the Sept. 10 issue.
rate

appeared

raised from $1

was

15

this
The

with the

payment.

Howard Gould
Gould,

New York Stock
away

member of the

Exchange, passed

Sept. 13.

Gaines
in

Elder

passed

Gwathmey, Sr0

ground.
Now, secondary
which works by supply¬

ing

artificial

Co., New York City,
on Sept. 14.

away

Forms Gen. Inv.

Planning

TARRYTOWN, N. Y.—Dr. Peter
Horvath is engaging in a secu¬
business

Oregon
the
Lakeview
Mining
Comnany completed its $3 million
plant and was

Park

Avenue,

name

of

Planning Co.

from

offices

1

at

11

firm

the

under

General

Investment
.

through

energy

-

re-

injection of natural gas, water, or

liquified

petroleum

into

gas

field's
six

At

oil.

barrels

ondary

ary

is

of

one

produced

will

out of

by

sec¬

and experts esti¬
rise to one

recovery,

this

mate
out

present

ceded

of

wells.

soon

that

this

found in the

are

con¬

will

play an
increasingly important role in the
U. S. Oil picture.

the

producing formation, can in many
caseseconomically
recover
an
additional
25%
or
more
of
a

lift systems have ca¬
handling crude petro¬

Gas

(4)

for

pacity
leum

volumes

ordinary

area

far

beyond that of

Many Gulf Coast
wells on gas lift operation raise
4,000 barrels of fluid per day, an
accomplishment which would be
impossible
by
most
pumping
pumps.

methods.

three.

factors

forcing

are

the

industry to emphasize second¬
recovery.
Basically, it is be¬

(5)

Formation

which

sand

produced along with oil
wells

is

less

much

in

is

some

problem
well is produced with gas
a

coming increasingly difficult and when a
constantly more expensive to find lift than when pumped.
oil;
Therefore,
the practice of
Cameo's
truly exceptional
getting maximum economic re¬ growth slowed in fiscal 1958 with
covery from proven oil reservoirs the general oil
industry due to the
is as worthwhile as the finding of world wide excess of crude oil
new
fields
and much cheaper. caused
by the general business
addition, most oil produced by
secondary recovery is not sub¬
ject to prorationing.
Further, if
stimulus is. applied to presently'
profitable
fields
simply
to
in¬
the rate of flow—state reg¬

crease

ulatory agencies generally award
production bonus?
•
- •

a

Cameo's

is

success

tremendous

the

size
for

market

exploiting

and

breadth

their

ment and service is underlined by
Cameo's

three

hundred

and

fifty
(350)
oil
company
customers.
These include almost every major
oil

company

including

Amerada,"

Atlantic

Gulf

recession coupled with expanded
supplies of foreign crude due to
the reopening of the Suez Canal.
However, I believe that this tem¬
porary slump has been substan¬
tially over-discounted in the pres¬

Refinins, Cities Service,
Oil,
Phillips
Petroleum,
Sun Oil, and Texaco.

slump
of
oil
service
and
equipment stocks. Cameo comrr^on
is now selling at less than one-half
of

its

July

1957

In

the

1959

high

•'Y-

-

of
"

■

$29
'

per

_

industry has
gradually
been
improving
the
over
supply conditions seen in
1958.' Cameo's
management has
used

this lull in the oil industry's

progress
ment

finalize

to

the

develop¬

and

Shell Oil,

other
much

customer
as

4%

of

accounts

sales."

It

for

is

as

con¬

force.
sent

of

Two

these

tools

repre¬

major

technological break¬
stantly striving to improve
its throughs.
One
"Magna set,"
a
competitive position. While def¬ series of magnetically controlled
inite
figures are not available, tools to place in an oil well for
Cameo's
management
believes various flow techniques, may dou¬
they account for between 43% and ble
the
sales
of
the
company
47%
of
total ~ sales
of
gas
lift within three years. Another is a
equipment, as compared with 40%
in September, 1955, and 25% five
years
ago.
Their wire line and
entered into

is

in

new

safety

value

"storm
shut off
weils in case of .an accident such
as fires or explosions.
choke"

to

or

"automatically

very

1954

rapidly.
These six
new
products were
Among the secondary recovery introduced
at
the
International
methods including water flooding, Oil Show
in Tulsa in May 1959.
gas lift equipment has major com¬ The
reception was
far
beyond
petitive advantages. While an im¬ Cameo's hopes and at least two
pressive
number of wells have of the tools will be
major profit
been equipped for gas lift opera¬
contributors in fiscal 1960.
tion during
the postwar period,
The
key
to Cameo's
surging
the figure does not begin to rep¬
progress is held by the manage¬
expanding

the number of wells which

could

be

so

equipped.

that

It

can

be

increasing
proportion of wells will be placed
expected
gas

an

ever

lift, for the following

rea¬

(1)

lift

equipment is far
cheaper for the oil operator than
pumping equipment.
For exam¬
ple, in placing a normal 7,000 foot
well

Gas

artificial

pansion

making profits in

ment team headed

Harold

dent.
is

McGowen,

A clue

breadth
that

by 39-year-old

of
the

as

Jr.,

Presi¬

as

to the caliber and

EurcM

operation headquartered iri
Belfast, Northern Ireland, which

will

service

other

areas

than

the

U. S., Canada, and Mexico.
This
operation was initiated because
oil

numerous

companies operating
sterling area particularly
eager to buy Cameo's prod¬

in

the

are

ucts for pound sterling but are
reluctant, or unable, to make dol¬
lar outlays for the
purpose. Loca¬
,

tion of their

manufacturing

tion within the
that., profits
converted

sterling

can" be

into

opera¬

area means

immediately

dollars

and

used

by Cameo elsewhere, if desired,
Significant .profits are expected,
here is fiscal

1960.

I believe that Cameo's net

its

increased

cents per

July

about

prof-?

25%

to

75

share in the year ending
1959.
Preliminary estir

31,

mates for 1960 indicate net profits
of $1.20

reach
000

an

65%

growth

sales

a

should

year.

believe

I

share,

per

this

over

Cameo's

annuql rate of $10,000,net profits $1,000,000, by

and

the end of fiscal 1961.
be

than

more

sales

of

1958,
the

the

net

than

more

quadruple
net
profit of $232,000.
imposing target to shoot

1958

This is

This would

double

$4,796,000, made in fiscal

and
an

for, but I believe Cameo, Inc. has
the

management

aim

for

such

and

goals

products to
the now

in

improving oil industry. In addi¬
tion, Cameo's exceptionally strong
financial condition gives them an
excellent

base

which

on

to

ex¬

pand.
Holders

the

of

384,000

shares

of

Cameo common stock, includ¬
ing 75,000 shares held by Ameri¬
Research

can

&

Development

Corp., have

reason

future

confidence.

with

to look

the

to

believe

I

they own one of the prime capital
appreciation common stocks avail¬
able

today.

Florida Palm-Aire Corp.
Common Stock Offered

Cameo's
President

Public

management
and

his

two

top Vice-Presidents have all com¬
pleted the Advance Management
Program at the Harvard Graduate
School of Business Administration
in the last two years.

Mr.

McGowen

stock at

common

share

445,000

of

price of $4

a

made

per

Sept. 24 by
an underwriting group headed by
Hardy & Co. The shares are being
was

offered

as

a

on

speculation.'

-

,

') f

Net proceeds from the

financing,
together-. with otfrer funds, will
be applied by the company to¬
ward the /cost of carrying out a
program
of development
of its
real estate properties located in
Boca
Raton, Del Ray, Pompano
Beach

Palm

and

Florida.

Beach

County,

Y;Y

Florida

Palm-Aire

organized

under

Florida

June

on

Corp.

the

23,

was

laws

of

for the

1959

principal purposes of engaging in
the ourchase and sale of undevel¬

oped real property. Executive of¬
fices of the company are located,
in

Pompano Beach, Fla. The com¬
intends to develop and sub¬

pany

divide
into

the

lots

majority

for

except

for

pected

to

its

of

residential

land

purposes,

sections

immediately
adjoining highways which are ex¬
business

be

subdivided

sites

property

or

into

shop¬

ping centers.

Upon completion of the current

financing,
tion

of

outstanding capitaliza¬

the

will

company

consist

$1,795,840 of long-term debt
and
930,000 shares of common
stock, $1 par value.

Join B. C.
(Special to The

ST.

now

sees

Christopher

Financial Chronicle)

LOUIS, Mo.—John L. Over-

wards

that

offering

shares of Florida Palm-Aire Corp.

stall

about

ad¬

started.""

new

of

lift,

adding

its

ex-*

In

pean

Jr.,

mann,

compressors

com-

products and

new

of present lines.
Cameo
has' just

dition,

Mr.
pumping
McGowen's
forecasts
of
equipment costs between $15,000 Cameo's business and profits have
and $30,000
(depending on type been remarkably accurate in the
of pump) as compared to $1,500past, particularly during the re¬
$4,000 for gas lift equipment.
(If
cent recession.
Therefore, I be¬
high pressure gas is not available
in the field, it is necessary to in¬ lieve it is
extremely significant
on

partially from the

bination of

oil

marketing of six basic
new
products while
raising
Cameo's balance is indicated by. Cameo's
net
profits about 25%.
the fact that their three principal All these devices are
patent pro¬
customers account for about 10%,
tected
devices suitable for sales
9%, and 8% of Cameo's sales. No and sei-vice by Cameo's sales
,

will result

ent

equip-' share.'

sons:

Gwathmey, Sr., partner
&

deflected

Tidelands, and it is generally

the

on

Gaines

in

in

recovery

resent

Howard

equipment

Many such wells

tool business

Elec-

Paso

with

abandoned

just

were

three-fourths of the oil still down

of

rities




nature's pri¬
only

cases

one-fourth

the

eastern

uranium reduction

most

pressure

about

months

12

May 31 both retarded the
of electric energy for space-

will

condition

In

mary

ended

sharply

Obviously the company should

installation

are

of operation

equipment is used in
mally less. The operating cost for
of oil from wells'
gas lifting a 300-barrel per day
7,000 foot well is approximately

lift

In

The general business re¬

months.

this year.
now

only
in the

cost

—

12

previous

the

in

$1.92

vs.

:

•

the

Despite

credit, share

approximate

which

ally.

oil

$8

ing

Not

the

recovery

Several

this

million
compared
with
$14
million in each of the two
preced¬

:(2)
but

which have ceased to flow natur¬

The

March

construction

that area.

in

revenues

October

Big Bend hydro plant on

the Klamath River in

placed

a

hydro plants

company

capability

400,000 kw, compared with
load

at

mills.

2.45

of

operated

April 1, 1959, which
in a large increase

on

result

electric

power,

July, 1964.
protect

of

rate

paid for
minimum

power

demand

a

Gas

the

-

proportionately
cheaper
with
increasing
well
depths.
This last point is espe¬
cially important in view of tne
fact that trends in oil production
are
moving in the direction of
deeper and deeper weiis.
i
costs lower

dustry.

use

about 20c per kwh.
The very high price
this

for

of power—5.5

amount

kwh

out about $1,-

pay

Pacific

to

small

very

activated
should

Command
Falls was

Defense

Coast

The

months ended

As a hydro company, California
Oregon Power should enjoy verylow power costs. Last year about
2.1 billion
kwh cost only $841,000 to generate or about 0.4 mill
per kwh.
On the other hand the
company

pulp

the

part of

the

Jon

level.

future.

the

pulp and paper
studies
have

of

Extensive

mills.

in

waste

wood

for

kets

Com¬

decide to do

mission should

ex¬

becomes

-

resi¬

the

if

move

a

aggressive

series of dramati¬

gas

by
tion were already the third larg¬ nature becomes so depleted that pumping./ As the volume of fluid
lifted increases, the cost is more
est industry.
there is not enough left to bring
favorable to the gas lift method.
The
company
is continuing 9 oil into and up the wells, even
with the help of a pump.
(•3) Gas lift equipment performs
program of business and resource
more
efficiently
than
pumping
Not too many years ago these
development.
Special
emphasis

war¬

to

seem

the

of

one

popular winter sports resorts

most

proving and expanding agricul¬
ture production and marketing of
farm products, with emphasis on
more processing at the production

low

and

return

rate

dential

and seems

California

northern

in

bowl was

largest ski

nation's

the

a

cally
cheaper,
more
efficient
products in a huge but practically
unknown segment of tne oil in¬

Late in 1958,

Oregon.

opment in
the

from

ploitation of

the

'

been low for

resulted

Company

California Oregon Power

"nothing but the road up" for
Cameo's sales and profits.
As noted above these increases

The Security I Like Best

Public Utility Securities

Thursday, September 24, 1959

...

Stella

W.

Sandoe,

Robert W. Sutphen and Joseph J.
Warnick have become associated
with

B.

Kansas

C. Christopher & Co. of
City. Mr. Warnick was

formerly with Slayton & Co., Inc.
The

others

&

were

Sons.

with

A.

G.

Ed¬

Volume 190

Number 5884

.

.'The Commercial and Financial Chronicle

.

(1273)

underwriting income dollar. Hence 71c on the dollar. If there is any
investment income is really worth cheaper way to invest in the "blue

The Values in Insurance Stocks
Continued from

5

page

103%

and

their

dividends

duplicated by any ordi¬
nary bond, mortgage or preferred
stock.
Among these top quality

stockholders 74%. Not

companies there

ance

cannot be

ference

in

was

wide

a

performance:

dif¬

from

a

the

224%

gains

the

But

better

these

writing income.
curious

increases

ordinary

any

rise of 399% in investment income

bond

or

by Continental Casualty, 204% by
both Hartford and
Federal, 161%
by Insurance Co. of North

stock

could have done.

America

and

by St. Paul.
ceived by

just

the

at

And

lowest

153%

in dividends

re¬

stockholders there was
much
divergence.
The

as

stockholders of Continental Casu¬

alty received the greatest boost
in
dividends, 192%, followed by
Insurance
with
St.

Co.

166%,

Paul

of

North

Hartford

with

147%

America

with
and

105%,

Federal

Are not these exciting figures of
growth?
Industrial companies,
with their large research
appro¬

priations and staffs
the

you

may

record.

the

years

are

more

During

167%.

Who

would

five

the

insurance

have

chips" would have had

be¬

"blue

greater
percentage gain in investment in¬
come

a

(224%) than all but

the earnings of the five
"blue chip" industrials?
It

hardly

seems

stocks

ceived

of

the

stocks

to

been

growth
and com¬

excellence,

par

among industrials.
Comments

Yield

on

followed
Home

American

with

by

Hampshire
of

re¬

110%

a

Boston

with

with

with

Drawback

writing

and

New

divi¬

five

are

by

their

covered

that

invest¬

be
judged extremely secure. While
their growth, either in investment
income

so

may

dividends received, has

or

history.

coldest
now

they

years,

cost

by

would

than

sooner

yield 7.7% at
will come

1969—which

think.

we

May

take the liberty of corn-

we

these

five

insurance

stocks, individually or as a package or group. All are eligible for
investment
by New Hampshire

savings
in

banks.

the

Three

heart

of

is

only one drawback.
average
yield in today's

Their
market

is

decade

can

1.8%.

Even if the past

serve

guide for
the future, it would be eight years
before their yield averaged 4%.
That may be too long to wait
where immediate yield is a factor.
As

as

matter of fact the next

a

years

may

be

ment

wise

than

We

a

far

better

in

10

invest¬

the

last

10.

be overly cautious that
eight years will be necessary for
the "blue chip" fire and casualty
may

within the last two

that

the

sented

bond

^ *s on*y

three years
market has
pre¬

bond

or

adequate yields. Since the

maturities

of

fire

most

and

casualty companies average 10-15
years, only a small portion, prob¬

ably 15-20% of the bond account,
has really benefited by the Era
of High Interest Rates.
But as
old,

low

coupon

new

high

coupon

chased

their

in

counts

bonds

bonds

place.

mature,
are

pur¬

Bond

ac¬

throwing off increas¬
ing income. Furthermore, having
are

sustained

the heaviest underwrit¬

ing losses in the history of insur¬
ance
during the past five years,
insurance
below

companies

average

return

have

had

funds to invest. A

to

will

due

profitable underwriting
only stop the cash drain

not

to

underwriting

losses

but

will add funds for investment and

investment

spur

income

further.

Higher

insurance rates plus
greater volume of risks to be
derwritten

will

funds.

ment

could

provide

vestment

last

ten

such

as

also

The

monied

such

stock

values

seem

than

bonds

past

with

the

the

for

insurance

holders.

It

is

thesis

our

that

difficulties
have
been
overemphasized and the steady
rise in investment income, out of
which dividends are paid and fu¬
ture
value
created,
overlooked
during recent years. Nevertheless,
writing

a

word

tainly

underwriting

on

cer¬

$70
New

and selling at
Hampshire at

sells

at

dollar

is

tax.

The

dollar

52%

tax

subject

earned

only

Government

on

is




at

The

on

on

to

bonds,

corporate

all

only 7.8%

in¬

subject

or

of

tax

no

52%

a

interest from

tax

to

to

investment

ceived.

average

during campaigns and
importantly in between cam¬
paigns—the right to help deter¬
mine platforms and to help select
candidates
in the future.
They
should strive to make their voices
in

the

political

ol

parties

their choice.

Conclusion
The

foregoing outlines an ad¬
mittedly ambitious program. And
if

we

truly effective

are

we

must,

of course, anticipate that we will
be subjected to criticism as to our

B.

There is, however,

another type
of political work in which it is
hoped every employee will en¬
gage. This is the actual participa¬
tion by

businessmen in their indi¬

political party of their choice, and

on each
money.

working for them, not just at elecat- tion time but in between too. In

in

true

the

group

mentioned before.
Those

or

whose

indirectly,

must

earn

interests, directly
lie with business

for themselves

as

citi-

through their political work

tactics.

our

This crit¬

what it is that is being undertaken.

When the public has learned that
our concern is not with the
sup¬

port of candidates or parties but
with issues vital to the business

community

the

and

nation,

the

of understanding and of ap¬
proval should increase.

area

Their will increasingly be abuses
however, from those who are op¬

posed to our basic objectives oi
strengthening the free enterprise
As these attacks multiply,
as a sign

system.

should welcome them

we

that

are

we

tive; when
beyond the
will

beginning to be effec¬
we
move
altogether
area of criticism, it

that

mean

have failed.

we

Casco Chemical

Corp.
Offering Compleied

Pearson, Murphy & Co., Inc., of
New York City, on Sept. 11 pub¬
licly offered as a speculation 300,000 shares of common stock (par
10 cents) of Casco Chemical Corp.
at $1 per share. This offering was
oversubscribed

the

and

books

closed.
The net proceeds are to be used

for

repayment

secured

by

of
first

one

year

loan

mortgage

on

chattels, and for working capital
other

and

The

corporate purposes.

corporation

ated

in

The

executive

Texas

on

was

duction

facilities

tion

located at 3007

St.
The

are

incorpor¬
1957.

March 22,

offices

of

the

and

pro¬

corpora¬

McGowan

(P. O. Box 5998), Dallas, Tex.
business of the corporation

is the

fats

buying and selling of animal

and

oils,

vegetable oils and
refining of ani-

the rendering and

mal fats.

interest

from

effective
dividends re-

average

an

tax

on

in¬

vestment income is around 10-15%

instead

of

income.

52%
The

on

underwriting

stockholder

thus

"keeps" approximately 85-90% of
the

investment

compared

income

with only 48%

is

even

OFFER

36, off 49%.
a price of 45
of

31%

2 Sets of

from

the figures are $37 for

stocks

Commercial and Financial Chronicle's

and

selling at 33,
Needless
to
say,
the

11%.

stocks

insurance

owned

by

companies

of

blue"

the

are

with

the
such

General Electric,
du Pont,
Minnesota Mining and
Standard Oil of New Jersey, and
the other growth industrial stocks
mentioned above heavy

Taking

a

insurance

FOR SALE

these

IBM,

as

From 1895 to 1939 Inclusive

Approximately 130 Volumes in All

favorites.

composite of these five
eligible for New

Another Set 1908-1928

Inclusive

stocks

Hampshire savings banks, we find
that in today's market they are

discount

selling

on

of 45%

from their net worth at

discount

1

EXTRAORDINARY

worth $65 per share and

for Boston

stocks

dollar earned

discount

a

commons

"bluest

on

basis are the extent
political activities of our
employees as employees.
the

of

with
common
estimated worth

startling,
currently

ing

Great Ameri¬
can, Boston and New Hampshire
Fire. The average yield of these
five stocks currently is 4.4%. Dur¬
ing the past decade their invest¬

command

American

stocks

lar earned because the underwrit¬

Home,

nonpartisan

insurance

more

the

Continental

matter

insurance

recommended

Great

institutions

ment

could

rose

is

22%.

common

group

about

mentioned above. Continental In¬
surance, for example, has common

off

another

small college campuses or some

vidual capacity as citizens in par¬
tisan politics—for and within the

Values

particularly
and

second
<

,

$71 per share and

their under¬

exempt bonds and

income

is

is considerably less
valuable than the investment dol¬

than

with

it is selling at
a
Function
50, or 30% below. Home is another
What
about
the
underwriting example,
with
common
stocks
problems of insurance companies? worth $67 and selling at 52, off

tax

ment

That

that

in¬

also

Many

is

years

greater

be

stocks this individual political activity
can
be
purchased for less than many employees can take advantheir common stockholdings alone. tage pf the ECO type of training
tention.

un¬

savings bank

investor reasonably ask for more
than that?
>

icism will stem in large part from
a
basic misunderstanding of just

zens

Stresses Investment Income

stocks, good grade
stocks returning a "living wage,"
between 4-514% currently. They

Insurance,

should

stocks

a

In

—~

a

include

stock-

climate,
may

any one

costs.

hear less

well

may

too."

motives and

on

store
when

line

damental values behind

dividends

and

company

business

challenge

individual's own time and
This individual activity
improvement,
and
more
about would be as a partisan, picking a
increasing investment income due party of one's own choice and
to High Interest Rates.
The fun- candidates of one's own choice and

spell

income

vestment

this

and is a nonprofit
organization which sponsors po¬
workshops lasting three
days. They are usually conducted

writers

past

in

and

can

certain times

it

"have

to

one

eat

litical

is

underwriting

Fundamental
We

and

—both

you

better

a

Meeting

conditions.
This represents a major under¬
writing improvement.

War,
one
continuing

in

education, if

set upon estimated
With modern busi-

be

take

But good insur¬

enable

Organization

grocery

than

flexible

more

current

started. High In¬
increasing in¬

we

Rates

terest

and

years

machines, pricing can become

common

insurance

well

exciting

High Interest Rates. Which is ex¬

come

at

ness

Our first com¬
the
underwriting

Group
look

years.

costs.

order.

insurance companies.

us

Cold

answer

actly where

corner

can

his

heard

the

it cannot be gain- underwriting conditions in the fuprices are low and ture, as they undergo their normal

continuing

finds

the

to

direct

the

as

more

other industry where the

future

stocks

ance

ward

second

due

revolution"

rather

any

price

at the
moment. Yet if one contemplates
the demands for capital to finance
the products of our Research and

Examines Another Insurance

Let

of

and space stocks.

will. We have
found that the practical impetus
toward
political sophistication
comes
most frequently from the
actual experience of
working to-

Pricing in insurance is unlike that

historically

high

America,

future

may not be the "frost¬

full

"quiet

current

big cyclical swings in bonds

or stocks; and
said that bond

yields

in

the

quarter-century. It
to concern oneself

pays

Cal

began

during

50

stocks, the
obtainable at

common

particular course does not
materially so long as it's
revolution
all
over
again
thorough and so long as top manbeset by chain store competition, agement inspiration and leaderThe competitive position of the ship are
provided.
insurance companies is being im¬
These three steps—business cli¬
measurably improved by those mate
improvement, participation
new streamlined methods.
in the legislative process on key
(3) Insurance rating procedures issues, and providing political eduare being
made more flexible so cation—all on company time and
that rates will reflect more readily with company money and on a

mortgages even
though
these
fixed
obligations
yield more than at any time dur¬

ing the
usually

in

Higher Interest
huge portfolios

as

is

It

or

more

insurance

on in the field of distribu¬
of
insurance
to
meet
the

stocks

ten

or

in

—

They

Businessmen in Politics

tion and reduced acquisition costs,

insurance

insurance
five

chip"

4-5%%

Allstate, State Farm, etc. similar sites.
more
companies, includ¬
There
are
other
excellent
ing the most important, are ex¬ courses
prepared by the United
perimenting with such new de¬ States Chamber of Commerce and
vices as direct billing, continuous
by the National Association of
policy, cash with signed applica- Manufacturers. The selection of

Is it any wonder these insurance

income

of

five

next

their

of

uncertain

an

ing on the cake"—that probably
belongs to the missiles, electronics

Continued from page 16

the betterment.

in

in

ten

opportunities
for

un¬

invest¬

add

next

even

the

these

of

against

in

paying

More and

Continental, Home and
American; while two are
England institutions, Boston
and
New
Hampshire Fire. We
prodict that you will do well,
yieldwise
and
appreciationwise,
this

yields

with

of "blue

worst

the

1959

competition of

—

with

rates,

today,

stocks

future, will prosper
with a Resurgent America in the
future and yet they are
"hedged"
well.

Effective Citizens

A

tion

New

over

of

winter

(2)

district in New York, and within
a
short stone's throw from our
office

able \

beneficiaries

value

great

stocks

Insurance

the

71

swing once augmented
by
formal teaching
more.
Higher
insurance
rates, methods
closer attention to expenses (inQne teaching method is to pre¬
cluding reduction in acquisition vjde
opportunity for company emcosts) and more selective underployees to attend ECO Workshops,
writing have been the principal ecq stands for

located

are

the

during
restrained

seems

going

during the
whole decade of ownership and
they do currently. If dividends
are
increased
during the next
decade
as
during the past ten
way

in

years

for

discounts.
to

short

five

the

in

deep
look

under¬

in

The improvement

was

paid

own

after

quarter

factors

their

reason

the

are

insurance

the second quarter of last year,

in

been as great as the afore¬
mentioned "blue chips," they have

not

These

It

best

stated

stocks

common

The underwriting fig¬
begun a major im¬

snowballed

Great

There

(1)

consecutive

first

The

be

can

have

ures

half,

7%.

their

Costs
The current position on

market

I wish someone
$1.00 worth of top

cents.

Improvements in Underwriting

Great

82%,

81%

with

these

mending

necessary

have

Continental

most

boost,

named

with the best growth stocks

pare

stockholders

of

one

emphasize the fact that these in¬
surance

on

in dividends received, the

average

dends

increase

than

function.

today,

tell me!

quality

little bit like confusing
with the caboose!

provement

74%

income

Dupont's increases were 110% and
167%, General Electric 85% and
253%, and General Motors 42%

income

a

there

a

would

of

stock

common

America

locomotive

order:

was

function

companies

by Boston, 91% by Home and 66%
by
New
Hampshire.
Although

currently

past 10
Minnesota

has been

chip"

the

of

one

market his¬

heed has been paid

more

investment

under¬

as

is

of

underwriting

insurance

variations

141% by Great American to 111%
by Continental Insurance, 106%

191%

of

the

the

It

anomalies

tory that
to

within the group: from the
great¬
est rise in investment income of

ment

the

earnings

preferred

or

were

ex¬

dends to stockholders 433%. IBM
had a 440% increase in
earnings
and a 230% increase in dividends.

lieved

there

But look at

say.

Mining increased 219% and divi¬

and

Again

88%,

with 116%.

citing,

mortgage

much

as

as

respective
chip" insur¬

than

twice

to

good

as

154%

"blue

issues.

far

are

and

for

about

37

average

of 29%

chip"

common

dollar

That

means

of the

their

common

at

a

from their "blue

are

abje to buy

stock portfolios

Write

SET INTERESTS YOU?
or

Phone

—

REctor 2-9570

a

stockholdings alone.

you

WHICH

at

Edwin L. Beck, c/o

Chronicle, 25 Park PL, N. Y. 7

The Commercial and Financial Chronicle

38

Thursday, September 24, 1959

...

(1274)

pinch

Formed in NYC
National
has been
National Stock
Inc.,

Exchange,

The

announced.

wholly-owned sub¬
sidiary of the New York Mercan¬
tile Exchange, was incorporated
Sept. 16 by the filing of its Char¬
Exchapge,

ter

stage,

designation

national

the

continue

new

accept

to

list

to

registered

a

as

exchange.
Until
exchange will

stock

that time

tention

Week Ending Sept. 19—

New

of in¬
high quality

letters

from

'

Boston
For

the

corporations desiring to have their
stocks listed and traded on the

detailed

a

$12,266,770,653
1,357,515,929
1,121,000,000
777,539,453

1,180,000,000
842,440,655

Philadelphia

summary

Edition

Statistical

the

of

usually occurs between July and August. They repre¬
seasonally adjusted annual rate of 1,340,000 down a little

The

of

Governor

Exchange,
Inc.
Chairman of the new Exchange
will
be
Lawrence
Huntington
Stock

Other Governors will be
C. Ahlers, who is also

Taylor.
Hendrik

Vice-President

First

the

of

New

C.

Exchange;

Mercantile

York

Charles Denisco, who is also Sec¬
ond
Vice-President of the New
York

Mercantile

Exchange;

and

Aaron A.

Freundlich, who is Sec¬
retary of the New York Mercan¬
Exchange.
It was explained

1,350,000 for July and 1,368,000 for June.
When averaged for the first 8 months, the seasonally adjusted
annual rate of private starts in 1959 amounted to 1,379,000, com¬
pared with the much lower rate of 1,042,000 for the same 1958

period.
By the end of August, 1959, a total of 973,400 new private and
public dwelling units had been put under construction, an advance
of 26%

the

five

of

Governors

also the legal incorporators of the

President
of The
Exchange, Inc., is
John W. Clagett.
The office of
President is the top administra¬
Organization.

National

tive

post,

which

the

Stock

job

a

Mr.

similar

Clagett

now

to that
holds on

Mercantile

York

New

Ex¬

change with the title of Executive

Starts in publicly owned projects totaled
26,400 thus far in
1959, against 51,600 begun during the first 8 months of 1958, and
35,400 in the same 1957 period.

Warns Unsophisticated on Stock

Inc.,

according

Bureau

and Officers, will be devoted pri¬
marily to listing the securities of
newer,
smaller
corporations
of
high quality. Letters of Intention

securities" and traded

the

on

new

Exchange. Minimum corporate re¬
quirements for listing on the new
Exchange are $1,000,000 net worth,
150,000 outstanding shares of stock

stockholders,

suitable

well

as

as a

record

corporate

copy

Hugh

at

220

Steel

six

strike

ends

The
will

national

drop

to

Bertram

Barr, Director of Securities List¬
ing.
Clearing on The National
Stock
Exchange,
Inc.,
will
be
electronic, making its system the
fastest

and

most

modern

of

any

exchange. In addition direct clear¬
ing from out-of-town brokerage
firms

will

possible

be

for

routine,

any

making it
brokerage firm

in the nation to clear trades direct

without

requiring a New York
representative member. Original
physical
plans
for
the
trading
floor

of

The

change,
for

National

Stock

Ex¬

Inc., will allow initially
listing of 128 different

the

corporate

securities.

The

Ex¬

change has national ticker wires
widely

distributed

coast

over

from

which

coast

to

continuous

Further

details

on

booklet "The

ing

The Iron Age"

on

Exchange,

obtained

by

the
copy

There

is

determined

no

to

11

million

a

The

National

Inc.,"

may

be

writing to

John

W.

Clagett, President.




tons

that steel

says

tutors

break

get the

before wages and

the

two

next

prices after the strike are strengthening the scrap market.
week, "Steel's" composite price on the No. 1 heavy
went

(to $41) a gross ton.
firms are looking

$1

up

American

imports

steel

at

Last

melting grade
as

the

strike

drags on. Some construction companies, for example, admit they'll
buy imported material if domestic shortages threaten to halt their
progress.
The industry is

riding the uptrend of a new spending wave for
construction, a "Steel" survey indicates.
About $3.8
billion worth of contracts for industrial construction will be let

industrial

$1.75 billion last year.
Two reasons are found for the revival:
update production facilities. (2)

need to

incurring additional costs

mean

billion this year

That compares with an estimated $2.95

next year.
and

in a

Awareness of a

(1)

Realization that delay may
rising labor and materials

market
the fourth quarter come up

ro^ts

to the expectations of

whole will be the best on record.
primary metal producers fail to offset strike losses,
for an over-all record are still good because of the
in other durable and nondurable goods industries.

many

businessmen, the year as a

Even

if

chances

strength

Based

12.7% of Capacity

on

announced that the
steel companies will average *22.3% of steel
capacity for the week beginning Sept. 21, equivalent to 359,000
tons of ingot and steel castings (based on average weekly produc¬
tion of 1947-49) as compared with an actual rate of 22.2%
of
capacity and 356,000 tons a week ago. [ED. NOTE: A strike in the
steel industry began Wednesday, July 15.]
Actual output for the week beginning Sept. 14 was equal to
12.6% of the utilization of the Jan. 1, 1959 annual capacity of 147,633,670 net tons. Estimated percentage for this week's forecast
Iron

American

The

and Steel Institute

operating rate of the

A^month

ago

(based on 1947-49 weekly

operating rate

the

production) was *20.7% and production 332,000 tons. A year ago
the actual weekly production was placed at
1,816,000 tons, or

production is based on average weekly production

*Index of

weeks, the

next

week.

The

total

for 1947-49.

the

are

users

who have been

cheering

in

sight in negotiations.

union

fringes

are

The industry is
yield on local working practices
debated. The union remains
equally
to

nego-

privately concerned

over

worker

performance, should

invoked.

Another private concern of steel
companies is the condition of
Mills are not
saying the extent of repairs
that will have to be made before
peak production can be reached
after the strike.
But it is known that some mills
have sustained

openhearth furnaces.

damage that will delay return to production.
Among big steel users, layoffs are unavoidable

Detroit, General Motors

and

Chrysler

are

be in most serious condition.

Mills have

now

in conversion
(buying of semi-finished steel from
to be rolled at another mill) is mounting. In Chicago
1,000 tons of cold-rolled sheet was established
last week.
Buyers believe that conversion costs will run as
high
as
17 to 20 cents per pound.
(Mill list price is quoted at 6.275
cents F. O. B. Chicago, without extras.)
Interest

order for

said

Larger Companies Feeling Steel Shortage

inventories

have

fallen

from

an

all-time

high

of

level
Until

affected.

of

the

But

a

26

two
cur¬

economic

activity.
beginning of the past week, few companies

small- and

medium-size

companies

are

were

feeling the

report

5,227,129 net tons. In August

last year the figure was 7,308,003 tons.
The total for the first eight months

„nnAt%

x

of 1959 was 70,943,332 tons,

against 51,502,895 tons in the comparable part of last year. The
1959 interval featured three pre-strike months with more than 11
output,, each,

tons'

million

and

one

month of nearly 11

mil J ion

.

