Full text of Commercial and Financial Chronicle : September 27, 1962, Vol. 196, No. 6198

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The COMMERCIAL and FINANCIAL

Reg. U. S. Pat. Off.

Volume

EDITORIAL

A dozen

span

years

PUBLICATION

gathering such as that which regularly
meetings of the International Mone¬

of what is said at these

the

ears

ing

the

mess.?

Section 1

of these

obligations

The

most

secure

have

unlimited taxing power for re¬

payment by the issuer.

municipals is especially tailored for country banks.

anticipation

tax

budget notes, warrants

bonds, limited tax bonds,
and

bonds.

revenue

Municipal issues mature

number of years,

over a

unlike corporate debt

maturity. This gives the purchaser who

feature

and not to

liquidity

ahead of tax free

comes

primary reserves to
offset deposit fluctuations} and describes what enters7into a

sire

rating

large

municipals

use

tax-exempt and how to select non-rated municipals.

course—

his desired

and

gatherings is permitted to reach

The recent

(1/1/62) change in Regulation "Q" has

brought about
has

anything that was said or suggested

time
of

Even if sound ideas had evolved, - it is :
they would not be accepted

renaissance in municipals.

This

particularly been true in those instances where
deposits have

the

Many

been

total

bank's

country

significant percentage

50%

general

obtain

way

obligations

outstanding
each day.

type. These

well suited

are

county banks as these obligations require less

scrutiny

since

General

today

de¬

may

of the municipal securities held by

of the latter

are

throughout the country

they

market

and information is

rated

' ^ r

municipals

name

are

those

large

little less than certain that

hold from 30% to 85% of their

which

total deposits in the time clas¬

amounts, and traded' almost every day and gener¬

sification.

ally listed in the daily Blue List.

Washington.

*••

•

Yet in broad outline the basic nature of
ficulties

clear

present dif¬

enough. In the first place, let it be

where

change

ternative

this

thinking

there

clearly recalled that the situation as it existed a quarter
1

current

seems

area

century ago

abnormal
war

and also

was

of the effects of a devastating world

reason

itself definitely abnormal. It was

reason

of the dabbling of governments

which neither understood such affairs
where

already in

war

later left its impress upon affairs

and the tinkerers who sought to right

a mess,

the situation made matters
current

they, too,

owe

not better. The nature

worse

difficulties has

changed drastically but,

existence to poorly

52%

the

debt

bracket)

benefits

described
issued

rated, but
this

deposit

Damerjian

before

(1)

State, Municipality, Authority or other
can

be from well

highly rated issues to small unrated issues,
many

well under

cases

million

one

any

Municipal

Distributors

The

short

many

term

cases

NewYork

•

Dealers

what

securities

The

taxable

tax free,

taxed

long
in

equivalent

(Continued

page

24)

State,
Muni

Members New York Stock Exchange
Associate Member American Stock Exchange
Members Pacific Coast

■iW-

Offices

Securities

BOND DEPARTMENT

MEMBERS

York 8, N. Y.

FIRST NATIONAL CITY BANK

MIDWEST STOCK EXCHANGE

Claremont, Corona

del Mar,

Bond

Dept. Teletype: 571-0830

Inquiries Invited

Notes
Municipal Bond Division

New

1-457

York Correspondent

THE

fcS

Southern

MANHATTAN

California Securities

135 So. LaSalle Street

Bonds and

Exchange

Oceanside, Pasadena, Pomona, Redlands,
Riverside, San Diego, Santa Ana,
Santa Monica, Whittier
•/.

770-2661

Agency

Encino, Glendale, Hollywood, Long Beach,

CHEMICAL BANK NEW YORK TRUST COMPANY

NY 1-1246, NY

gains.

for banks in

So. Hope Street, Los Angeles 17,
California Vv/v"jh-i:'v

623
'

Corporate & Municipal

TELETYPE:

money,

examine, weigh and study

of such

return

Lester, Ryons & Co.

Chemical

•

time

Housing

MULLANEY, WELLS & COMPANY
Underwriters

770-2741

except for capital gains which are

Housing,

P. O. Box 710, New

fact

and Public

Securities

PHONES;

bond.

the

significant percentage

structure

name

and

aggressive purchasing be consumated.

U. S. Government,
Public

background,

have

tions should the banker

Robert

MUNICIPAL CONFERENCE SUPPLEMENT: Section 2

State and

general

county banks

their

of high quality, in some in¬

are

rities possess and what ratios and other considera¬
can

political'subdivision. The range
outstanding in

Most of these

advantages and disadvantages do municipal secu¬

these

debenture bond

outstanding

superior to the general market

Against

that

instruments.

Basically, municipals

known

(Continued on page 29)

stances

the

reap

from

not

are

compensate

larger interest item, ex¬
cept municipal bbnds. No doubt,
the larger country banks
(in
greatest

angels feared to tread. Another even more

devastating world

of the

feared to step

nor

help

known,

small local issues which only because of their size

al¬

for the

are

general obligations. There are however, many

are

must

well

are

readily available.

deposits.

banks

banks
for

have

traded

over

name

specific

maturity, if available. Most states and

cities

are

Well

which usually has

specific municipal

are

Other types of obligations
notes, special assessment

bank's portfolio} cautions

gathering will result in any real progress in clear¬

at this

—

Country Bank

appeal not necessarily confined to smaller banks. Mr. Darner'

public, but there is all too much reason

of the

doubt whether

In 2 v Sections

Copy

jian's analysis includes how to best fit tax-exempts into a

Of course, hardly

tithe—aside from the formal discussions,

Cents

dollars.

Nevertheless, the ABC knowledge arrayed should have an

position and how that situation can best be
remedied. Yet that subject dominated the discussions of
these authorities and near-authorities in Washington the
a year ago.

1839

ESTABLISHED

those which

Study

indeed it did

include

the dollar down within reach of the ordinary
country of the world but why the dollar has reached so

Banking Officer

how get

day

Price

University, Philadelphia, Pa., and Former Correspondent

tary Fund and World Bank would concern itself chiefly,
not with how to redistribute the world's gold or some¬

other

FIELD

By Robert S. Damerjian, Lecturer in Finance, Temple

attends the annual

precarious

FINANCIAL

The Portfolio of

suggested that within a relatively short

years a

THE

The Hole of Municipal Bonds in

he would have been laughed

ago

7, N. Y., Thursday, September 27, 1962

As Wc See It

who

scorn

New York

6198

Number

196

INFORMATIVE

MOST

AND

LEADING

THE

—

Pershing & Co.

BANK.

Chicago 3, III. FRaoklin 2-1166

Net Active Markets Maintained

Dealers, Banks and Brokers

UNDERWRITER

DISTRIBUTOR
DEjAXJEK/

T. L.Watson & Co.
ESTABLISHED

1832

Members

;

New York Stock Exchange

FIRST

gmthwedt

American

Stock Exchange

25 BROAD

STREET

COMPANY

NEW YORK 4, N. Y.

Canadian Securities
Block

•

PERTH AMBOY

DIVERSIFIED

On All

CALIFORNIA

CANADIAN DEPARTMENT

Teletype

MKCT VIRES TO

212-571-1213
MONTREAL AND TORONTO

NEW

2 BROADWAY
NEW YORK

YORK

STOCK

EXCHANGE

1 NORTH LA SALLE ST.

.CHICAGO

Food

Dominion Securities

Processing

<ORPORATI07*

Goodbody 8t Co.
MEMBERS

BRIDGEPORT

BONDS & STOCKS

Inquiries Invited

Orders Executed
Canadian Exchanges

Commission

CANADIAN

MUNICIPAL BOND DEPARTMENT

BANK OF AMERICA

Exchange Place, New York 5, N. Y.

Teletype 571-0880
Area Code 212

WHitehall 4-8161

;

N.T.&S.A.

SAN

FRANCISCO

•

LOS ANGELES

The Commercial and Financial Chronicle

(1294)

The Security I Like Best...

Brokers, Dealers only

For Banks,

A continuous forum in

"41 Bid"
offer

than

of experience

years

in the investment and

broad markets
of

The Times-Mirror

Over-

the-Counter structure.

market

well

too

....

known to

mill;

paper

growth from a distant outpost to
the nation s second largest trading

s-Hs.a-s

link between the

0Put

NEW YORK

suited largely-from an indomitable
spirit. Instrumental in instilling

CORPORATION

■

•

Los

the

York 4

the

been

1 vines-iiewsuauer mm
Angeles Times newspaper and

^tiiT

fat^Ues

Chandler

and

Company
pany's

Chie&go *
Lds Angeles
Philadelphia
•
San Francisco
•

Nationwide Private

have

wave

which have led the Times-Mirror

Telephone: 303-2000
Teletype: 312-571 — 1231,32,33,34
Boston

since

1886.

earliest

The

the

Mirror printing house;

hence the

coroorato name
corporate name.

Wife System

...

public - spirited Chandlers
spearheaded the fight for
adequate water, harbor facilities,
lndustrial

Continuous Markets

day

American Furniture
Industries

Craddock-Terry Shoe
P.

R. F. &

All Issues

national

LYNCHBURG, VIRGINIA
LD39

.vrTWX

Victor 6-1333

703

stock

Meanwhile,

-J-jSiJf?

and Press

Neu) York City

$98 million.

was

In addition

newspaper, a Los Angeles ittdependent television station, a twothirds interest in an Oregon news-

MUNICIPAL BONDS
'V '

WEST VIRGINIA

VIRGINIA

securities

aft

fadlitfes

continual

SCO

these

investments

understated

they

historical cost and

hot reflect what

Southern

three

has takeft

California

stock market

noon

& Company, New York City

over

WASHINGTON; D. C.

This

achieved

field

the

years,

American firm

of its kind.

London

and

Sub-

subsidi-

Toronto

cents

share.

I estimate 1962

1961.

$1.50 or 15% better than
While this places the price-

remembered

that

the

current

most

the

aeronautical

The company is traded
OVer-the-Counter Market,

'•

40
V:

A'—-4r—

Exchange Place, New York 5
Phone:

With

in the

fufnishtae

well

over

,jeveiop, on

basis,

nrn(4,)(,| rrn«

Jt&^d&rd P-roauct lfne of electronic

now

figures

Chairman
Bank;

Don

of
G.

Mitchell, Chairman of the Exec—*

—

—-

•

loSLnde^ wfsf o?ISth°I 1235*
DOOKDinaery west of the Missis-

LOUISVILLE, KENTUCKY

Northern Ohio

MURCH & CO., INC.
Member New

™
One©, with regard to their actual
functioning patterns and

York Stock

Hanna

Private

Co., N.Y.C.

Underwriters-Dealers
Distributors

Corporate and Municipal
Securities

as a

McKelvy & Company
New

Ydrk stock

offer

Exchange

Pittsburgh Stock Exchange
American

stock

Exchange

(Associate)

Union Trust Bldg., Pittsburgh 19, Pa.
GRant

1-8700

Private

Wire

Teletype 412 642-3080
to

York

New

City

and airport surveillance radar.

Reflecting the dynamic nature
nroMnfi,r

bf these markets as they presently

exist, corporate sales and earnings
have shown a remarkable pattern
A1-

-i—

the company be-

OpOrations pub-

<m9 nnn

^ 1

Nn Qa

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
23-Year Performance of
35 Industrial Stocks

drctiinstances

solicitation of

craft communications, weather

(This is under

Ohio

15,

Tele. 216-574-9180-81

Wire to L. F. Rothschild

other

in. text- whelming Impression- that they F
^
fu -5? ,'
']
books; Orange Coast Publishing a^e just beginning on their vigor- r1
I1
?.«
?ear ^
Company, publishers of the ohs expansion era. Similar to an June 30, 1962 while net profit has
Orange Coast Pilot hewspaper in investment company, the purchase increased from $2,000 ifl 1955 to
;
•
»"*
v
^
;
$181,000 in 1962. Both sales and

502 589-1123

Exchange

Building

Cleveland
CH 1-5671

Pxist-

Angeles' Union Bank. R^ly in 1955» Over a seven-year
the period sales have Increased from
management gives fn© thO over-

{WPi which specializes,
4

"J™"

9
ftanxr

ability to

profitable

seem good presently to be found in connec-

such nationally-known

the

Philadelphia's Triangle Pub-

Effective Distribution

three-

Quarters of the instruments used
in this,field; ^
;
r .
.

related aspects of equipment de¬
sigh. Rapidly, growing" markets
qufrements of the iSTew York Stock for this type of jequipment are

Incorporated

WHitehall 3-7830

Teletype No.'212 571-0219

but is
understood to meet the listing re-

Times-Mirror- Fjfank
L.
King,
Triangle Company, a joint venture Uhited "California
are

Odd Lots

(To Brokers and Dealers)

Others

'1:. ii

BONDS

a ing 6[ the liiafly various types of

aJ^d^fJjghiT^^ information Charles B. Thornton, Chairman of
military Litton President ofThomas V.
Industries;
Jones,
Northrop*

bankers bond

Security healers Ass'n

Bids

specialist in ahtenna instrumenta-

tt"

comZll nill

' The essential ingredient in mana agement'S success up to the cur-

in?S?e Change. The odds

Md commercial
ana
pilots.

-I!.:-1; -/

Jose and Chicago, pnPP MythA na- the not-toO-distant future. - H
m™0"J differtion With the hundreds of
Jose
one of the
••
.nf
of
antpnnac
u«?ed
in
tion's two largest road map pub^Considerable
strength in the r,
°V
f*
ushers and Jeppesen 3c Co. of
policy-making and planning func- Suc" areas as
tracking,
Denver and Frankfurt,
Germany, tiOn is provided by an Impressive satellite communications, radio
a one-of-its-kind firm which
pub- board of directors which includes astronomy, microwave relay, airlishes

;

& CO. inc.
.Members

has

Serve the international markets,

BETHESftA, MD.

GROSSMAN

reporting period to equal

annual earnings rate is estimated
tempo of at about $2 a Share, thereby re-

963-0464

4925 Fairmont Ave.

684-0226

S.WEINBERG,

sat-'
an

'•?.

;

expanding

the antennas in all missiles,

;;

6,N. Y.

Telephone: BEekinan 3-3622-3 *'

profitable

Library of World Literature, Inc;, share annually and has paid 2 to
publisher of Signet and Mentor 4% in stock for the past three
softcover books and second largest
years.

aries in

"420 W. Jefferson St.

NEW YORK OFFICE:
149 Broadway, New York

the importance of an¬

earnings ratio at about 20 On
the current price of around 30, it must rent time has been

and

a^v CWc?ep

jul

Securities Co.9 Ltd.

politan daily started in the nation tennas USOd in tracking these have
after World War If had
never heen and are being designed and

place

the past gener-

JSequently, it has set

WOODWAftb BLDG.

; Arlington, VA.

The Only metro-

tfh^arlfiU^eTI^Sw.^erlcan ™6dest dividend of 50 cents

Stock Exchange

304 Arlington Trait Bldg.

DAI WA

quickened, ducing the P/E to 15. On a cash test .instrumentation which had
£ight new fields of interest have flow basis, the stock is even more previously been assembled by
been entered, and operations have attractive.
;. r
- >
'•••V
users on a V'hit or- miss" basis.
Spread to ten additional cities.
While the company is primarily The major portion of this instruFirst and still largest of the hew
expansion-minded, it does pay a mentation is concerned with test-

Com

TWX: 202

•-

««ania, inc.

rapidly

with The Times.

net

diversification

Sterling 3-1677

gcientific-Atl3lita. Inc.

•*

are

ailTon*

Tel.

Early in January, 1962, after a and civilian communications be
14 year trial, the company* diseon- came evident.
The majority of

RICHMOND, VIRGINIA

„

share in 1960 to * just in
tennas in the areas of space ex¬
excess of $10 million^-dr $2.22 a
share in 1961.
ploration,
surveillance, military

are

vastly

plus depre- Atlanta has grown* into the leader

second

C&rried

Direct wire to Ira Haupt

;

1959 to

cashflow (earnings

Some

•

;

Members New York Slock Exchange '

Volume has moved up from

Kj°n Ranch Co., a 280,000 acre
oil, cattle and farming , empire,

SOUTH CAROLIN

' !*,

SECURITIES

...

programming

15^ stocL=n'^e3t ln first quarter on with a rush in the
earning. However,
profits Came

NORTH CAROU

'A,

JAPANESE

operations, tested r withv Scientific-Atlanta's,
a sizable portfolio Costs associated'with the cottSOliequipment.
Today Scientific-Atmetropolitan real, dation nearly wiped Out 1962's lanta claims to be the leading

print mill, plus

Member National

quality

institutions.

fa
in the field of antenna instl
instrumen¬

printing division^ the firm owned
the Los Angeles Evening Mirror

Fakgh £

AtoCk.appears

Ten years ago sik members of the
and op- Georgia Institute of Technology
erating efficiencies for the tele- Experiment Station started Scienvision station.
tific-Atlanta with capital of $600.

$1.89.

■

JUSTUS C. MARTIN, JR.
•
i?nJl*rhi?r* Partner, Robinson, Humphrey & Co.,

th?«!EaJE5S tlnuehMirror by consolidating it
publication of the'after-

•of

270,000 sq. ft. plant for the
commercial printing division, arid

branch offices" "

to our

•

viduals and

new

million in

212 571-1425

•

La.-Birmingham, Ala.
Mobile,Ala.

Jong-term holding for both indi--

authorized and

already extensive at the time of

year

Direct wires

Additional .4ibn) is-heavy and has been trendtation.
a divering upward frbM5»$8k5 million or

proportions.

was

the decision in 1959. Volume that

for the

the advantages of industrial and
geographical diversification. Unhke an investment company, these

busin"t
The

modernization of the paper mill,
imaginative

Co!

Exchange
Exchange

New Orleans^

Atlanta, Qa.

Stock
Stock■

St., New York 6, N. Y.

Times-Mirror shares provides

Times-Mirror's

Sirh

York

HAnover 2-0700

management.

^„r

„

management has been taking ac-

broad-based

sification team swungjixto action.
The company's holdings were

846-0920

Private wire to Shields <ft Co.,'
t

Ttmes-Mirror into

STRADER and COMPANY, inc.
■

...

American

$98 Their irtiti&1 effort Was toward the
$112 million in
1960, $128 million in 1861 and Un
yertismg Image and news and estimated $140 million in 1962. special microwave antennas. The
mature content and fourth in the
Earnings in 1961 were $5.5 mil- first major contract was for a
Ilation in circulation.
ii0n, or $1.30 a share. This was a rapid scanning radar antenna for
In late 1959, the Chandlers de- per share increase Of about 18% the U. S. Navy under a subconcided to turn their considerable* over i960 net of $4.6 million, equal tract from Yale University. From
energies and acumen to building to $1.10 a share.
"
this humble beginning Scientifithas Prospered and tothe world's leader m ad-

newspaper

Hirst

Furniture

development, and culConcurrently, the

teal activities.

Virginia Securities

Bassett

nations

uubligfter

J^Jfmcations giant is -beginning to
take lorm.
•

hav©

New York

the

book

New

Members

19 Rector
;

...

com-

venture Was

The

Chll

MaHhlsJof

Francisco

Members

•

largest law

So the outlme ot a n^ corn^ a^ractively priced for

^ 2.Mge.es

Exchange

60 Broad St., New

succeeding

each,
-

population

Member

Stock

into

•

Established 1020
Associate

snirit

this

o.Pn

atsa

third

American

£outh.

& pomDanv 0f Albany

arid semi--

Steiner, Rouse &
*

(Page 2)

re-.

Hanseatic
.

Martin, Jr., Partner, Robinson,
Humphrey & Co., Atlanta, Ga.

owns

dfcsert region into a metropolitan
area Of seven
million, people

Bought—Sold—Quoted
DnKinr.r.n

Dn.tnn.

foUr shopping cen-

in the East and

re-

Suffice it to say that the modern

Real

CorJ,otati0n which

and ,

Co.,

(Page 2)

Scientific-Atlanta, Inc.—Justus C.

news-

Atherton

and

quire elaboration.
miracle that turned

Daniel
Beverly Hills,

Partner,

Reeves

sister

booming

pUnt subsidiary's timberlands and

Company

The story of Southern California's

•

"HANSEATIC."

vidirtg
®

Call

;r7.. c™,„,

Beverly Hills, California

Louisiana Securities

The Times-Mirror Co.—Edward J.

Calif.

in any seg¬
vast

the

Angeles'

Los

EDWARD J. BOURBEAU

>».:

Alabama &

advisory field from all sections of the country
Bourbeau,

...

Thursday, September 27, 1962

Participants and

Their Selections

participate and give their reasons for favoring a particular security.

yourself to reach

ment

different group of experts

This Week's

Forum

helpihg buyers and sellers
like

which, each week,

to be construed

buy,

any

as an

offer

sett,

security referred to herein.)

earnings Showed

an increase of
Continued on page 23

FOLDER

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N. Y.

Volume

196

6198

Number

The Commercial and Financial Chronicle

■Investors Should Not Be

(1295)

CONTENTS

Thursday, September 27, 1962

Misled by

Today's Gloom

UCHTtnSTEin

B.S.

AND

">'■

4!Y^Y\-V

vv':v'yv;Y.i-

Forecast of

economic

run.

and

for investment for both

areas

is fortifiact with

market trends

stock

r>:

The Role

longer-

DJIA lows

new

sugg^sfad^-

periods The Texas analyst anticipates?

and

■

t*,

V# ♦ '•

A Guide to Bond
n

ihe

(2) to put the balance in those groups

portfolio buying reserve!
that

most

are

(3)

Ira V.

Issues

Ernest

—

'•

Economy during the last 30

cyclical

„•

and

heavy

(the

indus¬
issues.

trial

Barring
major and
foreseen

"automatic

defense

large

likely

changes

that

have

this

Instead, however,

American

off

only

with

after

two

abortive

material

and

1961-62).

years

old

Leonard Coe Scruggs

boom.

1956,Ithe

Since
a

nation/

Front' 1946

ured in constant
a

of .4%

rate

And

recession

end

•.

By 1965, perhaps

through 1956,

dollars)

outlined

(meas-- cured.

grew

tion

After

per:annum.

above

•

will

to the attrition of

have

plant,

the,: disappearance
of
in the durable goods

buoyancy
sector

the

private

precipitated
tal'

.) »

•

(from 1946 through 1956y private

been

86%,

for

Creased at

goods

in*

of 5%

average rate

annum;

capi¬

since 1956)/ Irr recent

years

years,, the

little

has tended to

have had has been; almost entirely

restored

due

setting the stage for

consumer

faster

grow

of the

the

continuing expansion

consumer

non-durables and

services, and to the
steady

increase

spending.

surge in consumer durables.

less

government

•

1965,

family
to

response

the

years

Basis of Sluggishness

strong

the

War

early

sluggishness

and consumer durable goods
1956

can

into the

mid-1950's

(1) the capital goods

boom

the

and

9
fHV

•

Electronic Capital
1

———-(Editorial)
Stocks_i_—-

j__

Atlas Credit, A and B-

22
46

Investment Recommendations-----.

Electronic Int'l Cap. Ltd.

and You

(The)-__—w_—-

31
18

——

Observations

MACKIE,

HA 2-9000

Our Reporter on Governments

Securities

rates

Securities

Utility

Now

Registration—.

Security

Salesman's

Chicago

Cleveland

Philadelphia

St. Louis

—

Corner—-——

State o# Trade and Industry

Direct Wires to

Offerings—

Security I Like Best (The)

incl

40 Exchange Place, N. Y.

Teletype 212-571-0610

Prospective

(The)

!—

Tax-Exempt Bond Market
Washington and You___L-_

early 1970's (family for¬

Public

postwar

Singer, Bean

Los Angelas

San Francisco
Washington

9
6

_j;

consequence,

growth

rate-

Thd COMMERCIAL and FINANCIAL CHRONICLE

4-5% per annum in the GNP

can

the

Published

Twice

the

Weekly

Reg.

S. Patent Ol'fice

tremendousburden

capacity

created; '(2)

surplus
the

haustion in the mid-1950's

backlog of
consumer

ing the

effective

durables

War,

built

and

(3)

decline in the rate of
mation

birth

of the

the

WILLIAM

CLAUDE

;;

now

fundamentals

are

other

factors,

some

low

longstanding

number

fairly

some

and

specialized in

WILLIAM

page

;

135 South La Salle

■

PREFERRED STOCKS

Second
••

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TELEPHONE HAnover 2-4300

•

1868

.Members New York Stock Exchange-

E. F. MacDonald

MORRISSEY, Editor

All. rights-reserved/ Reproduction in whole or in part
without written permission is strictly prohibited.

.ether countries $72.00

BROAD

Thursday, September 27, 1962

Founded

SEIBERT, Treasurer

Every Thursday (general news and advertising issue) and every
Monday
(complete
statistical- issue — market
quotation
records,
corporation news, bank clearings, state and city news, etc.). Other
Office:

Continued

to 9576

Union

DANA

'-yj-

•

REctor 2-9570

GEORGE

new,

most

President

SEI.BERT,

under way in business

;

have

Reinforcing the basic improve¬
ments

(family

For many years we

DANA COMPANY, PUBLISHER

sharp

formations have declined from

^5 Park Place, New York 7, N. Y.

Favorable Factors

dur¬

the

1930's

expected

for

family for¬

consequent

rates "of the

reasonably

second half of this decade.

ex-'

demand

Savin Bus. Machine !

-u--

Control Data

..:•

mations should rise to 0.9 mil. by
1965 and' to 1.25 mil. by 1970). 'As

since

primarily attributed to

three factors:

;;A!

It-_—

up¬

movement that promises to extend

producer

News About Banks and Bankers

The

Mutual Funds

•

strong upward

'♦ '

Sans Devaluation" -J

"Market

formations,'"in

and

win' be in

Dlgby 4-4970

V
Johnson

From Washington Ahead of the Newsi-Lii.
Indications of Current Business Activity--—-

Third,

high'birth

We. See

Dealer-Broker

liquidity,.. thus
a

Broadway, New York 5

Einzig: "Maudling Plan Seeks More Liquidity

39
7

Current News in the Field___—

than disposable income, will have*

J.F.ReilIy&Co.,Inc.

-Fred D. Stone, Jr.
J .*f

Commentary

recent

per annum

growth that

Coming Events in the Investment Field--—--.

•

Mitchell

-Russell

—liril

••■:.

Curtis V. ter Kuile

Bank and Insurance

1961-83%,: 1962which

Second, by 1965,

saving,

G. Thomas Yeager III

-Regular Features

1960-77%,

private

Bingham

J. O'Leary

James

Municipals
-

currently).

85%

■

SANDERS

Public Education and Sales Promotion of

1955-92%, 19561958-74%, 1959-

1957-78%,

—John

Instrument

always

a new round of

follows:

79%,

in contrast, the

rate
increase has been less than 1%

per
of

durable

has

'v.',.'/.

Coupon Bond; An Outmoded and Expensive

goods expansion (capacity util¬

spending

Outlook.J-

Rate

Municipals^-

ization rates in recent years have

economy

.Curtis

Investor.-

due

past

TWO

Why Every Investor Should Consider

approaching the 90%. level

cline

MARADEL

the pages indicated.

Finance-^.

consumption,

SECTION

IIow to Sell Municipals to the Individual

surplus capacity

the

COMPANY

Federal Legislation in the Field of Municipal'

been

which

increments

ARTICLES IN

of today's "Chronicle"

Interest

1964, and

will be

of 2%.- The

for this 50% de¬

MOSLER SAFE

.....

only slightly in

excess

Kirtley 16

-..

».

•

reason

v '

ASSOCIATES

not

1956, the rate of growth has been
immediate

Arthur .E.

in .the

even

industrial

our

rr '

One Can Afford to Ignore
Roger Babson 46

Economy

First, by 1965 the utiliza¬

BUCKINGHAM CORP.

Charles R. Ince 15

convales¬

•

4-6551

Investment Banking: A Vital Force in- American

the

of this

:.i

•

short

(1958-60

WHitelrall

E. F. MacDONALD

The following articles appear in Section Two

Ecoriomy

> the Gross National Product

Duben

day's1 issue includes 4 pages of pictures taken at Anpual Outing of the; Municipal" Bond Club of Chicago.

have gotten

two

STREET, NEW YORK

Telephone:

PRODUCTS

has; certainly no later than 1966, the
fundamental * depressants
statq of high level stag¬ three

been in

•:>

would

recoveries

is in sight.
*

cence

great

the

works,

the

(1957-8 and 1960-1) and

another

yet

today

the thresh¬

WALL

PICTURES IN FIRST SECTION: Section One of to-.

it: is:'

point, regardless of whether

forward prog¬
ress,

years

major slump.

adventure, the

recessions

—J

Ail Investment

the

etc.)

depressants

Economy,

constellation: of

precipitated

lightly

stabilizers",

budget,

fundamental

un¬

mis¬

made

Municipals-^

Had it not been for the profound"
structural

€.

Problems and Procedures in Marketing

long term point of viewK annual high of over 1.5 mil., in
difficult to* be other than 1949 to under, 0.7„mil; last yeair)Y

stock market

Cobleigh

The Expected Demand for Nonferrow» Metals

bullish for the
and particularly for

OBSOLETES

enthusiastically

•*' *

__—4.—r———Ala<n N. Weecfen l'O

From

THAT TOOK

Today's

Investment Qualities of Puerto Kican Bond

and

promising, too close," and not to sell America short..—

—————Eugene S. Merrill

Dow Chemical Co.-

Solution.

(4) to-not become tod disgruntled since the "Icng-tjrm future is
too

THE PIGEON

.Municipal. Syndication From a Manager'sViewpoint
.'.-Delmemt K. Pfeffer 10

depressed and offar the greatast boom potantialiths;■'

utilise rallies to dispose of overvalued growth stocks;

PAGE3

Municipal Bond Industry Problems Needing

25-35%

'•

•

Refunding by the Utility

Industry

(f) to keep

is advised:

V ''

Robert S. Damerjian

selectivity and an overall 495-700 DJI A trading range masking &oim
dramatic changes. The investor

*"•

••

—Leonard Coe Scruggs

by a small margin later this year or early next year *

waning of the bear market wlrere everything goes down to-•>

Investors Should Not Be Misled by

gether. The intermediate term is expects* to be affected1 by vicious

"k.'.

Municipal Bonds in the Portfolio*.

f l of a Country. Bank-

-A

•n

■

•

YY;*YA Y;X

;.v

troublesome present and an unusualfy bullish

"'i'.'Y.

Puncoast, San Antonio, Texas, Members New York Stock Exchange

COMPANY

Articles and News

By Leonard Coe Scruggs,. Senior Analyst, Dewar, Robertson &

the

rate

advertisements

exchange,
must

Teletype 212-571-0500

•

212-571-0501

The Commercial and Financial Chronicle

Thursday, September 27, 1962

(1296)

$10 million issue would be $511,-

Refunding

A Guide to Bond

old

the

bond

51/&%

nuaL savings

By the Utility Industry
By Eugene S. Merrill, Financial Vice-President, Stone & Webster
Service Corp., Management Consulting Subsidiary of Stone &
Webster, Inc., New York City

bond

into account. Such considerations

costs

the

issues

many

sold

what

bond

the

maturity

that

cipal amount plus the cost of call
is

1959

fect

I960

and

issue at prin¬

outstanding

determined,

This yield in ef¬

the

measures

interest

that

return

to the effect of

Actually, the cost

deductible

savings

times
g

referred

dur-

1962

tax each year.

stant tax

Hence, with

interest

the

other

break-even

yield

o n

To
that

re¬

onfronted

c o

a
a

utility

some

there

may

purposes

eliminating
features

charges.

Million

' $10,500,000

105%:—

lessening sinking fund

the

primary

Redemption

pur¬

always:

At what

Amount

$10,546,000

Cost of Call

rate will the interest savings

be sufficient to

investment

justify the dollar

required

call

the

issue

of,

will require

$10,546,000,

pressed

investment

105.46

Reference

amount.

The classic approach

show

ing to

answer

this

question

table

will

for

25-year,

sold

in attempt¬
has

bond

105.46

were

ex¬

percent of principal

yield
The Classic Approach

546,000

outstanding

Redemption of the

yield

old issue?

;

balance

the annual, interest

that

5%%

is 5.11%.

sold

bond

the

5.11%

has

been

never

satisfactory approach to the prob¬

which

This

call

bond

only

refunding

interest
bond

break-even

charges

they
yield

even

savings

yield

"fl©f

;

: A

UNDERWRITERS

"4"

re¬

the

break¬

the

BROKERS • DEALERS
& DISTRIBUTORS

the

expansion

aid

that

being vigorously endorsed in

now

reversal

previous attitudes

(1) the World Bank's officialdom,
and

(2) Great Britain, in contrast

to the confinement of past

pleas

"dunning"

to refund but

always

siderably lower.

yield

con¬

It is always

Furthermore, in
the

—

bonds.

rec¬

refunding

any

period
the

In this

accumulate,

Striking

indeed

side

the

angels)

been

the
the

Eugene

Black, the out-going President of
the World Bank and its

affiliates,

time

required

sale

the

new

period, while costs

there
So

"break

under

the

always

the

point

classic

question remains
lower

with

even

even"

ration

and

determined

open

the

approach,

cost

additional

the

to how

the

savings

compensate for the
Cost of Call Is

new

and

time

calling

maturity entails

bond

before

outlay of ad¬

capital,

generosity posture Was

new

displayed at last year's Bank-

Fund meeting in
tember

Vienna in Sep¬
Mr.

1961,

surprising

paying

without

maturity

(outside

Black's

homage

interest

any

nominal

service

charge*).

Black
for

year's

again made

IDA,

meeting
a

warning

quacy

specific plea

having

that

capital

and

the Agency will go out of

ance,

business

the

absence

re¬

plenishing funds by next March.
As will be remembered, through¬
out

the

required

which

the

for

maturity.

refunding

Mr. Black

proud to have won

was

universal acclaim for his

before

sound

investment

and

riod

the

been

has

necessary

ar¬

stock

common

change

the Institution's charter.

"Strategic" Family Addition
A

cooperative

and

new,

unique addition to the U. N.'s im¬
mediate

give-away family

so-called
in

Special

May, 1959,

from the

Fund.

strategic

as a

its

Formed
escape

profligate SUNFED

pro¬

there
to

was

★

hard-banking line

ter

economic

social

and

low-income

territories

have

Eighty-six

Governments

been

with the

contrib¬

recipient countries foot¬

ing the bill for the remaining $290
million.
The

needed

Conference

—

ous

for

money

administration

its

GERMAN

21,

this year

occurring

countries indicate their dona¬

last

Friday.

This

1961.

DUTCH

year

is hoped

ENGLISH-you

name

With direct cable connections to offices in—

AMSTERDAM

MADRID

FRANKFURT

MONTREAL

PARIS

GENEVA

HONG

ROME

KONG

SAN

LONDON

JUAN

TORONTO

feel

particularly well-qualified to provide

help and information when it
or selling
foreign securities.
For

direct

call

our

comes

to buying

foreign securities

trading desk, just dial—WHitehall 4-4732.

K]
■

MERRILL

LYNCH.

PIERCE. FENNER & SMITH INC
70 PINE

page

this

tions; prior to which Mr. Hoffman

the cost is always
on

and

approved.

common

■

advance

countries

Trading in Foreign Securities?

represents

debited

$500 million in projects to fos¬

loans").

cf. Observations, Sept.

property.

the

Continued

loan, inves¬

Ironically, at habitually hosts a "soft sell"
September, 1960 luncheon to finance ministers—as
much liberal opposition this
year's held in Washington

placing

from

whether it is deferred

years,

tions in pre-grant, or

Whether the cost of

immediately
or

shall Plan Administrator, it func¬

debited to surplus over a pe¬
of

has

IDA's founding in

ade¬

calling

maturity

stockholders.

surplus

Black

President,
on

the

affiliate

unfailing this Friday (Sept. 28)—the vari¬

lost in the billions

a penny

The dollar cost of calling a bond

call

via

Corp.,

slanted

Mr.

ranged to get
scene

has
The

preceding IDA's Unit's expenditures is secured by
taking up its residence in the contributions that are wholly vol¬
Bank at its "soft money window,"
untary. Annually at a Pledging

An invest¬

differs

investment made

whom

policy

home."

Finance

equity

doubling

years

of the return, it is impor¬

bond before

issue

"begun

subscriptions, uting through the Fund
h^ve pro¬
rapidly committing the bal¬ vided $210 million of the .total,

this invest¬

considering

investment

expansionist

po¬

timing."

of i usable *

million

tant to recognize the nature of the

ment

the lenders "to avoid

Such

over

long

very

multilateralism

litical influence and bad

Mr.

already

refunding must provide

adequate return

ment.

for

tigatory technical service.

this

justify this outlay of capi¬

the

and

among

("IDA").

Association

tal, the interest savings resulting
an

terms";

Equity

otherwise would not be spent.

from

amount"; for "loans at

hazard.

Investment

order to

aid

"different in kind and greater in

International De¬

the

must be to provide suffi¬

ditional

multilateralism.

International Finance Corpo¬

the

("not

The

meetings—with

greater

ing, Mr. Black pled for

Bank's

(onto

has

"softness"

devotion to the

cient

week's

for

International

adversely.

money

last

already

Switch to Softness

veering

philosophy to

Evidencing his whole-hog switch¬

the

underdeveloped have-not nations.

danger of the bond market moving

much

"soft"

the

general Aid area—I revealed

"laxity"

from

make the call worthwhile.

the

plea

expended commitments
the point at which totalling $235 million out of $757

basis,
on

significant

philosophy

investment.

fix

never

consummate

fallacy is recognized by those

past:

agencies

existing

both

and

occurring

of the World

issue. Its basiC'fiallacy

produces

providing
turn

not

credits

This

interesting

IDA, the a-borning instrument for posal then impending, and directed
assumption that1 ah in¬ extending "loans" with a 50-year by Paul Hoffman, former Mar¬

li'es in the

hazard

ognized that there must be addi¬
The tional
savings beyond those pro¬
bond vided
by the "break-even" yield
new

granting

help.

newly contrived devices.

first

Approach Unsatisfactory
method

This

operation, there is always

each

who have used this method in the

cou¬

Terms

vestment

46,000

During Call Period

new

This

outstanding

indenture

And the question to

answered is
pon

$10

is always to reduce interest

pose

Duplicate Interest

restrictive

requirements,

105

Bank's

other

velopment

lem^ of-whether

Bonds at

Eugene. S. Merrill

refunding operation, such as

price

redemption

5.11%

and

years

return

unamortized

the

year.

call

cost

remaining life of 25

Redeem

be secon¬

dary

annual

illustrate, let it be assumed
dollar

ziro-

even

the

in fact, amortize the

investment in cost of call and

break

follows:

mpaniies.

While

the

$10 million, 5Vz% bond issue with

funding again
c

termined do,

Spillover

spillingiover

national

Bank's

•

Official

de¬

World

general

each

the

Shylock.

continuing expansion in the inter¬

that the interest savings

the

offset

savings

Uncle

reveal

a con¬

rate, tho tax effect

cost of call and the tax effect

vide

that the quest i

point.

s o

the

subject to income

are

investment in the old issue would
afford at the call cost and is often

tax

of call, and the annual inter¬

year

est

suffi¬

taxes.

call

ciently wide

became

savings

income

prevailed

annual

AID

hands

meeting,

strikingly

here,

Most

$546,000 and

the

Even

trators

of the old issue.

without reference

during the tight money conditions
in 1957 and in

arehiaining

$39,000 have both been computed

Under this

yield

the

International

Fund annual

Monetary

apd checking, jyttb aid,,adminis¬

and

the

termed

yield approach.

approach,

provide

may

The cost of call of

return" with a higher equity return sought for a

been

sufficient

GREATER

Attendance

—

Bank

World

through

life

public offering than for a private placement.

spread between current costs
long-term bond financing and

-new

the

old issue and to amortize this dol¬

Conclusion emphasizes need to create interest

The

for-the

WASHINGTON

lar cost of call over fhe

savings sufficient to amortize the investment and to provide the
"desired equity

In other words, the classic

AIDING

the

bond yield return on the dollar
investment required to call the

computing the interest reduction required to maximize the

illustration purposes.

calling

yield approach to the ques¬

will

equity return, and he supplies a refunding guide table for

desired

years

bond at which the interest savings

capital financing; and the advantages of private placement to elim¬
inate the time risk. Mr. Merrill outlines, the steps which should be
taken in

cost

WILFRED MAY

5.11%

the unamortized bal¬

the

will

return

an-

These

tion of bond refunding merely de¬

hazard of an adverse price movement
market; merits of combining a refunding with a new

bond

the

$39,000

termines-'fhe-< rate

discussed include the present
in

issue,

$39,000.

$546,000 over 25

provide

bonds.

refund a bond issue?

siderations he describes are taken

and

sayings

amortize the

ance

inadequate the classic bond yield

annual

each year on

Mr. Merrill rejects as
approach. He favorably describes
the fequity return approach as affording a more precise guide in determining the feasibility of refunding providing other important con¬
When does it pay to

OBSERVATIONS...

000, as compared with $550,000 on

STREET, NEW YORK 5, N. Y.

raise

Volume

Number 6198

196

The Commercial and Financial Chronicle

(1297)

$100 million, $40 million of which

two years, is the Agency for In¬

complex will be at Terneuzen in

from the United States.

dustrial

Holland.

Development

("AID"),

sometimes accused of taking
JOINING THE

LIQUIDITY

of risks unacceptable to IDA,

line

The product of merging of exist¬

Kingdom's

the United

source,

ing

unclear to

and

Under Secretary and chief

Robert

Roosa

versed

long

down,

fairly characterized

expert

to the

way

may

Stamp, which rests

the

International

as a

printing

the past

using

for the creation

The keynote of the scheme was

in mind

by Exchequer Chancellor

tilateral

character

proposals

"I have

arrangement of

are

operation]

[Mr.

based

mul¬

Roosa's

bi-lateral

under which countries

could continue to

acquire the

during
on

June

ing

cur¬

carry

40-

ranks

of
at

three-quarters of

ginning

after

percent be¬

one

initial

charge

10-year

review
may

tude

million.

have

'i?i

The

building

_sa*®s

than

si;

t\:

(which

doubled

j\fewes^

significant

brewing
Bank,

for

Inter-African

1962

were

interested

typically

that

of what

much

and

the "gold guarantee"

privilege,
posed

around

unaware

is being pro¬

already

existing

planned — confirming
Mr.
Roosa's credo of building ori what
we&haveiu The advance in liquid¬
or

ity which

we have

already made

under his

direction,

bilateral

ings,
And

way

mutual

currency holdalways appreciated.

not

seems

not

too

well

realized that under its
long-exist¬

ing regulations, Monetary
holdings already carry a

last

week's

hnf*P

nlant

billion)

meetings

investment

the

velopment and marketing of

Cover

have

decade

last

by Secretary Dillon, as keynoted

ever,
Of
ot

stressing

the

need

operation, Mr.

Dillon

co¬

much

was

frank and objective than on

occasions, regard¬

some

the

ing

their

for

status

domestic

our

economy.

entitled

appraisal

financing

a ques¬

the

importance

the

deficit

the

outside

Moreover,

ten

operations

fully

to seeking

greater

In this context, Man¬

aging Director Per Jacobsson

sev-

er&Mimes during the past week
has referred to the need to adapt
itself to "changing
as

the

circumstances,
large increase in its mem¬

ber?,. and

the resulting. »eqd J or

undertaking manifold

activi¬

new7

ties."
#

❖

levels

now

Product

CHICAGO;

111.—Richard

been

elected

and

Vice-President

sistant

Wells

Mul-

&" Company,

135

Merger,

49% of 1962

and include basics

the

for

solvent

nounced.

Mr.

Street,

now

basic

nercent-

age of upgraded and end-product
chemical outnut

strategic nenetra-

last

year.

plant investment,

plastic pipe, averaging above $100 million anundistributed nually—because of these, Dow

maker of
shal'e of

might well be regarded
equity of merit, priced at

$4.4

common

also

was

There

which

Ltd.,

supplies

in ten fo

JgPn

oil

•*

cQun.

AlDGrt
'

V.--L. 01

Overseas

Goodkind, Neufeld

Dow was an early entrant into
foreign markets, and, today, earns

about 10% of its profits abroad. On Sept. 19, William Alpert was
elected a Vice-President of Goodkind, Neufeld & Co., Inc., 711
Fifth Avenue, New, . York City,
members of the New York Stock

cleaning industry; Voranol products

graduation

Muench

from

University
master

where

joined

Community.Plastics

had

bachelor

received

administration,

previously
of

arts

" re¬

degree

Marquette University. James

Dunphy,

formerly

with

Company, has been

cashier

.of

Company.

S.
ap¬

Mullaney,

Dow

Northwestern
he

business

degree/
ceived

coatings

for

materials

raw

tics,

•

largest

Exchange.

overseas

•

•
■

dividual

of 1962 sales., In¬

Stryofoam,

These

resins.

verted into

con¬

provide
the

Saran Wrap,

favored
and

panels

Styrofoam;

using

masonry

and blown-molded, bottles;

Saranpac,

MR. LAWRENCE LEVINE

established

thru

our

Community

new

Philadelphia

■

office at

and

SOUTH
121

BROAD STREET

Klngsley 5-0866

(9% of revenues)
in March

under the direction

;

of this

Agricultural

consolidate

Chemicals with
grams

JACK CHRISTIAN

JAMES B. FLANIGAN

other major pro¬

biologically active ma¬

terials, previously located in other
company

divisions.

Better known

products from this department in¬

animal

clude

& CO.

services to

Philadelphia

transparent vacuum

This division

year,

Manager

}

Bioproducts

was

MR. BERNARD SHWIDOCK

our

Investment

household wrap;
insulated

package for prepared meats.

and

will continue to

packaging including rigid contain¬
ers

Manager, Trading Department

pleased .to announce that £

appointment of

are

protective film; Handi Wrap, a

and

pleasure in announcing

broad variety of con¬

end-products.

sumer

epoxy

variously

are

-7

Polyfilm,

and

polyethylene

Styron,

products .include

Daw

Pelaspan,

division

product

this

generated 35%

insulation

Institutional Sales

Its

•

major factor in plas¬

and

widely

increasea percfni,

Bloomington, in 1956 after

Dickson &

MEADE

share.

t wpilim*

increased

trieg

members

Country Life Insurance Company,

Powerful and effective -in help-; pointed
on the aid queue over the past
Wells &

the

per

It anticipated the formation and
and'foams* Dowgard coolant for growth of the Common Market,
of the Midwest Stock Exchange,
motor cars'
and methoxyflurane, an(i bas located a number of its
Paul L. Mullaney, President, an¬
a new inhalation anesthetic.
' Plants in the European Economic
Salle

ing

We take

declines

Price

oat-

dry

such

products

upgraded

As¬

ago,

oil well 20 times net. Historically, qualover- ity chemical shares have sold at
partnership, Dowell Schlum- much higher multiples.

seas

chlorine, ammonia, mag-

formulated

COMPANION AGENCIES

has

Muench

such

nf fhp

„

chemicals

cementing service;-and

four major product groups.

sales revenues,

Elects Muench

from

off

the Dowell Division,

Groups
.

year

Because of the apparent levelling

Dow

new

-a

turns on new

million

Chemicals generated

one

that

increased

into common at $46.75

the

mav

fact

Profit in these ventures

canacitv

The business of Dow is1 divided

laney,

even

re-

cnemicai output, strategic penetra
tion of foreign markets, a cash
flow of aroTOd, $5.50 per share,
prospects for fuller util zat on of
plant capacity, and ultimate re-

Smith,
Dow's

r*!/

major

;

Furthermore, Fund management
expansion.

dfvisions!

several

are

tn full

nparor

his administration in this direction.

South

in¬

Dow Badische, acrylics; and Dow

earnings

net

into

efforts and achievements made by

gold-

to $6 billion

countries.

Dow is also a 50/50 partner in
foiw significant joint ventures:
Dow Corning, maker of silicones;
Ethyl-Dow gasoiine additives;

higher distillation of

Hnilirs

effort

f ?

the

are; slanting downward,

permitting

this

idea

day;

and,.depreciation

improving;

are

operations tend

currencies

member

Plant

commercial banks, he stressed the

Vienna, the I.M.F.

There has been

$1.60, providing a 3.2%
yield. Recent range of the stock
has been between a 1962 low of
40 and a 1959 high of 100-%. At
50, the shares sell at 20 times indicated 1962 per share net of $2.50.
Another way to invest here is via
the convertible 3% debentures,
due 1982. These , now sell - at
around 118, and are convertible

avfragfa .3Ust aDOUl one new pai
ent a

recently.
efficiency and cost, ,09,11 tyol?
acivanced

have

prices

among

draw

company,
which
producing chemicals

now

of sales

averaeed iust about

chemical
cnemicai

foreign
toreign

and
ana

olateau
plateau,

-17
from

gaineci

bottom

million).

preativitv

chemicals
chemicals

domestic
domestic

•;i.

Resulting from
negotiations following last
year's

in 1962, about

($441/0,

Prices

discernible.

now

seemed to have reached

tion by this writer concerning his

Fund

to be overlooked.

meeting in

basic
basic

charges

Significantly, answering

Likewise does recent expansion
own

old

out

dividend,

con-

sumer

change for the better, how-

by the President. Furthermore, in

value guarantee.

of the Fund's

diversity of this sixty-

year

pose,

and

you

idea of the magni¬

old, succeeded him as President.
Herbert Doan is a grandson of
/ H. H. Dow, founder of the comare
^
/ ^ :

sales, at $890 million,

trate,

our

the pattern of the Inter-

throughout

Superfluity
public

some

capsuled

operations,

All of these many products
higher than the year manufactured in a series of plants
largesse
will surely continue throughout earlier, yet per share net declined in the United States and abroad.
Dow Common Stock
the world. For example, an addi¬ from $2.23 in 1961 to $2.16 this Increasingly, the total corporate
There are 29,120,120' common
tional instrumentality will prob¬ year. Effective development and emphasis is on upgrading basic shares of Dow Chemical listed on
marketing of new products, and a chemicals, and the research, de- NYSE, selling currently at 50. The
ably
result
from
plans
now
outlets

Other

Fund."

The

foregoing,

Dow's

the Executive Committee, »and his
son, Herbert D. Doan, forty years

oriented products from
rency of another country which
American Development Bank now created a revenue uptrend well them. In this way, profit margins
was temporarily in
surplus in the
above the industry average; but a are improved, company earnings
operating in this hemisphere.
markets and use it to establish
nagging combination of price cut- stabilized, and less influenced by
claims on a mutual currency ac¬
ting over capacity in the industry, Price swings in raw chemicals—
count
(which they, themselves,
rising
labor
costs,
and
heavy especially petrochemicals, in
Co-Operative Note
could use when their situation was
charges
have,
for which Dow is heavily involved.
In the face of advance rumors depreciation
reversed). These claims would be
some time
exerted resolute pres- To implement this upgrading probeneficiaries of the gold guarantee to the contrary, a happy spirit of
sures against any upswing in net
gram, Dow has gone in heavily for
flexible
cooperation
with
our
that comes with
holdings in the
earnings
research, spending, for this purpartners
abroad was preserved

fastening

in¬

quantity

magnesium.
+

chemicals,

management. Leland I. Doan,

ac-.

process

broad

sales. ,cently stepped up to Chairman of

of /1962

additives,

teresting continuity in corporate

jn ^he production of

use

To illus-

the
of

get

started

and - aluminum

•

for- 7%

using

since

six

principally

gasoiine

1954) but in converting them into

satisfactory net profits.

period.

countecj

production

industrial

from brine.

based

magnesium

problem

cat or dog to dispel its

fleas.

Metals

recent years, has not

Dow, in
in

ticks

for

revenues

iiv

$908.5

been

total

with

you give a

fourth largest in its in-

fC?AAn !

except¬

expense,

service

annual

The Dow chemical Company now

From

improved profit margins and net earnings. Besides

stock, investment in the company's bright future can

common

be made via the convertible 3s of 1982.

dustry,

recurrent

grace

Reginald Maudling thus:

fiscal year ended

"loans"

other

of reserves.

set forth

disbursed

maturity, with nO interest

year

Monetary Fund

press

was

The

Stamp

grants,

30, 1962.

Plan, still being bruited about by
Max

outright

the

billion

having tra¬

and

the threshold of

this Agency extends

enter

termediates and plastics.

chemical, with sales running at an all-time high, appears

about four to one. A total of $2.5

Treasury

This major

with the former predominating by

observers,, from Secre¬

Dillon

tary

direction

Hamilton, former New

loans

both

key provisions have seemed

some

the

under

York lawyer,

Although

quidity, presented here.

Fowler

full-dress proposal to further li¬

agencies

1964, and to manufacture

By Dr. Ira U. Cobleigh, Economist

SCRAMBLE

Quite surprising, because of its

This diversified plant is

expected

care

Ruelene,

health

product, N-Serve, for con¬

trol

Grass

soil

Killer,

new

fertility,
and

Dow

Ectoral,

Crab
a

pill

Singer, Bean & Mackie, Inc.
NEW

YORK

Members New York and

PHILADELPHIA
American Stock Exchanges

'■

(1298)

The Commercial and Financial Chronicle

abroad. These are, of course, wise

Tax-Exempt' Bond Market

words

might

budget.

tried

"during

yield

in¬

1% Veoupoh

the

pre-sale.

associates.

1.60%

from

The
Drexel

balance

re¬

The

$7,500,000.

one-quarter of

committed

and was

•

'*■>

•

Halsey, Stuart & Co., Inc.,
Co.

account

bidder

successful

1988

for

the

was

$5,000,000

Continued

page

tax them to today's circumstances, it ducing certain welfare and foreign
continued to .do seems difficult to escape the no- commitments. Unfortunately, our

municipal

other

and

bonds have

tion that the market for tax- leadership seems to resist thisexempts may now penetrate the salutary effort with all the in¬
and the market firm, if took .the April
high level. Were we to fluences at its command. There
new" issue volume scheduled for average ten-year offerings rather must, be some give. here >if /Tfe
reporting a week ago.

since

well

maturity carried

net

made

was

Thursday, September 27, 1962

cost. .The

3.202%

1963 to 3.35% in 1987, l^e present

cost

Scaled

Congress

make

interest

net

Bankers Trust Cc. and

balance

session

this

terest

give

well

closer

national

nobly

sense

tree

heed

our.

has

State,

leaders

further

D. MACKEY'

BY DONALD

Our

3.189%

and"they_bear repeating.': sepond bid

the tone has been good

A1 though

Larger Issues Scheduled For Sale

Tuesday
week

interest

the

than it was in the strong April

The

investors.

part

'v ?

Michigan;

awarded

which

are

report)

were

zeal

competing

entire

the

vade

including"
mciuamg

offerings
onenngs

Rise

margins : of

diminished" in

the

list,

Blue

3.019%

ter

week

Financial
averages

This

does not reflect the

through

pressed

it
exex

after the

fact

velopment.

issues

immediately
influences

sensitive
than

However;
present
is

mand

lag

with

the

came

very

through

the

week. Just

April

18,

grade

;

about

the

3.00%

Index

the'

The

average

yield

mained

through 3.00%

following week

at
the

2.992%? and

re¬

and

that

inventories

muich'higher
jwas

sue

than they

the -calendar

offerings. /

Considering
others

less

were

these

line

economic

The

factors,

factors

interpretation

.■

than

other

has

done

Other

taken.

.•

New

ductive

Rate

3Vz%

(State)
^
3%%
Jersey Highway Auth., Gtd.J 3%-;
York

State

"
10:00

a.m.

Noon

11:0Q

;

a.m.

8:00 p.m.

' "

has

the

deficit

and

investment

3V4%

Maturity

1982

Bid

3.25%

the.

10,000,000

11:00

1963-2002

1963-1981

a.m.

7:30 p.m.

11:00

11:00 a.m."

Co.,

Drexel

Nation

Nacogdoches Inc'ep. Sch. Dist., Tex.

;

Pennsylvania State PS Bldg. Aufcb.

26,652;000r *1063^2002.. Noon'.

October 17

Co.,

Duke University,

Weeks,* Coffin- &

offered

yield.from

for

myriad

•3.00%?
2.90%?

Michigan,

water

revenue

1965-2002

11:00 a.m.

1985-2302:

11:00 a.m.

1964-1991

1,200,000
-

Noon

■-

October 18 (Thursday)

A'-.

Texas

Galveston, Texas

-1.

2.000.000

3,700,000

;

2:00p.m.

' October 22 (Monday).i
Rutgers, - The
State
University,
^
1964-1998
>•;' New Brunswick, N., J._
' 2,500,000

sold
bonds

' ■'

'•

;

$22,T

910,000 various general obligation
and

Austin

;

Willoughby-Eastlake S. D., Ohio^_

with'

3:00 p.m»

1,000.,000

1964-1.978

Noon

October 24 (Wednesday)

'
'

" *" '«

.October 23 (Tuesday)

(

Pennsylvania (State)
1974-1975
3%%
2.75%?
2.60%?
issues totaling $21 ^10f000 awarded New
*D£laware (State)
:__2.90% : 1981-1982
3.05%? *2.95%7 *
York, N;
107,900,000
1963-1992
"':New Housing Auth. (N. Y.,N. Y.)'_ 3%%
to
the
syndicate ' h c .a d e dby
1981-1982 ! 3,05.%?. ;2:90%?
November 1 (Thursday). v .:
Los Angeles, Calif—
1 3%%
1981-1982 ,3.30%?
3.15%?
Halsey, Stuait & Co., Inc..iLn asLa Porte Indep. Sch.-Dist., Texas r 1,500,000
__
Baltimore, Md.
1981
3%%
3.00%?
-3.15%
^ociation: - wfth . different joint
1981
"Cincinnati, Ohio (U. T.)
3V2%
3.10%? :2.90%?\ managers for the various loans.
November 5 (Monday)
Philadelphia, Pa.
3^2% 1981
3.30%
The .$10,000,000 ..school- district Euclid, Ohio
k 1,300,000
1964-1983
1981
♦Chicago, Til.
—3V4"%
3.15%?.
3.30%?
.(4963-1988 ) bonds went do Halsey,
New York, N. Y
November 14 (Wednesday)
1980
3%
3.42%
3.35%?
oiuuxl
Stuart & Co., Inc; with Drexel &
oc
xxic.
wfM,
Fast Bay Municipal Util. D./Calif.- 30,000,000
September 26,1962 Index=±3.003%
Co; f and
the First., etf
Michigan Ho uston (Waterworks Rev. Bonds),

11:00 a.m.

•

♦No

apparent availability.

Corp.

a.m.

of coupons

Detroit's Multiple Award

j Detroit,

•

(-Urbana, 111.) ——- 6,700.000
VerQ Beach, Fla:---2^00,000

were

1.50%

Trustees

C0:,

10:00

! 1,100,000

Univ. of Illinois, Board of

1964-2001

2,400,000

Durham, N. C

Greenwood, S.

Inc'.;.Wecden & Co., Dominick &

11:00 a.m.

(Wednesday)

Mich, State Univ,;(Bd. of Trustees)/ •

Dodge

1988-1992;

6,150:000

Pompano Beach, Fla.-^----—

•

Laaenburg, Thal-

Dominick,' Clark,

7:00 phcL

.1,'2()().000

Co.,

Hallgarten

Co.;

a.m.

1- Bank,

(Lansing), Mich.

Burr, Adams, McEntee & Co., Ira

3.10%

-2.90%

3.05%

•

1965-2002-

Asked

1981-1982

Va.

1964-2001

Goodbody & Co. The bonds

: 3.10%? :•

3.05%

1,000,000

include

of the issue was sold.

.3.15%

2,600,000

2,321,000

Commission,

Connecticut Bank & Trust Co. and'.'

and

1981-1982

Authority

Sanitary District

Haupt &°Co., A. G. Becker ,& Co.;

find

U981-1982

8:00 p.m.

3,750,000

mann

pro¬

home

of i; the

3:00 p.m,

______________

Hornblower

private

for

1,895^000

Jerseyville, 111.

White, Weld & Co.,. Carl M. Loeb,

been

ability >'to

its

1984-2001

1963-1982

2AZQMQ

•

Michigan State Board of Education

Rhcades & Co.,

perform-,

the

2,000;000
: A:

University,

Michigan State Board of Education

Philadelphia

measures

the

leaves

2,000,000

Con-

Devine

than, any¬

have

RirraT Roads

Hampton Roads
;

members

gro u p

Roosa

stated,

riAorcrla

-Bank.

a.m.

.October 16 (Tuesday)

:•

clarify the in¬

profitable.-opportunities

Connecticut
New

-tinental .Illinois National Bank &
Trust Co.? Blair
Uo., Inc., C. J,

that Under-

scene

The; rest

economy

and

Treasury

obvious and easier

reduce

ance

seem

of the

City

major

winning

MARKET ON REPRESENTATIVE SERIAL ISSUES

(State)

.A
1965-1978

these

National

First

The

the-account

Manhattan Bank, and

Chase

Co.;

meaningless,-that offers

financial

else.

one
more

pertinent and relating

exington Ky

2.8499% <net interest ...Rutgers,

and upon offering about one-third

California

'1^025,000
2O;OO0.,OOO

Indianapolis Airport District, Ind.
La Virgenes Mun. Water Dist., Cal.

headed jointly by Banleeris Trust

antithetical

deliberations.

Inci--:at

of £^afn€ from

fre¬

manner

frequently

for-his

volved

is¬
.

litde

It would

very

new

B-tate
cost. The only "ether bid for the
-.New Brunswick, N.
bonds-setting' a net interest cost Trenton, Mich.

Co.;

continuing steady

dangerous

Secretary

today

are

1,022,000 :1964-2001
1,'200,>000
1963-1987

*Bal-

jointly by the first National Bank
of Chicago and Halsey, Stuart &

public -expressions

gleanings,

until May

| During this period, it would

seem

was

there

ago,

averaged

3.023%.

23.

around.

the long-term investor any guide-

this

six months

October 10 (Wednesday)

•

11:00

and -often

breaking
level

Noon

arriving at policy conclusions but

offerings,

a.m.

8:00 p.m.

1064-1988

1963-1-986

issues .of

The Index, which averages only

high

a.m.

10:00

1963-1979

Political

'■

11:00

selling at Wyoming P. S. District, Mich.—_
1,500;000 1963-1988
The largest .,>•
October 11 (Thursday)

loan of the week, $32,800,000

The Political-Economic Scene

Breakthrough April High
>' ■'

bidding.

a.m.

8:00 p.m.

l Q25 000

quently

;

over

politico-economic- experts is

';•/

•

competitive

new

little

but

bonds

11:00

.1964-1984

4,550,000

portant flotations. Tuesday, how-

has been

schedule of

totals

large, enough to

^relatively higher.'.

Indicated

the

now

market.

new

bond

20-year

high/» point,

1963-1987

70' '

Monday of the Austin College (Sherman, Texas-)
thefb were' ii'6 iih- Falls Church," Virginia_i__

current, week

a.m.

1:968-1984

9.000,000

• /.

On Friday and

10:00

1964-1990

;

Portage Township S: D., Mich

•-

1963-1987

3,172,000
2)676,000

-i

$76,000,000

secondary market offerings and

•

the

to 3.S5%.

•

10:00 a.m.

;

.New Hanover County . (Wilming-

^ ton) N. C.
Phoenix Anz.

ever, was a

to favor

from 2.7.0%

was

1963-1977

Berkeley Unified Sch. Dist., Calif. .4,000,000

$400,000,000. Through

seem

syndicate leftovers,

came

Lexington, Ky.
banner day with over Louisiana Fiscal Authority

run

about/

2j0i2,,000

October 9 (Tuesday)

present rate timore, Maryland, various purpose' Savanrt^h 'Ga
l"'^ • la40*000
Pf investor demand this average-.(I9ft3-1988) bonds was awarded
*
of new issue volume seems not to
the
large
group
managed;sOctober 15 (Monday)

simulant,

general

cost,

October 6 (Saturday)

;

a.m.