American Iron and Steel Institute s index of
steelmaking the August, 1959 output was 20.2 in terms of the basic
index of average production during the period of 1947-1949. This
According

to

during July, 1959 and

102.7 during August,

I958,

The index

figure for the first eight months of

this year was

compared* with 92.4 during the same part of last year.
on the Jan.
1, 1959 capacity rating of 147,633,670 net
tons of raw steel annually, the steelmaking facilities were utilized
127.2

Based

at

an

,of 11.5% of capacity during August, 1959, compared
ii> July, 1959. The per cent of capacity rate for the
eight mqnths of 1959 was 72.2.
average

41.7%

with

first

The besLU. S.
month

was

motive

Production

automobile production volume in more than a

tabulated

for the week ended Sept. 19 by

Ward's Auto¬

Reports.
reporting agency said the return of the industry to

The
out

'60

model

Ward's

all-

production would place the week's volume in the

60,000-unit area nearly triple previous
when car assembly was more sporadic.

week's

output

(24,364)

J^id the first '60 model Fords, Edsels and Mercurys

production, completing the list of new car makers that
will be offered to the public beginning the first of October.
into

went

Two
are

ne\^

being

small cars, Ford's Falcon and Chevrolet's Corvair,

produced

in

volume,

Ward's

said,

and

assembly

of

Chrysler Co**p.'s Valiant will begin in the week beginning Sept. 21

Hamtrjamck, Mich., plant.

Ward's

million tons to a barely adequate 16 million.
In another
weeks, they'll be at 14 million—close to the minimum for the
rent

During July, 1959 the output was

at the

Metalworking companies are feeling the steel shortage on
wide front, "Steel," the
metalworking weekly, reported Sept. 21.
It

smallest monthly output since

October, 1949, during a strike, according to the preliminary
of American Iron and Steel Institute on Sept. 14.

early

,one source
new

August, 1959, declined to 1,438,000 net tons

ingots and steel for castings, the

High Car Output Reflects New Model
after

reported to

given up hope of an orderly recovery after the
strike. Most products will be on allocation for
weeks, flat-rolled
for months. Until recently customers had been
restrained in get¬
ting in their orders. That is not the case now.

one

of

compared with 73.5
on

workers.

In

duction of steel during

1949

in the iron and steel industry, the pro¬

tons'production.

says that invoking the Taft-Hartley Act is not
progress in negotiations.
Furthermore, industry

holding out until customer pres¬
industry to modify its demands on contract
language. Foi this reason, an 80-day cooling off
period under a
T-H injunction is not
likely to produce an all-out effort from the

October.

Because of the strike

un¬

1"TJie Iron ASe"
act be

August Steel Output Lowest Since

stocks
is

rejeCtGd any chanSe suggested by industry

3

new

of

within

Sept. 21 amount to over $3.6 bil¬

*113.0%.

negotiators to hold the line will now have to
support the hold-theiine position—with little
or
no
stocks of steel.

Even

Advantages of List¬

Securities

Stock

a

v-

and increased conversion.

quotations will be sent.

Exchange plans and

their

lion, '"Steel" said. It figures lost steelworker wages at $707,600,000; lost sales, $2,053,000,000; other losses, $392,000,000; and tax
losses to U. S., $450,000,000.
Last week, steelmaking operations climbed half a point to
12.5% of capacity. Output was about 355,000 ingot tons.
Continued strong export demand and anticipation of higher

by

Business

location, product and gage. This has resulted in
widespread gray market sales,
shifting and trading of steel stocks

Union strategy now rests
sure forces the steel

directed

obtained

Better

galvanized sheets will be particu¬

started.

to

as

sources

be

be

can

metalworking weekly reports total steel

about

to

balanced

rison Street, New York.

should

pamphlet

*e worst steel shortage since the end of World War

Tces

Exchange,
Inc., has its headquarters at 6 Har¬
Inquiries
and applications for listing forms

page

Jackson, President of the
Street, New York City.

Shortage Reaching Crisis Proportions

likely to promote
Stock

this

R.

start

II, "The Iron Age" predicts.

...

National

of

Church

Unless the steel

of

achievement.
The

free

Governors

and further applications are
being accepted from other quali¬
fying companies desirous of hav¬
ing their securities become "listed

warns

high

its

try

six-page pamphlet entitled "Security
"that buying on rumors can lead

a

pitchmen and understand that every potential gain carries
the risk of loss" and cautions the
unsophisticated investor to think
before buying securities.
!

addressing

security issues have already
been
accepted by The National
Stock Exchange from numerous
corporations throughout the coun¬

In

pressure

Exchange,

to list

fall.

"The sensible investor will,"
the pamphlet
continues," make sure he is trading through a repu¬
table broker, that he will
hang up the telephone receiver on

Stock

to

a

down the garden path to losses."

A

National

and 500

riding for

and Securities" the Bureau
you

can

The pinch in

Steel Output

Buying Hazards

The Better Business Bureau in New York
City warns investors
who dabble in the stock market that "inside information"
and tips
are

mills

being offered to the mills now stand little chance
delivery in 1959. The mills will first have to whittle
backlogs, most of which they had before the strike

getting

1950.

the first 8 months.

Director.
The

total of 992,000 in

record

This year's private total
(947,000 units) exceeded by 225,800 units the 1958 private total for

the

National Stock Exchange, Inc., are

the first 8 months of 1958, and1 somewhat below the

over

8-month

tile

that

a

the

Direct strike losses through

124,800 privately owned dwelling units begun last month
almost unchanged from July, though a moderate seasonal

increase

before

Mills are booked solidly 90 to
three to six weeks after the
on hot rolled sheets, longer for

It's going to take

days ahead.

down

21 issue.

The
were

Sheets will be in short supply.
110

of

from the estimated rate of

a

shortages will be felt after the contract
and the United Steelworkers.

New orders

Housing Starts in August, 1959

Llewellyn Watts, Jr., President
of the New York Mercantile Ex¬

is

In fact, the severest

larly tough.

housing starts rose to 129,000 in August, from 126,000
in July, according to preliminary estimates of the Bureau of the
Census, U. S. Department of Commerce. Publicly owned dwelling
units accounted for practically all of the increase. The August,
1959, starts total for privately and publicly owned units was 6%
greater than a year ago, and the highest recorded! for August
except in 1950.

sented

change,

pinch will get tighter, particularly after the steel strike

cold rolled sheets.

Nonfarm

exchange.

National

The

strike

of bank clearings in U. S., refer to
"Chronicle," issued Mondays. For

this week's summary, refer to page 49 of the Sept.

Nonfarm

%
+19.6
+ 5.9
+ 5.3
' + 8.3

1958

1959
$13,670,846,665
1,437,300,467

York

Chicago

Stock

of The National

Governors

Exchange, Inc., said they plan, in
the near future, to apply to the
Securities Exchange Commission
for

against $25,266,804,019 for the same week in 1958. Our comparative
for the leading money centers for this week follows:

The

entity.

legal

a

•

summary

State

of

Secretary

Albany, making the new organ¬
ization, over a year in the plan¬

at

ning

ends.

a

the

with

ones, some are

is signed by the steel industry

the

formation of

The

Stock

Although big consumers are better stocked than small
in trouble already. + •
-

now.

The State of Trade and Industry
Continued from page 4

Nat'l Stock Exchange

sftid five-day scheduling was in force at all auto plants

last week with the exception of Falcon assembly
Ohio, and Kapsas City, Mo., idled Sept. 14 because
ages.

lines at Lorain,
of parts short¬

V.

sdid truck building for the week under review also
d, resurgence over the previous week's production.
Ward's estimated the week's volume at 19,912 units, or a 68%
increase over butput of the previous week (11,869).
Ward's

experienced

r^nmhiriprl

far-trnok

volume

fnr

thp

wppk

w»<s

rstimntpd

bv

Number 5884

Volume 190

Ward's

at

units,

80,856

.

.

123%

or

than the previous week

more

(36,233).

of 1958 by 48%.

Automotive

17 early
model inventory

in reporting on Sept.

Reports,

September auto sales and a continued bright :59

creeping

cleanup, said the auto industry's answer to the nation's
inflation will be a "stand pat" policy on '60 auto prices.
Ward's said that a survey of Big Three auto makers
list prices of the '60 cars

factory

creased from

'59

revealed
generally will not be in¬

model levels and in some instances

will be de¬

statistical

The

that

added

service

marks the end

cars

tacked almost $100

of

the

"stand pat" policy

repeated rise in auto prices that

a

onto the cost of a low-price field car

on

has

each year

since 1955.
Ward's said the industry's

pricing policy strengthens hopes for

1,925,000-unit October-December production quarter
in passenger cars, could spur a non-inflationary type steel strike
settlement and points the entire U. S. economy towards one of its
best years in history in 1960.

a

rubber
by increases on hogs, lambs, butter and steel scrap
holding the general commodity price level close to the prior week.
The Daily Wholesale Commodity Price Index, compiled by Dun
&

Bradstreet,

ing date

distributed by the electric light

19, was
Electric
that of
.the previous week's total of 13,109,000,000 kwh. but showed a
gain of 539,000,000 kwh., or 4.4% above that of the comparable
industry for the week ended Saturday, Sept.
estimated at 12,779,000,000 kwh., according to the Edison
Institute.
Output decreased by 330,000,000 kwh. below
and power

Loadings Dovvn 27.9% From 1958 Week

ended Sept. 12, 1959,
'totaled 480,647 cars, the Association of American Railroads an¬
nounced. This was a decrease of 185,576 cars, or 27.9%, below the
corresponding week in 1958, and a decrease of 260,500 cars, or
35.1%, below the corresponding week in 1957.
Comparisons with corresponding weeks in prior years are
somewhat distorted as last week included the Labor Day Holiday
and was affected by the steel strike, while neither the comparable
•1958 nor the 1957 week included a holiday, nor were they affected
Loading of revenue freight for the week

by

major strikes.
Loadings in the week of Sept. 12, were

in wheat

63,442 cars, or 11.7%,
below the preceding week. It is estimated that about 140,000 addi¬
tional- cars would have been loaded in the current week if there
had been no steel strike. Based on these v/eek-to-week estimates

shipments

Barometer

Trade

Lumber

of

Week

reporting to the National
6.2% below production for the

mills

470
were

holiday week ended September 12, 1959. In the same week new
orders of these
mills were 11.6%
below production. Unfilled
reporting mills

of

orders

amounted to 38% of gross stocks.

reporting softwood mills, unfilled
"17 days' production at the current

For

orders were equivalent to
rate, and gross stocks were

equivalent to 42 days' production.
•
For the year-to-date, shipments of reporting identical mills
were
1.8%
above
production;
new
orders were 1.1% above

V
Compared with the previous week ended September 5, 1959,
production of reporting mills-was 13.8% below; shipments were
14.9% below; new orders were 9.0% below. Compared with the
corresponding week in 1958—a non-holiday week—production of
reporting mills was 14.8% below; shipments were 22.0% below;
production.

and

new

orders were 25.1%

below.

Business Failures Climb
Commercial

and

ended September

industrial

in Latest Week

failures

rose

to 264 in

the week

holiday-shortened
Casualties were frac¬

17 from the 222 of the prior

Bradstreet, Inc.
a year ago when 262 occurred, but were
appreciably below the 287 of the similar 1957 week. There was a
rise of 10% over the 239 of,the comparable period of prewar 1939.
Liabilities of $5,000 or more were incurred by 223 of the
week's casualties, compared with 188 a Week earlier and 216 a

week, reported
tionally higher

Dun
than

&

Smaller failures, those involving liabilities under $5,000,
climbing to 41 from 34 in the prior week, but were
below the 46 of last year.
Twenty of the failing concerns had
liabilities in excess of $100,000, as compared with 15 a week earlier.
Except for construction, tolls were higher in all industry
and trade groups.
While construction casualties declined to 35
from 39, failures in manufacturing rose to 51 from 41, in whole¬
saling to 25 from 22, in retailing to 130 from 102, and in commercial
service to 23 from 18. Year-to-year increases occurred in manu¬
facturing, retailing, and commercial service, while declines oc¬
year ago.
also rose,

curred in wholesaling and
In six of the nine
from

in

Middle

the

States

to

up

Atlantic
States up

The most noticeable rises occurred
States, up to 86 from 60, in the East
to 46 from 37, and in the New England

14 from 9.
In contrast, casualties slipped in the
Region, down to 21 from 23, in the West South

Central

Region down to 7 from 8. While failures were above a year ago
in the East North Central, and West South Central Regions, they

in ihd New England, Middle At¬
lantic, West North Central, and South Atlantic States. , The
Mountain and Pacific Regions had the same number of failing
year-to-year declines

concerns

as

a

year

trading lagged again this week with most

Flour

and prices were down somewhat. There was another
dip in flour prices which was followed by a pick-up in
transactions. An increase in expori buying by Cuba occurred dur¬

supplied,

;

While sugar

Wholesale

trading slipped again from the

Hog receipts in Chicago

corn,

and

31

cheese, eggs, and potatoes. Lower in price were
oats, hams, lard, coffee, cottonseed oil, cocoa, steers,

butter,
rye,

hogs.
The Index represents the

raw

sum

total of the price per pound of

foodstuffs and meats in general

use.

It is

not a

cost-of-

living index. Its chief function is to show the general trend of
prices at the wholesale level.

food




prior week, prices

expanded during the week and

buying

hog

last week
and prices remained at week earlier levels. United States exports
of cotton in the week ended last Tuesday were estimated at 33,200
bales, compared with 22,000 a week earlier and 54,000 in the com¬
parable week a year ago. The total for the season through last
Tuesday came to about 162,000 bales, as against 312,000 bales in
Trading on the New York

The First Boston

sociates

through the
exercise of rights
purchased on Sept. 21 at com¬
petitive bidding from American
Telephone & Telegraph Co. These
shares have been all sold. The
company
holds
1,467,120

latter

shares, or 21.3% of Southern New
England's
outstanding
$25
par
value

Trade Volume

Close to Year Ago

weather

Canned Goods Buying
was

little change in volume in

sale this week, but

canned goods at whole¬

substantial gains are anticipated

shortly. While

of poultry and beef, volume in
pork and some dairy products slipped.
After seven consecutive months of increases, the seasonally
adjusted annual rate of personal income dipped to $381.4 billion
in August from the July record of $384.0 billion. The decline was
due to the steel strike and a drop in farm receipts, according to
the United States Department of Commerce.
Payroll cuts were
concentrated primarily in primary metals, mining, and transpor¬
tation.

share

purchase of one share. The

rights expire

Department Store Sales Down

Department store sales on a country-wide basis as taken from
Index for the week ended Sept. 12,

Federal Reserve Board's

9%

below the like period last year.

In the preceding

week, for Sept. 5, an increase of 20% was reported. For the
weeks ended Sept. 12, no increase or decrease was registered

four
and

7% increase was noted.
the Federal Reserve System department store
sales in New York City for the week ended Sept. 12 decreased 17%
over
the like period last year.
In the preceding week Sept. 5 a
10% increase was shown. For the four weeks ended Sept. 12 a 9%
loss over the same period in
1958 was recorded and Jan. 1 to

for Jan.

1

to Sept. 12, a

According

to

Sept. 12 showed a 2% increase.

Oct. 9, 1959.

on

New

will

company

the

England

the

Southern

The

from

required

ten rights are

and

for the

proceeds

use

sale

additional

the

of

repayment of advances
American Telephone. These are

stock
to

for

expected to total $20,000,000 at the
the

time

proceeds

received.

are

The balance will be used for gen¬

corporate purposes.

eral

Southern

New

England's

ser¬

territory includes nearly all
of the State of Connecticut. There

vice

,

about

are

in

telephones

26,000

service. For the six months ended
June

the

1959

30,

re¬

company

net

and

of

income

$9,540,829 compared with $57,989,152
and
$8,468,812 in the like

period of

1958.

Capitalization of the company
outstanding on July 31, 1959 con¬
sisted

of

6,888,678 shares of com¬
and

stock

mon

of

$120,000,000

debt.

funded

Transdyne Corp. Com.
Placed With Investors
Public offering of 300,000 shares
of Transdyne Corp. common
at

price

a

$1

of

stock

share

per

was

Sept. 23 by Simmons &
Co. and Kenneth Kass. The shares

made

on

which

Net

the

the

on

offering.

proceeds from the

common

shares

the

and

sold

been

closed

books

specula¬

offered as a

were

have

tion,

will

sale

of

used

be

by the company for general cor¬
purposes,
including the
relocation of its plant, the pur¬

porate

chase of additional electronic lab¬

equipment and machine
equipment, development of
products, the repayment of
loans, and for working capi¬

oratory

shop
new

bank

tal.

Transdyne Corp., with its prin¬
cipal office and plant now located
in

Maspeth, New York, is en¬
the engineering, design
manufacture
of
electronic

gaged in
and

equipment for United States Gov¬
ernment
agencies uses and for
commercial application. At pres¬

activity

the company's main

ent,
as

a

Government

Prime

Con¬

tractor. In this work the company

designs and manufactures simu¬
lators, trainers, radar indicator
equipment,
1 o r a n
equipment,

and navigational
contracts from
the U. S. Naval Training Device

supplies
equipment

power
test

Center,

on

Washington N. Y.,
Ships and the
also

Port

the Navy Bureau of

U. S. Air Force. The company
manufactures

a

proprietary prod¬

portable
instrument for
radio compass receivers
and
loops
(the Radio Compass
Test Shield, Type G-l). The com¬
pany's backlog of orders at June
30, 1959 was $396,843.

uct,
a
testing

9% for Sept. 12 Week

decreased

group

right. The sub¬

scription price fixed by Southern
New England for the 688,885 ad¬
ditional shares offered is $35 per

is

Steady

slight increases occurred in sales

the

The

stock.

common

bid 36.6 cents per

ported total operating revenues of

and sales promotions stimulated consumer
offsetting the effects of the steel strike in some
areas, and overall retail trade was close to that of a year ago. Best¬
sellers were men's wear, back-to-school apparel, floor coverings,
and linens. Scattered reports indicate that sales of new passenger
cars equaled those of the prior week and appreciable year-to-year
gains were sustained.
The total dollar volume of retail trade in the week ended
Sept. 16 was from 1% below to 3% higher than a year ago, accord¬
ing to spot estimates collected by Dun & Bradstreet, Inc. Regional
estimates varied from the comparable 1958 levels by the following
percentages: Mountain 4-5 to +9; Pacific Coast -f-3 to 4-7; South
Atlantic, East South Central, and West South Central -fl to +5;
West North Central 0 to +4; New England —3 to
+1; Middle
Atlantic —4 to 0; East North Central —5 to —1.
There was a considerable rise from the prior week in the buy¬
ing of men's Fall suits, coats, and sportswear, and overall volume
matched that of a year ago.
Attracted by promotions, shoppers
stepped up their purchases over both a week earlier and last year
of girls' and boys' back-to-school clothing.
Sales of women's ap¬
parel climbed from the preceding week, but were down fractionally
from the similar 1958 period.
Year-to-year declines in Fall coats
and suits offset increases in sportswear and fashion accessories.
While volume in floor coverings and linens showed substantial
gains over last year, interest in draperies and slipcovers was down
somewhat. Furniture volume was up slightly from last year due to
increases in case goods" bedding, and upholstered merchandise.
Total sales of major appliances remained close to a year ago; best¬
sellers were televison sets, radios, and lighting fixtures.
Grocers reported little change in overall food sales during the
week. Housewives stepped up their buying of fresh produce, fresh
meat, poultry, and some dairy products, but interest in canned
goods, baked goods, and frozen foods lagged.
Most apparel wholesalers reported a marked post-Labor Day
rise this week in reorders for back-to-school and Fall apparel, and
appreciable year-to-year gains occurred. Best-sellers in children's
wear were girls' sweaters, blouses, and skirts and boys' jackets and
slacks. There was a moderate rise in bookings in women's furtrimmed coats and suits and in better-priced dresses. The buying
of men's Fall suits, slacks, and sportswear expanded substantially
from the prior week and matched that of a year ago.

There

146,-

Co. common stock
at $40.25 per share. The
shares
were
acquired
by
the
group

$62,558,348

Cooler

Corp. and as¬

Sept. 22 offered

on

shares of Southern New Eng¬

712

Cotton Exchange was dull

period last year.

Retail

Index, compiled by Dun & Brad-

street, Inc., remained unchanged in the latest week. On September
15 it stood at $5.98, the same as a week earlier, but down 6.4%
from the $6.39 of the corresponding date a year ago.
Commodities quoted higher in wholesale cost this week were
flour,

h

prices were appreciably higher than the prior
week.
salable supply of cattle moved up, but trading in
steers was sluggish and prices slipped somewhat.
There was a
slight rise in lamb prices as transactions picked up on increased
supplies. In contrast to the increase in hog prices, lard prices were
moderately below a week earlier.
up;
The

Nationwide

Price

_

unchanged from a week earlier.

ago.

Food

li

Coffee prices rose at the
beginning of the week, but declined at the end of the period, fin¬
ishing slightly below the prior week.
The buying of cocoa de¬
clined and prices were down fractionally.

were

Wholesale Food Price Index Unchanged in Latest Week
The

buyers well

moderate

construction.

Central Region, down to 12 from 15, and in the East South

showed

a

week.

major geographic regions, increases prevailed

Atlantic

South

light and prices slipped fractionally from the

was

Although purchases of soybeans were unchanged, as buyers waited
the peak harvest period, prices matched those of the preceding

the prior holiday week.

North Central

reaching maturity, corn trading dipped

down noticeably during the week.

buying this week

approximately 1,340,000 cars.

Shipments Down 22% From 1958

Lumber
Lumber

were

There

the similar

any

the cumulative loss is now

277.73

ago.

were

England Tel.

Shares All Sold

land Telephone

record crop fast

a

prices

picked

1958 week.

Car

a

at

ing the week.

4.4% Above 1958 Week

The amount of electric energy

(1930-32 = 100) on Sept. 21,
week earlier and 276.99 on the correspond¬

stood

Transactions
prior
slight rise in export inquiries for wheat.
Light offerings and steady trading held oats prices close to a
week
earlier, but prices on rye declined as volume lagged.

and

near-record

Electric Output

Inc.,

year

a

With

So. New

most grains, flour, coffee, steers and

on

compared with 277.90

week.

creased.

'60

Commodity Price Index Close to Prior Week

offset

were

Big Three to Hold Price Line on 1960 Cars
Ward's

that

Wholesale

Lower prices

year's car-truck output to date is ahead

The

39

(1275)

The Commercial and Financial Chronicle

.

capitalization
of
will consist of 750,shares of common stock fol¬

Outstanding
the
305

company

lowing

the

sale

stock.

shares

of

months

ended

had

company

063

and

a

of

the

For

June 30,

300,000

the

nine

1959, the

net sales of $160,-

net profit of

$14,700.

4C

Tke Commercial and Financial Chronicle

(1276).-

Thursday, September 24, 1959

...

* INDICATES

Securities

Now

Abbott-Warner Co., Inc.

Aug. 12 (letter of notification) 62,500 shares of common
stock (no par).
Price—$2.70 per share.
Proceeds—To

estimates and to submit bids, as a prime con¬
specialized construction projects. Underwriter

prepare

tractor

on

—Strathmore

Securities, Inc., 605 Park Bldg., Pittsburgh

22, Pa.
•

\'

Acme Missiles

& Construction Corp. (10/12)
July 24 filed 200,000 shares of common stock (par 25c),
of which 150,000 shares will be offered for public sale
for the account of the company, and 50,000 shares will be
offered for the accounts of the present holders thereof.
Price—$6 per share.
Proceeds—For general corporate
purposes, including additional personnel, office space,
equipment, and the provision of funds necessary to
compete for certain contracts. Office—2949 Long Beach
Boad, Oceanside, L. I., N. Y.
Underwriter — Myron A.
liOmasney & Co., New York.

*AFCO Land Co.
Sept. 15 ( letter of

notification) 11,000 shares of pre¬
ferred stock. Price—At par ($25 per share).
Proceeds—
To purchase commercial and industrial property and for

working capital. Office—15th floor, Hoge Bldg., Seattle
4, Wash.

Underwriter—None.

Airtronics International Corp. of Florida
Aug. 31 (letter of notification) 109,090 shares of common
stock (par 10 cents).
Price—$2.75 per share.
Proceeds
■—To be used to pay off loan and increase working cap¬
ital.
B.

Office—Fort

Lauderdale, Fla. Underwriter—Frank
Bateman, Ltd., Palm Beach, Fla.

•A Alaska Consolidated Oil Co.,
Sept. 17 filed 3,000,000 shares of

Inc.
stock

common

(par

five cents).
Price—$2.50 per share.
Proceeds—For fur¬
ther development and exploration of the oil and
gas

tential

Wall

of

St.,

the

amendment

Offering—Expected

in

about

six

to

at $1.25 per share up to the amount of commission they
receive on stock sales made by them.] Proceeds—For the

operation of other
in other
Ariz.
•

states.

branch

Office

offices, both in Arizona and
2001

—

East

Roosevelt, Phoenix,

Underwriter—None.

American Educational Life Insurance Co.

Sepjt. 15 filed 3,800,000 shares of class A common stock
(voting), and 950,000 shares of class B common stock
(non-voting), to be offered in units of four shares of
class A stock and

share of class B

stock. Price—$25
general corporate purposes.
Office—Nashville, Tenn. Underwriter—Standard Securi¬
ties Corp., Third National Bank
Bldg., Nashville, Tenn.

unit.

per

one

Proceeds

American

For

—-

Electric

Power Co.,

Sept. 9 filed 1,200,000 shares of

(10/22)

Inc.

Proceeds—To be applied to the retirement of $52,000,000
of outstanding bank notes, due Nov.
25, 1959, with any

remaining balance to be used for general corporate pur¬
poses.
Office—30 Church Street, New York City. Un¬
derwriter—To
be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc. and Goldman, Sachs
& Co. (jointly); Eastman Dillon, Union Securities & Co.
and The First Boston Corp. (jointly).
Bids—Expected
to be
received up to 11 a.m. (EDT) on Oct. 22.
American

Aug.

28

Greetings Corp.

filed

$5,000,000

dinated debentures due

plied by amendment.
and

loans

for

of
Oct.

convertible

sup¬

To retire short-term

—

corporate

subor¬

Price—To be

1, 1979.

Proceeds

general

(9/29)

20-year

Business—

purposes.

eight

weeks.

The company is engaged in the design, manufacture and
sale of greeting cards and gift wrappings.
Underwriters

—Goldman, Sachs & Co., New York, and McDonald &
Co., Cleveland, Ohio.
American Hospital Supply Corp.
April 20 filed 20,610 shares of common stock (par $2) be¬
ing offered in exchange for common stock of Massillon
Rubber

Co.

the

on

basis

of

nine

shares

American

of

PREVIOUS

ITEMS

•

REVISED

ISSUE

Anglo IMurmojit Mining Corp., Ltd.
1 filed 250,000 shares of common stock.
Price
price of 40 cents per share. Proceeds—To be
used to pay for exploration and development of mines
and rest of the funds will be added to general funds of
the company and used for working capital.
Office—
Prince Albert, Saskatchewan, Canada.
Underwriter —
Sept.

—Initial

None.

•

•

Anodyne, Inc., Bayside, L. I., N. Y. (10/15)
Sept. 9 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—For
expansion and general corporate purposes. Underwriter
—Ross, Lyon & Co., Inc., New York, N. Y.
Anthony Powercraft
Sept. 8 (letter of notification)
.

stock (par $10).

common

ADDITION3

SINCE

Registration

po¬

company's Alaska properties. Office—80
York.
Underwriter—To be supplied by

New

in

mulative

convertible

241,200 shares of 5%

cu¬

offered

for

preferred

stock

be

to

subscription by common stockholders at the rate of two
preferred shares for each three shares of common, stock
held.

Price—At par ($1 per share).
Proceeds—To pur¬
inventory, new tools, construction and for working
capital.
Office—5871
E.
Firestone
Boulevard,'- South

chase

Gate, Calif.

Underwriter—None.

W'U-.:?' TT'/T

^

-

Apache Oil Corp.
' '
May 25 filed 350 units of participation in the Apache
Oil Program 1960 and 70,000 rights for the purchase of
common stock (par $1.25).
The offering is being made
only to the stockholders of the company. Each subscrip¬
.

tion to
the

unit in Apache Oil Program 1960, will entitle
to subscribe also to 200 rights for the

a

subscriber

purchase of one share per right of the company's $1.25
par value common stock. Warrants evidencing the rights
prior to Aug. 16, 1960, and will
expire at 2:00 p.m., (CST) on Jan. 31, 1962.
Unless
Apache Oil Program 1960 commences operations on or
before June 30, 1960, all unexercised rights will be void
as of 2:00 p.m.
(CST) on that date, and their purchase
price will be refunded. Price—$12,000 per unit. Pro¬
ceeds
For general corporate purposes.
Office — 523
Marquette Avenue, Minneapolis, Minn.
Underwriter—
APA, Inc., the corporation's subsidiary.

will be nontransferable

—

are to be reserved for sale to the holders
of 6% debentures due 1962 issued
by DeCoursey-Brewis

Minerals

Ltd., the company's parent (payment for the
by such debenture holders may be made by
delivery of debentures at par plus interest with premium

shares

common

for cash

exchange rate).

Purchasers

stock purchase warrants
or

for

the

6%

on

debentures

will

receive

all shares purchased
the parent at the

of

rate of

one for each five shares
purchased. Price—$1.25
share. Proceeds—For general corporate purposes and
working capital. Office—423 Fourth Ave., Anchorage,
Alaska. Underwriter—To be named
by amendment.

per

Alliance Tire

&

Rubber Co.

of Israel.

Proceeds—For expansion.
Agent — Harry E. Brager

Hadera, Israel.
Washington, D. C.

Office—

Associates,

Allied Colorado Enterprises Co.
July 13 filed 5,899,618 shares of class A common stock
and 551,140 shares of class A-l common
stock for issu¬
r

under

ance

outstanding subscription agreements at 75
share and 6,576,200 shares of class A common

cents per

atock for issuance under
outstanding option agreements
at 25 cents per share.
These securities will not be is¬
sued if the options and
subscription agreements are not

exercised.

Proceeds—For working capital and
surplus
of subsidiaries and for
general corporate purposes.
Un¬
derwriters—Allen Investment
Co.,

Boulder, Colo.

Allied
l(

Enterprises Co.
3,000,000 class A common stock

cents).

(par

25

writer—Allen Investment
Co., Boulder, Colo.
Allied

Petro-Chemicals, Inc.
July 14 filed 100,000 shares of class A common stock
(par 10 cents). Price—$4 per share. Proceeds—To be
added

to

company

funds.

Office—Overbrook Hills, Pa.
Underwriter—Philadelphia Securities Co., Inc., Phila¬
delphia, Pa. Statement was withdrawn on
Sept. 16.
Allied Radio Corp. (10/6)
Sept. 3 filed 333,335 shares of common stock
(par $1).
Price

—

To be

supplied by amendment. Proceeds
To
Office—loo North Western Ave.,
Illinois. Underwriter
White, Weld & Co
—

gelling stockholders.

Chicago,
New

—

Investors

filed

Office—

common.

Underwriter—None.

Syndicate,

600,000 shares of

struction

and

national

Inc.

common

stock

Trade

related

expenditures.
Office—513 Inter¬
Mart, New Orleans, La.
UnderwriterLindsay Securities Corp., New Orleans, La. The SEC
had scheduled a hearing, to begin on
Sept. 2, which will
determine whether a stop order will be issued
suspend¬
ing the offering.
American
June

$5

29

filed

share.

per

Inc.

150,000 shares
Proceeds—To

of

common

and

assume

stock.
pay

Price—

an

ing claims in the State of Durango, Mexico, owned by
Compania Minera La Bufa, S. A., by paying to such
company $50,000; to construct and place in working oper¬
ation a mine, mill and accessories
capable of processing
100 tons of gold ore per
day estimated to cost $350,000;
payment of about $15,000 of other obligations; to carry
on with the balance of the
proceeds an exploration pro¬
gram for additional gold and mineral
properties both in
Mexico and the United States. Office
Bank of the
—

Southwest

Beverage Corp.

July 16 filed 950,000 shares
being exchanged for all the
a

Building, Houston, Tex.

Underwriter—None.

★ American Motorists

of

common

stock

group of seven "Golden Age"
companies.
on Aug.
10 approved the
exchange

(par $1),

shares

22

filed
to

for

each

166,666%

holders
Oct.

record

26,

of

stock,

tp

be

outstanding shares of such stock
1959, in the ratio of one new share

eight shares then held.

Price—$12

per

share.

stock, surplus,
writings, to increase

underwriting capacity, and for genral corporate purposes.
Office—4750 Sheridan Road,
Chicago, 111. Underwriter
—None.
Service

Life

Insurance

^Ui^ber of outstanding

Stockholders

2,000,000. Office
Underwriter—None.
American

N°v\?3'

of which

Co.

including, possibly, the acquisition of similarly engaged
companies.

Office—113 Northeast 23rd Street, Oklahoma
Underwriter — First Investment Planning
Co., Washington, D. C.

Okla.

118 N.

11th

sale
are

at

$1.75

issuable

per

under

share.

[Shares

have

agreements with various
in American
Buyers Life Insurance Co.
andAmerican Life Assurance Co.
(both of Phoenix) per¬
mitting them to purchase stock at $1.25
per share.
Sales
personnel have been given the
right to purchase stock

policy holders




of

class

B

share

stock

for

held

each
as

of

Aug. 28 filed 400,000 shares of common
be

the

supplied
in

by

common

amendment.
stocks.

A

stock

shares
record

of

class

date.

A

Price

stock.
Price—
Proceeds—For invest¬
W. 11th Street,

Office—301

Kansas

City, Mo. Underwriter—Jones Plans, Inc., a sub¬
sidiary of R. B. Jones & Sons, Inc.
Aurora

Plastics

Corp.

(10/5-9)

Sept. 2 filed 225,000 shares of
which 150,000 shares are to
of

the

issuing

common

be

sold

stock (par $1) of
for the account

75,000 shares for selling
supplied by amendment.
Proceeds—For general corporate purposes, including the
purchase of additional equipment and raw material,
and for additional working capital.
Office—44 Cherry
Valley Road, West Hempstead, L. I., N. Y. Underwriter
—Burnham
Co., New York.

Jan.

and

company,

stock holders.