4,816,600
2;000,6O9

Uniy* pf Nevada (Bd. of--Regents)
.

9:00

Noon

l',350,000 ^ 1963-1969 10:00 a.m.
- 1964-1983'/Nooh"^/
1963-1982 » Noon >' :

■

group headed jointly by .Middlesex County, N. J
J
Morris Hills, Reg. S. D., N.

UU1,U'5 Wcts ±liUIia

where bank de¬

dominant

interest
interest

net

$3°W0'000--A1,

dollar'quoted term bonds

along

its

the average

then
under

issues

hond^

well over

in mid-April, as

November,

market such

one,

the

even

well

offering^

serial "bond

the

Since

secondary

are

3.955%?

market

White and A. P.

osf 3)929%. "The runner-up bid, a

reached

market

is¬

quoted

also

and

$7OO,GO0;GOO

is the de¬

are

#16, N. Mex.
Licking County; Ghio__2__
„i
Stratford, Conn.

(1964-1984) bonds

syndicate managed jointly

averaged

$500,000,000

new

dollar

The

bond

term

general

acceptance if such

sue

day

market>

the calendar

ings. Secondary market mark-ups

generally

Artesia Municipal SD

-Blyth & Co. and B. J. Van. Ingen
Tbe
new
igsue
caien(jar
ais0 & Co. All tout $205,000 -of bonds,
eont4nues to "average
out at an maturing
1966-1370 were sold
unexpectedly low total each week. Privately with no public reotter.
From
January to mid-May *ing' Tile sca e on
e
0

issue offer¬

new

to\'he

Alaska

1964-1987

October 3 (Wednesday)

•'.

Kelly & Co. at a'net Interest,; cost,

higher average total is to be

able

dynamic

frGoucntiy
frequently

chanses
changes

market

offerings,

the

<:/:!'•

11:00 a.m,

1:9.64-1989

District; California
10,000,000
of Virginia (Charlottesville) •
1.,200,000

Univ.

municipal

$3,001,000

a.m.

Noon

1963-1988

•

hK sr *A*3Ska,

* a^rr

by Northrop &

precipitous jump

•

10:00

1965-2002

.196^1991

2^67.5^000

—r~~~~~"~~~' "~7

-8:00 p.m.

1964-1983

2,1.60,000

Los Angeles County Flood Control

?
.

Fairbanks

expecter Thiris4^certainly"favor- fr°m the

quar-

Since this Index

available

inursaay^ept. <5U, oniy one

utility revenue
to

—

average

$500,000,000 ; since

indication that

is the composite of 13 preselected

generally

under

to. buy

a.m.

^3,047,000

^^®^ County, Ga,_-__-

sharplyr

awarded

$349,634,107. The total has

biaiahg^

early July. There is little present

reprea

consistent

the

were

frenzy

profiti

2:00 p.m.
11:00

October 1 (Monday)/

/
" { r* .
.
October 2 (Tuesday)
Arizona State University.1,500,000

low

new

1965-1982

1963-1982

1,525,000

Paramus School District, N. J

issue of note sold at public

new

availability.'The current

count of

ago.

point gain.

most

the

•total is

Story

Full

Sept. 26 against

Kr^Hc
Donas.

somewhat less than

sents

and

€l°se to approximating street m-

Index

yield

3.003%

out at

state

use'the Blue List total of offerings

Commercial

Chronicle's

have
nave

been
The

total

List

list the bonch issues

September 27 (Thursday)

Englewood, Colo.

underwriting

and

levels

yield

ventory. However, we comipue to

Not

issues reached

for .these

dealers'

:•

underwriters

among

judge; Perhaps two or three' times

push in early May.
Index

4;. >■

before,

market,
last big market

the

since

• r

Competition

municipal offerings might come

that
mat

unheeded

languished

intimated

have

•

stale
staic

the
uie

of
ui

$164,GQ0;f)00

with v over

•

inventory balances are .difficult to

per¬

tax-exempt

some

sprnndnrv
secondary

shelves

series

operations that will

mark-up

Tax-Exempts

such
as

groups

another

motion

set

this

with

sought

ing

Technical Conditions Favor

one

•bonds sold at competitive bidding.

days

later

listed

(details

this.

were

eventful

these

■

week -has
in many weeks in Nashua, N. H.'—u
new issue wnderwrit- "H
;

The past
persistent than in other maturity most active
Carolina; and brackets and partly accounts for the field of

issues

Rico

Puerto

"•

tabulations;

the/following

$1,000,000' or more for which specific sale dates have been set.

Belolt; Turtle & LePrairie, School . '
t"
/
___1,000,000
been- the •"/ iBistrict No: 1, Wis._

Oregon;

Eugene,

North

Greensboro,

are

An Active Weekfor Municipals

Pennsylvania; market. Bank interest in the early*
Maryland; Detroit, IS70 maturities .has been more

Allegheny County,
Baltimore,

obvious corrections

and

easy

than a find that this area <rf,; pricing 4? to generate a ^strong enough dblmarket presently as high if/not higher.;'iar<
; V/; •:./,/

stimulate more

moderate

this than 20-year offerings .we might

Wednesday

and

' joint- managers

Texas'

14,000,000
:

Noon

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I
,*

The Commercial and Financial Chronicle

(1300)

Prudent

DEALER-BROKER

lected

Hummer &

INVESTMENT LITERATURE

THE

THAT

UNDERSTOOD

FIRMS

PARTIES

INTERESTED

SEND

MENTIONED

New

Smyth, 26 Broadway, New York

4, N. Y/-.

Dollar—Review—Bank

Canadian
of

Montreal,

6002,

Box

Mitsukoshi Ltd.

Liggett &

Tobacco Company,

can

Ameri¬

Company,

Tobacco

nolds

Broadway,

Also available

N. Y.
on

Honda Motor

A*.'/- -v

;-v

Review with particular
reference to Fuji Car Manufactur¬
—

Myers Tobacco Company, P. Lor-

ing Co., Kawasaki Rolling Stock
illard Company and Philip Morris Manufacturing Co., Nippon Sharyo
Incorporated—W.
E.
Hutton
& Seizo Kaisha Ltd., and Tokyu Car

Co., 14 Wall Street, New York 5,

Manufacturing

New York.

Yamaichi

Securities
Ill

Memoran¬

—

dum with particular reference to
Factor

Co.— A.

Max

and

Inc.

Products

Avon

Becker

Co.

—

Co. of New York, Inc.,
Broadway, New York 6, N. Y.

Industry

Cosmetics

Also available is

and

the

Co.

Incorporated,

try—Discussion—Stearns

New York

80 Pine

Indus¬

Co.,

Street, New York 5, N. Y.

Park

800

randum—Wm.

Co.,

Tegtmeyer

Salle

South La

105

Street,

Industries—Analy¬

Steel

General

Congress

Mass.

Boston 2,

;is

review

Women's Wear

Hospital Supply Industry—Analy^

sis—Blunt, Ellis & Simmons,
Monroe

West

111

Chicago

Street,

Illinois.

Company—An¬

Johnson

Howard

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

Lisle

Marshall,

Providence

Building,

available

Also

Turks

memorandum

Machines

Business

International

Webber,

New York

4, N. Y.

Girltown,

Noyes

Inc.;

Kayser-R

Logan;

Industries,

Co.,

Hanover

Also

Street, New York 4, N. Y.
available

t h;

Inc.—Hem¬

Co.,

memorandum

Also available

memorandum

the

Aero¬

Industry.

space

Oxford

and

International

Street,

9, 7 Mass.

Boston

available

Also

reviews of Seaboard

are

Railroad

Line

Air

Muskogee Co.

Harvester—Analysis

—Colby & Company Inc., 85 State

Thiokol

and

Chemical.

Project¬

Electric Utiltiy Earnings

1962

ions

1965

York 5,

Study — Bear,

parative analysis of 60 companies

Alleghany

Wall Street, New

—Ralph B. Leonard & Sons, Inc.,

—H. Hentz &
New

—

N. Y.

Future of

the

discussion

Dollar
the

problems

facing the dollar
tional scene,

States

A timely

—

now

the Interna¬

covering the United
Changing

World

Economy, Position of the* Dollar,
Causes of the Balance of Payments

Interna?

Deficits,

Measures

prints of

Problem—Re¬

Dollar

the

study by

Graduate

the

School of Business Administration

of New

quest
48

York

from

Wall

University—On

Devine

Bank

re¬

Co.,

St., New York 5, N.

Gold—Discussion—First
in

National

Dallas, P. O. Box 6031,

Dallas 22, Texas.
Government

Review—Continental
tional Bank

231
cago

South

and

OTC

Salle

Market-

Illinois

Trust

Na¬

Company,

Street,

York

New

Gas

Chi¬

—

Compara¬

tive

dependent
on

56 issues

Co.,

Troster, Singer &

—

74 Trinity Place, New York

6, N. Y.
Oil Stocks

—

Bulletin

—

Courts

showing
son

the

used

Averages
the

up-to-date

between

stocks

-—

listed
the

the

and

compari¬
industrial

used

Quotation

Bureau

Averages,

both as to yield and
performance over a 23period — National Quotation

market
year

Inc.,

Street,

Edward
15

the

Counter

parative

figures

Stocks—Com¬

appear

N. Y.

B. V. D.

feld

■

issues

interesting—Carl

Co., 42 Wall

Company—Report—Herz-

Stern,

New York

Broad

4, N. Y.

Huff

Seventh

& Stetson, Inc., 26
York

available
Von

E. J.

Shields

Hamm

14,

Young

Sons—Comment—

Company,,

Wall

5, N. Y.

Also

comments

are

Phil¬

Cherashore

York

brochure:

"Facts and

N. Y. ¬

—

Figures

on:

way,

Institutional-Type

Wall

York

comrftents

are

Reu¬

Inc., 115 Broad¬

Gas—Memo¬

Inc.,

Loew's Theatres—Analysis—Breg-

Cummings & Co., 4 Albany

man,

Ludlow

C o

Producers/Pipelines

Salle

Independent Telephones99

Beane,

Assurance

brochure

Company,

Alkali

alysis—Hardy

Company
—

135

William

South La

Co.,

jor Cleveland

Co.,

& Co.,

Salle Street, Chi¬

South

135

Corp.—Memo¬
Whipple

randum—Bacon,

3, 111.
Mexico, S. A.—Study

Telefonos de

Hanseatic Corpora¬

York

New

Street, New York

tion, 60 Broad

(

Incorporated—

Industries

Texas

Noel &
New York 5,

Alstyne,

Analysis—Van

Co., 40 Wall Street,
York.

New

San Fran¬
Also available are

Montgomery Street,

Calif.

memoranda

Fireman's

jFund

Times Mirror

Co. and

Insurance

Inc.—Analysis Singer,
Scribner, Union Trust

Unishops
&

Deane

Pa.

Building, Pittsburgh 19,

Corporation—Analysis—

Pyne,

Kendall

Hollister,

Street, New York 5, N. Y.

5, N. Y.
Marathon

O i 1

—

Memorandum

Co.,

120

Broadway,

Aircraft

—

Memoran¬

Manhattan

Weeks,

Plaza,

Beatrice

New

Also available

5, N. Y.

memoranda

pany—Analysis—Sanford & Com¬
233

Francisco 4,

San

Street,

Sansome
Calif.

Electric—Review—

Westinghcuse

27 William
N. Y.

Kalb, Voorhis & Co.,

dum—Hornblower

York

Insurance Com¬

Coast Life

West

pany,
—

5, N. Y.

McDonnell

&
Co.,
65
Ne>v York 6, N. Y.

Broadway,

Co., 120 Broadway, New York

An¬

Co.

Oil Products

alysis—Fahnestock

MCA—Analysis—L. F. Rothschild

are

Foods

Street, New York 5,
and

Wilson

Company—Chart an¬

alysis— Uhlmann

Co.,

Inc.,

Building, Kansas

of Trade

Board

City 5, Mo.
Woelworth Co.—Memoran¬

F. W.

&
New York 6,

Lichtenfeld

dum—McMahon,

Co., Ill Broadway,

Sinclair.
Trust—Memorandum—J.

Mesabi

Sparks & Co., 120 Broadway,

70 Pine

Fuel—rMemo-

Street, New York 5, N. Y.

available

Wurltizer

Broad

the

same

issue

are

5, N. Y.
comments

Stores;
Comp¬
& Betts Com¬

Robinson

Grayson

V i

Ametek

Limited—An¬

Corporation

York

Street,-New

Pine1

memorandum

Pacific Lighting.,

Moore

Pierce, FenIncorporated, 70

Smith

ner

Company—Comment in
"Investor's Read¬

current issue of

er"—Merrill Lynch,

River

randum—Penington, Colket & Co.,
Also

Company—An¬

Statistical

New York.

Street, Chicago 3, 111..

Diamond

—

Universal

Mississippi

Blair

Corporation

Broadway, New York 4, N. Y.

Continental

Analytical

McKenna,

New York 5, N.

—

Wall

5, N. Y.

Street, New York
Society

t—

p o r

Inc.,

Co.,

Co.

p.—Memorandum—

Farber

Broadway, New York 4, N. Y.

Gas

cisco 6,

and

Corp.—Analy¬

Williston

Ltd.—R e

S>?Mumberger
Walston

Chase

Co.,

Pictures

Tumicc—Memorandum-

Scherr

Irving J. Rice & Company, Inc.,
Pioneer Building, St. Paul 1, Minn.

Chemical Corp.

Street, Toronto 1, Ont., Canada.
—

Street, New York 5, N. Y.

sis—J.

Utilities

—Watt & Watt Limited, 6 Jordan

Also

Sprague

Electric Company.

Reading Corp. and Olin Mathieson

New

Interstate

review of

Also available Union Oil Company of California
Philadelphia &
Analysis-—-Dean Witter & Co.,

6, N. Y.

Massey Ferguson Ltd.—Analysis

New York 6, N. Y.

Columbia

Inc.-r-Comment--—

Cun-

Memorandum

randum—Blyth

available

4, N. Y.

Pershing

38, N. Y.

Cinerama

Colorado

56 OTC

New

ben Rose & Co.,

Street,

Broadway,

170

d e n

a n

Lane, New York 38, N. Y.

Co.(Incor¬

Wall

porated,

—Crichton,
Inc.,

Line

—

Broeck, Lieber & Co., 125 Maiden

cago

York 5,

New York

dey
our

Broadway, New

ysis—D. B. Marron

Buckingham Corp.—Memorandum
For banks, brokers and financial institutions

Review

com¬

lips Van Heusen and Square D.

preparation,

Cohu

4, N. Y.

Wall

Brach

Pipe

Eastern

—

are

Company.

available

Can¬

Weighing

Corp.—Bulletin—Winslow,

Co., 210 West Herzig,

Street, Los Angeles

Also

ments

Panhandle

Warner

Railroad

Street, New York 6, N. Y.

Street, New York

Street,

Beneficial Standard—Comments—

Robert H.

Broadway,

4, N. Y.

Stewart

Co.

Schweickart & Co., 29 Broadway,

Street, New York 5,

New Yoik.

Co.,

New York

Building,

Inc.—Analysis— New

Henderson & Co., Inc.,

William

Corporation—Analysis

Paddington

Banks—Edward N.
915 East Ohio
Cleveland 14, Ohio.

Siegler

Arnav Industries

Calif.
Over

Street, New York 5, N. Y.

Ltd.,

over-the-

industrial stocks

National

Folder

Dow-Jones

Co.,

Nordeman

New York.

New York 17,

Over-the-Counter Index

M. Loeb, Rhoades &

Securities

Minerals & Chemicals.

which

Nomura

Bruns,

—

5, Ont.,

Street, Toronto

Bay

Siegler

Nickel

John Rogers Company—Analysis
Co., 11 Marietta Street, N/ W., At¬ American Safety Equipment Corp.
—Quails & Company, Frank Nel¬
lanta 1, Ga.
Also available is a —Analysis—Arnold Bernhard &
son Building, Birmingham 3, Ala.
memorandum on International
Company, Inc., 5 East 44th Street,
Lear

—

Review

Analysis

Corporation—

Co., 115 Broaclway, New York 6,

Japanese

—

E n k

801

Affairs,

of { Municipal

partment

ada—Report—Reynolds & Co., 120

International

Jefferson Construction Co.—Anal¬
American

Municipal Statistics, 1961—De¬

Broadway, New York 5, N. Y.

In¬ 221 Montgomery Street, San Fran¬
Telephones—Brochure cisco 4, Calif.

figures — Laird, Bissell &
Meeds, 120 Broadway, New York
5, New York.
Market

5, N. Y.

and

46 Front
New York 4, N. Y.

90, 111.

York

American
Distilling Company —
Utilities, Analysis-—Hooker & Fay, Inc.,

Producers/Pipelines

Bureau,

Insurance Companies

Co., 72 Wall Street,

International

Institutional-Type

counter

Securities

Street,

Corporation—Analysis

New York.

Strengthen the Dollar, and Solu¬
tion

Broad

250.

Annual Report

—

analysis compared to the four ma¬

Life Insurance Companies—Com¬

Stearns & Co., 1

Washington 25, D. C. (paper),

Company

Rhode Island Hospital Trust.

particular reference to Bob¬

Marlene

of
Statistics

—Superintendent of Documents,
Government Printing
Office,

Head —Dreyfus

Curtis, 25 Broad Street,

Jonathan

Can¬

U. S. Department

—

Canada.

r o w n,

Jackson &

Inc.,

Ohio

Ontario, Canada

Industry—Analysis

Brooks,

Occupational Wage Survey:

Labor, Bureau of Labor

Street, New York 5, N. Y.

Memorandum—Paine,
with

memorandum on Chicago Musi-

Wall

recommended issues.

bie

Industrial National Bank of Rhode

Moseley & Co., 50

Street,

available

Also

Also available is

waukee 2, Wis.

ton,

Island—Memorandum—B

100 largest U. S. Corpo¬

Street, Mil-

rated, 225 East Mason

cal Instrument.

Chicago 3, 111.

Corporations—Comparative

phill,

Telephone

Co., Incorporated, 60 Broad Street,

4, N. Y.

analysis of Manufacturing

Tokyo Electric Power Co.
Lasers

Also

Avenue, New York 22, N. Y.

rations—F.

Japanese Rolling Stock Manufac¬
turers

Montreal,
available is

Armes,

Canada.

figures

Co. and Yokohama Rubber Co.

particular reference to R. J. Rey¬

nationaliza¬

Incorporated,

Steel Companies—Outlook—Evans

149

memoranda

are

Cigarette Industry—Analysis with

Co.,

New York 6,

Montreal, Canada.

Utilities—-Discus¬

an
analysis of Canadian Pacific
6, N. Y.
analysis of Railway Company.

Japanese Market—Survey—Daiwa
Securities

First Mortgage Investors—Memo-

sis—Shearson, Hammill & Co., 14

Hydro

Place

Thursday, September 27, 1962

York

available

Also

the Govern¬

tion—Greenshields

Que.,

sion of the proposed

BE PLEASED
LITERATURE:

507

Airlines—Bulletin—Filor, Bullard Broadway,

Co., 105 West Adams

review

Quebec

WILL

FOLLOWING

THE

Wayne

—

ment Market.

AND RECOMMENDATIONS

stocks

Street, Chicago 90, 111. Also avail¬
able is

Investments—Se¬

Man

common

Inc.;

tometer;

Thomas

to r

Street, New York 4, N. Y.

alysis—Equitable

Dominion Textile

ited, 60 Yonge Street, Toronto

Harris Intertype; Kawecki
Chemical
Co.;
Goodyear; - Fire¬

Ont.,, Canada.

stone; Flying Tiger;

—McLeod,

Troster, Singer & Co.

pany,

Members New York Security Dealers Association

West,
Also

•7

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Teletype 212 571-1780; 1781; 1782

—

Memorandum

Young, Weir & Com¬

Limited,
Toronto
available

King

1,
is

Ont.,

Street,
Canada.

analysis

Noranda Mines Limited.
Duncan

Dittmar
North

Antonio

Coffee
&
St.

Co.

—

Company,
Mary's

5, Texas.

Inc.,

Street,

—

201
San

Also

Lim¬

available

analysis of Laurentide Finan-

cal Instrument.

North
—

Analysis

Brokers

American

Memorandum

Stocks,
Denver
Nunn

Inc.,

—

Casualty

Insurance

Majestic

Building,

Sincere
La

Co.—Memo¬
Co.

Incorpo-

Inc.;

Chesebrough-

Oxford Paper Com¬

ahcl Desilu.

Zale's

Jewelers—Memorandumand Company,

208 South

Chicago 4, 111.
available is a memorandum

Salle

Also

Shoe

randum—Loewi

Pcnd's
pany

Life

2, Colo.
Bush

pany;

Street,

International

Chemical.

Minerals

Volume

Number 6198

196

The Commercial and Financial Chronicle

(1301)

Steel

Production

The State of

employment.

..;■(

Bleqtrie Output

worked

Carloadings
Retail

Auto

TRADE and INDUSTRY

Price

force

Production

Index

pears,

Commodity Price Index

was

of
=^=^==^====

Business conditions

beginning

it has been every month

had

of
■

been

that

off

the

combined

Pectfd

seasonal

ap-

result

factors which

produce

jump

this

during

from

™

unex-

turn

May

had

rose

which

pace,

from

However,

the

Bank's

monthly publication Busi-

step

ob-

staged

economy

forward

earlier

"the

that

served

Review

Economic

and

ness

after

July

what

could

was

about $22 billion greater than

the

ever

end.

recovery's

resumed upward
still

The

movement, howsluggish

somewhat

ever,, is still somewhat sluggish
that

there

now

little

point to it

construction
month

seventh

though at
than

slower

rate

earlier

likely

seems

that

year

ago.

continued expansion as
last month to

Unfavorable News

great

there

economic

data for July and early

not

spell

the

end

Most

news

worrisome

was
was

the

February

strength is still quite evident, and

months.

"However, not all of the latest

economic

$0.5 billion in July from the June

pected

jump

the

favorable,
the

rate

rising

unex¬

tained

un-

for

This

four

total

August

successive

thus

small

have

drop in private expenditures
offset

increase

construction. In the

expansion

main-

was

when

was

far

which

any

began

weaknesses

developed

have

long

serious

difficulty.

Underlying

ago.

a year

sisted

public

housing

which

not

per-

enough

«In

th.

sign

and

rinmti™

Credit Expands
19

cause

the

Even

sur-

me„ts-has

g^wn

P?t0.

was

similar

has

been

less

earlier

stages

jump

sharp

New Issue

Continued

September 27, 1962

the

3% above the June level and

reversed

two

$17,200,000

decline.

month

Furthermore, the impressive rise
to

$19.7

seasonally adj usted volume
achieved

billion

new

somewhat above that

record,

the previous peak in April. Sales

Nassau

by manufacturers and wholesalers
also

were

though

up,

less
result

tacularly,

with

the

combined

sales

reached

record volume

billion,

unimpressive

the

Interest Exempt From Present

alftk es¬
after

perform*

automobile

the

which

dustry

strike

helped

settlement

about

bring

sharp jump in the July

performance. A virtual halt in the
decline

steel

output

and

tion

that

year

since 1957

will

this

exceed

will

the

m
m

first

that steel output
million tons.

100

:$$s

firming of forward; ordering gave
support to the industry's expecta¬

■

•XvX*!

"A record

received

July.

was

billion,

$33.5

But

June.

above

goods

orders
months have

durable
several

for

shown

rose

iff

significant was the 5 %

which

orders

2.5%

even more

jump

orders

new

manufacturers

Total

set in

behavior.

lackluster

$8$

$16.2 billion, durable goods orders
still below the January

are

peak

reflected

which

$16.4 billion,

possible

steel

The July result was

aided

against

hedging
strike.

by the letting of defense contracts
which

had

been

subject

September 15,1962

Due September 15,1963-91

ind.

Principal and semi-annual interest (March 15 and September 15)

major producers, while its subse¬
quent

Dated

YEAR

AND YIELDS OR PRICES

of the

one

AMOUNT DUE EACH

in¬

depressed

was

Federal and New York State Income Taxes

traceable

3.10% Bonds

£8;:;

month. Much
comparative results were

the

June

$66.5

in July

record

rather

ance

$8$

2% from June.

tablished

that

"Industrial production

County, New York

spec¬

business

all

$780,000
785,000
785*000
790,000
755,000
775,000
775,000
785,000
790,000
550,000
550,000
575,000
575,000
575,000
575,000
575,000
595,000
600,000
440,000
440,000
440,000
440,000
445,000

1963
1964

1.80

able

1.60%

1965

1.95

1966

York

pay¬

principal office of The Chase Manhattan Bank in New=

City,

2.05

1967

the

or at

the County Treasurer's office in Mineola, N. Y. ■:

2.20

1968

registrable

as to

both principal and interest.

2.30

1969

Coupon bonds in denomination of 35,000, convertible into
bonds

2.40

1970

2.50

Legal Investment for Savings Banks and Trust Funds

1971

2.60

in New York State

1972

2.65

1973

2.75

1974

2.80

1975

2.85

These Bonds, to

be issued for various purposes, in the

of counsel, will constitute valid

1976

2.90

opinion

1977

2.95

binding obligations of Nassau County, N. Y., and the

1978

3.00

1979

3.00

1982-84

1985-86

taxes

3.25

1990-91

on all
taxable by the County such ad valorem
be necessary to pay the bonds and the inter¬

3.30

may

3.20

1988-89

legally

County is authorized and required by law to levy

100
3.15%

1987

and

real property,

3.05

1980-81
@

thereon without

est

The above Bonds
and

(Accrued interest to be added)

are

limitation

offered when,

to rate or amount.

and if issued and received by

us,

subject to prior sale and approval of legality by Messrs. Reed,

Hoyt, Washburn & McCarthy, Attorneys, New York, N. Y.

some

delays in the previous month. The
pickup in
show

orders is expected

new

in factory sales

the

rise

continued

for the balance of

The Chase Manhattan Bank

year.

"The

busi¬

capital spending

nessmen's
reaffirmed

for

1961

the

year,

Harris Trust and

the

Roosevelt & Cross

this latest survey is
created

deductions against taxable
will

income

stimulative

ing.

;

begin

effect

have

American Securities

Corporation

Bacon, Whipple & Co.

Fidelity-Philadelphia Trust Company

Tilney & Company

Fahnestock & Co.

J. R. Williston & Beane

Rauscher, Pierce & Co., Inc.

such spend¬

;

."Personal income was up again,

Wm. E. Pollock & Co., Inc.

Francis I. duPont & Co.

Federation Bank and Trust Company

depreciation rules permitting

larger

Spencer Trask & Co.

capital

spending. As the year progresses
it
is even conceivable
that the
new

Reynolds & Co., Inc.

Incorporated

break might have in¬

duced business to postpone

A. C. Allyn & Co.

Hartford

break in the

uncertainty

the market

Stone&Webster Securities Corporation

The Connecticut Bank and Trust Company

reassuring for it dispels the fear
that

SavingsBank

outlay total. Com¬

ing after the sharp
stock market,

estimate

earlier

billion

$37.2

above the

survey

Smith, Barney & Co. Chemical Bank NewYork Trust Company

SS8i

plans

August

Lebenthal & Co., Inc.

cycles

°
banks in the first week of
August were $14 billion above the
1(~vel of a year ago while holdings
securities other than U. S. Gov^mrtent obligations rose $5.3
bllllon> a more than normal ex-

July volume of retail sales, which
rose

loans"
'
m

than

?ncl banks kaye therefore turned
,°
er outlets especially holdln^s 0 state and local securities
aJ? ^eal esta*e loans. Total loans

point to its impend¬

Wlhon"

bv S20

Business demand for bank
however

"
Wol

was

highly encouraging develop¬

outlook

ing demise.

ment

timing

sign of deterioration

nnc+

prisingly high unemployment rate

area,

prove

months.

peak annual rate of $62.7 billion,

economic

Bank

"Taking all sectors together, the

August

the

expenditures fell

may

definition

the

after

that of

reason

proof of a

"Construction

rather than

for 7 future

increase

unemployment.

vigorous.

which brought with

pause

termed

Still, the anual rate of $442 billion

predictions from various quar¬

ters

this

mid-August
fluke

rather than

very change either way can be exto
brighten
according
to
this year. Furthermore, the July in- week
that the unemployment pected in construction activity for
week's analysis by the First Na- crease was somewhat better than surV6y was taken. The month as the remainder of the year.
tional
Bank
of
Chicago.
The that of June's, but it was not a wbole may show a lower rate
are

in
a

contract

for

row,

been

peak.

awards

largely due to the coincidence

certain

*/2%

off

was

re-

5.8%.

rose

however,

activity

labor

the
-j

July

the previous month

current

5.3%
u

■

rate
the

July, but by mid-August

suddenly

Business Failures

low of

covery

Trade

Food

This

down

J. A. Overton & Co.

page

The Commercial and Financial Chronicle

(1302)

Thursday, September 27, 1962

;

makes

Municipal Bond Industry

(4)

Solution

York

municipal dealer probes

collective review

Mr. Weeden calls for

Mr./Weeden

financing.

notes

many

tempta¬

-••/..••A Manager's Viewpoint

•

setting

designated

credit.

By Delmont K. Pfeffer,* Senior Vice-President, and Head of Bond
Administration, The First National City Bank of. New York

V 7.'

tation to be influenced by the size
of

of, and arbitration of inequities in, procedures and

of municipal

manage¬

•

his

designation when he
/
bonds. Meanwhile, his

own

allocates

salesman is

practices which have become bewilderingly complex with the vast
expansion

with

He likewise must resist the temp¬

host of problems relating to

of interest

Municipal Syndication From

ment who must resist the

the

New

whole

tion to influence the institution in

By Alan N. Weeden,* Vice-President, Weedeti & Co., New York

municipal syndication in need of solution.

the

Designated orders create

conflict

Problems Needing

mockery

principle of priorities.

doing the best he

*/'/. syndicate practices have nof been accepted by all segments of the

nub

of municipal

the consequences

syndication

complaints,

flowing from

greater

and the rise of

many major underwriters.

the rigidity disallowing shifts in final

ing for large retail buyers to talk
only to managers, I think we are

and the lack of discretion permitted the manager or
Pleading that strong leadership be accorded to the

inviting

Pfeffer

arises from non-uniform

tion

manager's viewpoint is

application of existing practices.

presented;

dangers

divided

and the need to search for better and

recognized;

The

industry

yet—that

equitable

something

knowledge,

has

that,

my.

not occurred

with

a manager armed,

A-v"

I want these problems. .The I. B. A.

Summarizing

members

drop

who

Mr.

let

30 -years

have

always

that there is

said

form

proudly
organiza¬

might

been

committee.

manager,

curtailed earnings compel this "be done.

experience in the municipal bond

and

knowledge of pre-sale and poten¬
could sit back

issues;

new

opines that the growing burden of managing accounts and

tial orders

to handle syndicates is stressed.

ways

bidding underwriting position,

industry; that the rank and file dealers believe they have had too

;

Pfeffer

Moreover, he questions

little voice in the formulating of

existing rules; and that dissatisfac--

Mr.

democracy here

than, for example, in utility syndicates; the plethora of

With the tendency increas¬

(5)

the

points to

can

to get a larger share of the order.

new

Seeking

given

mot- industry I would like to quote an- tion more democratic than that of.
this old French proverb which I think a municipal syndicate. It is
true,
•
is
operational problems in our rolled up and workable solutions information. ;*
the manager is expected to give/
admirably
We are also inviting the possi¬
business and that we ought
to hammered into
descriptive of
a
certain amount of leadership!
shape. A good
make a
seri¬
start has been made in that direc¬ bility
of managers, armed with business: "The
but
the spirit of independence,
is

There

only

point

one

to stress here—that we have some

where

sleeves

our

ought

had

have,

they

effort

ous

out.

The

prac¬

which

They

for

and

they

nition.

question

Our business

change.

tremendously
so

subject f£L

also

are

has
past

the

grown

dozen

both in terms of vol¬

years

strained

"We have

all

take

have

that

care

mightily

have changed

concepts and

fair

of the

some

usages

used

added

ones

new

rate.

The question

meeting

and

are

and

the

briefly discuss

Let

takedown and
in

business

designated orders

1949,

still

were

unheard of. In the rapidity of the

start

salesman

point where

group.

syndicate
which

rules
The

us.

practices

and

bewilders

many

and

bothers

heated

discus¬

•

successful

issues,

designated

order

confirmed at

practice

there

net

25c

charge

per

some¬

bonds.

revenue

25c fee

all

impose this- fee

top of their regular service fee.

There are,

agers

are

of course,

this

valid arguments, both pro and

to whether these fees

are

Suffice it to

The

Yet within

have

years

Dobbin

Old

the
pro¬

to 20-

bearing five-year

cars

Wright

..from

the

motorized

kite

jets,

miles-per-hour
Titan

rockets

And in

all

mained

and

2,000

the

from

cosmonauts.

time the munici¬

that

agreement has

pal syndicate

unchanged

essentially

three times

lawyers to about

The

very

simple

The

venture.

joint

it has

continued to

and; other

volume

business^ is

tools

most impressive

sometimes have in syn¬

dicate

meetings

elsewhere,

and

rules bears

unfortunate side effects.

that they are Objected to by testimonial to the
adaptability of
many dealers who feel that they
our
syndicate contract.
J
had no voide/in their impbsiti6re. z
L'■■■;
; ■\'•.'.
v \
V'' //i>- /
Points of Friction say

For

instance:

Host

testimony to

over

our

this.

our

haps

have forgotten something

(1) Designated orders

per¬
a

priority

group sale

tices

designated is deprived

them to

them

yet

—

member not

of know¬

member

it were.

designated

the

have

failed

have

lacked

do.

because

part

both

manager

vehicle, a method,

know

that

particular account is buying. This
is valuable information.'",

take

voted to
nue

when

ago

years

fee

ment

arose.

One

large
a

deal.

a very

observed that

reve¬

manage¬

being imposed

was

that

few

group

because

competitive

guess

drop out of

account

might

You

lively discussion

the joint managers
a

price meeting was

place to discuss syndicate pro¬

cedure.

was

right

course.

But when asked where the proper

place
I.

his

was,

answer

A. Convention".was

with

laughter

than

greeted

belief.

the entire

the most

encompassing almost

municipal fraternity is

logical place to work out

Many

buyers

quickly list

(1)

few:

Allowing banks
dealer

over

bought

members

for portfolio

but

now

large

institutional

tend to restrict their

doubtful

priority

bonds

has

rule

many of
volved

have

selling

not

solved

bonds

out

price levels to managers only. At

Down

the

without

same

name

ings

not

seeking
This

they, prefer their

mentioned

avoid
a

can

vacuum.

time

the

part of

flood

meet¬

members

are

deprived of

up
so

same

information

(3)
to

practice

tion." That is,
an

can

call "escala¬

member puts in

order for himself with instruc¬

tions

(4)

Designated orders have led

the manager

designated
necessary.

to make

group

This,

net

order

course,

up
or

ask

bonds bought

can

clear

all compete on the

level?

their own.

concession

that

discussion of pre-sale busi¬
the

produce

whether this is to be allowed

and

acquire

from syndicate. Shouldn't

ness

chaos

bad! enough

(3) Some non-dealer banks,
for

©pen

unable

are

when trying to extricate Ourselves.

calls

designation.

any

leave

They

the

evpry
meeting who have not been heard
And

bearish

still

can

member-ruin

controls

years

the

give

same

issue A

have

never

of friction/ -

had

eight

Continued

have
bid
or

be¬

nine

page

great

any;

sympathy for attempts • to stand¬
ardize

these

procedural

I believe that

rul&g
fit

success,;

the "current

and

each time to

Even

not

day, and accordingly,

capital limitations

embarrassing,

thora

is how to get

effective competitive power

out of

performance

syndicate.

given

the

issues

new

any
on

likely

participant to

......

Suggested Change

Just as

;

second

long-term

ment, while seemingly
first

the

might consider the possibility

altering ■- municipal

works in the

the

offset to

the

syndicate

the

direction

agreement

capital

utility bonds;

you

public

know

that

would, be in the direction of giv¬

ing the manager,and. a. small

authority

the manager

committee,
.

fixing

the

greater

bid

and

terms of offering, and in meeting
any

unexpected developments.

this

r power

aggregate

now

engaged in municipal underwrit¬

ing-

/ More Major Underwriters
For every recognized major un¬

derwriter in the business 20 years

rated

'that

the

leaders

dozen who

means

given

any

have

group

been

relatively much smaller

in the

stakes

are

major.; This

reduced to

potential profit.

second

result

arising

from

this growth of underwriting pow¬
er

is that firms

the

second

brackets

their

they

own

are

third

direct

in which

than

regard

poor

naturally

interested in win¬

which

they

lead

and.

form

groups, -and

bid

been

participa¬

discontentedly

are

the

Which have

stepping .out

position.

they

they
an

them¬

helping the

have

what

undeservedly

These

under¬

are

standable expressions of ambition.

the

used

fact,

direction:

same

impressive

which

•

practice

The

trend

toward

smaller

ever

participations has the good result
of

enabling a great many munici¬

pal

dealers

broad

participate

spectrum of underwritings,

obtaining

the

diversification

greatest
at

the

Under these

possible'

price

modest underwriting risk.

nicipal

probably

conditions, the

market

develop-.

just mentioned,

group

challenging thought,

to,

poncon-.

those in which he has the,

selves

•/i

are

pie-,

very

drop out from the others.

ning

v//';-/

(

greatest interest and to pull back

tion

conditions/

What interests
more

working

and

support to the manager
issue. A.
/ • '

matters,

flexibility is the

be set

can

are

interested

underwriting

points

D which is selling/

during order ago, today there

The proxy problem is still
bidding, competitively for

six out-of-town members

cause

bank investment

i a d s,

syndicate

in the air. We still have five

from.

issues B, C or

dozen: other

syndicate at less than list priee.
markets

is-,

of the group

prepared

are

new

syndicate,

bid for

much

are

the myriad problems in¬

given

any

assembled to

ten

really

about syndicate rules, such

essence

still

last

sonftgj members

re-pricing procedure,
management 7 fees,
and
a
half

(2)

you

orders'- confirmations

caused

this

pre-sale orders,

binding.
.

$iat:

increase

numbers

creates, conflicts of interest,

within

treatment of designated credits,

p e r

discussion of pre-sale interest and

"The

Yet, actually, he was right again.
The I. B„ A.,

(2)

review could

I, remember

place.

Let

through which this

r ~

many other problem*

days. Meanwhile,, objections. A 90-day rule limiting
resale has usually been imposed

not notified for

have failed to

are

the firm handling the order and

Cites ''Drop Out" ♦ Experience
we

is sometimes

Many

relating to municipal syndication
that we have not solved £3 yet.

constantly

apart

This

subject ing the name of the account that
constructive review. Pick brought group bonds, and even a

ought

and efficient

given

that is, they are

—

—that in order to keep our prac¬

fair, workable

are

argue

There

I think

growth

and

Unresolved

»Problems

•

of- Other

-■//;'

fact
ade¬

sions

itself

trate

it is legally

new! issues»

enough: capital

7/:;/ //" /;• / /

within the

sues

cause

mtitrieipal .syndicate \

than

quate'despite, amazing changes in
our

embarrassment

many

tremendous

volume

words.

many

the

re¬

content, although stretched by the

that

man-;

perversely .7,at-,

Conflicts of Interest

don't feel

you

Brothers'

: form

controversy. There

justfiably charged.
-

look.

warranties,

know

wish here to get

into

foot motor

many man¬

who pharge no fee at all.

have

ther

for

sometimes

are

Some

power. /•.

gressed from
•

syndicate

are.

mere

Delmont K. Pfeffer

service ror/ County Fair's baloon ascension to

usually

managers

con, as

drug products,

some

higher

support designated orders in the¬
ory but like

fee,

time"

now

think * probably

based

at least one .or two

large group buy¬
seldom

revenue

for clearing designated orders and

who" devotes

very

Icharge;

Most

The practice has grown to the

er.

ated

structure

housing

times

of these

some

with

and effort to the

any

complicated

clearance

designed to compensate

was

growth since then, we have cre¬
a

presently charge a man-

the

woes

assure

span

ex-,

ex¬

frustration.

richesh-tob

and

ones/
young

ancient

contro¬

bond, although the rate is

to enumerate

now

most

our

percentage, of gross spread

problems I have alluded to.

still extant when I the

was

into

came

one

agement fee

orders; This practice' originated in

the

mind

too.

competitive

Turks,-once,

compensated by

of fees

sort

managers

Spells Out the Problems

I would like

w e r e

whether manage¬

tributable

than the

Perhaps"

versial unsolved. problems.; Some

the .early dealer housing accounts
Bear

should

ment

managers
•

Competitive

the

joint

Many

agers'

goes

producing

even

Awards

perience

jate

p p r e c

frequently

treme

here will

men

exhaust

means

Management Fees

here at this Conference.

fearful

come

Tot jof' other people who

do 4

bers

Per¬

younger

pressing

among municipal syndicate mem¬

haps the older

able for this presentation is short.

issues; I think

new

some

e."

s a m

that

only

problems. I would venture that

governed by, discarded a few

and

list

deals

has

ignated orders but the time avail¬

involving local

one

advertising of
lye

of this growth. In doing

The

underwritten and personnel.

ume

date

technically

dis¬

been

subcommittee.

subject to in¬ before

interpretation and defi¬
They

This

some

tradition. They are
dividual

year's

the problems connected with des¬

member of this

which

orders

our prac-,

have

di-7

not

hoped

have

should be group orders.

air

operations

many

far

appointed. I

place

thorough review of

tices.
Alan N. Weeden

are

passed

against

that this would provide a vehicle

our

minds

meeting of

syndicate

formed,

was

ex-

only

are

they

vulged to the account, bidding for'' changes
th e
and taking down bonds pre-sale, more it is the

con¬

when the IBA subcom¬

ago

mittee

writ¬

ten.

road. But

years

business

not

meeting

size

year's

problems, not to solve them. Three

municipal

are

this

and

this

operate in the
bond

last

the right

under

tices

Forum

vention

The

information

tion.

them

work

mu¬

gains

Number 6198

196

Volume

stability through the many inter¬
relationships
reduce

that

ests

the

Municipal Bonds

whole

powerful

few

inter-

without considering the ef¬

cases

participations

fect upon their own

this sense,

the trend toward frac-

conceived, t

the

and to inform the

•

into

tor

ing

the

other hand,

The

the nucleus for the

:..AA

■-

The ads

Advertising Kit containing

advertising, the

Municipal

make

available

C.,

Street, Washing¬
Attention: Special

for

Public

Education

Municipal Securities.

Securities

the

series
in

use

Dominick Firm

news¬

magazines for $25. It
should be understood that the ads
are available to all
members, large

small.

Those who have not

To Admit Two
.Dominick

re¬

ceived page; proofs- of the- ads and

would- like

obtain

designed in such a
manner that they can be adapted
to include specific services and
.

12 advertisements was introduced

the

from

municipal bonds to individuals.

serve as

Thirteenth

Committee

papers and

expand his municipal bond market
and to

t•'

Fractionalization

him

field

reproducible mats for

develop¬

enable

the

425

ton 4,

Special Committee for Public Ed¬
will

development of his; own advertis¬
ing program at minimum expense.

members a series of
advertisements promoting the sale

Unnecessary

program

To minimize the individ¬

ucation

to be

able to its

Effect

Adverse

are

municipal bonds.
the kit was prepared to
>

assist the small dealer in

only

desired.

potential inves¬
purpose of and the

the

v/-•; Basically,
Asso¬

ual dealer cost-in his first venture

found

Investment Bankers

facilities of the individual firm if

The ads are de¬
signed to attract the attention of
.

ciation of America has made avail¬

tionmng participations is soundly
■;

Municipal Conference

held in Chicago.

The Special Committee for Public
Education on Municipal Securities^

accounts. In

in several other open

(1303)

investment features that

To Individuals

isolated

act

free

were

at the First

damage

the

might. result. to

market
v

exposure

The Commercial and Financial Chronicle

How to Market

which

accounts,

are

by.

review

same-

writing

Bankers

the

Association

Wall

Oct.

will

Exchange,

'admit- Peter

Kennedy and George A. Wadelton

Investment

Dominick,

of the New York Stock

may

sample kit free of charge

Street, New. York City, members

America,

partnership.

viewpoint of the manager, an un¬

derwriting

which

group -

vj •'

fji-:

| 1
p;

great number

their

for

physical under¬

through the sheer
taking of reaching
of members

un¬

problems

management

many

creates

fractionized

necessarily

views, re¬

porting the bid to those who can¬
not attend

the final

receiving

subscaptions, r making.

and confirming
mention,

meeting, and
<

allotments, not to
subsequent

the

book-

observer

would

keeping.

unbiased

that -prob- ii!
growth in volume and in
conclude

reasonably

lems

competitive

could ' easily

power

be met by

;

•>*

;

organizing and recon-

stituting historical syndicates, but

fact

.v.

could

nothing

difficult.

Since there

I %

•

Manager's Plight

The

ii-.... ;"

are

man¬

many

in the business today, per¬

agers

haps it is in order to shed a tear
for the

•

use

manager^ plight He must

THE LATEST STUDY BY THE GRADUATE

t~4

great foresight M taking par¬

ticipants- into his accounts, because
once

inalienable

The

right.

fail

homework,- and
in

ceed

the

other

the

admission

NEW YORK

■'

UNIVERSITY

Bulletin No. 21

-•

•••••

■

suc¬

,3v<-

;;v

■•.

-t;

■

participation,

his

try to drop

■AA:

pride is outraged. On

hand,

this

never

manager

him and his

meeting;

may

selling

let

the

SCHOOL OF BUSINESS ADMINISTRATION

his

send

may

consistently

may

I'-J

participant
assistant

third

but

\ y

in, membership becomes an

;

timely discussion of the problems

applicant for

now
facing the dollar

expect the

appears

;

the International

to manufacture bonds or

manager

drop old members so he can have
•

he wants.

human

normal
;

this

all

Again,

the position

the participation and

;

behavior,, but. the

have

combination of the factors I

mentioned, plus disputes over pro*

matters, will. very

A cedural

quently

tie

series

of. Gordian

its competitive power and

give the manager fits of frustra¬

What

a a;.y•

need

the

appreciation
ties

duties

and

manager,

lifting

of the

customs
upon

•*;

-..Sj■' r>■*.

The United States in

Causes of the Balance of

i'.i

•

.Internal

Measures

Strengthen fhe Dolfar y'

toward

which

the

•:

<•

Solution of the Dollar Problem

new
it'.

YO*«

U*IV*""T*

'•it

impose

now

his effectiveness and his in¬

centives.

The Future

Prescription

for

:•

have

you

everybody

have

own

pet version of the

prescription for happier managers

of this bulletin,, reprinted with permission of

Graduate

School

Business

Administration

?.'•> I

JOSEPH H. TAGOART, O.nc/or

■:

MARCUS NABLER. Rtl*lrO O'Kltf

else,

A copy
the

undoubtedly

guessed,

of the Dollar

Successful

Syndicates

and

Payments Deficits'

■n'.A

fit

move

trade

The Position of the Dollar

•

y'^^v

Changing World Economy

III
'

by- the

limitations

responsibili¬

accepted

and some

the

little

•^

•

.v
.

cramp

tion'. v'•*^.*.

til

which

knots

;

lit

fre¬

up--in

syndicate

Covering:

perfectly

V:A

New York

University, will.be sent to

you on

request.

successful syndicates.

First, I suggest that managers be
regarded

tentioned

until

honest

well-in¬

and

C. a.

proved otherwise.

DEVBNE & CO.

Now, Alan Weeden has brought
pretty

some

against

indictments

serious

managers,

and

one

ranted

by actual experience.

them

war¬

But

there is always another side to it,
and

there

should

consideration
issue

always be
the

I i

New York 5f N. Y.

probably

each

48 Wall Street

fact

some

that

Chicago X'v

•

Cleveland

•

Boston
.

Philadelphia

Cincinnati

•

St. Louis

Direct Wires to all Offices

Washington.
•

•

Pittsburgh
r

San Francisco

an
-

not

immediately * successful'

really requires
-

some

management

Continued

page

ill

The Commercial and Financial Chronicle

and of their

Issues

Research and Analysis, Municipal
Department, Ira Haupt & Co., New York City

Bond

investment quality well
investors. Mr. Duben
sets forth the reasons, for the benefit of the latter, for the high
regard held for the Island's bonds, besides the double income tax
:exemption feature, not least of which are; (t) the stringent built-in f
protection standards equally applicable to smaller bonds with
strange names as to the readily identifiable larger ones; (2) market¬
ability reflecting nationwide primary distribution and secondary
market liquidity created
by certain underwriters and brokers} '
and (3) substantial economic progress made and further growth
expected for the Commonwealth. At present there are $250 million
of Commonwealth and municipal tax-supported bonds outstanding as

bonds

Rican

concerted

from

Federal

the social and
its people

to improve

from

income

future

economic

through a pro-

in¬

gram

dustrializa¬
A

tion.

pres¬

ent

the

review

results

this

Root

s c

i g n i

short

initial

of
Ernest C. Duben

income

product has in¬

by gross

electric power pro¬
1,278%; school
enrollment has
increased 112%
land human life expectancy is up
52%.
Other economic and social
creased 524%,

duction has soared

similarly progres¬
primarily agricul¬
economy
has
been
sup¬

indicators

are

sive. The once
tural

planted by a diversification in
which agriculture expanded pro¬
ductivity
but was nevertheless
surpassed 60% by manufacturing
as a source of income.
Such di¬
versification extends into industry

approximately 800 mod¬

wherein

plants produce a wide range

ern

electronic

petrochemical,

food,

apparel,

and

products—

other

powerful surge forward
the 96 plants existing in

truly,

from

1950.

The development of such eco¬

growth was immeasurably

nomic

of acquisition,
improvement of

aided by programs

and

construction
electric

many

measure,

case

bor¬

other

not
of

efforts

familiar,
Puerto

the

Rican

systems,

supply

power

highways, airports, seaports, water
and sewer systems, schools, health
centers, and police and fire pro¬
tection facilities financed by the
Commonwealth Government, the

endeavor to keep apace with

industrial

other

and

eco¬

growth but also of realistic
preplanning to provide for future
growth and need. As in continen¬

nomic

tal United States communities ex¬

periencing

growth,

rapid

Puerto

fi¬
nanced major public works, util¬
ities and other governmental cap¬
units

Rican

government

ital

improvement
programs
through
borrowing
secured by
bonds
issued
by the respective
borrowing units of government.
Of
to

than

the

matter

passing

interest

taxpaying investor
of

tax

free

the

interest

ob¬

tained from the bonds. With

entry
and

Statehood

into

Alaska,

issued

unique

the

Puerto

Rico

Water

Re¬

distinction

Rico

revenues

cludes

short

indebtedness

term

ex¬

governmental

debt.

the

investment

the

Common¬

available

Government

super¬

America's public utility

approved by the Commonwealth's

Lloyd S. Coughtry (left), partner in charge of research at Bear,

Computers

now

are

Governor and the Commonwealth's

Stearns & Co., New
new

Treasury levies
and collects all municipal taxes
and
segregates
therefrom
the
amounts required to pay the re¬
spective municipal bonds.
Such
management enables Puerto Ri¬
can officials to
note that, in the
history

wealth

and

of
its

the

Common¬

being

employed

record

unique

companies, it is announced.

highly

and

with

Mrs.

Rita

Photo shows

York City, pointing to item in Bear, Stearns'

"Electric Utility Earnings

Projections, 1962-1965" in discussion
Allatta, utility analyst. The

Singer and Philip

report represents the end product of the new computer program
which; utilizing 200

items for each of the nearly one hundred

utility companies, provides projections of earninys in 30 minutes
contrasted with about 200 man-hours previously required for cal¬
culating such earnings.

municipalities,

agencies, public authorities and
other political subdivisions, there
is

sophisticated form to calculate future common stock earnings of

Secretary of the

default

quency

payment

Forthcoming

new

delin¬

3 7F)I7P

—:—

r-.

-.."'i;

'.v

•'

the

can

be said to excel in its "follow-*

through" with its supply of a
variety of informational literature
enables

bondholders

not

held.

in¬

investors

and

stance of Puerto Rican bonds, suc¬
cessful
marketing
is
generally

welcome

personal

matter

portfolios
of

accident.

usually
In

the

attributable to:

(1) The sound management of
Commonwealth public finances,

(2) The financial leadership of
Government Develop ment
Bank for Puerto Rico, and
the

and

specifically attributable to

well

are

appointing, during the period fol¬
lowing bond issuance the Bank

tutional
a

issues

described'. But, in an area wherein
some mainland issuers prove dis¬

bond analysts

(3) The primary and secondary

being

the

municipal fiscal matters to
an
extent
largely unknown
in
mainland
practice.
Municipal
ordinances creating debt must be

community
well knows, such good reception
by professional buyers for insti¬

market created by certain under¬
writers and brokers,

gen¬

placed

vises

which

the

have

are

Fund

monwealth

to maintain

and

scrutiny of financial and economic
which

factors

affect

may

invaluable

aid

bonds

local

underwriters is

touch

the

demon¬

strated by the New York office of
the Bank in its willingness and

ability to

ana supply in¬
reply to requests.

prepare

formation

The Underwriters and Dealers

comparatively small number

of Wall Street investment banking

houses

were

veloping

instrumental

the

present

de¬

nationwide

market

for Puerto Rican

mental

bonds.

with bond

the

the favorable financial character¬

located

only bonds currently being issued

istics of each of the bond issuing

effort

aforementioned

Hawaii

governmental bonds

Puerto

Commonwealth's

the

special sources Authority, the largest of
such public authorities and cor¬
purpose public corporations and
public authorities. Much of such porations, but not including public
All of the
financing was not only the result housing authorities.
actual

right, to

;

the

and

municipalities

government
with the
levy ad valorem taxes
and there is, therefore, no other
overlapping ad valorem taxation
or
overlapping bonded indebted¬
ness payable from such taxation.
units

investing ^public. (with the. r*p?bqn areas ,are ;tp£ ;iqnly joqal
principal
subdivisions
and
are
complished. With the passage of or of interest on any bonds, nor qualities of the initially little- political
known bonds. Today at least two similar to county forms on the
time and the emergence of large
has
there
been
any
forced or nationwide
T h e
Commonwealth
underwriting
syndi¬ mainland.
bond issues, an interest in such contrived
refunding of maturing
assumes
responsi¬
cates are available to underwrite Government
income tax exempt Puerto Rican bonds to avoid default.
Puerto Rican bonds and provide bility for a number of important
bond
issuance
was
ere a ted
the
comprehensive
distribution functions normally performed by
Government Development Bank
through the efforts of Puerto Ri¬
local
which most bond issuers desire.
governments in the con¬
can officials and
the investment
The Government Development
tinental
United
States.
Among
banking community.
Today the Bank, established in 1942 to pro¬
After the success of initial ef¬
these are police and fire protec¬
confidence on the part of inves¬ vide
mediumand
long-range forts in marketing such new is¬
tion, education, all major-, street
tors in the economic and political credit for industrial and other
sues, to create necessary fluidity
and
highway construction,£C£hd
future of Puerto Rico is apparent
projectsi unable to be financed a secondary market was created
by the amount of such public fi¬ through commercial bank chan¬ to buy and sell bonds held by public health programs. In Addi¬
tion, the Commonwealth and mu¬
nancing
successfully
completed nels, has contributed vital finan¬ bondholders. Although a signifi¬
nicipal governments are relieved,
since the initial efforts of two cial services in
the development cant amount of bonds are held by
by the Water Resources Authority
decades ago and by the institu¬ of Puerto Rican
growth. In 1945 institutional investors who, as a
and the Aqueduct and Sewer Au¬
tional
demand
for
such
bonds the Bank was
given the respon¬ class, generally purchase bonds to
thority, of most of the respon¬
evidenced
by interest so broad sibility of acting as fiscal
(or retain them over long periods of
sibility for constructing and fi¬
that, of late, certain new bond is¬ borrowing) agent for the Com¬
time, there are certain individual
nancing electric, water and sewer
sues are being placed by the un¬
monwealth arid all public bodies investors
and
institutional
in¬
systems.
The bonded debts of
derwriters in a matter of hours in Puerto Rico. It
need
for a
provides tech¬ vestors who have
on
the day of purchase.
As of nical assistance to borrowers and secondary market outlet. An illus¬ thfese two public authorities' are
supported entirely by revenues
early 1962, slightly more than coordinates
and
executes
their tration being the contrast between
derived from their respective op$250
million
of
tax - supported borrowing
operation. The Bank casualty
insurance
companies, erations.
gross bonded indebtedness of the
provides close liaison with the in¬ which require some fluidity to
Commonwealth and its munici¬ vestment
community on the main¬ pay large unexpected losses, and Security—Commonwealth Bonds
palities was outstanding. In addi- land. and maintains offices in Wall life insurance companies, which,
dition
The bonds issued by the Com¬
to
such
tax - supported
as
a
Street, New York.
rule, can plan their payout
bonded
monwealth are general obligations
indebtedness,
approxi¬
according
to
experience
and
Much
credit
to
the
present
mately $330 million of revenuemortality tables. Fluidity through bearing its full faith and credit
supported gross bonded indebted¬ popularity of Puerto Rican tax a
secondary market is a necessary pledge. Pursiiant to Article VI,
exempt bonds may be ascribed to
ness
of
Section 8, of the Constitution; the
public
authorities
and
ingredient and is present in that
Bank's
vigorous
efforts
to
corporations is outstanding, in¬ the
the houses creating such Puerto principal of and interest on the
cluding approximately $250 mil¬ supply information to potential Rican market are
always eager public debt of the Commonwealth
lion of gross bonded indebtedness purchasers
and to bondholders.
constitute a first charge on all
to make a bid for bonds held.

bond issuance left much to be ac¬

past 20
years,
Puerto
measure

states,

with which the investment

community

the

Rico's

the

rowers

In the

span

bonds
a

and its municipalities are the only

credit

f i cant

success.

and

taxes
all

practices.

Government

debt service on bonds. No
pledges of general revenues are
made to special funds. The Com¬

markets,

measure

and

to pay

im¬
marketability in secondary

proves

t ion
trap"

o ses

the

enhance

taxpayers and, in

"O p e r a
d i

taxes

forms

Commonwealth

wealth Treasury and are

including their subdivisions and
municipalities, except estate, in¬
heritance and gift taxes.
In ad¬
dition,
Puerto Rican bonds are
exempt from
income taxes in
Puerto Rico. This exemption from
double and triple income taxation
does

program

known

income

various

The

General

with the interest thereon exempt

Commonwealth

the

Puerto Rico initiated a

Other Indicators of soiind pub¬
lic debt management are present

eral

to respond to Puerto
they become better known and understood.

liilllli

•

All

carefully issued and scrupulously backed

investors are expected

Individual

for such year.

revenues

by all of the Island's general revenues. To date there has been neither
default nor delinquency nor forced or contrived refunding to avoid
default.

for

revenue-supported indebtedness of public au¬

million

$330

Calculate

appropriation for each fiscal year
may
not exceed total estimated

institutional but not to individual

thorities and corporations

effort

Thursday, September 27, 1962

government and is reflected in
provisions, of the Commonwealth
Constitution which prescribe that

enjoy an enviable, high

Puerto Rican bonds

known

1940

Public Utility Prospects

of
a
balanced
current operations is
regarded as a cardinal feature of
Puerto Rico's basic philosophy of
concept

budget

Manager of

Ernest C. Duben,

use Computers to

Sound Governmental Management
The

Puerto Rican Bond

bonds.

respective

Investment Qualities

well

(1304)

financial

was

govern¬

Utilizing contracts
dealers in strategically
centers, much
expended to acquaint

revenues

The Commonwealth Government

By means of the Organic Act
Rico, in 1917 the United
States granted American citizen¬
ship to the people of Puerto Rico.
of Puerto

the

Commonwealth.

The Constitution also authorizes
suit against the Secretary of the

Treasury

fails

comply

with the first charge on revenues

provision of said Section 8. Sig¬
nificantly, the State of New York
makes a similar provision for its
proved a law enabling the people
Generally, part of
of Puerto Rico to draft their own bondholders.
the
importance stems from the
constitution. The Constitution was
drafted and approved by Congress legal inability of suit by bond¬
holders against a state which has
and the President of the United
not granted permission to be sued.
States and become effective upon

1950

the

Congress

ap¬

proclamation of the Governor of
on July 25, 1952. The
Constitution
recognizes and as¬
sures
a
separation
of
powers

Puerto Rico

the executive, legislative,
judicial branches. Both the

All

general
deposited in the
and

Commonwealth

revenues

are

General Fund of the Treasury

the

general

obligation bonds are

among

payable therefrom. Property taxes
presently
amount
to
approxi¬
Governor and the bicameral leg¬
mately ,6% cf total Commonwealth
islature
are
subject to
regular revenues and,
as
a
matter of
election every four years.
policy, the Secretary of the Treas¬

and

responsibilities ury applies the proceeds of
Commonwealth property taxes to the bond interest
are
redemption
accounts. Such
those normally, and
assumed
by a state government redemption accounts, as of Oct.
in Hawaii, Alaska or continental 31, 1961, amounted to $22,307,224
United
States.
Municipalities or 1.4 times debt service for fis¬
which
combine
both
rural
and cal 1961-62. In addition, to insure
Governmental

assumed"*

by the
greater than

Volume

that

revenues

196

Number 6198

available

are

for

the

payment of bonds, provision
made
in each act authorizing

the issuance of bonds for the levy
of • an unlimited ad valorem tax
on

not

all personal and real property
otherwise tax exempt if suf¬

ficient

funds

otherwise

not

are

The Commercial and Financial Chronicle

pality

pledged.

contrast

the Commonwealth, the income of
the 76 municipalities

^eisting in

Puerto

the

amount equal to

between

5%, in the case of the
municipalities, and 10%,
the case of the larger munici¬

palities,

assessed

Sued if the maximum

valuations.

The

Commonwealth

substantial

exercises

calibre

individual

The

payment of.

each

principal; and interest thereon in municipality's bonds must be es¬
15% tablished by research applicable
the;' to the particular municipality's re¬
Commonwealth, averaged for the sources and economic outlook. The
last two fiscal years. Revenues for larger municipalities such as San

any ffsrial year; shaU exqeedt
of vthe i annual^ revenues < of

this purpose are defined as those
which are raised under the pro-

Juan,

visions of Commonwealth

investors. Other

legisla¬

Ponce

i n

th e t w o years next
preceding. Certain revenues, such
excise taxes

the

ments,

offshore ship¬

Customs,

which

are

Treasury,

cluded

the

for

pur¬

of calculating the debt limit,
although they are available, once
received, for the payment of debt

pose

service. This particular debc limi¬
tation is appreciated from a busi¬
nessman's

viewpoint since it is
related to the ability to pay debt
service

and

based

actual

received.

and

earned

revenues

Security—Municipality Bonds
The bonds issued by

the munici¬
general
obligations,
for the payment of which the full
palities

same

basis

No.

with

obligations of Puerto Rico,
political subdivisions, and its
public authorities have been con¬
sidered to be of the highest in¬
vestment quality. It is appropriate
that Puerto Rico, for the purposes
of fiduciary
investments, should

Resources

Authority,

which

body

be treated the

underwriting

United

the

distributes
the

sells

and

electric

Authority but neverthe¬
continuing to grow, include
Aqueriuct
and
Sewer
Au¬

the

thority,

Ports Authority and
Development Co.

the

the Industrial
Each

separate

authority

must

judged by the many factors
corrmonly
utilized
to
evaluate
this
particular form of govern¬
mental
body, including
historic
and estimated future growth and
revenues. The institutional buyer,
being a professional competently
and dispassionately able to evalu¬
ate and compare revenue bonds
of issuers located throughout the
nation, is responsible for much of
the response to
recent sales of
Puerto

new

Rican

sues.

Future

authority

•

is¬

from

the

already

economic

achieved,

economists and other social scien¬
tists

foresee

significant further
growth,. Incentives, such as initial
income tax

and

property tax ex¬
emptions, assistance in recruiting
and

cal

Bank

pany.