Price

To

—

be

Grazing & Pastoral Co., Ltd.

13 filed 4,000,000

shares of common stock. Price—
(56% cents per share). Proceeds—To purchase
cattle; for improvements; to buy additional ranch in
Queensland, Australia; and for other corporate purposes.

At

par

Office

—

None.
•

&

1301

Avenue

Robert Kamon

Bank Stock

filed

11

Cisco, Texas.

L,

Underwriter

Corp. of Milwaukee
605,000

shares

of

exchange for common stock
Ilsley Bank and^ the capital shares of

Bank,

stock, to be
of Marshall

common

in

on

for each

—

President.

is

the Northern

the basi^of Two of the Issuing company's shares
such Marshall

&

Ilsley share, and 10% of the
issuing, company's shares for each such Northern Bank
share. The exchange offer is conditioned upon the issu¬
ing company acquiring by exchange not less than 80%
of the outstanding shares of the other banks, which are
located

in

Milwaukee, and has been approved

the Federal Reserve Board

class

four

/
Investment Fund

on

the condition that the

by
ex¬

change take place by Dec ,3, 1959. The exchange offer
will

expire

on

North Water St.,

Nov.

13,

unless

extended.

Office—721

Milwaukee, Wis.

Bankers Management Corp.

be

Sept. 10 (letter of notification) 300.000 shares of common

Office—
Street, Indianapolis, Ind. Under¬
writer—City Securities Corp., Indianapolis, Ind.

(par 25 cents). Price—$1 per share. Proceeds—•
working capital. Office—1404 Main Street, Houston
2, Texas. Underwriter—Daggett Securities, Inc., Newark,
N. J. Offering—Expected in about 60 days.

added
542

been

108,144 shares

additional

one

and

St., Brooklyn, N. Y.

filed

Insurance Co.

(par $1)
limited voting, to be offered for subscription by holders
of outstanding class A and class B stock at the rate of

—To

Statement effective Aug. 25.
Buyers Credit Co.

Minneapolis.
Associations

also

shares from 250,000

5,000,000 shares of common stock,
4,545,455 shares of this stock are to be offered

public
or

—

of

offered

Sept. 14 filed 375,000 shares of common stock, of which
300,000 shares are to be publicly offered. Price—$3.50
per share.
Proceeds—For general corporate purposes,

3

stock. Proceeds—For the purchase and develop¬
land to be made into a shopping center in St.

Anthony, Minn., and other real estate dealings. Office—
523 Marquette Ave., Minneapolis, Minn. Underwriters—
The issuing company and its subsidiary, The Fund Corp.

Sept.

American

City,

of

Australian

captal

of

Proceeds—To raise the ratio of its
capital
and surplus reserve to premium

offer, and voted to

inCoenr?n
to

ment

Insurance Co.

Sept.

Aug.

outstanding capital stock of

common

ment

option
by its Mexican subsidiary to purchase certain min¬

held

Apache Realty Corp.
13 filed $1,500,000 of 6% subordinated debenture.3
and 360,000 shares of common stock (par $1). Price—
$6,200 per unit of five debentures and 1,200 shares of
Aug.

To

Mines,

American States

issued

Massillon

York.

American

for

of

(par 10
cents), and 200,000 shares of 6% preferred stock (no par
value, $9 stated value), to be offered in unite consisting
of 3 shares of common ($1 each) and 1 share of
pre¬
ferred ($9).
Price—$12 per unit.
Proceeds—For con¬

of

Price—90 cents per share.
Proceeds—For gen¬
eral corporate
purpose^. Office—Boulder, Colo. Under¬
•

25

offered

Colorado

July 13 filed

American

June

Ltd.

Sept. 9 filed 100,000 shares of class A stock. Price—$12.60
per share, payable either in cash or in bonds issued
by
the State

share

Ridge Avenue, Evanston, 111.
Statement effective July 29.

431,200 shares

Canadian

one

2020

(par $1),
publicly and

for

for

common

Alaska Mines & Metals Inc.
Feb. 25 filed 1,431,200 shares of common stock
of which 1,000,000 shares are to be offered

be

supplied

to

North

the

by amendment. Proceeds
general funds of the company.

—

To

Meridian

Ampal-American Israel Corp.
July 30 filed $3,000,000 of five-year 5% sinking fund
debentures, series G, due 1964, and $3,000,000 of 10-year
6% sinking fund debentures, series H, due 1969. Price—
At 100% of principal amount. Proceeds—To
develop and
expand various enterprises in Israel. Office—17 E. 71st
Street, New York. Underwriter—None. Offering—Ex¬
pected sometime during September.

_

stock

For

Bankers Preferred Life Insurance Co.

Jan. 30 (letter of notiifcation) 100,000 shares of common
stock (par $1.60). Price—$3 per share.
Proceeds—For

incidental to operation of an insurance com¬
Office—Suite 619, E. & C. Bldg., Denver, Cokx,
Underwriter—Rings by Underwriters, Inc., Denver 2,

expenses
pany.

Volume 190

Number 5884

.

.

The Commercial and Financial Chronicle

.

(1277)
Basic Materials, Inc.
April 9 (letter of notification)
stock

mon

derwriter—Financial

1,200,000 shares of com¬
Price—25 cents per share.

(par 10 cents).
Proceeds—For mining expenses.

Office—c/o Harold A.
Roberts, President, Arroyo Hondo, Santa Fe, N. Mex.
Underwriter
Hyder, Rosenthal & Co., Albuquerque,
N. Mex.,, Letter to be amended.
—

BBM Photocopy Manufacturing Corp.
(9/30)
Aug. 27 (letter of notification) 1CO7O0O shares of capital
stock (par five cents). Price—$3 per share. Proceeds—
For general corporate
purposes.
Office—42 W. 15th St.,
New York, N. Y; Underwriter—Myron A. Lomasney &
Co., New York, N. Y.
•

Beico Petroleum Corp. (9/28-10/2)
Aug.* 14 filed $7,200,000 of 5.83% convertible subordi¬
nated debentures, due 1974, and 400,000 shares of common
stock (par $1) to be offered in units, each unit consist¬
ing of $36 of debentures and two shares of common
stock.

Price

ceeds—

To ;be

—

For

payment of
Third Ave.,

supplied

general corporate

all

existing

by

amendment.
Office

banks.

to

—

re¬

630

New York. Underwriters—White, Weld &
Goldman, Sachs & Co., both of New York.

Co., and

Berens Real Estate Investment Corp.
July 31 filed $1,200,000 of 6V2% debentures,
and

Pro¬

including

purposes,

debts

80,000 shares of

due 1969,

stock (par $5).

Price—$500
unit, each unit to consist of $300 of debentures and

per

20 shares of

common

stock.

common

Proceeds—For

working cap¬
Un¬

ital.

Office—1722 L Street N. W., Washington, D. C.
derwriter—Berens Securities Corp., same address.
•

Beverages Bottling Corp.
July 6 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share.
Proceeds—
For construction or purchase of additional facilities for
the manufacture, warehousing and distribution of bever¬
ages.
Office—800 St. Anns Avenue, Bronx, N. Y.
Un¬

New

^ Black Hills Chemical & Feldspar Corp.,
Custer, S. Dak.
Sept. 11 (letter of notification) 400,000 shares of com¬
mon stock.
Price—At par (50 cents per share). Proceeds
—For mining expenses. Underwriter—None.
Biochemical

(Financial

Construction

Border

Products

-Navco

Electronic

Industries,

(Aetna

United

Common

Corp.)

Securities

common

States Fidelity
(Bids

Price—To

.

Boston

units of $50 principal

five shares of

common

the manufacture and installation of necessary

equipment.

Office—1609 Texas Street, El Paso, Texas. Underwriters
—First Southwest
Co., Dallas, Texas, and Harold S.
Stewart &

Co., El Paso, Texas.

Border

Steel

;

,

,

Inc.

Rolling Mills,

Sept. 14 filed 226,380 shares of .common stock, to be of¬
fered for subscription to stockholders of record Aug. 31,
1S59, on the basis of 49 new shares for each share then
held. Price—To be supplied by amendment. Proceeds—
For
general corporate purposes.
Office —1609 Texas

Underwriter—None.

Street, El Paso, Texas.
Bostic Concrete

(letter of notification) $250,000 of 8% convertible
July 1, 1969 and 10,000 shares of class A
common stock
(par $1) to be offered in units cf one
$500 debenture and 2,0 shares of class A common stock.

debentures due

Velvex

Mid-City

York Research

A.

,

Tremont
Boston

Aurora

Plastics

and gas properties. Office—Bank of
the Southwest

Houston, Texas. Underwriters
made

Boston Edison Co.

Chemical

(Hardy

Co.

&

&

and

Research,
Brooks

W.

P.

Inc.—----Preferred

&

Inc.)

Co.,

Walker

H.

&

Preferred

Lomasney

5

(Cruttenden,

Co.)

:

Philadelphia

-

r

r

Oil Recovery
Oil

(First

Common

Industries,
(Blair

Corp.)

$300,000

&

Inc.)

Becker

G.

shares

400,006

&

Common

Brothers)

(Vermilye

(Beil

&

underwriting)

Radio Frequency

&

Debentures

Cravin

G.

(Allen

(Goldman,

Gulf Utilities, Inc

.—Common
135,000

shares

Common

Beryllium Corp
Williams

Inc.)

&

Inc.)

Co.,

(Goldman, Sachs & Co.

(Auchincloss,

$5,000,000

Goldman, Sachs & Co.)

and

Southern California Gas Co
;

.

•

(Bids

....

„

United

8:30

a.m.

Bonds

PDT)

Common
shares

229,606

(Myron

,

Edison

Boston
.

....

.

Camloc

•

•

Lomasney

A.

&

Co.)

Co.———.

.(Bids

Acme

Missiles
(Myron

Fastener
.(Van

Bonds

—

Noel

Co.)

Chemical

First

Corp.)

200,000

Missouri Pacific R.R
(Bids
..

National

invited)

Co.',,Inc.—
(White,

Space

shares

Equip. Trust Ctfs.

be

to

$3,225,000

Weld & Co.)

(Bertner

Bros,

and Earl

Edden

—.Common
Co.)

$200/000

Waddell & Reed, Inc
(Kidder,

Peaoody

■Hickok

Common
&

Co.)




80,000

Hickok

shares

Co

shares

Debentures

$750,000

•
•;

,

&

(Wednesday)

Co.,
11

Common.

Inc.)

11

EDT)

a.m.

22

shares

Co

—Bonds

$8,000,00C

(Thursday)
Co

EDT)

a.m.

190,953

Electric

Common

1,200,000 shares

Liquid

Gas

(Monday)

Corp....

Peabody

&

100,000

Co.)

27

Electrical

&

Public

$600,000

..Common

(Blair &

Co.,

Inc.)

(Bids

Electronics
.

,

Southwest
(Rausclier,

j

Airmotive

Pierce

&

Co.)

be

,

(Thursday)
Co

EST)

....

Bonds

$8,000,000

(Tuesday)

received)

Debens.

$250,000,000

Co.;

(Tuesday)

(Bids

11

a.m.

Bonds
EST)

Bids

to

be

(Tuesday)

Invited)

—

Decembers

Common

Rupe & Sons.

Inc.)

$16,000,000

Consolidated Edison Co. of New York, Inc.—Bonds

Corp.—Common

$340,000

Co., Inc. and Dallas
200,000 shares

24

December 1

Common

$300,000

Manufacturing

(Schweickart &

to

November

<

.

29

a.m.

.

Bonds':

$20,000,000

Gulf States Utilities Co

$2,200,000
——

(Morris Cohon & Co.)

11

November 17

Debentures

Co.

Roto-American Corp

—..Bonds

$500,000

Co.—

Instrument

invited)

American Telephone & Telegraph Co

Co.——.Debentures

Co.)

be

Service

(Bids

Common

Miller

Wisconsin

120,000 snares

Instrument

to

October

shares

Co.)

—

$20,000,000

October 28
(Wednesday)
Puget Sound Power & Light Co
(Bids

Common

Lomasney &

A.

1

..Common
shares

(Tuesday)

Florida Power & Light Co.u^x;:

Common

100,000

Co.)
—±

Electrical

Pantasote

Shell

200,000 shares

Components, Inc..—j.

&

Dynex, Inc.

—Common

—

$1,200,000

(Hayden, Miller & Co.) 90,000 shares

Common

Boston

Common

Coi«p

Co.)

&

(Offering to employees)

$1,354,500

Harnischfeger Corp.
(The

Lomasney

(Hayden,

..Common
&

A.

(Shields

$15,000,000

Corp

Alstyne,

Common.

Inc.:

October

Co.)

(Monday)

& Construction

(Myron

•*
.

Common

(Mo.)

Biochemical Procedures, Inc

$300,000

invited)

to be

Debs

$70,000,000

(Bids to be invited)

•

r

invited)

Co., Inc. and William J. Mtricka & Co., Inc.)

(Kidder,

$25,000,000

EDT)

a.m.

October 12

Dow

September 30 (Wednesday)
BBM Photocopy Manufacturing Corp._T__Common

.*

11

California

Debentures

(Offering to stockholders—underwritten by G. H. Walker &
45,000 shares

$30,000,000

Utilities, Inc
Co.)

$1,000,090

Inc

October 26

(Thursday)

Manchester Bank of St. Louis

(Offering to stockholders—underwritten by Kidder, Peabody
&

&

(Bids

$7,200,000

Fair Lanes, Inc
—
Common
(R. S. Dickson-•& Co. and Alex. Brown & Sons) 120,000 shares
„

be

October

$300,000

Co.)

October 8

(Bids

Debentures

Beico Petroleum Corp.——.Debentures & Common
(White, Weld & Co.

Co.)

American Electric Power

_.Common

James

.Debentures

Debentures

Massachusetts

$1,200,000

Inc

(The

—

$3,500,000

Manufacturing Co

Common
& Redpath)

Parker

Service,

Co.)

(Tuesday)

&

October 21

Frantz

Inc.)

$330,000

McDonald & Co.)

and

to

(Bids

Crowley's Milk Co., Inc
Raymond

(Tuesday)

September 29
Greetings Corp

Haupt

(Blair

Columbia Gas System Inc..
American

Turner,

&

(Wednesday)

October 7

&

(Monday)
Inc

Co.)

20

Ginger Ale,

Common
Guerin

Eppler

and

Common

$5,000,000

Corp.)

108,989 shares

Common

Barnes

Co.,

&

$300,000

$20,000,000

$225,000

Co.,

&

Tang Industries, Inc
(David

Co.,

Co., Inc

Sachs

Common
$500,000

Inc.)

&

i

Western

Co

Co.,

(Jaffee, Leverton, Reiner Co.)

(R.. G.

Zale Jewelry

&

-

(Baker, Simonds & Co., Inc. and William J. Mtricka & Co., Inc.)

Debentures

Inc

222,060 shares

Insurance
&

(Baker, Simonds

Yernors

shares

333,335

Co.)

&

Communications,

Common

-

& Co.)

(Kay

$450,000

Co.)

&

19

Dairies,

(Bids

(Tuesday)

;

Preferred

Inc.)

So'uthern Bell Telephone &
Telegraph Co

Common

Weld

Inc.)

Servo Corp. of America

Co.)

$837,200

Corp

(Laird

—Common

(John

Electronic

$300,000

Rad-O-Lite, Inc.
Random House, Inc

Radio

(White,

Common
Co.)

6

Co.,

282,760

Allied

$2,120,000

Co., Inc....

(Myron A. Lomasney

Crystal

Vernors Ginger Ale,
October

Participations

shares

Co...

Co.,

October
&

75,000

(Thursday)

.

(Ira

Inc.)

Hough,

&

(Hirsch

Common
Wasserman

Truman,

and

Natural Gas Co

West Florida

$750,000

Associates.—

(No

,

Daitch

$300,000

—

Inc.

Co.,

&

&

October

Common

N. A. Building

Standard

Treat

Scribner)

15

■

$300,000

Matronics, Inc.

Life

(Amos

&

Common

(Offering to stockholders—underwritten toy Amos Treat
v»'.
.
$250,000 : *:
..
:
/ ■:

.Common
Inc.)

Co.,

&

Bonds

$50,000,000

——..Common

.

shares

150,000

Co.)

Murphy

(Pearson,

.

Common
&

Co., Inc.)

Radiant Lamp & Electronics
Corp

shares

Inc

(Drexel

150,000 shares

Co.)

&

Barney

50,000

Inc.)

Co.,

Dickson &

_____

invited)

Lyon

(Blyth

Common

&

Deane

(Ross,

Mandel & Longstreth)

Corp

S.

shares

Co..

be

Northern Natural Gas

Common

Blauner

and R.

Anodyne, Inc.

shares

Corp

shares

290,035

Co.)

Common

400.000

Brothers)

Tassette, Inc.

Common
:

(Smith,

D.

Photo,

Common

—

(Singer,

$300,000

Co.)

(Wednesday)
Common.

& Co.

October

Inc

&

Common
5,500 shares

Corp

(Bids to

Common

Porce-Alume, Inc.

Inc

Co..

(Milton

42

$550,000

__

Philadelphia Electric

$299,250

Perfect

$600,000

Manpower, Inc.

Southern

Sherman

Microwave

page

Debentures

...

Brothers)

Thrift Drug Co. of Pennsylvania

shares

Common

Common

& Co.)

240,000

120,000 shares

Laboratories,

Systems

on

(Tuesday)

100,000

Bonds

Inc.)

Shoe

(Goldman, Sachs

Common

Co.,

13

Corp

October 14

Butler's

$2,400,000

Inc.)

Co.,

Stearns & Co.)

D.

Continued

■

(Lehman Brothers)

(Monday)

(J. A. Hogle & Co. and Warner, Jennings,

Narda

Inc

Jostens, Inc.

Service

Missile

—Common

Philadelphia

(Dunne

(A.

Electro-Sonic

:

r

Recovery Corp

$450,000

Co.)

&

America....

of

(Bear,

(Lehman

$600,000

&

Corp

Airlines,

Guerdon

Corp.

Common
Malkan

(Arnold

Gateway

Colonial

Bldg.,

issuing company) and certain company offi¬
including W. H. Hendrickson, Board Chairman.

(Lehman

Co., Inc

&

.

—
The offering is to be
best efforts basis by 2338
Sales, Inc. (an affil¬

October

Co., Inc

Brooks

W.

(L.

shares

250,000

Co.)

&

a

$1,015,000

MCA, Inc.

Corp.

►

First

Fodesta

(P.

First

Butler's Shoe Corp.,
Atlanta, Ga. (10/14)
Sept. *16 filed 100,000 shares of common stock
(par $1,)#
of which, 40,000 shares will be
sold for the company's
account and 60,000 shares for the account of
certain,

Common

Brooks &

W.

(P.

$4,000,000

Co.)

September 28 (Monday)
Buckingham Transportation Inc
Central

Chemical

$1,000,000

General Contract Finance Corp
(G.

Bzura

Common

(Offering to stockholders—underwritten by The First Boston
Corp.) 271,553 shares

Dixon

cn

iate of the

(Eurnham & Co.) 225,000 shares

Chemical

The

—

"• /'

"

Bradco

Center—Participations

Corp.

Bzura

Underwriter

I960
Associates, Inc.
'""'-T.
'
Aug. 24 filed $2,500,000 of participating interests under a
Participation Agreement in Associates Oil and Gas Ex¬
ploration Program. Price—$10,000 per unit.
Proceeds—
For the acquisition and
exploration of undeveloped oil

Class A

October

shares

(Friday)

September 25

St., Boston, Mass.
Corp., New York.

■

(Thursday)

Underwriters)

Corp

(Myron

new share for each ten shares
held; rights to expire
Oct. 13, 1959. Price—To be
supplied by amendment.
Proceeds—To reduce short-term bank debt.
Office—132

CALENDAR

Parking

Republic

.

•

June 19

ISSUE

..*■

...

.on

cers,

Co., Inc.

.

Edison Co.

one

stock.

supplied by amendment.
Proceeds—For
the purchase of land and construction thereon, and for

Sept. 30, at 182 Tremont St., Boston

cn

.

(9/25)
Sept. 4 filed 271,553 shares of common stock
(par $25)
to be offered for
subscription by holders of outstanding
common stock of record
Sept. 25, .1959, at the rate of

be

$285,600

3,232

11 a.m. .(EDT)
-12, Mass.
:

Common

Inc

& Guaranty Co.—-Common
EDT)

noon

be offered in

stock, to

amount of debentures and

$750,000

Corp.)

Corp.; Harriman Ripley & Co. Inc.; Lehman Brothers;
White, Weld & Co. Bids—Expected to be received up to

Rolling Mills, Inc.
Sept. 14 filed $2,100,000 of 15-year 6% subordinated
sinking fund debentures, due 1974, and 210,000 shares of

(First

Corp

Securities

writer—To be determined by
competitive bidding. Prob¬
able bidders:
Halsey, Stuart & Co. Inc.; The First Boston

Steel

$300,000

Inc.)

•

Boston Edison Co. (9/30)
Sept. 4 filed $15,006,000 of first mortgage bonds series
G,
due Oct. 1, 1989. Proceeds—To
reduce bank loans. Under¬

(10/12-16)

100,000 shares of common stock (par $1).
supplied by amendment. Proceeds—For
expansion and additional working capital. Office—Los
Angeles, Calif. Underwriter—Shields & Co.. New York.

October 1

Common

—

•

be

(Thursday)

Management,

(Clayton

Procedures, Inc.

Price—$600 per unit. Proceeds:—To pay obligations and
for working capital.. Office
1205 Oil Centre Station,
Lafayette, La. Underwriter—Syle & Co., New York, N. Y.

Sept. 9 filed

Price—To

NEW
September 24
Beverages Bottling Corp._

Management, Inc., 11 Broadway,
Offering—Expected today (Sept. 24).

York, N. Y.

41

$50,000,000

(Tuesday)

Louisiana Gas Service Co
(Bids

to

be

invited)

Bonds
$6,000,000

'

42

The Commercial and Financial Chronicle

(1278)

Citizens'

Continued from page 41

June

Price—To be supplied by amend¬
ment. Proceeds—For additional working capital. Under¬
selling

stockholders.

Sachs & Co., New York;
Co., Inc., Charlotte, N. Car.

writers—Goldman,
Dickson

&

Bzura Chemical

•

and

1979

due

R.

S.

(10/5)

to be offered in units consisting of $500 prin¬
cipal amount of bonds and 50 shares of common stock.
Price—$500 per unit. Proceeds-—To be used for placing
a new plant in
operation in Fieldsboro, N. J. Office—
Broadway and Clark Streets, Keyport, N. J. Underwriter
—P. W. Brooks & Co., Inc., New York.
cents),

Cador

Production

Corp., Far Hills, N. J.
Aug. 18 filed 1,500,000 shares of class A stock (par $1)
and 225,000 shares of class B stock (60c par).
The 225,000

of

shares

sale,

but

class

stock

issued

be

may

B

as

being offered for
commission in connection

are

not

with the distribution of the class A stock.

Price—At par

in

exchange for "property interests." Agent—Dewey &
Grady Inc., Far Hills, N. J. on a "best efforts" basis for
the class A stock only.

-^California Liquid Gas Corp. (10/26-30)
Sept. 16 filed 100,000 shares of common stock, of which
55,000 shares are to be offered for the account of the
issuing company, and 45,000 shares, representing out¬
standing stock, are to be offered for the account of the
present holder thereof (of which latter amount 2,000
shares will

supplied

be sold to certain employees). Price—To be
by amendment. Proceeds—To repay indebted¬

ness, purchase new transport equipment, and for work¬
ing capital. Address—P. O. Box 5073, Sacramento, Calif.
Underwriter—Kidder, Peabody & Co., New York.

California

Metals

Corp.
July 27 filed 2,500,000 shares of common stock. Price—
At par (20 cents per share). Proceeds—For construction
of a pilot plant; for measuring ore; for assaying; and for
general corporate purposes. Office—3955 South State St.,
Salt Lake City, Utah.
Underwriter—Cromer Brokerage
Co., Inc., Salt Lake City.
California

Mutual

value, on the maturity dates of those securities
long as there are bonds remaining unsold in this
offering. No bonds will be reserved for this exchange
offering. Price—100% of principal amount. Proceeds—
To increase or maintain the working capital of the com¬
pany but will be initially applied to the reduction of
short-term notes due within
ceeds

Del.

Sept. 14 filed 140 shares of voting common stock. Price
($5,000 per share). Proceeds—To purchase the
and related facilities of Durable Plywood Co. for
$690,000, with the balance to be used for working capi¬
tal.
Office—Calpella, Calif. Underwriter—The offering
is to be made by Ramond Benjamin Robbins, one of the
nine promoters, the list of which also includes Harry
—At par

•

Camloc

Fastener

Corp.

company.

common

stock

(par $2).

Price —$9 per share. Proceeds—To selling stockholder.
Office—22 Spring Valley Road, Paramus, N. J.
Under¬

writer—Van
•

Alstyne, Noel & Co., New York.

Capital Shares, Inc.

i

Aug. 3 filed 500,000 "Life Insurance Fund" shares. Price
—To be supplied by amendment. Proceeds—For invest¬
ment in the securities of companies
engaged directly or
indirectly in the life insurance business. Office—15 Wil¬
liam Street, New York.

Underwriter—Capital Sponsors,
Inc., New York. Offering—Expected in late October.
•

Central

Corp. (9/28)
Aug. 3 filed 200,000 shares of common stock (par 10c).
Price—$3 per share. Proceeds—For manufacturing and
sales

facilities

and

working

capital, of subsidiaries; to
repay loans. Office—1315 Dixwell Ave., Hamden, Conn.
Underwriter—Arnold Malkan & Co., Inc., New York.
Central

and

South

West

Corp.

Sept. 21 filed 350,000 shares of

(10/29)

common

stock

(par $5).

Proceeds—To prepay and discharge bank
borrowings in
the amount of $3,200,000, and to
purchase during 1959-60
additional shares of common stock of Public Service Co.
of

Oklahoma, Southwestern Electric

Power

Co., and West
Texas Utilities Co. Office—902 Market
St., Wilmington,
Underwriters—To be determined by competitive
bidding. Probable bidders: Blyth & Co., Inc., and Harriman Ripley &Co., Inc.
(jointly); Lehman Brothers and
Del.

Lazard Freres
and

Merrill

ly).

&

Co.

(jointly); The First Boston Corp.
Lynch, Pierce, Fenner & Smith Inc. (joint¬

Bids—Tentatively expected

Oct.

29.

Century Properties, Los Angeles, Calif.
Aug. 5 (letter of notification) 33,880 shares of common
stock (par $1),
being offered for subscription by stock¬
holders of record Sept. 1, 1959 on the
basis of one new

be

debentures

one

Part of the pro¬

year.

retifte outstanding subordi¬
exchanged.
Office—Georgetown,

used

not

to

Underwriter—None.

City Discount & Loan Co.
July 30 (letter of notification) 120,000 shares of common
stock (no par). Price — $2.50 per share. Proceeds — For
working capital. Office—1005 Northeast Broadway, Port¬
land, Ore. Underwriter—R. G. Williams & Co., Inc., New
York, N. Y. has withdrawn as underwriter.
Colonial Corp. of America (10/5-9)
Sept. 3 filed 120,000 shares of common stock (par $1),
of which 60,000 shares are to be offered for account of
the company, and 60,000 shares for account of a
selling
stockholder.

Price

Proceeds—For

be supplied by
capital to finance

To

—

working

future expansion.

amendment.

Office—Woodbury, Tenn. Underwriter

Colorado Water &

Power

Teb. 25 (letter of notification)
$220,000 of 6% unsecured
debentures due April 1, 1964 and
1,100 shares of common

(par $1) to be offered in units of $200 of deben¬
tures
and one share of stock.
Price
$205 per unit.
Proceeds—For working capital.
Office—Suite 421, 901
Sherman Street, Denver, Colo.
—

System, Inc. (10/8)
Sept. 11 filed $25,000,000 of series N debentures due Oct.
1, 1934.

Proceeds—For
be

1959

construction program.

determined

by
Stuart

Un¬

competitive bidding.
& Co. Inc.; Merrill

Probable bidders:
Halsey,
Lynch, Pierce, Fenner & Smith Inc. and White, Weld &
Co. (jointly); Morgan
Stanley & Co. Bids—Expected to
the

up

to

11

(New York Time)

a.m.

office of the company,

Oct. 8

on

120 East 41st Street, New

Ybrk.
Columbian

Aug.

Financial

filed

14

Plans

of

for

—

None.

Offering

Expected

—

some

October.

,t stock and $100 of debentures *nd nine
shares of stock
*rlce—To be supplied by amenu/nent.
Proceeds —- Tc
■onstruct refinery. Underwriter—Lehman

Brothers, Ne*

fork.

Offering—Indefinite.

Commercial
Nov.

28

mon

stock.

Investors

Corp.

(letter_ of notification) 900,000
Price—At

par

(10

cents

shares of

com¬

share).

Pro¬
Office—450 So. Main St., Salt
Lake City, Utah. Underwriter—Earl J.
Knudson & Co.,
Salt Lake
City, Utah.
ceeds—For

per

investment.

Consolidated Development
Corp.
Aug. 28 filed 448,000 shares of common
stock, of which
198,000 shares are to be offered to holders of the
issuing
company's 6% convertible
debentures, and 100,000 shares
are to be offered to
the underwriter, with the
remaining
150,000 shares, in addition to those shares
described
above
the

not

subscribed for by the debenture holders and

underwriter,

Price

—

holders, 75
at

respectively,

For the

which

cents

the

shares to
per

be

be

to

offered

publicly
to

the

offered.

debenture

share, which is equal to the price

debentures

are

convertible

into

common

stock; for the shares to be offered 4o the
underwriter, $1
per share; for the shares to be offered
to the-public, the
price will be related to the current
price of the out¬
standing shares on the American Stock Exchange at the
time of the
offering. Proceeds
For general corporate
—

Office—Calle

purposes.

Cuba.

23,

No.

956, Vedado, Havana,
Underwriter—H. Kook & Co.,
Inc., New York.

•

of certain

any

unsubscribed shares until Oct.

3, 1959.
•

Channing Service Corp.

(by amendment) an additional
$40,000,000
Investment Plan" Programs for the
accu¬
mulation of shares of Institutional
Growth Fund. Office
—85 Broad St., New York
"Variable

City.

ir Cherf Bros., Inc.
Sept. 14 (letter of notification)
stock

5,000 shares of common
$20 per share. Proceeds
For
Office—103 12th St., S. W.,
Ephrata,

(par $10). Price

working

capital.

—

—

Wash. Underwriter—None.

China Telephone
Co., South China, Maine
Aug. 7 (letter of notification) 2,000 shares of
preferred
stock to be offered for
subscription by stockholders and
the company's
subscribers; unsubscribed shares to the
public. Price—At par ($25 per share).
Proceeds—To in¬
stall a dial exchange at East
Vassalboro, Maine; to con¬

struct

a

cable; to

repay




notes, „etc. Underwriter—None.

(par

will be sold for the account
stockholders and 50,000 shares will be

sold for the
company's account.
ceeds—For

rities

Sept. 9 filed
of

$1), of which 200,000 shares
selling

Price—$3 per share. Pro¬
working capital. Underwriter—Clayton Secu¬
Corp., Boston, Mass. Offering — Expected today

(Sept. 24).
•

Underwriter

17

Corp.

filed

99,594 shares of common stock (par 50
being offered to common stockholders of record
Sept. 3, 1959, on the basis of one new share for
each
eight shares then held, with an
oversubscription privi¬
lege; rights to expire on Sept. 30. Price—$12
per share.
cents)

Proceeds

—

For

general

corporate

purposes, including
working capital. Office
501 Park Ave.,
Minneapolis,
Minn. Underwriter—Dean Witter
& Co., New York.
—

Cordillera

Mining Co., Grand Junction, Colo.
Aug. 31 filed 4,234,800 shares of capital
stock, of which
2,179,800 shares are to be offered solely to the holders
of previously-issued
options. These shares, together with
the remaining
2,055,000 shares, may be offered for public

sale
by the
market from

common

Proceeds—For

stock.

Price—

exploation

progam.

St., Regina, Saskatchewan, Canada.
Securities
Ltd., also of

Cumberland

—

Regina.
Crescent Petroleum Corp.,
Tulsa, Okla.
May 26 filed 48;460 shares of 5% convertible pfd. stock
.$25 par) and 12,559 shares of common ($1 par),
34,460
jhares of the preferred and 9,059 shares of
common are
ssuable upon the exercise of stock

;he

assets

1958.

of

Norbute

Corp.

were

options granted when
acquired on Aug. 8,

Underwriter—None.

Crowley's Milk Co., Inc. (10/7-8)
Sept. 10 filed 120,000 outstanding shares of common
stock. Price—At par ($10 per
share). Proceeds—To sell¬
ing stockholders. Office—145 Conklin Ave.,
N.

Y.

Binghamton,

Underwriter

New

—

Auchincloss, Parker

&

Redpath,

York.

it: Crown Zelierbach Corp.
Sept. 22 filed 232,790 shares of

common

stock, to be of¬

fered to those employees of the
company and its subsidi¬
aries who hold options to purchase such shares
granted

to

the

company's

Selected

Employees

Office—343 Sansome Street, San

Calif.

Stock

Francisco,

Crusader Oil & Gas Corp., Pass
Christian, Miss.
May 26 filed 1,500,000 shares of common stock, of which
641,613 shares will be offered on a one-for-one basis to

stockholders

158,387

of

shares
on

a

record

will

for

May

15,

offered

1959.

The

publicly

"best efforts" basis.

amendment.

oy

be

by

Price—To

remaining
the
be

under¬

supplied

Proceeds—For

repayment of notes and
Underwriter — To be supplied

working capital.

by

amendment.
•

Daitch

Crystal Dairies, Inc. (19/19-23)
$3,500,000 of 5V2% convertible subordi¬
debentures, due Oct. 1, 1979. Price
At 100% of
principal amount. Proceeds—For working capital.
Of¬
Sept.

15

filed

nated

—

fice—Bronx,

New

York.

Underwriter—Hirsch

&

Co.,

New York.

Fund,
an

18 filed

stock.

Inc.

additional

1,500,000 shares of

Proceeds—For investment.

common

Office—Camden, N. J.

Denab Laboratories, Inc.
July 31 filed 50,000 shares of common stock (par $2.50).
Price—$10 per share. Proceeds—For general corporate
purposes, including salaries, cars, promotion,
inventory,
the

establishment of branch offices, expenses incidental
obtaining permission to do business in other states,

and

the

—1420

establishment of

East

a contingency
Avenue, Denver, Colo.

18th

Office

reserve.