New

and The. First

poration

are

Trust

Com¬

Smith,

Boston. Corr,

joint managers of
group

Popular de Puerto Rico;

Brothers; C. J. Devine &

Co.; B. J. Van Ingen & Co., Inc.;

Bank, Chemi¬

York

which

Kuhn,

Lynch,
Inc.;

This is not

revenues

San

Smith

National

Bank; Mercantile Trust Co.; Con¬

fully

set

Loeb, Rhoades & Co.

offer to buyt

forth in the Prospectus.

The several Underwriters have agreed,

purchase

Copies of the Prospectus may be obtained only from, such of the undersigned
are registered or licensed dealers or brokers in securities in this State.

new

Blyth & Co., Inc.

Rico.

activities, such

continue

expected

and, with continued

posure

Puerto

bonds

the

Rican

become

derstood.

investing

bonds

better

are

known

Merrill

Lynch, Pierce, Fenner & Smith

ex¬

Incorporated

Stone & Webster Securities

expected

Elworthy & Co.

One segment

of the in¬
considerably un¬
initiated
in
purchasing
Puerto
Rican
bonds, as yet, is the in¬
investor

but,

First California Company

[

investors

will

issued

Shuman, Agnew & Co.

Incorporated

also

Walston & Co., Inc.

William R. Staats & Co.

Bateman, Eichler & Co.

re¬

Hill Richards & Co.

Hemphill, Noyes & Co.

Crowell, Weedon & Co.

Incorporated

of the recently-

case

Puerto

Schwabacher & Co.

Mitchum, Jones & Templeton

spond. Incentive for such response
may be the tax
exemption fea¬
tures. In the

Lester, Ryons & Co.

(Incorporated)

publicity develops, it is felt that
individual

Corporation

un¬

vestment public

dividual

'-Y

Smith, Barney & Co.

Incorporated

public,
and

Ripley & Co.

Incorporated

mental
suance

Y.v Y

Harriman

Dean Witter & Co.

tourism, are evolving. Govern¬
borrowing
through
is¬

subject to certain conditions, to
unsubscribed shares and, during and rafter the subscription
offer shares of Common Stock as set forth in the Prospectus.

any

may

Rico

Water

E. F. Hutton &

Re¬

Brush, Slocumb & Co. Inc.

Company Inc.

Authority, Electric Reve¬

sources

Bonds

(Series

1962-Refund-

Shearson, Hammill & Co.

F. S. Moseley & Co.

Francis I. duPont & Co.

maturing

amounts

from

by
an

en¬

1964

cesignated
1988, in¬

Wagenseller & Durst, Inc.

clusive, and rated "A" by Moody's,
for

example,

the

19Q9

ty'ir,

■;

■•'.

J. Barth & Co.

Weeden & Co.
■

Incorporated

Blair & Co.
Incorporated

Bingham, Walter & Hurry, Inc.

maturity

priced by the underwriter to
yield 3V2% tax free. In order to
obtain

yield

payment
an

comparable

from

taxable

bond

taxable

have

Davis, Skaggs & Co.

tax-free

bond

Evans, MacCormack & Co., Inc.

Dempsey-Tegeler & Co., Inc.

after

income

taxes,
individual in the following in¬
S.

income
hold

J. A. Hogle & Co.

Fairman & Co.

brackets
taxable

yielding, before taxation,

Irving Lundborg & Co.

follows:

Sutro & Co.

Exempt Authority
Bond Yield

Tax Rate

Free Return, Taxable

Mason Brothers

Birr, Wilson & Co., Inc.

Hooker & Fay, Inc.

Stern, Frank, Meyer & Fox

H. M. Byllesby and Company
(Incorporated)

Maxfield H. Friedman

Pacific Northwest Company

38%

3.50%

16M

3.50

Wulff, Hansen & Co.

5.65%

14M-

Boettcher and Company

6.60

22M

32M-

38M

90M-100M

3.50

state

mu-

nicipality, savings increase because
bond

taxation.

10.00

3.50

addition, if the individual has

exemption

Fleet & Co.

7.95

3.50

Rican governmental securities, we
note the remarks of the Governor

the

State

New

York

Lawson, Levy,

Daniel Reeves & Co.

26.92

who,

September 25, 1962.

William J. Collins & Co.

Williams & Stern

Morgan & Co.

Stephenson, Leydecker & Co.

Stewart, Eubanks, Meyerson & Co.

For a closing example of recent
recognition * granted
to
Puerto

;

J. S. Strauss & Co.

Eond Must Yield

12M

20M-

►

was

Cruttenden, Podesta & Miller

Trust Co. of Chicago; and Carl M.

Rights, evidenced by Subscription Warrants, to subscribe for these shares at
$31 per share have been issued by the Company to holders of its Common
Stock of record September 20, 1962, which rights expire October 10,1962, as

period,

locate

Puerto

$10M-

such

Philadelphia

$10 Par Value

Merrill

435,019

New commercial

Income

Income Brackets

from

Co.;

Common Stock

1961

industry

courage

plants

Rican

The

Fenner..&

Diego Gas & Electric Company

Au¬

Equivalent Tax
Individual Taxable

Puerto

Blyth

tinental Illinois National Bank

To Provide

Co.;

Puerto

the

314,853

dividual

buildings financed
governmental
agencies,
and
ideal
climate, continue to

taxed

Loeb

Pierce,

offering of these shares for sale, or an offer to buy, or a solicitation of
any of such shares. The offering is made only by the Prospectus.

payable solely

are

1956

would

factory

c>.'uu.-i

Los

income

Barney

WlC.,

only

size only by the City
Angeles Department
of
Water and Power, and possessing
of

training employees, technical
advice, the construction and lease

under¬

Aspects T':A,''-TT ing*), dated July 1, 1-962, issued" as*5

substantial

expansion

First National City

state

ceeded

serials

from

the

Banco

these bills

thority's electric system. The Au¬
thority is recognized to be an out¬
standing
publicly
owned
inte¬
grated distributor of electric
energy in the United States, ex¬

nue

•

Although Puerto Rico has bene¬
fited

States.

any

Not

45,303,522

au¬

500,000 Shares

99%

over

consumed

Rico. Its bonds

124,959

sources

less

same

$286,428,099

companies,
much
smaller in size than the Water Re¬

members

Lehman

Sept.
26
purchased
$30,000,000
provide sound in¬ Commonwealth of Puerto Rico
vestment opportunities for fidu¬
Public Improvement bonds, due
ciaries, but they will also assist
1, 1964 to 1986, inclusive.
and give deserved recognition to July
the
Commonwealth
of
Puerto The group bid 100.0867 on couwill

a
public
transmits,

produces,

are

according

25,215,538

and

of 99Yz,

the island-wide Puerto Rico Water

$146,838,595

[i Other Puerto Rican public
thorities

price

maturity.
Other

To Investors

Bonds

authority

5,764,058

of Customers

Issue Offered

"The

situations
of
good security.

$34,479,626

Plant__

its

largest puoiic

1946

Utility

dollar

bonds

1.85% out to

municipalities, al¬

Security—Authority

are

Electric Revenues

the

writing group include:

faith, credit and unlimited taxing an impressive history of growth,
power of the respective muiiici- partly illustrated by the following:

Net

reoffering,

present

good yield

The

lrtl

scaled to yield from

Puerto Rico Bond

permitted with respect to ob¬
ligations of States and their sub¬
divisions, stated:

of 3.2660% to the Commonwealth.
On

investments

such

and

3y4%

3%,

net interest cost

may

names

similarly

4V4%,

pons

ecJ,1]0nfnc residents."
fh,Pmar' 3.40%, setting
for its

ob¬

are

<represent
the uninitiated
and issue small amounts of bonds,

in¬

not

are

revenues

Mayaguez are
popular among

and

they

strange

collected by the U:. S. Government
arid returned to the Common¬
wealth

and

well-known

tion^ and deposited into its Treas¬ though
ury

progress

to invest trust funds

property

supervision
and control over municipal fiscal
limitation
regarded - as being
matt e r s
and,
therefore,
all
realistic. Specifically, it: provides
that
directiobligations of the, property tax collections and debt
service
funds 'arid*' Administered
Commonwealth evidenced by full
faith and credit bonds and notes directly by the Secretary of the
of the Commonwealth shall be is* Treasury of Puerto Rico. x\ ; *
Constitutional

State

—

established at

A limitation on incurring pub¬
lic debt is important from a bond¬
holder's viewpoint and the Com¬
a

Rico in its dynamic efforts to ad-

predominantly ob¬ ligations of the Commonwealth,
property taxes and its municipalities, and its revenues
applicable debt limitation is
supported authorities on the

smaller

has

approving legislation permit¬
ting
fiduciaries
in
New
York

from

available.

monwealth

Rico is

tained

(1305)

C. N. White & Co.

Chronicle

The Commercial and Financial
14

tralizing trie effects of hot

Maudling Plan Seeks More

Liquidity Sans Devaluation
\A'

By Paul Einzig

behind the recent spate

need to neutralize hot money movements but avers A'
questions as to 4he advisability of allowing, as - •

unquestioned

Whether

the

tended

balances

'of

serious

are

true

was

across

come

British

brains have been

preoc¬

cupied with an attempt to devise
for increasing

means

Plan, the Bernstein Plan,

Stamp Plan, the Zolotas Plan

the
and

few

the

which

Maulding

being

Plan

distinc¬

additional

the

has

tion

Now we

plans.

other

also

have-

of¬

forward

put

ficially if tentatively by a Chan¬
in office.

cellor of the Exchequer
It? substance is that

■

hold

of the

International Monetary Fund until
the
their

the

details.

For

only

indicate

that

those

A It

is, of

Mr.

Macmillan himself is

well known that

course,

pansionist.

But

his

•

liquidity

two
'■

;■

ally under the.old- gold standard.
The

States with

have

number of countries

international

sources

monetary

meet

Mr. Maudling's plan seems to in-"
dieate that he is in favor of

over

present require¬

known

opposed to

devices.

Britain

tradition

therefore,

seems,

pursuing

paving

the

result

basic

Y A Imbalances

•>"'

really

in¬

inclined

are

recent

balances

to: assume,

sible

Per

Jacobsson,

Administration....

surY

extension,

would

of the disturbing

hot

take

behalf

two

would

elimination

the

*«

A A,

the

strangely

pleasant

for them* to

have

been

arid for

people

Kennedy has

his

been

has

this

issue—

During th

good, reason!
of

administration,

avoid

doing so, but the price has ■76,900 new employees were added
to be paid sooner or later. Nor is to the Federal payroll, and pres¬

While there

opinions about the

certain

will be
the

'deficit

any

convenient

that

means

relation

pay

the

P.-

the

'sixties

than

additional

100,000 workers by July 1/1963.
,

plans* calf for;

ent

At last count 2 million civilians

held

jobs in the various

ment

departments,

govern¬

bringing

the

additional payroll to the $1.4 bil¬

his

announcement

is neither

ofjer

The

sell

nor a

solicitation of

offer

buy

any

Even

offer is made only by the Prospectus.

though President Kennedy

has chosen to overlook these facts,
a

September 21, 1962

NEW ISSUE

few members

are

aware

his

party

own

thrown

will pick

people and let the others

own

where.

some- A

a. corner

That is what makes these

agencies

grow

ought to be

some

complained

Brinorig'

government

employed AY. whenagreat

num¬

ber of people are-brought'into the

Civil

Service;

•

they" frequently,

owes

them

their

lives.

job for»the 'rest of

After

little

ity has been built up,

senior¬

feeling of

relaxation often sets in, and little
effort is made to

checks."

•

AIri my
of

20%

pay

engaged in

could be saved

money

eliminating

Company

"deadwood"

.government
cut

agencies

healthy

what

per

share)

called

the

told

Hodges

Office

Civil

and

remaining employes would suffer
from

overwork."

Award Medal to

; /

Rickenbacker

needed.

Price $7
per
7:

J •"

of the workers

are

or more

American
Bill

Medal

Post

No.

Rights

"a ,top

Eddie

Cabinet

enbacker

he does

was

quickly

Shortly

::Aj:A where the securities maybe legally offered.

employes

his

assured

-A;.

fear losing

need

doing

made

that-,none

work 1

satisfactory

tain

ployes

Incorporated

NEW

morale

hiring

by
a

Co.-

persistent critic of the

who

didn't

reasons

Co., Inc.

E. I. Hagen

Christensen, Inc.

•

Co., Inc.

Draper, Sears

for

hesitate
the

lines,

lender

Co.

common

the

cite

a new

Ad¬

in, every new

free

♦

;

the

Air-

of
-

defense
and-the

enterprise system.

This

was
,

the

20th

by the Wall Street
Col.

Oliver

gold

medal

been presented

which has

Post. A

Troster,

Troster, A

Society And

Commemorative

of
A A

Commander

past

will

Street Post.

„

Singer & Co., New York City, is
President
of the
Bill of Rights

person

who is not on civil service
want his own stenographer

because

strong

individual' freedom

re¬

knowledge," El-

comes

continuing

his

award
a

Appropriations

said, "that when

ministration

Louisiana,

v-A -A

Sub-committee.
is

Senator

problem at

cent meeting of an

"It

Peters, Writer

Allen J. Ellenfier, D. of

First Cascade Corp.

•

sprawl

-Eastern

Eddie Rickenbacker

month later.

Cap- Yr;Y

Board

of
«

;

Incorporated

M. A. Saunders

em¬

new

YORK, N. Y.

bureaucratic

Godfrey, Hamilton, Taylor

1,600

was;

-/Ricken-

tman

departmental

renewed-

.Hodges

Company

' The

backer, Chair-

""-Administration approved program;

Robert L. Ferman

Bill

(he

the

.award

his;job if he is

;

sof

adoption,

"Rights.

with his

25,
an-

niversary

testimony before the committee, he

be obtained only in such States

Sept.
173rd

the

-he

after

monies

c e r e

the

post,

Rick-

Captain

;

stunned the bureaucracy
may

its

Gold

pulled back under the blanket of

Copies of the Prospectus

the

held

YYYY

censorship.

Defense

•:

vv-'-;

i S:t

1217

presented

Legion

longer

Y But Hodges, holding

and

ago

Street

House
Service

doing jobs started 40

years

10%

alone at least
are

•

Federal

the

from

Committee that in his department

(par value $.25

without any danger that the

Wall

payroll.
-Post

Common Stock

\
••

opinion; the work for*£e

many

justify their

,AA";

problem.

Luther Hodges

taxpayers'

Panel

begin to feel that the government

unpardonable heresy when he said

Welsh

•

There

to stop it."

way

also

competency

fast.

long ago Secretary of Com¬

Not
merce

110,000 Shares

of the

employes

new .man

fiddle: around in

could

of these securities.

and

rules

former

discharged

So! the

lion mark.

This

cannot

■

service

the

Ellender
as

this and that around

civil

regulations

silent

first vyear

enabled by the E. P. U. system to

airport rally at

President,

very

"Under

- out!

senator declared

Since tnat time
been

I think

his own.

him. yf/dm A A A/A •

Ken¬

American

young

indignantly., at

was

care

the

Roanoke, Ya.

to take

steps in good time

necessary
ensure

have had

balance. Alt

of the effects of adverse trade bel-

can

knew," the

not

adverse

movements.

bitious aims. It wants to take

exchanges.

scheme.-Had

employees.

pos¬

;

The Maudling Plan has more am¬

liquida¬

operation the governments

office

at the

effects of inter¬

money

John

"They have added 106,000 new

care

their

and

measures

that

been in

rate by implication, that the

any

ances

Mr.

that

tion

Those opposed to further meas¬

ures

Presidential .and

1960

Senator

about .time

Maudling Plan Aims at Persistent

X ."7

BARGERON

Union.

debted to; Germany: and other

deficit countries.
A

campaign

instalment due under the

CARLISLE

The nedy. charged that the Federal
Britain and France payroll had expanded to an all-

Payments

was

the

applied During

system was

limited sphere under the

Federal

surplus countries to un¬
adverse

.same

European

spear¬

than by dollar devaluation,

means

long period.

The

within

that

;

for expansion by- other

way

impunity,

with

before Britain will. repay the last

(2) Whether it is really a good
the

deficits

Keynesian in particular became heavily inr time high under.: the Eisenhower

being at

any

the

deficit countries to

•

Ahead of the News

with that necessity

run

re¬

ments. France and West Germany
are

to do away

and to enable

provided adequate additions

object of Mr. Maudling's plan

plus countries. It will take years

international
is

automatic¬

developed

international monetary expansion.

TT7*.

f"v-

similar to

substantially

that

the

ex-

approval

FROM; WASHINGTON

governments to resort to

I. M. F. and the bilateral currency

national

derwrite

measures

arrangements made by the United

according to

towards

Whether,

for

to induce

in¬

recent

can¬

persistent

head of the movement in favor of

adequate.

idea

the

of¬

encourage

the reserves tends

put

precise

-,♦ -

monetary

judged

questions:
-

(1)

liquidity.

monetary

opinion

trade deficit

of facilities available at the

crease

present the. plan

the

attitude

one's

their

against the effect

the

analysis has to await

appearance

can

against

devaluation

dollar

'supporting the exchanges,

peed for

for further action to increase

international
In

States, pro¬

vague

was

deliberately

and its

form

balancing

The-plan

accounts.

forward

succeed

latter

United

themselves

countries further international expansionary

intermediary

the

through

coun¬

deficit

currencies

willing

should

tries

surplus

the

nounced

international need

liquidity. As a result we had the
Triffin

behalf

evidence

quarters

But

say.

international

increase

best

not

the

Treasury.

Government the 7 publication of articles;
vassing a dollar devaluation,

the. British

wants

and an

ficial

devalua- A

inspired

position to

whatsoever

allegations

for

t hat

:^ontr^ctio^ ; of

foundation

was

States

that
in

have

such plication of the plan put forward
pro- by Mr. Maudling shows that there

correctives

not

ap¬

expansion bf - credit: in [surplus liquidity by means of an all-round
devaluation. The view is under¬
countries, leading to a reversal of
A under E. P. U.f deficit-countries to run jqj deficits witb impunity
J
stood 16 be "firmly held in the
a
trend of tradeV between them.
over a long period without undertaking domestic discipline.
United States Treasury that of¬
Under the' Brettoriv Woods eystehi'
ficial
quarters in
Britain. < en¬
the
International
Monetary *of 'gold standard there is iioysuch
LONDONi England — During ;the of
adjustments,
but the courage the aggressive advocacy
last two or three years most of Fund, and Mr. Robert Roosa on automatic
there

United

sterling

ficial effect. The effort to increase

in deficit countries

credit

neu¬

their''automatic

in ~ the. form

tion

Mr.

the

standard

In Y

itself.

repeat

campaign in favor

view

Maudling's plan may have a bene¬

gold

convinced that the American press

trade

the

adverse

point

one

international liquidity by

Under

'duce

pressuring for gold-devaluation. Dr. Einzig points out the

rumors

Seek

Not

Does

Gold-Devaluation

tralized.
...

In this respect his-

press.

appears

automatically

balances

tory

adverse

persistent

Maudling plan is criticized for its Keynesian

sertions, that the U. K. government was not
of

fect

propensity to grant
automatic liquidity to-countries running a
persistent .deficit. It
is praised, however, for implicitly revealing, contrary to U. S. A. as- j

The

opinions about the rela¬

system under which the ef¬ A' For

British

1949 British official quarters were

tive advantages and- disadvantages
of

;

Shows

two

settle

been

have

.'fifties.

the

money

movements, there is indeed room
for

would

finding means for neu¬

for

need

Thursday, September 27, 1962

...

(1306)

the

Wall

Volume

196

Number 6198

The Commercial and Financial Chronicle

(1307)
If past experience is any
guide,

The Expected Demand

it would be unusual
tic

industry

copper

ments

it is believed, reflect consumption and not any significant
inventory building.Inventories

the domes-

three

see

TJTyv. ATrm fOWA1 "1 C A/Total a ?°"seclt!ve yeare (0f ^arply ris- throughout the industry
r Ol INOlllclIUUo
lVlOldlo tag-deUvenes
However, there

By Charles R. Ince,<
St.

Industrialist's
metals
follows:

him

believe

lead—fair to

the

sales

ago,

years

midst

creased despite the

compact
■*'

consump-

out,
o

was

extended

lasting

one,

into

full

the

ef¬

Charles R. Ince

durable

which

in-

metal

beginning of the
*95

the

second

110

year

quarter

the

qf.j^Sl that
half

/evaluate

the

impact

apparent

now

another

that the

which
reached.

was

been for the excellent

the

automotive

zinc-

than

automotive,

and

The aluminum
be

going

cumstances

arts

g°1i £*gh
ns^w nic!

Profits

are

die

well

castings

sales

coming

it is

difficult

dustrv

c^nt^
Z tn
hf^L.mrid
safe*uarded-

—

«/»"< by Mr. Inc. before the

ipth annual marketi

conference of the

'a.r'seo. mil"tSL

N*w York c"y. Sept. ie-21, 1962.

was

Qin„ar%

linger, 'Bean

tha?the fTna^dal^ic-

PhilorlelnVlio Rv

hil&Cl6lp.Ql9/

during

applications such

and ' shipments

records, this

;

num

****UADELPHIA, Pa. — Singer,
^ean & Mackie, Inc. have an¬

domestic primary production

under

the

di-

recti

mclmed to

_fair

cooper—moderate
m4

and

°Zinc—good*

moderate*
to

good*

consuming

the

esti-

year

zinc,

and

pile disposals.

A substantial

tion

at between 2.5

stocks

these

the

Janney,
tles

for

con-

now

have

Jennings, Mandel & Longstreth.

or the solicitation of an offer to buy
is made only by the Offering Circular.

any

was

of these securities.

NEW ISSUE

the

corrosion

September 26, 1962

new

protection,

200,000 Shares

new

sumption figures for most of the

lithographic

non-ferrous

make

zinc, and powder metallurgy

ap?r

quar-

plications

ex-

The Franklin National Bank

the

of long island

sorry
•

•

ter.

metals

'As

is,/we

reached

durable

panded research

have

the

balance

Whichever

1963

course

into

in determining the overall -trend'
of

the

try.
the

position of

metal

metals ""
-

Outlook

indus-

general

•

for Lead

dustry has
strong

a, moderate

improvement in

sumption of 4%

1,022,000- tons,

over

should

last

the

coming

the

other

lead

year.

Unlike

nonferrous

closely

two
,

m e

1 s,

related, to

are

their manufacture, since

the

battery industry and
lead

for

and

the

/ high-octane

//. gas. Battery production, both
car

the

largest outlets for the metal

tetraethyl
V

replacement,. has

new

been

markets

by the heavy

copper

and
■

among

other conditions,

Price $100 Per Share
Plus accrued dividends from date of issue

At the moment,
is

less

Copies of the Offering Circular may be obtained from such of
the undersigned and others as may legally offer these Securities
in compliance with the securities laws of the respective States.

cau-,

dealers
sense

that

scrap

has

continued

turns

the

they

Eastman Dillon, Union Securities & Co.

quick-to

business

A. G. Becker & Co.

pic-

Blair & Co.

Incorporated

not-always

are

spring

began in May
since./ Scrap

notoriously

are

ture.". While

last

outpouring

Harriman Ripley & Co.

Incorporated

Glore, Forgan & Co.

Hornblower & Weeks

Kidder, Peabody & Co.

right, they
so

that

are

right often enough

ings will usually cause
to become concerned
sible

increase in their offer-

change

beyond i this

Lazarp Freres

&
Co.

Incorporated

Carl M. Loeb, Rhoades & Co.

Merrill Lynch, Pierce, Fenner & Smith
!•'/,;
/■'/•
Incorporatedr • ■ *--•*.
••
.*
•"

pos

in-price, w,'Looking
year,

Incorporated

consumers

over

•

the ' domestic

running
-i

subject,

are

approval of the Comptroller of the Currency of the United States.

exceptionally

Buyers have turned

security

and

the running of automobiles rather
than

the

during:

some

The issuance and sale of these shares
to the

tious, influenced by the break in

year's

continue

to fur ther expand its usage

bright.

con-

from the 1959-60

however, the sales outlook
Lead, which has been enjoying

had

recovery

recession lows.

;

aPPar?nt fhat the copper in-

• '.

Sales

Par Value $100 Per

Rise for Copper
.

average monthly rate -in I960, it <

•

in turn> were 12% hiSher than the

backlook: at

4.60% Cumulative Preferred Stock

above the average monthly
ra^e f°r 1961* As 1961 ^deliveries,

of the indi-

some

major factor

might take

/■.

With-: this

Z'vidual

•

and

nonferrous

ground

velops, it will probably
year

program

Deliveries of copper to domesfabricators'in the first« seven
ninths of 1962 averag^d^ about

de-

carry

I ".

the

look.

whether there

say

during

year.

activity ; in

slide off from that level

rise

the

developed

employing/

Zinc . Institute, ^ also will be a
production, and it factor in improving the sales out-

goods

will be

seem

plateau

is too early to

would

reading since the first

processses

viously depend

Salomon Brothers&Hutzler

Paine, Webber, Jackson & Curtis
.

•.

•'

'•

M.A.Schapiro&Co.,Inc. Dean Witter&Co.

sales outlook for, copper will ob-"

and

• above
last year's peak,
tetraethyl: lead '♦ consumption

general levels

has also been establishing records.^ of business
activity to a considerNot only is the TEL content of able
extent/

t/'f •{' Hayden, Stone & Co.;
*

Incorporated

Clark, Inc. Mr. Flanigan

offer to sell

The offering

Bat¬
E.

por-

to
This announcement is not

trading

department of
Jack Christian

threat of U. S. Government stock-

are

was

formerly

lead

Mr.

Christian

Alu-

ticularly

James

Flanigan.

this record supply. Shipments to

industries

Street

Jack Christian

The

year.

officev
South

121

Broad

use

f°un

and

year,

branch

new ones,

this

ahead of 196°,
last

of,

the

if?

year-will exceed 2.1 million tons,.

record

the

opening

summarizing,

try and government estimate that

nounced

mar¬

vernacular of the TV weather

new

Both the indus-

or more than 5%

alumi-

markets and opening up

appears

setting

are

ahead,

keting pattern: juiucii 5111^ present
Enlarging

industry

year.

Looking

expects to continue its

-V-juabitxiit

zinc anodes

£>!*•

Aside from improv-

ing surface finishes of zinc,

hadn't

nrel
inter"

and

will

orna-

continue

10%

about

year.

them
—

ever

last year's level,, when return
about 6* ?n salea and onl/

strong. 'Production

be growth industries and should
contribute a further expansion in

showing of

industry, the

functional,

mental,

not v be

could

have

ments

and 2.75 million tons. These ship-

chiefly

from

Both continuous-galvanized sheet

no-strike settle-

';; v*" i

mated for the*

castings,

metal

rate

year.

production

•

die

duction and related durable goods

ment

onlv

gai

offset by the increase in iise for

artificial impetus to steel pro-

industries,

coated sheet has been

part of steel consumers, and gave

sustained when

910,000 tons for the

aluminum industry seems confiOvershadowing the ^Jes ,,putThe dent of beingi able to dispose of look for all four metals, but par-

year's

the

up on

•

last

release

diet the extent to which the

fr,

be expected.

Earnings

■';

g€ven monthg domegi the,: previous
have
been
run-', 12%% ahead

above

8 'TT"

thP

w,;

reached.

,year',

led

strike

stocking

20%

decline

steel

threat

major ./ steel

to considerable

/an

-in

area

Aluminum Sales Marred by

* -

applica-

iast

over

these

_„Jr

*•

newer

Under

and

already

sudden

than at the time the

ab-

commercializa-

improvemeQt

ning

strike that didn't take place. It

•

shipments

of- this

trying

are

of the

one

and fQr the

time

this

use

Zine hag experienced a substan-

tial

'year.
At

its

there- is

now

administrations

™.e r«c°rd 0'/app®L?el'yp"e'; ture will continue to improve, par- *
a
another ticularly in the light of the high
reeprd in 1963.
level
of
operations

during the coming, to

unless

tions.

low of

tion of

not until

was

ried.aritoil,the dfirst

•

1962 13,llkely to set,ahopeful

hand,

applications

break-through

developed which;.earr

upturn

December. !t

to™TeasonabT

continued moderate rises.

year,

associated,^de-

Index

f0r

are

manufacture,r with

closely

Board

field,

ti?

copper

future/.--a

vibration

clined steadily from a Federal Reserve

the

success

sheathing,,®^todomesuiefabriraI

not* fulJy reflect the gain in stockpiles were "locked-up" for

i other

such

metals were accumulated.

The prospects for lead sales 1

nonferrous

the

newer

metal,

the

use*

ing have excellent growth poten-

tollojymg year wnen

goods

our

dustry

show

attenuation,

tials.

...

felt until the

the

; the

condition3

began

sorption, and radio-active shield-

not

were

the

sound

December, and

some

these

;had»a.nmw^iol^-Afeumlt^^at ture. The competition continues
business as a whole levels off
L
continues
exnan^ 1963? sO that the entire year ap- to.be -s0 heavyas41131 prlces have
expansion
*
v not improved
much
ship-

case^of cable

'materials.

of rehabilitation of the economy thereafter, if a war occurs, seem great-

•

not the near
Bftow
in

possibilities

p p age

fects

n<S

soil-pipe

the

in-

Un(Jer

industry-has- had in introducing
copper as the desired material in

steel

the

1959

lead

of war and the problems

lean,

consumers

carrying excessive stocks.

are

impact of the which other materials have long

other long-establi<fhed

;^d in (he

turned

events

has not

car,

u-i-.

The

our

metals.

factor

but the proportion

of sales of regular
lower octane rating,

nor

in-*
shipments, 1959, was a
period of inventory building be- ™ object to Congressional apiSvteXZ oWta cause of strike iand price rise proval- It appear, that the Conran! The rate of procurement w- fears- Consequently, 1959 ship- gresKional investigation of the
gas- pears to be accelerating. A second
°.f lightly less than 2.5 pTliticanv^otiva^^h^V" ? i S

gasoline? with

evaluate

6trike

o n

several years,

our

impact

the

and

are indi-

comfortably

^Hou^miss?le

regular and premium
oLnes higher than U has been for

in the

indicate

exception.

producers

leaTne^Xut^TeaTavo^and an"

Y >

that

catde Jinking the
sites.- S Tijisl program

copper—moderate lo

picture

well

neither

exptndrtumfM'do

both

undue pro¬

longation

t i

strike

trying

was

this group

were

steel

industry

that

adverse turn at the busi-

ment's disposition of its strategic stockpile. : '

When I last addressed

shape

may

the

may

fabricators, cated

currently fac-

been declared
surplus.: We do not
know what considerations entered
into this declaration
The threat

eo^ti^^ipTnt^stics P^ous

lycle, the only overhanging threat is said to be the Govern-

tiess

the

outlook

moderate: zinc—good;

good: and aluminum—good. Other than

three

1963

/—

probing of the sales outlook for leading nonferrous

leads

tors

Vice-President and Sales Manager,

Joseph Lead Co., New York City

,to.

are

Reynolds & Co.^ Inc.

Spencer Trask & Co.

with

The Commercial and Financial Chronicle

(1308)

?962-?5 teinonslithx3,ToT issued Investment Bankers Association

Problems and Procedures

So, the industry has done a re-*
markable

rapid

job,

routine

and,

accomplishing the

stride,

processing and distribution of this

The First Boston Corporation, Chicago, Illinois

total. The future promises a con¬

tinuance

revolving around

problems

members1

Syndicate

matters

such

with

preferences, position and allocation, and the managing underwriter's
in

concern

expanding

work

underwriters

Reference is made to the phenomenal rise of munici¬

By
ment

procedure

While

delay; and particularly to the need for

the

Municipal

Group

of the

part

integral

is quite

has yvould appear to

municipal fra-

period
years

have,

Arthur E.

financing.

slowly

Recent

registered such

mu¬

years

expanding

it is; timely to meet

review

and,.; discussion
'

few

history

]Ki

:, >

.;;1.....

common

would

single
today's

regarding

municipal

borrowing

DIVIDEND

probably

hard

the date of the first borrow¬

first

Today's

municipality.

have marketed its

bonds

1828.

around

outstanding today
maturities

trust

represented

tions.

has

long

some very

bonds

assumed

is¬

sued

These

1868.

developed to

dates

records

given reasonable freedom

volume

entire

the

expansion

account

undivided

Amt.Outstanding„

1913

$4V2 billion

1920

The matter of

tion

increase

sented

last

the

billion

$8 V2

by nearly

repre¬

issues

7,000

NOTICE

—

City, Utah

will

trying

:'£

I BOSTON EDISON
Preferred Dividend
A

;'<■

quarterly dividend of $1.07
share

payable

been

has
the

November

1962

declared

first

day

stockholders

of record at the close of business

Pacific Gas and Electric

October

pany's

10,1962 of the Com¬

Preferred

Cumulative

Stock, 4.25% Series.

ager could

must

per

payable

has

Directors

1962

of the

October

co: ;nion

capital
will

October
ccmmon stock¬

paid L/

chcc'c

15, 1962,
holder:

record

i.usinec:

the

at
oi.

Sep¬

Cumulative

Ci iRISTENSEN

Vice iJresiden '• and Treasurer
Sa

Francisco, Calif.

the

Vice-Preictent since December,
The Association will act

960.

on'the slate at its Annual Convention,

1962, at the Hollywood Beach Hotel, Hollywood,

November 25-30,

Florida. Nomination is tantamount to election. The new

Likewise, it
good

deal off

successful start

and stimulate the
additional

points

bonds.

require
with

of ideas,

some

frank

but

the

I honestly believe there

broad

very

will

discussions

interchange
start,

municipal

bonds.

constructive

1960

suggestions

consolidated

many
w e re

by the IBA Munici¬

of dis¬

area

Company

November

business

Checks

Old

has

33c

been

will

1962

Colony

stock¬

at the

de¬

the first day

October 10,

close of

hope

Trust

ALBERT

conference
ter mutual

preciation
various

volved

new

not

industry.

the

feels

problems

the

and

.special

problem

overall

not

dis¬

McMENIMEN
Treasurer

Boston, September 24, 1962

Improvement

great

stantly

being

individual

municipal
and

deal

improve

the

•

his

cancel

obligation

ceive prompt
faith

with

Along
want

to see

the

foregoing

statement defining

the time of official award follow¬

*From

talk by Mr. Kirtiey

First

Municipal Conference,

Sept.

11,

before the
111.,

Chicago,

1962.

Manley Bennett,

the

delivery

The

casual

applied

the
and

and

the

"when,
large

specified

;:
as

and

if"

commitment

occasion prove to be a long,

long time—my own corporation is

con¬

McDonald Merging

re¬

refund of the good DETROIT,

date.-A./.'.;.A

clearly de¬

deposit if the issuer fails to

make

work

done

groups

bidders

the best interest

of all issuers.

Every notice of

any

Measures

members

customer

the underwriters.

can on

IBA

adverse

that

from

Company,

tions,;

are

relating
;

group

sale

to satisfy

actual delivery is
ing opening of bids.
unreasonably delayed. With the

purchaser is granted an option to

feel

nature

industry.

notice

the

opments,

com¬

account

should

do
a

today

of the

fined clause to the effect that the

directly with the syndicate

matters of such

national

areas

manner

should result in

develop

mem¬

feel

the local

placed in

the

small percentage

volume

the

group

cussed

specific

that

where

sales should contain a

rightful

only

issue

new

Situations

date.

—

given assurance of a final de¬

livery

of sale in

bidders

if outlined in

munici¬

Whenever
has

these

plaint

manager

issues

the issuer

—

wording his notice
manner1 to satisfy all

issuer^—terms

underwriting

successful

extras

in¬

unreasonable

the

not need any

will benefit by

risk

concerned

particularly

are

over

suggestions.

these

pattern of our business and we do

result

segments

pal

A
C.

acceptance

general

cancella¬
market develop.meetings to attain bet¬ ments, indefinite delivery can be
understanding and ap¬ embarrassing and very costly to
as

1962.

mailed

should be made to obtain

because of
and periodically where,
with legal proceedings or other devel¬

manager,

minor

agreement

procedure

the

perhaps only

area

management

fairness

president

vice-presidents will be installed on Nov. 29*

and the

ignated orders contribute to that

the Common Stock

clared payable
of

dividend

quarterly

per

Washington;

they have been Vice-Presidents since December, 1961.
MrAHarris was nominated for a third term; he has been a

good start. The recog¬ pal Securities Committee in a
printed pamphlet.
Every effort

proper

careful

man¬

would

Common Dividend No. 294

Boston.

that

always in geting

ber

Preferred

Stock, 4.78% Series.

holders of record

tember 22, 1962.
i\.

10,1962 of the Com¬

the

upon

ctock. This dividend

clocc

of 25

"/car

per

Coi .pany's

stockholders

of record at the close of business

pany's
cents

day

cash dhidenc! for the third

quarter

first

White, Weld & Co., New York; William T. Kemble, Estabrook &

possibility

declared

been

the

November

bonds

is vitally con¬

manager

agreement.

A quarterly dividend of $1.20

Chicago; Lloyd B." Hatcher,

Co.,

please "all of the peo¬

recognized

Preferred Dividend

September 19,1962, declared

allotting

ple all of the time."

his

always exist, and there is

These

St.

City, Utah

No. 187

improve

distribution

COMPANY

per

Board

point of satisfaction.

magic formula by which

Federal Resources Corporation

COMMON STOCK

Bache &

Harris,

nition of syndicate orders and des¬

First Security Bank of Utah, N. A.

The

problem

cerned

NOTICE

neces¬

syndicate

Record Date: October 19, 1962

llfflfj Company

four

alone, in

borrowings

New
totaled

DIVIDEND

member's posi¬

every

position to

Payable November 16, 1962

West

David

Otto, Irving Lundfcorg & Co., San Francisco.
Mr. Kemble and Mr. Lemon were nominated for second terms;

and

sity

50
71

President:

and George J.

syndicate account is

competitive

years.

Five Cents Per Share

19-21, Santa Barbara Biltmore Hotel, Santa Barbara, California.
Named with Mr. Ames were the following nominees for Vice-

50%

1961

DIVIDEND

the. above, it

Inc., Los Angeles. The announcement was made

Walter & Hurry,

following the Fall meeting of the IBA Board of Governors, Sept.

Co., Boston; James H. Lemon, Johnston, Lemon & Co.,

.The 1961 total represents almost

DIVIDEND

South Third

firm is confronted with the

1940-—

Salt Lake

ap¬

member * and

preferences such

1950

SEMI-ANNUAL

1370

man¬

fees,

to be the privilege of

individual

The

P. O. Box 720, Salt Lake

accounts,

clearance

fee,

divided

for,

Allocating Bonds

1957

Agent:

preferences

William T. Kemble

In¬

municipal debt for various

1961

Transfer

membership.

here are is questionable that there would be
outstanding total any uniform agreement.

figures

Notice of

CASH

position of trust,

business,

some

Beryllium

•

account for

representing the interests of the

ob¬

Expansion.

Sharp

To indicate the sharp

RESOURCES

Uranium

compared with

other members of
he is clearly in a

he 'has

However,

special privilege

pear

CORPORATION
•

Recent

of general

...

judgment.

agement
memory.

policies have

point

from

not

—

Year'

FEDERAL

George J. Otto

opera¬

our

The managing underwriter must

years:-..-;;:.

Silver

acceptance.

versus

tained from

state

NOTICES

James H. Lemon

We must also recognize the

dividual

generalities

view

comparison with

reported

of our problems and proce¬

dures.

largest borrower, New York City,

Kirtiey

foundations'' created

some

startling

issues

ing

very

outstand¬

cate and distribution

carefully since origin of

for

state

years' such

exceed

Lloyd B. Hatcher

the fine ethics and high degree of

long history during which syndi¬

prove

obvi¬

volume that

100

appear.

began

David J. Harris

Amy as Ames

must accept

ours,

market.

nee.

proce¬

nicipal

debt

industry such as

but basically

bonded

state

that

practices

some

first

the

bound to be recurring

are

It is

new

ously

There

problems in

ing amount of $400 million.

ipal division

dures

order so

approximately

figure in

and

members'

somewhat

Our

relating

allotments and many
other problems of the municipal
industry. I am sure there will be

states from is¬

not

special munic¬
fere

opportunity to

brief

nearly

debt did

apparent

necessity for

had

have

position,

deprived

money.
year

For

with¬

funded

has

elapsed

amounts. In 1820 the Federal Con¬

that

be in

few

of committee assign¬

reason

highlights many specific subjects brought up
with approximate dates and round at this
conference.
are

suing

long-

here

stitution

;

that

ternity
such

old

50-year

tribute to the

statement

award following the opening of bids.

actively participated in and is an

have

President^ Bingham,

listen and discuss the management

defining the time of official

and

America, announced Curtis H. Bing¬

ham, current President of the Association and

distributors.

and

when there is

solid

ment Bankers Association of

volume

marketing of tax-exempts and the reduction of the assumption of risk

con

Kidder, Peabody &

Co., New York, has been nominated for President of the Invest¬

getting the distribution off to a good start are discussed

by Mr. Kirtiey.

out

W ASHIN GTON, D. C.—Amy as Ames, Fartner,

prospect for

pal financing; to the work by the IBA and others to improve the

IBA,

Receives Officers' Slate for 1963

to' this

gearing
increase

volume

By Arthur E. Kirtiey,* Vice-President,
^

Thursday, September 27, 1962

highly conscious of this intangible

nett

Mich.—Manley,

bers of the New York and
Stock

Moore &lCo., members

of the De¬

troit and Midwest Exchanges,
be
of

consolidated

Manley,

under

the

Bennett, McDonald &

risk

dustry assuming it—underwriting

and commitments involve

Moore & Co. will become

co-ordinate

marketing

ous

cannot

justify

our

in¬

numer¬

elements of risk in the normal

will

name

Co., effective Oct. 4.

IBA,

Detroit

Exchanges, and McDonald-

local

and

Ben¬

Co., Buhl Building, mem¬

(

Harry A. McDonald and Joseph

Gatz,

partners

in the firm

McDonaldpartners

of that date.

Volume

.s. ■

196

Number 6198

The Commercial and Financial Chronicle

(1309)

i»«

*•

V!"*

T,^**

ii*

,ijb5fc '•V

HMHi

Puget Power is where the growth is!
Nearly 60% of the entire population growth of
,

•

^'r<1 !

Washington State

'l'

V-"

over

•

i'»

' "■

the past ten

' "'S

years

has

occurred in Puget Power's service1 area. Puget
now

serves

than

highly electrified communities in nine Western

850,000 people in 270

Washington counties. Forecasts predict that this
population

will continue its increasing

curve

trend for many years to come.

twbtN:-

■

:«OOKSA£K,

FACTS ABOUT THE GROWTH OF PUGET POWER COUNTRY
pttyMgwAM

Puget serves

nine-county

area

where 850,000 people

ittWKSjeAWft:
6EO»l>:

use

VW5CHit:¥

TWICE

much

•fiusuwstoi*

electricity as the national average.

0tfi Vt*l#5*l p;:|::j|

1952
POPULATION
PER

CAPITA

INCOME

......

1962 (est.)

1972 (est.)

500,000

1,200,000

$1,912

$2,900

£+&$&;

PUGET POWER

$$#&«

YEARS

ELECTRIC

PROGRESS

9L*mwa;

§|

eketttofc

imfXmm

PUGET

SOUND

POWER

(

LIGHT

COMPANY

17
/

The Commercial and Financial Chronicle

thing

The Market..

And You

came

prise.

His

complete

sur¬

that

fear

impression

Our

ltitle support elsewhere.

Tax-Selling Impact

Washington
tendency to break away from a intervention appears to have disnarrow range, opinion seems more v sipated
with news that a Condivided
than
ever
as
to
its gressional Committee has decided
eventual course for the next few to take off the heat on its data
underlying

latest

market's

stock

fear

One

convince

Support Yor

analysts that the declines are any- v
more

market

technical.

than

thing
other

sure.

observers

new

not

Some Wall, Streeters see further

o w

others
back
last

580-area

the

testing

industrials

o me s

predict

But- there

public

able

been

of the

bounded

bulls.

expects

analyst

well-known

One

the

among

models

until

weeks."

ranties

market

the

appears

staging

stocks

found

in 2%

day

slight

re¬

•

analyst are-Convinced that
climb

sustained

new

and

making.

re¬

step back and

three

sembles

half step forward mar¬

and

ket for the time

being.
A*

hold

also

market

little

vestors

The

trader.

blue

and the glamour

tendency

in¬

few

chips look pale

followers.

new

their

list

active

seems

tive

despite

gadget that

new

large Wall Street house claims

earnings

pinpoint

the

for

can

three years.

meanwhile

news

holds little encouragement for the
start of

advance,

new

Steel

production

showing

improved

medium-term is

Steel's

are

last

count

and infla-

power

that the Treasury will

news

try to

bid-

competitive

method in the salfi of longthe

bonds, in

modest

Surprise to the financial-district.
been; talk

12% this year! from,' nothing much
whether

definite

very

half

the

;

lowered

out

pretty much

flop—there has been consid-

erable discussion in financial cir-

Its common in

cles that the Treasury should have

is also barely above

the mid-40's

some

its low for the year.

job

one

and

Deere

his

funds for their Sept. 30

reports.

Dismal

topped

real merchandising

out

Steel
100

million

likely

tons

next-

downturn

proportion

first quarter of

estimate

fall to

year
spur

there

tions

high

and

dividend

have

price reaction.
•.

Oils

pros¬

C,-

J ;*

<«<-

increase

;

immediate

any

remain

■

•»

•>

popular

sick

steel

stocks.

note

ingot

for

But

the

industry

Williams'

Mr.

borne

out.

rumors

sees

contender

for

aw.

dian

likely to end

Although

near

steel

their lows.
cause

drag

Dividends

concern.

One

13-14

the

fairly

standards, it

Canar

range.

market

still

sluggish

Chemicals,

corporates
•

is showing signs
Or at least

some

the

not

of
of

Street's most

flash

that

the

eru¬

whole

yield
few

differential
basis

did

points in

widen

favor o£

the

Government bond but not enough
to

the real credit differ-

express

between these two bonds.

ence

;

Even

the yield spread be-

now

letters

and Dow retain

although

with

lot of popular¬

institutions,

the

espe¬

funds.; Alb three

cially-the

are

down sharply from their highs as
most

are

:>X.

254,

but

ago.

year

its

high for the

only off

' This

much

looks

200,

around

now

below

well
of

stocks.

Pont,

latter

better

year

from

is
a

showing

when

blue

other

Only five of the 30 were sell¬

late

September

while

price of
15

issues

not

cide

They

necessarily at any time coin¬
those of the "Chronicle."

presented
only.]
•
/''

are

far

paying

are

inferior

for the higher rated

This

situation

the

bond market that will have to be
remedied
cause

the

time goes along

lower rated

issues

bewill

be sold in order to buy the higher

rated

bonds at

about the

same

yield basis,

The Treasury recently sold $3
billion of 170-day tax anticipation
bills which will mature on March
22, 1963. They

taxes
„

can

be used to

pay

March 15 and the banks

for

pay

tax

"r..

them

Treasury

crediting

loan

and

ac-

count. The recent advance refundln* opewttai

4made way for this
other short-term money raisln® operations of the Government,
?

•

_TT.

JVlllIl. W 0111611
;s

those of the

Government
a

JN 3,1116 (JltlCerS

real pre¬

price, yield

but

rat-

Mrs. Betty C. Pollock, of Harris

other

Trust and Savings Bank, has been

any

elected President of
pal Bond

York.

premium

ferred

experts,fit

re-

differential

yield

should

baste

least

words, if

amount
in

points

Government

favor of
In

bond.

other

United States Govern-

ment bond is

the

generally

according to most financial

and,

selling to yield 4%,

highest rated corporate bond

\ should
give

selling

price

yield of 4.50%.

to
.

Women's

Th^ MuniciClub

New

She succeeds Mrs. Jane N.

Brownell, of Chas. E. Weigold &

Co., Inc., who remains

member

of the Board of Governors,

}

Also

elected

the

meeting

Alice L. Dooley, of Ira
Haupt & Co., Vice-President; Virginia Ramsdell, of Morgan Guaranty Company of New York,
Treasurer; Margaret Burns, of
were:

Mercantile National Bank at Dai-

Tax-exempt
be

compared

ernment

basis.

bonds,, because

non-taxable

feature,

with

bonds

cannot

taxable
a

Gov-

yield spread

However, there is

that

the

F6deral

Govern-

Therefore*

the

States

rating, that is comparable
of

ment.

securities

the

Government

are

evident
United

the

ias,

Secretary,

and

Charlene

Koke, of Braun, Bosworth & Co.,
inc.,

and

Maureen

Cates,

Kuhn, Loeb & Co., as Governors.

state

other municipal entity that has

credit

with

author

issue.

This

19 to 50% lower.

[The views expressed in this article
do

investors

much for

be offered by any other borrower,

the

year-ago

that may have been or will

bond

chips in the Dow in¬

ing above the

that

they

question

ing is concerned, over

com¬

pared with performance of many

long-term

mium

the

small

tax-exempt obliga-

There

bond should command

during Monday's early sell-off
send

better

the board. Du Pont, Allied,

ity

important

showing

market

}

are.

of Wall

yield

on a

Chemicals

another

farm item, are

ap¬

former

one

corporate

being floated

was

time

same

rated

rate all other

being offered

are

outstanding whether

are

bond

starting point from

measure or

bonds which

Big

the

and

which to

dustrials.

dite commentators took the trou¬
ble

able

long-term

highest credit avail-

very

what

were

One

stocks

inactively

Interest in

pears

sometime next year.

Meanwhile,

Gulf's

highest

the

Government

States

the

with,

begin

United

around

trades

the American.

.strong

affiliate, has been active but

steady in its

it followers

1958

daily

take-over

British-American,;

predic¬

Royalite,

occurrence.

nervousness.

nearly

are

•

tons

are

their

tions."

the

American. Exchange where take¬

that started

along

oil.

remain

depressed steel consumption cycle

continue

fa¬

institutions

Gulf's

failed

over

output

expected

bright

one

cyclically
another

steel

million

rush

that

hardly

can

busi¬

start

1963.
«*

may

largest)

Board while M-F holds around 10

price weakness at the retail level.

"relatively

Massey-

and

between

Case

although

pects good despite continuance of
e

mid-way

support^

much

how

unquestionably

the

Earnings

Case

A Premium

have attracted much less investor

moderate"

His

year.

Sheet &

Tube, has openly forecast

the

executive, Robert E.

Williams of Youngstown

ness

and

year

total

smaller

Another steel

this

just

field

output barely reaching

sees

But

One
•

implement

highs and lows, for the year but

question of

determine.'

vored

(Canada's

Ferguson

quarterly

makers,

„

Treasury Bonds Should Command

fram

other

Two

•

„

respectively.

activity by- the institutional

Steel Picture

Worthington

There

mutual

the

and 57%

about

great.

credit

their long-term debt offer¬

ings

By odd coincidence, Harvester

future

near

Govern-

best

very

4.19% while at the

rated bond

put out by the Treasury—and

turned

and

profits

higher

considerably

sales for the year.

days has been ascribed to

window-dressing

hard

Leslie

the

undoubtedly won't be

traders.

sights for 1962 production.

stock

the

obtainable, being offered to yield

almost

next. ~

Ever since the 4%% of 1987/92

was

equip¬

farm

Big TwOj is also- showing

ment's

to replace the bor¬

urge

rowed

differentials

c|o;> is. .practically non-existent or so

not it would become

reality this year

Deere' & Co., the

of 44%.

second

the

bond,

far

sense-as

concerned to have

ment

the

about

;

standard

any

little

very

various

obligations,

sharp

5.4 mil¬

shorts

the

latter

the

basis of 4.18%. This discrepancy

•

not distant future was

Farm income

yield spreads

term; Government

\.:.Part of the increased action of

for

high by

ratings

Adid not last too long because the

The

ding

precipi¬

and- between

bonds

placed with It makes

without creating new deposits and

Government bonds and corporate

are

purchasing

' No Sense.

•

Yield spreads of late have been

bonds

year

figures showed a

The

Govern-

practically non-existent between

Government deficit

sizable

drifting close to its low for the

the

year's high.

bears.

lion

fading. Even Big

President has

the

recent

moved

slightly last week; but the outlook
for

bulls

the

compe-

- that
more
than token
within. a amounts of these issues would be
slight- drop but not enough to
quarter point of each other ear¬ sold to the investing public.
elicit an encouragement for the
lier this year with highs of 57 V2

yet the

•

business

The

able to ob-

are

which

if there is

Even the utilities look less attrac¬

X:;'

though

Long Overdue

Harvester cbmmon is currently

Short Interest Drop

Slight

Short interest

that

based

rating

Differentials in Yields Make

would be the best way. to finance

is likely to rise 1%: There had

continued

1961.

although it

regularly

too is far from the

year

ment sales up

the low _50's.

showing in

its

sell

9%,

differential

with

declines Treasury giving consideration to tween not only Government bonds
new
in
farm
way
of
employment.
Allis- this
distributing but > also
between the - various
Chalmers reports its farm equip*, Government bonds^but there'was credit ratings of corporate bonds

Macy's

for

sales,

yields

measured

ment bonds,

give

despite

largely

lows

tionary pressures.

full fiscal

the

for

margin

for the

}

still

July

ended

months

other

credit

the

tain'below

other than the

enough in this form of

expects to turn in nearly the

tously next month.

although Macy is making a

professional

stocks show little

lure

are

better

appears

the

are

wants

question but what the

new

has already re¬

unless farm Income falls

most

the

Korvette continues to hit the most

for

appeal

biift

stocks

gain in profits for

12%

Harvester's

out of favor. Gimbels and

year,

Ebbing Appeal
This

Retail

taking

spread

upon

the.permanent investors, This

av¬

expected to hold for the full year

but

Retailers Neglected

the

usually

are

profitable.

than

nine

same

sluggish for the big ticket items
which

really

to investors

bonds

bonds should be well

good,

for

better

year.

fallen behind. Demand also seems

•

the following

scramble
with

and

goods have

hard

competitive bidding, Government

the

miles)

1961

ahead

bonds

hands

tition will be keen but,

profit potential,

are

ported

war¬

24,000

for

orders

new

technical than real-

well

running

day amid a dearth of good news
appears

years,

ernment.

stocks.

the

all

should

the ultimate investors. If the Gov¬

probably appear more- deposit banks it

tional Harvester

strong. Department store sales are

when hopes of the more
faint-hearted investors had been

A smart recovery

wait

Elsewhere, retail sales continue

covery

dashed..

The

Extensions

(and

the

which

sizable > these other bonds

Government

home in

result

amounts

a few aria*:
careful look at
farm implement issues. Interna¬

lysts

bigger

force

might

public

manifested finding

recession

'63

stocks

erage:

could signal some concern.

months

;

Amid

substituting

will

safe

(General Motors has gone

two

selling bonds to the investing

incentive

lower-

some

equipment.

year

concessions.

show more life. The first five

million

**<•

- \

nervousness,

defensive

also

end result is the public may

(the 620 range), to
be topped "within the next few

/•<

Stir in Farm Implements

year may

and

expensive

August highs

Meanwhile

this

dropping

priced

this is the way to do it. There is

post-war shortages.

prices

two

amount

selling of more volatile issues for

high sales

balk at Detroit's attempts to raise

remains un¬

yet optimism

And

climb to the
corporate and tax-exempt method the
of possibly a

frequently) will undoubtedly spur

not

has

Detroit

put two

Auto buyers

prices

expected

these

Spring.

Few

from

Government will try out the

dictions

signs

are

back to back since the days

years

Bulls' Optimism

announcement that the Fed-

eral

in considerable switching for the

not react as

may

enthusiastically.

point of 525 of

low

the

of the
while

fairly early set¬

the

that

tax-

Detroiters
balance of the year.' Further pre¬
usually optimistic

their

statements.

CHIPPENDALE, JR.

The

tion 'and

models has spurred

Brokers also oxpect to see cau¬

attract

support. Interest; in the

issue

lot

But

are

the Motors

Motor stocks continue to

emergence

generation.

}

many

the

for this time of year,

recent years

BY JOHN

agreement

Already heavier than in

heaviest

breaks in three days 4

failed

have

the

street

weeks,
Two sharp

area

selling.
it

surprise

the

behind

force

found

the

Reporter

with Cuba could have been

war

the

WALLACE STREETE

With

Thursday, September 27, 1962

...

(1310)

ones

addition

Mrs.

Brownell,

retiring President, M. Irene Prentzel, of Drexel & Co., and
mary

Co.,

Rose-

Gleason, of A. G. Becker &
Inc.,

will

continue

Board of Governors.

the

Volume' 196

Number 6198

The Commercial and Financial Chronicle

(1311)

Dividend No. 266 distributed to 154,000 shareholders

i Indiana)
LOW PRICES CUT
Oil

Standard

1962

from

rose

period

1961.

for

same

production

Net

crude oil and natural

the

liquids

gas

—from
•

sales increased. However,

gas

earnings

dustry,
down
the

high of 738,000 barrels
of

natural

1962 that

six

the

profits
r

first

would

million,

they

product,

months

have

received

1961,

about

been

■

■■■>.

The

$11,7
.if

was

gasoline, {

our

■

Sultanate
t

duction

all

been

principal

earnings

quarter.

achieving higher earnings for the
whole than

but it is

our

paid

was

were

STANDARD OIL COMPANY (INDIANA) AND

wells.

into

consolidated July

were

Oil

Company,

head¬

exploration,

our overseas

refining,

and
*

out

different1'-fieldsir We

revenues........

Total income

Britain

Costs, Expenses, and Taxes:

11,773,827

12,543,227

marketing lubricating oil throughthe United

•

Kingdom. We plan to

company's activities in the

British Isles.

Interest expense..

513,486,099

?$ 466,307,457

364,852,286

331,222,182

98,893,165

104,287,251

9,454,405>.

8,407,150

';<* 33,616,584
1,920,000 ' 7 7 '.7,537,000

36,214,138

Taxes, other than income taxes

Federal and other taxes on income.

$1,023,772,838

and taxes

Earnings.

division in 15 Midwest states,

q .17:;

'y .'V

67,657,682.

$ 952,424,879 >

CORPORATION, Tulsa, finds
produces crude oil and natural gas in the United

States and Canada.

AMERICAN INTERNATIONAL OIL

COMPANY, Hew York
City, finds and produces crude oil, and manufactures and
markets products outside North America;
AMOCO

CHEMICALS

Earnings Per Average Outstanding

•

$1.89

INDIANA OIL PURCHASING COMPANY, Tulsa, buys, sells,
and trades crude oil and natural gas
States.

; .y -.7

for

our

COMPANY, Tulsa, transports crude oil

refineries and for others.

$2.07.,
TULOMA

♦Certain reclassifications of expenses have been made so as to be comparable with
7
7
.;
,7 the classifications adopted late in 1961..
-r
\- >

Standard

liquids in the United

74,176,643

;

CORPORATION, Chicago, manufac¬
petroleum here and abroad.

tures and markets chemicals from

SERVICE PIPE LINE

OIL COMPANY, headquartered in Chicago,
manufactures, transports, and sells petroleum products in
the United States, it markets through its Standard Oil

and

Depreciation, depletion, amortization, retire¬
ments, and abandonments.

purchase

AMERICAN

$1,091,430,520 ' $1,026,601,522

Operating, selling, and administrative expenses

Net

expanded

PAN AMERICAN PETROLEUM

and other merchandise........

Net

the

(INDIANA); ;

{Purchased crude oil, petroleum products,

Total costs, expenses,

were

with

GAS

;

PRODUCTS

COMPANY, Tulsa, markets
liquefied petroleum gas, natural gasoline, anhydrous
ammonia, and related products.
;
v
:
r v

Oil Company. <imdiana>,

9io s. Michigan, chigago so, Illinois

"■

DIRECTORY OF

$1,014,058,295

••
.../

1961*

$1,079,656,693

Dividends, interest, and other income

STANDARD OIL COMPANY

1962

operating

ytp

first field producing

operations

MAJOR SUBSIDIARIES

Sales and other

suc¬

con^

outstanding shares of. Vigzol

broaden the

FIRST SIX MONTHS

Income:

Vigzol's principal business is blending

activities

production,

Iran,

Company, Ltd., of London, Eng¬
land, for approximately $3 million.

SUBSIDIARY COMPANIES

Oil

effectively

the

1 in

Great

off

additional

two

our

in >1963.

Gulf

Stepout drilling is

two

hope to have

years.

CONSOLIDATED STATEMENT OF EARNINGS
-

Persian

completed

tinuing

wholly-owned subsidiary, American 7

any accuracy.

;

Socotra,

76,000 square miles—an

over

the

cessful

nearly 154,000

New York City. This
consolidation permits us to coordinate

reported in 1961,

prices with

{

ac¬

larger than Nebraska.

foreign operations outside North

quartered

year

impossible to predict the fu¬

ture course of

and

Qishn

have

August 31. Dividends have

-International

still hopeful of

are

America

in the.

occurred

•.

area

DIVIDEND

paid in each of the last 69

Our

cent re¬

per

rights in the southern Arabian Penin¬

CONSOLIDATION

years ago.

8.8

Overseas

selling at times below the

of the

•

rights have also been

independent state in the Aden; ProThis brings our petroleum*

regular third-quarter cash divi¬

'business

miles in

tectorate.

daily. Another all-

September 19 to

Almost

square

the Republic of

quired in the territory of the Mahra
-

period in 1961

dend of 45 cents

our

/>» V3;

feet

Petroleum

day. J

increased

Sumatra,

Indonesia.

13,500

some

sula

During the first half?"

were.

bargain levels of 10

gas:

same

acquired petroleum rights to an

central

31 cents per share* greater-v: ^shareholders of record at the close of

the- year,

first

high.

266TH

price for gasoline in the first

six months

cubic

time

the

billion cubic feet to 1.87

1.68

billion

were

We
area

substantially. If We had received

same

than

prices,

gasoline

mainly

365,000 7:

product sales increased 8

per cent over

prices throughout the in¬

FOREIGN EXPANSION

per cent *

day. :

—from
Product

cent—from 684,000 barrels to an

Sales

our net'

rose

barrels

347,000

all-time

liquids

of crude oil./

oil

of crude

production

Domestic

per

was

lower by $6.5 million.

were

-•••>•

Domestic product sales and natural

up.

;

barrels

—

net

and natural gas

six months

$1,091,431,000

$1,026,602,000

Our

(Indiana)

Company

for the first

marketing, and the purchase and sale

OPERATING RESULTS

EARNINGS:

total income

Earns $67 Million

i<r

The Commercial and Financial Chronicle

(1312)

Television

FUNDS

MUTUAL

Corp.

Cooley

that William H.

is President of

longer

Thursday, September 27, 1962

Management

announces

BANK AND INSURANCE

this investment adviser and under¬

BY JOSEPH C. POTTER

writer.

will '

continue

member of the Board of Directors.

No. announcement

get

Management Co.

T., ] Van^e,
President } of
ratios, the gold outflow or whether ,Henry
the Yankees deserve
to be in¬ Vance, Sanders. He notes, by the
World Series favorites.

Fund,

founded

Finally, there is the memo from

price-earnings

stagnation,

Putnam

controversy going on eco¬

nomic

Texas

acquired

Inc.,

the

THE

mutual fund

Houston

all

V.''-;

the Board

M. Werly, Chairman of

great chore these days to

This Week

—

Bank Stocks

has been made.

Making A Survey
It is no

STOCKS

successor

Ansonia,'Investment

BANK

EARNINGS

improve from the first quarter of 1962 and by the year end the
earnings of the major commercial banks might approximate those

The

Co.

FOR

Earlier in the year it was indicated that bank earnings would tend

has

1949,

assets

OUTLOOK

ex¬

of 196L There are two

change for Texas Fund shares. A

in bank

components

factors

for growth

necessary

earnings. One is the growth in deposits in the banking

that he has had nothing to

sys-

privately owned investment cotn- V tern and the other is uptrend in interest rates.
• '
But
whether
you're
on
Wall; say because neither he nor the pany based in Connecticut, An¬
in 1961 deposits have increased in the banking system some¬
funds his company underwrites sonia
had
assets
in excess
of
Street, State Street or La Salle
where in the vicinity of 4%. Much of this is due to growth in the
received
a
copy
of the $3,700,000 on the transfer date of
Street, don't expect to charm your have
time category which is hot always an immediately profitable de¬
Aug. 31, 1962.
associates by raising the subject Wharton report.
stalled

way,

•

595-page study of mutual

of the
funds

prepared

faculty people and the Government, which
School underwrote the undertaking, will

some

Wharton

the

members

of Finance and Commerce.

find

who

anyone

be able to justify the cost to

difficult

exceedingly

has

skimmed through the

Xitmayyet be that the Wharton

; even

study, pre¬

the imposing docu¬

But

payers.

tax¬

ment, at least until now, appears
to have stirred no interest outside

cost to United States the mutual fund executive suite.
is no one strong
taxpayers of about $96,000. And if Maybe .there
you know anyone who has actu¬ enough within the Securities and
pared

ally read it, this department would
his

obtaining

interested

date, a few have been un¬

grateful to them for,

Texas

Inc.

Fund,

annual report to

Fund

assets

with

$44,390,-545

against

$11.73

the

cess

earlier.

was

reported

impassioned call

for reform.

What is

that

market,

likely, however, is

During

the

period

same

In order to

the

with comments that may yet serve
to

undertaking

the

rescue

obscurity.

complete

almost

Since there may be
est

within

inter¬

some

hasten

com¬

cite

had

wholesale

found

and

evil

that the

sure

who

batten

have

taken

in Washington

men

With

Gone

the

-V

fjj There
critique

tho* seven-minute

is
of

M.^

LelSnd

Kaiser,

^presented last week at Pittsburgh
to the convention of North Ameri¬

least, the bulk of

the information contained in the
Wharton

has

project

been

$781 million)

(assets:

Wharton

the

calls

and Presi¬

vided

project

Professional Nonsense."

"More

Since

does

space

'comment

all

not

permit

these

the public,

it to themselves

owe

com¬

the Kaiser view.

obtaining

time in

the

copy

But

Kaiser

fundmen should waste

there

the

are

detailed

comments of Charles A. Schimpff,
President of the Investment Com¬

Institute. His views

pany

Wharton
the

lished
■

set forth to

were

month

last
their

fail

taries

should

latch
of

folks
to

the

(page 10).

this

field

the

Franklin

Vice-President

pub¬

and

entirety

"Chronicle" of Aug. 30
Nor

».

study

press

the

commen¬

Johnson,

Boston-based

memo

The Funds

Report

capital.

Send

reports

total

226,065

third

Shares,

Inc.

This

the

year.

$4.20

close of

the

the fiscal

equivalent

was

share.

end

31,

$25,-

assets

net

Aug.

quarter of

fiscal

the

Nov. 30, 1961, assets were

year on

$29,088,942,

equal

share.

$4.98

per

has "con¬

preciation in the first nine months
1962." It reports

increased

holdings

from

3.3%

14.2%

made

and

investments

new

chemical

the

account for 5.4%

the

group

of the total.

electric

light-

slashed

were

5.4%

industry

from

and tobaccos from
'

total

same

assets

date

the

latest

120 Broadway, New York 5,

was

pared with $8.25

Net

$7.28 at
com¬

the like date

In addition to this, the prob¬

lem of
^

gold

f&/fe6ep rates at least at the

fent1 level. Although economic forecasts are not
1963 the outlook for

Harold J

now

cur-.
publiczed for

housing, construction, and public expenditures
with these is prospect for much greater

corporate and municipal financing which means

greater demand

for capital funds.

King, regular

eco¬

nomics consultant to the Commer¬

Although bank operating expenses are up in 1962 this is due
principally to the higher interest paid by commercial banks on

andj'on our full-time staff
thereto,

been

just

investment

proper

{mortgage field)

were

491

value
per
on

Fund

re¬

July 31 total assets

earlier. The net asset

year

July 31, 1962, was $14.20

share, compared
Oct.

expense

exempts)

thr^jgj^

has been absorbed
loans

and

(expansion

and therefore will not penalize banks in

of Interest Rates,

•end

Chair¬

the

1963.

31, 1961.
'

Free Reserves and N. Y. City Bank Loans
Increase in

■

Department of

•

7,.

"■

■

7 ."

■

New York City

7
Rediscount

■

Jan*

Depart¬
offers

Mar*

ment

classes

Newark,

Dr. Harold J.

King

that

436

111

2.73

397

100

$531 *

2.73

418;
407

286

31/2

July 6

2.69

446

433

31/2

2.93

872

398

2.98

July 27

31/2

2.89

Aug 3

31/2

Aug 10 X—

King's expressed hope

Aug 17

Department can build ?a

Aug 24

bastion for sound
economic

Aug 31

than just another

343

2.97

reputation

research and teaching in

science—rather

the

for

Keynesian

propagation

socialism.

inquiries from

teachers,

214

2.73

31/2

new

$214

31/2

Dr.

the

arm

2.80

July 20

his

Professor of Economics.
It

2.73%

X.--X- 31/2

July 13

Prior

sity.

Over 19(51

(Millions)

31/2

Jun*

and

Free Reserves

31/2%

May*

Paterson units

Bill Rate

3V2

-•

Apr*

the

South Orange,

Bank Loans

Day
(Millions)

Feb*

The

iversity.

Rate

;

Hall

Seton

______

480

399

413

473E

442

2.87

330

533

31/2

3.80

351

608

31/2

-rvt

2.87

455

649

xx 31/2.
——j 31/2

.'2.84

7
v

„

X/7

407: 7.; w,R*,69®
729

2.81

462

XX 31/2

2.83

329

655

Sept 14

31/2

2.78

436

666

Sept 21

X--- 31/2

2.79

489

138

Sept 7

invites

Average

the

for

month.

students

parents who find themselves

National and Grindlays

in American education.
Dr.

Bank Limited

King, who received his Ph.D.

with .$16.52

of Pittsburgh in

for

ing

staff in

the

Prior

later.
time

1941, started writ¬

Chronicle

two

joining

our

full-

BISHOPSGATE, LONDON, E.CJ

1952, he had taught
of

Louisiana

eral

also

agencies

Newly
American

State

Telegraphic Address

Pittsburgh,

MINERVA

elected
Men

Fed¬

consulting basis.

for
of

Science,

Dr.

.America, and other refer¬

works.

...

Bought—Sold—-Quoted

Laird, Bissell 8 Meeds
Bankers
ADEN

•

KENYA

the Government in
•

UGANDA

•

ZANZIBAR

Members

New

Members

American

York

Stock

Exchange

Stock

Exchange

120 BROADWAY, NEW

YORK 5, N. Y.

listing" in

King has long been listed in Who's
Who in

LONDON

Telex Nos. 22368-9

University.

served several
on a

BANK STOCKS

Head Office
years
26

University

had

ence
■

N. Y. CITY

in Economics from the University

and

Mutual

$93,033,347, against $96,964,on

added

(tax

of 7the

Carnegie Institute of Technology,

in 1961.

Loomis-Sayles

N. Y.

earlier.

reporting period,

ports that

$42,740,374,

year

Free Prospectus and de¬

Established 1930

Dr.

ended July 31,

compared with $43,893,335 on the

NATIONAL SECURITIES &

rise in deposits in

concerned about socialistic trends

puts

RESEARCH CORPORATION

At Seton Hall

and

■

for the six month

scriptive literature.

r^ii^e' a substantial l$eas?urv deficit.

is favorable. Also allied

appoint¬
siderably changed the diversifica¬ ment, Dr. King served the Uni¬
tion of its securities held for ap¬ versity for two years as Visiting

for

■I

of the Univer¬

The company notes it

20.3%

today

not be

upwards. We know that there

power

with

Economics Dept.

Economics
Business

American

asset value per

fund

Dr. King Heads

man

Income Fund of Boston, reporting

mutual

may

1962 the interest rate trend should be

Acting

GROWTH

(through 1963) bank earnings should

Although there

appointed

they serve.

18.1%. to 6%.

trend upwards.

has

people and the customers

Holdings

securities selected for pos¬
sible long-term growth of

Over the longer period

in the first quarter of this

and approximates earlier prognostications.

to these

now

SERIES...

This compares with a decline of 5.1%
year

portfolio under continuous profes¬

prior

STOCKS

time deposits. This rate will most likely remain constant through-,

the

study written by Charles

MATimi

in¬

out 1962 and by now this

•

Yet another is the

•

running $11

are

1954,

of oil stocks

Wharton

■

1961

up over

million-is small when total loans

cial and financial Chronicle since
/

of fiscal

Colonial Fund.

increase in

some

the previous year but as yet this

ing the commentaries cited in the

canvass.

Then

common

investment

sional management.

over

to be armed with the facts. Read¬

mentaries, it would not be seemly
to dwell

■

diminish, bank loans should

foregoing should prove profitable

Securities, Inc.

of Insurance

dent

"He

Administrators.

Securities

and

> •

According to M. A. Schapiro & Co.'s Bank Stock Quarterly of
September 1962 bank earnings are expected to be off 1.8% in 1962.

pro¬

by the people in the fund
56, Mr. Kaiser is Chairman of field. * The folks in this field, es¬
Insurance Securities
Trust Fund pecially those who must deal with

can

unmanaged

stock average

of $400

crease

the

and to the press.
Until now, at

tween

see

particularly in the

the rise. It is obvious that there has been

billion.

would

headlines

Wind-size fndings to their hearts

few:
| j

could sink their teeth. If this study

grievous wrongdoing, you may be

in the

the trade

mentaries,

from

net free reserves

see

readily

one can

this figure

Although New York City bank loans may be

labors

Wharton

the

greater

increase is not substantial and has been offset by a rise in deposits.

Jones Industrial Average, declined

simply by 15.4%. It was pointed out that
say, making their survey.
These did not give the people in Wash¬ the comparison is for a selected
readers have been coming through ington something into which they short period of time and is be¬
so

result of

as a

rate.

remained

demand is usually reflected in ah-im¬

New York City bank loans

measured by the Dow

about

comes

rediscount

has also

available in the banking system. As

mony

last few months.

capital gains distribution in 1962.

banks

there has been little fluctuation in

$10.14,

Capitol Hill to raise this weighty

This

the

has

nor

charged

mediate lowering of "net free reserves" which Represents the ex¬

compared

year

increased

the prime rate

demand for money.

total net

$46,091,796,

bills have not

static. An increase in the rates

Aug. 31,1962.

reported

Asset value per

Treasury

Naturally

shareholders for

the fiscal year ended

Texas

interest rates mentioned above. As is evident below, the rates on

fund's

the

1961, after adjusting for the 490

covered. And the Wharton people
must be

posit area. The other factor necessary for growth is the uptrend in

Runnells, Jr., President

Exchange
document

identity.

Commission

The announcement was made
Clive

Branches in
INDIA

PAKISTAN

ADEN

•

CEYLON

SOMALIA

•

Telephone:
•

BURMA

EAST AFRICA

AND THE RHODESIAS

Bell

BArclay

Teletype 212

7-3500

571-1170

Specialists in Bank Stocks

6198

Number

196

Volume

Commercial and Financial Chronicle

t The

forgot that I gave

SECURITY. SALESMAN'S

ether

sell

500

the

broker

sell

order

make

Now it is

buy it for

delivery.

"And Get the Stock Too"

that

order

other

lines of business, partic-

firm

the

PHILADELPHIA, Pa.

can

Brower has been named

memory

with

them".

adjusted

finally

The

the

ness

memory

get

quite

was

delighted.

break in the market of 1962.

But- I

not

-am

referring

Mr.

The

was

greeted

was

labori¬

"sharpies"'when I state that many

warmly.

security salesmen have taken or¬
ders without anything more than

ously placed on the table and the
old gent had a check ready for

stock

referrals,

vestigation

the

part

the

When you deal with re¬

salesman.
tired

there is a prior in¬

individuals, substantial bus¬

iness

professional

men,

people,

and others who have standing in

man

did

This

they do not live

margin accounts with whom

open

not well acquainted, or
those who give you orders to buy
are

you

sell substantial amounts of

curities

cash.

for

you

se¬

are

doubt, politely suggest a deposit

hesitancy
to

this
to

you

area

sig¬

should

suppose

seriously

accounts

doing
it

to me by

tional 1200 shares?

these

sometimes arise, even when .deal¬

honest

ing with

have learned

he might
expensive lesson.

This salesman had
he

known

had

friend whom

about

for

five

elected

President

the

new

post

luncheon

Edwin

Barney

of mutual fund

the

and

training

Phila¬

a.m.
be

followed by a

which

Walter

Pearson

Co.

Smith,

charge

arrangements.

when

Unlikely; but

things have happened

In Your Business You Need-

be¬

cteljviery?

shares against receipt,

part

could

made

later.

wouldn't have

all

bother

part of

The

customer

given

him,

and

This

60-page booklet

help

was

you

and

partment
shares

salesman
the

this

the

sale

limit

is designed to

selling
popular
columns in The Commercial and Financial, Chronicle. You'll

weekly

learn about

was

later the trading de¬

reported

—

business through modern, proven investment

promotional ideas. John Dutton drew it from the best of his

Two days

available exclusively from us

—

increase your

selling techniques. Its 25 chapters are full of practical and proven

receipt

all

the order, or none of ft was exe¬
returned.

SECURITIES

By JOHN DUTTON

was

officd/ if

going to the post

;.«!

and if all,

sold, then settlement

were

sold

HOW TO SELL

Obtaining

* The initial sales approach

500

price.

client list

The

The final sale

The

immediately reported it

customer.

stock

Thinking

taken

was

that

categories of investors

various

rather

quickly and that there might

accounts.

how to

;

something in the wind, the sales¬

These

are

defined

—

and their

and you're told

develop each of them to their maximum

He would

years.

his
a

wife

man

and

several times

(socially)

He knew that his friend

for

This

man

was

80-years old and only in fair

health.

had

around and his

trouble

eyesight

getting
fail¬

was

ing. One day our salesman's friend
telephoned him

at his

office and

told him he would like to give him
some

business.

The salesman

was

pleased and he entered two

very

orders.

One

was

order

small

plied

his

minute

salesman.

stock

open

low

around

order,

sell

1,500

clerk

remaining
face

he said.
back

ket

the

he also obtained

some

order,

information

was

worked .off

not favorable.

300

phone

"sell"

In 1001 ways

the

to the

order clerk's

and

"Do

heard

the

answer

tomer, "It's O.
the order go,
cution for the

—

your

various

vital balance sheet items

Thursday

NOW at the

it",

and run a

this booklet can help you be a better salesman

profitable selling operation.
news

And it's yours FREE if you

edition of The Commercial and Financial

$20 rate.

subscribe
Chronicle
•

told

the

that if

his

the

trading

phone

salesman
it.

was

ENTER

YOUR

Enclosed is my

SUBSCRIPTION

ring

cus¬

K.," he said, "Let

I'll accept that

exe¬

(52 issues)

Plus

him, ."What

will

do.:

check for $20, please send me

over

12 months

Financial Chronicle

of The Commercial and

of "How to Sell Securities"
the single copy price.

FREE copy

saving of $6

—

big

Name.....
AND

WE WILL RUSH

•

YOU YOUR FREE

■"

Address.
COPY OF "HOW TO SELL SECURITIES."

1,200."

days later the old gent

YORK 7, N. Y.

TODAY

turned
the

FINANCIAL CHRONICLE

PARK PLACE, NEW

Gentlemen:

you

Going

COMMERCIAL &
25

City
Several

called

to analyze

use

attractiveness

the

mar¬

about the company, at his friend's

request, which

and

back to

can

relative

securities and their

the

"I've just sold

trade.

sell

replied

sold but he would try to

desk

the

The

the

last

back

can", replied the customer.

again

pertaining

—

customer that it had just that min¬

once

The salesman checked the

own

you

The salesman then rushed

back

market.

the

700.

dropped.

then current

the

line,"

cancel

unlisted,

priced,

"Just
the

Techniques

re¬

trading desk and asked the order

break the

was

potential

try

"Do that",

He rushed

The'

cancelled" to

and

cancel

I'll

the

hold

700,

700

elderly friend.

and

ute been

other

the

higher price.

to buy 200 shares of a listed stock.

"Good till

customer

might be wise to change

active trader in speculative

securities arid, did all his business

about

that

limit

with another firm.

the

his

year.

was an

this

see

suggested

man

French will speak.

wealth of experience

Munns, President of Smith Kline

He brings to his

the marketing

invited

Tuesday, Oct. 2, 1962,

The tour will

Sales

Wellington Company, Inc.,

been

Laboratories

starting at 10:30

Executive Vice-

Director

and

French

delphia

charge of sales for the
region

have

tour the facilities of Smith Kline

Brower

fore.

experienced security salesman.

Bruce

Securities

might need delivery of the addi¬

was

he had not known the pitfalls that

Pitts¬

was

■;

Members

—

Philadelphia

man

going to relate,

told

was

The

Association

the

December, 1960.

well.

however,

rep¬

mid-west

People get hit by trucks, go to

the salesman had in his brief-case,

The story I am

also in

was

become

incapacitated

he delivered the stock, the

And There Are Sellers Too

PHILADELPHIA, Pa.

execu¬

C."

individual.'

To Tour Labs.

against open orders to sell, "G.T.

ultra careful agreeable to this suggestion. He
before entering orders for such an signed fifteen stock powers which
nal

with

for

the account. Any cuted, the stock not sold would be

Wh£fi you open

sales

firm

to obtain possession of securities

Whaf. then? +HjO\y do
get
Wh^t aboutstock ^ tied
up in an estafe?
So, knowing- the
posit should positively be required score, he suggested to his friend
is frpm strangers, or. people who that he deliver the entire 1,500
community, it is very seldom
up to their
obligations. The only time
de^.

your

that

Phila. Sees. Ass'n

as¬

He knows what he is doing

is old.

but

thinking.

some

his

the last three years of this period
you are

Wellington Man¬

■

burgh from 1951 to 1960, and for

customer's word, for

Most clients are obtained through

resented

and his legs hold out.

the

organiza¬

tive.

busi¬

also continues

agement Company.

tion in 1935 as
a

Welch

President

Welling¬

ton

Mr.

Welch, who has

Chairman

an¬

sociation
the

hospitals,
and
sometimes,
even
substantial the two hundred shares of the forget they gave the same order to
stock
which
had
been
commitments
in securities,
and listed
another broker.
Then the sales¬
have never had cause to regret it. bought for him.
a

Board.

Brower

began

always advisable when you can do

When he called he

been

named

e n

nounced.

...providing the old man's

epidemic of shares he had sold, and he would
this' sort of thing during the six not be far out of his way. He ofReminder—When
months that preceded the May fered to do this and his friend was business
with cash.
There

has

After a Then the
salesman did some to "bust" the. trade, albiet as soon
while an
experienced salesman thinking. Why not go by the el- as it was consummated, not two
learns to;eliminate those charac- derly man's house and pick up the
days later) and it looks- like he
ters that come out of the wood- stock on his way home. He would is now
to

Joseph E.

been

Well¬

Company,

character and; integrity.

going

ceeds

subsidi¬

ington Man-,

price, .at or near his limit, ancT trade, but their
long time friend

and who try save him a difficult trip to the
to trade with insufficient capital, postoffice, registration of the 300

As
President
of
Wellington
A. Bfuce
President* Company, Inc., Mr. Brower suc¬

underwriter

St.,

ary

insurance and most then the bid dropped and he could and client was
very unhappy with
other intangibles, it is a rule of not sell any more stock at the
the fact ..that. it. cost him about
gdod salesmanship to' get a' check" price' his- friend • had • indicated was $500,00 to
straighten it out. Mean¬
with the crder. Howeyer. l have his limit.All right", said the
while, the "old pro" salesman had
found
that
most
people
who customer, "leave the order in, and
his delivery, he has gained the: in¬
opened accounts with me, or have whatever amount you can sell at
creased
respect
of
his
elderly
giv^n me orders to buy or sell my limit go ahead up to a total of
friend
(since he offered to try
securities,, are intrinsically of high the 1,500 I originally gave you."

work every few years

—

fields.

Wellington Company, Inc., 1630

Walnut

life

ularly

over some thirty
of pioneering experience in

the mutual fund and related sales

Wellington Co. J

gave

years

gave

point

just forgot I put

I
a

salesmen, gained

Brower Pres. of

to have

whom

getting short.

In many

time

same

over

order

higher and they told

DUTTON

JOHN

friends

broker

you the order.

CORNER

217" :

(1313)

Zone.

State...........

The Commercial and Financial Chronicle

(1314)

National

NEWS ABOUT

Bank

National Bank."

initial

Proposed

BANKS AND BANKERS

the

ture

total

$750,000

and

surplus,

capital, -$500,000

By M. R. LEFKOE

struc¬

will

consisting

$1,500,000,

••.

capital

"bank

new

COMMENTARY...

"Marn

A:,*: -I

$250,000 undivided profits.

Mendell

Ne\v 'jng

Bank

Chemical

York,

Trust Company, New

York

Harold

Chairman

analy-

became

office

bank's

Pla?a.

■

Mr.

which

was

named Investment Trust

Of-^.

1958

1950.

don

•*.

the

.Union

After

Bank

Borough of

Nassau

AAA;

branch

Mr.
in

.William

Cunningham

Manager.

The

Bank

New

pany.

Tokyo

York,

Truit

Com-,

affiliate

Thei Bank of Tokyo Ltd., Sept. 25,

midtown

branch

32nd

the

A
V, A.

the

City

Winston-Salem,

N." C.,into -the'

North

ef-

leetive on or after Sept. 21.,

Street and 5th Avenue.

the

former

Specie Bank. '
Taro

Boulevard, N

1 'Bajik of
; Miami, Fla., elected John Gier, a
a t

i;« n

has opened

fiee; between

Virginia

drive-in

White

Plains

Avenue

of-

Read

President of

was

1955

the-company's

the

National * B a n k,
San Francises, Calif., made John

partner

—

fice.

1959. a-

;

City,

Young,

Y.,

Trust

merger

Wheeler

Co.,

elected

Director.

|
The

•,;*»; ■.»«

- ; fif

Island

National

Garden

Burton
A

the

' /

„

lof

Inter-

San Fra«cisco, Calif., announced
the appointment of Robert C. Onas Assistant Cashier,atrtfiS'iaank's

Modesto Main office.

$2,100,000

Bank of

F. '

cisco,

$12,03O,OOOf First NatJonal

proval of supervisory banking

Calif.,

has

received

trol% ol the Currency James J.

Naglee with construction slated to

Saxon.

begin about the first of the

after Sept. 14.

1
enry

■

Dolch, Vice-President and

ending Officer of The National
bta

Bank, of

Newark, N. J., is

be
year

Comptroller
James

18,

that

»'

■

year.

Weicker

sion

director

ual

has

prelim-

inary approval to organize

new

iVi

Dcmiinidt/ InternaHonal
w

The

have

pany

was

California

three-man board

study the

called

the

which

labor

companies

the

Field

Ralph A. L. Bogan, Jr.
appointed Manager.
He"
associated

Blunt Ellis & Simmons.

with
•

•

• ap¬

alleged

af¬

gives

necessarily

successes

the

Americans

Union in

is far behind the Soviet

achievements.

space
A "

\
*

Political Fealty

arid

recommended

that

demand

that

the

accede
a

"union

polit¬
contains
disclosures which

George Gallup to determine

ical'" party
some '

all

preferences

Startling

businessmen

should

carefully.

study
-

outside- the

the

South, the poll

voter preference for

breaks down

Republican

Democratic «and

parties on the basis of the voter's

in each com¬
occupation; Professional men and
part of the new labor businessmen indicated equal pref¬
Then, the President told a erence for the two major parties,
a

conference that if the com¬

strike

occurred,

"The

re¬

think, to the American people.'A

disclose

Kennedy
his

failed

statement

which

relayed to the American pub-

lie is that the "union shop"

coercive device used by unions to

their

36%

each

favoring

party.

of those

responses

The_ remaining 28%
interviewed called them¬

independents.

selves

;

•

Thus, somewhat more
third

Individual Rights Ignored

What, Mr.
was

;

conducted

be instituted

sponsibility would be very clear,

poll

recent

Covering voters in all of the 37

Chicago,

formerly

reared their-

panies refused to heed the report

invest&

Russia's

firm

public

firms accept the recom¬

board

press

New Yo"k the
®t0ck Excha"ge' hf
announced
opening of
announced the onen.ne of an of
an ofin

has been

again

companies

shop"

other."

President's

the

but

states

I
Y

the Currency Building.
granted

closer

never

each

claims, and that the United States

involved.

pact.

„

were

parent willingness' to quickly

•

IJI <111 vll
r\

most

International courtesy is a fine

thing,

al¬

President Kennedy requested

tracking

finest- and

miles of

rights in America. Two weeks

were

Dominick Opens

apo

with., "che

concern

union's

and

the world—says that

100

than

President's

the

and

mendations

Company.

in the satel¬

even

American

satellites

the

late

ugly, head in choking off individ¬

the

condition

shaky

"Public Interest" Again

The

he had

Development

fice

Saxon, announced Sept.
he

advanced

spending,

and in early 19o3."

aerospace

Tidewater Oil Company and Mis¬

au--

nounced

The merger is effective

v/ill

each

trips

Nikolayov

Messrs.
were

equipment—the

of 602 firms in¬

business

;

twins

ago.

And

lites.

of the economy's major props,-

one

ago

;.A.;:;r

ap-

ZEfSXrtrZ I' T an- !n°teS .Jose at Alameda °ffiC!
eStabiS^ tHir,d and
Sept. 14 by the Comp- m
San
or

that

weeks

Popovich

decline in appro¬

full survey

salt

space

orbiting

their

cate^ that

ment.; Newsweek commented that

dicates

this

grain

Soviet

They; say, first
all,'there is no proof to indi-

that

16%

"the

with

take

story

three

for

their

back

cut

that A f our V Southern

January,

The Bank of California,.San Fran-

laken, Interlaken, N. Y., into the
Bank of

Mr.

syndicated
ago, Fulton

"American sci¬

He stated:

other

indicates that the slash

dispute' in
rru

Board

involved

inierest"

Parkchester section of the Bronx.

Long

sharply

she

first > managing

the

partner of that firm in

claimed,".

nationally

passed within three miles of

ap¬

The report

leged

administrative affairs.

Manager of the San Francisco of-

-United

and whether

Nikolayov and Popovich that they

iMagazine -shows

•A Politics

im¬

whether

the

impression that our scientists have
confirmed
all A of
the 'Russian

Hutton & Company as a general

Vice-President and! He-became

the

capital

survey

could,

validly

question!;

space

his a

entists

the

before

during the second quarter manu¬

this

activities,*

returned

'Weicker'

of bed this

Conference

Mr.r

"One

isr. beating

display .of point.

and

power,

facturers

Squibb.

-after'1 playing

that

feats she has

periods- was

Newsweek
,

portant role in the global expan¬
Mr.

Crocker-Anglo
S. Ehrlich,

the

in commenting

actually performed all of the

has

spent

Industrial

the

that- time

and

Fiction

ago,

should,

States

propriations made by the National

Chemical
1

into Mathieson

Corp.

nation's, space, program,

our

Russia

ex¬

market fell out

stock

\
V"*
AA ; :;
Savings'-Bank, New

^2, Squibb was

merged
J

sion

contribution

its

and

Tow weeks

warned

and

shocking

executive

his graduation from;

:war

Fact

have

money

two

unions

their record of protecting the

"public interest?"

during

help

forced,

labor

will.

crease

and investment bankers. In 1939,
joined E. - F. .Hutton & Com-.
PaQY as a general partner, leaving;
in January, 1942,^ to rejoin E.. R.
Squibb & Sons to assist that com-

^r^ce~PresiJ6nt.

midtown branch.

new

Dollar

York,

and;

" A.

Neki, Vice-President will

Manage the

The1,

Yokohama

The

these,

House

He received his early busi-

Weicker

The Bank of Tokyo, Ltd., is sueto

Exchange for other firms/banks priations for new plant and equip-:

cessor

" an

surveys

expenditures

appropriated,, before 0the
Whit,e, cclh'Ain -just ' a week
"killed the steel price in¬ LbWiS, yJr., " elaborated

Theodore Weicker, Jr.

1930, he acquired a member-

pany,

AecomeV

will

Char-

>/v-

^ Merger'
f

Carolina,"

■

;

will

become

quarter

quarter.

dqring

Weicker & Company, specializing
in handling transactions on the

Sept

$27>6OO,O0O

the

•

loss

:. -

space

rights by the work¬

their

against

change, then formed the firm of- plans for future capital spending.

-y,.

annroved

•"

;-,t..

second

the

pected

ship in the New York Stock Ex¬

announced

as. a

our

this what
usu¬
Mr. Kennedy means when he says
nine that he and his
party will stand

once

plans

government

third

experience, in industry
well as in the securities busi-

AAAt"8

substantial

ness experience-at ^E. *R.-Squibb spring.
& Sons, manufacturing chemists,
A recent

the

$248,100,000 First Union National
lotte

•

ness.'

Currency'

the

gaxon

■

Winston-Salem,
Bank

ing

continue,

bank.:

N-aUonal Bank

formally opened the doors to its
new

joined

Cashier

wUI

•*

m^ger
i

•

...

bank

James

Ma-

his banking

began

Comptroller

honey heads the branch's Personal

re-

m a ny

years

for; a 'strike

into

forced

and-

University, Sheffield Scienti-.
Presidentand^Director fic School, in June,, 1925,

1933.

Finance Department.

has

111.,

1929, Mr. Haase

Director

Assist-

Thomas

National

in Chicago in 1915.

tome
jn

com-

assisted

Haase

Winnetka

Plainview,

York

New

any

bank.

First

The

Winnetka,

career

County, the first suburban

mercial

ant;

tie

of individual
ers

reported actual expenditures dur¬

tion

by the Presi-

onus

elections.. One

fall

the

it is almost impossible for

-The

;

new

half-century

been condemned

however, to wonder about the loss

corporation to cancel a project

without

re¬

support from labor unions during

approved by

and

;

which

a company

Furthermore,

moneyvi.

to his'
affilia-

brings

tired, effective Sept. 15. y

Turnpike from

branch

nearly

Chairman

Queens facilities.

to Union

;• Mr; Weicker"

banking, Edward C. Haase, Board

St.

:-y>

hiring

corporation

which,- would

crucial

six

for

spent

project

fixed,

has
A-

from

dent,, and the

appropriation is mape for a capi¬

Ex¬

not

tal

agree¬

the Administration win additional

appropriated by

company.

120

or.

nounced.

First National City over 33 years,

comes

Stock

been

The branch is

A-Ay

new

ally

Broadway,
Y

prohibited

shop"

earlier program, has >bedn shifted to the

neglect

surveys

is that there

months after being

high

for capital expenditures are

mem¬

change,

95th

Manager S. Henry Morda, with

Company,

•,

President, a Eirectoi\. 1

Parkway

campus

new

Queens.

the, bank's

A-'.'.

New

its

at,

the bank's 19th in the

the

■-

Funds

committee

quar¬

^ditures and capital appropriations.

of ;

Reynolds

111., elected John P. Carney, Vice-

Bank,

Utopia

John's University.

heads

■

Thus,

difterence. between (capital e^pen-

the New York

opened

and

opposite

firm

these

mention

members : of

metropoltan,,-..branch

Turnpike

invest-

the

ment

Gor¬

the -executive

Gateway National Bank, Chicago,

City

20,

Sept.

elected

Co.,

Michigan Avenue National Bank,
Chicago, 111., elected Wallace E.
the National Carroll, a Director. ^
'

National

York,

Trust

Jr.' as

general partner and

ber

■

Director, succeed¬

Theodore "Weicker,

New.

-.-"0,A

Y.*

First

"A-A*

senior
*

ing the late Frank H. Bonnet,

Ulster Counties,

Bank of Orange &

Goshen, N.

or '

on-

"union

the

under

company,

indi¬ fuses to give up its hiring rights

Big Difference

What

A,A*'v';

Assistant

1959.

Director of

Ohio,

•

ttt

•

Frederick,- The proposed admission on Oct.. 1

A;.'* A

em¬

a prospec¬

year^Aand ; appear . to ;have companies involved.
prediction wrong. "
Perhaps this - action

'A,'- v.'

ACLHllt WeiCKer

$47,600,-

effective

Md.,

Jeffiffe,

Mr. Mur-

and

1956

Vice-President in
rays

DAttvinlr]a'J?r Pa
^jr I1UIU.Q Q6 v^U•
rTV

not.

proven my

.....

appointed Assistant

was

Secretary

Frederick,

Columbus,

Murray joined the bank in

Mr.

an-

Em-

this

forecasted

generally

Mechanics-Citi-

Bank

National

City National Bank

Vice-President in

/;v'•'

•

14,

nnn

the

terms

expenditures has

probably

company's

employee refuses to jqin the

union,

the part

have

agencies

would

ters

tive

an actual re-; ment,
expenditures." him.

capital

they want to

taken by various

surveys

that

"»f. ^lm " Asnn
capital structure of $500,000.
'

capital

government

approved the

into the

Md.,

be¬

Division.

Assistant

1959.

Hecient

■

all

ployees to join the union, whether

probably

^^^tll cri¬ dqrihg the second and third

Mj!,

Currency

Emmitsburg,

after Sept. 14.

Metropolitan
came

joined the bank in

Assistant Secretary in the

Sept.

Saxon,

Bank

zens

1959.

Mr. Mendell

the

parmers and

qqq

'"
j

mitsburg,

in 1959.

ficer

cated

State

•

g^te

merged with Chemical Bank,New
York Trust Company
was,

duction

h1; merger of the $3,300,000 Farmers

Company

Trust

of businessmen, and

Currency

the

force

controls

would

retrenching

Comptroller

1956 he moved

nounced that he has

New

The

joined

National

Comptroller
james

Rockefeller

Burleigh

York

the

with

Murray

induce "a

proval to organize, Sept. 18, from?;

Vice-

lending

Street_Off ic£ in.Brook

Mr.

was

to National State's main office.

Rrnnir

part

Investment Bank in 1955.

Department at 100 Broadway. Mr.
Mendell is in charge of the bank's
Court

1922,

charge

this

engendered

government

regulations

and

sis in the bank's Trust

24 .by, operations with the main office of James J. Saxon.
Helm." Mr. Lincoln National Bank, when it A- -•

Burleigh heads investment

career "

President

Sept

announced

was

lyn.,

uncertainty

III have
dents

Oliver M.

Jr.,

earlier

I predicted that the fear

increasing

marking his 25th anniversary with Organizers of a proposed new Naand Francis ,;W. Murray the bank this month.
/ ;
*
' > tional * Bank Ain
Pleasant
Hill,
been elected Vice-PresiMr. Dolch, who began his bank- Calif., / received "preliminary iapBurleigh

occasions

several

summer,
and

John

Thursday, September 27, 1962

Rafdel,

San

under the title of

Calif.,

business

of the

sional

people

that the

and profes¬

surveyed

indicated
served

party which "best

the interests

selves"

than one-

was

As many

of people

like them¬

the Democratic party.

recent columns

Volume

have

196

Number

demonstrated,

the

profits

being

attack'

work,

the

say

persistent

least,

and

downgrading

will

busi¬

Control

purchased by Mr. W. R.

was

Arkansas

Louisiana

ture of air

The Security #

Service

I Like Best

later

in fiscal 1962

per

$0.49 in 1961
outstanding;
its

goal

annually
with

on r shares presently.

greater increase pos¬

product

after

vestigation of the
its

areas now

customers

thorough

in¬

comply with

the

other

utilities.

new

1957

models

and

have

number

been

oped. The Arkla System

devel-

sells

now

com¬

the

own

original

;

also

company

provisions
tracts.

only

gas

general

Stevens1 soon hegan

subsidiaries

production

not

company believes that

ye'ar*.

handle

now *

"gas

form of
tures.

sition

competition 'the

/*■

air

etc.;

The

now

mortgage bonds

Gas

Producing# Division

;

provides

about

one-fifth

con¬

its

areas

Scientific-Atlanta

competitor,

field

operation.

has

whose

direct)

one

annual

likely

pear

continues
lanta

that,

Arkansas
record

Louisiana's

include

earnings

period

increase in share earnings
22

cents

1954

(with

gains

lowed

petence

and

sales.

maintain

chosen

reason

com¬

gas

from

civilian

certain

being classified

the

for

this

sales

direction

directly

are,

the

directly,

the

contracts.

vulnerability

this

Dorado,

military

Bluff.

cities

40%

and

the

rapid

—

******

its

1959

year)

37 %

help

service

eliminate

area,

which

"regulatory

a u

sales

1956,

previously

editor of

Co.

authority

months

$1.69

was

cents

ended

reported,

months
but

pects

the

1961.

year

(on

below

June,

1962

increase

not

made
1

adjusted

for

ex¬

calendar

than-1961,
resulting

1962

but

official

any

savings

basis)

The management

better

Tax

Stockholders of

only,

$1.76 for calendar

earnings

the

over

has

'Individuals

who

their name but
owners

depreciation

are

nor¬

cently in
26 V?.

new

re¬

Institute

compared

with

nearly 45.
dend the

the

Based

Howard

bulletin,

preted."

this

year's

the $1

approxi¬

mates 15.7 times recent earnings.

jnor.

shows'the

case

paying

its

present

defense

program,' isolated

space

contract

tions

large

changes

would

and

have

company's

little

military

over-all

acquiring

by
Gas

Cy-

•

customers

other

mon

utilities.

gas

acquired

Utilities

business

pattern.

expanding in the utility field,

In, 1960

cancella¬
effect

diversification, the company,is

also

and

★ The 1962 Fall edition of

our

1099

dividend

and to whom

Internal

Consolidated

years

serving about 84,000

and

Natural-Gas

1961

Southwest

MidSouth

and

stocks

(record owner.) The
Service

Revenue

1099

against

owner's tax return.

If there is

audit.

of Canadian listed , and unlisted

com¬

longer. It includes corporations and banks which have paid

Gas,

the two serving 90.000 customers.

y.t;

Currently the

of sales

approximately

research

and

velopment, in addition to
ment funds which

able

defense

contracts.

antennas

continues

company appears

various

the

devel¬

utilizing

grow,

to be in

prime

position to take advantage of
opportunities in such
derseas

warfare

the
new

areas as un-

communication

share.

detection

techniques,

sophisticated and

advanced

telemetry devices and space
munications.,

\ -\j

and

com¬

y. V '

Scientific-Atlanta,; Inc. stock .* is
traded

the

Over-the-Counter

Market.

The

over

about

toward

building

miss

Bank

think

of
a

this

before

opportunity to advertise your Firm, Corporation or

important issue. Please reserve your space requirements

closing date of October 8, 1962.

"con¬

chemical

v#7y/7

complex." Arkansas Cement Corp.
has

the

work

and

real

cents

management

tinues

★ Don't

1961

10%

earnings of $1

net

gross;

sales

million contributed

enjoyed rapid growth and the

Regular advertising rates will prevail
for space

in this important issue.

capacity of the Foreman plant is
now

being

doubled

$7.5 million.
one

and

Chemical

$13 million

system

with

technologies

Arkla
were

de¬

govern¬

made avail-,

are

connection

opment

spends

company

amount equal to

the

future

cost

The expanded plant,,
most

United

cents per

fully automated

THE COMMERCIAL & FINANCIAL CHRONICLE

States, is expected

contribute about

share to net earnings

25 PARK PLACE, NEW YORK

more :•

than -double

amount;-.'

Arkansas
also

been

the
<

Louisiana

Gas

7, N. Y.f

■

or
•

1961
\

has

active in the manufac-

RECTOR

2-9570

will

record

entry, the likely result will be

which cash dividends have been paid uninterruptedly for

to 133 years of consecutive cash dividends.

file

must

showing amount paid

CANADIAN COMMON STOCK ISSUE

will present an up-^to-date resume

arid

paid. The corporation

the

In addition to its broad program

general

■

name

owner, name

Will Be Published October 11, 1962

Rumpf,

corporation, number of shares

divi¬ •check Form

yield is about 3.8%, and

price-earnings ratio

care¬

"Taxes:? Inter¬

;"V#

address of the dclual

low ground, around Form

high of 43 and last year's high of

file

author of the Alexander Hamilton

stock has been selling

lessness may result in a tax audit,

according

and amount

The

stock

riot the actual

Otherwise, their

Form 1087
ac^

hold

are

remember

must

Form 1087.

estimate.

from

malized.

and

consolida¬

1961-'earnings'

slightly/above the 1959 level.- In
the

Warning To

THE CANADIAN COMMON STOCK ISSUE

associate

was

■

12%, industrial

customers :-11% ;

since

Barron's.

rev¬

spe¬

cialist

Hammill

and
now

gas

live

o mo

industry

Walter Mintz

;

chinery and

are

Rock,

IVjl

fol¬

the,utility dm-

£lc,\«?e
reports thatdhe
rfSulatory atmosphere in the five
states » whlcj1 it operates "is

conceivable

the

Shearson,

re¬

departt

from

$1.72

each

period

tion, .with

being developed; celerated

where

areas

Mi ntz, m a-

,•

real.

abandonment by the United States
of

extending

Among

Texarkana

'public

miscellaneous

is
the

reserves are

theoretical- substantial
part of the industrial
The company's instru¬
sales are for boiler fuel in electric
mentation enjoys such widespread
utility plants.
- ; :'•# -f.j
• ~7
and general usage
that, except in
appears

than

390

served

Little

Residental

about

said

are

the firm's
on

Texas,

Kansas.

enues, commercial

connection

ed manager of

north¬

eastern

Wichita,

provide

However, the company's

result

Arkansas,

and

principal

Pine

in¬

Shreveport,

company

cus-

1,700,000

over

Oklahoma

further

present time roughly 80%

total

gas

nearly all the

Louisiana,

ern

the

interests

'reas0"able an/ responsible " It
15-year contracts ncT ha? Purchased^ gasveost adas non-utility;
justment clauses in effect^ in

under

lation

business and

plans

development in

other

divided about

Natural gas is served to a popu-

•

amount

commercial

important

and

are

to thirty large industrial

communities

has

oil

Revenues

tomers

and

areas

Although the company has de¬
a

construction,5

and

non-utility operations, the sale of

its excellent customer contacts.

veloped

about The- company
pipelines ' into
new

ap¬

where

revenues-firom

its

Scientific-At¬

technical

its

ty" 1 obtaiH^.
two-thirds

Basin

substantial

to' have "a tremendous future."

half and half between utility and

able

specialized

ijts

has

■.

market

the

dominant position

would

grow

should

antiques.

manufacturing

mately one-third of the volume of
It

the

entered

sales

volume is believed to be approxi¬

Scientific-Atlanta.

even

has

appoint¬

templated at. present.

River

has

■•been

deben¬

Ex¬

change,

consid¬

equity financing is

system, gas heeds, and has: dCvel-

fiberglass

dominant po-#

Stock

$188 /million

New

City,

members

;

for

V the New York

and

are

gas

heaters,

of dement;

lights and
to

York

con¬

pending

case

analyst

-Street,

air conditioning units than
System capitalization is con¬
othc-r utility; they expect to
sell# 2,000 residential air condi- servative with about $80 million

occupies

;'7/-V'

system has

regard

senior

community, Laurance Rockefeller boats; construction,of pipeline and
oped system^ reserves of some 4.3
associates purchased by pri¬
distribution systems; and •the* fitrillion cf, without including some
vate placement 10,000 shares of
nancing and sales promotion of new'
reserves
in- eastern, Oklathe company's common stock and
gas-fired equipment, and appH-'homa.
Undeveloped acreage un-'
gave
the company >a five-year ances.
The Production, and Ex,der. lease, now:
exceeds
405,000
commitment to lend it $150,000 in
plcration: Division is developing acres vs.
170,000 eight years ago.'
subordinated
convertible - deben¬ sizable oil
production. >-The comDevelopments in' the Arkansas
tures at the company's option.
•
pany has popularized outdoor gas

company

Mintz,

Shearson, Hammill & Co., 14 Wall

investmerit.

great importance.

any#

and

Walter

rate of

industrial

rates which

ered

its

Names Mintz

same

has escalation

At present the

one

retail

Shearson, Hammill

for diversifying into various

conditioners,

technical

The

debt

products; manufacture of

company among

and

about

production cost plus

return

vje £as> industry is on the verge
classed as* non-4utility:" recovery ^
? major/breakthrough in vcapof natural gasoline and other de- hn*ing a substantial part of the
rivatives;/productioh of industrialand heating
chemicals; retail marketing of oil market«

development.1'
1960,

of to

was

the next few years/ the following activities which

new

obtain

can

recog¬

equity,
tins# year vs. 1,505
making' the equity, ratio about
^ yea^; In the first -seven
57%.- At present financing is be¬
non-utility fields, most of them m°nths of this year, Arkla Indusrelated in some way- to the gas *nes increased both gross and net - ing taken care of with bank loans
which :may later be funded in the.
business and its markets. Wholly20% over last
Mr.

owned

growth rate of 25%

an even

under

with'

compared

acquired

Act, he has continued to( act

gram

were

Management has set

over

sible from

earnings

then

Chairman and President.

the pre¬

over

vious year and net

:l|

1953, and while most purchased in

stock

disposed

pany

page

the

Servel's manufacturing plant was

the Public Utilities Holding Com-

$0.65

pany

conditioning units for

sale-by itself and

Stevens and associates from Cities

38%

OWEN ELY

Arkansas-Louisiana Gas Company

less

Gas

from

"fair

generally

"going price" for its

committing economic suicide.

Continued

is obtained by other producers in
that area, instead of being limited

nothing

value"

nized which means that the

leading

position

adjustments;' More¬

the principle known

field

own

into

rate

over,

free

amounts

power

lag" in

the

exist-as

destroyers
than

not

(1315)

the

actively vote one's

nessmen
men.

The Commercial and Financial Chronicle

dirty

collectivist state where

official

free enterprise system are
to

6198

•

determine

Role of Municipal Bonds in

what

Portfolio of Country
Continued from page

52%

within

over

municipals
to

interest

bracket

for

even

maturing
depending

years,

rates

6.5%

time of pur¬

chase.

portion

the

portfolio should consist of munici¬
pals. No doubt other ratios can
be found,

the

Chronicle

The Commercial and Financial

(1316)

Bank

(7) All of the return from mu¬
nicipals is not tax free. Issues pur¬

seem

although the following
the

cover

which country

sider.

points

major

banks should con¬
be analyzed

should

Each

individually, although still related

risk

be undertaken.

can

thousands of issues in the market.
In many instances a series

of one
yields (discount
or premium prices)
can be pur¬
chased.
v
"X'"X".
;■/'' ? V?/
(3) The market in municipals
has
expanded
immensely
with

issue at different

hundreds of dealers

dealers

well

bank

supporting deposits. If other fac¬
tors are favorable^ and time de¬

liquidity and
they enjoyed
the past, and also tends to bring

great deal more
marketability than
in

bid

asked

and

prices

to¬

closer

gether and tie this market closer
to other security markets, making

discount

present

discount bonds.

the

Several

whole.

some¬

are

what interrelated. Below

informa¬

other vital

and

states non-member
banks can use municipals of their
respective state as part of their
legal reserve requirement, there¬
by
providing
tax
free income
while acting also as a reserve.
(4)

some

(5) In many states where gen¬
obligations are purchased by

eral

banks, the 10% of capital and
surplus limitation can be avoided.
This

also

true

for

all

in blocks of
blocks

$25,000 and up. Small¬
mean a slight

usually

concession when sold. (The latter
is true, however, in many instances
the

in
not

government market,
significantly.)

In this sense one can say

ket

This

due

brought

list¬

are

nicipals.

cushion

...

(8) Risk
assets
times capital
(including reserves).
(9) Loans as a percentage of

outstanding, no two being
equal in every respect.
(11) Municipals are generally
not eligible collateral for borrow¬
ing from correspondents or the
Reserve banks at the current dis¬
count

rate, although they are eli¬

gible

total assets.

loan portfolio.

(10) Cash and governments to
total deposits.
(11) Maturity
distribution
Of
governments — considering call

favorable

features.

(12)

diversification

be desired

by the purchasing bank.

the

(7) Because
of
amount of wholly

smaller

Banks
ceive

the

52%

the

(13)

bracket

re¬

from

municipals, although in some in¬
in

banks

stances
bracket

normal tax

the

(30%)

can also reap sub¬
benefits.
Many
smaller

distribution

Maturity

(14) Rating of m u n i c i p a Is,
quality and type of market status
(local or national names as well
as block sizes).
The

most

benefit

greatest

se¬

Other securities.

difficult

most

be answered

Tax Position of Bank

"other

Percentage

curities" to total deposits."

important, and

others
Here

tive

face

too

are

offset

favorable.
problem of rela¬

are
a

weights.

are

can some un¬

factors

which

question to

which factors

very

combinations

The

numerous

—

the

trained

ing, short term municipals might
be purchased with the intention
of slow liquidation to meet such

If other factors are

and

mortgages

are

demand.

partially

June 30, 1962.
(8) The safety record of mu¬
nicipal bonds is favorable: even
on

during

depression approxi¬
mately only 2% of the total out¬
standing issues failed on interest
the

principal payment. Even these
in most cases were eventually re¬
paid, and since that period the
or

number of such failures

has been

bracket

size

because

their

small

through additions to bad
debt reserves or security loss sell¬
ing (up to the surtax bracket)
or

when

municipals

buying

make

certain

that

should

discount

municipals are being purchased,
after-tax yield should be at

the

specialist,

weigh
In

(9) Municipals can be used in
switching programs. One ad¬
vantage here is that sometimes
closely matching issues can be
found because of the large float¬
ing selection available.
tax

All large issues

are

rated

by the two major rating agencies,
independent of one another.
Major Disadvantages of

other
The

relative to deposits. If this is the^ ward
case

and all other factors

fav¬

are

tion purposes.

(2)

They do not have the de¬
gree of marketability and liquidity
which government securities pos¬

the

52%

Banks
should

bracket.

the

ties

sell

able

gains

only

taxable

are

difference

the extra

not

banks

the

this

In many instances they are
not eligible as collateral for public

vantage.

Legal

opinions

financial

required

and

other

information

are

examining agencies.
issues, up-to-date finan¬
cial information may be difficult
On small

obtain

is limited.

Many good issues, because
relatively small size are
not rated, thereby restricting the
amount that might otherwise be
their

purchased.
(6) In many instances, for local
issues, even those which are rated,
only a regional selling market
may exist.

Banks

some

the after-tax

yields

tificates

how

they
before

municipals

pare

see

Relative

Position

deposits

15%.

1.
1.

to
5.5 to

total

3% to 6%.
N
Average maturity

(14)

80% general market

ratio.

Each

the

aid

can

with

of
a

individual
various

bank

with

considerations

high degree of

success

are

The higher time deposits are as

total

other factors being

larger
folio.

deposits,

favorable, the

be the municipal port¬

can

the

well

the

bank's

loss

would be in order.

rates

The "hard core" of deposits

from

can

Interest

participations

can

demand

where

and

loans

earning
tend

call

for

not/forthcoming,

decrease. This would

be offset by fixed income

portfolio

municipal

over

the interest rate cycle.
Loans Times

Capital Funds

and their fluctuations need exami¬

Large

demand

deposits
Municipals
should not, however, be used to
adjust the bank's position for de¬
posit
fluctuations.
Primary
re¬
attention.

need

should

cover

this

area.

This ratio
gree

Other
lower

factors

ratio

this

that

municipals
low

ratio

under
a

Capital Funds

here

some

favorable,
the
is, the more in
can
be held. A
places .the bank

earning pressure, but

strong capital position some

measures

some

de¬

the risk of depositors' funds

tied up

in loans, relative to stock¬
holders' equity. Generally speak¬
ing, the higher the loan volume
to capital funds, the less willing
should

Deposit Time

because the
to

the

higher the risk assets
capital, the more profitably
is being utilized.
Under

new

this

the

loans.

ratio

bank

conditions

above

one

making

It is quite possible for
to be high while the

ratio

under

investiga¬

tion the other should also be

con¬

sidered, since

por¬

tion

risk

one

refers to

assets

munic¬

and

should be reduced
government portfolio im¬
and increased.
The mu¬

the

proved

nicipals

should

somewhat

the short side and highly market¬
able.

Percentage

Total

Generally speaking, the higher
the

percentage of assets tied up
the less municipals should

in loans,

be held. In most

cases

depositors'

where loans

significant portion of total
deposits, they, are also a signifi¬
cant portion of assets. Where this
is the case,
and loans are also
found to be high relative to capi¬
tal f'mds, the liquidity position of
the bank becomes a major ques¬
tion. Where such is the case, the
cash
and
government
position
are

should

increased

rather

than

the

municipal portfolio. On the
other hand, a low ratio of loans
as a
percentage of total deposits,
along with other ratios which in¬
dicate a conservative position, a
portfolio of municipals might be
considered.
When loans
amount of

represent

sizeable

tjhe assets of an institu¬

tion, the
portfolio

cash and government
becomes
significantly
important because it is now help¬
ing to support a fully loaned posi¬
tion.

loan to deposit ratio is low. Where

the

ipal portfolio

ratio to

over-liquid loan portfolio,
factors
being
favorable,
might indicate a municipal port¬

other

Deposit Structure

loan

other

change,

percentage

such

between

latter's struc¬
capital.
Doubtful

(and

folio
names,

remainder local.

serve

should consist
of municipals, a variety of factors
need be considered, there being
no
single rule of thumb or set

extent

commercial

years.

also

portfolio

call

years

In determining what portion of
the

experience
over
a
number
of
should also be examined.

3 to 4 years.

com¬

Municipals

correspon¬

some

the over-all

and

loans

(12)

com¬

In Portfolio

ture)

%to 50%.

nation.

mitting funds.

prevailing, it could in¬
capital, but this tends to

crease

commercial
loans,
and Loans as
mortgages should be examined, as
Assets

(13)

and equipment cer¬

agency

10%
4.5

ob¬

forms

than

balance

loans.

52%

the

short term corporates, govern¬

ment

well

ad¬

high tax penalty.

examine

40% to 50%.
8 to 10 years.

liquid

40% to 45%,

capital gain selling because

(5)

with

Banks in the 30% bracket should

(4)

current

done

bracket should watch out for short

also

other deposits.

can

Where the bank finds the above
.

loans,

(11)

profits only during profit
and losses should
not be mixed except in the case
of 30% tax-bracket banks where
Profits

their

which to

45% to 50%.

finding

banks,
difficult

loans

different

into

loans,

(9)

years.

portfolio of municipals might be
reduced (or loans called or not
increased) i since this is usually a
period of straining ratios.
1 *

capital

enter with

tain,

60% to 70% time money.
8 to 9 times.

(10)

discount municipals mature or are

sold

Bank

of mostly mort¬

country

(6)
(7)

that

loan portfolio relative to

(5)

52%

risk

the

are

gages.

dents

(8)

make certain

find

capital ratio high, with

(mostly mortgages) repre¬
senting a large percentage of the
risk asset classification, and loans
high in relation to deposits, the

Loan

bank

loans

portfolio made

(4)

waiting period.

assets

dilute earning. Banks in many, in¬
stances are against such moves,

(3)

warrant

the

downward.

deposits, consisting of mostly call
loans
and call participations is
more
liquid than .a small loan

Many
County

conditions

A large

(2)

capital
25%. The

may

made.

(1)

while

30%

are

No.

for

the short term gain is tax¬

range.

below

municipal purchases

Hypothetical

bracket

profit purposes, either
municipals or government securi¬

of the

(3)

and

given

factors

our

Factor

30%

hesitate

not

illustrate

Percentage

Portfolio

commercial

short term

term

sess.

and

premium

par

bracket should

factors

ratios

obtainable

help

Should

can

one.

least equal to or better than those

(1) Except for public housing
authority bonds, municipal bonds
are
a
risk
asset, regardless of
rating and maturity for examina¬

major

order

favorable for

Country

Municipals

however,

point a table of the factors is set
up below for a hypothetical coun¬
ty bank indicating its ratios and

issues. This is also true for banks

negligible.

(10)

stantial

significant portion of loans, but
loans to deposits are only average Risk Assets Times Capital Funds
or low, municipals again may
be
Measuring risk assets to capital
in order. Should the loan to de¬ funds will give the bank a general
posit ratio be high and mortgages over-all picture of the size of risk
a significant amount, new munic¬
assets being supported by equity.
ipals should not be added, the Generally speaking, the higher
liquidity position again is fairly this ratio stands, the less sound
the
tight. Because mortgages tend to becomes
depositors'
funds.
illiquidity, regulating bodies have Much depends here on the com¬
governed
their
holdings,
with position of the risk assets; in most
some
small exceptions, to a per cases where the ratio is high, the
cent of time deposits or capital.
loan portfolio usually represents
the largest segment of the risk
Average Length of Mortgages
asset classification. M u n i c i p a 1
This becomes.-very important if bonds
represent so -called risk
mortgages hre a large percentage assets, and can therefore be a
JCqeans.,of adjusting the ratio up¬
of -loans, and the latter are^ high

in his orable municipals should not be
own mind offset favorable against
tax exempt U. S. government and
added; the bank already is in a
banks insulate
themselves from
agency
issues,
tax
free
bonds
unfavorable, giving weight where fairly illiquid position. When the
the surtax bracket by purchasing
it is due and come up with a fair¬ mortgage limit is reached in terms
could have more appeal as a re¬
municipals to as high a level as
ly accurate picture as to what the of time deposits or capital funds,
placement. k Total
partially
tax
possible which their individual size of the
exempt securities of the U. S.
municipal portfolio and the average maturity is long,
circumstances permit.
should be.: Some factors are cer¬ municipals should not be addea.
Treasury
and
instrumentalities
Banks which are sure of main¬
have
been
reduced
from
$5,997
tainly .more important, yet sev¬
Call
taining themselves in the 30% eral
Loans,
Call Participations
million in 1954 to $1,485 million
smaller factors can far out¬
and

loan demand is forthcom¬

Where

Mortgages generally are a sig¬
nificant portion of a county bank's

differential above the

discount rate.

Loans and Discounts

funds

issues

national

be obtained, should this factor

;,can

mar¬

nature.

favorable

Geographic

(6)

held
should preferably
be of h i g h
low, more pressure is quality, marketable, and of short
about to purchase mu¬ maturity. The reasoning here is

loans.

but

thousands

the

technical

banks,,
j

high, as well as the deposit

capital ratio, any municipals

percentage of total forthcoming, municipals might be liquid position, a municipal port¬
undertaken for earning power.
folio might be undertaken with
an eye to the near term
(7) Loans times capital funds
outlook
Mortgages
as
a
Percentage
of for loans in
relationship to capital.
(including reserves).

pations

Round lot trading is usually

(9)

easier to obtain. The
(10) Prices are not always in
daily Blue List presents a fairly
line with other issues of compar¬
complete listing of securities for
able quality, maturity, and rate.
sale, along with the name of the
dealers

quotations

tion concerning the issue offered.

posits are large relative to total
deposits and the deposit to capital
ratio

stockholders'

•
1\
'
Where the loan to capital ratio

funds.

Capital accounts are a that when the above ratios are
deposits
should all near their limits, Interest rates are
capital gain liability. ''After tax" ed the leading or underlying con¬ assets not be liquidated at cost usually high, and poor I quality,
siderations that should be ana¬ prices.
long
term
municipals are ex¬
returns
must first be computed
/.v;/.,;///./■ /
tremely difficult to sell at favor¬
when making comparisons to tax lyzed:
Loans to Deposits
able prices, tending to place the
free municipals purchased at par
(1) Deposit structure — portion
Known as the liquidity ratio, bank in a locked-in position when
or at premiums. The capital gains
representing time deposits versus
such a position -should be avoided.
tax liability
could be long or demand deposits.
1
* /- "
■' >; v the higher this ratio becomes the
This is usually the period when
short, depending on the time held;
(2) Deposits times total capital smaller should the portfolio, of
this can create problems in port¬ funds (including reserves).
municipals become if other fac¬ the cash and government position
should appear strong, supported
folio
management where
profit
(3) Loans and discounts to de¬ tors are favorable., Where this
ratio is high, the bank is already by short term, if any, municipals
and loss plans are concerned. |
posits.
/ " ' ,
"
with high quality.
(8) They are almost always sold
(4) Mortgages as a percentage in a fairly tight position, addition¬
al risk assets should not be added,
and quoted on a yield basis rather of total loans and discounts. '
Where the loan to capital ratio
than dollar price. This tends to
(5) Average length of mortgages but liquidated to help offset this is low along' with the "deposit to
confuse purchasers of such issues, outstanding. /. : *
illiquid position. Where this ratio capital ratio, and the other ratios
/4.
especially since gross yields are
(6) Call loans and call partici¬ is low and no loan demand is of the bank indicate a somewhat
chased

making markets in these
quoted
This
gives
municipals

issues.
a

funds, the other to

are

of capital

measuring the amount

(2) Almost any coupon rate,
quality, maturity, and discount or
premium can be found from the

Thursday, September 27, 1962

...

Cash

and

Due

From

Banks

and

Governments to Deposits

Cash,
ments

from, and govern¬
great extent measure

due
a

Volume 196

eiimieiHs,

xxiax^eL

Number 6198

vaiue

sixuuia

imping

be used. The shorter the portfolio
of governments, the less need be

held,

depreciation factor
significant.
The
latter, however, can affect bank
earnings over the business cycle,
unless properly managed.
which

the

undertake

most»

range for municipals is in the area-be undertaken only with financial
•

ratios

°y legislation;,

could

high

zu/o

holdings

of total ; deposits. Banks, for instance, in the 52% bracket would,
under most conditions, be sacri-

favorable

are

ficing income to purchase corpor-

seek

bonds which *are taxable at
52% versus the purchase of mufully nicipals. On the other hand, under
expanded position and the bank some considerations, banks in the
finds it has difficulty in meeting 30% bracket would be sacrificing
reserve requirements, an increase
income to purchase municipals,
in the municipal portfolio should since they might do better, on an
not take place. At such a time the after tax basis, purchasing
taxprimary reserve should be in- able government agency bonds or
creased
and
loans
carefully some corporates.
ate

municipals. Timing is
important in all cases, however.

When

the

ratios

indicate

screened

new

refused.

ones

ratio

The

ments

Closelv associated with cash and
deposits
deposits,

to
to

increase

timp

Banks should not purchase mu-

nnlv

blcipals only for tax free income
if ^ pnuidifv uppH-j are not first,

wbipb

fhp

only
at

linuidifv

I
f\•
fulfilled and other ratios indicate

•

nnci

'f11

that

the

securities

other

"'a'

chase

a[aa®ef- °ank|^w^®raf

governments

bot-^ihl-

bond, purchased at the

torn of the market make

ficant

difference, however, when
considering the overall portfolio;
in this case, with long term bonds

palsWto some e^ten"might
^
i
4

most

cases,

suffer

little,

preciation.

This

will

bank hold

help

1Ilvesimems

should

3Q%

with

one

small

the

income

In
'

PoinJ, wi^ definite precision how
much of the bank's municipal
P°rtf°ho should be distributed between local and well known genera* market name bonds.
To a
great degree this depends on: the

x.„_

bank be high in cash and governments (assuming all governments
munici-, mature in 5 years) low in loans

The return (yield)

taxed

52%

bracket

compared to

definite

interest rates in

the same maturity

fit and losg year portfolio ma_
turit
distribution should be set

Yields,

sector.

could

non-general

market

name bonds. However, too many
local issues (with NR ratings), re-

therefore, partially tend to reflect
ratings; the higher ratings receiv- gardless of the bank's ratios, could
ing less yield, the lower ratings bring criticism by the bank exThose banks which find their
r„
rouse oaims wmcn iina meir more,
jn
numerous
occasions, aminers.
This would be cornpther securities
portfolio con- however, it is possible to obtam pounded if they were long in
sists of long term bonds (both an AA bond on tbe game bagig matUrity.
municipals and corporates), should (yield) as an A bond with the
add only shorter term securities
maturity
ln s 0 m e ^stances, country
*
iAi~"
to their portfolio, if it is found
oc?ur 10r example, when i large b,anks which have a relatively
xL e when a l,rtn
?ccur> fc
;

mwA

utt„lull2

such

that

holdings

can

be made
..

after examining the bank's ratios.

issue

hond

ninppa

.....

strong

vulu.

morirP»f
markpt

+bp

a a
aa

qpwrai

"banking
ucumms

position"
jjumuuu

will
W1XX

...