Underwriter—

None.

Development Corp. of America
29
Registered issue. (See Equity
below.)

June

Dilbert's

General

Corp.

Leasing

& Development Corp.
June 11 filed
$4,400,000 of 20-year 5V2% convertible de¬
bentures, due July 15, 1979 and 1,056,000 shares of com¬
mon stock
(par one cent) to be offered in units consist¬
ing of $50 principal amount of debentures and 12 shares
of common stock.

Price—$51.20 per unit. Proceeds—For
to develop and construct shopping

repayment of notes;
centers

and

a

super-market under existing purchase
oontracts and for
working capital. Name Changed —
Company formerly known as Dilbert's Properties, Inc.
Office—93-02 151st Street, Jamaica, N. Y. Underwriter—
S.

D.

Fuller

&

Co., New York.

October.

Offering—Expected in

DIT-MCO, Inc.
Sept. 8 filed 33,333 shares of common stock. Price—To
supplied by amendment. Proceeds—For general cor¬

be

porate
duction

purposes, including working
of short-term
bank

capital and

the

re¬

borrowings).
Office — 911
Broadway, Kansas City, Mo. Underwriters—Midland Se¬
curities Co., Inc., and
Barret, Fitch, North & Co., Inc.,
both qf Kansas
City, Mo.
•

Dixie Natural Gas
Corp.
July 30 (letter of notification) 277,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—For

for developing leases in West Virginia. Office
Broadway, Suite 1400, New York 6, N. Y. Under¬
Michael Fieldman, 25 Beaver
St., New York.
Offering—Expected this week.
expenses

—115

writer

—

•

Dixon Chemical &
Research, Inc. (9/25)
Aug. 25 filed 10,000 shares of 6% cumulative convertible
preferred stock ($100 par). Price — To be supplied
by
amendment. Proceeds

For general corporate purposes.
Office—1260 Broad St., Bloomfield, N. J. UnderwritersHardy & Co. and P. W. Brooks & Co., Inc., both of New
—

York.

Control Data

Aug.

share.

per

Office—2100 Scarth

to

Commerce Oil Refining Corp.
Dec. 16,1957 filed $25,000,000 of first
mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures dut
Oct. 1, 1968 and 3,000,000 shares of common stock to b«
>ffered in units as follows:
$1,000 of bonds and 48 share#

Angeles, Calif.

Underwriter—None.

in

Street, New

Underwriter
in

cents

Vkr Delaware

Investment

Shares in American Industry, of which $500,000 was for
Single Payment Investment Plans and $500,000 for Sys¬
tematic Investment Plans and Systematic
Investment
Plans With Insurance. Office—15 East 40th
time

80

Mining Corp. Ltd.
filed 260,000 shares of

17

Sept.

Development Co.

$1,000,000

Construction Products
Corp., Miami, Fla.
Aug. 25 filed 250,000 shares of class A common stock

dent, will be offered

Cree

April

writer

Columbia Gas

at

purposes,
writer—None.

Option Plan.

itock

derwriter— To

price at the time of sale. Proceeds—For general
including working capital. Under¬

corporate

pursuant

Co.

share for each 10 shares
held; rights to expire on Oct. 1,
1959.
Price—$4 per share.
Proceeds—To reduce bank
loans.
Office—1758 South La
Cienega

Boulevard, Los
Bley Stein, Presi¬

and

current

—Bear, Stearns & Co., New York.

York.

(9/30)

Sept. 11 filed 150,500 shares of

also

may

nated

be received

Co-Ply, Inc.

Holt, of Eureka, Calif., President of the

market

five-year subor¬

face

at

mill

Ernest

Acceptance Corp.
$600,000 of series F 6%

filed

so

$2,400,000 of 6V2% first mortgage bonds,
240,000 shares of common stock (par 25

12 filed

Aug.

Co., Inc.

and

29

dinated debentures, to be offered to the present holders
of the company's subordinated debentures in exchange,

Thursday, September 24, 1959

...

holders
time

to

thereof

time.

in

the

Price—To

over-the-counter
be related

to

the

•
Dooley Aircraft Corp.
Aug. 14 filed 506,250 shares of common Stock (par one
cent), of which 375,000 shares are to be publicly offered.
Price—$2 per share. Proceeds—To repay loans; to pay

the

$80,000 balance- due on the company's purchase of
the complete rights to the MAC-145
aircraft; and for
working capital, including expenses for advertising. Of¬
fice—105

Mallory

West

Adams

Securities,

underwriter.

St., Chicago, 111. Underwriter—
Inc., New York, has withdrawn as

...

Dow

Chemical

Co.

(10/12)
''
Sept. 3 filed 120,000 shares of common stock to be offered
for sale to employees of
company and certain of its
subsidiary and associated companies. Subscriptions will
be accepted from

announced

on

Oct: 12 through Oct. 30.

Sept. 30.

Price—To be

Volume 190

Number 5884

.

.

.

The Commercial and Financial Chronicle

(1279)

%

Drake Associates!
Aug. 20 filed $5,905,000 of limited partnership interests.
Price—$10,000 for each of 590% units. Proceeds—To buy
the Hotel Drake, located at 56th St. and Park Ave., New
York, from Webb & Knapp, Inc. Office—60 East 42nd St.,

New York. Agents—Domax Securities Corp., and Peter

L'-.j.

Feinberg Securities Corp., both of New York. Offering—
Expected sometime prior to Oct. 1.
Drexelbrook Associates

May

filed

22

partnership

$2,000,000 of

interests, to

be

offered in units.
be

Price—$10,000 per unit. Proceeds—To
various
acquisitions.
Office — Broad &

for

used

Chestnut

Streets, Philadelphia, Pa.

Underwriter—None.

Durrazzo Products, Inc.
Aug. 26 (letter of notification) 2,500 shares of common
stock to be
offered for subscription
by stockholders.

Price—At par

($10|per share). Proceeds—For additional

improvement i and for the purchase of machinery and
equipment. Office—2593 Highway 55, St. Paul 18, Minn.

Faradyne Electronics Corp.
Sept. 1 filed 230,000 shares of common stock (par five
cents) of which 200,000 shares are to be publicly offered.
per share.
Proceeds—For general corporate
including plant expansion, improvement and
equipment.
Office •— 744 Broad St., Newark, N. J.
Underwriters
Netherlands Securities Co., Inc. (han¬
dling the books) and Herbert Young & Co., Inc. (jointly);
Morris Cohon & Co.; Schrijver & Co.; Richard Bruce &

Price—$5

purposes,

—

Offering—Expected in late

Co., Inc., all of New York.
September.

Fidelity Investment Corp., Phoenix, Ariz.
1,799,186 shares of class A common stock,
of which 1,700,000 shares are to be offered publicly, and
the remaining 99,1>86 shares have been subscribed for
in consideration for services rendered in organizing the
company as an incentive to management. The company
has agreed to issue to the organizers 200,000 shares of
class B common stock; and 100,000 class B shares have
June 29 filed

Underwriter—None.

been set aside for issuance to

Dynex, Inc. (10/12-16)
Aug. 6 filed 120,000 shares of common stock (par 25
cents). Price—$5 per share. Proceeds—For general cor¬

the organizers.

porate

writer—None.

purposes, including product research, the pur¬
of new equipment, and expansion. Office — 123

chase

Eileen Way, Syosset, L. I., N. Y.

Underwriter—Myron A.

Lomasney & Co., New York.
ESA

Mutual

Office—1028 Connecticut

Avenue, N. W., Wash¬

ington, D. C.
Edward Steel Corp.,

Miami, Fia.
July 8 filed 140,000 shares of 'common stock (par 10
cents). Price—$5 per share. Proceeds—To repay loans,
to acquire property and equipment, and for
working
capital. Underwriter—Charles Plohn & Co., New York.
Offering—Expected in late October—
•

ways

H.

P.

and highways in the amount of $25 of such break¬

down

insurance

for

public

a

Hotel

Troy

John

R.

the

for

relations

Building,

Boland

&

purchase price of 25 cents, and
publicity program. OfficeNew York.
Underwriter—

and

Troy,

Co., Inc., New York.

Offering—Ex¬

pected during the next two months.
Electro-Sonic

s(ock

Laboratories, Inc.

(10/5-9)

(par

10 cents).

Price—$3 per share.

Proceeds—

To retire

outstanding bank loan; to increase inventories;
for sales and promotional activities; to improve produc¬
tion

facilities

and

to

acquire new

and

improved

tools

machinery; for development and research and for
working capital. Office — 35—54 Thirty-sixth St., Long
Island City, N. Y.
Underwriter—L. D. Sherman & Co.,
New Yrork, N. Y.
and

Electronic Communications,

Inc.

(10/6)

Aug. 28 filed $5,000,000 of subordinated debentures, due
Sept. 15, 1974 (with warrants for purchase of 20 shares
of common stock for each $1,000 of debentures). Price—
— For general
including the repayment of out¬
standing indebtedness, the completion of construction,
and the purchase of additional equipment. Office—1501
72nd St., North. St. Petersburg, Fla. Underwriter—Laird

supplied by amendment. Proceeds

be

corporate

&

purposes,

Inc.
shares of common capital stock

July 22 filed 1,000,000
market.

Proceeds—For

investment.

Office—

Broadway, Denver, Colo. General Distributor—FIF
Management Corp., Denver, Colo.
Northern-Olive

First

Investment

Olive

companies, numbered "second" through "eighth."
Price—$10,084 to $10,698 per unit. Proceeds—To purchase
land in Arizona. Office—1802 North Central

Ave., Phoe¬
Securities Co.. Phoe¬

nix, Ariz. Underwriter—O'Malley
nix.
•

First

Philadelphia

i

(letter of notification) 100,000 shares of class A
stock (par 10 cents). Price—$3 per share (gross
share to brokers selling 2,500 shares or less,
and 45 cents per share to those brokers selling more than
Aug. 21

it Electronics Funding Coip.
(letter of notification) 75,000 shares of common

Sept. 15

Price—S2 per share. Proceeds—
Office—c/o Darius Inc., 90 Broad

(par

To go

to the company.
New York, 4, N.

10 cents).

Y.

Street.

New

30 cents per

2,500 shares). Proceeds—For working capital; general
corporate purposes and to develop
dealer relations.
Business

Underwriter—Darius Inc.,

it First Virginia Corp.
Sept. 16 filed 600,000 shares of class

Corp.
shares

common

to

the

with

and proposes to offer 500,000 of such
holders of Equity General common in

therefor, on a one-for-one basis. The Board
of Directors of Equity General has authorized the issu¬
ance of a maximum of 149,478 shares of Equity General
exchange

preferred stock in exchange for shares of preferred stock
of Development Corp., on the
basis of one share of
Equity General preferred for two shares of Development
Corp. preferred. Office—103 Park Ave., New York City

(9/29)
Aug. 18 filed 120,000 shares of class A common stock
(par $1). Price—To be supplied by amendment. Pro¬
Fair Lanes,

Inc., Baltimore, Md.

ceeds—For working capital and other general corporate
purposes.

Underwriters

—

R.

S. Dickson &

Co., Inc.,

Charlotte, N. C., and Alex. Brown & Sons, Baltimore, Md.




stock

lington, Va. Underwriter—Johnston, Lemon & Co., Wash¬

be

to

Cement
for

mon

exchanged

Co.

for

common

stock

Calaveras

of

the basis of 1.7 shares of Flintkote com¬

on

outstanding share of Calaveras common.

each

agreement whereby
Flintkote on Sept. 30,

The exchange will be pursuant to an
Calaveras

be

will

into

merged

Underwriter—None.

1P59.

• Fuller (H. B.) & Co.
Sept. 18 (letter of notification) 25,000 shares of com¬
mon stock (par $1).
Price—$4 per share. Proceeds—To
retire

some

of the unfunded indebtedness and for work¬

ing capital.

Office—255 Eagle Street, St. Paul 3, Minn,

Underwriter—None.
•

Fyr-Fyter Co.

Aug. 12 (letter of notification) 3,300 shares of 6%
lative

Foto-Video Laboratories,

filed

15

10 cents).

general
bank

Inc.

150,000 shares of class B common stock
Price — $2 per share. Proceeds — For

corporate purposes, including the repaying of
the purchase of new equipment, and for

loans,

working capital.
Office —
Grove, N. J.
Underwriter

cumu¬

Price—At par ($30 per share).
selling stockholders. Office—2 West

preferred stock.

Proceeds—To go to
46th

St., New York 36, N. Y. Underwriter—None. Offer¬
ing—Expected any day.
Gateway Airlines, Inc. (9/28-10/2)
31 filed 400,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For general
corporate purposes, including the purchase of airplanes,

Aug.

parts, and equipment, the retirement of debt, and
of working capital. Office — MacArthur
Field, Islip, L. I., N. Y. Underwriter—Dunne & Co., New

spare

the

increase

York.
•

General Contract Finance

Corp. (9/25)
200,000 shares of convertible preferred
A, ($20 par). Price—To be supplied by
amendment.
Proceeds—To aid in the expansion of the
company's loan and finance company subsidiaries. Office
—901 Washington Ave., St. Louis, Mo.
Underwriter—
G. H. Walker & Co., St. Louis, Mo. and New York, N. Y.
filed

24

stock,

series

General Finance Corp.
Sept. 11 filed 150,000 shares of

common stock. Price—$3
share. Proceeds—For working capital, with $15,000
being allocated for lease improvements and equipment
and supplies.
Office — Santurce, Puerto Rico.
Under¬

writer—Caribbean Securities

Co., Inc., Avienda Candago

609, Santurce, Puerto Rico.
•

General

Flooring Co., Inc. (10/12-16)
$1,500,000 of 6%% debentures, due Oct.
be of¬
fered in units of $100 principal amount of debentures
and 18 shares of common stock.
Price—To be supplied
14 filed

Sept.

1, 1969, and 270,000 shares of common stock, to

amendment. Proceeds—For general corporate pur¬
including the reduction of indebtedness and the
installation of machinery and equipment,

by

ddress— P.

O.

Box

8169,

writers—H. M. Byllesby &

New Orleans, La.
Under¬
Co., Inc., Chicago, 111.; How¬

Orleans,

ard, Weil, Labouisse, Friedrichs and Co., New
La., and Mason-Hagan, Inc., Richmond, Va.

Merchandising Corp., Memphis, Tenn.

General

shares of class "A" common stock

18 filed 250,000

Feb.

(par one cent).
Price—$10 per share. Proceeds—For
working capital and general corporate purposes. Under¬
writer— Union
Securities
Investment Co., Memphii,
Tenn. Statement effective April 24.

April 6 (letter of notification) 225,000 shares of com¬
mon capital stock
(par 25 cents).
Of the total, 195,000
shares are to be offered for the account of the company
30,000 shares for a selling stockholder. Price—$1 per
Proceeds—For furniture inventory and improved

and

share.

merchandising methods, to finance the real estate depart¬
and

ment

36 Commerce Road. Cedar
—
Arnold Malkan & Co.,

New York.

insurance

policy

loans. Office—211-215

Pine

St., Pine Bluff, Ark. Underwriter—Lovan Securities Co.,

Pine Bluff, Ark.

Inc.,
July

four

or

General Underwriters Inc.

New York

Aug. 28 filed 324,433 shares of common stock, of which
9.188 shares are reserved for options, and 315,295 shares

June

18

Balanced

market.

price—At
418

Union

Fund,

Inc.

(par $1).
Proceeds—For investment: Office—

100.000 shares of common stock

filed

St., Nashville, Tenn. Investment

Adviser—J.

Nashville, Tenn. Distributor—Capital
Planning Services, Inc.
,

C. Bradford & Co.,

Foundation Stock Fund,
18

418 Union

C.

Inc.

100,000 shares of common stock (par $1).
market.
Proceeds—For investment. Office—

filed

Price—At

Development
Corp. of
America,
registration statements seeking registration
of securities, as follows:
Equity General. 500,000 shares
of common stock and 149.478 shares of preferred stock:
and Development Corp., 500,000 shared of common stock.
The Equity Corp, is the owner of 5,343,220 shares of
Equity General common stock and proposes to offer
500.000 of such shares to the holders of Equity common
in exchange therefor, on a one-for-one basis.
Equity
General is the owner of 2,399,504 shares of Development
together

common

ington, D. C.

are

130 William Street,

Offering—Expected

any

day.

• Genesco, Inc.
July 29 filed 535,000 shares of common stock (par $1),
to be offered to the common shareholders of The Form-

fit

111.,

Co., Chicago,

Genesco

common

stock.

mon

[Genesco

shares of its

on

the basis of 0.891% shares of

stock for each share of Formfit com¬

common

agreed

has

stock for

an

to exchange

454,318

aggregate of 509,516

or approximately 84.9% of the common stock of
Formfit.]
Office—111 Seventh Avenue, North, Nash¬
ville, Tenn. Underwriter — None. Statement effective

shares

General Corp.
filed

A

County, Va., for the approximate sum of $772,000 from
J. R. Trammell & Co. Office—29'24 Columbia Pike, Ar¬

Co.,

Inc.,

urchase and

subject to the approval of the Federal Reserve System,
purchase up to 3,600 shares of the common capital stock
of The Purcellville National Bank, Purcellville, Loudon

Flintkote

Securities,

York, N. Y. Offering—Expected in three

weeks.

poses,

(par $1). Price—To be supplied by amendment. Proceeds
repay indebtedness, make additional investments
in the common capital stock of subsidiary banks and,

June

29

new

Foundation

None.

Equ5*y

underwrite

security issues. Office—40 Exchange
Place, New York 5, N. Y. Underwriter—First Philadel¬
phia Corp., New York, N. Y.

York, N. Y.

Equity Annuity Life Insurance Co.
April 21 filed $1,000,000 of Variable Annuity Policies,
Price—No less than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contracts.
Proceeds—For investment, etc
Office—2480
16th Street, N. W., Washington. D. C.
Underwriter—

June

A broker-dealer firm formed to

—

distribute

and

derwriter—Summit
New

per

(9/28-10/2)

Corp.

• Fredonia Pickle
Co., Inc.
July 29 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—For
production, equipment, inventory and working capital.
Office—Cushing & Union Streets, Fredonia, N. Y. Un¬

Aug.

Co.

Aug 17 filed 20 partnership interests in the partnership.
Similar filings were made on behalf of other Northern-

(par

Co., Corp., Wilmington, Del.

stock

•

;

Industrial Income Fund,

Financial

—To

Aug. 14 (letter of notification) 100,000 shares of common

To

share/Proceeds

common

E.

Corp.
Aug. 31 filed 160,000 shares of capital stock, of which
100,000 shares are to be publicly offered. Price—$2.50 per
share. Proceeds—To provide funds for the purchase of
vending machines which will be used to distribute auto¬
mobile breakdown insurance" policies on thruways, park¬

•

per

properties and for working capital. Under¬

new

950

Fund, Inc.

of capital stock. Price—To
Proceeds-—For investment.
Investment Adviser—Yates, Heitner & Woods, St. Louis,
Mo.
Underwriter—ESA Distributors, Inc., Washington,
C,

Price—To public, $3

—To be applied to pay interest due on properties and to

purchase

Price—At

June 29 filed 2,000,000 shares
be supplied by amendment.

D.

keep personnel other than

43

St., Nashville, Tenn. Investment Adviser— J.
Nashville, Tenn. Distributor—Capital

Bradford & Co.,

Planning Services, Inc.

Sept. 14.
Gennaro

Hazelton, Pa. Underwriter—Reilly, Hoffman & Co., Inc.,
New York, N. Y.
Offering—Expected in the latter part

September.
Gold

Sept. 16 filed $433,125 of registered 6% debenture bonds,

June

together with 144,375 shares of common stock, and vot¬

cent),

ing trust certificates representing said stock. Price—$3,300

per

unit

bonds and

of

$2,475

principal

shares of

825

common

amount

of debenture

stock. Proceeds

—

To

land and an office building and
garage thereon, in Louisville. Office — 614 Kentucky
Home Life Bldg., Louisville, Ky. Underwriter—None.
assist in the purchase of

Franklin

Discount Co.

of 6-year 8%
Proceeds—To
purchase conditional sale contracts and for making loans.
Office—105 N. Sage St., Toccoa, Ga. Underwriter—None.
Sept.

4

(letter

subordinated

Frantz

of

notification)

debentures.

$50,000

Price—At

par.

Manufacturing Co. (10/21)
190,953 outstanding shares

of common
Proceeds—
To selling stockholders. Business—Company is engaged
in the design, development, production and distribution
of builders' hardware, primarily overhead type garage
door hardware. Office—301 West 3rd St., Sterling, 111.
Underwriter—Blair & Co., Inc., New York.
Sept.

stock.

11

filed

Price—To be supplied by amendment.

Inc.

stock

mon

of

it Francis Co., Louisville, Ky.

Industries,

(letter of notification) 200,000 shares of com¬
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—For additional plant, equipment, retirement of
outstanding notes and payables and working capital.
Office—337 E. Diamond Avenue, 17th & Hayes Street,
Aug. 23

the

Medal

Packing Corp.
shares of common stock

18 filed 572,500

(par one

50,000 common stock purchase warrants. Of
shares 400,000 will be sold for the account of the
and

110,000 by certain stockholders; 12,500 for the
50,000 shares are pur¬
warrants. Price—$1.25 per
Proceeds—For repayment of debt; purchase of

company;

underwriter; and the remaining
chasable upon exercise of the
share.

equipment

and

facilities

and other general corporate

purposes. Office—614 Broad St., Utica, N. Y. Under¬
writer—Mortimer B. Burnside & Co., New York. Name

Change—Formerly

Eastern

Packing Corp.

it Gold Medal Studios, Inc.
Sept. 18 filed 500,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For general cor¬
porate purposes, including
studio equipment, investing
tainment field,

the purchase of additional
in properties in the enter¬

and the provision of funds for a

payment on another building or
E. 175th Street, New York, N. Y.
Malkan & Co., Inc., New York.

down

buildings. Office—807
Underwriter—Arnold
.

Continued

on page

44

44

(1280)

The Commercial and Financial Chronicle

Continued from page 43

American

insurance
Nov.

Employees Variable Annuity

Life

Co.

13 filed

2,500,000 shares of common stock (par $1)
to be offered by company viz: (1) to holders o£ common
stock (par $4) of Government Employees Insurance Co.,
on the basis of one warrant per share of stock held
(1,334,570 shares are now outstanding); (2) to holders of
common
stock
(par $1.50) of Government Employees
Life Insurance Co., on the basis of 1 lh warrants per share
of stock held (216,429 shares are now outstanding); and
(3) to holders of common stock (par $5) of Government
Employees Corp., on the basis of Vz warrant per share of
«tock held (as of Dec. 31, 1958 there were 143,703 shares
of stock outstanding and $539,640 of 5% convertible cap¬
ital debentures due 1967, convertible into shares of com¬
mon at $28.0374 per share.
If ail these debentures were
converted
a

into

stock

common

prior

the

to

record

date,

total of

164,733 common shares would be outstanding.
share. Proceeds—For capital and surplus.
Employees Insurance Bldg.,, Wash¬
D. C. Underwriters — Johnston, Lemon 8c Co.,

Price—$3

per

Office—Government

ington,

Washington, D. C.; Eastman Dillon, Union Securities &
Co., New York; and Abacus Fund, Boston, Mass.
Great

Aug.

American

fered

of
on

ceeds

Publications, inc.
260,000 shares of common stock (par 10
195,000 shares are to be publicly of¬

filed

11

cents)

which
best

a

For

—

effects

basis.

working

Price—At

capital.

Underwriter—Mortimer

B.

Office

Burnside

&

market.

Pro¬

New

—

Co.,

York.

Inc.,

New

York.

Lakes

Bowling Corp,
Aug. 31 filed 120,000 shares of common stock. Price—To
Ibe supplied by amendment. Proceeds—For
general cor¬
porate purposes, including the development of bowling
lanes, bars, and restaurants on various Michigan prop¬
Office
6336 Woodward Ave., Detroit, Mich.
Underwriter—Straus, Blosser & McDowell, (Chicago, Hi.

erties.

—

Great

Western

29

filed

Life

Insurance

500,000 shares of

Co.

common

stock and

op¬

tions to purchase 200,000 additional shares of

outstanding
units, each consisting of five
shares of common stock and an option to
purchase two
additional shares, the units to be offered for
subscription
by holders of the 1,500,000 outstanding common shares

stock,

at

to

the

be

rate

offered

of

one

in

unit

for

each

15

shares

held

on

or

about

Aug. 28, 1959; rights to expire on or about Sept.
.28, 1959. The options evidence (?he right to purchase the
209,000 outstanding shares owned by Great Western
Building & Loan Corp. Price—To be supplied by amend¬
ment.

Proceeds—For
loan
Western Building 8c Loan
be

to
the
subsidiary (Great
Corp.); and the balance will

used

to

increase

capital and surplus. Office—L0LSt., Oklahoma City, Okla. Under¬
writers—G. J.
Mitchell, Jr. Co., Washington, D. C.; and
Purvis & Co.,
Denver, Colo.
^
111

N.

W.

Second

Growth Fund of
America, Inc..
Feb. 4 filed 250,000 shares of

cents).

Price—At

market.

stock

(par

10
investment

Proceeds—For

Office —1825

Connecticut Avenue, Washington, D, C
Advisor—Investment
Advisory
Service,
Washington, D. C.
Underwriter—Investment Manage¬
ment
Associates, Inc., Washington, D. C.
Investment

Guarantee

Mortgage, line,..
Aug. 14 (letter of notification)
$100,000 of 10-year 6%
sinking fund debentures (in denominations of

$1,000).

Each debenture
may be purchased with 100 warrants to
buy one share of class A common stock

(par $10).
The
by way of war¬
31, 1969. Price—90% without
warrants. Proceeds—For investment
purposes.
Office—
725 Failing
Bldg., Portland 4, Ore. Underwriter—None.

right to purchase class
will

termihate

A common stock

Dec.

Guerdon Industries, Inc..
(9/28-10/2)
Aug. 21 filed 400,000 shares of class A common
stock (no
par). Price—To be supplied
by amendment. Proceeds—
To reduce bank
indebtedness by $3,500,000, and to
pav
off $2,500,000 notes.
Office—3732 South Van Dyke Road.
Marlett, Mich. Underwriter—Blair & Co., Inc., New York
;.

•

Harnischfeger Corp.

—

—

Hawaiian Telephone Co.
Sept. 11 filed 290,055 shares
of which will be offered
of record
Sept. 18,

1959,

each

which

seven

will

be

shares

offered

of common

to holders of
on

then
for

stock, a portion
outstanding stock

the basis of

held,

and.

one

the

tained

the

payment

for

of

share

of

by employees.
Proceeds—To be

company's

program,

new

balance

subscription

Price—To be supplied
by amendment.
applied toward the cost of the

construction

$5,300,000 of bank loans ob¬

such
program, and the refunding of deben¬
preferred shares. Office—1130 Alakea Street.
Underwriter—None.

tures and

Heliogen Products, Inc..
Oct. 22, 1958 (letter of
notification) 28,800 shares of
•common stock
(par $1). Price—$5 per share. Proceeds—
-

Kalapaki
Royal Hawaiian Avenue, Honolulu, Hawaii.

Bros. Truck

Co., Inc.
(letter of notification) 285,000 3hares of com
mon stock.
Price—At par ($1 per share). Proceeds—Tt
pay existing liabilities;
for additional equipment; an*
for v/orking capital.
Office—East Tenth Street, P. C
Box 68, Great Bend, Kan.
Underwriter—3irkenmaye
8c Co., Denver, Colo.
IHickok Electrical

instrument Co.

Internationa!

unit, and series D, $3,500,000, 6-year, 5% per unit). Prtoo
of principal amount.
Proceeds
For working

—100%

Internationa!

April

of

common

stock

held;

rights

For payment of past due accounts and
loans and general

working capital.
Office—35-10 Astoria Blvd., L. I. C.
3, N. Y. Underwriter—Albion Securities
Co., 11 Broad¬
way, New York 4, N. Y.

Hemisphere Gas & Oil Corp,.
April 27 (letter of notification) 300,000 shares of com¬
mon-stock.
Price—At par ($1 per share).
Proceeds—
For development ot oil and gas
properties. Office—705




(letter

Tuna

of

Corp.

notification)

stock

common

Proceeds—For

,

^Interstate Fire & Casualty Co.
Sept. 17 filed 85,000 shares of common stock
(par $5).
Price—To be supplied by amendment.
Proceeds—For
expansion. Office — 501 Livingston
Bldg., Bloomingtori,
111.
Underwriter—White, Weld & Co., Inc., New York.
Offering—Expected during the latter part of October.
Investment Trust for the Federal Bar
2ldg.
14 filed 500 Beneficial Trust Certificates in

the basis of $100 principal amount of debentures
shares

3

Wash¬

175,000 shares of claw
(par 50 cents).
Price — $1 per share.
equipment and working capital.
Office
—Pascagoula, Miss. Underwriter—Gates, Carter &
Co*
Gulfport, Miss.
-•
* ' *
*
•
A

looker Chemical Corp.
Aug. 21 filed $24,444,900 of 5% convertible subordinated
debentures, due Sept. 15, 1984, being offered for sub¬
scription by common stockholders of record Sept. 15

30

—

Underwriter—Johnston, Lemon & Co.,
ington, D. C. Offering—Indefinitely postponed.

(10/12-18)

Ohio.

on

Washington, D. C.

capital.

laboratories, and for working capital. Office—Cleveland,
Ohio. Underwriter—Hayden, Miller 8c Co.,
Cleveland,

each

Bank,

Dec. 29 filed $5,000,000 of notes (series
B, $500,000, twoyear, 3% per unit; series C, $1,000,000, four-year 4%
pet

Price—For the debentures; at 100% of principal amount.
For the stock; to be supplied by amendment. Proceeds—
For retirement of bank loans, for the construction of

1959,

Underwriter

—None.

Sept. 9 filed $500,000 of convertible subordinated deben¬
tures, due 1974, together with 100,000 shares of class A
common capital stock, of
which 90,000 shares are to be
publicly offered, and 10,000 shares offered to employees.
(Any unsubscribed shares will be offered to public.)

for

on Nov. 30.
Price—To be supplied by
Proceeds—For construction of a new hotel
Bay, on the Island of Kauai. Office—305

amendment.
at

11

Aug.

Trust.

will

Price—$2,600

the

certificate. Proceeds—To supply
purchase the land at 1809-15 HE

per

expire Sept. 30,

1959. Price—100%

the

proceeds

capital

St., N. W., Washington, D. C., and construct an office
building thereon.
Office—Washington, D. C.
Under¬
writers—Hodgdon & Co. and Investors Service, Inc., both
of Washington, D.
C., and Swesnick 8c Blum Securities
Corp.

—

For

of principal amount,
expenditures. Office — Niagara

Hotel

Corp. of Israel
13 filed 39,000 shares of common stock (par $5'
$1,560,000 of 8% subordinated debentures, due Aug
I, 1974. Price—$1,500 per unit, consisting of 30 common

July
and

cash

to

necessary

Irando

Oil

&

Exploration, Ltd.

7

shares at $10 per share and $1,200 of debentures
at par
Proceeds—To purchase, complete, and furnish various
properties and for general corporate purposes. Office—
11 South La Salle
St., Chicago, 111. Underwriter—None

April 24 filed 225,000 shares of common stock. Price—99
cents per share. Proceeds—To
defray the costs of explo¬

Hycon Manufacturing Co.
Aug. 28 filed 126,316 shares of

purposes.

ration

C

and

the

or

stock.

State of

Price—■

Israel In¬

Development Issue bonds. Proceeds
Office

purposes.

B.

—

New York

Lexington Ave., Clifton, N. J.
Burnside 8c Co., Inc., New

Jamaica Development Co., Inc.
15 filed 105,000 shares of common

June

preparation of the concentrate

advertising
loans

of

its

to

such

being

Leasing Corp

(letter

convertible

6%

of

to

and national pro¬

beverages, and whert
bottlers, etc. Office—

debentures

subordinated

denomination).'

land, Ore.

debentures

Industrial Vinyls,
Aug. 20 filed 200,000

is

principally engaged in sale

Office—Anchorage, Ky.
(W. S.)

Gas Exploration
$25,000 or more.

Pro¬

oil

Underwriter—May 8c Co., Port¬

and

west

manufacture

of

class

1960

Underwriter—None.

Co.

gas

Program,

properties.

Bldg.,

to

be

offered

Proceeds—Acquisition

Houston

in

of

amounts

of

undeveloped

Office—2306 Bank of the South¬

Texas.

Underwriter—None.

Klttanning Telephone Co., Kittanning, Pa.
Aug. 24 filed 14,000 shares of common
stock, to be of¬
fered by subscription to holders
of outstanding common,

Inc.
shares

stock

on

each

share

the basis of

approximately 0.212 new shares for
Price—$25 per share.
Proceeds—In
bank loan in the amount of
$450,000 rep¬

held.

part to repay

a

resenting funds acquired for general
modernization, im¬
provement, and expansion. Underwriter—None.

37th

Ave., Miami, Fla. Underwriters
The
Robinson-Humphrey Co., Inc., Atlanta, Ga., and Clisby &
Co., Macon, Ga.
—

it Knox Glass, Inc.
Sept. 23 filed 200,000 shares of common stock.
PriceTo be supplied
by amendment. Proceeds—Together with
funds to be received from a
$2,000;000 bank loan and
a
$6,000,000 long-term loan from an institutional in¬

it Insul-Cup Corp. off America
Sept. 18 (letter of notification)

300,000 shares of com¬
one cent).
Price—To be supplied bv
Proceeds—For general corporate
purposes.
Office—1938 Park Avenue, New York
City, N. Y. Un¬
derwriter—The James
Co., 12 E. 41st
(par

vestor, will be applied in part to repaymet of all of the
company's outstanding indebtedness, and the balance

amendment.

of

the

proceeds will be used to provide
machinery,
equipment and working capital fcr a
proposed new
plant in the southeastern part of the United
States, and

Street, New York.

be offered first to stockholders on
the basis of one new
share for each four shares held
of record Oct. 10,
1959;.

and

June 8 filed $3,500,000 of
Participating Interests under
Participant Agreements in the company's 1960 Oil and

and

—

(par $1),
20, 1959

Kentucky Central Life & Accident Insurance Co.
Aug. 28 filed 81,717 shares of common
stock, of which
Kentucky Finance Co., Inc. will offer its stockho:d:rs 51,000 shares.
Price—Of 30,717 shares, $115
each; and of
51,000 shares, $116 each.
Proceeds—To selling stock¬

($500

it Insurance and Bank Stock Fund, Inc.
Sept. 22 filed 10,000,000 shares of common stock.
Office
—Little Rock, Ark.
Underwriter
Investment Fund
Management Corp., 800 W. Third St., Little
Rock, Ark.
Inter-Island Resorts, Ltd.
Sept. 10 filed 99,000 shares of common stock
(par $3) to

Aug.

shares for each share held;
rights
20, 1959, unsubscribed shares to

rings, graduation announcements, yearbooks and diplo¬
mas.
Underwriter—A. G. Becker &
Co., New York, and
Chicago.

Office—522 S. W. 5th Ave¬

Offering—Expected in November.

stock

Jostens, Inc. (9/28-10/2)
Aug. 31 filed 290,035 shares of class A common stock
(par $1). Price—To be supplied by amendment.
Pro¬
ceeds—To selling stockholders.
Business—The company

of common stock
(par 10
cents). Price—$2.50 per share.
Proceeds—For the pur¬
chase of machinery and
equipment to expand the com¬
pany's facilities for handling
thermoplastics, to reduce
current bank
borrowings, and for general corporate pur¬
poses including the addition of
working capital. Office—

stock

Sept.

on

record

—

Kilroy

Price—100% of principal amount.

/

expire

new

of

per share. Proceeds—To be used for
purchase of land, cattle, machinery and
equipment,
fishing lodge, and development expense. Office
1841
North Meridian St.,
Indianapolis, Ind. Underwriter—
None. Statement effective
Aug. 31.

subordinated

denomination)

6%

stockholders

the

holders.

($1,000

to

public. Price—$10

Statement effective

$200,000

convertible

ceeds—For working capital.
nue, Portland 4, Ore.

a

.

notification)

offered

basis of 2%

on

fileo

W.

Can,

Underwriter—None.

Underwriter—Mortimer

corpo¬

in

ing, 821 17th Street, Denver, Colo.
Sept. 1.

mon

or

cuit television. Office—369

stock for each share of
Volunteer stock.
The exchange
LDeriod will expire Oct. 2,
1959, unless extended by
Ideal. No
extension, however, will be made beyond Dec.
1, 1959, unless 80% or more of the
outstanding shares of
the common stock of
Volunteer are tendered on or before
said date.
If 80% or more of such
common
stock has
been so tendered
Ideal, at its discretion, may continue
its exchange.
Office—500 Denver National Bank Build¬

N.

Sask.,

Electronics, Inc.
Sept. 4 (letter of notification) 125,000 shares of common
(par five cents). Price—$2 per share. Proceeds—
For development of power
megaphones and closed cir¬

675,000 shares of capital stock.
These
are
being exchanged for all (but not less than
80%) of the common stock (par
$1) of the Volunteer
Portland Cement Co., in the ratio of
3% shares of Ideal

5511

ac¬

stock

shares

$50,000

the

corporate

ITI

ideal Cement Co.

1

common

payable in cash

City.

Colo

June

for

other

Regina, Sask., Can,

—For general corporate

Bldg., Denver, Colo. Underwriters— Pur
vis & Co. and Amos C. Sudier
& Co., both of Denver

31

and

for

York, N. Y.

enfranchising cf bottlers, the local

July

also

dependence Issue

600,000 shares of common stock (par $11
per share.
Proceeds—To further the

necessary to make
704 Equitable

'•

properties

it Israel Development Corp.
Sept. 22 filed 200,000 shares of

filed

purposes and

motion

of

properties;

$27.50 per share,

inc.

Price—$2.50
and

other

—

—

June 29

development

of

Office—1950 Broad St.,
Regina,
Underwriter
Laird &
Rumbali,

common

issued to Avco

it Hyde Finance Co.
Sept. 15 (letter of notification) 45,750 shares of common
stock. Price—At par ($5.50
per share).
Proceeds—For
working capital. Office
45 Broad St.,
Boston, Mass.
Underwriter—None.
I

and

quisition

stock, which
Corp. on Dec. 8, 1953, at $2,375 per
shares, and which will now be publicly offered by Avco.
Price—To be related to the
prices prevailing in the
over-the-counter market at the time, or
times, the stock
is sold.
Office—1030 South Arroyo Parkway, Pasadena,
Cailf. Underwriters—The
offering will be made through
registered brokers and dealers who are NASD members.
were

Hod us trial

(9/39)

Aug. 28 filed 200,000 shares of common stock
(par $10)
Price—To be related to the market
price of outstanding
shares on the American Stock
Exchange at .the time of
the offering.
Proceeds
In part to
repay outstanding
■unsecured short-term bank
loans, expected to approxi¬
mate $4,000,000, with the
balance to be used for
general
corporate purposes.
Office
4400 W. National
Ave.,
Milwaukee, Wis. Underwriter—The First Boston
Corp.,
New York.

for

Hickerson

March

rate

common

rants

rights to expire

Earle

Falls, N. Y. Underwriter—Smith, Barney 8c Co., N. Y.

Great

June

Bank

Building, Portland 5, Ore. Underwriter
Hensley Co., Inc., 4444 California Avenue
Seattle, Wash.
—D.

Government

Thursday, September 24, 1959

...

..

for

general

corporate

purposes.

Barney & Co., New York.
•

Lee

National

Life

Underwriter—Smith,

.

Insurance

Co.

June

11 filed 200,000 shares of
common stock (par
500)
being offered for subscription by holders of
outstanding

stock
as

of

on

the

Sent.

Price'—$5

basis of

1,

per

one

new

share for each share held

1959; rights to expire on Sept. 30, 1959.
share to stockholders; $6 per share to the

_

Volume 190

Number 5884

The Commercial and Financial Chronicle

...

public. Proceeds—To increase capital and
surplus. Office
1706 Centenary

Boulevard, Shreveport, La.

—None.

Underwriter

Statement effective Sept. 1.

Lee Telephone Co. Sept. 8 (letter of notification) 20,888 shares of

'%

~

.

common

(par $10) to. be offered to stockholders of record
Sept. 19, 1959 on the basis of one new share for each 9%
shares then held; rights to expire in 15
days. Price—$14
share. Proceeds—To be used to curtail short-term
bank loans. Office—127 E. Church
St., Martinsville, Va.

per

Underwriter—None.
Lenahan Aluminum Window Corp.
28 filed 157,494 shares of common stock, to be
offered initially to stockholders on the basis of one
.

July

share

for

standby).

Price

two

shares

owned

(with

15-day

a

$4 per share to stockholders; $5 to
Proceeds—For inventory and for working capi¬

public.
tal.

each
—

Office—Jacksonville, Fla.

Underwriter—Plymouth

Bond & Share
Corp., Miami, Fla.
Lenkurt Electric Co.

Aug. 31 filed 10,000 outstanding shares of class
mon

stock.

Price—$83.31

stockholder.

Calif.

Office

per

B

com¬

share. Proceeds—To selling

1105

—

County

Road,

San

Carlos,

Underwriter—None.

Lester

Engineering Co.

Sept. 2

(letter of notification) $300,000 of 6% convert¬
ible subordinated debentures due
Sept. 15, 1976 to be
offered for subscription by common stockholders on the
basis of $50 of debentures for each 30 shares held. De¬
bentures are convertible into common stock at $10
per
share. Price—At face amount. Proceeds—With a

long-

term

further

plied by

erlands Securities

including the purchase from Grant Ave. Realty
Corp., at seller's cost, about 6.25 acres of Cleveland land,
on
which a building is being constructed which
wil|
house the issuing company's executive offices and Cleve¬

development and expansion. Underwriter—Neth¬
Co., Inc., New York, N. Y. Offering—
Expected sometime in September.
"

.

stock

new

(1281)

loan, for purchase of leased property and plant ex¬
Office—2711 Church Avenue, Cleveland, Ohio.

pansion.

Microwave Electronics Corp.
July 2 filed $500,000 of 10-year 5% subordinated deben¬
tures due July 1, 1969 together with 250,000 shares of
common stock
(par 10 cents) to be offered in units of
$10,€00 principal amount of debentures and 5,000 com¬
mon shares.
An additional 138,000 shares may be issued
in connection with the company's restricted stock option
plan. Price—$10,500 per unit.
Proceeds—To purchase
machinery, equipment and other fixed assets, for operat¬
ing expenses, and the remainder for working capital.
Office—4061 Transport St., Palo Alto,?Calif. Underwriter
—None.
Financial Adviser—Hill, Richards & Co., Inc.,
Los Angeles, Calif.
Mid-America Minerals, Inc.
22 filed $921,852 of Working

June

Interests and Over¬
riding Royalty Interests in 26 oil and gas leases covering
lands in Green and Taylor Counties, Kentucky, some
of the interest

being producing interests and some nonproducing. The offering is to be made initially to par¬
ticipants in the Mid-America Minerals, Inc., 1959 Fund.
Price—$2,221.33 per smallest unit. Proceeds—For invest¬
ment in oil and gas lands.
Office—Mid-America Bank
Bldg., Oklahoma City, Okla. Underwriter—None.
Sept.
Gas

11

filed

•

in

Oil

and

Price—150 units will be offered at $10,000
each, and 150 units will be offered at $2,500 each. Pro¬
ceeds—To facilitate the completion of oil and gas wells.
Office

Mid-America

500

—

City,

Okla.

on

Underwriter—First Cleveland Corp., Cleveland, Ohio.

"best

a

Bank

Underwriters—The
efforts"

basis

Building, Oklahoma
offering will be made

the

by

issuing company

and

Aug. 28 (letter of notification) 63,000 shares of common

duce

stock

bank

indebtedness

and

for

Midamco, Inc., its subsidiary.
•

Missile Systems Corp.

working
capital. Business—Engaged in the production and distri¬

and

television, etc. Underwriter—

Lehman Brothers, New York.
M. & S. Oils Ltd.
cents

stock.

common

Price—60

share.
Proceeds — For exploration, develop¬
ment and acquisitions.
Office—5 Cobbold Block, Saska¬
per

toon,

Saskatchewan, Canada.
Underwriter — Cumber¬
land Securities Ltd., Regina, Saskatchewan, Canada.
Mack Trucks,

Sept.

filed

15

ferred

Inc.
111,740 shares of

stock

5xk%

cumulative

pre¬

($50

par), with attached warrants (1959
issue), to purchase 55,870 shares of common stock. Office
—Plainsfield, N. J.
Madison Gas & Electric Co.

Sept. 15 filed 82,000 shares of common stock, to be of¬
for subscription
by the holders of outstanding
stock

the

on

five shares held

as

basis of

one

new

share

for

each

For general corporate

—

Office—Madison, Wis.

Underwriter—None.

•

Magnuson Properties, Inc.
June 29 filed 500,000 shares of class A common stock
(amended on Aug. 24 to 150,000 shares of 6V2% cumu¬
lative convertible preferred stock, par $10), and 150,000
shares

of

class

A

stock, par $1, with
stock purchase warrants. Each share of class A
common

common
common

National Life &

Casualty Insurance Co.
250,000 shares of common capital stock:
holders of certain of company's life
insurance policies issued on or prior to Dec.
31, 195%
and to certain employees.
Price—$4.44 per share. Pro¬
ceeds— To increase capital and
surplus. Office — 2300

Corp.
June 8 filed 15,000 shares of common stock to be offered
for sale in Michigan and Pennsylvania. Price—$10 per
share. Proceeds—To provide additional working capital
for the purchase of vendors' interests in conditional
sales contracts and other like evidences of indebtedness.
Office—11746 Appleton

Avenue, Detroit, Mich.

Under¬

Statement effective Aug. 3.

it Montesano Development Corp., Montesano,Wash.

(letter of notification) 7,966 shares of common
stock. Price—At par ($25 per share). Proceeds—To pur¬
chase

real property and for development of said prop¬
Underwriter—None.

erty.

N. A.

Building Associates

(9/28-10/2)

—To

supply the cash and incidental expenses necessary
the purchase of the National Association Building,
West 43rd St., New York.
Office—60 East 42nd St.,

to
25

New York.
•

Narda

June

16

one warrant entitling the registered holder
purchase one share of such common stock at an initial
price of $11 per share. Price—For preferred, at par; and
for class A, $10.10 per share. Proceeds—$291,099 is to

cents)

to

North

Corp.

31, 1960 for
releases; $465,000 will be paid
acquired by members of the Magnuson family

notes

in

the

transfers

of

subsidiaries

and

properties

to

the

company; $106,000 will be used to close certain options
and purchase contracts covering lands in the Melbourne-

Cape Canaveral
general

funds

corporate
Fla.

area;

of

the balance will be added

the

purposes.

and

company

Office—20

S.

E.

used
3rd

to

the

50,000 shares of common stock (par 10
and 50,000 warrants to be offered in units, con¬

for

general

Ave.,

Miami,

Underwriter—Blair & Co. Inc., New York. Offering

—Expected this Fall.

Manpower, Inc., Milwaukee, Wis. (9/28)
Sept. 2 filed 150,000 shares of common stock (par $1).
To be supplied by amendment.
Proceeds
To
selling stockholders. Business—Provides temporary help
—

—

services for

Plankington Ave., Milwaukee,
Underwriter—Smith, Barney & Co., New York.

Wis.

York.
National Co.,

•

Nationwide Auto

Corp.

(letter of notification) 75,000 shares of common
(par value 10 cents) and $100,000 of 6% five-year

convertible
and

debentures

$1,000 each.

in

denominations

Price—For the

of

$100, $500

common

(9/30)

Inc., Washington, D, C.
•

Navco Electronic Industries, Inc.
Aug. 18 (letter of notification) 142,800 shares of common,
stock (par $1). Price—$2 per share. Proceeds—To pur¬
chase

the

ing

retirement

of

bank

a

loan

in

the

amount

of

was incurred to retire certain
debentures. Office — 61 Sherman St.,

5% con¬
Maiden,
Underwriter—White, Weld & Co., New York.

and

to

facilities and

expand

new

its overall

equipment into




capacity; to
a new

move

its

building and for

Office—1211

4th

N. Y.

Nedow

Oil

Tool

Co.

May 5 (letter of notification) 150,000 shares of common*
stock (par 50 cents). Price—$2 per share. Proceeds—To
acquire fishing tools for leasing; and for working capital.
Address—P. O. Box 672, Odessa, Texas.

Underwriters—

New West Amulet

Mines, Ltd.,

July 30 filed 200,000 shares of outstanding capital stock
(par $1). Price—To be related to the current marker*:

price on the Canadian Stock Exchange at the time of the*
offering. Closing price Sept. 4 was 85 cents. Proceeds—*
To selling stockholder. Office—244 Bay Street, Toronto,
Canada.

Underwriter—Willis

E.

New York. Statement withdrawn

Burnside

&

Co., Inc.,

Sept. 14.

on

Nielsen-Tupper Instruments, Inc.
(letter of notification) 29,399 shares of class A.

Aug. 19

stock. Price—At par ($1 per share). Proceeds
purchase machines, tools, office equipment, furni-*
ture, drafting and printing equipment and for working
capital. Office — 1411 Fourth Ave., Seattle 1, WashUnderwriter—Crawford Goodwin Co., Seattle, Wash.
common

—To

• Nord Photocopy & Business
Equipment Corp.
July 21 filed 100,000 shares of common stock (par IO
cents). Price—$5 per share. Proceeds—To reduce bank:
debts and for general corporate purposes.
Office—New
Hyde Park, L. I., New York. Underwriter—Myron A.
Lomasney & Co., New York. Offering — Expected thw*

•

North American

Cigarette Manufacturers, Inc.
of common stock (par IO
cents). Price—To be supplied by amendment. Proceecitt
—For working capital, advertising and sales expenses*,
and additional machinery.
Office—521 Park Avenue,

July 29 filed

Securities
on

150,000 shares

Underwriter—American

Diversified Mutual

Co., Washington, D. C. Statement withdrawn

Sept. 17.
North Carolina Telephone

Co.

Sept. 4 filed 576,405 shares of common capital stock, te»
be offered for subscription by holders of outstanding
stock in the ratio of two new shares for each five share#
held.

Price—$2

edness

per

share.

Proceeds—To reduce indebt¬
used as working

with the balance, if any, to be

capital. Office—Matthews, N. C. Underwriter—One or
more
security dealers will be offered any shares nofe
subscribed for at $2 per share.
Northern

Insurance

Co. of New York

of Maine Bonding &
a

share

Casualty Co. at the rate of 56/lOOths*
for each share of capital stock

of Northern

(par $10) of Maine. The exchange offer will expire at the
31, 1959, provided that at least

80,000 shares of Maine stock have been tendered for ex¬
change prior to the close of business Nov. 9, 1959. In the
event less than 80,000 shares of Maine stock are tendered

Mass.

National Citrus Corp.

April 20

(letter of notification) 150,000 shares of com¬
Price—At par ($2 per share).
Proceeds—
equipment, inventory and working capital. Ad¬

stock.

mon

new

dress—P.; O.

Box 1658, Lakeland, Fla.
Underwriter—
Campeau Co., Inc., Detroit, Mich. Offerings-Ex¬
pected in' September. Statement to be amended.
R.

•

F.

National

Cleveland

Cleveland, O. (9/29)
Aug. 18 filed $600,000 of convertible subordinated de¬
bentures, due Sept. 1, 1971. Price—To be supplied by
amendment.
bank

Corp.,

Proceeds—To be used to retire

short-term

loans and for additional working capital.
&

Co.

Inc.,

Under¬
Milwaukee, Wis., and Mer¬

rill, Turben & Co., Inc., Cleveland, Ohio. Offering—Ex¬
pected this week.
National

Aug. 4 filed
Price

$1

Industrial

Minerals

Ltd.

150,000 shares of common stock (no par).
per share.
Proceeds •— To retire indebt¬

Office

metals

inventory and for
St., Santa Monica*
Corp., New York*
Offering—Expected today (Sept. 24).
capital.

Underwriter—Aetna Securities

close of business on Dec.

edness for construction of plant and for other

Metallurgical Processing Corp., Westbury, N. Y.
Aug. 6 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
retire debts; to acquire new equipment for
processing

plant, equipment, material,

a

vertible

Evans &

Co., Kansas City, Mo.

Inc.

$675,000, which

stock, $2 per
share.
Proceeds
For working capital.
Office — 940
Riato Bldg., Kansas City, Mo.
Underwriter—McDonald
—

Leasing System,

of

writers—Loewi

stock

Underwriter—

present holder thereof. Price—To be supplied by amend¬
general corporate purposes, includ¬

New York.

Sept. 1

Ariz.

Sept. 10 filed 56,000 shares of capital stock (par $12.50>,
to be offered in exchange for shares of the capital stock

For

Credit

Phoenix,

of the company and 50,000

Matronics, Inc. (9/28-10/2)
June 29 filed 200,000 shares of capital stock
(par 100).
Price—$3.75 per share. Proceeds—For sales promotion,
production test equipment, research and development,
demonstrators for special systems,
receivables, inven¬
tories, prepayment of notes and other purposes. Office
—558 Main St., Westbury, L. I., N. Y.
Underwriters—
Vermilye Brothers; Kerbs, Haney & Co.; Mid-Town
Securities Corp.; and Cortland
Investing Corp., all of
Mercantile

Inc.

(par $1)
150,000 shares are to be offered for the account
shares for the account of the

of which

Avenue,

July 16 (letter of notification) 142,500 shares of commcR
stock (par 10 cents).
Price—$2 per share. Proceeds—■
For financing of leased cars and for general corporate!
purposes. Underwriter—Investment Bankers of America,

Aug. 28 filed 200,000 shares of common stock

comprehensive range of business require¬

a

Office—820 North

ments.

of common stock reserved for issuance to key
employees pursuant to options. Price—To be supplied
by amendment. Proceeds — To be used to retire bank
loans. Underwriter—Milton D. Blauner & Co., Inc., New

ment. Proceeds—For

...

•

Price

of one share of common stock with attached
warrant entitling the holder to purchase one additional
share.
The statement also includes an additional 10,000

•

Central

New York.

(10/5-9)

filed

shares

on

to

None.

sisting

be expended during the period ending Aug.

Underwriter—None.

Microwave

filed

offered

week.

Sept. 4 filed $2,120,000 of Partiaipations in Partnership
Interests in Associates. Price—$10,000 per unit. Proceeds

stock carries

mortgage payments and

be

to

Mobile Credit

of the record date. Price—To be sup¬

plied by amendment. Proceeds
purposes.

Hollywood, Calif. Underwriters—J. A. Hogle &
Co., New York, N. Y. and Warner, Jennings, Mandel &
Longstreth, Philadelphia, Pa.

Sept. 6

fered

common

(par 10 cents). Price—$4.75 per share. Proceeds
short-term bank notes; to purchase equipment
working capital. Office — 11949 Vose Street,

for

writer—None.

corporato

operations. Underwriter—C. E. Unterberg, Towbin

March 25

•

North

May 11 filed 390,000 shares of

,

(10/5-9)

To repay

bution of filmed series for

general

To be designated.

MCA, Inc. (10/5-9)
Sept. 8 filed 400,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
short-term

land

Calif.

Fund.

Proceeds—For

Co., New York.

working

Mid-America

Minerals, Inc.
$1,875,000 of Participations

amendment.

purposes,

and

—

the

remainder

will

be

used

for

liabilities,
operating capital.

Regina,

Saskatchewan, Canada. Underwriter—
Laird & Rumball Ltd., Regina, Saskatchewan, Canada.
—

it National Key Co., Cleveland, Ohio
Sept. 17 filed 200,000 shares of class A common stock
(par 50 cents) of which 75,000 shares are to be sold for
the account of the issuing company and 125,000 shares
lor the account of selling stockholders. Price—To be sup¬

prior to the close of business Nov. 9, 1959, no shares will
be exchanged and all shares of Maine stock will be re¬
turned to the tendering stockholders. Office—83 Maiden
Lane, New York 38, N. Y.

it Northern Natural Gas Co. (10/15)
18 filed 200,000 shares of cumulative preferred
($100 par). Price—To be supplied by amendmentProceeds—For general corporate purposes, including th«r
Sept.

stock

providing of funds for the company's 1959 construction
program, the repayment of a portion of the bank loans#
incurred therefor, and the purchase of securities to b*
issued by subsidiary companies for the costs of their
construction. Office—2223 Dodge St., Omaha, Neb.
Un¬
derwriter—Blyth & Co., Inc., New York.
Northern

Properties,

Inc.

-

stock (par $2.50).
acquire and develop

Sept. 8 filed 150,000 shares of common
Price—$5 per share. Proceeds—To
various properties in

New York State.

Office—Hartsdalfc,

N. Y. Underwriter—Alkow & Co., Inc.,

New York. Offer¬

ing—Expected in late October or early

November.

Valley Sewerage Co.
June 30 (letter of notification)
Oak

^

$145,000 of 5%% firs*

mortgage bonds series of 1958. Price—At par. Proceeds
—To repay to Oak Valley, Inc. a portion of the cost oil
construction of sewerage collection

and disposal system

Continued

on

vaae

<W

46

The Commercial and Financial Chronicle

(1282)

• Pik-Quik,

Continued jrom page 45

and expenses of financing. Office
—330 Main St., Mantua, N. J.
Underwriter—Bache &
Co., Philadelphia, Pa.
and to pay the costs

Valley Water Co.
(letter of notification)

Oak

June

30

$125,000 of 5V2% first

tem; to pay the cost
the company's supply

of

a new

12 inch well to increase

of water; and to pay the costs and
expenses of financing.
Office—330 Main St., Mantua,
N. J.
Underwriter — Bache & Co., Philadelphia, Pa.
Oil, Gas & Minerals, Inc.
/
April 2 filed 260,000 shares of common stock (par 35
cents.
Price—$2 per share. Proceeds—To retire bank
loans and for investment purposes.

Office—513 Interna¬

Mart, New Orleans, La. Underwriter —
Co., Inc., New Orleans, La. The SEC
has scheduled a hearing, to begin on Sept. 2, to determine
whether a stop order should be issued suspending the
offering.

tional

Trade

Assets Investment

★ Oil Recovery Corp. (10/13)
Sept. 15 filed $550,000 of 6% convertible subordinated
debentures, due 1974, and 5,500 shares of common stock,
to be offered in units of $500 of debentures and 5 shares
of stock. Price—To be supplied by amendment. Pro¬
ceeds
For general corporate purposes, including the
acquisition and development of properties for secondary
oil recovery purposes. Office—405 Lexington Ave., New
York City.
Underwriter—Lehman Brothers, New York.
—

Oreclone Concentrating Corp., New York, N. Y.
May 20 filed 200,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds — For repayment
of outstanding obligations and for working capital. Un¬
derwriter—Investment Bankers of America, Inc., Wash¬
ington, D. C. Offering—Expected any day.
Pan-Alaska

Corp.
Aug. 7 filed 2,612,480 shares of common capital stock to
be issued pursuant to options held by Marine Drilling,
Inc. Latter company will, in turn, offer its stockholders
rights to purchase two shares of Pan-Alaska common, at
20 cents a share, for each share of Marine Drilling stock.
Marine Drilling also plans to sell 250,000 shares of the
680,000 shares of Pan-Alaska it now owns. Underwriter
—Any stock not subscribed for by holders of Marine
Drilling will be publicly offered by Crerie Co., Houston,
Texas and Clark, Landstreet & Kirkpatrick, Inc., Nash¬
ville, Tenn., at a price of 20 cents a share.
★

Pantasote Co.

(10/12-16)

Aug. 28 filed $2,700,000 of 6% subordinated sinking fund
debentures, due Oct. 1, 1974 (with warrants attached en¬
titling the holder to purchase 50 shares of common stock
of the issuing company for each $500 of
debentures).
Price

—

100%

and

interest.

accrued

Proceeds

t-

For

construction, equipping, and placing in operation of a
plant, with the balance to be used for general cor¬
porate purposes. Office—26 Jefferson St., Passaic, N. J.
new

Underwriter—Blair & Co. Inc., New York.

Participating Annuity Life Insurance Co.
$2,000,000 of variable annuity policies. Pro¬
For investment.
Office
Hathcock Building,
Fayetteville, Ark. Underwriter—None.

June 4 filed
ceeds

—

—

★ Pathe News, Inc.
Sept. 17 filed 400,000 shares of common stock (par 10
cents) with warrants to purchase an additional 100,000
common
shares at $3.25 per share. Price
$3.75 per
share, with warrants. Proceeds—For general corporate
—

purposes,
reduction

including the addition of working capital, the
of
indebtedness, and the provision of the

$173,000 cash required

upon

the exercise of

option to
purchase the building1 at 245-249 W. 55th St., New York.
Office—245 W. 55th St., New York. Underwriter—Chauncey,

an

Walden, Harris & Freed, Inc., New York.

Offering

—Expected in about 30 days.
Peckman Plan Fund, Inc.,
Pasadena, Calit.
May 19 filed 20,000 shares of common stock (par
$1)
Price—At market.
Proceeds—For investment.
Under¬

writer—Investors Investments Corp.,
Pasadena, Calif.
★

Perfect

Sept.

14

Photo, Inc.

(10/5-9)

filed

150,000 shares of common stock (par 20
of which 60,000 shares are to be offered for the
account of the company and
90,000 shares for the account

food

shares will be offered to the public."
Proceeds—For general corporate
Office—1029 Vermont Avenue, N. W., Wash¬
ington, D.C. Underwriter—Weil & Co., Washington, D.C..

markets

in

Minn.

apolis,

Florida.

Office

—

Baker

Bldg., Minne¬

Underwriter—Craig-Hallum,, Inc., Minne¬

if Pilgrim National Life Insurance Co. of America
Sept. 17 filed 100,000 shares of common stock, of which
55,000 shares are to be offered first to stockholders of
record Aug. 31, 1959, and 45,000 shares
(minimum) are
to be offered to the public, which will also be offered
any shares unsubscribed for by said stockholders. Price
—$5 per share. Proceeds—For general corporate pur¬
poses, possibly
pany

including the enabling of the issuing com¬
to make application for licenses to conduct its in¬
business

surance

in

States

other than Illinois, the sole
presently licensed. Office—222 W.
Adams St., Chicago, 111. Underwriter—None.
State

in

which

it

is

Pfanholders Institute, Inc.
Sept. 11 filed $2,000,000 of Selected Plans. Proceeds—
For investment. Office—26
Broadway, N. Y. C. Under¬

writer—The

issuing

company

will

serve as

underwriter.

•

Porce-Alume, Inc. (10/5-9)
Aug. 3 (letter of notification) 300,000 shares of
mon

Pearson, Murphy & Co., Inc., New York.
•

Powell River Co., Ltd.
Aug. 20 filed 4,500,000 ordinary

shares

(no par)

to be

offered, following

a two-for-one stock split in September
holders of record of, and in exchange for outstand¬

ing class A and class B shares of MacMillan & Bloedel,
Ltd., on the basis of seven shares of Powell River stock
for three shares of MacMillan & Bloedel
stock, whether
class A or class B.
Thereafter, the name of the issuing
company would
be changed to MacMillan,
Powell River, Ltd.
Office — 1204 Standard

Bloedel

&

Bldg., Van¬
couver, B. C., Canada. Dealer-Managers—White, Weld &
Co., Wood, Gundy & Co., Inc., and Greenshields & Co.,
all of New York; and
Wood, Gundy & Co., Ltd., and
Greenshields & Co., Inc., of Canada. Offering—Expected
within

30

31

Casualty Co., Mesa, Ariz.

brokers

of

share.
Underwriter—None.
per

Producers

Fire

Proceeds—For

& Casualty Co.
working capital.

if Puget Sound Power & Light Co. (10/28)
Sept. 21 filed $20,000,000 of first mortgage bonds, series
due Nov. 1, 1989. Proceeds—To
repay outstanding bank
loans, due Jan. 1, 1960, incurred to finance construction,
which bank loans

000,000

are expected to
aggregate about $23,at the time of such sale. Underwriter
To be
—

determined

Merrill

Lynch, Pierce, Fenner & Smith Inc.; Stone &
Webster Securities Corp.; The First Boston Corp. and
Smith, Barney & Co. (jointly). Bids—Expected to be
received up to noon (EST) on Oct. 28.

Rad-O-Lite, Inc. (9/28-10/2)
July 8 filed 300,000 shares of common stock (par 250).
Price
$1.50 per share. Proceeds — For general corpo¬
rate purposes. Office—1202 Myrtle
St., Erie, Pa. Under¬
—

writer—John

Radiant

G.

Cravin

&

Co., New York.

Lamp & Electronics Corp.

Sept. 4 filed $250,000 of 6% ten-year subordinated con¬
sinking fund debentures, series II, due Oct. 15,

vertible

1969, and 120,000 shares of class A stock (par 10 cents).
For debentures, 100% of principal amount; for
stock, $5 per share. Proceeds—To acquire Radiant Lamp
Corp., of Newark, N. J., with the balance to be used as

Price

• Radiation
Dynamics, Inc., Westbury, N. Y.
Sept. 8 filed 25,000 shares of common stock.
The

to

offer

to

efforts

—

To

be

supplied

by

working capital and the con¬
struction or acquisition of additional film
processing and
printing facilities. Office—4747 North Broad
St., Phila¬
delphia, Pa.
Underwriter—Drexel & Co.,
Philadelphia.
★ Philadelphia Electric Co. (10/14)
Sept. 17 filed $50,000,000 of first and refunding

mortgage

bonds, series due Oct. 1, 1989. Proceeds—For expansion
program. Underwriter—To be determined

by competitive
Stuart & Co. Inc.*

bidding. Probable bidders: Halsey,
Equitable Securities Corp.; Kidder, Peabody &
Co., East¬
man
Dillon, Union Securities & Co., Merrill Lynch
Pierce, Fenner & Smith Inc., and White, Weld & Co'
(jointly); The First Boston Corp. and Harriman
Ripley
& Co. (jointly).
Bids—Expected to be received on Oct
14.

ther research.

real,
Sloss

Quebec,

Office—185 St. Paul
Street, West, Mont¬
Canada. Underwriters —Marron, Edens,

& Co., Inc., New
York, N. Y., and First Albany
Corp., Albany, N. Y.




place

For

working capital. Office—1800 Shames Drive, Westbury, L. I., N. Y.
Underwriter—Hayden, Stone & Co.,
York.

-

Radio City

Products Co., Inc.
Aug. 17 (letter of notification) 100,000 shares of com¬
mon stock
(par 25 cents). Price—$3 per share. Proceeds
—For machinery and electronic test
equipment, envi¬
ronmental testing equipment, placing accounts
payable
discount basis,

retiring trade notes, retiring loans out¬
standing, research and development and for working
capital. Office — Centre & Glendale Sts., Easton, Pa.
on

Underwriter—None.
•

★ Photo-Market Corp.
Sept. 14 (letter of notification) 50,000 shares of common
stock (par 50
cents). Price—$5 per share. Proceeds—
For acquisition of a
coating plant; establishment of eight
new branch
offices; moving to larger quarters and fur¬

to

11,175 shares with certain selected in¬
vestors at $10 per share, with warrants to purchase an
equal number of shares at $12.50 per share. Proceeds—

New

Radio

Frequency Company, Inc. (9/28-10/2)
(letter of notification) 100,000 shares of com¬
(par $1). Price—$3 per share. Proceeds—For
general corporate purposes.
Office — Medfield, Mass.
Underwriter—Myron A. Lomasney & Co., New York.

Aug.
mon

•

*■

Expected in about three weeks.

Republic Resources & Development Corp.
V
unit shares of capital stock. Price

June 29 filed 1,250,000

Proceeds—To be used in the

company's oil exploration program for the purchase of
oil exploration and drilling equipment, supplies and ma¬
terials; to contract with U. S. geophysical contractors for
technical services; and to pay its pro rata shares of the
dollar exploration expenses under its agreement with
three other companies for joint exploration of conces-'
sions held in the Philippines.
Office—410 Rosario St.,

Underwriter — John G.
Offering—Expected in

Binondo, Manila, Philippines.
Cravin

& Co., Inc., New York.
September.
v

„

,

subordinated debentures dated Dec. 1, 1959, due

purchase

Proceeds—To

par.

10-year
Nov. 30,
Price

in denominations of $100 each.

1969 to be offered
—At

-

,

.

• Reserve Realty Co.
Sept. 17 (letter of notification) $200,000 of 6%

a

warehouse andLa
14,

phvsical plant, including land, from Supply Co.,
Crosse, Wis.
Office—2750 Ellis Avenue, St. Paul
Underwriter—None.

Minn.

(P. J.)

Co., Bridgeton, N. J.
shares of preferred stock, non-cumu¬

lative, voting, (par $100) and 60,018 shares of common
(no par) to be offered to the holders of preferred
common
stock of Brook$ Foods, Inc., at the rate
of one share of Ritter preferred stock for each share of *
stock

and

of Brooks and two shares of common
for each share of common stock of
Brooks. The exchange offer is being made by Ritter in
accordance with its agreement with Brooks and certain
of its stockholders who
own
an
aggregate of 18,805
shares of its outstanding common stock, or approxi¬
mately 62.5% of such stock, and who have agreed to
accept the exchange offer upon ^effectiveness of the reg^
preferred stock

Ritter

of

stock

Istration statement.