_
row

arfl

mav

spread out over a given issu^are digested by the market,
MPjber of years and still take ad- t ey may niove up in price (down
vantage of the profit and loss year m* yield) and reflect their AA
advantage

tax

ld*

Here

auvaxuage.

however

xiexe,

ixuwevex,

planning is necessary since the

prices paid for such securities, in
addition to their maturity, coupon

"rate, and the level of market rates,
aU haV

dire

within the bank, this
with

ing

the

because

hold-

111

ine sxxuxicx

texxxx

„

;

highly

lucrative

ratio

after

tax

bo^b

straining point,
in this direction,
however, may catch the bank off
reach

ments
Going

of such taxable securities

possible, freeing funds for other
types of investments.

too

far

should

balance

short

rates

term

general obligation

enue<s

and

btanaara ana i'oors ratings are

mar-

they

are

banker

somewhat

relieved

examining

each issue with fine
detail. However in those instances
where no ratings are given
the

purchasing bank should make
of

n^t.VnS

thP

ratrsanddetermine thTsiundu u
of thp

npsq

which

issues

are

General economic factors in
area#

follows:

(2) The character of public ad-

Ca, C.

ministration.

For examination purposes,

below

(3) Population

the

are

the

bank1- should

and

•

.'J

•>

■

Welsh Panel CO.
J
^
^

(^OTTlTT10"n OffPTPfl

^U111I1AU11 V^llCICU
„

-^°hert k. Ferman & Co., Inc., of
New York> and Miami» Fla.,

-ana^

has

group,

public

announced

sale

underwriting

the

initial

stock

common

T
Welsh Panel Co., through the of-

per

°f "<>>000 , shares, at $7

share.

Net proceeds from the financing

revenue

trends.

are

those

BBB)

rated

that

should,

generally exempt from
the bank's legal lending limit

«-es are experts m tnis area, the

(1)

Moody's ratings

smaller banks,

A list of the important factors
affecting the ratings are set forth

B, CCC, CC, C.
Aaa Aa A Baa Ba B- Caa,

here

stay with general obligations since

follows: AAA, AA, A, BBB, BB, ne*s ot tne issues,

made at higher prices,

tribu.tion of the government port¬

but we shall leave these to

exa^nation

drop and re-investments must be

examining the maturity dis-

rev-

noted

municipals

There are other technical mar- where possible, be made in blocks
'j?4. conditions which temporarily of $25,000 and up. When the legal
fUs,tort yields relative to rating, limit is less than $25,000, for

Rating Factors

currency

ing municipals

should

purchases

ket sPeeialists.

,,,

0r market risk,
It

xctuns.

favnrahio

Qnmp

earning advantage and little credit

rating,

Rating of Municipals

ft^when interestratesare
high and the liquidity require-

while

with finalie^lts.^i f

them

bolster the "other security

extent

some

commitment

Pals is largely determined by two and discounts, and low in municilong term capital factors: One, the risk; two, the pals as a percentage to deposits,
gains at 25%. However, for banks coupon relative to its maturity, Part of the municipals purchased
that

siich high grade ing them.ini their Portfolio should
the shorter term be acquainted with their ratings.

investments

one

any

cycle.

time, in the form of portfolio de-

amount

traders.

after tax return on

their governments under five
years

...

market may be above that availThe twQ major rating agencies,
able o?u short term municipal is- standard & Poor's and Moody's
banks holding sues. This type of investment can currently rate municipal issues,

the interest rate

it
■

Vn"

are

?en Lc

and

bf nurch^sSi

mieht

com

where

easier to schedule their portfolio
municipals' maturing each
year
The reasoning here is due

,issues.

—

The bank interested in purchas-

sidered, depending
is in

those

with

P®a«l}le, and replace them with
tax-free securities. Under sc™c

signi-

whirh

*J.-t° .52%

bolster the liquidity position. Long
term

1L, ,Tnnt
RankT

de-

tion of the bank is under pressure.
This should be the time to puradditional

should

can

our-

municinals
would'
municipals
would
the risk asset ratio

chasing
cnasmg

—

...

nmuea

b1,pitchingpossible to have port- "fjme buying hPPortunjtiessuch other'factors
their munidpal ma- the informed investor. After for
folio. It is
bp donp

factor need also be considered.

bank

preciation^n fts pStfolio

—

issues

be undertaken. N. R. issues should

the
the

maturity distribution of the povmaturity distribution -of the gov-

"ernment portioiio. wnere a
ernment dot5o11o";WhS-e*a

°n take on many small issues of
*ake;
£ issues
ind%Stion municipals, some rated, some not,
held—local or general market. As ,.^ 5 vlnf f, e
thon
npJnr forcing some but with short maturities, producoccur,
mentioned elsewhere, the maturi- should take full advantage of the
^
^ some ing rather lucrative tax free* inattribution
and
denreriation Profit and loss year tax advantage price weakness temporarily, and
W cusiriouiion ana aepieciauon
aisiriouuon ana ueyieeiauuii
orpntino- hnvino nnnnrf.mHii
W
;r„come. Depending on numerous
should also be tempered in relationship to the type of securities

Maturity Distribution of Govern-

eovernments
governments

securities"

"other

quality

of 5 to 12 years, the average being, knowledge

tne latter
.

speculative

market names. For
the
typical buying

banks

ana

lowea

is taxable at 52%, the bank should
most

xa-

ernments.^inis jwouia incurae a
1

Since the return on governments

and

suux

general

that

when

wu.jn*iS

sues under 10 years to maturity, these "back-yard" bonds is desirWhen municipals are purchased able. Many times the bank buywith maturities of 11 to 20 years ing such an issue is the trustee
or longer Aa to Aaa (AA-AAA) or paying agent and holds an acbonds may be desirable. General- count from the issuing authority,
ly speaking, the shorter the issue
T
; '
purchased, the less important to L} ,ls extremely difficult to pin

with

reduce their government

n5cWi„.«a»

iviaturny wisiriDUwon oi inner
securities
Closely related to the percentage
of other securities to deposits is
the question of their maturity. A
portfolio of municipals comprised
of all local issues with long ma-

turitiesisquitedifferentfromasomeextentbecomes the rating.
portfolio of 7-10 year maturities This, however, does not infer that

Securities to Deposits

pur-

chase of municipals.

(1317)

term ot
"
eludes all securities except gov-

should

6»vu»-

themselves

find

positioned in cash and governments, very little in the form
of loan
demand, a comfortable
ratio of deposits to.:capital and
other
ratios
indicating an over
liquid or over conservative posi¬
over

tion,

concerned

Other

Banks

xxuiunxes

with capital gains,
so that even a government portfolio of under 5 years should be
one in which profit and loss years
are realized.
.
1
be

too

lxicxx

ments. Large country banks should

the

cannot

The Commercial and Financial Chronicle

».

will be used to purchase machin¬

call dates should be used
only where issues are selling at a

find any bank that holds no mu-

(4)

Legality of issue.

ery

premium.

nicipals whatsoever. If

(5)

Ratio of net debt to assessed

plant; to provide inventories for

folio,

are

find

that

their government

considered

rare

fourth

class

(Baa

considered speculative. In some
cases bonds may be re-rated up-|
in this position, it would mean ward
or
downward depending
a
spreading of that all of its risk assets are prob- upon numerous factors which are
maturities over ably in only several areas. By mentioned elsewhere.

Smaller banks which
not interested in capital gains,

might

would

bank

Normal

(30%) Tax Bracket

such

(as of Sept. 15, 1962)
1963

1964

1965

1966

1967

1968

1969

1970

1077

1971

1Q7A

1077

Governments*

2.09

2.19

2.28

2.53

2.61

2.73

2.78

2.80

2.81

2.82

Municipalst

1.75

1.85

1.98

2.25

2.35

2.40

2.50

2.60

2.73

2.85

2.90

2.92

Equipments*--v....2,52

Agency*./

Fed.

versus

25%

capital

"A"

oi-

2.59

2.82

2.85

2.90

3.01

2.95

2.96

2.95

2.97

2.98

2.34

2.24

2.59

2.60

2.64

2.68

2.78

2.82

2.80

2.81

2.84

gains.

rated

of debt

gross

yield) since regular

income

is taxed

par

premiums.

(9) Limitations of debt and tax
rate.

names

$1,000,000.

<(12) Gross debt,
debt, net
;:

Ratings by the two agencies do
take

not

consideration

into

bond

;

Taxable Equivalent of Municipal Income for Various Maturities

(14) Ratio

1963
3.64

1964

1965

3.85

1966

4.12

1967

4.68

4.89

1968
5.00

1969
5.20

1970
5.42

1971
5.69

1973

Many issues, merely because of
their size are not rated, although
in many instances are of high caliber. More current data are usually

5.92

1974

6.04

1972

6.08

required by the examining agenAfter Tax Yields

Various Maturities *

(as of Sept. 15, 1962)
1963
1.59

1965

1964
1.77
vBest

1966

1.95

cies where

Governments for Banks in Surtax Bracket

For

1967

2.06

2.12

1968'
2.14

1969

2.21

1970
2.22

■-V-'

heavily

1971
1.95

tl973

1972
2.22

1974

2.20

after tax

yield possible on any issue maturing in various years—in
deep discount issues where current income is foregone for capital gains.-tAssuming a government 21/2% maturing in 1973.

restricts
to

1.94

many

cases

1965

1966

0.03

*After tax.

0.19
?

1967
0.23
,

1968

0.26

1970

1971

1972

0.29

0.38

0.78

0.63

and

debt

service

1973

non-rated

municipals
open

Sucb issues generally
er

but

will

find

acan be portfoli° of su=h is"
larg?

criticism.

carrv

0.70

0.98
-

or
sell at higher yields
during adverse market condi-

are highly secure, but have no
rating merely because the issue is
too small. In many cases, banks
are asked to absorb part of new

range

for A to Aa rated issues

(Standard

products

are

remodeling,

well

new commer¬

residential

and

construction.

an unaudited basis, for the
months ended July 31, 1962,

$83,281,

equal

common

share, based on 200,000

m,tctanriirw
,

cents

Fnr

per

vPar

f outstanding. For the year

"ec' 31> 19f1'. sales were

rates

purchasing munici-

the 6-10 year maturity
should strive where possible

used

urban'renewal projects and mobile

high-

Banks

Such

name.

sales of the company amounted to
$2,785,946 and net income was

issues; in most cases these issues

pals

> 1974

own

posits, is the quality of the issues,
holding large amounts of

Banks

con-

some

company also
custom
wall panels for plywood

seven

tends

cause

21'V The
processes

cial

Quality

tions these issues are difficult to
sell. This is not to say banks
should not purchase^.small local

the

under

"Welshtone" and "Century-

homes,

Bond

instances
the
two
rating agencies do not^ give a particular
issue
the
same
rating,
many

into

sheets

Equally as important as the percentage of municipals to total de-

sues

unbalanced

working capital.

distributors

generally

fusion.

1969

company

manufacturers for sale under their

their

which

(as of Sept. 15, 1962)
1964
0.08

bank

Municipal

"t/nH* that
tends

Yield Differential in Favor of Municipals Versus Governments
For Various Maturities *

1963

portfolio

concentrated

S
marketability

held.

are

quality position in its municipal
portfolio.
;
In

0.16

issues

these

give the

and

revenue.

For Banks in Surtax Bracket

(as of Sept. 15, 1962)

funds

provisions.

High Caliber Bonds

Non-Rated

self sustaining
tax supported

debt; debt structure.

(13) Sinking

marketability.

plywood

processes

sale

exceed

additional

carry

another

factory finished wall panelling for

(11) Tax collection record.

not

new

Welsh Panel of Longview, Wash.

(10) Actual tax rate.

mental units where the debt does

at 30%

'y!-

will be added

outstanding

for

plant. The balance of the proceeds

been not to rate issues of govern¬

•■■■<■■

bonds selling

plant, and to

in an amount of less than $600,000.
Standard and Poor's policy has

2.83

M,er tax yie,d, on gross yie,d (30% of

tYield

class

equipment

inventories

(8) Trend of debt; debt retirement policy.

policy of not rating debt of
governmental subdivisions where

Various Investments for Banks in the

capita,

per

(7) Debt service requirements.

Since 1949 Moody's has pursued
After Tax Yields

the

value.

(6) Net debt

and

and net income was
$109,947, or 55 cents per share,

$3,285,151

Directors of the company have
declared
0f
mQn

initial cash

cents per

tock

payabie

stockholders

uec- ZJ> iyoz-

dividend

the com-

on
of

Jan.

21,

record

The Commercial and Financial Chronicle

(1S18)

Investors

price fiasco of last tremendously

Continued from page 3

This was pos¬

and

only under boom conditions
it remains to be seen how well

the

structure

sible

that

misunderstood,

tion

Market into being.

'
are

highly favorable in their implica¬
tions. These factors include:

the

winds

hold

can

under

comparative adver¬

large scale

affair has ob¬

not

was

radical

departure.
in

interference

Presidential

the

peak
boom.

the

and

abroad

foreign

new

;

invest¬

adverse effect,

have, the

any,

currently earn¬ that the Common Market will
ing a surplus of around $5 billion have on our exports.
per year in its dealings with for¬
The honeymoon may be ending
eigners. Yet beginning in 1958, for Europe: the free ride on Amer¬
we have run a payments deficit of
ica's .back in defense is over; in¬
$2.5 to $3.9" billion per annum. flation is destroying Europe's ex¬
These deficits were the product of
port advantage; and a period of
(a) temporary-adventitious forces, political uncertainty is at hand
such

1958

surplus
and the speculative flight
small trade

our

(Adenauer

live forever).

that occurred in late
1960 and early 1961, and (b) more

may

permanent factors, such as troop

capital

support costs abroad ($3.0 bil. an¬

for¬
Americans,

nually) and the rising tide of
*

;

investment

eign

billion

which increased from $1.0

in 1950 to over $3.5 billion in 1961.
progress has already

Much

dangerous situation.

Of the 1961

deficit of $2.5 billion,

for example,

attributable to
outflows and short

billion

was

speculative

rate considerations,

term interest

leaving

"basic" deficit of only

$0;6 billion. This year's deficit will
be pared to
next

$1.25—$1.5 billion and

year's

'should

accounts

substantially in balance.
further"

there

ahead,

repetition

experience

since

because

costs,

1958r-60

the

support

troop

changing

mili¬

tary technology nnd the growing

strength of Europe, promise to de¬
cline

drastically; while foreign in¬

vestment is

already beginning to

falter in response to declining op¬

S.; and this time the motivation

will not only be negative as it was
in the

extremely bullish for

American business.

tion of

The elimina¬

balance

our

payments

deficit and the banishment of the
threat

dollar

devaluation will

permit Washington to employ, in
a

less

inhibited

arsenal

fiscal

(3) The basic turn for the better
place

monetary situation. There is grow¬

ing

currently taking place in
the competitive position of our ex¬
The degree of overpricing

has been

exports

greatly

exaggerated in the Popular Press,
but there is no doubt that many of
our

exports got out of line during

the

1955-57

boom

discrepancy,
will

productivity
grown

slightly

being

our

export

Since

the

1958,

wages.

has

reverse

has

more than

producing the

squeeze

This

rates which began

1959-60

out

lower

trough

inflation

and

suffered

type

same

profit
1956-58.

Germany, for example, wages

have

increased

25%

two years while
gone up

during
the

they

this

secular

downtrend

rates began).
are

now

that

the

last

productivity has

only 10%.

remember

that

the

threat to

the

result

our

of.

seen

exports

European

prosperity than its product Many
particular, and
had to be

national

interests

sacrificed, placated and

compensated to bring the Common

concentration

contrary

the

the anti-trust

laws

construed),

from 1955);

benefits

business

and

This turnaround is

one

adjusted

gross;

7.53%

of gross in 1961

were

earnings

inventory

and expensive, each passing year,

Perhaps—but I think not.

that

from

flow

This

power.

monopolistic

rough

ready

and

tue

precise and

civilian

charges

much

are

flow

pragmatism.

basis,

Lessened

Labor

Power

the absolute >number of blue collar
workers

has

response

to the profound changes

that

been

taking

are

decreasing
in

place

indus¬

out of the

snap

veritable

in corporate

explosion

profits would follow,

concurrently,

Since

should

doldrums,

the

War,

the

ity that is occurring in the Econ¬

been unable

omy.

cant organizational

ready

bringing

terest rates.

were

balance

tions,

is al¬

This

loss

in¬

lower

not constrained

are

emotional

ness

political

labor.

the

same

now.

many

politicians, there

any

political climate is not

able to business as many

since

Aside
and

busi¬

thought
than

are: more

sub¬

are

that

the

unfavor¬

believe.

meaningful

The Administration,

taking office, has done the

following: promulgated new,
realistic

depreciation

schedules;

proposed and, at this writing, is
in the act of

passing

tion which would restore competi¬
tion

the

proposed

transportation

and

field;

passed, legislation

(over strenuous liberal opposi¬
tion) to place satellite communi¬
cations

under

arranged

private ownership;

(over

massive

opposition)

owned

power

for

public

privately

companies

dis¬
gen¬

affect
oi

power

time, labor's

has also started to
to growing in¬

response

the

fear

been

has led, especially m the
tate

tial

These trends

crease

the

sharp

work

net

force

that

elimination

(dur¬
a

net

annual increase in the work force
vs.

only .9 mil. in the

spectacle
ocratic

the

impaired

unions is the novel

the

current

the

and

pro-management

its

Dem¬

Administrations'

against

35-hour

the question of

stand

work

week

position

featherbedding:

Profits Better Than They Look

The

(6)

remarkable

stamina

demonstrated by corporate profits
and
the

profit

margins,

considering

stagnant economic conditions

of the past 5 years. At first glance,
the figures seem to belie any such

construction, but I submit that the
statistics support my case.
To

es-

have

distor-

boon to

the

lescence

that

healthy

basic

arKk

taken

This

will

hood,

boom,

last

the decade and

prosperity.

profits

there

er)

out

(I would not be

vigor

are

earnings

confined to

to.

;

will

assured

future

of course wiI1 be high
wm be necessary

pay

defense

for

and

civilian purchasing pow-

greatly

and

toriing

Initially, at least, thi

expanded

regulation

gov-

( which

will

growth

narrow

taut

econ¬

sur¬

Cyclicals Favored in Siege
*

earn

The

;7.

manifest.

effects that

will have

the bargaining
power of various groups).
omy

$60 billion by

anticipated renewal -of
of

all
likelw*^be necessary to ration scarce re—
the rest 01 sources and counteract the dis-

Economy

investment implications

the Siege Economy that
to emerge

The investment consequences of

stead

pre-

7;./77^\-v'>:-'-

nomic

are

(which

ernment

1968; the DJIA could easily

this

butter,

and

needs

foreseeable

.Restrain

bring unparallele

to rise above

$55).

fundamental

activity.: and; employment,

both

great boom

made,

,axes

prised if pre-tax corporate profits
were

going to

are

guns

military

The prioe

supple-

probability will be fully reflecte
in

the

between

the

ness

ascendancy,

later,
make

high and constant level of busi-

place in

probability that

ySL ^
1965.

civilian boom. It could

Once

mentary factors and trends that is
growing

con-

conva¬

favorable

time,

constantly

supply

choice

fundamentals, given the con-

stellation

trend

emptive, that choice will be guns.

advanced

has

matter of

1968, or it could be 1973; but

sooner

par-

these

only

put

support

growth.

Given

the

.Illustrative

even

volume,

expancjing defense needs and -also

for

1950's).

status, of the

bard

Sees Great Boom by 1965

ing the 1960's, there will be
1.3 mil.

has

in¬

in the Cards for this decade

resources.

high

until the Economy will be

tin

field, to significant and un¬

tion

Economy

militarization

£be

years,

real;

tion.

healthy distortions in the alloca-

likely to continue, and will be

by the

that

three

long-run

Siege

chai>acterized

inequitable,

over

stagnation?

the

high taxeg and extensive regula-

inflationary

inflation

for

dead

pass on wage boosts.

reinforced

opinion>

implication

loop-holed tax structure, aided by

economic

are

re-

Our

persists.

enacted

Economy,

surely must, from

as we

current high level

and, if the cur-

year,

tions would be

capital

goods spending; proposed legisla¬

em¬

reduction

ability of employers to profitably

7% invest¬

spur

wane

credit

ment

beginning to

economic power

feel

militancy

of high

through

than words.

union
years

the

them

Actions

adversely

statements given by

collapse

fears

emerge,

outlined

additional

receive

subsidence

rent

groups

workers.

factors

meaningful tax

and

early next

areas

numbers, plus

ployment,

factionalism

reasons

sheer

flowing from 20

new

leaders who have not

stantial

collar

would

rates

they

the

form

breakthroughs,

geographical

white

would

above

have

signifi-; impetus if

any

considera¬

payment

interest

lower than

new

make

the South

such

And, if the policies of

the FRB

such

The

money

about

either in

unions

•

„

favorable

The

dropped.

of the

style

the

high level stagnation could easily
have been a low level depression,
So far, so good, but what of the
future? What will be the effect
of an ever expanding military
budget on the Economy when we

difficult ltd exaggerate. If the

economy

cramp' the
sector" of

budget has been the indispensable prop without which our

The implication-of these figures
In recent oyears*
alnid related statistics on capacity

sufficiently

tary

illusory than real.

(5) The decline in the powevof
organized-,labor.

during the

been

fac^ jn recent years, the mili-

margins since 1956 becomes more

has

plentiful supply of

deterioration

the

(except

..War)

great to

American

the burden of militari-

hasn't

zation
Korean

membership

overestimate.

To date,

(b) much higher depre-

in proved in quality. Further, when
comparisons are made on a cash

abuse,

open

tradition

best

the absence of wind-

(a)

ciation

squaring of the circle, while im¬
the

falls and

im-

technology;

become

complex

trariwise, current earnings by vir-

union

hard

perhaps,

quate depreciation accruals. Con-

trial

development

than

make

Or,

technology will

rather

less,

be able

never

size and simultaneously

of the

The favorable long run business

continue,

mitigate the inevitable abuses

tages of
to

the most important manifestations

speedy restoration of liquid¬

encroachment

will

weapons.

military

inade-

and

military

will

atomic

inflated

were

profits

the

20%.

perhaps the Russians, will become
jess aggressive. Perhaps the Ghinese

reported

the advan¬

some

perhaps disarmament is possible,

apparent that before 1957,

has, therefore, for two generations,

1973,

economy

1955.

security

15%

of course, no guarantee

this

that

8.15%

vs.

and

There is,

1967,? national
absorbing

possible

quite

QNP

the next

will

after-tax
4.25%

Thus, it

years>

3.28% of
thus, total cash flow was

double again

no£

why military costs should

reason

(up $3.1 bil-

down

were

however,

action

anti-trust

inextricably involved, there is

depreciation and depletion,

gross;

Occasional

by the President sup¬

plemented

profits

U. S.

inventory losses were ^hat

lion from 1955). In 1961,

the

giants

duPont/

overt action

from

7, .giving due weight to the Perma-

corporate

profits $46.2 billion

and

flow

sheer size of such

Steel

social

billion, ; making

$0.1

(if strictly

important

were:

profits
$46.1 billion (up $1.2 billion

were

rhetoric of American business and
to

Since 1949, we have been in the

inventory

was

adjusted profits

1.961,:.. pre-tax

Second, while this

$44.9 billion; of this

of high level stagnation. In

year

endowed

if true compe¬

case

Siege Economy Prospects,

nent World Crisis in which we are

are

many

European tribute the electricity to be

Common Market which is
many

last

interest

It is possible that

power

In this connection, it is well to

probably will last for

years.

would be the

tition obtained.

of a Siege Economy in the United
States.
; \

Now, let's look at 1961, the fifth

; many

pricing power than

story,

indeed,

bright. Unfortunately, there is the

post-Korean

8.15% of gross.

was

facts

dominated by

are

enterprises

large

with far

since

the

long term downtrend

few

First,

life.

vital industries

occurred

has

when

1920's

American

is in power,

simple

two

recession;

business recovery

early

are

at the

were

1960-61

the

nothing

in 1946 peaked

(interest rates

than

now

been

The current boom there

case.

cost-push
In

attest.

Europe the

the

period;

however,

rapidly eliminated
surplus

the

that

great secular uptrend in interest

from

our

believe

reason

many

domestic

our

(4) The political climate.

1 Our Improving Exports

ports.

response

functioned to preserve

will be opening up here.

monetary Administration Not Anti-Business

and

(2) The significant improvement
that

well,

the opportunities that

fashion, its vast

stimulants.

1930's, but positive

because

are

The implications of these devel¬
are

capital

large

implications of this

portunities abroad.

opments

see

every

there will

believe that

reason

Looking

Before too long,

movement out of Europe into the

been
taking
correcting this potentially

made in

$1.9

again

can't

DeGaulle

and

which political party

would,

SriP
-a seemingly inexorable
$43.2 billion. In the same year, and open ended militarization, In
after-tax profits were 5.40%
ofthe past,12 years, military and regross; depreciation and depletion latedexpenditures
have ^ grown
was 2.75%;
thus, total cash flow from 5% to 10% of the-GNP. And,

ment, the U. S. is

whole

the

were

future'

1955, pre-tax corporate

were

windfall,

great anthracite coal strike. " This
The continuing and sharp sity that are already beginning to
interference came into being, has
improvement taking place in our blow. For this and the reasons
balance of payments. : Excluding cited above, it is easy to over¬ persisted and. will persist in the
foreign
aid,
military expenses estimate, as many doom criers foreseeable future, irrespective of,

(1)

amount, $1.7 billion

this

the

at 1955, the

the

year

profits

settlement

the

problem of the gradual emergence

tablished feature of American life

buying it engen-

scare

since 1902 when Theodore Roose¬
forced

the

Korean War and

Instead, let's look

economic process has been an es¬

velt

has not been seen since 1953-6.

economy was

stimulated

dered.

scured the fact that the basic ac¬

of the

start

April. The unfortunate emotional¬
ism surrounding the

them

is considering that the

by business

distrusted

erally

due to the steel

Thursday, September 27, 1962

within the next dozen

years,

In¬

and the implications of the

boom

eco¬

expected

of this decade

being

spectrum of

is likely

Both

the

are

last

half

closely in step.

developments

will

benefit

equities "(foods, utilities, etc.), accompanies characterized by oper-

begin with, most analysts

has been the

ational ; leverage, large, unused
capacity and high fixed capital.
River project; announced its in¬ rent
comparisons. This, is highly - Of the major industry groupswill In - short, the- very: cyclical and,
tention to propose next
January a: misleading.
1950,' in terms of participate. *This means that in a~; heavy industrial enterprises that
large, tax cut for individuals- and profit margins and return on in¬ few
years, conditions will- come- have been, hurt by the post-1956
corporations.
vestment, was probably the best1 into being which will permit ^stagnation* of the conomy, BurIt would appear that the
primary year in the history of American broad, Cross-the-board stock mar- ing the prospective 1965-70 boom,
reason the Administration is
gen¬ business. And it should have been, ket advance, the like of which these companies, by virtue of the
erated

the

Upper

Colorado

1950

their

base

year

for

use

cur¬

5 years

case

during the last

of stagnation, virtually all

Volume

inherent

leverage
heads

and

large

matically increase!
advent

cyclicals, which in

are

pie),

better

will

than

their

because

for

tween

high

The

taxation

market.

type

dispensation (for

new:

tailed

exposition

Economy thesis,

cess

de¬

a more,

glance

article in

see my

should

boom

excess,

if it

can

liquidated
matter

the

this

extent

not

sion

DJIA, which

year

cur¬

Financial

highs, and which at its nadir in

1966,

June

prolonged.

available

i nt

request).

pects

the

and

economy

stock market

the

curtain

greatest

States

has

will

boom

the

time

the. late. 1960's.

some¬

the

.price

this

early

listed

must

there

investment

any;

this. time.

extremes.

port

apprehension, at

the likeliest

picture,

stocks,

back

was

January

than the
A

between

these

holdings in

sprouted

irv

Siege Economy.

crop,

the

built

desert

pessimistic
by

the

spring

deluge.

spite of its

but

the

martial

long

overtones,

run,

dead. What

the troubled

ent?

the

What

that

years

two

separate

the

1920's.

that

the

(the

the

out

fuseVk The business recovery that
started early last year has come to

over

year

were

period

would

merit

oils in

tools,
rail

the blow delivered by last spring's

were

remarkable, considering

collapse). The lead¬

ing indicators, though they have
,

.shown

slight

provement

and. spotty

the

last,

im¬

month

nals-.
of

all

likelihood,
in

slump

some

economic

debacle

and,

•

sort

dex.

But, in

perhaps it will begin sooner/But

there

this is not the whole story by any

it also sup¬

way,

ports the Dow's

implication that

cesses.

means..

' *'I

still

are

unliquidated

ex¬

Today's Market. Outlook

The current recovery has been
lassitude

but

also

short

and

because

absence

its complete ,in.

this

study

(the

$100,

will

ex¬

Inc./

Co.,

principal

the

being offered at $31 each

are

and

proceeds

offering
to

San

Diego, Calif., is
the

business

purchasing

the

by the Comptroller

Currency

the

the issue

approve

Orange County,

United

special

generating,

electric

portion of the southern part

Calif., and of

natural

selling

and

in the City of San Diego and

San

issue

stock

common

operating

in. San Diego County and

purchasing

made

selling

and

the

gas

approval

construction.

public utility engaged principally

several

being

company

bank loans

repay

bank

although

the

used to

for

energy

preferred

employees and former

The company of 861 Sixth Ave.,

meeting scheduled for Oct. 15.
The

ten

the

preferred

non-callable

$100.

communities

County.

Diego

During
June

the

1962,

30,

western

months ended
approximately

of the gross operating rev¬

66.1%

of the company was

enue

from the sale of
from

sale

the

derived

electricity, 33.6%

and

gas,

0.2%

of steam.

the sale

from

will

whole

will

reason

for

thereafter
or

part

non-cumulative

fund

chase

the

any

$700,000

Business Pickup
Forecast This Fall.

share plus accrued divi¬

per

dends.'

stock

for

years.

callable

pur-

per

ttt*

WlllLGf

year

will be set aside each year begin¬

have

groups,

the

cess

cement,

preferred

market

open

tenders

$99.99

calls

prices

event in

ex¬

share plus

ac¬

per

stock

lowest

the

available, but in

airlines, machine

crued dividends.

building materials, rails,

states
will be

Boston-based advisory firm
that

though- gains

even

pickup will bolster

seasonal, het
sentiment

well

activity.

aided by . rising
personal income and brisk de¬
Long Island, Mineola, is the largmand for* autos, are expected to
est
commercial
bank
on
Long set new records this Fall. Fourth
Island,
and the twenty-seventh quarter trade should top a year
The

equipment, Urashiunt,; shipping;
and

paper

upward over the rest of the year
and into early 1963, according to
the United Business Service.
The

purchase

for

probably

equipment,

tilted

The

the

thoroughly

are

business trend will be

ning Jan. 2, 1973 and applied to

Groups Still Apt to Decline

Franklin National Bank

United

Retail

the

largest

States,

sales,

The

approaching

basic tax revision put off

chemicals,

in a

City

offices in the financial

position:

following groups
Z indeterminate

steels,

ago

terms of deposits at June 30, 1962.

trict

and

are

Forty-Eighth

capital outlays will be deferred
until
1963, official, estimates of

dis¬

Street

fourth quarter

and Madison Avenue.

agricultural

probably

(there has

boom, thb high quality of today's equipment, domestic oils, fire in¬
been no great buildup of
inven¬ earnings, etc.) the following case surance and non-growth- utilities.
tory, new capacitv, credit.'or any can be made for today's market;. •.
These
excesses/

preferred stock:

the

facts and trends developed* earlier

duration,

Blyth

employees.*

States. Shareholders will1 be asked'

which

following

remarkable not. only by virtue of *Given the above and given the
its.

new

one

by 3%-4%. Government
spending will accelerate.
With
until 1963,
Since 1910 Franklin National has
various Federal agencies will speed
dated
and
could
violate
their opened 25 new branch offices and
the signing of new contracts to help
May-June lows: electronics,; acquired 21 other offices through
spur business.
Business spending
banks, drugs, savings and loan, mergers
and / consolidations.
It
for new plant and equipment v/ill
retail trade, life insurance, alumi¬ now operates 47 banking offices
also maintain an upward trend.
num, business machines, interna¬ in Nassau and Suffolk Counties,
Though, full stimulus of lbieraltional
oils, foods,
and
growth Long • Island, and in late 1963 ized depreciation and the soon-toutilities.
will open its first two New York be-enacted 7% tax credit on new
,
•
1 -

given by the Breadth In¬

message

Rights

20.

City,

certain

Net

holding companies have is¬

the bank and

The following groups are, in all
the way down. This
unique- circumstance confirms' the likelihood, not completely liqui-;

activity

shares at $31 per

basis

10.

York

will be

cumulative

major

any

holders

in¬

expected, outperformed

/ the Dow

in the cards by early 1S63;

seems

May-June

New

Bank

priced

sale

States,

subject

Dow

around

area

many
groups distilling and brewing,
thoroughly liquidated before timber.

could

continue to flash warning, sig¬

so,

the

in-1961, for example).-

Sept.

Oct.

other

chart

consequence,

stock market

.by

bank

highs'oflj 1956-57) and

heavy

foods*

worse

(that it has done

record

pire

of¬

1930's, there has not

public

The

the

support

their lows:

seen

and

stop

United

the

calculation

and

4.60%

stock,

the

stock

com¬

right

indicated. In¬

the

which

National

Island

been

price/earn¬

opinion,

coppers,

dead

Franklin

Since

com¬

the

additional 500,000

par common

for

plus accrued dividends.

seem

this

congestion

1957/ steels and motors in
1959V electronics in1196(1, futilities

;

DJIA

strong

>s''i V'.A-

Any

Nam

above,

would

liquidated

(cop¬

and rails peaked out in 1956,

pers

(A caveat

schedule

any

expressed

particular,

strung

'•

offering its

stockholders

mon

share for each nine shares held of

Dillon, Union Securities

preferred

Going from the general to the

that make up the

groups

whole of the market

paid

short.

-v,

Long

highs of 1959-61).

1928-29

present

really

Co., New York City, heads

The

great supply at the 670-730 level

experience, the highs made by the

Economy and the market is/con;

unlike

Contrary

than is normally the •various

the present* situation of the

case,

totally

was

v*.

Past,

never

fering publicly, 200,000 shares of

new

The company* is

underwriter. Shares not subscribed

against it

Viet

the

around the

market

has

underwriting group

460-520 .level (the congestion area

don'it;

Promised Land?
Even

bull

there

shows

mis¬

theJpast<, They

ration of the 1949-61

three

from

they I also

close.

America

Eastman

No¬

point.

example,

confirmed

to realize that the configu¬

seem

pres¬

understand

all

are

but because

war

495-700

the

current

this

terestingly,

only because they ignore the fu¬
ture,

suming earnings of $35 this year
and $33 next year, a price range

flowers

Offers Pfd. Stock

ings channel of 15/1 to 20/1. Asr

The long run may be promising

into

are

definitely lodged in

Their influence is unfortunate not

Troublesome Present

Industrials

atmosphere

himself

Franklin Nat. Bank

the

could

last

odds

alter

views

sup¬

Sewell Averys

Range of 395-700 DJIA

the verdict of Breadth

too

sell

sued

allow

disturbed

$10

probability I have outlined here.)

two

other, the in¬

no
not

too

Electric Company

ising,

probably lies

implications of the Dow.

new

has

the

beginning

for

should

become

change in the international

pletely

279-93), The

was

matter

Cuba

1954

Certainly, the proxim¬

Fortunately* the stocks

seem

radical

Board,

the

necessary

all

if.

reason;

future—it

1965

range

sary for a major move.
is

in¬

subscribe for

the

start

until

for

the

accurately

ity of better times tends to

for

reason

that promise to do best in 1965-70
also,

of the

the transformation will be

gradual,
.

level

somewhere

the choice of being "Red or dead"
and

action

the Big

the

truth

to avoid

pay

the

San Diego Gas &

unsatisfactory
present;
the long term future is too prom¬

bull market.. It takes time to lay
the technical foundations neces¬

telling the whole

(When the DJIA

to be

seems

not

which

mirrors

§iege Economy is dis¬

turbing. .But

Dow

to
a

being

hand, it is apparent that

Index,

197Q's will sail into the uncharted
waters of

incomplete.

was very

delayed

vember)

story. Late last June, the Breadth

The

sup¬

the

United

probability that this boom,

the other

enjoyed.*.

even

advance,

could

(which may

1949-61

the

collapse

is eyery reason to believe that by.
1965

would;

port the view that the May-June

excellent. There

are

30%,

off

also

the

vexing,

reces¬

1964

only

renewed prosperity,

the trading

considering the magnitude rally

seem,

All in all,: the longer term prosr

only

was

does

and

not

past,

•<.*.

the contrary, we have'

boom

trading

recession and the advent

rently is down only 20% from its

rep r

and

the April 19* 1962 Commercial and

Chronicle,

along

market

year.

this

measurable

1963,

'bull

this

It all depends. If the

into

first

and

dispute*

fall

will

coasts

economy

ex¬

May

last?

begin

the

vestor

get closer to 1965.

long

range

1961-62

the

will

relatively

present

child

basis.

timately related to the future. For

which

groups

potentials

How

indeed of the whole

what

The

sold out and which have large

are

Accurate

those

favorites

favorable

market, particularly

While

recent

of the

excesses

issues, will be taken to the wood¬

period, has been the stock

was

June

Siege

the

bull

dramatic

some

the many, still overvalued growth

described,

probable under the

seems

raging

one

1959-62

profits

excess

1949-61

120.

mask

not able

into

then

Index

recovery, and

impact of the rate of return and
which

will

respond

them from the full

protect

and

now

Breadth

values

book

1964-65,

we are

painlessly

circumscribed.

exam*

the transition
growth issues

survive

will

much

many cases

railroads,

even

coast

112

say,

the dimensions of any slump bo*, shed.

already not strangers to regu¬
(the

fluctuate

will

between,

However,
Economy,

the

lation

Dow

changes. The late

index

range

earn

Siege

(1319)

tion

position to dra¬

The Commercial and Financial Chronicle

which the FRB industrial produc¬

over¬

underemployed capac¬

ities, will be in
the

Number 6198

196

deposits < have risen

1950

Since

Service

capital outlays are
the low side.
The
forecasts
some
in--

also

•

of the

myriad other abuses, tyni-

time

for

recovery;.,

the

generation,

first

wholesale

prices have actually declined dur¬
ing

sion).
•

(1)

.;•.

cal

period

This

business

constructive

expan¬

situation

The

bear

market

are,

may

broadest

are

sort

the

30,

There

30,

many

mounted

course,-

opinions.

gling

under

the -weight,* of

the

(that .is,

the

past

we*, seem

emotional

; everything goes
which

phase

where

manv

groups

exceptions

many

special

down together); / What,

consequently, those

are

the

.mid-1950's.'
reassuring

abuses have

"Nevertheless,

that

been

additional

piled

in the

last

18 months which could

the

convalescence

ness

..or

small

margin

quite possible
early next

(2)

the

late

this

year.

new

bull

likely for

some

time

year

;

DJIA

market

(many

";
is
ex¬

basic -busi¬ cesses yet remain to be liquidated
and
corporate earnings will
fundamentals .that has been

It is

probably

possible, therefore, that the

coming

downturn

moderate
as

technical
be

delay

that

could

would

policy

and

trendlessness

classi¬

situations.
)

should

then,

000

the

clining
(3)

the

than $45,000,-

earlier date to

the $893,595,000 at June 30, 1962.

investor

average

trend

for

moderately
9-18

de¬

months).

Therefore, the prospect for

the Intermediate term is

trading

factory

compromise

quidity

and

'other

li¬

There is
alternative.

selectivity.
prudent

Specifically, j I
that 25-35%
folio

between

should

advocate

;\yould

of the

average

aside

set

buying reserve; the remainder of
the
into

portfolio
those

should

groups

shifted
are most

that

depressed and which will have the
greatest possibilities

in the com¬

may

easily

Economy

the

Beaupeurt

demand
and

valued

growth

stocks

and

other

The Service looks for a
improvement in steel
and operations this Fall,

predicts

construction

In LaJolla

record

JOLLA, Calif. —Woolrych &

Beaupeurt has been formed with
offices
at 7946 Ivanhoe Avenue
to engage

securities business.

Partners are Edmund

and

^dward

H. Woolrych

Beaupeurt.

Mr.

TCmiit.v

was

Securities

Corporation.

that

full year new

outlays

will

$60 billion, up $2.5

hit

billion

1961.

from

Woolrych

the relative stability of the

moderate

range,

the

only

Interest rates may
bit, but will not show much

year-end.

change.

port¬
as

commodity prices are

probably edge up from its current
level'of 105.5 to around 106.5 by
firm

Woolrych and

inventory

Wholesale

the

•

likely to remain-relatively stable,
but the Cost of Living Index will

almost

»' We

crease

have

resources
less

period of prolonged

sense.

entering

and
from

formerly an officer
rang?
characterized
by
vicious ing boom. Aggressive advantages
selectivity. As the market pro¬ should be taken of rallies which of Woolrych, Currier & Carlsen,
Mr.
Beaupeurt
was
with
gresses
through
this
trading permit the liquidation of over¬ Inc.

recession

to. $906,549,000

1962,

are

underway since 1957.

fied

1950,

accumulation
at, June- from the third quarter rate,, which
will help lift industrial output.

$41,000,000 at June

waning

thoroughly sold out can during this period of travail and
is, in part/ mitigated by the'fact
.now exert a stabilizing influence;
great
expectations? I can only
that the Economy is still strug¬
despite this, however, new lows recommend the
ancient, unsatis¬
secular imbalances inherited from

from less than

discussing the stock market

outlook, the United Service points
out that speculative excesses have
been

liquidated
"hot" new issues
glamor growth stocks). It is
pretty thoroughly

(especially the
and
an

excellent

values* that
stake

time

upgrade-

and to be shopping for
will provide a good
in the next major market

holdings

upswing.

The Commercial and Financial Chronicle

(1320)

Life

Municipal Syndication From

Insurance

increasing

Manager's Viewpoint

which may not

always be within

the exact terms

of the trade based
of ready success.

the assumption

But

other procedural matters,

any

this

than

important

the

that

recommendation

earnings have been curtailed by
the combined effects of smaller

spreads, while the work-load and
leadership'; requirements

best pos¬
sible bid. To that end, it is neces¬
to obtain the

members

that

frank

state their

position to the manager

when they

have no interest or for

other reason do not want to

some

make

strong bid, rather than to

try to stay in the account and hold
bid down.

the

dicate

there

ible: to go into a bid-setting ses¬
sion with some fixed notion, such

that the spread must be "x" no
And above

matter what the scale.

all, it is desirable that
amounts

larger

members
their

than

original participations, to be per¬
mitted to step up and do so to the
extent

the

whether

sound

the

always

judgement,

resulting

lineup

enough strength that it

promises
a

this

question

smallest

risk

business

stay

the

credit

beginning of this year,

life

insurance

protected

$33,493,000,000 in loans under 45,individual policies and

syn¬

certificates.

group

aver¬

of 25 years ago, while minor
100

200

bonds

for

credit

policy

average

policies.

time

has

out.

run

manager's obligations and
sibilities

the

Alan

respon¬

syndicate,

Weeden

but

has

really

insurance

life

written

oplicies

mark them to pay

would

most

that I think the

say

important is the manager's

judgement in composing

group

well suited to the business in hand

which

directly

buy

and

distribute

competitive

battle

half

and

won,

than

this

under the

comes

discretion

account.

•

debts:

life insurance to

mortgage insurance.

loans

are

credit

life

reflected

not

totals, since the

majority

through lenders.

resents only about 5%

rep¬

of all life

insurance in force, it has been the

life coverage

World War
To

since the end of

II.

life

this

insurance

business

has

co¬

sioners

Insurance ^Cdhimfs-

' its'

work

oil> 'ffiodel

state

lowed to

cipal syndicate.

stand in the way

en¬

abling the aggressive members of
a

to pool their forces

group

increase

their

order

this

improve the bid.

matter,

bond

itive

of the municipal

industry
than

ible

and

underwriting risks

are

much less flex¬

participants in compet¬

bidding for utility bonds.'

Refers

to Practices

some

cases

the

that

kind

mutual

relationship, and I think that

most

of experience and character which

management

judication

applies

the

inevitable

ad¬

conflicts

the members.

exper¬

insurance

regulate

commissioners

amounts

and

interests

both

avail¬

borrower

lender.

and

states

position

This

course.

part

may

the; undivided

nature of

our

un¬

matter

due

liability

Rico have adopted acts

after

the

Four

other

patterned

Commissioners'

model.

states, including New

York, have passed differing
also

authorize

commissioners to

acts

insurance

regulate

credit

member has to size

every

situation and decide whether

new

wants

amount,

participate for

can

see

change the legal form of the
dicate agreement.
that requires
.

"X"

reason

syn¬

It is only policy

changing.

ness

precedents

many

mittee

action

subject

those not

but
a

the

for

fixing

reoffering terms,
ways

com¬

bids

and

almost

final

look

I think that the

managing

anywhere

committee,

by
to

dreds
to

leave

will

hun¬

force

discretion

management,
himself

including

dozens

members

life

decade has paid off
debts

the

for

either the

with

manager

various

Participations

has

proposed that the syndicate
ager

be compensated

him to take
than

the

for

Managers

times

1962

total

man¬

larger participation
I believe

in this.

Together with the entire major

the

alone

the

past

estates

who have

outstanding.

nearly

cording

are

Pay¬

for

Institute

Credit
the
be

life

cancelled

insurance
nance

insurance
that

if he

ac¬

Life

which

case

Credit

less

than

ago,

billion

ance

loan,

repayment
death.
covers

installment

has

increased

$5,000,000,000

dollars

the

been

credit

end

insur¬

important

development of

credit,"

the

aid
con¬

Institute

solved

never

the

against

man¬

pot

can

decide

the

term issue and what

about

not it

not

proper.

Trust
Company
charge of its elec¬
processing units will

professional

computer

College,

instruction

(8)

not

all

agree

whether it is correct procedure to

along the full takedown to

joint account which includes
dealers

programming at Pace
New York City, during

not

members

(9)

The matter
or

the

The four-credit evening courses

pre¬

members of data processing
computer center staffs of banks,

pare

stock

brokerage firms, insurance
companies and major commercial
industrial

develop

organizations
to
enlarge their profes¬

sional skills in computer program¬

ming. Students must have a basic
knowledge of computers to enroll

of how much
issues is

new

should

proper

properly

penses

account

<an

neces¬

deter¬

assistant

and

of its

head

should

"Electronic

This

will

course

a course

Computer

Systems."

cover

concepts in
design of electronic computer
systems with emphasis placed on
the

internal

and

tems.

Classes

external

controls

Thursday
7:25

p.m.

i. '

meet

Tuesday

from

and
p.m.
to

5:45
\r

The

would

feel

evolve

put

dropping

all feel

answer

lies'Th the collective* approach
in'

mutually- examirim'g *; our prac^-

tices and arbitrating any supposed

inequities
the

that

syndicate

not

exist.

After

license to have at

all,

that

agreement

partnership agreement,

other.

to the members.

one

an¬

limit for

faith

procedures

ously.

search
table

most

sure

the

accepted

for

Dangers

man¬

up a reason¬

after

that

all

inertia

Divided

that

has

held

to hold
issue

problems

many

segments

formed,
start

holding

has

inherently

being

little

our

being, at

standardized

unjust,

not

between

asr

managers, and as a source of some

time

same

ing register the desire that it,
I
an

not

the

solutions

whether

acceptable

lieft; toythe

future.

before

crawl

percentage

supply

work,

are

also

These

better

are

to
are

have- to

But

walk,

can

divided

try

encroachments

Nor is it

pre¬

meet the exciting chal¬

pared to

lenge

ill

obligations to the public

of big government.

either 'its

with

cope

indus¬

itself

against

inevitable

the

all know that

national

of future

growth.

hope we are able to work some¬
It would
future.

our

also

would

pleasant, friendly .business

pleasant.

even

to en¬

serve

talk

by Mr. Weeden at
Municipal Conference, Chicago,

the First
111., Sept.

leadership

and

peripheral benefits
but

all

agreement

these rules.

con¬

arrived at,

once

universal

get

abide

large

imagination,

They

rec¬

point

that many managers feel

—

they

con-

achieve

can ever

of us;
can

whether

know

industry

make

must

I would

hope that the people at this meet¬

thing out.

management's

here

made

new

establishment.

apt to view them

At the

meetings.

been

be continued.

can

obvious

given

was

at¬

up- an

getting started, getting commit¬

feels

ognize

Industry

tempt like this until now—inertia

prepared

their

syndi¬

our

certain it is not intent but

crete

these

point

equi¬

handle

tinud.

better and

ways

industry. The rank and file dealer

managers

cates.

syndicate practices have not been

view

we can

compete fairly andharmoni¬

questions that perhaps

cleared.

that

of
—•

expenses

manager

checks

Enumerating

raises

Set

framework within which

all

At present there

(11) We should set

nec¬

this matter.

agers on

able

operating

against

great diversity among

We should create

uniform

But

cleared

in reporting these,

essary

that

any

not

only

are

definitely

maintain

1962.

11,

Twin City Inv.

earned.

that

rigid

Women Elect

rules tend to reduce the flexibility
that is essential to successful

man¬
MINNEAPOLIS,
M i n n. — The
They may be right, but Twin City Investment Women's

agement.
both

sides

can't

viewpoints
each

are

year,

wider.

Nor

right.The

too far apart. And

feel,

can

the

gets

gap

industry

our

right in allowing this split to
sist

—

that

sticking

longer

with

serves

per¬

status

but dis¬

us.

There

president

Banking Methods

Department will direct

accounts.

ex¬

answer

from

Club,

organization of Minneap-

Paul, Minnesota women in

olis-St.

investment

the

annual

field,

meeting

officers

President

Named

held

their

election

19.

Sept

Blyth

Wilson,

and

Co.,

Jane

was

Inc., Min¬

neapolis; Vice-President—Frankie

D'Angelico,

vice

solutions

from -v wholesale

and it

charged

—tfclso, the method and detail

tracts

Michael

wise

tees

quo

in any of the courses.
Prof.

don't think many

that

syn¬

(10) What constitutes valid

fair

designed

fire"

the

some

mined.

Mortola, President of the college.

and

into

pan,

Correct Solution

eThe

advertising of

iand

specifically

i»)v

dicate.

Fall 1962 semester, it has been
announced
by
Dr.
Edward
J.

its

are

his

would welcome this type of valid

Manager's Viewpoint

which insure accuracy of perform¬
ance of both, equipment and
sys¬

order

that

only of the5 "put of

hance

data

Bankers'

War II.

to the sound
sumer

union
the

and from well under

growth

has

fi¬

now

total

half

"This

be¬

$34,000,000,000 in out¬

decade

of World

die

borrower's

loans
This

will

bank,

credit
made

insurance

than

credit.

the

prompt

the

assures

debt

should

protects

guaranteeing
in

his

Secondarily, the

company,

retailer

give

borrower

get of¬

the

member

short

ager

Bankers

executives
tronic

expected

$175,000,000,*

Insurance.

from
been

by allowing

other majors;

$836,000,000 in

families

died with loans

committee.

Larger

Syndicate
At

of American borrowers

standing
Favors

insurance

fore repaying it.

growing burden

accounts

from

Credit

later

dissatisfaction.

Three,

al¬

the filing of bid limits.

Under Credit

ments

We have in the municipal busi¬

during

We have

Programming

the

frying

sign is

proper

To Teach Computer

Life Insurance

and

maturities

bond

voice in

insurance.

Debt Repayment

municipal syndicate,

but in view of the freedom which

members

times,

firms which in the utility business

derwriting

the

get

Puerto

and

ienced recalcitrance from the very

accept shifts in final bidding

these

good

far,

period.

has

that

A
talk by Mr.
Pfeffer at the First
Municipal Conference, Chicago, Illinois,
Sept. 11, 1962.

the

"Q"

bidding going

—

the

might find

was

variety.

fered to customers who could not

ability of credit insurance, in the

important factor in this

syndicate relationship is the blend

have

sense

trust

It is not legally a
in every other

but

of interest among

Utility

Underwritings
In

partnership

bank

strip order

some

burgeoning field, the

legislation. The model act permits

muni¬

auction

member who drops from

account

.mobility

not.

take the most maturities

can

sary

bring state-by state uniform¬

ity to

arrive

to whether

bQnds

regulation

Under

among

fastest-growing of the major types

about the

relationship in

ori

Who

pass

Although credit insurance

pride of position should not be al¬

pleading for is that

popularity contest
member gets his

great

purchased

are

the

repeat and en¬
dorse what Allan Weeden did say

All that I

could

seen

ding,

particularly large category

sociation
like

would

sure

a better way of
handling presale orders. Too often it turns into

(7)

off debts.

heading of strong operated with The National As¬

leadership.

ear¬

particular credit, be¬

given the right partners, the

cause

and

Most policies to protect mortgage

along

one

problem of whether

titilated you on that quite enough.
But

(6)

insurance

cover

was

deals with only two accounts bid¬

them

was

Since these totals include only
life

One

little bit about the

(5)

$740...

of such personal

drops

himself.

have

main practically unchanged.

going to talk

with

and

The

certificate

re¬

Strong Leadership Essential

proxies

total

the

best' succeeded

Continued from page 10

262,000

par¬

continuing

any

interests of

bonds

that

appreciate

raises

drop¬

to Offset

necessary

outs.
I

have

think

permit those who want to under¬

you

Problems Needing Solution

through installment

through lending agencies, they do
holding:;their dollar •'interests. I
not reflect
fully the extent to
can show you instances of syndi¬
which
American
families
have
cates in which major participa¬
protected their outstanding debt.
tions including the manager's have
Many purchasers buy individual

and-take; certainly it is indefens-

write

the

that

ticipants

must be a certain amount of give-

find

age

democratic

syndicate,

municipal

association

any

will review the past 25 years you
will

services

credit and loans."

individual

enough,

Paradoxically

budget

falling amount, about 82% was issued as
been group insurance, the rest under

been reduced to 20% of the

Give and Take Necessary

have

manager

enormously increased.
.

sary

the

upon

allow the

members of a syndicate
manager

and narrower

participations

provides

purchases of countless goods

and

the manager's underwriting

group,

Continued from page 11

Thursday, September 27., 1962

°{El£ Municipal Bond Industry-

measure

tion to the families which

their
■

"It

said.

are

who

some

lies in members

accounts

the

where

feel

dropping

they

rules

But

this

don't

bidding

else.

someone

and

reasonable solution.

the

Anderson,

Inc.,

St.

lotte

with Pierce,
not

That kind

Paul;
Hazel

Gautschi,

Treasurer—Char¬
«

Fenner &

Recording
S.

Egan,

Mannheimer,

Paul;

Merrill

Lynch,

Smith

Inc, St.

Secretary—Mrs.

Norman,

Kalman

mobility for members is restricted

Company, Inc., Minneapolis; Cor¬

responding Secretary—B e v e r 1 y

number of considerations

corporate

relationships,

—

personal

friendships, customer and banking
ties,

and

position
A

the

available

Further,

underwriting
elsewhere.

some

our

giant

Henn,

St.

Insurance

Paul Fire and
Co., St. Paul.

President

Retiring

Marine
.

Edna

Kleve, State Board of Investment,
St.

Paul.*

WU'

Volume

Number 6198

196

■

•

■

■:

...

The Commercial and Financial Chronicle

(1321)

As We See It
conceived

economic

Thrt
The

the

dozen and
have

not have

dozen

half years

happened

Even

happened in

natural

could

that

half

respect.
had

prior

and, let it be

clearly stated that that dominance

not

was

n,pflri

flw

complete

chnnld

disturbed

now

not
+,

about the

position of the dollar in the
world

monetary

centers.

What hat; hannened

in recent

years

.v,

one

marked and

luTt

the

most

striking develop-

being

been

nat mosJ °f tha Politicians done, presumably to correct
who control such procedures or offset these adverse fac.
mechanism

lntncate

difficulty. In

f international couraging

it is

same week in 1961. Our compara-

due

rapid

growth

time and savings deposits.
*

adds, to the

a sense

expansion.

-"An exceptionally large propor- tive summary for some of the
tion of the expansion of loans and pri"cipal money centers follows:
investments in this period has we* Ended ^(ooos omitted)—.
'

at times is the fact

and

recovery

dis-

much of what

dimmest idea °

were

forces

century
-

manv

world

they had during

World War I

that

situation

a? these nacl or have buf the tors> in.actual fact

given the degree of dom-

inane!

guess

SSHjiKE.'., bu»n„-."S nY.'&S W X

determination. What

would

treated with greater

the

with

cause

absurd

past

in which natural forces

been

sarily

neces-

happenedAa? aD?ur61 guess ™ai many 11 that

that: what'has

during

YE;.

not

borrowings .would not

caution in their makes the
lr.no nnrl «Wt of it all
distribution. Indeed it is not heartening
long and short ot it alt-

force.-:M. '-EE.

;T£±£ifiBTS The State of TRADE and industry

..tempts to shape l.r8« .degree by short-term

affairs

world

;;' '

•*

"Both

en-

wholesale

pr*ces advanced

Boston-L-*^n-Vv!^940',933 '^861
Kansas city

and

the

together

;

retail

Steel's Output Up 2.0% From Pre-

ceding Week and Down 18.9% ;

■

during the month.

re?cies# ^ is .for this reason TTporJo XTqcqqii
that S0 mUch effort haS been
IN dbbaU

„

DersuaJG

somp

+hf»

„

The

•

Chase

Manhattan

°f whlch

We haVe m0St gen" manager
of
erously aided in recent years 'group which

tie

__to

part of the bur- a warded

up a

"The ! announcement

Bank

Sept.

the

cal year which ended June 30,
caused surprise in all quarters.
Instead of the generally expected

was

Nassau $7 billion, it developed that the

$17,200,000

den that is

these

balances.

short-term
find

now

that

assets, so far as they have

increased,

liabilities

our

"short-term.

Our

deficits

peen

maHo
maae

from

our

tracts

at-

for

Jnld

gota

mone-

The fact is also

substantial fur-

very

ther loss of

gold would hardly

of itself do

harm.

great deal of

is rather

what this

nntwarH rhnvpmpnt
outward movement

interpreted to
does

sense

term
in

nf p-nld
OI

effect

and

for that matter

Picrn'

mftc

whim

f„

the

foreign

seen

many

«riin»

always

ic
IS

possibility—and it is

that fact that makes the situa-

ticklish

rather

tion

all

it.

Now the
to

which reference has

made

political

niirplv

punnnmiu

are

re-

erations.

fact

Were

that

being

financed

case

effect .they

offering
•

Allyn

stood

Bank

nressure

for

grants

course,

$9.9

surplus

was

wm.

The

£ ?o«?

seni

xMHtute

index

concludes

Ingot

with

Production

Districts for week ended Sept.

19G2>

*index of ingot

Production for

sePet. 22,"19V

North East Coast—

billion.

Buffalo

wTteburJT'r'^M
Youngstown"
"Cli 58''

A
i

—I

Cleveland

103

Co.,

Inc.;

Spencer there

was a

.-.J:';-

g: ^ sh'
'-y

Southern

the June

Western

r >

;7,

V
Total

92.1

—

;

bil-

$17

surplus in the second

Pollock

Inc.,

welcome

While

one

•

Meel prospects Brigmen

conservatism

fiscal finance such

,nn.

Co.,

billion.

an-

J°r °ctober

shipments

steel

development
it is also

125

Chicago

Detroit

4 Apri,ea*d^^

22^

follows: E T

$3.6 billion, and that
the

l-Sept. 23, 1961, period,

the

upon

$7 billion deficit for

The, Connecticut setting this against
Trust Co> Hartford. lion

pressure lor grants

Tgn

ex-

reluUlng,

Hon

Co.;

and

ground that they tend to help Reynolds

|005

t e Ja

heavy tax collections

develop backward countries Trask & Co.; Roosevelt & Cross quarter of $1.9
thus relieve in some de- Inc.; Francis I. duPont & Co.; the interest of

according

steel Magazine will increase by

and ot^r^governnifflital gifts. Federation •B®"k & Trust Co.; parent ^ thg Feieral Gove,P. 5 to 10% during October in spite
It would be difficult to say in Am™ Secunhe^Corp Bacon, m£nt was actually a deflationary of disappointing September bookwhat degree this exception- ™a
'qC>"g5R ^illis(on force during the second quarter ^
heavy flow of foreign in- & Beane. TiIney & Co.t Fahne. " t'L "dampening ^otVe Mil,s don>t have the °rde,s to
vestment results from faulty stock & Co.; Rauscher, Pierce & econo4c
recovery
£ck. U£> that Predi6!iof *et' bat
y'

Publlc Pollcles here at home— Co., Inc.; Lebenthal & Co., Inc.;
mattpr

g eiia

ary

•

sents

rePre"
effort to get behind

tractive. It is, of
that
,,

costs

our
n

are at-;

a cos^

which change. Mr. Maxwell is

-x'

There

+1,0+

no
o

turbed

world

D1UL1V

denying,

thoroughly disis

substantial part responsible

tion."

Allen

City,

;

Company,

announces

v:-.

Bank
show

"Rnnrla '
■

that it has

Fed-

can't

sold

meet

request

for

instant

delivery, another will,
*

Upturn Lacks Momentum
Although
a

orders

have

been

gradual uptrend since the Labor

Day letdown, Steel Magazine said

-August

rate.

Several

this

decrease

compared

week

orders

were

still running

will

with

because

telegraphic advices from the

chief

cities

cate

that

for

the

country,
week

indi-

hadn't picked

ended

'
But Mllls See
,

automotive

M.„

October's

little

largely
_

demand

enough to offset

year

the

re-

last week that their daily

behind August figures

clearings

mills

ported

Upon

York

are

tradithey

willing'to bet-that if one supplier

a«°- Preliminary figures seasonal setbacks
compiled by the Chronicle, based and construction.
a

;

New

the

1961 Week's Volume

JL UIIIUIJAC JJUIIU.D
■

and

Bank Clearings Rise 3% From

MqQQ

lVIa

of Tnvwnilrn

+v,A^iirti,ii,

situation

Users

eral-National Mortgage Associa- they're just getting back to the

1-clnPK

of Health, Educa-

substantial part owes lts Allen & CO. bellS
existence to public policies.