"t

Rondout Corp.

J

"

Sept. 4 filed 155,000 shares of common stock, of which
140,000 shares are to be publicly offered. Price—$3.50

Proceeds—To buy the capital stock of Rond¬
Mills, Inc., and to purchase notes of said
currently held by Arrowsmith Paper Corp.,'
balance to be used for general corporate pur-"

share.

per

out

Paper

company,
with the

including working capital. Office—785 Park Ave.,
York, the address of the corporation as given in
the registration statement, is the home address of Leif
B. Norstrand, President of the issuing company.
Pur¬
suant to the contemplated merger of Rondout Paper
poses,
New

into

Inc.

Mills,

Rondout Corp.,

Rondout Corp., it is anticipated that
the surviving company, will conduct
E. 42nd St., New York, the present

as

its business from 41

Rondout

of

office

12

stock

Random

Sandkuhl

House, Inc. (9/28-10/2)
Aug. 27 filed 222,060 outstanding shares of common stock
(par $1). Price ■— To be supplied by amendment.
Pro¬
ceeds—To selling stockholders.
Office — 457 Madison
Ave., New York. Underwriter—Allen & Co., New York.

&

Paper

Mills,

Inc.

Underwriters

Co., Inc., Newark, N. J.; and S. B.

Co., New York. Offering—Expected sometime
•

Roto-American Corp.

—

Cantor

in October.

(10/12-16)

,

Aug. 28 (letter of notification) 80,000 shares of common
stock. Price—$3.75 per share. Proceeds—To redeem pre-,
ferred
and common stock outstanding
held by Roto
Bag,

com¬

its stockholders the right to
subscribe to 11,325 shares at $10 per share, with war¬
rants to purchase an equal number of common shares at
$12.50 per share, on the basis of one new share for each
proposes

of

Hope, President. Price

-

—

working capital. Office—40 Washington Place, Kearney,
N. J.
Underwriter—Amos Treat & Co., Inc., New York.
Offering—Expected in October.

pany

Inc.

^

July 28 filed 200,000 shares of class A stock. Priced— $3
per share.
Proceeds—To pay off mortgages and for;
working capital. Office—Jamaica. L. I., N. Y. Under-;
writer—Robert L. Ferman & Co., Miami, Fla. Offering-

by

competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc., and Lehman Bros, (jointly);

•

machinery and equipment; retiring current indebt¬
a sales development program and working capi¬
tal.
Office—36-40 37th Street, Long Island City, L. I.,
N. Y.
Underwriter—The James Co., New York, N. Y.
For

edness;

June 18 filed 4,827

filed

and

Price—$5

(10/7)

Raymond Service, Inc.

Ritter

Fire &

400,000 shares of common stock to be
offered for subscription by holders of stock purchase
rights acquired in connection with life insurance policies
issued by Dependable Life Insurance Co. and to certain
agents

•

Sept. 3 (letter of notification) 300,000 shares of common;
stock (par 10 cents).
Price—$1 per share. Proceeds—

days.

Producers
March

100,000

—$2 per unit of 200 shares.
com¬

stock

(par 10 cents). Price—$1 per share. Proceeds
—For expansion. Office—Alliance, Ohio. Underwriter-

to

which

of

Price—$8.50 per share.
purposes.

four shares held. Hayden Stone & Co. has agreed to pur¬
chase 2,500 shares for its own account and to use its best

amendment. Proceeds—For

Corp.

July 15 filed 165,000 shares of common stock (par $l)r
subsequently reduced by amendment to 115,500 shares,

cents)

Karl

Research

S^pt. 17 filed 500,000 shares of common stock. Price—
$3.50 per share. Proceeds—To place in operation fifteen

apolis, Minn.

mortgage bonds series of 1958. Price—At par. Proceeds
—To repay Oak Valley, Inc. a portion of the cost of
construction of the water supply and distribution sys¬

Electronics

Raub

Inc.

Thursday, September 24, 1959

...

new

wholly-owned

a

subsidiary; for the purchase of
capital

tooling to expand production; for working

general corporate purposes. Office—93 Worth St.,„
New York, N. Y. Underwriter—Morris Cohon & Co., New
York, N. Y.
and

Roulette

Records, Inc.

Aug.;27 filed 330,000 shares of common stock (one
of wfiich 300,000 shares are to be publicly offered.
—$3;50 per share.

cent),

Price
Proceeds—For general corporate pur-,

posejs, including moving to new quarters and installing
executive offices and sound studio facilities therein, Re¬
quiring technical equipment and machinery, and adding
to
working capital.
Office — 659 10th Avenue, New
York. Underwriter—Chauncey, Walden, Harris & Freed,
Inc.i 580 Fifth Avenue, New York. Offering—Expected
in

three

or

four weeks.

,

St. Regis Paper Co.
June 26
The

filed

company

30,000 shares of common stock (par $5).
proposes to offer this stock in exchange
shares of common stock of Lone Star

for 1 outstanding

Bag and Bagging Co. on the basis of 0.6782 of a share of
St. Regis common

for each share of Lone Star common.

Regis will declare the exchange offer effective if
95% of the outstanding shares of Lone Star common are
St.

.

deposited for exchange, and may elect to do so if a lesser
percent, but not less than 80%, of all the Lone Star
common

will enable it to control the business operations

ancj policies of Lone Star.
9t.

Regis Paper Co.

Aug. 12 filed 453,731 shares of common stock, to be of¬
fered in exchange for the outstanding shares of the cap¬
ital stock of the Cornell Paperboard Products Co. on
the basis of .68 of a share of St. Regis common for each
sharAof Cornell capital stock. The offer will be declared

Volume 190

Number 5884

.

effective if 90% of the
outstanding shares of the Cornell
6tock are
deposited for exchange, and may be declared
effective if 80% of said shares are so
deposited. Office—
150 E. 42nd
Street, New York.

bank subsidiaries; to repay a bank loan of $6,400,000; to add to working capital; to retire certain longterm indebtedness; and to develop citrus groves. Office
—250 South East First Street, Miami, Fla. Underwriter

Samson Convertible Securities
Fund, Inc.
July 15 filed 200,000 shares of common siock. Price—To

—Bear, Stearn^ & Co., New York.

be

.

supplied by amendment. Proceeds—For investment.
Office—23 Hazelton Circle, Briarcliff
Manor, N. Y. Gen¬

pected in late October.

• Sandkay Contractors, Inc.
Sept. 14 (letter of notification)

:

(par $10).

Price—$20

5,000 shares of

working capital. Office—103
Wash.
Underwriter—None.

12th

St.,

1960 exercisable at

Of the total, 37,429
exchange for outstanding
Corp., on a one-for-one
basis, conditional upon the tender of sufficient Build¬
ing stock for exchange so that the Development Corp.
will own at least 75%; 21,535 shares are covered by
outstanding warrants which are exercisable at $2.50 per
share. Price—For public offering, $2.50 per share.
Pro¬
ceeds
To be used to complete building program of
Southeastern and to expand other divisions.
Office—
Hattiesburg, Miss. Underwriter—None.

common

shares

Proceeds—For

S.

W.,

Ephrata,

•; Seagraves Mining Co., \ Inc.

Aug.

5

(letter of notification) 1300,000 shares of com¬
(par 10 cents) to be offered for subscription
by stockholders; unsubscribed shares to
public. Price—
To
stockholders, 80 cents per share; to public, $1 iper
share. Proceeds—For
exploration and mining operations.
Office—3439 N. E. Sandy Blvd., Portland
12, Ore. Under¬
writer—None. This!
company'has cancelled, the offering.
mon

stock

.

Servo

Corp. of America (19/20-23)
Sept. 11 filed $1,000,000 of conv. subord. debens. due
Oct. 1,1974. Price—100% of
principal amoiint. Proceeds—
$300,000 for working capital; $300,000 for increased de¬
velopment and research, with particular attention
to
Civilian products;
$200,000 for plant relocation and con¬
solidation at the
Hicksville, N. Y., site and for expansion
of
equipment; $100,000 for sales promotion and related
activities; and $100,000 for general corporate
purposes.
Office—20-20 Jericho
Turnpike, New Hyde Park, L. I.,
N. Y. Underwriter—Ira
Haupt & Co., New York.
Shares
Dec.

12

in

American

Industry,

filed 50,000 shares of

market.

Proceeds—For

investments

Investment Fund Management
Shares in America, Inc.
Shell Electronics

1959.

Southern

Name

may

ital.

Office

112

State

•

Shield

Sept.

Chemical

of

common

stock

(par

10

St., Westbury, L.
Co., New York.

I.,

Ltd.

more

additional

retail

be

stores

common

Price—

Office—115 Cham¬

bers

Street, New York City.
Underwriter—Sire Plan
Portfolios, Inc., 115 Chambers Street, New York City.
Offering—Expected in October.

Skaggs Leasing Corp.
notification) 24JD,000 shares of common
stock (par $1).
Price—$1.25 per share. Proceeds—For
general corporate purposes.
Underwriter—Harrison S.
Brothers & Co., Salt Lake City, Utah.
June 4 (letter of

Skiatron Electronics & Television Corp.

Aug. 18 filed 172,242 shares of common stock (par 10
cents), of this stock, 128,500 shares were issued or are to
be issued pursuant to warrants issued in 1956; 13,742
are to be issued to various persons in lieu of cash
services rendered, pursuant to authorization of the
directors in January 1958; 30,000 common shares are to

shares
for

be offered by owner Arthur Levey for sale

by brokers.

Proceeds—For working capital. Office—New York City.
Underwriter—None. No. public offering is planned.
•

Sottile, Inc.

(Formerly South Dade Farms, Inc.)
July 29 filed 2,000,000 shares of common stock (par $1),
of which 1,543,000 shares are to be issued and sold for
the

account of the company,

senting

outstanding stock,

to

and 457,000 shares,

be sold

for the

repre¬

accounts

of certain selling stockholders.

amendment.
stock

Proceeds—To

Price—To be supplied by
retire 70% of the common

of
Digitized foroutstanding at the date of
FRASER
invest in the capital stocks


the
six

stock
of

the

offering; to
company's

amendment.

be ofrecord

•

For general

corporate purposes, including the developing

building
St., Bloomingtori,
111. Underwriter—White & Co., St. Louis, Mo. Offering
—Expected in early October.
of three drive-in restaurants on company-owned

Office—1700

sites.

West

Washington

Stelling Development Corp.
(letter of notification) 300,000 shares of commott
(par one cent). Price—$1 per share. Proceed*—
For mortgages, land, paving roads, loans payable, adver¬
tising, etc. Office—305 Morgan St., Tampa 2, Fla. Under¬
writer—Stanford Corp., Washington, D. C.

June 8
stock

June 29 filed 368,571 shares

supplied by amendment. Proceeds—For payment
of bank loans;
for payment of a note; for working
capital; for expenditures by Strategic-Udy Metallurgical
& Chemical Processes Ltd., which owns and operates
a
pilot plant at Niagara Falls, Ontario, and is a sub¬
sidiary of Stratmat Ltd., Strategics principal subsidiary,,
and by its other direct subsidiary, Strategic-Udy Pro¬
cesses, Inc., which owns and operates a laboratory at
Niagara Falls, N. Y.; as working capital for a mining
subsidiary; for payment of a mortagage; and as working
capital for another subsidiary. Underwriters — S. D.
Lunt & Co., Buffalo, N. Y.; and Allen & Co., New York.
Sylvania Electric Products, Inc.

Sept. 1 filed $25,000,000 of sinking fund debentures, due
Sept. 1, 1984. Price — To be supplied by amendment.
Proceeds—To be applied to indebtedness.
Office—730

York. Underwriters—Paine, Webber,.
Curtis, and Halsey, Stuart & Co. Inc., both
New York.
This offering has been deferred due to

Third Avenue, New

market

•

Southern

New

Oil

Ventures,

(par $25),

Inc.

Lexington, Houston 6, Texas.

To be

of

Underwriter—None.

(10/12-16)

100,000 shares are to be offered
holders thereof. Price—
supplied by amendment. Proceeds—Together with

including the addition of working capital, and the pro¬
viding of funds for adding to jet-engine overhaul facil¬

ities, including the purchase of shop equipment and
special tooling required for this purpose. Office—7515
Lemmon Ave., Dallas, Tex.
Underwriters — Rauscher,
Pierce & Co., Inc. and Dallas Rupe & Son, Inc., both of

Washington,

Inc.,

D.

C.

(9/23)

200,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For working capital, etc. Office—1048 Potomac St.,
N. W., Washington, D. C. Underwriters—Bertner Bros,
and Earl Edden Co., both of New York, N. Y.

Aug. 20

(letter of notification)

Span America Boat Co., Inc.
Sept. 9 (letter of notification)

175,000 shares of common

stock

(par 25 cents). Price—$1 per share. Proceeds—To
purchase raw materials; for sales program and working
capital. Address—Exposition Park, Fort Dodge, Iowa.
Underwriter
R. A. Holman & Co., Inc., New York,
—

•

Tassette, Inc.

18

(Delaware)

Inc.

Pinepotters, Inc. for bowling alley beds; $350,000 to pay
for other installations, fixtures and equipment; $85,000
to expand two present establishments by increasing the
number of alley beds by eight at Yorktown Heights and
by six at Wilton Manor Lanes, Fort Lauderdale; $300,000
for deposits on leaseholds, telephones and utilities; and
$395,000 for working capital. Underwriter—None. Stoporder

proceedings instituted by SEC.

(par

Underwriters—Amos Treat & Co.r
York,

St., Stamford, Conn.
Inc. and Truman,

Wasserman & Co., both of New

N. Y.

Inc.

Technology,

May 15 filed 325,000 shares of common stock (par 10
cents).
Price—$4 per share. Proceeds—To pay off in
full the subscription of Microwave Electronic
Tube

Inc. stock, represented by notes, to pay for im¬
provements upon the plant leased to Microwave, and
for working capital.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C.
Underwriter — E. L.
Wolf Associates, Inc., Washington, District of Columbia.

Co.,

Tennessee

Gas

Transmission Co.

Aug. 21 filed 473,167 shares of common stock (par $5),
to be exchanged for common stock of East Tennessee
Natural Gas Co. on the basis of one share of Tennessee
Gas Common for 2.75 shares of East Tennessee common.
This offer is subject to various
is that all of the 5.20%

conditions, one of which

cumulative preferred stock ($25

of East Tennessee shall have been purchased or
and cancelled.
East Tennessee is presently

redeemed

negotiating for the sale of $5,800,000 of which 11-year
5%% debentures, contingent upon the consummation of
the exchange offer, $4,568,785 of the proceeds of which
will be applied to the

redemption of the 5.20% cumula¬

preferred stock. Office—Tennessee Bldg., Houston,
Texas. Dealer-Managers — Stone & Webster Securities

tive

Corp., and White, Weld & Co., both of New York.
Tennessee Investors, Inc.
Aug. 28 filed 500,000 shares of common stock (par $10).
Price—$12.50 per share. Proceeds—To provide invest¬
ment capital and consulting and advisory services to
small businesses. Office—Life & Casualty Tower, Nash¬

ville, Tenn.
a

per

filed

$2,000,000 of 6% 10-year convertible de¬
bentures (subordinated), due Jan. 1, 1969. Price—To be
supplied by amendment. Proceeds—$750,000 to pay AMF

100,000 shares of class A

10 cents). Price—$3 per share. Proceeds—
For purchase of furniture and fixtures, selling, adver¬
tising and other working capital. Office—170 Atlantic
stock

will

Sports Arenas

(10/5-9)

Aug. 26 (letter of notification)

on

New York.

Nov.

'

Inc. (9/25-28)
May 25 filed 110,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To purchase ma-;
chinery and equipment; for research and development^
for certain expenses and for working capital. Office—>
49 Jones Road, Waltham, Mass.
Underwriter — David
Barnes & Co., Inc., New York.

par)

Dallas, Tex.
Components,

conditions.

Tang Industries,

other funds, will be used for general corporate purposes,

Space

&

•

England Telephone Co.

for the accounts of the present

_

alterations and construction thereon.

Shake, Inc.

Sept. 15, 1959, on the basis of one new share for each
9 shares then held. Price—$4.62 V2 per share. Proceeds—■

Leverton, Reiner Co., New York.

►

general corporate purposes incidental to the ac¬
quisition of land and buildings in Tarrytown, N. Y., and

by

issuing company, and

Sire Plan of Tarrytown, Inc.
July 13 filed $900,000 10-year 6% debentures and 18,000'
shares of $3 cumulative, non-callable,
participating pre¬
ferred stock (par $10).
Price—$100 per unit consisting
of one $50 debenture and one share of preferred stock.
—For

supplied

Sept. 18 filed 200,000 shares of common stock, of which
100,000 shares are to be offered for the account of the

California.

Proceeds

(par 5c).
Proceeds—For

135,000 shares of common stock

be

it Southwest Airmotive Co.

general corporate pur¬

Office—800

The minimum sale is expected to be five units.

Steak'n

Jackson

2802

Broadway, Oakland, Calif. Under¬
writers—J. S. Strauss & Co., and York &
Co., both of
San
Francisco, Calif., and Mason Brothers, Oakland,
poses.

(9/28-10/2)

Utilities, Inc.

July 22 filed $1,000,000 of participations in the com¬
pany's 1959 Oil and-Gas Exploration Program. Price—
$5,000 per participation (minimum is 2 participations).
Proceeds—For oil and gas exploration program. Office—■

Proceeds—To open one
in Northern California,

for

used

stock.

•

general corporate purposes, including expansion. Office—
7630 Biscayne Blvd., Miami, Fla. Underwriter—Jaffee,

Southland

100 shares of

Corp.

Aug. 24 filed 65,505 shares of common stock, to
fered by subscription by common stockholders of

•

shares.

outstanding stock) which are expected to approxi¬
balance, if any, to be used for
general corporate purposes. Office—227 Church St., New
Haven, Conn. Underwriter—None.

Hardware Co.

by amendment.

their

of the

Sept. 14 filed $800,000 of 7% sinking fund subordinated
debentures, due 1971, and 80,000 shares of common
stock, to be offered in units of $1,000 principal amount

or

of

Gulf

mate $20,000,000, and the

Colorado.

with the balance to

Southern

being offered for subscription to stockholders of record
Sept. 8, 1959, in the ratio of one new share for each 10
shares then held; rights to expire on Oct. 9, 1959. Price
—$35 per share. Proceeds — To repay advances from
American Telephone & Telegraph Co. (owner of 21.3%

(letter of notification) 95,000 shares of capital
(par 10 cents). Price—$1.50 per share. Proceeds—
To purchase and install
manufacturing equipment; con¬
trol and test equipment;
advertising and for working
capital. Office—17 Jutland Road, Toronto, Canada. Un¬
derwriter—Peters, Writer & Christensen, Inc., Denver,

To be supplied

a

sale

Aug. 24 filed 688,885 shares of common stock

N.7Y.

&

8

of debentures and

the

Price—To

stock

Simon

St., Raleigh, N. C.
Underwriter—None,
officials, who are making the offering,
10% commission to dealers in connection

Aug. 24 filed

cents). Price—$2 per share. Proceeds—For
general cor¬
porate purposes, including the
repayment of indebted¬
ness, the purchase of equipment, and for
working cap-*:

Underwriter—Schweickart

pay

•

—

Manufacturing Corp..

170,000 shares

Co.

Hillsboro

with

(10/12-16)
Aug. 28 filed

Finance

but the company

Advisor—

Former

Frontier

Aug. 11 filed 1,300,000 shares of common stock (par 50
cents).
Price—$1 per share.
Proceeds—For working
capital and to purchase products for company. Office—

Office—1033-30th

Corp.

Smith Inc. (jointly); White, Weld & Co. and
Dillon, Union Securities & Co. (jointly). Bids—

Expected to be received at Room 1216, 810 South Flower
St., Los Angeles, Calif., at 8:30 a.m. (PDT) on Sept. 29,

Price—At

Street, N. W>., Washington 7, D. C. Investment

(9/28-10/2)
shares of common
(par one cent). Price—$1.50 per share. Proceeds
—For working capital and general corporate purposes.
Office—150 E. 43rd St., New York 17, N. Y. Underwriter
—R. G. Williams & Co., Inc., New York, N. Y.
Standard Beryllium

stock

—To be

615

stock.

•

Sept. 3 (letter of notification) 150,000

Strategic Materials Corp.
of common stock (par $1), to
be offered for subscription by common stockholders at
the rate of one new share for each five shares held. Price

Eastman

inc.

common

stockholders. Office
N. Y. Underwriter
order proceedings instituted by SEC.

$6 per share). Proceeds—To selling
—33 Great Neck Road, Great Neck,
—None. Stop

Fenner &

selling

stockholder. Office—400 West
Vickery Blvd., Fort Worth,
.Texas. Underwriter—Kay and
Company, Inc., Houston,
Texas. *. *. /
-1
v,
•„
,

cent).

7 Southern California Gas Co.
(9/29)
Aug. 24 filed $30,000,000 of first mortgage bonds, series
D, due Oct. 1, 1984. Proceeds—To repay short-term in¬
debtedness to Pacific Lighting Corp., the issuer's parent
corporation, which is expected to approximate $3,000,000 as of Oct. 1, 1959, with the balance to be used to
finance in part the costs of the company's construction
and expansion program. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc. and Merrill Lynch, Pierce,

Service Life Insurance Co.
(9/28-10/2)
Aug., 25 filed 25,000 outstanding shares of common stock
(par $1). Price — $20 per share. Proceeds — To

•

in

—

7-

,

$2.50 per share.

issued

be

to

are

shares of Southeastern Building

'

,

\

share.

per

(par one
Price—At the market (but in no event less than

Nov.

r

Southeastern Development Corp.
Aug. 14 filed 738,964 shares of common stock (par $1),
of which 340,000 shares will be offered publicly.
Each
purchaser is also to receive a non-transferable option to
purchase a like number of shares on or before April 7,

Distributor—Samson Associates, Inc. Offering—Ex¬

stock

Offering—Expected

late in September or early October.

47

Spprts Arenas (Delaware) Inc.
18 filed 461,950 shares of common stock

seven

•

eral

(1283)

The Commercial and Financial Chronicle

..

Underwriters—The offering is to be made
basis through NASD members, who
an
underwriting commission of 90 cents

"best efforts"
receive

share.

Texaco

Inc.

capital stock to consti¬
of such shares to be
exchanged for the total assets of The Superior Oil Co.
pursuant to an agreement dated Aug. 10, 1959 on a 24Sept. 2 filed 5,177,688 shares of

tute

part of the total of 10,134,336

for-1 basis.
•

Texmar

Sept.
in the

Realty Co., New York

1 filed $1,819,000 of limited
company.

(10/5-9)
partnership interests
Pro-

Price—At par ($5,000 per unit).
Continued

on page

48

48

The Commercial and Financial Chronicle

(1284)

Continued from page

Variable Annuity Life Insurance Co. of America

47

April 21
iceeds—To

be

used

to

for properties. Underwriters
•—Lifton Securities, Inc. and Hechler-Weingrow Secu¬
rities, Inc., both of 375 Park Avenue, New York, N. Y.
Offering—Expected early in October.
Textron

pay

Electronics

Co.

Aug. 3 filed 500,000 shares of outstanding common stock,
being offered by Textron Industries, Inc., the present
holder thereof, to Textron Inc. stockholders on the basis
of

share

one

of

shares

of

Textron

Textron

rights to expire
Office—10

Inc.

Electronics

Dorrance

Street,

for

each

10

held

stock

Sept. 25, 1959.

on

stock

as
of Sept. 2, 1959;
Price—$7.50 per share.

Providence, R. I.

Under¬

writer—None.
Thrift Drug Co.

of Pennsylvania (10/14)
Sept. 14 filed 75,000 shares of common stock. Price—To
supplied by amendment. Proceeds — To retire bank

be

indebtedness and

assist

the

in

opening of 15

drug

new

stores in 1959-60. Office—16th and

Mary Sts., Pittsburgh,
Pa. Underwriter—Singer, Deane &
Scribner, Pittsburgh,
Pa.

Tower's Marts, Inc.
Aug. 28 filed 300,000 shares of class
(par 10 cents). Price—$3 per share.
duce indebtedness by about
$300,000,
to be added to
working capital of the

Proceeds—To

subsidiaries.

Street,

Conn.

Office—210

East

Main

Underwriters—To be supplied

Transcon

Petroleum

&

A

stock

common

re¬

with the balance
company and its

Rockville,

by amendment.

Development Corp.,

mon

For

$4,000,000 of Variable Annuity Policies.
than $120 a year for annual premium
contracts and no less than $1,500 for single premium
contacts.
Proceeds—For investment, etc.
Office—1832
M Street, N. W., Washington, D. C. Underwriter—None.

(letter of notification) 300,000 shares of com¬
stock.
Price—At par ($1
per snare). Proceeds—
development of oil properties. Underwriter—First

attached, and 282,760 shares of
The

June 4

?ent).

Inc.
>
filed 1,900,000 shares of common stock
(par
Price—$1 per share. Proceeds—For salvage

erations.

Office—1500

Washington, D. C.

Massachusetts

Avenue,

N.

one

op¬

W.,

Trinity Small Business Investment Co.
April 17 filed 235,000 shares of capital stock (par $1).
Price
$10.75 per share.
Proceeds
For investment.
"Office—South Main Street,
Greenville, S. C.
Under¬
writer—To be supplied by amendment.
—

Tungsten Mountain Mining Co.
May 21 (letter of notification) $100,000 principal amount
-of 7% first
mortgage convertible bonds, to be offered
in denominations of $500 and
$1,000 each. Price—100%
of principal amount. Proceeds—For
construction, instalJation of machinery and equipment and
working capital.
"Office—511 Securities Building, Seattle
1, Wash.
writer—H. P. Pratt & Co.,. Seattle
4, Wash.

Under¬

Aug. 7 filed 1,036,602 shares of common stock (par
$10),
being offered for subscription by stockholders of record
.Sept. 10, 1959, on the basis of one new share for each

held; rights to expire Sept. 30.

The

com¬

also is offering to its employees and those of its
wubsidiaries shares not deliverable under the
offering

pany

to

stockholders, and also 21,123 shares

treasury. Price

—

$30

per

now

share. Proceeds

—

held
For

in

the

general

corporate purposes, including the
financing of additions
to plant and
property and the retirement of loans already
incurred for these
purposes. Underwriter—Merrill

Victoria

United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock
(par $5)
#rlce
$10 per share. Proceeds
For acquisition o!
operating properties, real and/or personal,
—

including

office furniture, fixtures,
equipment and office space, by
fciase or purchase. Office —
Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., li
President.
•

U.

S.

Home

&

ceeds

For

construction

of

real estate
developments.
Ave., Lakewood, N. J. Underwriter
Co., Inc., 1180 Raymond Blvd., RaymondCommerce Bldg., Newark 2, N. J.
Offering—Expected in

Office

—

—

52 Neil

&

October.

of national distribution and for working
Office—373 Herzl St., Brooklyn, N. Y. Under¬
writer—Caldwell Co., New York, N. Y.
Offering—Ex¬
pected sometime late in September.
a

program

capital.

Inc.

June 29 filed 10,000 shares of 6^4% cumulative
preferred
stock and 560,000 shares of common
stock, to be offered
to the stockholders of Ralph E. Mills
Co., Talbott Con¬
struction Corp. and Talco Constructors, Inc., in exchange

stock of these three cor¬
porations, and to the owner of Sherman Concrete Pipe
Co., Chattanooga, Tenn., for the business and assets of
that company.
Office—Mountain Brook, Ala. Statement
became effective
Vulcan

on

July 20.

Materials

4,500,000 shares of class A common stock
(par 50 cents). Price —$2 per share. Proceeds —For
development and construction of a "Western
Village"
and

for

construction

of

a

Grand

Estes

Hotel

and

Con¬

vention

Hall, to be constructed in the immediate
vicinity
•of Estes Park
Chalet, located in Larimer County, Colo.
Office

—

330

South 39th

Street, Boulder, Colo.
Under¬
writer—Mid-West Securities
Corp., Littleton, Colo.
United Utilities, Inc.
(9/29)
Sept. 2 filed 229,606 shares of common stock
(par $10)
to be offered for
subscription on or about Sept. 29, 1959
ill the ratio of one new
share for each 10
shares held;

rights to expire on or about Oct. 13.
Price—To be
plied by amendment.
Proceeds—For construction
gram.

sup¬
pro¬

Underwriter—Kidder, Peabody & Co., New York.
Universal Finance
Corp.
«
July 13 (letter of notification)
10,000 shares of common
Ktock (par 15
cents). Price—$5 per share. Proceeds—
For general operating funds.
Office—700 Gibralter Life
Bldg., Dallas, Tex. Underwriter—Texas
National Corp
San Antonio, Tex.
r

ValoYi?taJ,1^estment Co29 filed 80 investment

terests) to be offered in units.
.Proceeds—For
curities Co.

Phoenix, Ariz.

,

contracts

investment.

(partnership in¬
Price—$5,378.39 per unit.

Underwriter—O'Malley

Statement effective
Aug




11

Se¬

172,701

- *

shares

options)

are to be offered by the present holders thereof.
options permit purchase of the underlying shares
$1 per share.
Proceeds—For general corporate pur¬
poses. Office—2801 East Colfax Ave., Denver, Colo. Un¬
derwriter—None.

The
at

Western Heritage Life Insurance Co.
Aug. 26 filed 500,000 shares of common stock. Price—•
$2 per share. Proceeds—For general corporate purposes.

Office—533 East McDowell Road, Phoenix, Ariz. Under¬
Some of the shares may be sold by sales ¬

writer—None.
men

employed by the

dealers.

A

by registered broker-

company, or

commission

constitute part of the purchase price to be
paid for W. E.
and Sons and for Wegco Equipment Rentals,

Graham
Inc.

Office—Mountain Brook, Ala.

Underwriter—None.

•

Waddell & Reed, Inc.
(9/30)
Aug. 17 filed 370,000 shares of class A common stock (par
$1), non-voting, of which 80,000 shares are to be offered

to

not

exceed

17%, or 34 cents

issuing company
and 290,000 shares, representing outstanding
stock, by
the present holders thereof. Price—About
$28-$32 per
Proceeds—To

thereof,

1,500

redeem

shares

of

be paid to sellers of such shares.

may

Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Eastman

Probable

(EDT)

Oct.

on

Devonshire

Wilson

21

at

the

office

of

St., Boston, Mass.

the

company,

/

at

class

105%

A

of

the

preferred

value
($100

par

stock

201
7.

Brothers

'

.

Coke

and

Co.

on

the

basis

of one share

for five shares of

mon

Madison

Virginia
Ave., New York.

of Wilson

Office

common.

com¬

—

180

ir Winter Sports, Inc., Whitefish, Mont.
Sept. 14 (letter of notification) 3,000 shares of common
stock. Price—At par ($100 per share). Proceeds — For
in operating

expenses

ski resort.

a

Underwriter—None.

Wyoming Corp.
1,199,307

Of thes«

subject to partially completed sub¬
scriptions at $2, $3.33 and $4 per share; and the addi¬
tional 250,000 shares are to be offered initially to share¬
holders of record Nov. 1, 1958, in the ratio of one new
are

share for each 2.33 shares

held

on

that date.

Price—$4-

share.

Proceeds—$300,000 will be used for payment#
on contract
to purchase shares of International Fidelity
Insurance Co.; $325,000 for capitalization of a fire insur¬
per

$500,000 for capitalization of a title insur¬
$500,000 for additional capital contribu¬
Development Co.; and $300,000 aa
an additional capital contribution to Oteat Plains Mort¬
gage Co.
Office—319 E. "A" St., Casper, Wyo.. Under¬

ance

tion

company;

company;

to

Great

Plains

writer—None

anticipation of further expansion of its business."
Office—20 West 9th St., Kansas
City 5, Mo. Underwriter

^ Wyoming Nuclear Corp.
Sept. 11 (letter of notification) 10,000,000 shares of com¬
stock. Prices—At par (three cents per share). Pro¬
ceeds—For mining expenses. Office—Noble Hotel Bldg.,
Lander, Wyo. Underwriter—C. A. Benson & Co., Inc.,

—Kidder, Peabody & Co., New York.

Pittsburgh, Pa.

par) and at 120% of the par value thereof, 375 shares of
$100 par preferred stock now outstanding and the bal¬
will

ance

be

added

to

the

company's

working

"in

Waltham

capital

Research

Associates

July 28 filed $1,065,000 of. participations in partnership
interests. Proceeds—To purchase land and
buildings of
Waltham Engineering and Research
Center, Waltham,
Mass., and for expenses connected to the purchase. Of¬
fice—49 W. 32nd
Street, New York 1, N. Y. Underwriter
—The First Republic Underwriters
Corp., same address.
The offering is expected in
September.

Washington Mortgage and Development Co., Inc.
Aug. 24 filed 100,000 shares of common stock. Price—
per

notes

share.

Proceeds

secured

—

For

by real estate.

investment

in

Office—1028

mortgage

Connecticut

Avenue, N. W., Washington, D. C. Underwriters—Amer¬
ican Diversified Mutual
Securities, Inc. and Gildar &
Co., both of Washington, D. C.
Wellington Electronics, Inc.
May 6 filed 240,000 shares of common
a

Price—$6

per

share.

■

stock

Proceeds—For

and

for the establishment of a new testing laboratory.
Office—Stamford, Conn. Underwriter—Myron A. Lomas¬
ney & Co., New York.
Zale Jewelry Co., Inc. (10/6)
Sept. 4 filed 108,989 shares of common stock (par $1),
of which 20,000 shares will be offered by the company
directly to its employees and the remaining 88,989 shares
will

(par

75

repayment

sold

be

holders.

for

the

account

of

certain

selling stock¬
Proceeds

Price—To bo supplied by amendment.

—To company, for general corporate purposes.

—Operates
New

the

States.

largest

chain

Underwriters

Business
jewelry stores in the
Goldman, Sachs & Co.,

of

—

York, and Eppler, Guerin & Turner, Inc., Dallas,

Texas.

bank note; to complete the automation of
the etched

production

plant

facture of machines to

at
be

Englewood, N. J.; for

manu¬

leased to capacitor manufac¬

turers; and for working capital. Office—65 Honeck' St.,
Englewood, N. J. J Underwriters—Amos Treat & Co., Inc.,
and. Truman, Wasserman &
Co.* both :of "New York.
Statement: effective

July 8.'

Offering

week.

tiu^Expefcted

this

Prospective Offerings
American Gypsum Co.

July 15 it

March 5 filed 100,000 shares of

common stock (par $10)
40,000 shares of preferred stock (par $25). Price —
At par.
Proceeds—For construction and
equipment of
company's plant and for working capital. Office—300
Montgomery St., San Francisco, Calif. Underwriter—

and

None.
West

Florida Natural Gas Co.
(10/5-9)
Aug. 31 filed $837,200 of 7V2% 30-year subordinated in¬

American Jet

Aug. 31 it

introduction of

consisting of

New

$100 debenture and
common

a

warrant

to

pur¬

stock. Proceeds—

School, Inc., Lansing, Mich.

that the corporation plans to
100,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For expansion of present
Michigan and Ohio sales force to ,a national one, and
was

announced

issue and sell

Business

one

reported that the company Will register

que, New Mexico, and for working capital. Office—Al¬
buquerque, N. M.
Underwriters—Jack M. Bass & Co.,
Nashville, Tenn., and Quinn & Co., Albuquerque, N. M,

debentures and warrants to purchase
25,116 shares
of class A common stock
($1 par). Price—$100 per unit

come

chase three shares of class A

was

debt and equity securities later this year. Proceeds—For
of a gypsum products plant in Albuquer¬

construction

Western Wood Fiber Co.

•

York Research Corp.
(10/1)
Aug. 10 filed 150,000 shares of class A stock itoar $1).
Price—$3 per share. Proceeds — For general corporate
purposes, including the discharge of various indebted¬
ness and the purchase and installation of new equipment;

United

w

foil

mon

•

Engineering and

1609

new

courses

and

resident study

schools.

In

correspondence school business. Office—
Kalamazoo St., Lansing, Mich. Underwriter — la
—

York

to

be

named

in

early

October.

Offering—

Planned for mid-October.

applied, together with moneys in the sinking fund
of the issuing
company, to the redemption of the out¬
standing 6% 20-year debenture bonds at their redemp¬

.American Telephone & Telegraph Co. (11/17)
Aug. 19 the directors authorized a new issue of $250,000,000 of debentures. Proceeds—To be used for the im¬

price of 103% of their principal amount. OfficeMaple and 3rd Streets, Panama City, Fla.
Underwriter
—Beil & Hough,
Inc., St. Petersburg, Fla.

Probable

tion

j

Aug. 31 filed 261,752 shares of common stock, to ba
exchanged for the common stock of Virginia Iron, Coal

ance

public sale for the account of the

share.

share,

per

shares

To be
June

purchase

Nov. 17 filed 1,449,307 shares of common stock.

Co.

Sept. 15 filed 230,000 shares of common stock. Price—To
be supplied by amendment.
Proceeds—The stock will

of

Enterprises, Inc.

filed

stockand .op

(plus the underlying
shares). The company proposes to make a public offer-'
ing of three blocks of stock in amounts of 40,430, 38,570
and 36,935 shares, at prices of $1, $2 and $3, respectively.
The remaining 96,065 common shares and options for tha
172,701 shares (together with shares underlying such
to

Dillon, Union Securities & Co.; Equitable -Securities
Corp. and Lee Higginson Corp. (jointly); The First Bos¬
ton Corp. and White, Weld & Co.
(jointly); Blyth &
Co., Inc. Bids—Expected to be received up to 11 a.m.

cents.

United Tourist
Jan. 28

tions

Vita-Plus Beverage Co., Inc.
Aug. 11 (letter of notification) 300,000 shares of common
stock (par 10 cents). Priced—$1 per share. Proceeds—For
publicity, advertising, business promotion and initiation

—

Sandkuhl

Western Empire Life Insurance Co.
29 filed 212,000 shares of common

June

^Western Massachusetts Electric Co. (10/21)
Sept. 23 filed $8,000,000 of first mortgage bonds, series
D, due 1989. Proceeds—To pay outstanding bank loans.

$5

Development Corp.

Sept. 3 (letter of notification) 99,933 shares of class A
capital stock (par 10 cents). Price—$3 per share. Pro¬

Thursday, September 24, 1959

Raceway
May 25 filed 1,000,000 shares of common stock (par $2
in Canadian funds). Price—$4.50 per share. Proceeds—
To construct and operate a racing plant; and for work¬
ing capital and other corporate purposes. Office—Notre
Dame Avenue at King Street, Winnipeg, Canada. Under¬
writer—Original underwriter has withdrawn.

Lynch,

Pierce, Fenner & Smith Inc., New York.

—

are to be offered at
100% of principal
price of the common shares will be sup¬
amendment. Proceeds—From the sale of the

plied by
debentures, to redeem preferred stock and for use as
working capital; from the sale of the common stock, to
the Estate of James Vernor, deceased, the selling stock¬
holder.
Office—4501 Woodward Avenue, Detroit, Mich.
Underwriters—Baker, Simonds & Co., Inc., of Detroit,
and Wm. J. Mericka & Co., Inc., of Cleveland, Ohio.

for

Union Electric Co.

40 shares then

Price—

for all the outstanding capital

Underwriter—None.

—

stock.

The

Vulcan Materials Co.,

Hunters,

common

debentures

amount.

Investment Planning Co., Washington, D. C.
Treasure

less

• Vernors
Ginger Ale, Inc. (10/20)
Sept. 15 filed $750,000 of 6%% sinking fund debentures,
due Oct. 1, 1974, with common stock purchase warrants

of

Mangum, Okla.
March 20

filed

Price—No

...

and expansion of Bell Telephone services.
Underwriters—To be determined by competitive bidding.
provement

bidders:

The

First

Boston

Corp.

and Halsey,

Volume 190

Number 5884

:

] fThe Commercial and Financial Chronicle
(1285)

Stuart & Co;
Inc.'.(jointly); Morgan Stanley & Co. and
Kidder, Peabody & Co. '(jointly). Bids—Expected to toe
received on Nov. 17.
)
" r*;
'V

art

& Co. Inc.; The First Boston
Corp.; Salomon Bros.
Hutzler; Kidder, Peabody & Co.;and Merrill Lynch,
Pierce, Fenner & Smith Inc. (jointly); Eastman Dillon,
Union Securities &
Co.; Blair & Co., Inc. and Baxter &
Co. (jointly); Lehman Brothers.
(2) For debentures:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc. and Merrill
Lynch, Pierce, Fenner & Smith
Inc. (jointly); Salomon Bros. &
Hutzler; Equitable Se¬
curities Corp.; Eastman
pillon, Union Securities & Co.;
Lehman Brothers; Blair & Co. Inc.; The First Boston
Corp.
Offering—Expected sometime this Fall.

&

'

Atlantic City Electric Co.
Aug. 3 it was reported that the directors are contemplat¬
ing the-issuance and sale of a small amount of common
stock, after a three-for-t.wo stock split. Last equity of¬
ferings were underwritten by Eastman Dillon, Union Se¬
curities &

York.

Co.; and Smith, Barney & Co., both of New
Offering—Expected during the latter part at

=

this year.

»•

•t

.

.

'1

•"

*'

'

•

.

L'\

.

was

issue of

an

reported

common

that

the

company

Business

stock.

—

The

is

Dutcpesne Light Co.
Aug. 3 it was reported that the company is contemplat¬
ing the issuance of an undetermined amount of subor¬

planning

19-year-old

dinated

company operates 67 retail candy stores in the Greater
New York
area, and 45 other outlets in the area north

for the expansion
of production
facilities, for the organization of additional
outlets, and for general corporate purposes. Underwriter
H.

Blair

Expected

on

Benson

June

10

plates

&

Co.,

company,

New

before Oct.

or

York

City.

the

offering of $4,500,000 of

an

common

21
issuance

stock.

Pro¬

working

25.

building industry and other proprietary products. Un¬

Sept. 9

it

was

Oct; 27

in

new

reimburse

for

ranged

19

it

-with

Buckingham Transportation, Inc.

of the

(9/28)

company sought ICC approval for the is¬
of 250,000 shares of class A common stock
(par

Price—$10

name

per

share.

New Name—The company's

will be changed to Buckingham
Freight Lines.

Coffee

House,

Aug. 31 it

Inc.,

Lansing,

Mich.
announced company plans to issue and

was

sell 100,000 -shares of common stock
per

share.

Proceeds

To

—

(par 10 cents). Price

build

chain

of

the

;

;X

stockholders will

vote

new

share

for

each

four

shares

held.

Power

&

Light Co.

(10/27)

help finance the company's construction pro¬
be determined by competitive

Underwriter—To

Probable

Consolidated Edison Co. of New York Inc.

July 30 it

bidders:

Halsey,

Stuart

&

Co.

Inc.;

stock.

mon

Louisiana Gas Service Co.

$4,500,000 of

Nov. 2,4.

Ellectrosonics, ilntc.

Stuart & Co. Inc.; White, Weld &

Co., Blyth & Co., Inc.,
(jointly); Merrill Lynch, Pierce, Fen¬
Inc., Kidder, Peabody & Co. and Harriman
Ripley & Co. Inc. (jointly); Salomon Bros. & Hutzler,
Eastman Dillon, Union Securities & Co. and
Equitable
Securities Corp. (jointly); The First Boston
Corp. and
Glore, Forgan & Co. (jointly). Bids—Expected to be re¬
& Smith

ceived

on

tions.

.

Bank of St. Louis
(Mo.)
(10/8)
reported that the bank's stockholders will
vote on Oct. 6 to approve a 2-for-l stock
split of its
75,000 outstanding shares of common stock (par $20),
a 3 Vz % stick dividend on the
150,000 shares of new com¬

Aug. 19 it

placed

Business—Radio broadcasting.

Office—130 Shepard St.,. Lansing, Mich.
Underwriter—In New York to
be named in early October. Offering—Planned for midOctober.
;
<
'•

to stockholders of record

on or about Oct.
3, 1959; rights
expire on or about Oct. 22.
Proceeds—To increase
capital and surplus. Underwriter—G. H. Walker & Co.,
St, Louis, Mo.

to

Maritime Telegraph & Telephone Co. Ltd.
Aug .24 company offered to its common stockholders the
right to subscribe for 264,013 additional shares of com¬
stock

mon

shares

Kansas
Dec. 29 it

Light Co.

City

was

contemplates
•

sell

For

issuance and

For bonds: Halsey, Stu¬

of

expenditures.
Missouri

record

one

July

share for each

new

seven

Warrants will expire
$13 per share. Proceeds — For capital
Underwriter—None.

Price

24.

—

Pacific

RR.

(9/30)

Bids will be received by the
company for the purchase
from it of $3,225,000 of equipment trust certificates.

Probable

bidders:

Halsey,

Stuart

Co.

&

Inc.;

Salamon

& Hutzler.

National Bellas Hess, Inc.

Sept. 9 it

reported that the company is considering

was

the issuance and sale of

$5,000,000 of convertible deben¬

tures. The conversion feature of the
proposed debenture
issue would require more
than

334,393

shares

Sept.

available.

now

29

to

common

stock

of

shares.

Proceeds

Underwriter

consisted
which

Stockholders

a--proposal

—

of

For

—

The

increase

the

consider

present

authorized

now

uncommitted

will

on

3,000,000

to

4,000,000.

corporate

general

purposes.

company's last previous financing

$3,000,000
sold

were

of 15-year promissory notes,
privately to J. P. Morgan & Co. Inc.
&

Co., Kansas City, Mo.

National Mail Order Co.,
Lansing, Mich.
announced

was

plans to register in

company

few days an issue of about
$500,000 of common stock.
Price — To be supplied by amendment.
Proceeds — For

expansion and working capital. Office—130 Shepard
St.,
Lansing, Mich. Underwriter—To be named later in New
York State.

New

England Telephone & Telegraph

Aug. 19 it

construction

$20,000,000 of first
program.

mortgage^ bonds. Proceeds—
Underwriter—To

be

deter¬

$10,000,000 of preferred

—

Proceeds—For

To be

cap¬

determined by

competitive bidding. Probable bidders: Lehman
Brothers;

rities

Corp.,

Kidder,

Peabody

Corp. and White, Weld
Inc.

&

&

Co.

Co.,

Lee

Higginson

(jointly); Blyth & Co,,

Bids—Expected to be received sometime in

ber.

.,"..

_

.

.

.

.

it New England Power Co.
Sept.

17

and

it

was

sell

(par

announced

100,000

$100).

Decem¬

.

(12/9)

that

shares

.

this

of

plans to

company

cumulative

Underwriter—To

competitive bidding.

be

preferred

determined

by

Probable bidders: Lehman Broth¬

ers;

Equitable Securities Corp.; Kidder, Peabody & Co.;

Lee

Higginson Corp., and White, Weld & Co. (jointly);

Merrill Lynch,
man

Pierce, Fenner & Smith Inc., and East¬

Dillon, Union Securities &

Expected to be received

Sept. 1 it

common

New

on

Co.

(jointly).

Bids—

Dec. 9.

Corporation, Rochester, Mich.

was

reported that this company contemplates

the early registration of

gears.

Securities Corp.; White.
Weld & Co. and Shields & Co. (jointly); Kuhn, Loeb &

stock.

Underwriter

Merrill Lynch, Pierce, Fenner & Smith Inc. and
Eastman,
Dillon, Union Securities & Co. (jointly); Equitable Secu¬

Co.,

Equitable

Co.

reported that the company will issue and

ital expenditures.

mined by competitive bidding. Probable bidders: Halsey.
Stuart & Co. Inc.; The First Boston Corp. and Blyth &

Inc.• (jointly);

was

New-Era

Power & Light Co.

reported that the company plans to issue

and

by competitive

the basis of

on

held

Sept. 30.

stock

tinsville, Va. Underwriter — G. Everett Parks & Co.,
Inc., 52 Broadway, New York City. Offering—Expected
prior to Dec. 10.

Inc., New York.

(1)

were

23
it was reported that early registration is
planned of 133,000 shares of common stock (par 10
cents). Price—$3 per share. Proceeds—To be added to
working capital in order to enable company to exercise
options on motels and/or parcels of land. Office—Mar¬

Cyprus Mines Corp..
July 15 ;.itv was reported that approximately 1,000,000
shares of a secondary issue common stock will be
reg¬
istered in the F>all. Underwriter—Merrill
Lynch, Pierce,

sale of about $20,000,000 of senior se¬
curities," but• tync "•r tvpes has not as yet been deter¬
mined. TTndprwrW/.P_'r0 be determined

(par $10) outstanding, if approved, would be
or about Nov. 2. An offering of 45,000 shares
common stock
(par $10) would be issued

on

of additional

Sept.

k

9 it-was reported that the company plans an early
regulation t"An-"filing of 120,000 shares of common stock.
Underwriter— Diran, Norman &
Co., New York. Regis¬
tration—Expected this week.

-v.v^ers:

Last bond issues

it Intercontinental Motels, Ltd.

company

was

stock

payable

issue

New-York.,

the

bonds.

Independent Radio, Inc., Lansing, Mich.
Aug. 31 it was announced company plans to issue and
100,000 shares of common stock (par 10 cents). Price
—r$3 per share. Proceeds—For acquisition of radio sta¬

Sept




new

sell

ing capital, and the expansion of the company's business
manufacturing white printing photocopy equipment.
Office—5642r50 North Western Ave., Chicago, 111.
Un¬

that

about Dec. 8.

or

Manchester

sell

Co.

privately.

4oans,-Tor-research and development, work¬

Prnh~n\

Harrison

Hawaiian Telephone

of

bidding.

on

was reported company received approval from
the Territorial Public Utilities Commission to issue about

it Cojpymation, Inc. (formerly Peck & Harvey
; Mfg. Co.)
Sept. 22 4t was .announced that an early registration of
100,000 shares of .common stock (par value 50 cents) is
planned. Pricer—To-toe supplied by amendment. PYocSfeds

reported

(EST)

Aug. 3 it

Halsey, Stuart & Co. Inc.; Morgan Stanley
& Co. and The First Boston Corp.
(jointly); White, Weld
& Co.-. and Paine. Webber, Jackson & Curtis
(jointly.).

was

a.m.

was reported that the company plans to regis¬
133,000 shares of common stock (no par). Price—$3
share. Proceeds—For working capital and expansion
of plant facilities, and for hiring more engineers. Office
—Newton, Mass. Underwriter—G. Everett Parks & Co.,
Inc., 52 Broadway, New York.
Offering — Expected
prior to Nov. 13. Registration—Expected this week.

writer—To be determined by competitive
bidding. Prob¬

Aug. 3 it

M„

ter

able bidders:

Power &

11

(12/8)

and Shields & Co.

ner

Aug. 26 it

B„

Aug. .6 it

James- Comerford, President, announced that
plans-later in year to issue and sell $20,000,000
of debenture bonds, if market conditions are favorable.
Proceeds—For ^investments, improvements, etc.
Under¬

Dallas

Under¬

a

19,

Smith

selling stockholders.

Sept." 14 it was reported that this wholly-owned sub¬
sidiary of Louisiana Power & Light Co. is contemplating
the issuance and sale of
$6,000,000 of first mortgage bonds
having a maturity of no longer than 25 years and perhaps as short as 16 years.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

through Stern Brothers

®

Consolidated Natural Gas Co.

Supermarkets, Inc.

,

ing—Expected in the, early part of November.

to be received up to

company

Fenner &

of

per

derwriter—Simmons & Co.,

Proceeds—To

Co.
(jointly); Salomon Bros. & Hutzler and Eastman
Dillon, Union Securities & Co. (jointly); Lehman Bro¬
thers; Stone & Webster Securities Corp. Bids—Expected

(12/1)

Dec. 1.

Cracker Barrel

sale

plans the is¬

Lynch, Pierce, Fenner & Smith Inc. and White, Weld &

Underwriter—Tq be determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—Expected

—To repay

'

writer—Cruttenden, Podesta & Co., Chicago, 111. Offer¬

shares

(11/241)

$16,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive bidding.
bidders: Halsey, .Stuart
Co. Inc.; Merrill

reported that the company plans the is¬
suance and-sale of
$50,000,000 first and refunding mort¬
gage bonds. Proceeds — For construction expenditures.

on

Utilities Co.

reported that the company

Probable

was

to be received

was

and

suance

Office — 1500
Underwriter—In New York to be named in
early Octo¬
ber. Offering—Planned for mid-October.

the

Miami,. Fla.

was

Aug. 20 it

and for general corporate
Clifton Ave., Lansing, Mich.

purposes.

v

one

Gulf States

coffee

houses, establish commissaries

•

Bank of

announced

Georgia-Pacific Corp.
Aug. 19 it was reported that the company plans to reg¬
ister about $15,000,000 of convertible debentures or pre¬
ferred stock,
conversion of which would add about
600,000 shares to the number of common shares cur¬
rently outstanding. Proceeds—To assist in the financing
of the recently acquired Booth-Kelly Lumber Co. Office
—Olympia, Wash. Underwriter—Financing in past has
been handled by Blyth & Co., Inc.

$1).\ Underwriter—Cruttenden, Podesta & Co.,
Chicago,

-

the

Peabody & Co. (jointly); Blyth & Co.; Inc. and Lehman
Brothers
(jointly); White, Weld & Co., and The First
Boston Corp. Bids—Expected to be received up to 11:30
a.m.
(EST), Oct. 27.

17 the

suance

'"v

■*

•••

,

Bros.

July

May

-

common

Merrill Lynch, Pierce, Fenner & Smith Inc. and Kidder,

year.

—$3

plans

of

reported that the company plans to file
SEC $20,000,000 of first mortgage bonds. Pro¬

bidding.

before the end

shares

per share. Proceeds—To increase capital and
Underwriter—None.

ceeds—To

Co.

Offering—Expected

of

Florida

was

tion program.

was

Aug. 17 it

reported that the company is contem¬
plating some additional equity financing, the form it will
take will be decided on
shortly. Proceeds—For construc¬

111.

basis

gram.

Brookiyit Union Gas
Aug.

year.,

it Liffidberg Steel Treating Co. ..
-<
>.
Sept. 21 it was reported that the company plans a regu¬
lation "A" filing of about 80,000 shares of class A com¬

mon

—

through Smith, Ramsey & Co., Inc., Bridgeport,

Conn.

250,000

X,xx-Xx(

surplus.

company's treasury for expansion and
Underwriter—Previous financing was ar¬

expenditures.

about

Price—$40

$1,100,000

stock to stockholders in the ratio of one
each seven shares held.
Proceeds
To

the

of

First National

'the

the issuance of about

sale

Inc., Texas
this company

that

Sept.
22 on approving a proposed
offering to stockholders of
150,000 additional shares of capital stock (par $10) on

common

share

new

approve

and

Forms,

reported

was

Sept. 14 it

Registration

announced that stockholders will be asked

to

it

.

:®

Bridgeport Gas Co.

on

be

stock, part of which will be for the company's account
and the remaining part will be sold for the account of
certain selling stockholders.
Underwriter—Kidder, Pea¬
body & Co., New York. Registration—Expected on Sept.

capital. Business—The company is engaged in the manu¬
facture of aircraft and missile parts, aluminum containers
and beer
barrels, aluminum curtain wall sections for the
derwriter—S. P. Fuller & Co., New York.
—Expected sometime in October.
~

Business

Sept.
contem¬

company

ceeds— For expansion
program and additional

v

To

year.

it Eiromiiis

that

—

Registration-

1.

announced

was

Underwriter

(jointly); Blyth & Co., Inc.; Drexel & Co. and Equitable
Securities Corp. (jointly). Offering—Expected later ttois

Manufacturing Co., Kansas City,

it

debentures.

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; A. C. Allyn & Co., Inc.
and Ladenburg, Thalmann & Co.
(jointly); White, Weld
& Co.; The First Boston Corp. and
Glore, Forgan & Co.

of

—D.

convertible

determined

Atlanta, Ga., and east of Chicago, 111. Gross sales
volume in the fiscal year ended June 30 was
reportedly
about $10,000,000. Proceeds — In
part to selling stock¬
holders, and, in part, to the

Co., Salomon Bros. & Hutzler and Eastman, Dillon, Unicai
Securities & Co. (jointly); Lehman Brothers and'Bear,
Stearns & Co. (jointly).
Bids—Expected later in tha

•

Barton's Candy Corp. X;X,

July 15 it

4$

stock.

approximately 200,000 shares of

Business—Manufacturer of mufflers and

Underwriter—Mortimer B. Burnside & Co., Inc.,
York.

Continued

on

page

51

-

50

The Commercial and Financial Chronicle

(1286)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week
Latest

IRON

AMERICAN

42

gallons

Crude

runs

Sept. 11
Sept. 11

(bbls.)———;

output

(bbls.)
(bbls.)

(bbls.)

output

output (bbls.)
bulk terminals, in transit, in pipe

and unfinished
fuel oil

ASSOCIATION

gasoline (bbls.) at—.
i——

at—

Residual fuel oil

8,132,000

7,950,000

*29,450,000

29,077,000

1,939,000

2,088,000

*12,673,000

12,024,000

12,415,000

6,098,000

6,373,000

5,973,000

6,788,000

Total

183,491,000
32,787,000

31,354,000

29,473,000

ENGINEERING

—

163,198,000

147,907,000

146,190,000

57,507,000

55,525,000

68,378,000

58,778,000

181,509,000

183,104,000

J.

Public construction

—»
•

——

State and municipal
Federal
COAL OUTPUT

(U.

543.844

666,223

Crude

503,531

483,610

539,583

SYSTEM—1947-49

Electric output

AVERAGE

(COMMERCIAL

FAILURES

DUN

—

steel

(E.

PRICES

METAL

&

M.

(New

Lead

(St.

tZinc

York)

Zinc

Straits

at

(primary pig.

tin

109,042,000

125,900,000

110,000,000

167,600,000

product

99,300,000

83,300,000

201,133,000

23,800,000

10,700,000

84,300,000

,

Orders

148

132

14,003,000

329,000

132

12,779,000

(New York)

U. S.

BOND

99.5%)

4,159

1,773

2,151

37,172

40,309

25,611

6,387,367

5,373,412

6,666,700

119,477

105,905

138,626

90,162

95,178

100.521

8,075

10,690

27,336

12,422

37

10,769

30,020,000

23,970,000

33,952,000

1,493,000

*1,142,000

1,750,000

2,364,468

6,044,017

3,965.800

2,310,106

5,923,236

3,935,400

54,362

120,781

30.400

2,195,336

2,899,800

3,982,524

pounds)—

57,206

*89,985

76,916

79,860

134,020

100,640

89,123

108,127

86,932

.92,175

103,432

215,560

of

Average corporate

of

Intercity

(in

EXPORTS
of

262

6.196c

To

North

$66.41

$66.41

$66.41

$66.49

To

$41.50

$40.83

$39.83

$43.17

To

Asia

South

U.

S.

exports

30.875c

29.600c

26.075c

29.025c

25.700c

13.000c

12.000c

10.750c

Bituminous

12.800c

12.800c

11.800c

10.550c

Government Bonds.
—

Aaa

—

Aa

.—

11.500c

11.500c

11.500c

—

_

—

———

—

Group

Group

Group

11.000C

11.000c
24.700c

Production

—

INDEX

(tons)

102.000C

102.250c

95.500c

Production
Oven

80.67

83.20

84.68

85.98

90.06

coke

1949

88.67

88.27

89.92

94.41

85.72

86.38

87.86

92.79

83.53

83.91

85.59

89.92

79.49

80.32

80.93

Sept. 22
Sept. 22
Sept. 22

84.17

84.68

88.54

83.40

83.79

85.33

89.51

85.98

86.24

87.86

92.35

4.45

4.17

3.45

4.85

4.81

4.71

4.41

Sept. 22

4.54

4.51

4.42

4.11

Sept. 22

4.73

4.68

4.57

4.22

4.48

Sept. 22
Sept. 22'

4.90
5.23

5.16

5.11

In

4,85

4.81

of

4.91

4.88

4.76

4.71

4.69

4.57

382.7

385.4

Total

264,056

374,535

298,923

250,491

335,940

325,729

97

96

551,214

of

Rye

109.23

110.20

109.40

Total

initiated off

the

Rice

sales

Initiated

Short
Other

Hay,

purchases

Other

>56,500

202,000

207,020

364,760

332,510

sales

244,220

405,160

389,010

Early

531,104

542,103

660,150

78,870

93,090

113,870

643,880

624,808

759,137

712,932

722,750

717,898

873,007

806,522

3,451,130

415,650

564,290

2,248,620

2,505,378

3,168,087

Late

2,921,028

3,732,377

DEALERS

Dollar

sales
of

—

AND

SPECIALISTS

SECURITIES

by

dealers

ON

EXCHANGE

(customers'

Customers'

1,834,992

1,155,792

$98,212,654

$51,501,247

short sales

1,118,526

Aug. 28

1,217,254

8,818

1,546,095

10,294

Aug. 28

1.109,708

1,206,960

1,541,297

$61,000,891

$80,042,388

Number

of

shares—Total sales

Aug. 28

-

304,290

314,340

378,030

sales

Other

Bales

Aug. 28

3041290

3141340

378.030

Aug. 28

499,150

554,830

672,830

SALES

ON

THE

shares
N.

Y.

Total

round-lot

Short

Aug. 28

U.

10.446,460

11,623.260

15.203,330

10,894,480

12,130,920

15,825,260

14,133,900

621.930

——Sept

,1.,

j

other than farm

319.6

15

119.4

-

119.0

88.7

88.1

87.9

93.2

107.7

107.1

106.8

100.7

98.6

96.9

109.1

Sept. 15

and foods

13,633

14,659
34.308

33,664
168,957

182.936

245.992

265.729

17,974

17,852
1,863,801

1,736,204

itons)_

8,316

8.048

6.681

16,305

16,075

15,183

32

31

•

33

53,385

52,641
118,707

126.610

72,356
31,308

72,632

.

.

-

•

219.

-

,

-

3,026

219

192

-

230
.

108

1.166

,

132,300

71,069
28.890

3,129_

230

1,264

_

32,277 "•

.

3,082
-

,

48.407

118,274

IIHIIIIIIIIHII
—HIHHHI:

,

17,434

1,857,863

HIIII*"

(000's

ultimate

138,200

•
-

■

174,750

customers

omitted)

52,119,894

OF

50,409,616

45,746,221

$841,988,000
56,643,611

$768,636,000

'

55,555,432

'

259,131

290,911

330,890

238,559

365,434

290,856

customers—Month of

customers at June

INSTITUTE

STEEL

STEEI

3oI_I

56,804,974

(AMERI¬

CONSTRUC¬

of

closed

July: (tonnage)—estimated

(tonnage)—estimated
AND

HOURS—WEEKLY

ESTIMATE—U.
of

S.

DEPT.

OF

August:

128.3

128.3

128.3

126.0

manufacturing

Durable

111.3

crude

1959, as against Jan. 1, 1958 basis of 140,742,570

rime Western Zinc
•

V

4-

'

sBased

runs.

on'

new

annual

tNumber of orders not

tons.

capacity

reported

of

since

147 633 670

All

manufacturing

Durable

'

*

■

,

.

.Hourly

X

All

of

on delivered basis at centers where freight from East St. Louis exceeds
li-

goods

*

$89.87

-

.

^

•

goods

97.03

-91.14

80.00

76.04

earnings—

40.3

39.8

.

.

39.6

40.6

40.0

39.8

39.4

-

•

manufacturing

Durable goods
Nondurable goods

40.5

40.9

goods

$84.35

96.12
80.00

Hours—

tons

introduction

$88.70

~
I.

goods

Nondurable

Nondurable

([Includes 1,024.000 barrels of foreign




4.703
24,152

13,806

~~
_~IH!"~~~~~"

STRUCTURAL

AVERAGE

Ail

119.3

15

Sept. 15
sept. 15

Sept!
'

Meats

tr

4,971

3,311

22,553

169,648

IIIH.I

LABOR—Month

commodities

er^half cent^a'pound

3,874

3,311

22,553

Weekly earnings—

products
Processed foods

•Revised figure.

574,413

1,835,800

_________

,

FACTORY EARNINGS
.

Farm

All commodities

seed

,

ultimate

Shipments

Commodity Group—
All

531,439

1,726,995

_—IIH'
IIIIIIIIII
(bushels)"~II_HH

crop

2,475

532,669

1,710,300

$867,189,000

Number of

678,420

S. DEPT. OF

18,981

4,101

246,897

13.455.480

Aug. 28
—

507,660

6.017

18,535

4,191

3,874

-IIIIIHII
~
"I—

___;

(barrels)

TION)—Month
448.020

4,688

19,088

IIIIIIII

of\ June

Contracts

WHOLESALE PRICES, NEW SERIES
LABOR — <1947-49 = 100):

and

sugar

(tons)

(pounds)

CAN

Aug. 28

67,134
24,441

33,705

(tons)'

10,481

61,574
21,632

—

June

sales—

sales

Other sales
Total sales

8,893

22,524

-IT__II_V_~__II_TII
HHH
-IIIIIIIIIII

(tons)

FABRICATED

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS (SHARES):

11,512

121,924

8,946

4,767

(hundredweight)

for

Revenue from

STOCK

14,815
109,339

(tons)

(tons)

Month

385,380

STOCK

614,845

14,678
111,185

III

(tons)

ELECTRIC INSTITUTE—
Kilcwatt-bour sales to ultimate

453! 150

TOTAL ROUND-LOT

508,394

32,485

39,543'

EDISON

Aug. 28

Round-lot purchases by dealers—Number of

-47,015

62,213

timothy

(tons)

Pecans

453,150

Short

52,090

565,629

IIII~_IIH—m
.IIIIILI—II"

Cranberries

$51,688,977

Round-lot sales by dealers—

470,449

20,996

23,231

.IH-H

;

1,201,258

$56,122,308

406,857

22,077

23,756
51,603

I__II~~

(bushels)
(bushels)

Cherries

8,354

Aug. 28

value

1,422,164

.___

(pounds)

Grapes

1,209,612

4,798

1,048,533

summer

Apricots
Aug. 28

Customers' other sales
Dollar

1,455,720
$74,056,085

260,217

1,075,378
408,442

(tons)

beets

Pears

1,288,581

$65,946,288

20,858
188,769

III

(bushels)

Peaches

Aug. 28

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

-

Hops (pounds)
Apples, commercial

Aug. 28

20,454

bags)

and

Broomcorn

purchases)—t

;

282,294

3,799,844.

186,618

IIIIII

;

Sugar

COMMISSION

shares

value

209,627

;

Sugarcane

2,910,612

STOCK

Y.

N.

1,179,924

207,072

IIIIIIII

(hundredweight)

Tobacco

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

1,462,218

909,333

I

Total

2,411,452

2,616,060

1,118,960

(bushels)

summer

Fall

2,671,080
499,160

Aug. 28

4,173,470

909,333

20,996

Sweetpotatoes

2,664,413

367,440

4,381,772
1,116,405

^

spring
spring

Early

93,590

2.447,604

~

II

.

(tons)

Potatoes

519,140

Aug. 28

.

thousasds):

Winter

212,300

389,420

Aug. 28

sales

(in

l
;

______

lespedeza

40,400

1,007,493

REPORTING

dry edible (cleaned—100 lb. bags)""
dry field (cleaned—100 lb. bags)
Soybeans for beans (bushels)
Peanuts
(pounds)

360,650

Aug. 28

sales

1,045,614

CROP

OF AGRICULTURE—

Beans,

of members—

account

DEPT.

Peas,

37,200

Aug. 28

._.

Short

Number

clover

251,800

Aug. 28

sales

Odd-lot

alfalfa

10,300

Aug. 28

sales

COMMERCE:)

(tons)

237,040

Aug. 28

round-lot transactions for

LOT

wild

Late

sales

Total

1,715,080

the floor—

on

purchases

Total

1,366,010

2,454,210

OF

(bales)

Aug. 28

:

transactions

Total

2,044,190

1,958,910

(tons

bales)

—

(bushels)

lb.

all

Aug. 28

sales

Total

1,673,550

1,681,010

S.

grain

Aug. 28

Other

Total

(100

Aug. 28

sales

Total

340,070

1,402,740

period

(bushels)

Hay,

1,762,520

floor—

purchases

Short

Other

410,020

Aug. 28

sales

sales

transactions

2,430,330

285,360

pounds).
of

(bushels)

Hay,
1,870,510

278,270

(DEPT.

spring

Hay,
1,679,460

2,000

(bushels)

Cotton

Aug. 28

-

August:

A.—

(bushels)

Hay,

Aug. 28

Other

Total
Other

-

of

tons)

(bushels)

Sorghum

108.60

Aug. 28
l—

,

U.