October tonnage
starts.

year kn0w
that steelmakers
have
but plenty of idle capacity. They're

^ax» col-

for most of the

tion and Welfare,

__y..

corporate

partner commerce, and

40%

gieater-than-expected reve- paying uttle attention to
nue9- Collections of individual in- tional leadtimes because

Wall Street, New York City, mem- unexpectedly lower outlays were
bers 0f the New York. Stock Ex- the Departments of Agriculture,

...

of their

after the month

Hickey, Franklin & Co., Inc., 45 which accounted

They'll probably book 30

disappointing

.2,,

substantial part reflects the in Tucker, Anthony & R. L. Day.
monopolistic position-of wage
F
R
5
'

expire.

re
confident that demand
will 'accelerate before leadtimes

ticipated expenditures rather than

they

DfTTlpVpV Franklin come taxes for the full fiscal
soriae UilllCKtJy
1 dlllVllII were iarger than budgeted

+hankc

large

^
+1?
T^rge part to the cost ot labor

prim-

the

clear On Oct. 1, John C. Maxwell, Jr., lections more than offset these,
often higher W!M
a Vice-President of The departments and agencies

^b^S coun^ry>

for

June surplus lies in less-than-an-

MaXWell TO Be VP.
^„TT.

that the

are

explanation

course,

are

•

doubt that some of «
J? ®
^ ^
instance8 tax benefits

"Indications

and J. A. Overton & Co.

r^ar^Ha

rather for the so-called dollar situa-

That,being, the

deficit

2,114,000

plus- .The exPectation was that
the 8ize of the June surplus

& Webster Securities Corp.; A. C.

en-

considerable,

bring many Bank New York Trust Co.; Harris the full fiscal year.
anticipated. In Trust and Savings • Bank; Stone
"it now develops that

thev have been

output

Production this year through
®ept' 22 amounted to 73,016,000

June, receipts typically exceed
disbursements resulting in a sur-

Smith, Barney & Co.; Chemical

couraged by officials on the

^11Y.oo

purely economic conoidconsid-

+bQn
than

now

'unilateral trans- course, that a

been

already
spohsive

the

was

may

week

Chase

the

mark

Because

3.30%

The

the

for

are:

upon

A World Situation

Political in Nature

fers"

times.
;

things not

bad within the

p~o

f forrn'
short-term Uoiov^oc
balances

these

subject to

nervous

currencv

for-

our

enhiput

dtp

are

who have

owners

torw

"nn call"

cmd

final judgment

Manhattan Bank

soon

were

yield, from, 1.60%

maturity;; out

year's

f^onomy. A.s of the end of May

„

ernmentS- There can be little

«.

and

the-,1,963

the short-

foreign investment

orniixrilonV
equivalent

scaied

programs by foreign gov-

course

are

rpnffpr.

°n reoffering> the bonds

that does the

finance^ so ^large a

our

finance.

is too

course,

tbem- Time

borrowings which have

part of

gold is

and in

mean,

mean

damage

event

course

more
more

iar

needed

purposes.
a

that

particularly in its effect

with'gobd'judgment as' Wdi- fojr th°se dm-Mx
cated by the profitability of
Associated
with

public attenis

far'

bar)
had

was

that

snipmenxs

gold

fact

wh
we

than

of
most

The

that
that

part

gold stock, and it

the

tinn

pected

appear

Bon by which it missed the

annual

borrower.

have been made:on the whole

pass

Bxr

are

have

"loss"

this

tary

they

years,

setting

coupon,

net interest cost of 3.0367% to the

capital,

"long- the operations they

mostly

are

term" while

invest-

American

figure much larger than the recent
increase

foreign

to a which has grown so rapidly in

our

3.10%

the

production*

decline of 18.9% compared to last

Federal budget deficit for the lis- tons (-113.5%).

underwriting

Data for the latest week ended
Sept. 22, 1962, shows

Expected

Sept *?'

>*"

Federal Deficit Less Than

^01111LV vJlTOUD

other

^SUade of?he worldJnost

made and is being made to P^vn-nf-rT pVA

abroad

came

9 2

a!?

foreign investments ments

of business

financ!.al matters; °r m"c h large is appparently awaking £Fr#m LaSt WS WeCk
curloslty about how these to the fact that the dollar is the 1st five years! Consumer
thAcAcordi"g toTdata compiled by
P^ments were financed. It no miracle currency.'
costs edged upward again to
!»d
doea- hoWeV^' aPPaar ^ be; .
•
new record high Wholesale prices
^^
airly generally realized that
,.
.
~
fT tons (92.?%). 'as agiin^ ij&m
ChaSe Bank
' '
Jia the ^ ending
a°llar m reA?nJn c orner cur
slight advances

.....

and

830

.5741080

6J?3.883

July. While

"unilateral transfers"

tsiT'-

1962

"UKS X 11

Prices Rise

that the world at

„Se« \2-

generally regarded County' ^ew York, various pur- deficit was $6.3 bilUon.
period, was that
essentiai to stem the tide of 19056 bonds, due Sept. 15, 1963
'While the actual defied was
foreigners Supplied exchange
.
..
.
through 1991. The group pur- enormous in its own right and
-that is built up their short- socialism and communism un- chased the bonds at competitive was the second largest in our
term balances npre
but our der Russian tutelage.
our
sale on a bid of 100.835 for a peacetime history, the $700 milterm Daiances here

ments of that

„

in canmaking
,

0ctober> Gains.

arrival won't trigger

block of $500,000 4%-5% Boston Saturday, Sept. 22, clearings for a buying upturn of major proportion It would hp fnnli<?b tn trv Extension
Series B Revenue all cities of the United States for tions, stated the metal working
ion. It would be foolish to try
Bonds due Jan; 1? 2002. The bonds
which it is
possible t0 obtain weekly, but it will mark the end
to assess blame for this are part of an issue of
$80,000,000 weekly
clearings
will
be
3% °f large scale inventory adjustworld-wide state of affairs, to finance the Boston Extension above those of the corresponding ments by two of the Big Three
What, is obvious is that the to the Massachusetts Turnpike.
week last year. Our preliminary
". Continued on page 30
a

The Commercial and Financial Chronicle

(1322)

Qfo-fn nf TP A DF onrl TXFDTTSTPY
X llv3 OL/cLIa^ OX 'X JAixi-X-/Xli cXlliX Hi X/UuXlvX
of the American Iron & Steel
Institute, told the Senate Judicinidation stated can be expected ary Committee - operations are
publication steScar^ expected.
Continued from page 29

man

Here's what the steel

automakers

a(. the 55% leyel

Chrysler Corp. will start buying
at

strike

its

cut

company

A11

buj.

few

SrLSuom SteTteakerswho
recently:«y

have been in Detroit

^a,e:™ct7Ltrr"
rlS

-l

also has its in-

place some sizable October orders.
one
rub:
Some
steel-

supply

(It

ments.

50%

about

usual

than

higher

pemSge

olant

steel

Rouse

Company require
furnishes

normally

probably do better.) Said one
figures that

can

longer feels ob-

rate of

inventory

con-

trol'
i™111011

«?aid

nearlv

four

its

builds

quarter as it did in

that

last

period

we're

going

This

shows

and

lines

Imperial

Loadl"g o£ avenue freight m
the week ended Sept. 15. totaled
586,626 cars, , the Association of
American Railroads announced,
This was an increase of 91,340

was

inventory

with

But

coming

cutbacks

the

end,

stage

■■■

cember.

Si96215

production

224,787

—

182,941

^o?dm~ llow
° de s "P'540

won't

down

inventories

its

work

it will

until yearend,

normal

Start placing large orders in Octo-

Haight
Maignt,

E
is.

her -William
ber.
William

director
airecior

215'964

sale level.

higher than normal in-

has

off

18.4% above the preceding

Y^,r

Last

start

...

loSwest:

was es-

and

Edison

institute. Output

Electric

398,000,000

was

low its

Chicago

and

North Western

and

oatSj coffee, lambs

normally

less have never been very
because'of

danger

the

shortages if quality or delivery

problems develop."

General

holds

still

for

cessary

good

models

1963

ne-

strong steel pickup.

In general market reports, some
•

imm.0vement

be-

are

the

automotive

Su to™up?nExcept ftv

rapidly

completing

General

outside
are

—

Slttw> 1.

a^iiisfmpntc

itiTWinfrtnr

—

particularly

Motors,

0f auto sales sparked by

Nonautomotiye Firms End
Cutbacks

+V*o-5t>

large stocks of steel. A good rate

Users

justify

auto industry,

The

pickup, the

buying.

steel

reception
.

rate

good

aggressive

Efforts

30 day inventory.

industry

ground-

will have to move at a

carry a

lav* the

significant

economy

to carry

successful

levels.

Wte

October.

orders

sion

steel fairly

major

Motors, automotive steel
i_

•.

look

contacts

—

corresponding

for

15%

electrical

heavy

the end of September, we
most

have

of pUj

maker

"By

apparatus:

hope to

inventory sur-

our

plus liquidated.
steel

ter

of'

our

Our fourth quarorders will equal 85%

consumption."

Users

ivr

May

into

not

boom rate of

indicated
tion

above

the

Momentum

officials

union's

conven-

for

year

negotiating
some

the

wage

assembly

purpose

early December for

another inventory buildup.
Production

Uptrend

its

auto
a

pro-

last

makers

increase

week

Automotive
latest

21.5%

from

optimum

in 1963 model

output

they'll start making plans in late
November

scheduled

increase, and Ward-S

buyers queried by Steel said

pace

Ruction,
week

reaching

•

ago

Reports said

survey.

The statistical agency

estimated

production for the period ending

Sept>

would

reach

Two weeks ago,

Continues

141,240

116,282

as-

increases

and among
,

week in 1960.

„q

arid

the

in-

Ward's

dustry poured in the week ended

erations

Sept.

Ford

22.

Output

then

was

an-

said
were

Motor.

chahged frormthe previous week's.

caiied for.

that

overtime Op-

extensive Sept.
Cbe

22.

160

industry
million

annual capacity

ingot

tons

—

Thoma®. P.- Patten,-* President

of-four^factories anaking" bothr-Repuhlic:Steel Corp; and Chair- and trucks."
-*-.1

cars

yearv according to spot estimates

mortality

re-

^^struct:lwi nmnmity; re
-

•

^.total dollar volume of retail

tra<^e in the reported week ranged
from 3 to 7% higher than last

concerns

manufacturing

construction

commercial

nnd

both

same

whole-

aeo

vear

but

toll
from

•

collected by Dun & Bradstreet,
Inc" Regional estimates varied
from comparable 19611eveis by
the following percentages: Wiest
Central and East South

Geographically, the week's rise North
was

concentrated in six-'regions. Central 0 to +4; Mountain -fl to

The

gain

year-to-year
the

sents

most

favorable

repre-

weekly

finding since mid-summer.

Dur-

slightly below 1961 to

gain

2.5% for the week ended Sept. 15
a

5.0% increase for last week.

Saturday work at 11 of This result is particularly favor-

assembly plants alt maintained,
including two-shift operations at

ahead of the corresponding It was particularly sharp in the;+5; New England and East North
week of 1961, the American Middle Atlantic States where the- Central +2 to +6; South AtlanTrucking Associations announced toll climbed to 95 from 65, in the tic +3 to -}-7; Pacific +4 to +8;
Sept. 21. Truck tonnage was 20.3% West North Central, up to 21 from Middle Atlantic +5 to +9; West
ahead of the volume for the pre- 6 and in the Pacific up to 75 from South Central -f 6 to +10.'
vious week of this year. The siz- 65. As well, tolls rose moderately ?
r- ;; +
able week-to-week increase js in the South Atlantic, East South*
Nationwide Department Store
consistent with that found ; in Central and Mountain States. The Sales Rose 6% Above 1961 Week
earlier years for the week follow- week's only declines centered in
Department store sales on a
ing the Labor Day holiday;
'
the West South Central off to 18 country-wide basis as taken from

programming and

Pace

>race

gemblies were counted, and
in ing the two weeks ending on
production in the the corresponding week of a year
Saturday
Sept * 22
the survey
ending
Sept.
29
to
be ag0, assailed by strikes, the in- Indicated that'
geAeral freight
slightly higher than the 1,682,000 dustry made only 73,034 cars.
traffic had shifted from a level
Steel estimated

the

conimercial services

rpfailin?

service

lifted

24 ~ Fewer

frQm

than

a8° and 55 in the corresponding

Look'for ingot

that

re-

manufacturine

„monc

from 21 and in the New England
States. Five of the nine major
regions had fewer casualties than
iast year"

week

tons

Good

m,'1

„

corresponding ,pu™

weekended Sept. 15 was an even

-u vi

they'll reopen their contract

quarter

1963 Auto Output Gaiiis

ear

the

third

steel

arlxronf

Intercity truck tonnage In the

that

the

Whni»cQio

nortnrl

will be the lowest level in years.

off'
but

sugar

rve

24, down from 272.80 on the corresponding day a week ago and
feU considerably below last year's
level of 275.36.
'
: ,:
^
,C°nsumer Purchases Hold to
*

onrroennndinfl

fhn

^tercity Trucking 5% Ahead of
Last Year

beUeved

earnings

hides

price

rnmnarahle

improvement

<2*

Steelworker

and

companies

Rapidly
United

Even

increase

monthly

Rebuild Mocks

perspective.

;

felines
corn

be-

want

Added

rate."

high

where

right

ihe

nss-fnr

Dailv

an(^ 321 in 1960. Some o0%
The weather was mixed and so
There were 12,020 cars reported more businesses succumbed than were retail sales in the week
loaded with one or more revenue in pre-war 1939 when the toll was ended Wednesday, Sept. 19, but
^S^way trailers or highway con- 239.
'
.
overall buying maintained a solid
tainers (plg^J f™; in the week
Failures with liabilities in ex- advance over 1961 volume. With
ended Sept. 8,1962, (which were cess of $100,000 held steady, num- lifting conditions of dry and wet,
mcluded in that weeks over-all Bering 36 as against 37 in the hot and cool prevailing in most
total). This was an increase of preceding week and 34 last year, sections , of f the - country the
2,219 cars or 22.6% above the cor- Casualties' with losses under shopping pace slowed from the
resPhnding week of 1961 and 3,064 $ioO,COO climbed to 275 from 233 heavy clip of; the previous week
cars or 34-2^ above the 1960
were down from their com- hut still held a substantial edge
weeh*
parable 1961 level of 303.
over.'last year. Women's apparel,
-Cumulative piggyback loadings •
in% st
,
tr'd
junior wear and men's clothing
for the first 36 weeks of 1962
maustry ana traae groups continued to gain, but home goods
totaled 476,850 cars for an inThe TTly see-saw«d ^'derably.
crease of 81,914 cars or 20.7%
,
-r,r,ParPd in
wtale lull sales slackened in the
car nrPOPfSincf th»
nf
^
URo
g uppe
"U
II -iC
Usual
,'

it ggjjj Qf October over September hi 1960. There were 61 class I
(at the 20 day' level).
We had with
continued
gains
through U. S. railroad systems originating
no
trouble cutting it down be- November and December.
this type traffic m this years
cause we've been using steel at a
improvement has to be week compared with 58 one year
tory is

leve,
?-.ogoa

;

aKnuo

_i__

£«£

fndlx etsed l!
t
(1930-sT-lm^ Monday, I f
u»ou-^_iuu) on
Sept.

1Qfin

fractional

The

ity

substantial

ter, rubber and sRver.

Business Failures Up in Latest
:
Week
.
.

set increases in

and 1,414,000,000 kwh. or" 9.4%
above the total output of the com-

wopl_

[

declihes^^

sys-

Bradstreerinc

Dun: &

week's total of 16,837,000,000 kwh.

-1

Index

it remained considerably

kwh. below that of the previous

the year.

r ?

leyelso

reported

both weeks were affected by a
~«Plete wdrk s*™e( on the

con-

work for

place

Gff From Prior Week 1

;

cording to

the

general

Wholesale Commodity Price.

^sl *ear

^ WDaf hofiLf Loadines^^in pM8ble 1961 week'

rars

they'll be worked

by the end of

will

100^

■
^

pmated at 16,439,000,000 kwh., ac-

purchases for GM s Oldsmobile trol should end by Nov. 1, steel
Division, told Steel: "Oldsmobile stocks will be well above recesventories, but

Tsf

trend of food prices at the whole-

Commercial and industrial failThe Iron Age pointed out there
dj
reQresented
de- UreS, t0°^ an"ptar"
311
the
are still some questions to be reof c ans
l 6% be-'I
ended Sept. 20 Trom 270 in
solved before there is a good
weekin
the precedmg week' rePorted
gain in steel production.
coyesPondlnS week in Dun & Bradstreet, Inc. However,
First
tirst, although inventory con- 1961> and a iie<5rTOSe of 12j,lX5 cars casualties fpIW'below last year's
although inventory
2Q% bel0^ the

Still

sum

function is to show the

228,684

HHti
182-087

tern

Although General Motors Corp.

Partially off-

per pound
raw
and meats in general use. It is not
Sis«i16 a cost-of-living index.'. Its chief

ded Saturday, Sept. 22,

Year Ago

quarter, steel consumption
running roughly 16% ahead

porn,

moved

oo^ p++tr

^ents te

Electric Output Up 9.4% Over

the

during

that

think set for a respectable pickup in
Ford less operations in November and De-

ship

.hogs

setting these increases were dips
in the prices quoted for wheat

* ■;
the close of last week,

and

moderately higher.

228,-

was

markets,, and

cocoa,

pu?Sne1lirS^eeVnto^
and new orders W. •
' °.

assembly points.

the third quarter.

,»

associations,

684,000 board feet.

Bad Freight Down 1.6% From

steel.'

regional

A year ago the figure

public unveilings.with.

(Sept. 26), slated norfive-day production at six

just

were worked off in

as many cars

year,

from

bellies,

re-

Chrysler

of shipments, accounting for the
outside suppliers, so that they'll depressed
steel production rate
reciprocate in periods of scarcity, this summer and early fall.
cars or
in the fourth

prior week, according to

been taken out of steel inven- Ward's said, 1963 model assembly
The amount of electric energy
The general wholesale
since the peak of the was above 366,000 units.
ditobuted by the electric -m
buildup in Aprti Of this, 2.7 mil.
D
j 6% From
and power industry for the week again in the latest e

liged to protect its positton with

Even if Ford

con-

yesterday

will have

steel

tons of

in-

the

Corp.,

producer,

largest

the

ports

•

pe--; Following; are the figures in
riod ending Sept. 21.
' v. thousands of board feet for the
Chrysler Corp., kicked-off its weeks indicated.
• •

mal
matfazihp

The magazine said nearly tour

will last in- third

buyer's market

definitely.

than

rather

null executive: "Ford
the

-confj.0lled by the

Ford's steel, but it

dustry's

balance. This means
shipments, by that time, new-model

steel

makers believe that the company
Rivor

Motors

have

week,

this

for

been on 10-hour shifts.

five-day

and\"^ehousdes luTb^T

not equal the level

attained in the first two weeks of

Bend (Ind.), although concluding feet compared with 182,941,000 in at wholesale

five'

J^Ta"^ consumer

There's

it«;

ex-

—"

eaAnor*l™

ventory in good shape and should

wantc

Below 1961 Level

General

fairly good

Ford Motor

pockets

Lumber Output Declines 1.5% | the index did

two-»shift

consecutive

third

Saturday operation at its jingle Lumber production in the September this year.
?°£ba (. £
Unlted States ln the week ended Appreciable price advances Were
andSudebakerCorp., atSouth Sept. 15> totaled 224|787)000 board chaiked up for butter and sugar

3rd Quarter Profits Seen

July,

June,

May,

jtg

operations
Steel Pickup and Low

November

inventories

hedge

drastically

The

rate.

normal

American Motors Corp. put in

Thursday, September 27, 1962

...

able,

ATA spokesman

since the usual late

turn
time

was
a

summer

especially strong

year ago.

stated,
up-

+1.

■•■■■

Inch Up in Latest Week
Following
week

ago,

the

slight

dex reported a 6% advance for
the week ended Sept. 15, 1962,
compared with the like period in
1961. For the week ended Sept. 8,
sales rose 13% from, the correspending 1961 week. In the four

easing

Wholesale

the Federal Reserve Board's in-

Food

Price Index, compiled by Dun &

week period ended Sept. 15, 1962,
sales advanced 5% over the corresponding period in 1961.

According to the Federal Re¬
System department .store
0.3% above the $5.95 registered sales in New York City for the
Bradstreet,
on

Sept.

Inc.,

again :

edged

$5.97.

Although serve

at this both in the preceding week and week ended Sept. 15, were 8%
in the similar week

year

ago,

above the same period in 1961.

Number 6198

196

Volume

Commercial and Financial Chronicle
The

(1323)

Indications of Current

The following statistical tabulations cover production and other
figures for the
latest week or month available. Dates shown in first column are either for the

Business

week

Activity
Latest'
Week

'byr-' V^V

i": bb

AMERICAN IRON & STEEL INSTITUTE:
Steel ingots and castings
(net tons).

;

month ended

Month

Week

1,715,000

1,682,000

production based

1957-1959

for

Sep.

92.1

90.3

capacity),
issuing

cent

(per

this

I960-

and

Sep.

113.5

58.5

57.5

86.7

72.5

Total
<

Kerosene

7,094,560

New

8,476,000

8,562,000

7,241,000

Additions

31,327,000

30,713,000

,29,482,000

Sep.

2,898,000

3,204,000

2,899,000

2,605,000

7,307,760

7,320,860

7,283,710

8,581,000 !

oil output

13,210,000

13,106,000

13,472,000

output

5,552,000

5,531,000

5,213,000

Sep,

179,792,000

178,749,000

*180,547,000

175,102,000

Sep. 14

35,989,000

36,429,000

(bbls.)
oil

fuel

Distillate

oep. 14
Sep. 14

165,901,000

Revenue

33,898,000
149,269,000

495,286

582,626

460,461

484,342

596,029

/v-'r-V;

Farm

CONSTRUCTION—ENGINEERING

CIVIL ENGINEERING
Total

construction

municipal

and

Federal

$413,600,000

240,500,000

Sep.
Sep.
Sep.
Sep.

construction

State
;

$467,900,000

Sep.

construction—

Private
Public

$397,800,000

219,000,000

157,500,000
27,900,000

149,000,000

8,650,000
283,000

8,816,000

219,900,000

186,400,000

191,600,000

41,000,000

28,300,000

8,690,000
V
293,000

Pennsylvania anthracite (tons)—

•7,355,000

Public

271,000

SYSTEM—1957-50 AVERAGE—100

a ;

Sep.

(in 000 Kwn.)—

output

105

108

106

Other

16,439,000

16,837,000

17,320,000

Military facilities
Highways

15,025,000

Sewer

BRADSTREET, INC.

steel

(per

PRICES:

lb.)-

DUN &

—

311

—Sep.

_____

IRON AGE COMPOSITE
Finished

INDUSTRIAL)

AND

(COMMERCIAL

FAILURES
i

6.196c

$66.44

$26.50

—-———i—Sep.
Sep.

(per gross ton)

Scrap steel

6.196c

$66.44
$26.50

$27.50

service

All

HfV

other

462

■:

"• ^

*273

275

~
Z.T—

*64

*117

113

*643

v.?

169

651
-149

*103
62
>

*48

*142

n.a.

public

;

*165

•

development

*60

a'f-

n.a.

enterprises

*35

n.a.

■;i

......

FAILURES—DUN

•

*461

systems

and

1,679
V

*78

104

Conservation

BUSINESS

(E. & M. J. QUOTATIONS):
Electrolytic copper—
"
- 11
•
Domestic refinery at_
:
Sep.
p." Export - refinery * at——Sep.
Lead (New York) at—
———.
Sep.
Lead (St. Louis) at_
—;
,
Sep.
JZinc (delivered) at
Sep.
Zinc (East St. Louis) at
—
Sep.
Aluminum (primary pig, 99.5% ) at—
——
Sep.

b',:-

buildings

$39.50

6.196c

Sep.

——

•

water

85
412

27
*1,688

Water

Public

METAL PRICES
'

and

"•

407

271

Sewer

337

285

Pig iron (per gross ton)_.

270

,(.i- ■

bbl;

476

service

and

nonresidential

497

*494
I'V/v *87
,

n.a.

IIII—II

yv v: 160

Hospital and institutional

:7-V'b;:«i47 -'

1,774
—

ult:

Administrative

114

EDISON ELECTRIC INSTITUTE:

.IIII

71 ;

y:y:.25

■

'.\\W

■

.&A

;;

Educational

365,000

'^:S.

I (422

...

53 ,;yb; ■yh-:

feyvb.V

504

•

construction

Industrial

Jep.

private

Residential buildings „1
Nonresidential buildings

31,500,000

STORE SALES INDEX—FEDERAL RESERVE

DEPARTMENT

Electric

other

215
•308

149

.1._~Z
~

...

201

"■

317,.

Other
All

180,500,000

Sep.
Sep.

and lignite

coal

Bituminous

S. BUREAU OF MINES):
(tons),—

(U.

OUTPUT

COAL

utilities

; .'4l6

217

b"!

469

24'

■L-'i."

Telephone and telegraph
public utilities

$399,500,000

212,400,000
185,400,000

193,700,000

227,400,000

institutional

recreational

213

252

—

construction

Public

NEWS-RECORD:
'

Social and

327

Mlscellaneona

489,372

•

246

Educational

103

937

239

225

:-r

428

•

1,025

471

—

Hospital and

586,626
495,345

241

,.,>1.578

*513
113

1,039
;

2,109

*1,747

114

warehouses-.^..

*2,373

437

___'

5,402
3,723

*4,066

i,739.„:

Stores, restaurants, and garages
Other
nonresidential
buildings
Religious

49,430,000

35,300,000

2,290

alterations—

Office buildings and

;

53,486,000

•

and

i Commercial

160,855,000

51,898,000

*163,906,000 v;

54,223,000

freight loaueu (number of cars)
Sep. 15
freight received from connections (no. of cars)—Sep. 15

Revenue

13,336,000

AMERICAN RAILROADS:

ASSOCIATION

—

(bbls.)

Residual fuel oil (bbls.)

;

(bbl.)
at

$255,500,000

*5,754

4,009

I__

(nonfarm)

Nonhousekeeping
Nonresidential buildings
J'-/
Industrial

5,647,000

gasoline

5,783

IIIII

buildings
housing units

30,847,000

oil

Finished

construction

fuel

Kerosene

$281,200,0q0. $279,700,000

construction

(bbls.)
Sep.
(bbls.)
Sep.
Stocks at refineries, bulk terminals, in transit, in pipe lines

new

Private

fuel

Distillate

omitted)

Residential

V Residual

(000's

CONSTRUCTION—U. S. DEPT. OF
of August (in millions):

Sep.
Sep.

(bbls.)

average

(bbls.)
output (bbls.)

output

Ago

LABOR—Month

Sep.

stills—daily

runs

Year

Month

■

(bbls. of

output—daily average

conuensate

each)

gallons

Gasoline

of August

PETROLEUM INSTITUTE:

oil

Crude

late

data

AMERICAN
Crude

86.7

_A,

Month
OF GOVERNORS OF
FEDERAL RESERVE SYSTEM—Month

BUILDING

The American Iron & Steel Institute discontinued

-i
1

of that date:

are as

BANK DEBITS—BOARD

THE
<

of quotations,

cases

Latest

2,114,000

production

—.

operations

steel

indicated

Unofficial

weekly

average

or,

Ago

1,616,000

Index

date,

Year

Ago /

Sep.

that

133

fl-I-I';34 '

BRADSTREET

INC.—Month of August:
30.600c

30.600c

Manufacturing

28.625c

28.650c

28.575c

27.900c

Wholesale

9.500C

9.500c

11.000c

Retail

9.300c

10.800c

Construction number

12.000c

Commercial

12.000c

227

11.500c

26.000c

108.250c

119.125c

88.76

87.31

Retail

85.59

Construction

89.51

Commercial

number

bWIv
y-y

■■

164

112
••

'y 545

217

789

262

187

120

106

129

1,319

1,165

1,604

$36,170,000

$21,598,000

$26,175,000
13,060,000

11.500c

24.000c

260

215

133
622

—

service

11.500c
24.000c

11.500C

number

—

■}

(New York)

Straits tin

at_

/■v,

-Sep:

Government Bonus—

U. S.

corporate

Average

AVERAGES:

PRICES DAILY

BOND

MOODY'S

■

Baa

Railroad

Group

Utilities

Public

Group—

Group

Industrials

MOODY'S BOND YIELD DAILY

Government

U.. S.

Bonds
:

—

Railroad
Public

Group

Industrials

COMMODITY INDEX

MOODY'S

received

Orders

(tons)—

91.05

89.37

l89.23
86.78
81.66
83.53

82.90

88.81

86.51

89.51

88.95

87.32

3.87
4.61

.4.63

4.31

4.34

4.45

4.46

4.47

4.59

3.93

5.03

5.05

4.90

4.45

4.50

365.4

FOR ACCOUNT OF MEM¬
DEADERS AND SPECIALISTS
of specialists in stocks in which registered-

Transactions

purchases

358,439

347,649

514,740

493,054

sales

Food

Other

sales

———

initiated on the floor—

Other

sales.

Short

sales

Other

sales

Total

104,800
320,000

DEALERS

EXCHANGE

—

592,190

424,800

1,067,985

789,055

225,019

141,680

955,631

728,800

870,480

735,820

4,678,615

3,509,455

954,829

767,140

3,624,091
4,578,920

2,757,770

2,807,640
3,211,220

purchases by dealers (customers'
orders—customers' total sales
Customers' short sales
—
Customers' other sales

Odd-lot

sales)—./

i—Aug. 31
—Aug. 31
Aug. 31

—

Dollar value

Round-lot
Number

•;}•>,

Aug. 31

sales by dealers—
of

Aug.3i
Aug. 31
AuS- 31
Aug. 3;

shares—Total sales

Short sales
Other

sales

Round-lot purchases by
TOTAL

dealers—Number of shares

FOR

Total

ACCOUNT OF MEMBERS

round-lot sales—

Other

Total

sales

■

sales

PRICES, NEW SERIES
LABOR — (1947-49=100):

WHOLESALE

—

Aug. Ji
Aug. 31
—Aug. Jl

All

•\

2,595,250
3,167,294

103.1

109.1

1,177,638

$59,023,305
1,214,022
29,393

1,184,629

$59,580,963

3,524,910

1,600,511
$79,561,191

427~020

$63,655,857
1,319,286

.1,578,678

■

105.4

;

—

1,283,448
$66,218,909
404,680

spindles

498~520

404680

517" 100

405,180

494,080

112.0

114.4

111.6
104 8

106.1

109.2

105.6

105.2

107.2
104.9

BALES:

active as
(DEPT.

ESTIMATE

Durable

of Aug.

4__

of Aug.
OF

708,929

>1,536,214

1,783,845

1,905,631

6,680,771'

4,775,307

6,123,426
84,099

...

All

13,833,170
14,709,950

19,773,040

16,296,600

467,958

17,279,000

COMMERCE):

1,500,627

,21,168,810

17,407,880

—

DEPT.

August:
•

Durable

NEW

YORK

100.7

Cash

a
'

100.8

98.0

*103.2

*105.7
*100.8

101.9
.

tNumber of orders not reported since introduction of Monthly Investment Pl&nwhere freight from East St. Louis exceeds one-half cent a pound, a

101.1

100.8

$95.75

$96.56

103.63

104.04

100.44

86.40

86.80

83.58

40.4

40.2

40.8

40.5

40.0

goods

manufacturing

40.0'

$92.86

goods

—

;

—

Total

$2.39

$2.31

2.54

2.55

2.48

2.16

2.17

2.10

$3,772,000

$3,592,000

$4,021,000

—

STOCK EXCHANGE—

customers'

net

debit

balances

extended to customers

J'?riJ!I®nYhn!'ern ZinC

Not: ayauaDie.

23,000

29,000

388.000

415,000

436,000

1,252,000
105,471.579

1,208,000

bonds

1,127,000
108,523,518

108k455,292

324,513,774

318,839,254

368,653,380

592,000

258,000

2,552.000

2,173,000

hand and in banks in U. S
customers free

Market

value

Market

value

listed
listed

credit balances

Member borrowings of U. S.
Member

39.8

$2.37

August 31 (000's omitted):
firms carrying margin accounts—

Member

*100.5

684,942

HOURS—WEEKLY

manufacturing
Durable goods
Nondurable goods

15,282,710
15,801,190

100.0

75.641

104,428

598,610

16,869,000

Nondurable

518,480

*101.1-

;

16,773,000

goods
Hourly earnings—

1,111,280

101.1

•'

536,831

575,655
4____.....

goods

Nondurable

691,767
as

Weekly earnings—
All manufacturing

1,395,770

102.7

105.3

104.3

Hours—

876,780

102.6

figure.

■

115.6

106.8

....

of Aug.

GINNING

AVERAGE

517,100

513,100

storage

LABOR—Month

1,124,257
$81,378,616

1,548,765
$79,971,767

Sep. 18

delivered basis at centers

100.7

100.9

;

LINTERS —DEPARTMENT

FACTORY EARNINGS AND

9,225

Sep. 18

107.3

110.0

September 1, spinning bales

1,633,482

35,838

29,913

.Sep. 18

•Revised
mid

102.6

107.6

106.0

114.6

care

public

Credit

other than farm and foods————..Sep. 18

;

115.6

care

4
Linters—Consumed month of July
Stocks—Aug. 4

1,576,399
$87,722,088

498,520

>/'

427,020

372,670

1,295,762

;

products

commodities

100.4;

106.8

r-:

Meats
All

102.5

100.5

:'b. •" 100.8
_;

month of July
consuming establishments

Cotton

Processed foods

Farm

102.8

100,4

;

106.1

—

AND

Total

Sep. 18

commodities

99.5
t

107.4

103.2

;•

COMMERCE—RUNNING

U. S. DEPT. OF
««,

99.7

99.1

.y:

109.2

■:

Commodity Group—

104.4

107.7

■

All

105.6

99.4

girls'

(SHARES):

99.7

102.9

Consumed,

STOCK
TRANSACTIONS

Short sales
v

COTTON

ROUND-LOT STOCK SALES ON THE N; Y.

EXCHANGE AND ROUND-LOT STOCK

103.8

107.7

108.0

Reading

COTTON

•

Number of

97.6

108.0

Aug. Ji
Aug. ji

104.8

99.0

and recreation
Other goods and services

403,580

110.6

Personal

3,364,920

93.4

110.9

678,300

1,180,650

104.2

111.8

107.5

boys'

and

97.7

102.7
111.9

.*4104.8

...

Medical

AND
SECURITIES

Dollar value

■

y-rs-v-

Public

57,520

'99.7

94.1

;

apparel

Private

772,060

3,064,276
572,044

Aug. 31
• •» Aus» 314.
ODD-LOT ACCOUNT OF ODDSPECIALISTS ON N. Y STOCK

Number

i9,7oo

668,814

for account of members—
:
——
—Aug. 31
■—•—
Aug. 31

EXCHANGE COMMISSION
(customers' purchases)—T

and

105.9

Transportation

337,990

;

572,740

4-——

sales by dealers
of shares

Odd-lot

100)

oil——

Household operation

318,290

8TOCK TRANSACTIONS FOR
LOT

354,050

420,030

97,100
495,090

107.4

105.7

Women's

96,074

Aug. ox

—

fuel

and

102.4

103.5

•.

home (Jan. 1958

electricity,

fuels

103.4

102.1

109.9

home

104.4

103.5
:

100.8

Footwear

678,846

—.

purchases

food

and

Other

107.9

;

-A

Total round-lot transactions

Men's

'y..y.

$1,617,000

105.3 »'■

103.8

I.I

vegetables

away from

1,811,050

686,730

$2,002,000

102.4

products

2,137,410

414,420

-A"|-

sales

Total

326,360

520,660

44,600

sales

Total

Gas

15,079

yi.'b'b

I
;;;1' 'by

Rent

;•

1<M>—

bakery products
poultry and fish

1,708,970

369,820

Aug, ji

Short

—

and

2,229,630

2,173,370
2,806,080 »:

379,300

a
4°'

purchases

Total

-Aug.

sales

Other transactions

—

sales

Total

the floor—

purchases

1957-59

transactions initiated off

—

14,957

$2,119,000

2,238,810

2,300,370

632,710

431,370

1,652,690
2,084,060

sales

Short

INDEX

14,955

:y;,I I

OF NEW YORK—

Housing

..V;

113.74

112.83

113.62

2,923,900

2,006,130

Aug. ji

Total

;

Cereal

Solid

**ug. Ji

sales

Other
-

112.42

FED¬

home

Other

563,859

;

—

I
at

Fruits, and

498,222

BRADSTREET.

105.5

Dairy

358,696

257,064

328,775

;

Other

•

$102,693,000

July:

Meats,

301,263

PRICE

Food
*

343,679
353,534

Food

378.4

Short

Total

$91,574,000

IN THE

items

4.61

369.1

(NEW)

August£|31 (000's omitted)

Month

All

•

Au&- Ji

27,716:000
'i 6,358,000

Housefurnishings

BERS, EXCEPT ODD-LOT
Total

TRANSACTIONS

ROUND-LOT

5,642,000

$146,832,000

INCORPORATIDNS

CONSUMER

4.67

4.49

4.50

366.4

Sep. 21

22,412,000

6,977,000

liabilities

ERAL RESERVE BOARD
As

4.95

4.44

—

29,384,000

33,618,000

liabilities

COMMERCIAL PAPER OUTSTANDING

;

PRICE INDEX—

OIL, PAINT AND DRUG REPORTER
1949
AVERAGE^lOU
___

11,923,000
29,999,000

service liabilities

STATES—DUN
INC.—Month of August

5.12

4.88

4.49

16<B87,000
53,180,000

UNITED

4.81

4.65

4.62

Total

BUSINESS

4.74

■.

4.87

Sep. 15;

3.85

5.02

Sep. 15

Percentage of activity-———
Unfilled orders (tons) at end of period

—

liabilities

80.81

83.79

4.60

Manufacturing liabilities

84.68

81.90

;

87.59

87.18

3.82

Sep. 15

(tons)

Production
•>\

91.48

89.64

Sep. 15

—7

88.81

ASSOCIATION:

PAPERBOARD

NATIONAL
-

Group

83.91.

25
25
25
Sep. 25

Group

Utilities

871321)03^; 87.05

4.61

Sep.
Sep.
Sep.
Sep.

Baa

82.03

—Sep. 25
Sep. 25
—Sep. 25

—

corporate

Average
Aaa

number

Wholesale
88.71

87.32

AVERAGES:

Total

89.51

Sep.
Sep. 25
Sep. 25
—Sep. 25
Sep. 25
Sep. 25
Sep. 25

•——:

108.375c

> 'UC

Aaa

■

89.04;

35;

——».r,—t-.—t—

108.500c

Sep.

24.000c

borrowings

•Estimated,

n.a.

Not

Govt, issues—

other collateral
available.

49,000

443,000

2J94.000

The Commercial and Financial Chronicle

(1324)

Thursday, September 27, 1962

sidered close to the bare minimum

A Guide to Bond Refunding
_

T T

T)rr

|Ua I
Uy l/HC- W

;.V'

v.,

•

* 1 * j

Xliuuuuj. j

annual^

«t489 800

responsibility of the' cbmmon. n?™. .jssu?- .
stockholders.A utility company centage eosi
the

charges

the

per-

/o.

the example, the company would
still earn a 10^% return on the

capital

11 TV mnllfttrv

yinfprpst

Continued from page 4

withdrawal

required to attract common stock

satisfactory terms and

to maintain the financial strength
of the comPany« Such a utility
company, in considering whether
or not to proceed with a refundinS requiring some time to consummate, would be well advised

6%%, ing the issue, obtain a return on
the utility company-will expect to this $546,000 investment of 10%
finance
its investment in prop- in the form of interest savings
example, this return is

mjght still

pany

bonds at

new

the

had

company

decided

with refunding

proceed

adversely

during the financing
period, the financing could be cut

costs entailed would be small and

plans

'Advantage of Private Placement

Combining

when the estimated cost

a time
of the

issue

new

was

4.90%,

tion with

which rate it has been shown the

able to sell savings
price at which return
provide

Then, if the bond market turned

or 25 basis points higher than the

■■

would be virtuallyno leeway pro-

savings.

essary

capital is added. There- the possibility remains 0 an adfore, as the dollar cost to call is/verse price movement 1111 ebon
an
investment by the common market during the period required
equity

stockholders, /and

bonds.

equity

company

proper guide for a utility
tv
considering a bond re-

The

tne

be desirable,

which will

savings

interest

ford

af-

the mew issue must

the rate of

provide a 12% return on the dollar cost of call and amortize this

the old

investment over the life of

bond

; "../'
required to call

The investment

in'the

assumed

$546 000

terms

5.46%

bond issue
example was

5%%

million

$10

the

wo.

provide an equity return of 12%
+unnri
omnr
on
this investment and to amorin 25 years re-

amount

this

tize

savings of

quires annual interest
cnn

cav

•

issue leaves

tor thp 5V <7

to/the

eharsos

$480 400

4 80%

cost

percentage

'
of

15%

its

stock

common

equity, the annual interest savings
required

bgsis

ca"- ^'ls means that if,

in-

calling

the

(the

an-

required in

$84,500

would be

bonds

the financina

Deriod

u s penuu, ii is

f°lmdJhat athe "ew issue cannot
be sold at
cost which will prointerest

adeauate

;on

the

bett

required

wiU

savings

potential / interest

would be

smau

the financing period, interest rates
increased

.gsue

intg

sayings

{erest
g

cost

47/s%

originally

the in.

4%%

stm

would

of the

25 basis

bjgher than the

estimated cost

the

that

wag

result

investment of
just yabove the 10%

retuni on the

10 5%> or
mjnimum return desired.

"m'""unl reluI" ucsueu.

In a situation in which the bond

market turns adversely during the
financing

Deriod

period,

comnanv

company

^ dec,f°n refunding and to ab- might decide tothough thewith the
may be , made to
go ahead
abandon the
financing even
interest
the

costs

date

expended

savings

the

longer

period

private

is
justified in going ahead with the

com-

company

produced the

plans to sell the new bonds pub-

movement

required

required-to do,

are

ftogto

the decision

with the refunding

go ahead

plantTs seldom

for additions to

of bank loans^ allProperty

additions must eventually be fi-

nprmanpnt

Computation; of Reqmred ;
reduction required

.The
^ =ive f^des red equity return
mav he comnnten

t0 cali an
before
(1) Determine the total dollar
maturity should not be made un- cost for calling the:y old issue,
C1S19?^

savings

refunding unattractive. If, during

Rew

am£ adverse/; price

nnnceH.> with

to make the

With

consummate financing has par- should be made only if the estiticular significance in a refunding mated interest savings provide a
operation. Financing - to-/provide maximum equity rate of return.

ic-

the

operation.

<*>ttonal and, while -some flexi- ■bility may be , provided , through

re.

ing

probably placement^ the utility

equity return. But if the company

$546,000

adequate .interest sayings, nnancing

™ce

imnrnvps

additional

the

investment

refunding

As previously stated, the hazard-licly, as many utility companies

during the financing period before

complete the refunding unless the
cost of the new issue is such that
the
saImgs will provide
an adequate return on the dollar
cost

bond

the

new

tum

acceptable

potential interest sav- These costs include the redempwill produce the desiredjtion premium.fand duplicate inequity ^return on the investment, terest. Other costs, such as pubhowever, phile the decision as to -lication/ of the call notice, are*
whether or ^iot to proceed with, usually, - minimal .-|and have not
the refunding is at the option of been included in the example. The!
management, once the decision is cost of financing attaches to ttto
made, the hazard of an ;adverse1 new issue and should be conprice movement in the bond mpr-, sidered in determining the cost
ket reducing or wiping out the, of the new issue.
.potential interest savings conpotential interest savings con- (2) Express the dollar cost of
^
_
tinues until the financing is con- cau in terms of nrincinal amnnnt
summated. It should be noted that
the example
$546 000
a
nnmnanv win
^
example, tnis is ^>D4b,uuu
Ai l
company will often be divided by $10 million, or 5.46%.
able to combine a refunding op/Qv „
.,
. U1
'
eration with new capital financ.
tess the

n n w

„

"^5

(3)^^ ^annuity table find

the annual payment necessahy to

lng' " the ^mpany m the

pay off $1

over the

remai/ing

issue. A new capital minimum return desired. Considyears of the old bond at the
financing, on the other hand, is eration would be given to the fact new Ptant> 't could plan a $25 sired equity return. At 15%
usually not optional. This means that expenses had already been million financing, $15 million for 25 years this would be .15470.
that under most circumstances, incurred and also to possible un- new capital and $10 million to
(4) Determine the annual
on the new

will proceed with

capital financing

new

tbe bond market

even

moves

call

favorable publicity resulting from

though '

■

REFUND1NG

adversely

REDUCTION

INTEREST

(jurjng the period of financing.

.//•;■

GUIDE

REQUIRED

RATE

PROVIDE

in-

high-coupon- issue, terest reduction required to pro-

old

the

•

defor

TO AMORTIZE

RETURN

COST

■

CALL AND TO

127.

return

$546,000

the

amortize

and

this

provide

vestment

"7/*" ""'j"''

company

wants to

If the utility company
earn

issue

new

the

ment m the bond market during
this period has particular significance in a refunding operation.
The refunding remains optional
with the management until the
old bonds are actually called;
and management will not want to

SOTb

isfnnnn

accumulating

start

costs

durine

equity investment. To

stock

mon

competitive. During this period,

±zyot- uien

reiurn is

expectea

the refunding to

for

offering whether negotiated or

that

financing

placement has
particular attraction in a refund-

Combination Financing'

during

_t_arlv

time 'hazard,

would have to absorb the refunding when the interest savcosts incurred up to that point. - ings provide the minimum desired

- _ slightly above

knowledge
,,

the

pany

15<«

decision to refund with

,uity
Equity Return iteqmrea
Required

,■

estmated

12 weeks for a public

fronr 10 to

ment.

below

would be abandoned and the

unnec-

expenditures in the event

and the refunding/part of the
financing is abandoned. Because

equity return. Under such circum-

stances,, the

m s

the invest- date of. its sale will usually be
return

far

ment

the

'•

under the assumed conditions can

provided by the interest savings
The time interval between the
should be sufficient to restore the date when a company decides to
dollar investment and to provide ;seu a new bond/issue and the
an

n«nmP(i:that

financing

the return on the equity, invest- through, private

pouitv

return of 15% and
to recover the cost of- call,|toe -

to consummate the sale of the the

return new

the

responsibility,

their

cost is

the

combined

the bond market turns adversely

surplus
While the equity return ap- terms 0
which is part of the common stock proach permits a
more precise 15% re
equity capital. The capitalization guide than the bond yie d ape
a so
ratio as between debt and equity £fbach in determining
he easi- manag en
whl not be restored until the in- bdity-of refunding, it gives no A*k%,
terest savings are realized and assurance^that the new bonds wi
comp
a p
credited to surplus over the life be s°ld at
desired price. Un- been s
>
of the old bonds or until new less the time hazard is eliminated, mum desired
to

The

method merely minimizes

^ond

debited

that the

assurance

thereby obtain the desired interest

eventually

opera-*

financing, how-

result; in a; 10% utility company will sell its new
the cost of call, there-bonds at the estimated rate and

normal balance be- if the bonds are sold at a cost to a suffjcjent return to justify the vided
for
a
possible
adverse
tweeri debt and equity capital so the company of 4.90%, a return
outiay, 0f capital required, . ^ y movement in the bond market. An
as-to maintain this 6V2% return, of -12% if the bonds va^go^^t^ _ . ^wr^lirnoincrease . in: the cost--of theynew
But,
when
a J. utility
company 4.80% and a return of 15% if the
.
'
.,,+nuxr
issue of 25 basis points during the
makes the investment required to bonds are sold at 4.66%. .
•
ag
*ift million
51/,%
financing period, or from 4.90% to
call a bond issue before maturity,
;,,7
Time Hazard
:
in
thP
examnle
thinks in 5<15%' would virtually wipe out
all of the costs of call must be
-/
"
®
(
.....
. ,1ft^ .,f
the interest savings and reduce
with

erty

gives

ever,

refunding

new

would

tbe interest savings would

estimated 4%% cost, which served the :financing- costs, would ^be
as; the basis for the decision to spread over $15 million instead of
go ahead with the financing. But $25 million of debt.
1 tfj, '.*(

making an investment in

for

financing.

$546,000 required to refund if the back to the $15 million needed for
bonds were sold at a 4%% cost, plant expansion. The: additional

decision at

refuncbng

property
Thus, in this example, the
maximum of its desired equity
-■.■"■■will normally anticipate a return utility company with a 5^ /o, $10 re^urn.—^hat is, at 15%. Then if,
equal to its over-all of capital or million bond issue due in 25 years
tbe financing period, the bond
to its over-all rate of return.
If, can, by spending $546,000 .for call- mar^e^ turns adversely, the com-

the

nuity factor of .15470 x $546,000).

Because of the ever-present
bazard of an adverse price movement in the bond market, it
behooves management in a re-

(In Basis

Years

Redemption

fiaturity

110

109-1/2

109

108-1/2

108

Cost

Percent

107-1/2

Points)

106-1/2

107

Principal Amount
105-1/2

106

Years

104-1/2

105

103-1/2

104

103

t«

Maturity

$550,000

from

tracted

for

the

51/2%, $10 million issue leave interest
of

charges

$465,500,

the

issue

new

percentage cost

4.66%.
If the

with

utility

its

112

106

112

106

100

119

113

106

100

126

120

113

107

101

127

120

114

108

101

128

115

108

102

129

122

116

109

103

130

123

117

110

104

131

124

118

111

105

121

_75

„

[791

l_64j .57;;

29
28

•27

37
38

63
,

---

"76

/ / 83

68
69

n 76

175

....

94.

125

118

Equity Returns
Many

118

125

Maximum and Minimum

common

124

re-

Qu^ed to ready a new issue for
sale-

is content

company
on

leeway before committing

the company to the expenses

10% return

some

£/

;

managements,

■78

52-

con-

•

79
'

stock

the

equity

required
of

amortize
would

return

the

$546,000 cost

$60,200

annuity factor of .11017
000). These

savings

this

provide

to
call

and

annual

(the

$546,-

interest

sav-

ings subtracted from the $550,000

charges

the

leave

annual

derived

The
tize

from

interest
a

savings required
present
worth table,

annual

$1
provide

payment necessary to amor
over- a
25-year period and to

12%

return

Suaisy$69!600.° "

the
common stock equity, do so in
terms of a range rather than of a

The

.12750.

lme»

of from 10%

range

reurn on

specific percentage return. For
example, the management of a
utility company with an average
return
on
the
common
stock
equity of 12% may think in terms
of

1 The

issue

old

sidering the desired

to 15%.

132

126

119

112

106

134

127

121

114

107

100

i 94

136

129

122

115

109

102

138

131

124

117

110

common

proach

stock
15%.

range

—

its

equity

The

1Q%

may

lower

141

133

126

119

112

106

143

136

129

122

115

108

wiU

147

140

132

125

118

110

••

•

90
/.

100

■

65 "

Note:

Each

103

figure represents the cost of call times

amortize

$1.00 at

77.

.13388 equals

times

\7H

over

the

.9377.

COn-

;

ap-

end

86
87

104

Under the most favorable COnditions, the company's return

r-22-t

STONE & WEBSTER SERVICE CORPORATION

the annual payment

indicated number of years;

94 basis points.

e.g.

.•

necessary

107 for 20 years

—

Volume

vide

the

196

desired

Number 6198

equity

return

The Commercial and Financial Chronicle

of refunding as the result of

year

and to amortize the investment in

charging off debt discount and

calling the bonds

pense

offset

the

cost

call

multiplying

determined

of, accelerating

determined

Step 3. In the

ex¬

this, is the effect
maturity

the

equally .84%

dollars instead of paying the cost

poration

Canadian

84 basis points.

(5) Subtract the interest reduc¬
tion

required

Step

determined

from the

rate

coupon

the

new.;

such

issue in present-day

factors

taken

ing the advisability of

interest

operation.

that

5 Vz

is;

points,
As

the

bond—

new

"84! * bSsis

minus

4.66%.

tion,

the

tables

tion

refunding

author

opera¬

has; developed

showing the interest reduc¬

expressed in basis

required

refunding

The fundamental

not

consideration,

the potential interest

savings

justify the investment—an invest¬
ment which

is made by the com¬

stockholders.

mon

order

that

equity is kept whole, the

common

points to provide for amortization

interest savings in refunding must

the

cost

rates

Each

table

call

return

duction

from

rate

to 15%.

interest

re¬

provide

equity

shows the

required

indicated

and

return

the
to

and

amortize the dollar cost of call at
stated

redemption

costs

from

sufficient to
call

from

intervals

12%2

The

years.

yearly
to

years

Equity

Table is shown at the

Return
of this

end

return

the

investment

ings required for refunding
with
of

redemption

cost

sav¬

bond

107.0%

principal amount with 20 years'

remaining life in order to provide
12%

return

investment

points,
a

the

required

additional

with

company

be
or

points,

5V4%

4.31%.

minus

tion for the company

5J/2%

million,
in

the

interest

minimum

The

bond

new

reduc¬

with the $10
issue

bond

example

basis

given

previously

dis¬

cussed may be readily determined?
from the table. The dollar cost of
call

$546,000,

was

principal

Reference

amount.

12%

tbei

5.46%

equity

return

table

that the interest reduction

shows

required at

105 ^2% redemption

cost for 25 years is 70 basis points
and

105%

basis

points.

By interpolation, the indicated i nterest

reduction

required

for

redemption cost of 105.56% of

basis points,

is shown to be 69 V2
basis

the

points

minus

the

basis

equity

12%

For

the desired yield

bond

new

rounded.

with its 5V^% bond

company

due in 25 years,
for the

par

return

5l/2%

basis

points,

4.80%

previously computed from the

tables.

annuity

the

Chairman

Crump,

President,

said:

corporated to
of

ness

yield return is not

neither is the over-all

interest

at which

rate

will

bond

new

and

Its

company.

other

activities
of

Canadian

will

carrying

has

new

Pacific

some

simplify

tration

keeping

and

Head office of the

capital is

elected

Cana¬

investment

propriate
whether

The

the

ap¬

refund.

fails

Any
the

cover

to consummate

required

time

the

longer

refunding

opera¬

company

the

will

movement reducing

interest

the

return.

desired

below

savings
A

private

the

place¬

pany,

based

the

point

even

equity

of the

sale

at the

fife

assures

public

should

Scully, Lehman Brothers, will

speakers.

desired

based

managements

in think¬

ing of equity return do so on the
basis of
return

from a minimum

range

hoped-for

return. In

maximum

order to provide some
an

movement

during the financ¬

Kenneth

dustry:

Graves,

Travelers

Robert

and

Association

Force,

Na¬

Albert N.

October

Publishing

—

refund

produce
of

where

period,

Industry:

that

will

which
return at the top
savings

interest

provide

the

point

Dunlap, speakers.
Auerbach,

gand,

$6,790,000 various
1988)

Rich-

headed

there are,
to

refunding

any

dollar

course,

considered

cost

besides

call

and

the

cost.

The

issue,

Trust

always
in

consideration is

potential

interest

•

the

charges,

factors

other
treated

say

with

minus

items.

Reference has already been made

possible

onerous

that

feaures

eliminate.

effect

The

William St., New

pointed manager of their trading

department, and Bernard Shwiindenture dock has been named institutional

refunding

The

■

Meade & Co., 27

will, sales

manager.

income

taxes may be more complex than

has

the

that

of call

each

any

this

Then,

While

effect

tax

savings

other in

tion,

tax

and the

interest

set

indicated.

been

true

effect

tend

cost

offset

rate proceeding may up¬
balance

too,

additional

there
tax

some

will

extent.

often

reductions

Nederlandse

lished

of
an

has

seas

Corporation, at 63

Wall St.,

Derek

has been ap¬
of Netherlands
Overseas Corporation. Previously
he
was
Vice-President of Istel,

Pey
pointed President

& Co.,

Inc.,

New York,

the international investment bank¬

be
the

LOUIS, Mo.—On Oct. l, John

Isaacs, Jr., will become a Vice-

President of

Inc., 314
bers

full set
of tables may be
ob¬
by writing the author, Eugene S.
Merrill, Vice-President, Stone & Webster
Service Corp., 90 Broad St., New York 4,

New

York.

County,

Needless

awarded
Bank

Stifel, Nicolaus & Co.

North Broadway, mem¬

for

100.83

the

New

York

and

Mid¬

•.

MILWAUKEE,"Wis:—Nicholas P.

west Stock

Exchanges.

Mr. Isaacs

Wahl is

now

with The Milwaukee

Company, 207

East Michigan St.,

the

members

Co., Inc.

Midwest Stock Exchanges.

New

York

is President of Semple, Jacobs &

and

3.10%o

Manhattan

Chase

the

associates

were

bid

There

coupon.

two other bids also made for

were

3.10%?

One was 100.626

coupon.

by the Eastman Dillon, Union Se¬
curities

account

made

Co.

and

the

one

Morgan

with

Associated

Chase

major

Man¬

under¬

Smith, Barney & Co.,
York

New

Bank

Trust

Co., Harris Trust & Savings Bank,
C.

Allyn & Co., Inc., Spencer
&

Co.,

Trust

Co.,

Roosevelt &

Connecticut Bank
Reynolds &. Co.,

Cross

and Francis I.

duPont & Co. Scaled to yield from

bal¬

to 3.30%, the present

1.60%

ance^ is reported as $6,600,000.

local

bank

the

portfolio

the

about

V/s points are as

group

Chicago

Transit

bonds

Turnpike

3.66%? and

half-point. Issues gaining

from one-half to

Calumet

accounts

Index

gain thus signified is

market

follows:

was

bond

revenue

3.63 % this week. Last

the average was

week

Financial

Commercial

Chronicle's

Higher

Again

Bonds

Dollar
The

4%s,

Skyway

3%s,
Grant

3%s,

PUD

Washington

3%s,

Florida
County,
Kansas

Turnpike 3%s, Los Angeles Metro
Transit Authority 5%s,

Mackinac

boro

Bridge and Tunnel 4s, New

Tuesday's

County,

various

and

note¬

purpose

which

bonds

were

Bridge

Maine

4s,

Orleans Expressway

Turnpike

4.85s

4s, Kentucky

and

Oklahoma

City Turnpike 43/4S. The West Virginia
3.041% net in¬ Turnpike issues fell back about
2 points as the December, 1960,
second
bid, a

First National

the

cost.

The

interest

net

cost,

was

by Kidder, Peabody &

Co.

was

coupon

designated for pay¬

ment with back interest on Oct. 1.

associates.

account

Secondary Sell-Out

of the winning

Other members

Harriman

Loeb &

Ripley

Monday (Sept. 24) the State

&
National of New Jersey Investment Divi¬
Bank, Phelps, Fenn & Co., Kuhn, sion awarded $5,070,000 New Jer¬
are

Philadelphia

Inc.,

Co.,

Co., Stone & Webster Se¬

sey

Turnpike Authority 3^4s, Jan.

Hemphill, Noyes & 1, 1985 out of portfolio to Weeden
L. F. Rothschild & Co. & Company and associates on a

curities Corp.,
Co.

and

Scaled

3.25%
40 %

for

from

yield

3ys%

to bid of 100.57. The bonds were reabout offered at 101 and were quickly

1.55%

coupon,

of the issue has been sold.

sold.

the

new

addition to
issues calendar is $1Q7,-

largest

recent

Wednesday two more issues 900,000 City of New York various

g e n e r a

were

Milwaukee-Company

and

pur¬

bonds

1991)

Wednesday's Major Awards

Nicholas P. Wahl With

New

Nassau

various

York

New

(1963

pose

$17,200,000

area.

New

Of Stifel, Nicolaus
ST.

suburban

(Pittsburgh)

ing and counselling firm.

2 The

tained

York

The

important

other
the

involved

estab¬

-.v. -,

■

account.

Wednesday's

worthy issues involved $5,430,000

investment banking sub¬

New York.

initial

the

Turnpike ,4s,
Jersey Turnpike 3Y4S, Tri-

3.0591%
Bank

Mount

of Fuquay and

all of the issue

last

The

terest

sidiary, named Netherlands Over¬

Lepercq

Isaacs To Be V.-P.

Overzee

Amsterdam

underwriters.

bank

the

Bank

for

the

The Bank

offering

made

taken

the

refunding opera¬

mained

averages at

members
are

this

public

was

made

the York
City, have announced that
be Lawrence Levine has been ap¬

and

usually

may

plus

reduction

North

bid for this

of Briscoe.

Bank

after

and

Bank

1986.

2.8235% net interest

runner-up

Bank account at

Overseas Corp.

Appoints Two

local .group

Co., Winston-Salem.

the

(1964-

purpose

made by the Wachovia Bank

was

coupon

period about $12,000,000 re¬

Trask

2.8476% net interest cost,

won

Meade & Co.

po¬

tential interest savings. However,
the principal

Netherlands

other factors

order

•

Smithfield,

Pennsylvania

operation,

bonds

by First Citizens Bank &
Co.

Trust

Allegheny

range.

Deal

the

bonds

(1863-1992)
In

3.40%

De¬

Greensboro, North Carolina sold

E. V. Mar-

ardspn is Chairman.

for

Stone & Webster Securities Corp.,

"Bank"

The

and the

■

Olive, The Bank

the

dollar price of 99^2

Guaranty Trust Co. syndicate.

;

Candor,

Publishing

Pollak

Brown,

for

2.10%

reoffered.

major

Wilton

Crowell-Collier

Cole,

';1 ;'V;

group

public
offering is required, utility man¬ Co.; Morris Goldman, J. K. Lasser
& Co.; and J. O'Connor, Grosset
agement should base its decision

ing

not

Agents,

Outlook

Weeden

from

$1,000,000

released

Other

Lord, Abbett & Co., is Chairman.

are

winning

Loeb,

net interest cost.

Co.;

Insurance

1964

were

from. 1.85%

yield

Chemical

V'l.1

Na¬

bonds

Corp. The

100.39,

National

Insurance

Strain,

Clarence

speakers.

adverse bond mar¬

leeway for
ket

the Fire & Casualty Insurance In¬

tional Underwriter Co.;

Securities

writers

were
u)

Philadelphia

Inc.,

was

tional Bank and Stone & Webster

by the Bankers Trust Co. account

Carolina at

October 9—Agency Problems of

T. R. Murphy, Leh¬

Brothers^ is Chairman.

man

the

higher equity return. Most utility
company

Com¬

Edward

and

decision

the

offering,

Gerken, Laird &

Corporation;

bonds is to be

new

refund

Smith

Dean

and

remaining

Ralph

break¬

however,

If,

return.

bonds

sale

placement

private

Kid¬

sold.

2.531%

Co., Kuhn, Loeb &

Bank

Michaud, Dean Witter & Co.; The¬
odore

method

one

Co., Blyth &

hattan

Populaire,

Co., Merrill Lynch, Pierce, Fenner

members

include

yield

the

Co., B. J. Van Ingen &

(1963-1970) bonds were purchased

September 25—Outlook for Alu¬

eliminat¬

been

scale

Lancaster & Norvin Greene;

was

3.30%, about 25% of the bonds

The

•<

Brothers

Carl

Co.

Devine &

sale

cost

Weeks,

Co.,

members

Brothers, Banco

troit, public utility street railway

minum Stocks: Norvin R. Greene,

ing the time hazard. A refunding

ment

Scaled

have

lowing industry forums:

tion, the greater the hazard of an
adverse price

Analysts have announced the fol¬
V-rNi'.'

major
group

major

The

Co., A. G. Becker & Co., Inc.,

Witter

Society of Security

■

issue

Lehman

Hornblower

Other

winning account include Lehman

$9,000,000

system

this

the

Other

the

Northern Trust Co. and associates.

$5,-

for

interest

winning

net

priority orders amounted to about

3.2048%.

for

made

bonds

cost

3.27%

and

supply

cost

bid

was

der, Peabody & Co., White, Weld

Perma¬

Industry Forums

■'

bal¬

with

favorably

compared

runner-up

interest

Boston Corp.

interest cost bid of

Inc.

net

group.

Authorized

N.Y. Analysts

•;

1987

First

and

Corp.

bidder
r

bid

3.210%

Co.

jointly by

Co.,

(1967-1992)

interest

Rhoades

.'.V'

3.25%

1984 to

the

offered

wate

runner-up

our

soon.

The New~Ybrk

equity capital.

Michigan

successful

net

determining

not

the

cost

guide
or

provide

return

lesser

and

equity

revenue

savings sufficient to amortize the
desired

Stuart

000,000

interest

create

offered

were

in 1963

$4,000,000.

First

made

value.

par

cou¬

the

shares with¬

30,000,000

nominal

out

1987,

not offered. The present

Halsey,

adminis¬

new

Montreal.

bonds '

The syndicate headed

policy of diversification."
will

and

ance

been

with

1986

Co.

winning

3.266%

1985;

were

non-transportation

investments to

3.30%

sold pre-sale. The $1,-

1.60%

the

has

The

the development

company

offered

were

1983. The bonds due

of natural resources.
"The

one-quarter of 1%

910,000

companies in

Pacific

bonds
1963

were

yield

and

nent directors of the company

the

pon,

interest, particularly those compa¬
nies

3.047%.

due

carrying

busi¬

the

holding

securities

which

cost

bonds

"Candian Pacific

carry

cost

bonds

$5,000,000

investment and holding

limited

return

rate of return of the company.

will

Conclusions

stock equity

common

return. A bond

5V4% bond, the

required yield for the
would

basis

circled in the table. For

made

stockholders, the

The

example, the minimum

adequate

the investment. And,

sufficient;

article.
For

interest

(1963-1987)

interest

net

1.60%
N.

net

purpose

dian

should

cost

and, at the

incor¬

Limited.

remaining life of

time, to provide

same

the

(1963-1987)

sewer

Investments

this amount to surplus

common

and

Pacific

formed to consolidate

intervals,

the

over

the

The

public

3.101% and for $1,910,000 various

subsidiary,

new

the old issue and thereby restore

103% to 110% of principal amount,

J/2%

amortize

announced

Canadian

—

Investments Limited has been in¬

■;

„,

nevertheless, remains whether

a'guide to determining the.

advisability of

should

these

Pacific has

consideration in judg¬

into

the old bond to give the required
cost

Certainly

later.

years

Trust

Detroit
bonds

MONTREAL, Canada

ample, this is 5.46% times .15470,
or

Continued jrom page 6

Investments Ltd.

the old issue and paying the cost

TAX-EXEMPT BOND MARKET

Canadian Pacific

the old issue. However,

Step 2 by the annuity factor

ex¬

(1325)

1 market

offered.*

bidding.

The

for

best

importance purpose general obligation bonds.
competitive This relatively short term offer¬

bid

for

$30,- ing

(7 years) is smaller in most

000,000 Commonwealth of Puerto respects to two others made ear¬
Rico
from

jointly

(1964-1986)
the

bonds

syndicate

First

came

lier this year. This

offering com¬

managed prises more than one-third of the

National

City present

new

issue

Bank, Chemical Bank New York through November.

calendar

The Commercial and Financial Chronicle

(1326)

Thursday,- September 27, 1962

* INDICATES

Securities
NOTE

—

Now

Registration statements filed with

the SEC since the last issue of the "Chron¬
icle"

•

carried

separately at the end
of this section "Securities Now in Registra¬
tion." Dates shown in parenthesis alongside
the company's name, and in the index, refleet the expectations of the underwriter but
are not, in
general, firm offering dates.
Also shown under the caption "Effective
Registrations" are those issues which became
effective this week and were offered pub¬
are

now

licly.

Registration

Agency Tile Industries, Inc.
July 27, 1962 ("Reg. A") 110,000 common. Price—$2.50.
Business—Importing,
marketing
and
distribution
of
ceramic
tiles.
Proceeds—For • debt
repayment, new
products, sales promotion and working capital.
Office—
256 Fifth Ave., N. Y. Underwriters—Leib, Skqot & Co.,
Inc., Clifton, N. J., and Price Investing Co., N. Y.

products. Proceeds — For debt
working capital. Office—
Ave., Brooklyn, N. Y. Underwriter—Willard
Securities, Inc., N. Y;
.

Mortgage Investors
Feb. 8, 1962 filed 1,300,600 shares of beneficial interest.
Price—$15. Business — A newly-formed business trust
which plans to invest in first mortgages. Proceeds—For
^investment. Office—305 S. County Rd., Palm Beach, Fla.
Underwriter—Hayden, Stone & Co.* N. Y. Note—This
company was formerly named American First Mortgage
Investors. / • // v.'/• •;/,
■/v:

American Options Corp.
/
April 11, 1962 ("Reg. A") 60,000 common. Price—$5.
Business—Company plans to sell "puts and calls" and

Corp.

L. S. Steel

Corp.

March 29, 1962 filed 100,000 common. Price—$4.50. Busi¬
ness—Sale of processed flat rolled strip steel. Proceeds
—For debt repayment,

equipment, and working capital.
Office—126—02 Northern Blvd., Corona, N. Y. Under¬
writer—Bernard L. Madoff, N. Y.
,

Abbott Realty Fund, Inc.
June 29, 1962 filed 380,000 class A common.

Price—$10.

ownership and management. Pro¬
and general corporate pur¬
poses.
Office—292 Madison Ave., N. Y. Underwriters—
Morris Cohon & Co. and Street & Co., Inc., N. Y.

ceeds—For debt repayment

•

Accurate

Parts

March 30, 1962 filed
ment

(max.

starter drive

100,000 common. Price — By amend¬
$13). Business — Rebuilding and sale of
devices for automobiles.

selling stockholders.
Ind.

Office—1313
Underwriters—McDonnell &

Proceeds

For

—

S. Jay St., Kokomo,
Co., N. Y. and Raf-

fensperger, Hughes & Co., Indianpaolis. Note—This reg¬
istration

was

withdrawn.

Advance Mortgage Corp.
April 27, 1962 filed 200,000 common. Price—By amend¬
ment.

first

Business—The making and servicing of real estate

mortgage

loans.
Proceeds—For debt repayment.
Office—First National Bank Bldg., Detroit. Underwriter
—Shields & Co., N. Y.I
Aerial Control Geotronlcs

Chemical Corp.

(max.

$6).

(10/22)

Fairfield

writer—Robert Garrett & Sons,

Rd., Baltimore.
Baltimore.

specialty
Under-

{max. $22.50 per unit). Business—Production and serycan

Bldg., Westbury, N.
Co., N. Y.

Rose &

Fla., Md., N. Y.,

debt.

Southwest Realty Trust
12, 1962 filed 1,000,000 common. Price—$11. Busi¬
ness—A real estate investment company. Proceeds—For
investment. Office—800 Hartford Bldg., Dallas. Under¬
Feb.

writers—Kidder, Peabody & Co., N. Y. and Rauscher,
Pierce & Co., Inc., Dallas. Offering—Temporarily post¬

To be named.

ment

and
working capital.
Office—2412 S. Garfield
Ave., Monterey Park. Calif. Underwriter—Pacific Coast
Securities Co., San Francisco.

Aerosystems Technology Corp.
Aug. 29, 1962 filed 165,000 common. Price—$3. Business
—Company has been engaged in experimentation on
aerodynamic concepts and holds ten U. S. Patents relat¬
ing to advanced vertical lift vehicles and systems for

achieving controlled vertical flight. Proceeds—For addi¬
tional equipment, research and
development, plant fa¬
cilities and other corporate purposes. Office—Route 15,
Sparta, N. J. Underwriter—Chase Securities Corp., N. Y.

Alsco

and Ky. Proceeds—For repayment

Office—230

Park

Ave.,

poned.

Underwriters—

—

Bolt &

Americana East Inc.

—

ceeds—For
Ga.

Anchor

for the electronics industry. Proceeds—For
repayment, equipment* inventory, . and working
capital. • Office—107 Trumbull St., Elizabeth, N. J. Un¬
derwriter—Edward H. Stern & Co., N. Y.
j
debt

Office—423
E.
Market
St., Indianapolis,
Underwriters—Reynolds & Co., Inc., N. Y., and Cruttenden, Podesta & Miller, Chicago.
' ; - '
.*/'" * /
"

QUOTED

for Banks, Brokers, Institutions

Sidney S>i. SIEGEE

Vvo^Jfae.

Members of New York Security Dealers Association

American

(10/8-11)

American Gas Co.

Broadway, New York 6, N. Y.
TWX: 212-571-0320

Direct Wire to

HENDERSON1 &rCO^ INC., Dos
Angeles

;

new
.

(10/17)

the

respective

for each

subscription by stock¬

classes

held.

on the basis of one
Price—For debentures,, at

debt

repayment. Office—1900
Underwriter—None.

W. Siau-

Ave., Los Angeles.

Argus Financial Fund, Inc.
filed 800,000 capital shares to be offered in
exchange for certain securities acceptable to the Fund.
Price—Net asset value, (expected at $.12.50 per share).
Business—A diversified open^-end investment company
which plans to
participate in the long-term progress of
savings and loan associations, and allied financial busi¬
Feb. 12^ 1962

nesses."

' -

June 25, 1962. filed 130,000. common. Price-—$5, Business
—Manufacture and sale of a variety of kosher and non-

For

American-Kosher- Provisions* Iiica

shares to be offered for

Proceeds—For

debentures, at par; for stock, by
amendment. Business—Transportation, distribution and *
sale of natural gas. Proceeds—For debt repayment and
expansion. Office — 546 S. 24th Ave., Omaha. Underwriter—Cruttenden, Podesta & Miller, Chicago. ;
—

■■*../^>;v'

par; for stock, by amendment. ■ Business—Manufacture,
purchase and sale of ice cream and other dairy products.

son

March 26, 1962 filed $1,685,000 of 6V2% convertible sub¬
ordinated debentures due Sept. 1, 1977; also 275,000
Price

common

holders

(10/8-11)

May 23, 1962 filed $6,000,000 of 6% conv. subord. de¬
bentures due. 1990 to be. offered in $100 units; also 49,993
shares of $3 cumulative preferred stock and ,205,105

,\.;-

K-Pac Securities Corp., N. Y.

common.

DIgby 4-2370

Arden Farms Co.

Flag & Banner Co. of New Jersey

May 1, 1962 filed 100,000 common. Price—$3.25. Busi¬
ness—Production of flags, banners and accessories. Pro¬
ceeds—For taxes, debt repayment and working capital.
Office—1000 Main Ave., Clifton, N. J.
Underwriter—
•

Angler Industries, Inc.
*
~
Aug. 17, J.962 ("Reg. A") 120,006 common.vPrice—$2.50,
Business—Manufacture of hardware, and the assembly
of products

Fidelity' Corp.-".";"

investment.

Corp.

24, 1961 filed 38,500 common. Price—$8. Business
—Design und fabrication of precision sheet metal prod¬
ucts. Proceeds — For machinery research, sales promo¬
tion, and working capital. Office—26 Essex St., Hackensack, N. J.. Underwriter — Amber, Burstein & Co., Inc.,
New York. Note—This registration is being withdrawn.

June 4, 1962 filed 500,000 common. Price—$11. Business
—A small business investment company, Proceeds—For

SOLD

Rd., Columbus, Ga.

Industries

Nov.

Screw

porate purposes, Office—Lawson BJyd,, Oceanside, L. I.
N. Y. Underwriter—S. D. Fuller &
Co., N. Y. • •••'•;:/ "

corporate purposes. Office—173 First St., Macon,
Underwriter—Nusouth Growth Stock Sales Corp.,

4101 Steam Mill

Price—$100 per unit. Business—Manufacture of standard
and special industrial aircraft and missile fasteners. Pro¬
ceeds—For debt repayment, equipment and other cor¬

BOUGHT

construction, surveys, working capital, and

other

nated debentures and
90,000 common, to be offered
in units consisting of one $100 debenture and 10 shares.

American

;

Sept. 18, 1962 filed 400,000 common. Price—$2.50. Busi¬
ness
Development, construction and management. of
industrial, commercial and residential properties. Pro¬

Inc., Philadelphia.

Mfg. Corp. (10/1-5)
Dec. 15, 1961 filed $900,000 of 6% convertible subordi¬

YOUR PRIME SOURCE FOR

;

Bldg., Portland/Ore. Underwriter—Tb be named.

Amerel Mining Co. Ltd.
July 31, 1961 filed 400,000 common shares. Price—500.
Business—The company is engaged in exploration, de¬
velopment and mining. Proceeds—For diamond drilling,
construction, exploration and general corporate ex¬
penses.
Office — 80 Richmond St., W., Toronto. Under¬
writer—E. A. Manning, Ltd., Toronto.

American

•:

July 9, ,1962 filed 400,000 common. Price—By amend¬
ment (max. $3). Business—Company plans to explore
for strategic minerals. Proceeds—For debt repayment,
exploration and working capital. Office — 527 Failing

Inc.
March 28, 1962 ("Reg. A")
100,000 class A common.
Price
$3. Business — Wholesaling and distributing of
electronic parts, kits, components, etc. Proceeds — For
inventory and working capital. Office—2520 N. Broad St.,
Philadelphia. Underwriters—Albert Teller & Co,, Inc.,

•

American Strategic Minerals Corp.

Electronics,

and H. A. Rieeke & Co.,

expansion, debt repayment and working
Address—Mohnton, Pa.
Underwriter—Reub.en
Co., Inc., N. Y.

American

a general real estate business with
development and home construction

developments in the field of geodetic surveying and re¬
Proceeds—For debt repayment, equip¬

&
;

Proceeds—For

capital

subsidiaries conduct

land

Stearns

American Safety Table Co., Inc..
May 23, 1962 filed $100,000 common. Price—By amend¬
(max. $7).
Business—Design, . manufacture and
marketing of equipment used in the sewing industry.

Properties, Inc.
April 24, 1962 filed $5,000,000 of conv. subord. deben¬
tures due 1977. Price—At par. Business—Company and
on

Y. -Underwriter—Bear,

ment

All-State

emphasis

of * physical 'damage insurance' on automobiles,
purchase AmeriFidelity Fire Insurance Co. • Office—American Plan

trucks and mobile homes. Proceeds—To

Allied

(10/8-11)

Corp.

30,

icing

acquisition, debt repayment
general corporate purposes. Office—5807 Lytie St.,
Pittsburgh, Pa. Underwriter—To be named.
*.

Underwriter—

218,000 will be soldfor' the * company and 30,000 for
stockholders). The securities will be offered in .units of
brie $10 debenture and one share. Price—By amendment

an.

Bache & .Co., New York.

Price—$10.

1962 filed $2,48o,uuu 01 convertible deben¬
tures due 1982 and 248,000 common shares (of which

and

Graphic Arts, Inc. (10/22-26)
Mar. 27, 1962 filed 180,000 common, ol winch 60,000 will
be sold for the company and 120,000 for a stockholder.
Price—By amehdmentrrBusiness—Publication of mass
circulation catalogues (for department stores and mail
order firu*s>," a semi-annual magazine and stamp collec¬
tors' books. Proceeds—For debt repayment and working
capital. Office—551 Fifth Ave., N. Y. Underwriter—

shares.

Proceeds—For corporate

Office—320 Park Ave., N. Y.

American Plan

ness—Manufacture of aluminum and fiberglass awnings
and aluminum combination storm-screen windows and

For

Management

24, 1962 filed 315,000 class A

March

Allegheny Aluminum Industries, Inc.
Dec. 21, 1961 filed 100,000 common; Price—$4.25. Busi¬

—

insurance.

KaLakaua Ave.,

Pacific

Interameriea Securities CorpM N. Y.

•

Proceeds

aecident

and

(same address)

purposes.

Business—Manufacture/of

May 28, 1962 ("Reg. A") 100,000 common. Price—$3.
Business—Application of electronic and air photography
gional mapping.

casualty

Underwriter—American

American Phoenix Corp.
Jan.

chemical products. Proceeds—For general corporate pur¬

Office—3440

Price—Net asset value.

Proceeds—For investment. Office—1523

Corp.

;

management ^ company $ special¬

Business—General real estate.

Alcolac

•

health,

common.

open-end

Honolulu.

March 23, 1962 filed 50,800 common., Price—By amend¬
ment

American Pacific Fund, Inc.

izing in life,

common.

lumber

Under¬

Business—An

drawn.

doors.

Inc.

250,000

filed

• Office—120
Broadway, N. Y.
Securities, Inc., N. Y.

July 9, 1962 filed 94,500

Price — $5.75.
company. Proceeds—For construc¬
tion and working capital. Office—614 Equitable Bldg,,
Portland, Ore. Underwriter—Dempsey-Tegeler & Co.,
Inc., St. Louis.
Note — This registration was with¬

poses.

Business—Real estate

Alaska Pacific Lumber Co.

1961

broker-dealer.; Proceeds—For general cor¬

writer—Provost

Office—20th Street and Allegheny Avenue, Phila¬
delphia, Pa. Underwriter — Clayton Securities Corp.,
Boston. Note—This offering has been postponed,
; j
17,

as a

porate purposes.

poses.

Nov.

act

may

doors, and other aluminum products.
Proceeds—For working capital, and other corporate pur¬

Business—A

and

American

May 26, 1961 filed 180,000 common, of which 90,000 will
be sold for company and 90,000 for stockholders. Price—
By amendment. Business — Manufacture of aluminum

•

meat

expansion

39 Norman

storm windows and

• ABC Business
Forms, Inc. (10/17)
July 27, 1962 ("Reg. A") 51,500 common. Price—$3.50.
Business—Manufacture, design and development of busi¬
ness
forms. Proceeds—For debt repayment and work¬
ing capital. Office—3500 N. W. 71st St., Miami. Under¬
writer—Givens & Co., Inc., Miami.

REYISED

ITEMS

and

repayment,

Address—Florence, S. C. Underwriter—None.
Master

•

kosher meat

Aiken Savings Trust
Aug. 22, 1962 filed 100,000 shares of beneficial interest.
Price—$10. Business—Company plans to qualify as a
real estate investment trust. Proceeds—For investment.

Air

ADDITIONS

SINCE PREVIOUS ISSUE

(

„

Pines

Proceeds-LFor investment.

Office—4118 Torfey

Road, La-Jolla, Califs Deaier-Manager-^Argua fi¬
(same address). **
;

nancial Sales:Corp.

Volume

Number 6198

196

The Commercial and Financial Chronicle

Artlin Mills, Inc.
Sept. 28, 1961 niea 135,000 class A common shares. Price
—$5.
Business—The purchase,, conversion, decoration,

fice—217 N. Willow Ave., Tampa. Underwriter—A. C.
.Allyn & Co., Chicago.
;V/,
yy/;7, 7:yy'y. > '
•

gift packaging and distribution of terry cloth towels and
pillow cases. Proceeds—For inventory, repayment
of 'loans arid working capital.
Office—1030 Pearl St.,
cotton

Loiig Branch, N. J.; , Underwriters-Mortimer B.

sidje & Co., Inc., N. Y.

Business—Publishing of

Burn-

Milwaukee.

Price—$2.

common.

and

;

Price—$1.50.

Misti-Cone

sale

•

Aubrey Manufacturing, Inc.

of kitchen rahge hoods, exhaust fans and kitchen
cabinet hardware. Proceeds—For plant expansion, equip¬

debt

South

Main

withdrawn.

..........

Automatic
Dec.

Controls*

Basic

Inc.

28, 1961 filed 50,000 common.

Price—$4.

Business

furnishings. Proceeds—For
expansion and debt repayment. Office—818 W. Seventh
St., Los Angeles. Underwriter—William R. Staats & Co.,
Los Angeles.
Offering—Postponed.

June

1962 filed 400,000 class A common. Price—By
(max. $12). Business—Real estate invest¬

amendment

—Design, manufacture and installation of electrical, ment. ^Proceeds—For - debt repayment, acquisition of a
building and other corporate purposes. Office—521 Fifth
pneumatic, hydraulic and mechanical systems, controls
Ave., N. Y. Underwriter—Hornblower & Weeks, N. Y.
and devices to control and automatically operate indus¬
trial machinery and processes.» Proceeds — For general
Bene Cosmetics, Inc.
corporate purposes. Office—3601 Merrick Rd., Seaford,
March 2, 1962 ("Reg. A") 100,000 common. Price — $3.
N. Y. Underwriter—rS. Schramm & Co., Inc.,.N. Y.
V : Business—-Importation, sale and distribution of Italian
Automatic

Merchandising,

cosmetics. Proceeds
For advertising, inventory and
working capital. Office—114 W. 13th St., N. Y. Under¬
writer—Granite Securities, Inc., N. Y.

•

Inc. *:

—

May 24, 1962 filed 225,000 common, of which 125,000 are
to be offered by company and 100,000 by stockholders.

Price—By amendment (max. $6). Business—Company
operates, owns, services and ieases coin-operated auto¬
matic

vending

Proceeds—For- debt

machines.

repay¬

ment, inventories, equipment and working capital.

Blankenship, Ostberg, Inc.
29, 1962 ("Reg. A") 100,000 common. Price—$3.
Business—Furnishing of market research and consulting
services.
Proceeds—For working capital and general
May

•

Of¬

Met

NEW ISSUE CALENDAR
.

(Monday)

American Bolt & Screw Mfg. Corp._
Puller

(S.

Co.)

$900,000

7j(Loewi &

;

Electromagnetic

Industries,

Carrison.

<Pierce,

•>

Inc

(P.

Debentures

)

$250,000

125,000

Co.)

Co.,

Inc.)

1,200

(General

''"v.

V" '

Inc.)

;■

■ .Y.-

(Edward

Jones

50,000

Consolidated Edison Co. of New York, Inc.
(Bids

EDST)

a.m.

(Allen

Co.

and

475,000

Co.)

Hill

Chestnut

Service

Water

(Putnam

Co.)

Preferred

Co.,

October

Preferred

—

Flag & Banner Co. of
New Jersey——

•

77!

'7,

-American

Securities

<K-Pac

Gas

American

$325,000

Miller)

Co._____

Gas

$1,000,000

$2,250,000

Corp.)

■

Miller)

" '

•

$l;085,O0Q

'"V *Y;

..
,

October-22

;

/ Electronic
(V.

(Doft

Co.)

;

(Weil

Co.,

Inc.)

(Alester G.

Fieldcrest

Mills,

Furman

Lee,

•

Co.,

Inc.)

Corp.

$300,000

Lewis

200,000 shares

(Van

Alstyne,

Pak-Well Paper
'

Common

•

(Francis

Pont

;

„•

(Mutch,

Rock

Sand

Co.————_—JUnits

R. E.

Lamineties. Inc..
*,
»

Livestock

*■'

■

McGrath
/

<Fabricant

Common

——_—

Securities Corp )

Financial

$280,000

& Co.)

».

—Common

Corp

(Shearson, Hammill & Co.)

$1,300,000

(John W.) Corp.(Bear, Stearns

.Common
253,875 shares

D. M. Corp
(Meade

Khanbegian, Flynn & Green, Inc.) $450,000)

Co.,

Debentures

(Wednesday)
Jenfcs, Kirkland & Co.) $400,000

$23,000,000

received)

Preferred

——

$7,000,000

be received)

—_

(Wednesday)
& Light Co

a.m.

EST)

(Bids

Bonds

$11,000,000

—Bonds

Nashville RR

-Common

140,000 shares

Power

America-Debentures

received)

$25,000,000

$1,000,000

Optech

—-Common
190,000

(Monday)

November 19

Inc.

—-

—

(Stone, Ackennan & Co., Inc. and
$480,000

shares{

--Common

Heritage Equity Corp.)

Debentures
Co.)

$4,000,000

Co.)

-November

—Class A
150,000

Inc.)

Common

(Tuesday)

November 27
(Bids

Southern Electric
.

(Bids

be received)

November 28
$250,000,000

'■

Metropolitan Edison Co.—_—

Telegraph Co.—Debentures

received)

Pacific Power & Light Co._——
—— -Bonds
(Bids to be received) $32,000,000

125,000 shares

—Units

(Monday)

received)

Bonds

$15,000,000

(Wednesday)
Generating Co——
$6,500,000

t
I

Bonds

—-—

(Bids

Louisville

-.—Common

Ohio, Inc.—

Corp

Central

Jersey

Common

$300,000

System, Inc

November 14

Inc.)

(Robert L. Ferman & Co., Inc.)

October 23 (Tuesday)
American Telephone &

Co.,

99,000

—

(Bids to be received) $20,000,000

Common

Worth Financial Corp.————
(Leib, Skloot & Co., Inc.) $450,000

(Bids

Gas

Kaiser-Nelson

50,000 shares

$50,000,000

(Thursday)

(Bids

Hallandale
'

Anderson

(Bids

$650,000

Bonds

Co.

PST)

Common

Georgia Power Co

Common

Industries, Inc

300^000 shares

400,000

$250,000

Co.)

Georgia Power Co

180,000 shares

Noel

Edison
a.rh.

8:30

Blue Magic Co. of

—Common

& Co.)

Inc.)

Common

Russotto

November 7
;

Co.)

Mountain, Inc.__

Columbia
7

$180,250

—

Noel

Common

$120,000

(Tuesday)

November 11

Common

(Tillie) Foods, Inc.

lnc._ .___—-—_____—-Capital

(Biyth & Co., Inc.)

—

(Van Alstyne,

Co., Inc.)

—

Ltd.)

Co.,

Warwick

(Hallowell, Sulzberger,

Inc.)

Kasdan

Inc

California

(Don

Debentures

$750,000

Inc.)

and

.Common

MacPherson

(Bids

Class A

Leasing Corp,, of America

<Blair

Cosnat

Units

—

Common

Corp.

October 30

Zero

Corp.—

(Blair & Co.)

Inc.

Co.,

Industries,

Southern

Inc.—

Consolidated Leasing Corp. of

Common
shares

90,000

Inc.)

Conditioning Corp

(Costello,

Common

& Co.)

Inc

Wulbern,

Carrison,

120.000

Corp.)

(Robert Garrett & Sons)

Consolidated

$400,000

Tabach

Common

Graphic Arts, Inc

..Common

"Fairlane Finance Co., Inc.—————Debentures
«...

•

200.000

Co.)

Utilities,

of America—

(Monday)

(Bache

$500,000

Corp

(Vickers,

$300,000

Inc.)

Securities,

Chemical

Common

,Emcee Electronics, Inc.——
Y

Allied

Wickett & Co.i Inc.; Thomas, Williams &
Inc.; and Crosse & Co.. Inc.) $375,000

Transmission

-Common

$155,000

Computer Concepts Inc.—

(Wednesday)

•'■'..(•Willard

'\yy

Alcolac

Corp.—

(James Co.)

;

Ben. Int.

$425,000

—-Units

(Bear, Stearns ■& CO.) 248,0(M) units

;

College " Publishing

Co.,

Securities

Brooks

(General Securities

Common

(Givens & Co., Inc.)

——Debentures

-----

v77 (Cnitten'deh.7'Podesta
American Plan Corp.—

275-,000

Jackson

Common
(P.

Atlantic

Gulf

Jamoco Air

Inc.—-

Forms,

(Monday)

Interworld Film Distributors, Inc.

American Kosher Provisions, Inc

*"
•

Business

ABC

.Common...

<-y
*

Corp.)

(Cruttenden, Podesta

;

$20,000,000

Curtis) 2,750,000 shares
First Connecticut Small Business Investment

Allyn & Co.) 100,000 shares

177

October

-—Common

Inc.)

(Martin-Warren

7> (Vickers, MacPherson & Warwick,

Webber,

(Paine,

$6,000,000

Securities Corp.)

Pipe Line Co
Preferred
Co., and lvferrill Lynch, Pierce, Fenner &

First American Israel Mutual Fund

Investing Co.) $300,000

Insurance Co.

Poulsen

(A.

American
"

Eastern

Peabody

Roadcraft

Co.)

Fenuer &

$60,000,000

Inc.)

Smith

$1,000,000

Corp.)

Security Aluminum Corp

(Monday)

(Kidder,

-Debentures
Pierce,

Merrill Lynch,

and

Co.,

Co.

Securities

(Clayton

First Boston Corp.)"
■: 7 -

Common

(Wednesday)
Pipe Line Co

October 29

Jackson's/Byrens Enterprises, Inc

shares Y-YVyY

241,000

page

and Lehman Brothers) 280,000 shares

Eastern

Peabody

Panhandle

Common

Works, Inc

Smith

$375,000

Inc.)

Jackson's/Byrons Enterprises, Inc

(Offering to stockholders—underwritten

(Kidder,

Units

Industries,

(Clayton

Smith-Corona Marchant, Inc.—
J

Y;y, •;-7 7'!'Y " Y-.v

Panhandle

Equip. Trust Ctfs.

Wison

(Price

30,000

Cameron Iron

Common

Instromech

(Friday)

October 5

«7y

Continued

Ernst, Inc.
Suburban

Carriers, Inc.
June 22, 1962 filed 1,015,564 capital shares to be offered
for subscription by stockholders on the basis of four new

Common

Industries, Inc

(Burr,

postponed.

Cable

(Monday)

(Clayton

(Wednesday)

October 3

N. Y. Underwriter—Milton D. Blauner & Co., Inc., N. Y.

Offering—-Temporarily

—Common

EDST)

(Schweickart

debentures
units, each

a $500 debenture and 35 shares. Price—
unit. Business—Operation of self-service dis¬
department stores. Proceeds—To retire outstand¬

October 24

Lingeries, Inc.—
,

Common

Hutton

Cameo

Bonds

$75,000,000

Continental Telephone Co.—

October 15

' "

offered

Buddy L. Corp.
April 2, 1962 filed 225,000 common. Price — By amend¬
ment (max. $10).
Business — Design, manufacture and
sale of various type toys. Proceeds—For a proposed ac¬
quisition of another toy company. Office—200 Fifth Ave.,

(Wednesday)
noon

common

ing debentures, and for working capital. Office—1101
Albany Ave., Hartford, Conn. Underwriter—Gianis &
Co., Inc., New York. Offering—Imminent.

100,000 6hares

Southern Pacific Co

Common

Co.)

Distributors, Inc.
1962 filed $400,000 of convertible

per

count

—Capital

Sulz¬

consisting of

(Tuesday)

(Bids

Office—901 Flor¬

(Michael)

28,000

150,000 shares

Inc.)

Securities

October 10

-Y,? YY

7-';-v-417

and

(Pierce,

Notes

use.

(White, Weld & Co., Inc.,

Producing Co

(Tuesday)

J Be-Mac Transport Co., Inc
■

Gas

$300,000

;

Bruce
March 29,

--Common

(Equitable .Securities

Y-

October 9
Texas

Common
Co.,

160,000

Servotronics, Inc.

units

Electronics, Inc

October

'Y-7-77Y v-'''?YY-

Busi¬

rinse, and spray
Proceeds—For
equipment,
a

Underwriter—D. B. Marron

(Underwood, Neuhaus & Co., Inc., and
Rotan, Mosle «fe Co.) 155,000 shares

17. (Thomas Jay, Winston & Co., Inc.) $300,000

'
•

Schramm

(S.

Co.,

"■:■

Units

Brooks

Chocolate

;*77:

Stonehill

Inc.)

Management Co., Inc

starch,

Common

Ridgway (L. L.) Enterprises, Inc

Corp.—

■

Y;yV
♦

70,000

Co.,

liquid

Office—115 Cutter Mill Rd., Great Neck, N. Y.
& Co., N. Y.

purposes.
v

$1,500,000

(Paine, Webber, Jackson & Curtis and Kidder, Peabody

Common

(Federman,

Plantation

Putnam

Common

Inc.)

Y-YY7 <Pierce, Carrison. Wulbern, Inc.)

'Rimak

•

Goldsmith Bros.-

.Lyntex

Inc.)

(Norton, Fox & Co., Inc.)

Debentures
-

Inc

Wulturn,

Electromagnetic Industries,
v

Siegel,

Stores, Inc.__

.;777,:

•

$800,000

Co. Inc.)

(Blyth

Orbit

Units

Badger Northland, Inc.—.——_

Grumet

householdv

(11/7-9)
Price—$4.

Instruments, Inc.
26, 1962 filed 100,000 common, of which 77,420
shares are to be offered by the company and 22,580
shares by stockholders. > Price — By amendment
(max.
$7.75). Business — Importing and distribution of scien¬
tific instruments. Proceeds—For research and develop¬
ment, equipment, debt repayment and other corporate

—J—D^iiturts:

Corp.-

(Brand,

National Blank Book Co

October

Food

for

Inc.

common.

March

$675

Properties, Inc.

29,

100,000

Brinkmann

commercial and institutional

repayment and working capital. . Office—
St., Union, 111. Underwriters—Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla., and A. M. Kid¬
der & Co., Inc., N. Y. Note—This registration will be
ment,

Offering—Imminent.

Ave., Lima, Ohio. Underwriter—Hallowell,
berger, Jenks, Kirkland & Co., Philadelphia.

sale

1962 filed

cor-

Memphis,
Co., and Nathanson

ence

Barker Bros. Corp.
March 15, 1962 filed 200,000 common.
Price—By amendment (approx. $12).. Business—Merchandising of home,

gen¬

Popular Ave.,

plant expansion and working capital.

Le-lsrael

was

Israel Ltd.

March za, 1982 fiied 100,but) common. Price—By amend¬
ment (max. $7). Business — Design, manufacture and

16,

ness—Manufacture

purposes.
Office — Tel-Aviv,
Underwriter—None.
Note—This
company
f or¬
carried under the name National Bank of

Israel.

merly

par.

Office—2600

purposes.

starch

J For general corporate
is.

—

Co., Inc., New York.

July

Haam

Leumi

Price

Blue Magic Co. of Ohio,

general

3,190,-"
Price—By amendment (max.
75c).-aBusiness—A general banking business/Proceeds—

porale
&

B. M. Yy
June 22, 1962 filed 1,050,000
ordinary shares and
•000 "A" ordinary shares.

humidi¬

ing capital.
Office—668 Jenks Ave., St. 7 Paul, Minn.
Underwriter—Pewters,
Donnelly & Jansen, Inc., St.

Paul,. Minn.

Achad

Bank

.Proceeds—For equipment, inventories and work¬

fiers.

corporate, purposes.
Address—
St., Tel-Aviv, Israel. Underwriter—
Adanim American Israel Investment Co., Inc.
108

1977.

due

subord. deben¬
Business —A holding
conv.

Tenn. Underwriters—Lieberbaum &

—

Proceeds—For

Industries, Inc.

1962 filed $2,000,000 of

general

29, 1961 filed $556,000 of 6% cumulative preference
participating dollar-linked shares.1 Price—By
amendment.
Business
A mortgage lending
company.

tures

dividend

N. Y. Underwriter—Dana Securities .Co.," Inc., 80
Wall St., N. Y. Note—This offering has been temporarily
postponed.
"
"
r
,1! ' : ; /

26,

-company for 16 subsidiaries in the real estate and
eral contracting business. Proceeds—For

Dec.

purposes.

Atmosphere Control, Inc. *
%
May 28, 1962 ("Reg. A") 200,000 common.

Bloomfield Building
Mar.

Bank "Adamm" Mortgages & Loan Ltd.

;

St.,

Business—Manufacture

(10/1-5)

quisition, debt repayment and working capital. Address
—Kaukauna, Wis.
Underwriter—Loewi
&
Co.
Inc.,

bowling magazine. Proceeds
Office—14 W. 55th

general corporate

Badger Northland, Inc.

corporate purposes. Office—95 Madison Ave., N. Y. Un¬
derwriters—Kenneth Kass and J. J. Krieger & Co., Inc.,
•New York.
•
' .•
'■ 1 ■'
1 ''
:
*

Sept. 7, 1962 filed $800,uoO of suhord. conv. debentures
due Oct. 1, 1982. Price—At
par. Business—Manufacture'
of farm equipment.
Proceeds—For new plant, an ac¬

•

•';

Ascot Publishing Co., Inc.
Jan. 29, 1962 ("Reg. A")
103,000
—For

(1327)

Bonds

The Commercial and Financial Chronicle

(1328)

due 1965 and $400,000 of 8% debentures due
(with attached warrants). Price—At par. Business
—Commercial and industrial financing.
Proceeds—For
general corporate purposes. Office—165 Broadway, N. Y.

...

Thursday, September 27, 1962

bentures

14, 1962. Price—25
cents. Business—Manufacture and sale of overhead trol¬
shares

each

for

held

Feb.

ley conveyers, vertical tray lift systems, floor and over¬
head tow systems, etc. Proceeds—For working capital.
Office
Kirk Blvd., Greenville, S. C. Underwriter—
/

Caldwell

Underwriter—None.

ness

Insurance

Co.

Aug. 16, 1962 filed 350,000 common.
ment

Business—Writing of life, accident and
Proceeds—For general corporate pur¬
poses.
Office—4400 MacArthur Blvd., Oakland. Under¬
writer—Stewart, Eubanks, Meyerson & Co., San Fran¬
(max. $6).

cisco.

Cambridge Fund of California, Inc.

New

repayment, working capital
general corporate purposes. Office—725 Broadway.
Underwriter—Alskor Securities Co., N.

Cameo

Lingerie, Inc.

Price—$5.

tailored panties.
Proceeds—For debt repay¬
inventory and working capital. Office—Fajardo,

ment,

Puerto

Rico. Underwriter

Cameron

Iron

Schweickart &

—

Works, Inc.

•

Clark

per

units

share.

diver

Securities

Corp.

Centre, N. Y.

Consumers Mart of America, .Inc.

Price—By amendment.
Business—Operation of discount department stores., Pro¬
ceeds—For expansion and working capital. Office—4701
N. Harlem Ave., Chicago. Underwriters — Rittmaster
Voisin & Co., N. Y. and Midland Securities Co., Inc.,
Kansas City, Mo.
Continental Investment Corp.
May 9, 1962 ("Reg. A") 200,000 common. Price—$1.50.
Business—Investment in real estate mortgages. Proceeds
—For working capital. Office—Scottsdale Savings Bldg.,
Scottsdale, Ariz.
Underwriter—Continental Securities
Corp., Scottsdale, Ariz.

Underwriter—

•

homes, apartment houses, motels, etc. Proceeds—
Office—309 Ainsley
Bldg., Miami, Fla. Underwriter—Willis E. Burnside &
Co., Inc., N. Y.
< t
■
"

Telephone Co.

March 30, 1962 filed 475,000 common.

study manuals for examination preparation. Proceeds—
For equipment, expansion and other corporate purposes.
Office—142 Livingston St., Brooklyn, N. Y. Underwriter
—James &

Continental

(10/2)
Price—By amend¬
ment (max. $15).
Business—A telephone holding com¬
pany.
Proceeds—For debt repayment.
Office—111 S.
Bemiston St., St. Louis. Underwriters—rAllen & Co. and

Publishing ■ Corp. " (10/8-11)-*>»■"■1
'
1962 ("Regv A") 155,000 commori.' Price—$1.
Business-Composition^ publication' and distributibn«of
March 16,

For debt repayment and expansion.

St., Dover, Del. Underwriter—Dana
Co., Inc., N. Y.

Jan. 8, 1962 filed 72,000 common.

College

erect

Ave., Rockville

—

Office—129 S. State

Park

Office

Consolidated Vending Corp^^^/
v
April 2, 1962 filed 70,000 common. Price—$5.75. Business
—Operation of vending machines. Proceeds—For debt
repayment, working capital and other corporate purposes.

Management, Inc., Fort Worth.

None.

of 6%"% subord. deben¬
warrants), and 99,000 common.

(with

1012 Baltimore
Ave., Kansas City, Mo. Underwriter—Blair & Co., N. Y.

common.
Price—By amend¬
quency power transistors.
Proceeds—For debt repay¬
(max. $21.50). Business—Manufacture of equip¬
ment and other corporate purposes.
ment used in the petroleum and processing industries.
Office — Walnut
Ave., Clark, N. J. Underwriter—None.
Company also makes forged metal products used in the
aviation, missile and atomic industries. Proceeds—For 4-"'. Coburn Credit Co., Inc.
selling stockholders. Address—P. O. Box 1212, Houston,
Aug. 17, 1962 filed 80,000 shares of 6% cum. convertible
Texas.
Underwriters—White, Weld & Co., Inc., and
preferred.
Price—$25.
Business—Consumer sales fi¬
Lehman Brothers, N. Y.
W nancing.
Proceeds—For working capital.
Office— 53

1977

ment

Canaveral Hills Enterprises, Inc.
May 10, 1962 filed 100,000 common. Price—$5. Business
—Company was formed to own and operate a country
club and golf course, swimming pool and cabana club,
near
Cape Canaveral, Fla., and develop real estate,

$1,000,000

1962 filed

due

and other corporate purposes.

stock, series 2.

Business—A closed-end

Semiconductor

Leasing Corp. of America

debentures, at par; for stock, by amendment
(max. $9). Business—Renting of cars, trucks and equip¬
ment. Proceeds—For debt repayment, an acquisition

$170.05 of debentures and 185 shares. Price—
$220 per unit Business—Production of very high fre¬

Sept. 14, 1962 filed 280,000

Inc.

York,

Price—For

1962 filed $153,045 of 5% subord. debentures
1967 and 166,500 common shares to be offered in

due

Co., N. Y.

Consolidated

tures

Aug. 22,

(10/23)

New

April 27,

Inc.

Distributor—Associates

children's

bonds due Dec. 1, 1989.
Office—4 Irving
Y.
Underwriters—(Competitive).
Probable
bidders:
Morgan Stanley & Co.; First Boston Corp.Halsey, Stuart & Co. Inc. (jointly). Bids—Oct. 2, 1962
(11 a.m. EDST) at the company's office.

Place,

sified management investment company. Proceeds—For
investment. Office—501 Bailey Ave., Fort Worth, Texas.

Business—Manufactuer of women's and

Co.

mortgage

Price—$5.50

Edison

(10/22-26)

Feb. 6,1961 filed 50,000 shares of common

120,000 are
stockhold¬

14th Ave., North
M. Kahn & Co.,

Sept. 7, 1962 filed $75,000,000 of first and refunding
mortgage bonds, series W, due Oct. 1, 1962. Proceeds—
To refund a like amount of 5*4% first and refunding

Toys, Inc.

Church Builders,

(10/15-19)

Feb. 12, 1962 filed 200,000 common, of which
to be offered by the company and 80,000 by
ers.

York.

Underwriter—Bernard

Fla.

Consolidated

May 23, 1962 filed 100,000 common, of which 70,000
are to be offered by company and 30,000 by stockholders.
Price—By amendment (max. $12.50). Business—Design,
manufacture and sale of plastic educational toys.
Pro¬
ceeds—For working capital.
Office—1125 Close Ave.,
Bronx, N. Y. Underwriter—J. R. Williston & Beane,

debt

137th

(10/2)

Child Guidance

Cambridge Mills Inc..;'
July 27, 1962 filed 110,000 common. Price—$3.50. Busi¬
ness—Design and manufacture of infants' nylon "stretch"

—

Inc., New York.

Rico, Inc.,

Industries, Inc. (10/15-19)
29, 1961 filed 300,000. class A common, of which
225,000 are to be offered by the company and 75,000 by
stockholders. Price—$7.50. Business—Design and manu¬
facture of women's, misses' and junior sportswear, co¬
-ordinates, and dresses. Proceeds—For debt repayment,
equipment and working capital. Office—2025 McKinley
St., Hollywood, Fla. Underwriter —• Clayton Securities
Corp., Boston, Mass.

Long Beach, Calif. Underwriter—To be named.

N. Y.

Miami,

Chestnut Hill

payment and working capital. Office—324 E. Bixby Rd.,

and

paints. Proceeds—For general cor¬
Office—Santurce, P. R. Underwriter—

Santurce, P. R.

ment. Business—General real estate. Proceeds—Debt re¬

Office—12825 North East

repayment.

and manufacture

Arnold Malkan Investment Growth of Puerto

Sept. 28, 1961 filed 280,000 common. Price—By amend¬

Proceeds—For

Coating Corp.

porate purposes.

525-535

—

Concrete Structures, Inc.
July 27, 1962 filed 100,000 common. Price—$4.50. Busi¬
ness—Production of precast and prestressed
concrete
items for the construction industry. Proceeds—For debt

Nov.

Price—By amend¬

health insurance.

wear.

;

1962 filed 70,000 common. Price—$5. Business;
—Company plans to operate a painting contracting busi¬

Publishing Corp.

13, 1962 filed 100,000 common. Price—$3.50. Busi¬
ness—Company plans to publish classics. Proceeds—For
general corporate purposes. Office—339 W. 51st St., N. Y.
Underwriter—S. B. Cantor Co., N. Y.
Life

Chemical

For general corporate purposes.
St., New York City.
Underwriter—M. G. Davis, 150 Broadway, N. Y.

June 29,
.

June

California

Office

—

None.

elery, etc. Proceeds

1967

Continued from page 35

E. F. Hutton & Co., N. Y.

ControlDyne,

Co., New York.

Inc.

Oct. 24,

Dec. 27, 1961 ("Reg. A") 60,000 common. Price—$5. Busi¬
ness— An
investment company which will hold mort¬

1961 filed 150,000 common. Price—$1.15. Busi¬
ness—Development and production of electronic testing
March 28, 1962 filed 164,000 common, of which 115,000
and training devices. Proceeds — For expansion and
are to be offered by the company and
49,000 by stock¬ f
working capital. Office—9340 James Ave., S.. Minne¬
holders. Price—By amendment (max. $15).
Business—
apolis.
Underwriter^—To be named. - Note—This firm
Manufacture of shoeboard and boxboard. Proceeds—For
formerly was named Control Dynamics, Inc. Offering
expansion, equipment and debt repayment. Office—615
—Indefinitely postponed.
'
<
*
.7
Parker St., Manchester, Conn. Underwriter—Putnam &
Co., Hartford, Conn.
Corporate Funding Corp.
v'
*
April 26, 1962 ("Reg. A") 75,000 class A common. Price
Columbia Bancorporation
$4. Business — A financial investment and holding
Feb. 23,1962 filed $30,000,000 of convertible subordinated
company. Proceeds—For expansion and working capital.
debentures due 1987 and 1,500,000 common to be offered
Office—39 Broadwav. N. Y.
Underwriter—R. F-; Dowd
in units of one

gages, land contracts, etc. Proceeds
Office—44 E. Indian School

formed

Capital Investments, Inc.
May 21, 1962 filed 86,370 common to be offered for sub¬
scription by stockholders on the basis of one new share
for each two shares held.
Price—By amendment (max.
$10)., Business—A small business investment

company.

Proceeds—For debt repayment and investment.
743

Fourth

St.,

Milwaukee.

Colonial

Office—

Underwriters—Marshall

Co., and Loewi & Co., Inc., Milwaukee. Offering—Tem¬
porarily postponed.
>

Capital Management Corp.

writer

Note—The

SEC

has

issued

order

temporarily

Trust

Career

Academy, Inc.

April 30,

Industries

1962

filed

120,000

common.

Price—$5.

Busi¬

repayment, inven¬
working capital. Office—11-17 Clintonville
St., Whitestone. N. Y. Underwriter—Arnold Malkan &
Co., Inc., New York.
tories

and

Center Star

Gold

Mines,

Inc.

April 10, 1962 ("Reg. A") 1,200,000 common. Price—250.
Business—For exploration, development and
production
of mineral
deposits. Proceeds — For mining expenses.
Address—Box
naluna

Co.

469, Wallace, Idaho.
and

Standard

Wash.

Underwriters—Pen-

Securities, Inc.,

Spokane,

Bernstein

Securities,

Inc.,

(same

>»

♦

May 16, 1962 filed 150,000 common. Price — By amend¬
(max. $13). Business—Acquisition or administra¬
tion of mortgage loans for institutional investors. Com¬
pany also is engaged in the consumer loan business and

ment

insurance agent or broker in connection there¬
Proceeds—For debt repayment. Office—66 Pryor

Business—A

stocks.

mutual

fund

Proceeds—-For

East

St.,

Inc.,

same

Jacksonville,

Price—Net

St., N. E., Atlanta. Underwriters—F. S. Moseley & Co.,
Boston and Courts &

Co., Atlanta.

111.

Office—110

Underwriter—CN

—

porate purposes. Office—1012 14th St., N. W., Washing¬
ton, D. C. Underwriter—Doft & Co., N. Y.

Agency,

Certified

Capital Corp.
Aug. 2, 1962 filed $200,000 of 8% registered subord. de¬

•

Computer Control Co., Inc.

'"/■

Properties Inc.
29, 1962 filed 70,000 common. Price—By amend¬
Business—Engaged in residential real estate de¬
,

March

ment.

and

Indefinitely postponed.

.•

Creative

Nov.

28,

1961

filed

120,000
purchase

(with attached 3additional 60,000 shares

warrants to
an
$2 per share) to be offered in units of

year

one-half warrant.
facture of

Price—$2

per

one

share and

unit. Business—Manu¬

cosmetics, toiletries, cleaning chemicals, jew-

Corp.

corporate guidance and interim financing con¬

Company

cern.

Ave.,

may

also act

Proceeds—For

as a

broker-dealer and un¬
Office—733

investment.

Underwriter—Hampstead

Third

Investing

Corp.,

New York.
Credit

conv.

subord. de¬

due

Business—A
—For

$1,200,320 of 7%

1974
and
54,560 common shares to be
2,728 units, each consisting of $440 of deben¬
and
20
common
shares.
Price—$550 per unit.

offered
tures

Department, Inc.

1962 filed

26,

bentures
common

Ventures

May 28, 1962 filed 150,000 common and warrants to pur¬
chase 30,000 additional shares, to be offered in units of
one share and one warrant. Price—$2.25 per unit. Busi¬

Jan.

Products, Inc.

For debt repayment and other

Wyatt, Neal & Waggoner, Atlanta. Offering—Immi¬
/
-i'j
:"V;v-:
■'

nent.

derwriter.

Underwriter—Kidder, Peabody & Co., N. Y. Offering—

—

Atlanta, Ga. Underwriters—McDonnell & Co., Inc., N. Y.,

Price—By amendment. Business—Design and manu¬
of digital equipment. Proceeds—For
debt re¬
payment. Office—983 Concord St.. Framingham. Mass.

Concord

Proceeds

corporate purposes. Office—905 Fifteen Peachtree Bldg.,

ness—A

& .Co., N. Y.

Cousins

Jan. 24, 1962 filed 157,500 common, of which 62,500 are
to be offered by the company and 95,000
by stockhold¬

North

address.

Atife., St. Louis. Underwriter—Goodbody
Offering—Temporarily postponed.
L\

velopment.

Computer Concepts Inc. (10/8-11)
Dec. 29, 1961 filed 100,000 class A common. Price
$5.
Business—Development and sale of advanced program¬
ming systems, for solution of business problems by the
use of digital computers. Proceeds — For
general cor¬

specializing in life insurance

investment.

as an

facture

commission.

Country Set Inc.
2, 1962 filed 150,000 common. Price—By amend¬
(max. $8)v Business-—Design.and manufacture of
sports and casual wear for girls and women. Proceeds
—For selling stockholders. Office — 1136 .Washington
ment

-0

ers.

Central Mutual Fund, Inc.
Aug. 20, 1962 filed 100,000 capital shares.
asset value
(max. $14) plus a 2% sales

;

(10/22-26)

Mar.

Commercial Trust Co.

with.

ness—Manufacture of plastic and rubber film
laminates,
a
line of casting,
laminating and embossing machinery.
Proceeds—For new products,
debt

Norman

Corp.

May 26, 1962 filed 190,000 common, of which 178,000 are
to be offered for public sale by the company and 12,000
outstanding by the present holders thereof. Price—To be
supplied by amendment. Business — The manufacture
and distribution of phonograph records. Proceeds—For
the repayment of debt, and working capital. Office—315
W. 47th St., N. Y. Underwriter—Van Alstyne, Noel &
Co., N. Y. Note—This firm was known formerly as the
Cosnat Record Distributing Corp.

Proceeds—For debt repayment and investment.
K St., N. W., Washington, D. C.
Under¬

—

Co., Inc., N. Y. Offering—Indefinitely postponed.
Cosnat

address).
-

acts

Corp.

Office—1415

March 20, 1962 filed 9,964 common.

Centco

Bank

Co.,

company.

—

Western

writer

First

Realty Trust
18, 1962 filed 420,000 class A shares of beneficial
interest. Price—$10. Business—A real estate investment

Chicago.'

Price—$100. Business
Company plans to qualify -as a public utility; and
furnish
water
and
sewage
disposal services in and
around Cedar Lake, Ind. Proceeds — To construct a
sewage disposal system. Address — R.R. N. 3, Box 28,
Cedar Lake, Ind. Underwriter—None.
•

stock

June

Cedar Lake Public Service
Corp.

acquire

Columbia

Price—By amend¬

Operation of technical
Proceeds—For debt repayment, expansion and
general corporate purposes.
Office—135 W. Wells St.,
Milwaukee. Underwriter—Divine &

schools.

Fishman,

Los Angeles. Proceeds—For acquisition of
stock, and working capital. Office—1000
Vermont Ave., N. W., Washington, D. C. Underwriters—
Bear, Stearns & Co., and Allen & Co., N. Y.
First

sus¬

pending this issue.
June 29, 1962 filed 100,000 common.
ment (max. $3.25). Business —

Co.

$20 debenture and one share. Price—By
amendment. Business—A bank holding company recently

For investment.

Rd., Scottsdale, Ariz. Under¬
Underwriters, Inc., Scottsdale, Ariz.

Pacific

—

Board

debt

Underwriter

consumer

sales finance

repayment.
—

Bernard

Proceed!
Broadway, N. Y.
& Co., Inc., N. Y.

company.

Office—1775
M.

Kahn

Number 6198

196

Volume

'/.rrf'};\y

Crownco

The Commercial and Financial Chronicle

Thomas

filed 115,000 common. Price—$4 Business
—Design, sale, fabrication and installation of acoustical
ceilings. Proceeds—For debt n^ayment and expansion.
Mar. 26, 1962

Euclid

San Diego.
R. J. Henderson & Co., Los Angeles.

Office—1925

Ave.,

Underwriter

—

Products,

Inc.

C. Transit Systems,

Inc.

April 30, 1962 filed $6,250,000 of 6%% conv. subord. de¬

benture? %clue 1977 vand?five*year warrants to purchase
an aggregate of 167,500 class A shares, to be offered for
subscription by holders of class A and class B stock in
units consisting of $100 of debentures and three war¬
rants.
Price—$100 per unit. Business—Operation of a
public transit, system in Washington, t>. C.; a hew sub¬
sidiary to construct housing projects in Washington,
D; C. Proceeds—For construction and general corporate
purposes. Office—3600 M St., N. W., Washington, D. C.
Underwriter—-None,

Systems Devices of Boston, Inc.
April 26, 1962 filed 200,000 common. Price—$5. Business
—Company plans to design, develop and produce elec¬
Data

tronic and electro-mechanical devices, including printers
for electronic computers.

Proceeds—For product devel¬

opment, new plant and equipment and working capital.
Office—342
Western
Ave.,
Boston. , UnderwriterSchmidt, Sharp, McCabe & Co., Inc., Denver.
Decorel Corp.

Dec.

29,

filed,120,000

1961

common,

of which 90,000

public and 30,000 by a stock¬
holder. Price—By amendment. Business—Production and
sale of wood and metal framed pictures, wood utility

debt repayment, inventory,
and working capital; Office—444 Courtland St., Mundelein, 111. Underwriter—To be named.
frames, etc. Proceeds—For

Deuterium Corp.

5% preferred share held, 2 units for each 5% preferred
A stock held and one unit for each 10 class B shares

Price—$20

unit.

per

Business—Company plans to

manufacture and utilize all kinds of chemical materials.

start-up expenses, for a laboratory and

Proceeds—For

small

plant.

Office—360 Lexington

Ave.,

New York.

Business—D

electronic

Co., Inc.
;;
'/•'*
Feb. 27,1962 filed 102,000 common. Pri<5e—$3. Business
—Production of graded diamond powder and compound.
Proceeds—For
debt
repayment, additional personnel,
advertising and working caiptal.
Office—77 Searing
Ave., Mineola, N. Y. Underwriter—Magnus & Co., N. Y.
^Offering—Indefinitely postponed.
Corp.

Jan. 23, 1962 filed 200,000 common, of

which 120,000 are
to be offered by the company and 80,000 by stockhold¬
ers.
Price—By amendment. Business—Manufacture of
women's nylon hosiery. Proceeds—For debt repayment
and working capital. Office—417 Fifth Ave., N. Y.
Un¬
&

Co.,

Philadelphia.

Offering—In¬

definitely postponed.
Diversified

circuits

Collateral

Corp.

13, 1962 filed 77,050 common. Price—By amend¬
ment (max. $11.75). Business—A real estate investment
company. Proceeds—For investment. Office^-8397 N. E.
Second Ave., Miami, Fla. Underwriter—Karen Securities
Corp., N. Y.

in mid-October.

Dynamic

,
,

Underwriter—Mortimer B. Burnside

Eastern Camera & Photo Corp.
conv. subord. deben¬
shares (of which 25,000 Will be sold by the company and 25,000 by stock¬
holders). The securities are to be offered in units of one
$100 debenture and 10 shares. Price—By amendment.
Business—Operation of retail camera stores and depart¬
ment store concessions.
Company also processes black
and white film and repairs photographic equipment.
Proceeds—For debt repayment and working capital. Of¬
fice—68 W. Columbia St., Hempstead, N. Y. Underwrit¬
ers—Edwards & Hanley, Hempstead, L. I., and Street &
Co., Inc., N. Y. Offering—Indefinitely postponed.

Eastern

common

Price—By amend¬
ment (max. $16). Business—A small business investment
company.
Proceeds—For general corporate purposes.
Office

—

Penn

writers—Drexel

Center

common.

Plaza,

Philadelhia.

Under¬

Co., Philadelphia and Kidder, Pea-

body & Co., N. Y.;
Econo-Car International, Inc.

July 27, 1962 filed 100,000 class A common.

Price—$4.
automobiles, station wagons, and
trucks.
Proceeds—For equipment, new franchises, and
working capital. Office—520 Westfield Ave., Elizabeth,
N. J. Underwriter—Crosse & Co. Inc., N. Y.
of

Econ-O-Pay, Inc.
26, 1961 filed 1,000,000 common. Price—$3. Busi¬
ness—A dealeu recourse finance business.? Proceeds

Oct.

General

Office—164 E.: Main St.,
Underwriter—Reserve 'Funds* Inc.,

corporate purposes:

Valley City* N. D.
Valley City. N. D#

(10/1-5)

45,000

are to be offered by company and
stockholders. Price—By amendment (max. $1

25,000 by
per

share). Business

March

22,

Corp.

1962 filed 125,000 common.
and

distribution

Price—$3. Busi¬
components

for

repayment, expansion, sales promotion and work¬
ing capital. Office — 103 E. Hawthorne Ave., Valley
Stream, N. Y. Underwriters—V. S. Wickett & Co., Inc.,
Thomas, Williams & Lee, Inc., and Crosse & Co., Inc.,
•

York.

;

Emcee

writer—Weil &' Co., Inc.,

Proceeds—For

trust.

investment.

Office—19

;

First

South, Salt Lake City. Underwriter—Realty Securities,
Inc., Salt Lake City.
;

Doman Helicopters, Inc.

April 19, 1962 filed 418,680 common to be offered for
subscription by stockholders on the basis of two new
shares for each three held. Price—By amendment (max.
$1.25). Business—Research, development and construc¬
tion of experimental helicopters.
Proceeds—To obtain
certification of models, train service personnel, repay
debt, etc. Address—Municipal Airport, Danbury, Conn.
Underwriter—None.

Donmoor-lsaacson, Inc.

Design and manufacture of boys knit shirts, sweaters,
pajamas. Proceeds—For working capital. Office—

and

1115

Broadway,

poned.

Y. Underwriter—Goodbody & Co.,
has been" temporarily post¬

Note—This offering
y

Dyna Mfg. Co.

April 2, 1962 ("Reg. A") 60,000 common of which 40,000
will be sold by company and 20,000 by stockholders.
Price—$5. Business—Manufacture, installation and sale
of kitchen ventilating hoods and exhaust fans. Proceeds
—Expansion, new products and working capital. Office—
4865
Exposition Blvd., Los Angeles.
Underwriter—

plant expansion, inventory, and equipment.
Arnold Ave., New Castle, Del.
Under¬

Office—1202

Washington, D. C,.

Equity Annuity Life Insurance Co.
Aug. 21 j 1962 filed 150,000 common to be offered for
subscription by stockholders on a pro rata basis. Price
—$7. Business—Sale of individual life insurance, pen¬
sion trust and group variable annuity contracts. Proceeds
—For expansion and capital funds. Office — 2480 16th

St., N. W., Washington, D. C. Underwriter—None.

firms

National

Life

Insurance Co.

share for each three shares held. Price—$1.20. Business
—
For investments. Office—

—Life insurance. Proceeds

1330 Leyden St., Denver. Underwriter—None.

Fastpak, Inc. \ *
30, 1961 filed 125,000 common. Price—$5. Business
distribution of nuts, bolts and other fastening

Nov.

—The

devices

manufactured

repayment

and

general

others.

Proceeds—For

corporate, purposes.
N. Y. Underwriter

Place, Freeport,

Malkan & Co., Inc., N. Y.

debt

Office—8
Arnold

—

;

Fidelity Mining Investments Ltd.
1961 filed 800,000 common. Price—By amend¬
ment. Business—Exploration and testing of mining prop¬
erties. Proceeds—For general corporate purposes. Office
—62 Richmond
St., Toronto. Underwriter—G. V. Kirby
& Associates, Ltd., Toronto.
Nov. 30,

• Fieldcrest
Mills, Inc. (10/8-11)
Aug. 31, 1962 filed 300,000 capital shares, of which 200,000 are to be offered by company and 100,000 by stock¬
holders. Price—By amendment (max. $15). Business—•
Design, manufacture and marketing of household tex¬
tile products. Proceeds—For debt repayment and work¬

ing capital. Address—Sprayi N. C; Underwriter—Blyth
&

Co., Inc., N. Y.

;

K First American Israel Mutual Fund

(10/29-31)
1962 filed 2,750,000 shares of beneficial in¬
Price—By amendment (max. $10). Business—
A mutual fund which plans to invest primarily in equity
type securities of Israeli companies. Proceeds—For in¬
vestment. Office—141 Milk St., Boston/ Underwriter—
Paine, Webber, Jackson & Curtis, Boston.
y v*v.

-Aug.

15,

First Connecticut Small Business Investment Co.

(10/29-31)

selling life insurance and mutual funds.

Proceeds

new
sales offices, advances to subsidiaries and
working capital. Office—5150 Wilshire Blvd., Los An¬
geles.
Underwriter—Wisconsin-Continental, Inc., Mil¬

Everbest Engineering Corp.
April 2, 1962 filed 100,000 class A shares. Price—$2.40.
Business—Manufacture and sale of long-lived electric

lamps. Proceeds—New product development, inventories

working capital. Office—41

iiy;./

y/y. /V\<

' y

200,000 common. Price—By amend¬
$15).
Business—A small business invest¬
ment company. Proceeds—For investment.
Office—955
(max.

Main
&

St., Bridgeport, Conn.
Co., N. Y.

Underwriter—P. W. Brook*

First Income

Realty Trust
9, 1961 filed 500,000 shares of beneficial interest.
Price—(For the first 10,000 shares) $10.80 per share.
(For the balance) Net asset value plus 8% commission.
Business—A real estate investment trust.

investment.
D.

Office—1613

Eye

Underwriter—Sidney

First New York

27,

Proceeds—For

W.,

Mensh

Washington,

Securities

Co..

This company formerly was
Perpetual Investment Trust.

Washington, D. C. Note
known

St.,

ceeds—For

Capital Fund, Inc.

filed 2,770,000

1961

Business—A

—

small

business

investment.

Manhasset, N. Y.

capital shares.
investment

Office—1295

Price—$1.

company.

Northern

Pro¬

Blvd.,

Underwriter—None.