Flaxseed

MEM¬

OF

month

S.

of

(net

(bushels)

Barley

July:

III11II
IIIII

month

stocks at end

(running

spring

Oats

specialists in stocks in which registered—

sales

1

Durum

509,651

—Sept. 18
ACCOUNT

(tons

GINNING

Sept.

All

of

pounds)

Winter

97

550,083

For

2,000

Crop as of September
all (bushels)
Wheat, all (bushels)

305,978

76

—

of

Corn,

310,445

567,295

purchases

Short

A.

tons).

tons)

tons)___

end

PRODUCTION

392.8

4.42

of

copper

BOARD

4.25

378.0

To

4.45

4.74

Sept. 12

AVERAGE ==100
FOR

S.

(net

(net

tons)

(net
at

2,000

CROP

4.52

4.87

—Sept. 12

end of period

TRANSACTIONS

U.

Refined

4.87

4.93

(net

coke

(tons

COTTON

Sept. 22
Sept. 22
Sept. 22

Sept. 12

i
at

8,818

MINES)—Month

MINES)—Month

INSTITUTE

Crude

83.91

83.15

OF

lignite

Copper production in U.

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS
Transactions

HIIII

tons)_.

tons)

stock

coke

COPPER

OF

(net

86.69

84.17

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
ROUND-LOT

.

'

and

anthracite

(BUREAU

Oven

80.92

Sept. 12

—

activity
(tons)

(net

(BUREAU

coal

Other

(tons)

Unfilled orders

:

August:

COKE

24.700c

102.625c

OUTPUT

of

10.000c

24.700c

COAL

NATIONAL PAPERBOARD ASSOCIATION:

Percentage of

tons)

J.

10.500c

Sept. 22

A

Orders received

(net

~~

Pennsylvania

Sept. 22

.

COMMODITY

anthracite

America

tons)

America

28.800C

Sept. 22

———

Average corporate

MOODY'S

MINES)—

Pennsylvania

Central

(net

13.000c

MOODY'S BOND YIELD DAILY AVERAGES:

Industrials

of

and

30.950c

Sept. 22
Sept. 22

Group

357

tons)

27.475c

Sept. 22

Group

Utilities

by

i

Sept. 22

.

Industrials Group

Public

OF

Europe (net tons)

Sept. 22

Railroad

(BUREAU

263

_I_H

Baa

transported

July:

6.196c

A

;

freight

tons)

222

-

U. S.

ASSOCIATION, INC.—

6.196c

Aaa

Utilities

undelivered

July:

general

Month

Sept. 22

Aa

Public

and

month)

AMERICAN TRUCKING

COAL

11.000c

7,058,000

Refined
(tons of 2,000 pounds)
Deliveries to fabricators—

475,000

24.700c

255,258.000,

INSTITUTE

cars—

order

on

264

—

*33,433,000

export

delivered

cars

cars

6.196c

at

*262,985,000

60,000.

4,273

(end

AVERAGES:

DAILY

Government Bonds

Railroad

CAR

20,956,000

1,753

&

at

PRICES

Baa

and

16,885,000

17,313,000

domestic

28,802,000

20,919,000

(barrels)

32,000

29,089,000

4,890

Month

16
16
16
16

22,258,000

16,000

12,240,000

*7,340,000

212,558,000
190.240,000'

26,606,000

36,147,000

(barrels)

freight

new

freight
Backlog of

145

13,109,000

for

250,444,000

223,806,000*

25,934,000

August:

New

8,457,000

427,000

stocks

of

Beehive
MOODY'S

96,000

278,192,000

imports

RAILWAY

Month

22,192,000

7,225,000
341,000

all

AMERICAN

223,325,000

102,100,000

16
16
Sept. 16
Sept. 16

at

(East St. Louis)

Aluminum

•—r

—

—_

at

Louis)

(delivered)

210,300,000

6,375,000

— Sept.
.—-Sept.
Sept.
Sept.
—Sept.
Sept.

—

—

at

11,800

103,900

238,439,000
212,489,000

(barrels)

(barrels)

To

—

at—

refinery

Export

4,827,000
4,817,000

10,800

89,000

Undesignated

Electrolytic copper—
Domestic refinery at
Lead

228,800,000

QUOTATIONS):

J.

5,897,300
5,782,600

6,700

(barrels)—

imports

(net

ton)™

(per gross

168,096

5,461,500

(barrels) IHIII

output

—Sept. 15
Sept. 15
Sept. 15

*

115,326

112,710

Of

5,558,000

output

Sept. 17

Pig iron (per gross ton)
Scrap

172,600,000

Sept. 12
Sept. 12

—

lb.)

(per

oil

Increase

$332,307,000

PRICES:

COMPOSITE

AGE

Finished steel

INDUSTRIAL)

oil

gasoline

carriers

AND

BRADSTREET, INC
IRON

$377,900,000

£ep;' *4
2e pr ;1
pr Yl

100

=

(in 000 kwh.)—

163,857

88,612

June

INSTITUTE—Month

consumption
(barrels)

$338,800,000

INSTITUTE:

ELECTRIC

EDISON

of

month

therms)!

Indicated

$298,500,000

INDEX—FEDERAL RESERVE

STORE SALES

tons) end

production (barrels of 42 gal¬

crude

output

Refined

Sept. 12

—

—.—

DEPARTMENT

167,323

-

Natural

544,089

Sept. 19

—

Ago

June

each)

Domestic

449,424

„

(tons)——
Pennsylvania anthracite (tons).

(M

PETROLEUM

June:

480,647

Sept. 17

coal and lignite

Bituminous

of

therms)

sales

gas

lons

OF MINES):

S. BUREAU

(M

Total domestic

.

\
Sept. 17

construction

Private

Year

Month

aluminum in the U. S.

tons >—Month

sales

gas

Benzol

construction

Previous

■'

AMERICAN

RAILROADS:

CONSTRUCTION

ENGINEERING

of primary

GAS ASSOCIATION—For

Mixed

172,891,000
29,648,000

168,578,000

Sept. 11
Sept. 11
Sept. 11

NEWS-RECORD:

Total U. S.

of that date^]

are as

MiNES):

Natural gas sales (M
therms)
Manufactured gas sales (M therms

\

CIVIL

OF

'"July:;

7,845,000
28,056,000

1,932,000

11,938,000

fep^' H

(bbls.) at

AMERICAN

OF

(BUREAU

short

of

■

—

either for tbi

are

1

at

(bbls.)

6,784,625

2,180,000

freight loaded (number of cars)-.
—— Sept. 12
freight received from connections (no. of cars)—Sept. 12

Revenue

Revenue

(in

line

Stocks at refineries,

(bbls.)

6,822,575

7,009,235

118,181,000

~ep±" 7,
Sept. 11
Sept. 11

Finished

1,816,000

29,490,000

®epl" H

output

Kerosene

332,000

ALUMINUM

Stocks of aluminum (short

Gasoline

Distillate

<356,000

6.812,975

of quotations,

cases

Month

67.3

AMERICAN

Kerosene

Residual fuel oil

in

or,

Ago

11.7

(bbls. of

output—daily average

each)
to stills—daily average

Distillate fuel oil

Ago

*12.6

§359,000

oepi.

(net tons)——

condensate

and

Week

that date,

Latest

§12.7

=>epi. -so

production and other figures for thfc

cover

Year

INSTITUTE:

PETROLEUM

oil

Crude

Month

on

Thursday, September 24, 1959

Dates shown in first column

Production

Equivalent to—
ingots and castings

Steel

AMERICAN

month ended

or

Previous

Week

INSTITUTE:

STEEL

AND

operations (per cent capacity)

Indicated Steel

month available.

or

...

$2.19

"

$2,23

•

"$2.13

2.35

I_~

2.39

2.29

2.00

2.01

1.93

"

Volume 190

Number 5384

.

.

The Commercial and Financial Chronicle

.

Continued from page 49

y"

;

,

South Carolina Electric & Gas Co.

^

.

June

7

Northern

June

9

it

Illinois

Co.

announced

was

Gas

that

end of the year,

to

the

before the

company

(1287)

expects either to sell $10,000,000 to $15,-

000.000 of straight, non-convertible preferred stock

rent

simi¬

3,232 shares of capital stock. Proceeds—To stockholders

22, S. C. McMeekin, President, announced plans
approximately $8,000,000 of bonds in December,
Proceeds—To repay bank loans incurred for cur¬
construction program.
Previous issues have been

entitled

sell

1959.

writers—The

First

Boston

Corp.

Urethane

placed privately.

Sept.

Co.

stockholders will vote Sept. 24

reported

was

Co.

of

value) from 50,000 shares to
100,000 shares, of which it is planned to issue and sell
35,000 shares. Proceeds—To retire bank loans. Under¬
writer—White, Weld & Co., New York.

Sept.

stock

(no

September.

Tampa

par

Electric Co.

it

14

reported that

was

the sale of about

the company

$7,000,000 of additional

is planning

stock,

common

rights offering and a negoti¬
underwriting. Last rights offering was underwritten
by Stone & Webster Securities Corp., New York.
probably in the form of

a

dividend not

a

exceed 5%%.

to

/

..

of

sale

$8,000,000

of

30-year first

mortgage

petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; White, Weld & Co.; Kidder, Peabody & Co.;
The First Boston Corp.; Kuhn, Loeb & Co. and American
Securities Corp.
Bids—Expected to be received up to

14 will

proposal to market 150,000 shares ($15,000,000)
convertible
second
preferred
stock,
which
will

carry

Underwriter—

11

Dillon, Read & Co. Inc., New York.

Chicago, 111.

Becker & Co. Inc.,

G.

Underwriter

(10/29) '

reported that the company plans the issu¬

bonds due 1989. Underwriter—To be determined by com¬

Corp.

14 it was announced stockholders on Oct.
on

of

stockholders.

selling

capital and surplus.

Proceeds—To increase

—A.

certain

of

account

the

for

part

vote

was

and

ance

Texas Gas Transmission

Sept.

(10/1)

reported that $1,015,000 of partnership

was

^Wisconsin Public Service Co.

Co., Chicago, III. ■'«

Insurance

it

22

Sept. 21 it

'

Reserve

that the company is planning

170,000 shares of 6% class A common stock

a

ated

Sept. 14 it was reported that the company plans early
registration of 110,837 shares of common stock, part of
which will be sold for the account of the company and

reported

was

participations will be registered in the immediate future
with the Attorney General of the State of New York,
for offering to New York State residents only. Price—
$2,500 per unit. Proceeds—To purchase the property at
8th Avenue and 44th St., New York City. Underwriter—
First Republic Underwriters, 49 W. 32nd St., New York
1, N. Y. Offering—Expected Oct. 1.

received

preferred

*

Corp. of Calif.

it Velvex Mid-City Parking Center
Sept.

Inc.; Morgan Stanley & Co. Bids—Expected to be
on
Oct. 20. Registration — Planned for late

changing the authorized common stock from 1,000,000 shares of $1 par value (634,161 shares outstanding)
to 2,000,000 shares of 50 cents par value to effect a twofor-one stock split, and on increasing the authorized
on

Aug. 26, 1959.

on

170,000 shares of class B common stock. Underwrit¬
er—Wilson, Johnson & Higgins, San Francisco, Calif.

it plans to issue and sell

announced

shares in connection with

fractional

and

35-year debentures. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

"

Sept. 9 it

Telephone & Telegraph Co.

company

$70,000,000

Gas

Bell

(10/20)

Aug. 24

Co., both of New York.
Piedmont Natural

14 it

the sale of

Southern

Forgan &

Glore,

and

receive

to

10% stock dividend declared

lar to the

1958 offering, or to borrow from banks to tide
the company over the year-end, as it has done in the last
two years. Proceeds—For construction program. Under¬

51

(EST)

a.m.

Oct.

on

Oct. 29. Registration

—

Scheduled for

1.

Tex-Tube, Inc.
Ryder System Inc.

this Fall of

stock
•

an

additional 75,000 shares of present com¬

(par $5),

stock

mon

150,000 shares of new common

or

The ICC has approved the proposed

(par $2.50).

two-for-one stock
New

Aug. 28 it was announced that the stockholders of this
company have authorized an additional 150,000 shares
of
common
stock.
Proceeds—For
working
capital.
Underwriter—Moroney, Beissner & Co., Houston, Tex.
Offering — Expected in the near future of a block of
common stock.
Registration—Planned for late Sept.

the company plans issuance

Aug. 3 it was reported that

Transwestern

York.

Sept.

& Co.

(Howard W.)

Sams

it

21

this

that

reported

was

stock

common

plans

company

the

the

of certain selling

stockholders.

derwriters—Lehman Brothers and Merrill
Fenner & Smith Inc.,

Indiana.

'

.

Scott

&

registration of
ness

vacuum

Reporter's

let

and
the

sit

to

at

back
if

down

settle

pricing

original

rough

were

issue

an

in

not

was

of adjustment con¬
under way in the secondary

The

process

tinues

that is in

market,

corporate

gilt-edge section of the

the

list.:,

,v But
things have taken on a
brighter hue in the corporate new
issue field even though this turn
.

for

prove

might

better

the

fact

;;;

under¬

that

remains

"out-thewindaw" deals in the last week
and that recent new emissions, re¬
leased from syndicate to fend for
themselves, have been doing quite
well after their initial selloffs.
have

writers

two

had

Co.'s
$45 million
of new debentures
carrying '/ a 7,5 % %
coupon - ar.d
priced to yield 5.625%, were dis¬

/

New.

Telephone

England

t

tributed

yield 5.65%, also were taken down
quickly.': 7
' '
/
the issues,

The manner in which

lacking

into

new

a

went

clause,

market
phase

as

of a
out

moved

has
far

as

cor¬

capital is concerned.

porate

really,were induced and able to
go out and "ring door-bells." ' *"
That

has been

offered

operations, or bidding for new is¬
sues,

had to contend with the fact

that

by far the bulk

of




a

the

Load

Telegraph might decide
its $250 million project
get along with bank credit
a spell.

for

given

continues

.»

•

•

offers

area

wide

as

turn

rowers

at

this

deals,

none

bit

a

more

cautious

Several tax exempt

stage.

substantial,

them

of

already have been set back for a
while.

7,

*

''

calendar

futures

the

■

Light

Issues

build up, the invest¬

to

ment market will not be

ahead

sues

Only

hampered

far

nothing

but

it

crowded

is

if

that

threatens

some

similar

has

to

a

calendar
become
really
and

bankers

get around
business.

almost

the

to

borrowers

rescheduling

million

DIVIDEND NOTICE

a range

due

bonds

up

for bids

Boston Edison
bonds on
will
be
opened

Co.'s

tenders

which

10

cents

value;

par

10,000 shares are
already out¬
standing, and upon completion of
the current financing outstanding

capitalization of the company will
consist of 110,000 shares of the
stock.

common

Gas Co.'s $30

California

of

.

capitalization of the

are

Tuesday, and
$15 million

on

new

E. E.

Hawley Opens

SHREVEPORT, La.—Eugene E.
a

securi¬

ties business from offices

at 1706

in

is engaging

Hawley

Boulevard.

Centenary

''

Wednesday.

Southern
Gulf
has1135,000 shares
of common
up
for sale and on
Tuesday United Utilities, Inc., is
offering 229,606 shares on "rights."
On

dividends

Monday,

Utilities

DIVIDEND

Inc.,

NOTICES

September
DIVIDEND

NO.

17,

the

1959.

168

Common Stock Offered

Mines

COMMON STOCK
Dividend No. 199
65 cents per

a

matter

York

common

stock

at

W.

Chairman

and

MICHEL,

PREFERENCE STOCK,

Treasurer.

4.48% CONVERTIBLE SERIES

general

for

company

purposes.
The. Heritage;

York,

organized

New

York

under
on

July
a

22,

real

mortgage, brokerage, ser¬
vicing and finance business. With
its office in Albany, N. Y., the
company
expects to concentrate
its
activities
primarily
in the
Albany - Troy - Schenectady area.
the

COMBUSTION

28% cents

per

shore.

The above dividends

able

of New
the laws

1959, intends to engage in

is

STOCK,

Dividend No. 46

corporate

estate

area

PREFERENCE

4.56% CONVERTIBLE SERIES

ENGINEERING
Corp.

State

market area in

Dividend No. 50
28 cents per share;

a

price of $3 per share.
Net proceeds from the sales of
the shares will be used by the

share;

1959.
CLIFFORD

Golkin, Bomback & Co. is of¬
today
(Sept. 24), 100,000
shares of The Heritage Corp. of

of

Limited,

of

per

September 30,

*

payment

meeting

a

dividend

(17'/2c)

the

following quarterly divi¬

dends:

of the Board of Directors of
held this day, a quarterly
Seventeen
and
One-Half
Cents
share (in Canadian Funds)
was
declared payable on October 30, 1959, to share¬
holders of record at the close of
business on
At

Heritage Corp.

Board of Directors has

The

authorized

LIMITED

MINES

DOME

Dome

This

of

fact, some of
the recent improvement marketwise in the recently released is¬
As

■

is 400,000 shares of com¬

stock,

mon

debt issues of
the
largest
being

two

Southern

next week.

for

consequence,

of

Thus

will

October.

financing services as

Authorized
company

especially by the several new is¬

New

In view of the trend in prices
yields, it might not be sur¬
prising to see prospective bor¬
r

and

the

financing

fering—Expected sometime in

that which the company proposes

were

Easing

had

pretty much to themselves except
really basic consideration.

in the

Proceeds—For working

stockholders.

Underwriter—Blyth & Co., Inc., New York. Of¬

fering

have

up

dis¬

far short of
being attractive to the individual:
He
now
may,
at
least, take a
second look.
:
/'
yields

certainty

for one

certain selling

capital.

of mortgage

lost art over

a

happened in the corporate capital

"market

of

to offer.

for the reason that

long period

market

setting

securities

phase/ of

tribution
a

artifi¬

Bankers

representatives

latter's

the

credit,

borrowers

around

$1,000 bond on the two
successful flotations which meant
that

which, 100,000 shares will be for the company's ac¬
remaining 106,000 shares for the account

per

of

years

boys" as buyers for
are frequently called,

offer dealer concessions of

easy

long

a bit more
pricing,
the

Underwriters have been able to

and

the

with

a

abundant

Over

cially

the

attraction

the

"non-callable"

suggests

for

quickly and moved to a

premium over,' the offering price.
Georgia
Power 5%s,
priced to

both

way

and

have things all their own
while.

may not

$7.50

temporary.

The

more

once

"hallroom

institutions

them

at

their

in

(9/24)

forego

Although

turning

underwriters
realistic

:

of

to

Helps

Spread

look

to

111.

phone &
and

New

.With yields on new issues now
at
levels where
individuals can
afford

Freight Lines, Inc.

Yellow Transit

Sept. 1 it was announced that subject to ICC approval,
it is planned to offer 206,000 shares of common stock,

noon

ascribed to inklings, still

was

keeping with their ideas.
Profitable

to

up

unconfirmed, that American Tele¬

content

fully

received

be

sues

latter

the

And

will

investors.

institutional

times,

is contem-

company

would wind up

piece 'of business

Our

reported that the

was

(EDT) on Sept. 24
at Fidelity-Baltimore National Bank, 10 Light St., Bal¬
timore 3, Md., for the purchase from the company of
Bids

~

with

it

10

it United States Fidelity & Guaranty Co.

cleaners. Underwriters—

f,

Cleveland, Ohio.

was

count and the

Busi¬

York, and McDonald & Co.,

Kidder, Peabody & Co., New

both of New York,

York; and Straus, Blosser & McDowell, Chicago,

that the company plans nearly

100,000 shares of common stock.

Manufactures

—

reported that the company plans to use
its best efforts to register 5,000,000 shares of common
stock with the SEC. Price—$1 per share. Office—314
First National Bank Bldg., Colorado Springs, Colo.

plating the issuance and sale of some additional com¬
mon
stock.
Underwriters—Lee Higginson Corp., New

£.

Co.

Fetzer

14 it was reported

Co.

Life Insurance

Fidelity

Aug. 17 it

..

r

Sept.

World

Un¬

Lynch, Pierce,

it Trav-ler Radio Corp.
Sept.

/

■

Bids—Expected to be received on Dec. 7.

Burr, Inc.

Under¬

Share Corp., Indianapolis,

writer—Indianapolis Bond &

Co.

Line

was

from West Texas to the Arizona-California border.

sold

company's account and part of which will be

for

account

Pipe

of first mortgage bonds, series

E, due 1989. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co.; Blyth & Co., Inc., and
White, Weld & Co. (jointly); Merrill Lynch, Pierce, Fen¬
ner
& Smith Inc.; The First Boston Corp.; Coffin &

ties, probably in units. Proceeds—To build a pipe line

a

will be sold for

offering, part cf which

it

25

announced that this company plans to

was

sell $7,500,000

issue and

reported that this company expects to
issue and sell $40,000,000 to $50,000,000 of new securi¬

Aug.

it

Sept. 17

Underwriter—Blyth & Co., Inc.,

split.

(12/7)

* Worcester County Electric Co.

second

largest

upstate New York,
and the company believes that no
organization presently operating

October

are

pay¬

1959

31,

to

stockholders of record Octo¬

Dividend No. 224

ber 5. Checks will be mailed

Dividend of Twen¬
ty-Eight Cents (28(f) per share
on all the outstanding stock of
Combustion Engineering, Inc.
has
been
declared, payable
October 30,1959, to stockhold¬
ers of record at the close of

from the Company's office in
Los Angeles, October 30.

A Quarterly

business October 16,

p. c.

hale,

Treasurer

September 17,1959

1959.

Otto W. Strauss
Vice-President and Treasurer

4

■'

-

" 'v

-'

\

52

The Commercial and Financial Chronicle

(1283)

v

President

BUSINESS BUZZ

Washington and You

the

Eisenhower

action

cant

step in

relations

fore
die

at

the

sine
September 15,

law-makers

lution

a.m.

setting

Be¬

adjourned

Congress
6:22

—

passed

reso¬

a

for

the time

re¬

ident Eisenhower's

The

House

of

session

first

in

gress

of

the

Eisenhower

on

Wednesday, January 6, 1960.

As

the second session
86th Congress at noon
session

first

the

began

January 7, and did not end until
the middle of September, it was
the longest session since 1951
when it ran from January 3 to

his

had

legislative

him

Congress

ment

be
considerably
shorter
on
Capitol Hill for the Senators
and representatives.

tries
and

tion shows.

is the big election

few

ago Mr. Eisen¬
hower lashed out at the opposi¬

in

long time.
July 11 means, or should mean,
that Congress for all practical
purposes will be winding up the
affairs
of
the
session by the
Fourth of July.
a

what about the

But

1959

ses¬

sion which the Democrats hailed

being

as

superb,

President

which

and

Eisenhower

has

first

the

tremendous

a

and

being

all-around

success

the

Any fair-minded qualified ob¬
of

server

actions

the

of

Con¬

it would appear, would
readily acknowledge that the
Congress

gress,

Democratic-controlled

passed
that

should

legislation

good

some

benefit

all

the

of

all
Republican
membership, for the most part,
was
doing its part. Therefore,
everything was not all white
Furthermore,

people.

they

would agree that the

and

black.

all

The

Democrats, the truth of
is, was on the spot
because they had such a one¬
sided
majority
in
both
the
the

matter

House

Senate.

and

started

session

The

off

extremely slow, but
picked up momentum in the late
spring. There were too many
members
of
the
Senate,
all
Democrats, that were running

people

pat

forcing

to

Congress

lavish

It

Democrats.

some

and

perhaps

reject

the

proposals

spending

all

is

of

slowed

country

II.

Humphrey
John

F.

Hubert

Minnesota;

of

Massachusetts;

parts of

Sen.

were

Kennedy

Senator

theless,

there

To

Eisenhower

Mr.

been

criticism

jority Leader Lyndon B. John¬
Each of these

son.

men

ning,
although
officially announced.
Besides
John
and

J.

this

are

run¬

has

none

Senator

Sparkman of Alabama,

Senator

Estes

Kefauver

of

Tennessee, both of whom have
been

candidates

cratic

the

on

Demo¬

Presidential ticket of the

past, have been speaking hither
and yon. The same is true for
Senator
South

Strom.. Thurmond

Carolina,

who

of

rolled up

the electoral vote of four South¬
ern

states

the

late

Wright
paigned

in 1948

of
on

the

Neither

mond,

the

The

Fielding

States

Kefauver

in

vention

he and

Mississippi

ticket.

is

when

Governor

thick

Senators
or

of

L.

cam¬

in

Sparkman,

the

pre-con-

politics this time.

President's

Record

with

Congress

equally

philosophies.

political

the

extent

the

passed

at

session

included

legislation

recently-ended
Hawaii

state¬

hood, making the Pacific Islands
50th

State

the

of

Union;

labor reform to curb the racke¬
teers

and

gotten

gangsters

control

of

and

providing
curity funds.
Also,

that

have

unions;
mutual se¬

for

measures

providing funds for the World
Bank; raising taxes on life in¬
surance
companies; increasing
interest

rate

E

on

H

and

savings bonds; raising the debt

tax

and

The

sional

authoritative
Quarterly

says

Congres¬
the recent

session approved 40.4% of Pres¬




by

cent

one

extending

the

taxes

excise

four

to

corporate

another

year;

and

providing for another hous¬
ing bill after two earlier vetoes;

sponsors
feel
that
they will
have a much better change. The

abandon commuter train service

House

when

Remaining
to

the agenda for

on

increase

rate;

the

Federal

water

coal

bond

aid

pollution

viding

funds
such

to

education;

control;

for

pro¬

depressed

communities

as

in

President

Eisenhower

in

vetoed

$280,000,000

measure

mining

aid

the

in

bill

providing
$100,000,000
of
Federal
grants to encourage cities to
build sewage treatment plants.

Minimum

session

a

the

in

Senate

the

closing

1958

redeveloping
with

country

a

designed

parts of

chronic

for

railroads

to

Paul H. Douglas

ing

for

Efforts will
to

resumed

be

raise

a

bill

for

Secretary

the

Mitchell asked

Stalled

Rise

the

from $1 to $1.25

wage

Labor

of

hour.

an

James

P.

Congress not to

bill

a

that

reached

the

A water
was

,1949.

and

Senate
the

1960.

in

1956.

might give it
earlier

action

a

in

Scott,
1922,

promoted

was

the

but to extend

age.

The Senate Labor and Pub¬

named

year.

lic

Welfare

who

was

to

appoiptr,.

Assistant

1956.

President

signed

the

tending for four
Pollution

bill

Act

of

1955.

This law provides for $5,000,000
a

for

year

research

studies

by

the United States Public Health

Service

into

the

control of air

action

on

also

Committee

tion's

to

favorable

In

likely

to

be

Foreign

quested

Monetary Fund

that

The

fund

Interstate

Commerce
the

the

be

in¬

$700,000,000.
and

Committees

of

both

Senate and Hou>e approved
that

roads

would

to

authorize

increase

the

rail¬

charges

on

box

cars

rental

as

in¬

an

ther

freight,

more

action

was

1960. Neither did
action this year

cars.

Fur¬

off

until

put

Congress take

on

the commit¬

tee-approved

bills

houses

would

which

in

both

make

it

trust

was

,

Ap¬

Vice-Pjs&gi*

deoartmenith■
tT

$1.25.

to

(Special to The Financial Chronicle tifev

DENVER, Colo. —R.

B»t,

T.

Jr.

has been added to the staff <*>
Boettcher
and
C o m p a n
y^ f' !
Seventeenth
Street,

member^

New

York

Stock

ot

Exchange

authorized

Chace, Whiteside Add#

in¬

7

in

the

United

States

tion

Bank

and

and
for

the

Monetary
375,000,000. The World
received
$3,175,000,000.
gress
a

charged the two

public

Inter¬

Reconstruc¬

development.
Fund
received

debt

The
$1,Bank

BOSTON, Mass.—Myles Standish 3rd has been added to tse

stAf;
Winsl^Inc., 24 Federal Street,, member
of

Chace,

Whiteside

&

of the New York and Boston

Exchanges.

Stf|r
ij

"

,

Con¬

sums

as

With Beecroft, Cole

transaction.

(3pecial to The Financial Chronicle)

Congress
United
a

new

opment
is

also

States

approved

membership

Inter-American

Bank.

designed

to

This

in

Devel¬

institution

underwrite

ac¬

01

(Special to The Financial Chronicle I t>3

subscription to the International

ducement to get the railways to
build

the

Field

Congress

creases

national

Foreign

Adams

Assistant

an

in

-i

In the international monetary

field,

to

H.

i

econorr

Boettcher Adds

the

the

revolving business loan
$500,000,000 to $550,-.
000,000. The Agency
had re¬

fund from

$1.15

around

hour, rather than

:Tv
H

ex¬

next year. If and when Congress
votes to increase the minimum,
is

William

others

many

Mr.

petroleum

a

pointed

department

cover

1950.

that

will be

wage

store workers and

it

President, in

joined the bank in 1950.

dent

are

minimum

tended

the Small Business Administra¬

creased

never

Kennedy.

Chances
the

an

completed
increasing

measure

a

and

causes

pollution.

Congress

ator

ex¬

the Air

years

Control

this

cover¬

wage

and the

approve

the

got around to reporting out the
increase proposal by Sen¬

Rail Legislation Deferred

Congress did

minimum' wage

KANSAS

CITY,

mina L. Pace

Mo.

—

Q

Wilfcxf

has joined the sraiC

of

Beecroft, Cole & Co., Colurr 'a
Building. She was forme*tv
with Bonds, Inc.
J6

Bank

celerated economic development
in

Latin-American

countries.

Attention

Brokers

193

and

Dealeffii

TRADING MARKETS
Botany Industries
Indian

Head

Official

.1
>

Mills

Films

-.

c

iju

Southeastern Pub. Serw
■n
•i3

Carl Marks

House
have

FOREIGN

as

was

the

20

tel:

BROAD

&

Co Inc.

Our New

year,

the

Igj
*■

SECURITIES SPECIALISTS
STREET

HANOVER 2-0050

•

NEW YORE S, N. Y.

"

teletype NY

1-971

LERNER & GO.
Investment Securities

: I
-

-

10 Post Office Square, Boston 9, Mass.

Eisenhower

pocket veto. By

York telephone number

CAnal 6-3840

apprehensive

next

thefgjj:;■ •"

appointed;

Assistant Manager in 1940m. 3

year,

for

However, the bill

President

Mr.

bank

the
an

raise

effective

put aside until next year
that

joined

was

never

would

provisions

were

He

floor.

both the

that

■

Assistant Manager in 1952
vanced to Assistant Vice-Prestuwr

bodies were prepared for
compromise, they decided to
postpone final action until next

Subse¬

pollution control bill

passed by

made
in

House

department/ .and

Mrl. Patterson

a

un¬

provided

irijSr

Scott

Winger of the petrpleur..
*' *"v
.znt'a

two

Senator

$251,000,000, but the bill

David; A.

department. ,:

quently, the House Banking and
Currency Committee reported
out

j"

afcfV/

next

minimum

of Illinois call¬

$390,000,000.

i- 9fi)

Chase

States

in

Wage

employment. The Senate passed
this year a measure by

The

of

John G.

found to be unprofitable.

it to $80,000,000
funds. Although

trimming
matching

bills

interest

regions.

to

passed

difficult

more

for

bills

next year's session are the

>3

»i3.

United

some

providing
Federal funds for airport con¬
struction; extending the draft of
young
men
into the services;

the

partment,

days of the session passed

Pending

)i

Vice-Presidents,
G^org1#
Champion,
President,
has
nounced.
They are Herberfcsqp,
Patterson in the internationaUde

part-time worker is that she only
part of her part-time!"

Then

same

the Repub¬

Some of the major

the

that

works

his

in

Major Laws Enacted

sponsors
^

with

pointing out that
two types of Demo¬

limited

a

And

Rights
Thur¬

.d

new

"Trouble

a

by

are

areas,

quartet

views.],.$:*

own

hattan Bank have appointed tht'e

I»9*

.

could

specific

more

could be applied to

of

Stuart

Symington of Missouri, and Ma¬

coincide ivitk

not

may

Directors

$C33»* *U(N. J*

Democracy for criticism. Never¬
have

cents;

Speaking in various
the

Senator

things

or

Appoints V.

right

good thing in

a

line

alone

occasion.

may

"Chronicle's"

.11 1

%

the credit for

This

on

re¬

Chase Manhattan

assertion

the

for the Presidential nomination.
fact

to

Cq^Un,

and

the

warm

a

with

back

gave

limit of the Government; per¬
mitting the Tennessee Valley
Authority
(TVA)
to
issue
bonds; raising the Federal gaso¬

down

intended

is

>

that they deserve

Some

Balance

on

column

JM

Eisenhower

Mr.

lican membership.

session.

bad

a

Good

session

196}

bonds.

ernment

different

between

the

the

crats

somewhere

lies

TThis

so

of

session

at

issues, such as raising the
41/4% ceiling on long-term Gov¬
or

sharply criticized for its "many
failures"? The correct appraisal
the

resolved

flect the "behind the scene"; inter¬
pretation from the notion's

on

time

this conflict!

Perhaps

Congress
for
increasing Federal spending and
failing to act on a half-dozen

tion-controlled

American

first

Afrir*

Latin-America,

be

de¬

cow?r

days

the

a

Depart¬
such

undeveloped

Asia.

will

limit

session.

A

freefirst of
conventions
in Los An¬
geles July 11, with the Demo¬
crats
holding
their
first
big
pow-wow in the Far West for
year,
which could be
for-all affair, and the

the two big political
will get underway

to

of

Unite-*

the

Treasury
to

a mi-

businH*

doing

outside

wants

ferrals

advan¬

individuals

firms

The

would

deferral

both

a

Congressional Quarterly tabula¬

year

to

States.

gave

October 20. But next year should

Next

measure

tax

American

batting average of 72.7%
1953 and 64.7% in 1954, the

in

The

anywhere

1954, the first two years of his
administration.
The
Republi¬
can-controlled

,w,ha

inv&Kr

foreign

the

tages

and

1953

outiY^jhe

those

to

make

make

greatest

in

years

never

reporting

incentives

ments.

Mr.

course

to

would

Con¬

85th

the

Of

1957.

convening

tax

the

in

approval

getting

and

Ways

Boggs bill which would provitf?

requests, as compared
37%
of his specific re¬

with

nut

a£fc€r long pri

consideration,

around

specific leg¬

islative

quests

with

America.

nation's capital

con

C

D.

th.

neighbors in Central and SorY

Committee,

WASHINGTON,

said

truly a signli;
the history of ou;

was

economic

behind-the-scenes interpretations
from the

Thursday, September 24, 'lKj*

...

I

Telephone
HUbbard

2-1990

Teletype
BS 69

g

1