Florida

Bancgrowth, Inc.
March 16, 1962 filed 200,000 common. Price—By amend¬
ment
(max. $15). Business—An investment ■< company
specializing in bank stocks. Proceeds—For investment.
Office—3356 Atlantic Blvd., Pompano Beach, Fla.
Un¬
derwriter—Dempsey-Tegeler & Co., Inc., St. Louis. Note
This offering was postponed.
/
/ •
V
Florida

Jai Alai, Inc.
1962 filed 400,000 common. Price—$5. Busi¬
ness
Operation of Jai Alai games and pari-mutuel
betting. Proceeds—For rent, purchase of leased quarters,
building improvements, working capital.
Office—Fern
Park, Fla. Underwriter—To be named.
.
'
■
-

June

28,

—

offered for
amendment
(max. $2). Business—Company owns and licenses carton
pouring spout patents and die patents. Proceeds—For
debt repayment and other corporate purposes.
Office—
100 W. 10th St., Wilmington, Del.
Underwriter—None.
May 10, 1962 filed 169,420 common to be
subscription by stockholders.
Price—By

Research Laboratories, Inc.
filed 107,500 common, of which 100,000
are to be offered
by company and 7,500 by stockhold¬
ers.
Price—By amendment (max. $5). Business—Chem¬
ical and biological research and testing for the food, drug,
cosmetics, chemical and related industries. Proceeds—
For expansion, equipment
and debt repayment. Ad¬
dress—Maurice Ave. at 58th St., Maspeth, N. Y. Under¬
Food & Drug

Ernst, Inc. (10/15-19)
Aug. 21, 1962 ("Reg. A") 60,000 common.
Price—$5.
Business—Manufacturing of men's ties. Proceeds—For
debt repayment, new products, equipment and working
capital. Office—712 Sansome St., San Francisco. Under¬
writer—Burr, Wilson & Co., Inc., San Francisco.

Underwriter—Planned Investing

March 9, 1962 filed

ment

Floseal Corp.

—For

and

Falcon

25, 1962 filed 300,000 common to be offered for
subscription by stockholders on the basis of one new

Equity Funding Corp. of America
March 29, 1962 filed 240,000 common. Price—By amend¬
ment (max. $6.50).
Business—A holding company for

waukee.

Feb. 26, 1962 filed 150,000 common, of which 50,000 are
to be offered by the company and 100,000 by stock¬
holders. Price—By amendment (max. $12). Business—

June

Oct.

ceeds—For

est.

com¬

Nov.

(10/8-11)

background music; design, construction and installation
of specialized closed circut TV system. Proceeds—For

New

finance

repayment, working capital
Greenville, Rd., Easley, S. C.

expansion. Office —
Underwriter—Alester G. Furman Co., Inc.. Greenville,
s.c.
;v, v,/
:^

—

Electronic Transmission

ness—Manufacture

and /consumer

debt

and

com¬

Design, production, assembly,
distribution and sale of transformers, magnetic com¬
ponents and electronic instrumentation and control de¬
vices. Proceeds—For equipment, debt repayment, a new
plant and working capital. Office—Sayville Industrial
Park, Greeley Ave., Sayville, L. I., N. Y. Underwriter—
Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.
•

terest.

March 30, 1962 filed $250,000 of 6V2% conv. subord. de¬
bentures due 1987, also 70,000 common shares, of which

mon

automobile

Proceeds—For

Benson

Pennsylvania Investment Co.<

16, 1962 filed 450,000

/'y

Business—An
pany.

March 28 1962 filed $500,000 of 6%

tures due 1972 and 50,000

York.

Fairlane Finance

Co., Inc. (10/8-11)
June 13,-1962 ("Reg. A") $300,000 of 6%% sinking fund
/junior subordinated debentures due 1977. Price—At par.

New York.

Diversified Realty Investors
June 28, 1962 filed 1,900,000 certificates of interest. Price
—$1 per interest. Business—A real estate investment

March 8,

•

Co., Inc.,

Co., Inc., (same address). Offering—Expected in Nov.

Estate Trust

New

June 21, 1962 filed 75,000 common.

1962 filed 1,000,000 shares of beneficial inter¬
Price—$10.
Business—A real estate investment
trust. Proceeds—For investment. Office—500 Fifth Ave.,
N. Y. Underwriter—Bacon, Johnson Realty Management

Real

inventory, expansion, debt repayment, and
working capital. Office—4906-08 Ave. D, Brooklyn, N. Y.
Underwriter—Dynamic Planning Corp., 51 Broadway,

Industries,

Inc.
Price—$4. Business
—manufacturing, labeling and packaging of long playing
stereophonic and monaural phonograph records for label
record companies. Proceeds-^-For equipment and Work¬
ing capital. Office — 900 Passaic Ave., East Newark,

Enterprises, Inc.

ceeds—-For

„

Electronics, Inc. (10/8-11) ;
June 4, 1962 filed $200,000 of 6%% conv. debentures due
1974, and 50,000 common, to be offered in units of
$200 of debentures and 50 shares. Price—$400 per unit.
Business—Manufacture
of
precision instruments, and
electronic devices for measurement and control.
Pro¬

Diversified

Fabco

Sept. 17, 1962 filed 83,500 common. Price—$4.50. Busi¬
ness—Operation of self-service retail shoe department in
discount department stores and one retail store.
Pro¬

debt

June

water closet tanks,
fiberglass gravel stop and laundry tubs. Proceeds—For
debt repayment, equipment, and working capital. Ad¬
dress—Stillwater, Minn.
Underwriter—Pewters, Don¬
nelly & Jansen, Inc., St. Paul. J / ^ .

sub-systems.

and

products and working capital.

Electromagnetic Industries, Inc.

Diamond Dust

derwriter—Drexel

new

Business—Manufacture of insulated

Pro¬
Office—
317 Main St., East Rochester, N. Y. Underwriters—Gen¬
esee
Valley Securities Co., Inc., Rochester, and H. B
Vesey & Co., Inc., Glens Falls, N. Y. Offering—Expected"'

ceeds—For

Underwriter—None.

Diamond Mills

Co., Inc., Beverly Hills, Calif.

Electronics Corp.
<
("Reg.^A") 143,000 common. Price—$2.
s i g
n,
development and production of

Business—Rental

Sept. 28, 1961 filed 140,000 common with attached war¬
rants to purchase an additional 140,000 shares to be
offered for subscription by stockholders in units (of one
share and one warrant) on the basis of 3 units for each

held.

Dyna-Mod
22, 1962

Jan.

March

to be offered by the

are

Jay, Winston &
Offering—In November.

"packaged"

'
June 22, 1962 ("Reg. A") 90,000 common. Price—$1.50.
Business—Design and manufacture of flexible, re-usable
vinyl packages.- vProceeds—For -debt^repayment, sales
promotion, equipment, research and development, and
working capital. Office —• 2401 Pacific St., Brooklyn,
N.Y. Underwriter—Broadwall Securities, Brooklyn, N.Y.
C-Thru

(1329)

E. Twelfth
Corp., N. Y.

St., N. Y.

Fabco, Inc.

July 20, 1962 ("Reg. A") 200,000 common.

Price—$1.50.

May

24,

1962

writers—Maltz, Greenwald & Co. and
&

Rittmaster, Voisin

Co., N. Y.
Forst

(Alex)

& Sons,

Inc.

filed 100,000 common. Price—By amend¬
$15). Business—Wholesale distribution of

March 23, 1962

ment

(max.

Continued

page

The Commercial and Financial Chronicle

(1330)

ment,

Continued frorn page 37\

expansion,

Cedar

Proceeds—For selling stockholders. Of¬
N. Y. Underwriter—Mc¬
Offering—Temporarily postponed.

toys and games.

fice—2885 Jerome Ave., Bronx,

Gold

Donnell & Co., N. Y.
Four

Star

1962 filed 103,000 common. Price—$3. Busi¬
ness—Design, manufacture and distribution of, men's
outerwear, sportswear
and rainwear. , Proceeds—For
plant expansion, equipment and working capital. Office
—665 Broadway, N. Y.
Underwriter—Magnus & Co.,
,r

;.\p/„

Leaf Pharmacal Co.,

ing,

research,

debt

Thursday, September 27, 1962

sion, inventory, and debt repayment. Office—476 Broad¬
way, N. Y. Underwriter—To be named.
Harris

(Paul)

See Paul, Harris

Inc.

Stores, Inc.
Stores, Inc.

Harwyn Publishing Corp. ./;■■>/ ;/1962 fiied 300,000 class A common. Price

Jan. 29,

tical and veterinarian products, proceeds-—For advertis¬

March 27,

Inc., New York.

Office—545

Stetson and

March 13, 1962 filed 80,000 common. Price—$4. Busi¬
ness—Manufacture, development and sale of pharmaceu¬

Inc.

Sportswear,

inventory.

and

research,

Teaneck, N. J.
Underwriters—Winslow,
Laird, Bissell & Meeds, N. Y.

Lane,

Cohu &

—

amendment.

Business

Publishes

working

illustrated

Frederick's

Hollywood, Inc.
March 26, 1962 filed 150,000 capital shares, of which 70,000 are to be offered by company and 80,000 by a stock¬
holder. Price—$5. Business—Operation of a mail order
business

and

ceeds—For

chain

expansion

women's

Office—6608 Hollywood
—To be named.,

apparel

other

and

Pro¬

stores.

corporate

purposes.

Blvd., Los Angeles. Underwriter

Good-Era Realty & Construction Corp.
April 2, 1962 filed 550,000 class A shares. Price—$10.
Business—Company plans to develop, operate, construct
and manage real estate. Proceeds—For general corporate
purposes. Office—151 N. Dean St., Englewood, N. J. Un¬

Fund

Investments, Inc.
28, 1962 filed 80,000 class B common. Price—$5.
Business—Retailing of mutual fund shares. Proceeds—
June

For

working capital and debt repayment

Morehead St.,

Gabriel
March

Charlotte, N. C.

derwriters—Leiberbaum & Co. and Morris Cohon &

Office—1301

Gamma
June 29,

Leather

to be

and

offered

in units

consisting of one share
per unit. Business—De¬

Price—$4.75
sign, manufacture and sale of ladies' handbags and
lated items. Proceeds—For

re-

;

new

and

Garden State Small Business
Oct. 27,

1961 filed 330,000

Garsite

July 13,

Products, Inc.
("Reg. A") 15,000

1962

gasoline

and

Proceeds—For
Newark, N. J.
Taylor & Co., N. Y.

Great

&
.

amendment

selling

Bellflower,

—For

•

glass

equipment, inventory and working capital. Office
N. First Street, San Jose, Calif, Underwriter—
Burr, Wilson & Co., Inc., San Francisco.
—1299

Ellen

150,000 common, of which 60,000
by the company and 90,000 by the com¬
pany's parent, Glen Modes, Inc. Price—By amendment
(max. $7).
Business—Design, production and sale of
to be offered

women's
—For

fashion

general

Ave., N. Y.

accessories, and sportswear. Proceeds
corporate purposes.
Office—417 Fifth

Underwriter—Sprayregen, Haft & Co., N. Y.

Offering—Indefinitely postponed.
-

Global Construction

Devices, Inc.
<
100,000 common. Price—$10. Busi¬
ness—Manufacture, sale and lease of steel supports and
June 29, 1962 filed

beams used in construction.

Blvd.,
Co.,

Office—40 Beaver St., Albany, N; Y. Underwriter—None.
•

debt

Discount Centers, Inc./
7, 1962 filed 125,000 common;; Price—By amend¬
ment (max. $5).
Business—Operation of discount stores.

Proceeds—For inventory, expansion/debt repayment-and
working capital. Office—6400 MacCorkle Ave., S. W.,
St,; Albans. W. Va. / Underwriter—Willard- Securities,
Inc., N. Y. Note—This registration will be withdrawn.
.

Hek

Manufacturing Co., Inc. < ^
;
Aug. 7, 1962 ("Reg. A") 75,000 common, of which 69,000

Gulf Atlantic

Rock &

Sand

Co.

(10/8-11)

Proceeds—For debt repay¬

be; offered, for the ' account of • the com¬
shares for the. underwriter.
Price^$2.
Business^Manufacture of dental- equipment./ Proceeds—
.For debt repayment, advetrising, research and develop¬
ment and working capital.
Office—2176 Palou, San
Francisco1. Underwriter—Li 'H/Wright Co., Inc., NV Y.
Helix

incandescent

common,

lighting

fixtures.

Proceeds—

general

corporate purposes. Office—Chicago. 111.
W. Pressprich & Co., N. Y. Offering—
Temporarily postponed.
/
.

Hanna-Barbara

1961

Productions, Inc.

filed 200,000

capital shares.

Price

—

commercials.

Proceeds — For a new building and
capital. Office—3501 Cahuega Blvd., Los An¬
geles. Underwriter—Carl M. Loeb, Rhoades & Co., Inc.,
N. Y. Note—This registration was withdrawn.

working

Harley Products, Inc.;
28, 1962 filed 75,000 common.

March

;

Co., Inc.
May: 29, 1962 filed 100,000 common, of which 80,000: are
to be offered by company and 20,000
by stockholders.
Price—By amendment (max. $12.50). Business—Sale of
wrist watches to holders of food
chain,; cash register
tapes. Proceeds—For working capital. Office—2046 Bell
Ave., St. Louis. Underwriter—Newhard, Cook &s.Co.,
St. Louis.

///?/■/

Hickory Industries, Inc. J; //////'ij/!/.;// /•;
Aug. 31, 1961 ("Reg.kA") 40,000 common. Price—$5.
•:

Business—The

manufacture

barbecue

machines -and

equipment. Proceeds—For equipment,' inventory,
sales promotion, expansion and working capital. Office—
10-20 47th Rd., Long/Island/City, N. Y; Underwriter—
J. B. Coburn Associates, Inc., N, Y. Offerings-Indefinite.
Hill

Street

Oct, 16,. 1961

Cb./'v';/rf///;>;':^/ri/^///:-//>/;'/</\/

filed 2,265,138 common to be, offered, for
subscription by stockholders of Union Bank of Califor¬
nia

share-for-share basis/

vestment.

investment

Office—760 S. Hill

writer—None.

Price—$4.

;

Price—$3. Business—A
Proceeds—For * in¬

company.

St./ Los Angeles.
*

Under¬

•

/ Hoffman House Sauce Co., Inc.t,
^ /'
/
Feb. 28, 1962 filed $250,000 of 6*&% subordinated sink¬
.

ing

fund

common

convertible

debentures

shares to be offered in

$500 debenture and 50
unit. Business

due

1977

and

25,650

units consisting of one

shares.

common

Price.—$1,000

per

Manufacture

of liquid and semi-solid
specialty sauces. Proceeds—For debt
expansion. Office—109 S. Webster'St.,

—

salad dressings and

repayment and
Madison, Wis. Underwriter—Milwaukee Co., Milwaukee,
Wis. Offering—Indefinitely postponed. -V / * •//..,/ / :
Ho I lings worth Solderless Terminal Co.
Feb.

27,

1962

;:;/////////-1

("Reg.

A") 75,000 common. Price — $4.
Business—Manufacture, sale and development of solderless terminals and other wire terminating products. Pro¬
ceeds—For debt repayment, equipment,
advertising and
working capital. Address—P. O. Box 430, Phoenixville,
,

Pa.

Underwriter—Harrison

Co., Philadelphia. Offer¬
//■/'■; /

Honora, Ltd.
29,

1961

("Reg. A") 76,500

Business—Purchase
distribution

cultured

the

Price—$3.75.

common.

pearls

Japan

Proceeds—For

and

general

corporate purposes. Office—42 W. 48th St., N. Y. Under¬
writer—Sunshine Securities, Inc., Rego Park, N. Y.
/
House of

Koshu, Inc.
29, 1962 filed 75,000 class A common. Price—$5.
Business—Importing of Japanese liquors. Proceeds—For
debt
repayment, advertising, inventory and working
capital. Office—129 S. State St., Dover, Del. Underwriter
March

amendment. Business—Production of television cartoons
and

Inc.

Herlin

Dec. 29,

Co.,

(max. $5), Business—General- real estate.
Proceeds—For general corporate purposes. Office—4265
Summit Dr., La Mesa, Calif. Underwriter—None. --

their

•

Land

amendment

Nov.

recessed

6,000

April; 27, 1962 filed 586,000 capital shares. .Price-t-By

which 100,000
will be sold by the company and 200,000 by a stock¬
holder.
Price—By amendment.- Business—Manufacture
For

are

and

pany

ing—Temporarily postponed.

Halo

Lighting, Inc.
Mar. 27, 1962 filed 300,000

management

Utilities, Inc. (10/29-11/2)
; - ,
July 30, 1962 filed 90,000 common. Price—By amendment
(max. $10). Business — A management and operating
company for subsidiaries which own water treatment
and sewerage disposal plants, and water distribution and
sewage collections systems. Proceeds—For debt repay¬
ment, expansion and working capital. Office—2738 Malinda Blvd., Jacksonville, Fla. Underwriter—Pierce, Carrison, Wulbern, Inc., Jacksonville. I
•../;/ -■>.

•'

Heck's

June

allied

Underwriter—R.

Glensder Corp.
March 23, 1962 filed
are

Cohon

purchase 25,000 common at $1 per share to be offered in
units consisting of a $10 debenture, 8 common shares and
one warrant. Price—$18 per unit.
Business—Extraction,
processing and sale of rock and sand. Proceeds—For a
new plant and other corporate purposes. Address—Hal¬
landale, Fla. Underwriter—Mutch, Khanbegian, Flynn &
Green, Inc.. 115 Broadway, N. Y.

mirrors and sliding
products.
Proceeds

Corp.
Sept. 6, 1962 filed $600,000 of 6% subord. income de¬
bentures due Jan. 1, 1983 and 24,000 common shares to
be offered in units of one $1,000 debenture and 40 com¬
mon shares.
Price—$1,500 per unit. Business—Company
plans to develop and operate a ski and recreational re¬
sort at Fayston, Vt. Proceeds—For construction. Address
—Box 111, Waitsfield, Vt.. Underwriter—None.

Underwriter—Morris

Hallandale

—For

Glen

Bellflower

March 30, 1962 filed $250,000 of 8% subordinated deben¬
tures due 1977, 200,000 common and 6-year warrants to

com¬

Business—Company

flat

Office—17602

R. Williston & Beane, N. Y.

-Glasco Pacific, Inc.
July 12, 1962 filed 250,000 class A and 250,000 common

doors and related

Calif.

Price—By
Business—Operation of 16
Angeles area. Proceeds—For

repayment, inventory and working capital.
Office—35 Engel St.; Hicksville, N. Y. Underwriter—J.

April 4, 1962 filed 254,000 common. Price—By amend¬
ment (max. $18). Business—Development and
produc¬
tion of radar and other
specialized electronic systems.
Proceeds—For selling stockholders. Office—1815 Venice
Blvd., Los Angeles. Underwriter—Blyth & Co., Inc., Los~
Angeles.

manufacture

Los

Greenman Bros., Inc.
:v:
April 25, 1962 filed 150,000 common, of which 75,000 are
to be offered by company and 75,000 by stockholders.
Price—$10. Business—Wholesale and retail distribution
of toys, hobby lines and sporting equipment. 'Proceeds/

Gilfillan Corp.

$14).

the

■/■'

—

plans

stockholders.-'

New York.

mail order. Proceeds
For debt repayment, new
products, sales promotion and working capital. Office—
88 Cutter Mill Rd., Great
Neck, L. I., N. Y. Underwriter
—S. C. Burns &
Co., Inc., New York.

wardrobe mirror

(max.

supermarkets

Corp.

one

Greater McCoy's Markets, Inc.
'
June 28 1962 filed 219,150 class A common.

1962 ("Reg. A") 78,000 common. Price—$2.75.
Business—Sale of vitamins through department stores

shares to be offered in units of one clsas A and
mon
share./ Price—$5.05 per unit.

Co.

April 3,

and

Insurance

purposes.
Office—116 John St., N. Y.
Underwriters—Emanuel, Deetjen & Co., and Zuckerman,

various
industries.
Proceeds—For
debt
repayment,
equipment and working capital. Office—1252 W. Peachtree St., N. W., Atlanta, Ga. Underwriter — Robert M.
Harris & Co., Inc., Philadelphia. Note—The SEC has is¬
;

Eastern

Smith & Co., N. Y.

Design Corp.
25, 1962 ("Reg. A") 65,000 common. > Price—$3.
Business—Design and development of new products for

temporarily suspending this issue.

^fad/Place, Baltimore. Underwriter

general corporate

Price—$5. Business

"key

General Vitamin & Drug

Investment Trust

April 13, 1962 filed 381,600 common. Price—By amend¬
ment (max. $5). Business—Company plans to write cer¬
tain types of fire and casualty insurance. Proceeds—For

General

order

Estate

;

April

Real

;

—To be named. Note—This firm formerly was known as
Continental Real Estate Investment Trust.
i,

clubs." Proceeds—For
expansion, debt reduction, and working capital. Office
—13
E. Huron St.,
Chicago. Underwriter—Myron A.
Lomasney & Co., N. Y. Offering—Indefinitely postponed.

sued

Continental

ment. Office—530 St.

Price—$3.33.

common.
{

one preferred share for each 10 com¬
Price—$12. Business—Real estate. Proceeds
—For general corporate purposes and debt
repayment.

basis of

held.

mon

Bahama

1961 filed 300,000 shares of beneficial interest
Price—$10. Business—Real estate. Proceeds—For invest¬

common.

holders

Gourmet Food Products, Inc.
\>
May 25, .1962 filed 28,113 common. Price—$3.50. Busi¬
ness
Growing, purchasing, distributing and selling
whole potatoes and processing and selling of prepared
potato products. Proceeds—For the selling stockholders.
Office—915 Southeast 10th Ave., Portland,-Ore. Under¬

Aug. 3,

Underwriter—Theodore Arrin

Gaslight Club, Inc.
Feb. 28, 1962 filed 100,000
—Company operates four

Office—1707 H St.,
Underwriter—Rouse, Brewer,
Inc., Washington, D. C.

Ave.', N. Y. Underwriter—Allen & Co., N. Y.

oil

a
selling
Seaford, L. I., N. Y.
Co., Inc., N. Y. "

corporate purposes.

28, 1962 filed 23,300 shares of 5% convertible
preference stock to be offered for subscription by stock¬

ment. Business—Sale and development of land on Grand

marketing industries. Proceeds—
stockholder.
Office—4045 Merrick Rd.,

For

other

Underwriter—None.

Heartland Development Corp.

Bahama Island for residential and resort purposes. Pro¬
ceeds—For general corporate purposes. Office—250 Park

Price—$3. Business

Business—Manufacture of machinery and equipment for
the

and

Sept. 12, 1962.

Proceeds—For expansion. Office

St., Honolulu.

March

Development Co., Ltd.
Jan. 23, 1962 filed 250,000 common. Price — By amend¬

investment company.
investment. Office—1180 Raymond Blvd.,

Underwriter—Godfrey, Hamilton,
Offering—Temporarily postponed.

•

ten shares held of record

each

Price—By amendment.

W., Washington, D. C.

Grand

Investment Co.

common.

business

Corp.

writer—To be named.

New York.

—A small

share for

Co.,

—

plant, sales promotion
working capital. Office—288 Plymouth Ave., Fall
River, Mass. Underwriter—Hampstead Investing Corp.,
a

Investment

Becker & Bryant,

and 75,000 five-year

common

warrant.

one

Goods Corp.

1962 filed 75,000

warrants

J
.
Aug. 23, 1962 filed 315,730 common to be offered, for
subscription by stockholders on the basis of one new

Nov. 21, 1961 filed 100,000 common. Price—$6. Business
—Real estate investment. Proceeds—For working capi¬
tal

Underwriter—White. Weld & Co.. Inc.. N. Y.

Hawaiian Electric Co., Ltd.,

—900 Richards

Gotham

Industries, Inc.
1962 filed 100,000

Address—Honolulu,

Hawaii.
/

New York.

Underwriter—None.

class A common shares.
Price—By amendment
(max. $11). Business—Design,
manufacture and distribution of toys and sporting goods.
Proceeds—For debt repayment Office—184 Fifth Ave.,
N. Y. Underwriter—Hemphill, Noyes & Co., N. Y.

30,

encyclo¬

capital.
pedic works for children and operates, an advertising
Office—36 Lawton St., New Rochelle, N. Y. Underwriter
/agency for sale of TV and radio spot time. Proceeds—
—Droulia &. Co., N. Y.
•
'
For working capital. Office—170 Varick
St., N. Y. Un¬
• Goldsmith Bros.
(10/1-5)
derwriter—Van Alstyne, Noel &
Co., N. Y. OfferingJune 29, 1962 filed 125,000 common, of which 62,500 are
Indefinite.
*
/
\
'
to be offered by company and 62,500 by stockholders.
Hawaii Real Estate Investment Trust
Price—By amendment (max. $8). Business—Retail sale
JVTay 18, 1962 filed 1,000,000 shares of beneficial interest
of stationery office supplies and department store mer¬
and eight-year stock purchase warrants to be
offered in
chandise. Proceeds—For expansion and working capital.
units consisting of one share and one
warrant. Price—
Office—77 Nassau St., N. Y.
Underwriter—Federmarr,
$10 per unit. Business—A real estate investment trust.
Stonehill & Co., New York.
Proceeds—For
working
capital. >
and

repayment

Busi¬

ness—Design, production and distribution of belts and
related products. Proceeds—For sales promotion, expan¬

—To

be named.

Hunsaker

-•

</' =
" 4 */.
\v
March 30, 1962 filed $1,600,000 of convertible subordi¬
nated debentures due 1977 and 250,000 common shares.
Price
By amendment (max. $6 per common share).
Corp.

—

Business—Construction of homes and apartments
which company

land

has acquired in Southern Calif. Proceeds

Volume

debt

—For

196

Number

6198

The Commercial and Financial Chronicle

Hydro-Swarf -Inc. ■
, %
30, 1962'filed 97,009 common, of which 80,000
will be sold by company and 17,000 by certain stock¬
holders. Price—$5. Business—Manufacture, assembly and
sale of aircraft and missile components on a sub-contract
basis. Proceeds—For debt repayment and working capital.
Office—7050 Valley View St., Buena Park, Calif. Under¬
writer—Raymond Moore & Co., Los Angeles.
I.

Financial

■

—A

St., N. Y. Underwriters—J. J. LeCort Associates,
Harris, Clare & Co., Inc., N. Y.

•

toys and related products. Proceeds

—

ment

and general corporate purposes. Office — 184-10
Jamaica Ave.; Hollis, Long Island, N. Y. Underwriter—

postponed.

—

for

each

held.

Ownership of real estate, teases principally for farming
and grazing.v Proceeds—For, debt repayment, working
capital and other corporate purposes. Office—Southern
Blvd;.j Wcst Palm Beach, Fla.« Underwriter—None. ^ •

("Keg. A">

Broadway
Instron

Plaza, Huntington Station, N.
Investing Co., N. Y.
-

Under¬

Greenshields &

Engineering Corp.

March 26, 1962 filed 120,000 common.

Postponed.

Price—By amend¬

•

ment

(max. $14). Business^—Development and produc¬
tion of equipment for use in testing the physical char¬
acteristics

various

materials.' Proceeds1—For

stockholders.

Office—2500 Washington St.,
Underwriter—None.
' »

selling
Canton, Mass.

Instrument Components, Inc.
June

—

Manufacture' and

distribution

—

$1.

••

—

Qo., Inc., N. Y. Offering—Indefinitely

V?**-,'' *»'

'■

Jamoco Air

Conditioning Corp. (10/29-11/2)
Feb. 28, 1962 ("Reg. A") 4U,000 common. Price — $3.
Business—Design, installation and maintenance of heat¬
ing, plumbing and air conditioning systems. Proceeds—
For inventory, equipment and other corporate purposes.
Office — 954 Jamaica Ave., Brooklyn. N. Y.
Under¬
writer—Martin-Warren Co., Ltd., N. Y. ■/.
;
•

electro¬

mechanical

rotating devices. Proceeds—For debt repay-:
ment, sales promotion and other corporate purposes.
Office—312 Mt. Pleasant Ave., Newark, N. J. Under¬
writer—Gold-Slovin Co.. Inc.. N. Y.

100,003

11, 1962 ("Reg. A") 135,000 common. Price

Business

Ltd.

By amendment (max. $25).
Business—A holding company for a Jamaican Electric
utility. Proceeds—For acquisition of additional stock in
subsidiary^ Office—507 Place D'Armes, Montreal, Canada.
Underwriters- — Stone S"Webster BeSuirities Corn, and

by stockholders. Price

ment, inventory and other corporate purposes. Office—
writer—Price

Jerlee Products

Corp*

✓

•

May 1, 1962 filed 75,000 common. Price—$4.25. Business
—Processing and distribution of vinyl roll plastic fabric
and vinyl tablecloths, and various foam rubber items.
Proceeds—For

equipment, rdw materials, debt repay¬
Office—596-612 Berriman St.,

ment and working capital.

Iniercontinental' Management

Corp. ■
:
July 31, 1962 filed 144,500 common. Price—$7. Business
Operation of bowling centers. Proceeds—For expansion,
working capital and debt repayment. Office—-19 Coun¬
try Club Shopping Center^ Levittown, Pa. Underwriter
—Walnut Securities Corp., Philadelphia.

Brooklyn, N. Y. Underwriter—Weisel, Kleinman & Co.,
-

Inc., Garden City, N. Y. Offering—Imminent,

Industries* Inc.
v:
'Vv'!
Sept. 7, 1962 filed $375,000 of 6%% subord. conv. de¬
bentures due 1972.
Price—At par.
Business—Design,
development and manufacture of electronic equipment.
Proceeds—For debt repayment and working capital. Of¬
International Drug& SurgicalCorp.
March 23, 1962 filed 150,000 class A shares. Price—$4../ fice—Main & Cotton Sts,> Philadelphia. UnderwriterWeil & Co., Washington, D. C.
Business—Importing, licensing, and manufacturing of
Kaiser-Nelson Corp* (11/7)
pharmaceutical and medical instruments, Proceeds—For
Working capital and other corporate purposes. Office—; March 29, 1962 filed 140,000 common, of which 70,000
375 Park Ave., N. Y. Underwriters^-Beymour Blauner
are to be offered by company and 70,000 by stockhold¬
Price—By amendment
(max. $10).
BusinessCo., and. Win. Stix Wasserman & Co., Inc., N. Y.
; • ers.
Reclamation of metaliics from steel slag; mining of sand
International Realty Corp.'
r
1
and gravel; and dismantling and salvage of industrial
April 27, 1962 filed $18,0011,000 df s. f. debentures due
buildings. Proceeds—For new plants, debt repayment
1977r 360,000 -common shares and five year warrants to
and working capital.
Office—6272) Canal RcL Cleve¬
purchase 540,000 common shares to be offered in 180,600
land.
Underwriter—Robert L. Ferman & Co., Inc.,
units, each unit consisting of $100 of debentures, two
Miami. Fla.
common shares
and warrants to purchase, three addu- ♦
Kaltman (D.) & Co.* Inc.
tional shares.
Price—By amendment (max. $110 per
June 28, 1962 filed $1,650,000 6% conv. subord. debens.
unit). Business—Real estate Investment; Proceeds—F6r
debt repayment, construction, and other corporate pur- ; due 1977 being offered for subscription by stockholders
on the basis of $100 of debentures for each 100 shares
poses.
Office—919 N. Michigan Ave., Chicago. Under- ;
held of record Sept. 18, with rights to expire Oct. 15,
writer—Kidder, Peabody &r Co., N. Y. Offering—In¬
1962.
Price — At par. Business—Operation of a whole¬
definitely postponed. /
•
;
:
;
sale drug business. Proceeds—For debt repayment and
International Systems Research Corp. ">
working capital. Office—r425 Park Ave., N. Y. Under¬
Match 30,1962 filed 110,000'Olass A common and9-month
writer—None. ; ,•
warrants to purchase 110,000 class A shares at $4 per
Kaufman Carpet Co.* Inc.
share, to be offered in units, each consisting of one share
March 29, 1962 filed 250,000 common. Price—$5. Bust-*
and one warrant. Price—$4 per unit. Business—Design,
ness—Operation of a chain of retail stores selling carpets
development and manufacture of mechanical, electro¬
and rugs. Proceeds—For expansion, inventory, debt re¬
mechanical and electronic equipment for government
payment and working capital. Office—1800 Boston Rd.,
agencies and the militaiy. Proceeds—For equipment,
Bronx, N. Y. Underwriter—Michael G. Kletz & Co., N. Y,
Jetronic

debt repayment and working capital, Officer-Engineer's
Hill. Plainview. L. I., N. Y, Underwriter—International
Services Corp.,
•Interstate
Match 30,1962

Clifton, N. J'.

50,000 shares 6%

cum. preferred

and four-year common stock purchase warrants to be
offered ill Units consisting of one preferred and one

filed.'1,605,100 shares of beneficial interest.

warrant.

Film

Distributors*- Inc.

(10/29)

Sept* 29, 1961 filed 106,250 common. Price—$4. Business
—Theatrical distribution and co-production of foreign
and domestic

Kavanau Corp.
March 29, 1962 filed

Equity

Price—(max. $10). Business—A- real estate investment
company. Proceeds—For investment. Office—450 Seventh
Ave., N. Y. Underwriter—Van Alstyne* Noel & Co.* N-. Y.
Interworld

feature

films.

Proceeds—For

acquisition,

co-production, dubbing, adaptation and distribution Of-

Proceeds—For expansion. Address—R. D.
North Lebanon Township, Lebanon, Pa. Under¬
writers—Suplee, Yeatman, Mosley Co., Inc. and Wood¬
cock, Moyer, Fricke & French, Inc., Philadelphia. ;
No. 2,

Price—By amendment (max. $101 per unit).

Business—Real

estate

investment.

repayment and working capital;

Proceeds—For

debt

Office—30 E. 42nd St.,
Co., N, Y.

N. Y. Underwriter—Hayden, Stone &

Hay Foods Cdrp*
29, 1961 filed 88,000 class A common shares; of
which 44,000 are to be offered by the company and 44,006
by stockholders. Price—$7. Business—Packing and sole
of fruit Juice products. Proceeds—For general corporate
Dee.

Keystone-Universal Industries Inc.
July 24, 1962 filed 100,000 common. Price—$3.50. Busi¬
ness—Retail sale of carpets. Proceeds — For expansion
and working capital. Office—4042-54 Sawmill Run Blvd.,
Pittsburgh. Underwriter
Pittsburgh.

—

Strathmore

Securities, Inc.,

Kine Camera Co., Inc.

(10/15-19)

March 3$, 1962 filed 215,000 common, of which
shares are to be offered by company and 115,000

(10/15-19)

luo,00u common. Price—$3.
Business—A contract manufacturer of precision products.
Proceeds—For acquisition of land and building, equip¬
30, 1862

count stores.

Nov. 21,

1961 filed 75,000 common. Price—$5. Business
—Importing and distribution of cameras, binoculars and
photographic equipment. Proceeds—For debt repayment
and working capital. Office—889 Broadway, N. Y. Un¬

13,

Jamaica* Public Service

March

Business
machines

1962 filed $750,000 convertible subordinated
debentures due 1977; also 120,000 class A common, of
which 66,666 shares are to be offered by the company
and 53,334 by stockholders* Price—By amendment (max.
$12.50 for common). Business—Operation of a chain of
retail department stores. Proceeds—For debt repayment
and working capital. Office—29 N. W. 10th St., Miami,
Fla. tJnderwriter—Clayton Securities Corp., Boston.

Industry Capital Corp*
> 1 ;
26; 1961 filed 500,000 common. Ptice^$15. Busi¬
ness—A small business investment company. Proceeds—
For general corporate purposes. Office—208 S. La Salle
St., Chicago. Underwriter—A. C. Allyn ■& Co., Chicago.
Note—This registration will foe withdrawn.
Industries, Inc.

Keystone Discount Stores, Inc.
^
May 24, 1962 filed 110,000 common. Price—By amend¬
ment ($5.25).
Business—Operation of three retail dis¬

the production of teaching programs. Proceeds—expansion, new facilities and working capital. Office
—315 Central Park W., N. Y. Underwriter—R. F. Dowd
& Co., Inc., N. Y.
.r/'v.-/

March

Instromech

New York.

For

M Jackson's/Byrons Enterprises Inc.

Dec.

•

St., Cincinnati, Ohio. Underwriter—Kuhn, Loeb & Co.,

lona

and

Business—

Price—$15.

common, of which 205,000
by company and 317,000 by stockhold¬
Price—By amendment (max, $24). Business—Manu¬

facture, design, and distribution of plastic toys. Proceeds
—For general corporate purposes. Office—912 Sycamore

•

Jaap Penraat Associates, Inc.

1962 filed 542,000

to be offered

ers.

Connecticut

3315

Jan. 30, 1962 filed 100,000 common. Price—$3.
—Industrial designing, the design of teaching

four

—

Indefinitely

J Indian Trail Ranch, Inc.
—
Aug.'31", 1962 filed 54,238 common' to be offered for subscription by stockholders on the basis of one new share

Office

Manufacturing Co.
26, 1962 filed 140,000 common, of which 125,000 are
to be offered by the company and 15,000 shares by a
stockholder. Price—By amendment. Business—Manufac¬
ture of household electric appliances and electric motors.
Proceeds—For new products and working capital. Office
—Regent St., Manchester, Conn. Underwriter — S. D.
Fuller & Co., N. Y. Offering—Expected in mid-October.

For debt repay¬

White, Weld & Co., Inc., N. Y. Offering

investment.

Jan.

Toy Corp.
May 1, 1962 filed 490,000 common, of which 250,000 will
be offered by company and 240,000 by stockholders. Price
-r-By amendment (max. $20). Business—Manufacture of

—■

are

—

Ave., N. W., Washington, D. C. Underwriter—None.

Ideal

and

1962

March 30,

$10. Business
real estate investment trust. Proceeds — For con¬

struction

Packaging Associates
filed 165,000 common, of which 100,000
are to be offered by
company and 65,000 by stockholders*
?rice—$4. Business—Design and manufacture of semi¬
rigid vinyl plastic cases and containers for packaging.
Proceeds
For debt repayment, working capital and
other corporate purposes. Office — 947 Newark Ave.,
Elizabeth, N. J. Underwriter—Hardy & Co., N. Y.
April 2,

■J* Kenner Products Co.

Realty Trust
May 31, 1962 filed 200,000 shares. Price

and

Keene

Management Corp.

May 10,1962 filed lOOjOOO common to be offered for sub¬
scription by stockholders on a 2-for-l share basis.
Unsubscribed shares will be offered to the public. Price—To stockholders, $2.50; to the public, $3.50.
Business
—Manager and distributor for Western Industrial Shares,
inc., a mutual fund. Proceeds—For debt repayment and
general corporate purposes. Office—818 17th St., Denver.
Investors

23, 1962 filed 300,000 common. Price—$4. Busi¬
ness—Company plans to furnish equity capital to busi¬
ness
concerns, • make
loans and
asstst in arranging
mergers and corporate financing. Proceeds—For work¬
ing capital and other corporate purposes.v Office—200
W. 57th

Office—241 N. Franklintown Rd., Baltimore.
— Auchincloss,
Parker & Redpath, Wash¬
ington, D. C. Offering—Indefinitely postponed.
Underwriter

Underwriter—None.

Corp.

Aug.

Inc.

Investment

purposes.

Underwriters—General Securities Co., Inc.,
uian & Co., Inc., N. Y.

*■

March

Office—1776 B'way, N. Y.
and S. Kas-

films, and working capital.

and other corporate purposes.
PI., Irwindale, Calif. Underwriter—
Bateman, Eichler & Co., Los Angeles.
^
;
repayment

Office—15855 Edna

,'(■

(1331)

derwriter—Underhill

Securities

Corp., N. Y.

Klngsberry Homes Corp.
April 9, 1962 filed 140,000 shares of capital stock of
which 100,000 will be offered by company and 40,000
by stockholders. Price—By amendment (max. $17.50).
Business—Manufacture of prefabricated homes. Proceeds
—For

plant. Office—1725 S. Gault Ave., Ft. Payne,
- Humphrey
Co., Inc.,
Atlanta, and J. C. Bradford & Co., Nashville. Offering—
Indefinitely postponed.
a new

Ala. Underwriters—The Robinson

Kornhandler

(Lou), Inc.
("Reg. A") 125,000 common. Price—$2.
Business—Manufacture and wholesaling of women's ap¬
parel. Proceeds—For debt repayment, equipment, sales
promotion and working capital.
Office—910 S. Los
Angeles St., Los Angeles. Underwriter—Costello, Russotto & Co., Beverly Hills, Calif. Offering—Imminent.
July 27,

1962

Kraft (John) Sesame Corp.
May 24, 1962 filed $225,000 of 6% conv. subord. deben¬

due 1972, and 150,000 common to be offered in
consisting of a $300 debenture and 200 shares.
Price—$900 per unit. Business—Processing and distri¬
tures,
units

bution

of sesame seed.

Proceeds—For accounts receiv¬

able, inventories, plant expansion and working capital.
Office—2301 N. Main St., Paris, Texas.
Underwriters—
John A. Dawson & Co., and Leason & Co., Inc., Chicago.
Kreedman Realty & Construction Corp.
April 19, 1962 filed $5,000,00(1 of conv. subord. deben¬
tures due 1982 and 200,000 common shares to be offered
in uhits consisting of $25 of debentures and one common
share.
Price—By amendment (max. $27). Business—
Construction and operation of office buildings. Proceeds
—For
debt
repayment.
Office—9350 Wilshire Blvd.*
Beverly Hills, Calif, underwriter—Lee Higglnson Corp.,

New York. Offering—Indefinitely postponed.

Kwik-Kold* Inc.
29, 1962 ("Reg. A") 100,000 common of which
65,000 will be sold for company and 35,000 for stock¬
holders. Price — $3. Business — Manufacture of certain
patented cooling packages. Proceeds—For debt repay¬
ment end working capital. Officer-Jennings Bldg., P. O.
Box 638, Moberly, Mo. Underwriter—John W. Flynn
& Co., Santa Barbara, Calif. Note—This letter will be
March

withdrawn.

•

Lady Baltimore Foods, Inc.
Aug. 23, 1962 ("Reg. A") 75,000 class A common. Price
—$4. Business—Wholesale distribution of groceries and
the manufacture of French dressing and barbecue sauce.
Proceeds—For debt repayment, new products and ex¬
pansion, Office—35 Southwest Blvd., Kansas City, Kan.
Underwriter — Blackford & Co., Inc., Kansas City, Mo.
Offering—Imminent.
Lamlfietics Inc.

(10 8-12)

March 22, 1962 liled 80,000 common. Price—$3.50. Busi¬
ness—Production and sale of gift sets, linens/ place mats,
etc. Proceeds—For equipment, moving expenses, sales

promotion and other corporate purposes. Office — 20
W, 27th St., N. Y. Underwriter—Fabrikant Securities
Corp., N. Y.
Lee-Norse Co.

May 25y 1962 filed 272,000 common. Price—By amend¬
ment (max. $20). Business—Production of a coal min¬
ing machine. Proceeds—For selling stockholders. Office
—751 Lincoln Ave., Charleroi, Pa, Underwriter—Moore.
Leonard & Lynch,

Pittsburgh, Offering

—

Temporarily

postponed,
Lembo Corp.
Dec,

21, 1961 filed 100,000 common. Price—$3.50. Busi¬
steel re-inforced concrete utilities

ness—Manufactures

sanitary structures, fallout shelters and play

sculptures.

Proceeds^-For debt repayment, sales, promotion and
working capital. Office—145 W. 11th St., Huntington
Continued

page 49

The Commercial and Financial Chronicle

(1332)

Continued from page 39

Underwriter—Blank, Lieberman &

Inc.

>.»>■ .v.<

■*,.>■

filed

80,000 common. Price—By amend¬
ment (max. $17.50). Business — Operation of a chain of
clothing and dry goods stores. Proceeds — For selling
stockholders. Office
8908 Ambassador Row, Dallas.;
Underwriter—Kidder, Peabody & Co., N. Y. Offering—
March

19, 1962

>■

Indefinitely postponed.
Lewis

(10/22-26)

April y, 1962 filed $4,000,000 of 5^»% convertible sub¬
ordinated debentures due 1977. Price—At par. Business

—Processing, canning, bottling and selling of fruits and
vegetables. Proceeds—For debt repayment and working
capital. Office—Fresno Ave. & Charter Way, Stockton,
Calif. Underwriter—Van Alstyne, Noel & Co., N. Y.
,
Ann

Lilli

Corp.

March 29, 1962 filed

$750,000 of conv. subord. debentures

1977, also 100,000 common shares to be offered by
stockholders. Price—By amendment. Business—Design,
manufacture and distribution of women's high fashion
due

suits and coats. Proceeds—Net proceeds from the
sale

ture

will

added

the

general

funds

deben¬
of the

portion of which may be used to retire shortSan Francisco. Under¬
writers—Sutro & Co., San Francisco and F. S. Smithers
& Co., New York.
company, a

term loans. Office—2701 16th St.,

•

Financial

Livestock

Corp.

(10/8-11)

filed 130,000 common. Price—$10. Business
—An insurance holding company whose subsidiaries in¬
sure the lives of all types of animals. Proceeds—To form
new subsidiaries. Office—26 Piatt St., N. Y. Underwriter

Feb; 23, 1962

—

'■

Shearson, Hammill & Co., N. Y.

■

11, 1962

("Reg. A") 85,000 common. Price

—

$3.50

for sale
to furniture manufacturers. Proceeds—For debt repay¬
Business—Manufacture

furniture

hardware

inventories nad plant expansion. Office—
3006 Boarman Ave., Baltimore. Underwriter—R & D
Investors Corp., Port Washington, N. Y.
ment,

steel

Logos Options,

Ltd.

April 11, 1962 filed 250,000 capital shares. Price — By
amendment (max. $10). Business—A diversified closedend investment company. Proceeds—For investment. Of¬
fice—26 Broadway, N Y. Underwriter—Filor. Bullard &

Smyth, N. Y. Note—This company formerly was named
Logos Financial, Ltd.
•

Lordhill Corp.

^
filed 63,000 common. Price—$5. Business
—Company provides optometric services and dispenses
optical items. Proceeds—For expansion, a laboratory and
working capital. Office—130 W. 57th St., N. Y. Under¬
writers—J. R. Williston & Beane and Doft & Co., Inc.,
March 30, 1962

N. Y. Note—This

registration

was

withdrawn.

Films, Inc.
/fif'
Aug. 31, 1961 filed 125,000 common.
Lunar

Price—$5.75. Busi¬
Proceeds—For

ness—The production of television films.

production and working capital. Office—
543 Madison Ave., N. Y. Underwriter—To be named.
Note—This firm formerly was named Lunar Enter¬
filming and

prises,
•

Inc.

Offering—Postponed.

(10/1-5)
June 29, 1962 filed $600,000 of 6V2% s. f. debentures due
1977 and 120,000 common to be offered in units consist¬
ing of $500 of debentures and 100 common. Price—By
amendment (max. $720 per unit).
Business—Manufac¬
ture
of light gauge vinyl plastic film and sheeting.
Proceeds—For acquisition of predecessor's business and
working capital. Office—40 E. 34th St., N. Y. Under¬
writer—P. W. Brooks & Co., Inc., N. Y.
Lyntex Corp.

Mac-Allan

Co., Inc.
of which
and 65,130

65,130 are to be offered by the company
by stockholders. Price—$5. Business—Sale and distribu¬
tion of costume jewelry, ladies' handbags, and accesso¬
ries. Proceeds
For working capital. Office — 1650
Broadway, Kansas City. Mo. Underwriter—George K.
Baum & Co., Kansas City. Offering—Indefinitely post¬
—

-.'J

—Production of educational and recreational devices and
games. Proceeds—For general corporate purposes. Office
—130 E. 40th St., N. Y. Underwriter—To be named.
Mail

Assembly Service, Inc.
April 27, 1962 filed 100,000 common. Price—$2.25. Busi¬
ness—Assembling of packages for shipment to post of¬
fices. Proceeds—For general corporate pui poses. Office
—145 Ave. of the Americas, N. Y. Underwriter—Globus,
Inc., N. Y.

July 31, 1962 filed 29,000 common. Price—By amend¬
ment (max. $4). Business—Door to door sale of merchan¬
dise and collection of the accounts receivable.
a

selling stockholder.
Underwriter—None.

Mammoth

Mart

Office—1514

Proceeds—

Arapahoe

St.,

Inc.

April 5, 1962 filed 200,000 common, of which 100,000 are
to be sold by company and 100,000 by stockholders. Price
—By amendment (max. $15). Business—Operation of
self-service discount department stores. Proceeds — For
debt repayment and working capital. Office—106 Main

St.,

Brockton,

Mass.

New York

Proceeds—For general corporate purposes. Office—1700
K St., N. W., Washington, D. C. Underwriter—Eisele &

King,

for each two

shares held.

Price—By amendment (max.
—
A closed-end management investment
Proceeds — For general corporate purposes.

$7). Business
company.

Office
2615 First National Bank Bldg., Minneapolis.
Underwriter—None.
—

Midwestern

investment.

Office—990

Fifth

Ave.

life

reserve

insurance

concern.
Proceeds—To purchase
subsidiary and for working capital. Office
—75 Public Sq., Cleveland.
Underwriters—Westheimer
& Co., Cincinnati, and Hartzmark &
Co., Inc., Cleveland*

shares of the

Monarch Plastics Corp.

May 28,

1962

("Reg. A")

140,000 common. Price—$2.
of plastic letters, em¬

Business—Manufacture and sale
bossed sign

faces, quantity signs and boat windshields.
Proceeds—For purchase of land and building, moving
expenses, equipment and working capital. Office—5606

Press, Inc.

May 29, 1962 filed 60,000

common. Price—$3.75. Busi¬
ness—Graphic design and printing. Proceeds—For pub¬
lishing a sales catalogue, developing a national sales
staff and working capital.
Office—812 Greenwich St.,

N. Y. Underwriter—To be named.

Corp.

Aug. 23, 1962 filed 180,000 common and 15-year war¬
rants to purchase 36,000 common to be offered in units
consisting of one share and one-fifth warrant. Price—
$12 per unit. Business—A holding company for a legal

Court, San Rafael, Calif. Underwriter—Dean Witter &
Co., San Francisco. Offering—Indefinitely postponed.

Stuebner

Sauve

Airline

Rd.,

Houston.

Underwriter—McDonnell

Co.,

Underwriter—W.

Co., N. Y.

Montebello Liquors, Inc.
April 5, 1962 filed 160,000 common. Price—By amend¬
ment (max. $5). Business—Blending, bottling and mar¬
keting of alcoholic beverages. Proceeds—For equipment,
inventories, advertising and working capital. Office—
Bank St. & Central Ave., Baltimore. Underwriters—
Street & Co., and Morris Cohon & Co., N. Y, Offering—
Temporarily postponed.

Offering—Indefinitely

postponed.

Masters, Inc.
March 22, 1962 filed $1,500,000 of 6% conv. subord. de¬
bentures due
1972; also 150,000 common shares, of
which 80,000 will be offered
the company and 70,000
a

Offering—Expected

/'Midwest Technical Development Corp.
26, 1962 filed 561,500 common to be offered for
subscription by stockholders on the basis of one share

Marin County Financial Corp.
May 2, 1962 filed 102,050 capital shares, of which 27,790
are to be offered by company and 74,260 by stockhold¬
ers.
Price—By amendment (max. $18).
Business—A
holding company for a savings and loan association.

October.

Feb.

Maremont Corp.

Libaire, Stout & Co., N.

in late

Sept. 10, 1962 filed 120,000 common. Price—By amend¬
ment (Max. $50). Business—Manufacture of automotive
replacement parts. Proceeds—To repay bank loans. Of¬
fice—168 N. Michigan Ave., Chicago.
Underwriters—
Kuhn, Loeb & Co., Inc., N. Y., and Straus, Blosser &
McDowell, Chicago.

Marshall

■-v

Metropolitan Realty Trust
Dec. 20, 1961 filed 1,000,000 shares of beneficial interest.
Price—$6.50. Business—A real estate investment trust.

Ave., N. W.,J Washington, D. C. Underwriter—Manna
Financial Planning Corp. (same address)^

•

re¬

capital. Office—5422
Underwriter—To be

working
Chase, Md.

•

Massachusetts

Office—1500

investment.

unit. Business—Financing of

per

Proceeds—For

Ave., Chevy

named.

Co., Inc.

Aug. 30, 1962 filed 460,000 shares of beneficial interest.
Price—$11. Business—A real estate investment trust.,
Proceeds—For

sales.

Western

one

stockholder. The securities will be offered in units
$100 debenture and 10 common shares, except

•

Moskatel's,

Inc.

j♦

».

■?

that up to $700,000 of debentures and 70,000 shares may
be offered separately.
Price—For debentures, at par;
for common, $10.
Business—Operation of discount de¬

May 28, 1962 filed 104,000 capital shares, of which 20,000

partment stores selling a wide variety of merchandise.
Proceeds—For
expansion.
Office—135-21
38th
Ave.,
Flushing, N. Y. Underwriters—Sterling, Grace & Co.,
and Norton, Fox & Co., Inc., N. Y. Offering—Indefin¬
itely postponed.
n
!
*
-

Sale of artificial flowers and florists' supplies. Proceeds
—For payment of income taxes.

are

(John W.)

Corp.

(10/8-11)

Inc.

May 28, 1962 filed 150,000 shares of 8% convertible cu¬
mulative preferred stock. Price—$3. Business—Design
other

miniature products. Proceeds—For debt repayment, re¬
search and development and working capital. Office—
12

Rochelle

Ave., Rochelle Park, N. J.

Underwriter—

Charles Plohn & Co., New York.
Medical

Industries

open-end.

Proceeds—For

plans

investment

to
the

•

etc.

ness.

Medical Video Corp.

13, 1961 filed 250,000 common.

ness—Manufacture
Proceeds—For

general

medical

corporate

Price—$10.

electronic

Busi¬

O f f i c e—
Studio City, Calif. Underwriter—Financial Equity Corp.,
Los Angeles.
Memorial

Services, Inc.
April 30, 1962 filed 1,200,000 common. Price—$1. Busi¬
ness—Company plans to acquire and operate funeral
homes.

Proceeds—For

acquisitions, debt repayment and
E. Sixth Ave., Helena,
Mont. Underwriter—Memorial Securities, Inc., Helena.
working

capital.

Office—315

Mercantile Stores Co.,

and

plans to engage in the music publishing busi¬
debt repayment, public relations,
acquisition of musical properties, and working capital.
Office—545 Fifth Ave., N. Y. Underwriter—Associated
Proceeds—For

Securities

Co., 545 Fifth Ave., N. Y.

National

equipment.

purposes.)

Royalty Corp.
July 27, 1962 filed 150,000 common. Price—$1. Business
—Company acts as representative of artists, musicians,

—677

Nov.

Sponsor—Ira Haupt & Co., Ill Broadway^

Music

medical

industry and capital growth situations. Office
Lafayette St., Denver. Underwriter—Medical As¬
sociates, Inc., Denver.

See Bank
•

Bank of

Leumi

Israel, Ltd.

Le-Israel B.

Aug. 29,
ment.

Blank Book Co.

1962 filed

160,000

common.

Business—Production

National

Directories,

Inc.

March 29, 1962 ("Reg. A")

100,000

phia.

New York. Note—This letter

St., Wilmington, Del.
—Clark, Dodge & Co., Inc., N. Y.

Underwriter

Mercury Books, Inc.
14, 1962 filed 55,000 common. Price—$4.50. Busi¬
ness—Publishing of newly written popular biographies.
Proceeds—For
working capital.
Office—1512 Walnut
St., Philadelphia. Underwriter—To be named. Offering
—Temporarily postponed.
Feb.

•

Met Food

Corp.

(10/8-11)

March 30, 1962 filed $1,500,000 of convertible subordi¬
nated debentures due Sept. 1, 1977.
Price—By amend¬
ment.

common.

Price—$2.75.

fied

May 24, 1962 filed 169,302 common. Price—By amend¬
(max. $26). Business—Operation of a chain of
department stores. Proceeds—For selling stockholders.
10th

(10/8-11), '
Price—By amend¬
blank books, loose leaf
devices, forms etc. Proceeds—For selling stockholders.
Office—Water St., Holyoke, Mass. Underwriter—Blyth
& Co., Inc., N. Y.
National

Business—Compilation and publication of regional classi¬

Inc.

ment

—

investment.

Business

Municipal Investment Trust Fund, Series B
April 28, 1961 filed $12,750,000 (12,500 units) of interests.
Price
To be supplied by amendment. Business — The
fund will invest in tax-exempt bonds of states,
counties,
municipalities and territories of the U. S. Proceeds—For
New York.

Fund, Inc.

Oct. 23, 1961 fried 25,000 common. Price—$10.
—A closed-end
investment
company
which
become

Multronics, Inc.
Jam 5, 1962 ("Reg. A") 100,000 capital shares. Price—$3.
Business—Production of electronic parts and components
and the furnishing of consulting services in the radioengineering field. Proceeds—For debt repayment, equip¬
ment, and working capital. Office—2000 P St., N. W..
Washington, D. C. Underwriter — Switzer & Co., Inc.i
Silver Spring, Md Offering—Temporarily postponed.

253,875 common. Price—By amend¬
(max. $15). Business—Contract stevedoring and
related operations.
Proceeds—For selling stockholders.
Office—39 Broadway, N. Y. Underwriter—Bear, Stearns
& Co., New York.

and

withdrawn.

was

metal bellows

and 84,000 by stock¬
(max. $8.50). Business—

company

Qfficc—738 S. Wall St.,

June 28, 1962 filed

and manufacture of miniature

the

Los Angeles, Calif. Underwriter—Thomas Jay, Winston
& Co., Inc., Beverly Hills, Calif. Note—This registration

ment

Mechmetal-Tronics

offered by

holders. Price—By amendment

McGrath

to be

Office—100

Majestic Utilities Corp.

For

tail

Manna Real Estate Investment Trust

Magellan Sounds Corp.
Feb. 28, 1962 filed 60,000 common (with attached oneyear class A warrants to purchase 60,000 common shares
at $4 per share and two-year class B warrants to pur¬
chase 60,000 shares at $4.50 per share) to be offered in
units (each consisting of one share, one class A warrant
and one class B warrant). Price—$4 per unit. Business

Denver.

shares. Price—$150

which 58,000 are
by stockholders.
Price—$3.50.
Business—Manufacture,
packaging
and
sale of various proprietary drug products. Proceeds—
For equipment, new products, debt repayment and work¬
ing capital.
Office—156 Tillary St., Brooklyn, N. Y.
Underwriter—Dana Securities Co., Inc., N. Y.

Feb. 23, 1962 filed 130,260 of class A common,

poned.

/Metropolitan Acceptance Corp.
Oct. 2, 1961 filed $300,000 of 6% subordinated convert¬
ibles due 1967 and 60,000 common shares to be offered
in units consisting of $100 of debentures and 20 common

Manhattan Drug

purposes. Office—345 Underhill Blvd., Syosset,
Underwriter—Brand, Grumet & Siegel, Inc., N. Y.

N. Y.

■

Proceeds—For

Lockfast Mfg. Co.
Jan.

None.

Thursday, September 27, 1962

corporate

March 29, 1962 filed 72,000 common, of
to be offered by company and 14,000

>■

Foods, Inc.

(Tillie)

Management Investment Corp.
Aug. 29, 1962 filed 2,000 common (with attached war¬
rants). Price—$500. Business—Company plans to fur¬
nish equity capital to firms in the atomic, space and
missile fields, and provide advisory and management
counseling services on a fee basis.
Proceeds—For re¬
payment of loans, and general corporate purposes. Office
—130
Fulton
Federal Bldg.,C Atlanta.
Underwriter—

Business—Distribution of food and related prod¬

ucts
to
supermarkets
and
other
retail
stores
in
the New York Metropolitan area. Proceeds—For
general

telephone directories. Proceeds—For general cor¬
porate purposes. Office—3306 Lancaster Ave., Philadel¬

Underwriter—Crichton,
•,

Cherashore,

Cundy, Inc.,

will be withdrawn.
1

National Equipment & Plastics Corp.

Sept. 28, 1961 filed 105,000 common. Price—$5. Business
—Operation of a cleaning and pressing plant and affili¬
ated

stores.

Proceeds—For

debt repayment, store ex¬
capital. Address — Portage, Pa.
Underwriter—Cortlandt Investing Corp., N. Y. Offering
—Indefinitely postponed.

pansion

and working

National Security Life Insurance Co.
March

23,

are

holders.

1962

filed

100,000 common, of which 80,000
by company and 20,000 by stock¬
Price—$17.50. Business—A life, accident and
offered

health

insurance

Office

—

130

company.

Alvarado,

Proceeds—For

investment.

Albuquerque,

Volume

196

Number 6198

The Commercial and Financial Chronicle

Underwriter—To be named. Note—The SEC has
tioned

the

and

accuracy

statement,

adequacy

of this

Nuveen

Tax-Exempt Bond Fund, Series 3
17, 1961 filed $15,300,000 of units representing frac¬
tional interests in the Fund. Price
By amendment.
Business—The Fund will invest in interest bearing obli¬
gations of states, counties and municipalities of the
U. S., and political subdivisions thereof which are be¬
lieved to be exempted from Federal income taxes. Pro¬

ques¬

Oct.

registration

v.;

—

National Semiconductor
Corp.
May 11, 1961 filed 75,000 shares of capital stock.
Price
—To be supplied by amendment. Business—The
design,
development, manufacture and sale of quality transistors
for military and industrial use.
Proceeds
For new

ceeds—For

—

Office—Mallory

purposes.

Plaza

Bldg., Dan-

Oct.

1972.

Price—At par.

motion

expenses

17,

Price—By amendment.
interest-bearing obli¬
gations of states, counties, and municipalities of the U. S.,
Business—The Fund will invest in

conv.

subord. deben¬

and

Business—Production of
Proceeds—For production and distri¬

pictures.

bution

Tax-Exempt Bond Fund, Series 4
1961 filed $15,000,000 of units representing

fractional interests in the Fund.

National

tures due

political

Nuveen &

National Uni-Pac, Inc.
July 31, 1962 filed 85,000

thereof

which

are

believed

Proceeds—

Dec.

•

National

Union

Life

Insurance

Co.

1962.

Price—$15. Business

allied

classes

burgh.

—

insurance.

porate purposes.

Office

•

the

Oct.

record

8,
Company writes life and

Proceeds—For

general

cor¬

University Place, Pitts¬
Offering—Expected in late

Nebraska

Consolidated

Mills

City,

Outlet

Mining Co., Inc.
28, 1962 filed 900,000 common. Price—$1. Business
—Mining. Proceeds—For equipment and working capi-;'
Feb.

Co.

Sept. 17, 1962 filed $3,000,000 of 63/4% subord. s. f. de¬
bentures, series A, due 1977. Price—$1,000. Business—

tal.

Office—500 Kiewit Plaza, Omaha.
Underwriter—First Nebraska Securities Corp., Lincoln.

Island Mines Ltd.

Underwriter—Francis

Oct. 13, 1961 filed 475,000
common, of which 400,000 are
to be offered by the
company and

75,000 by

holder.

Price—50c.

Proceeds —For

Norda

Essential

20,

Oil

Chemical

—70

Co.,

Inc.

260,000 class A shares. Price—By
(max. $15). Business—Manufacture, process¬
distribution of natural and synthetic essential
to food and

Corp., Ltd.
1962 filed 375,000 capital shares, of which
100,000 are to be offered by company and 275,000 by
stockholders. Price—By amendment (max. $6). Busi¬
ness—Acquisition and development of oil and natural
29,

Proceeds—For

drilling

Nortex Oil &

April 27,
bentures

due

1977.

conv.

subord de¬

Price—By amendment.

Production of crude oil and natural
gas.

repayment, working capital and other corporate
Office—1900 Life Bldg., Dallas. Underwriter—
& Co., N. Y.

North Atlantic Life Insurance Co. of America

Aug. 31, 1962 filed 600,000 common to be offered for
subscription by stockholders on the basis of two new
for

each

common

Price—$3.50.
health

fice—163

record

Proceeds—For capital funds.

Blvd.,

Mineola, L. I., N.

writer—None.

Business—Acquisition of
property.

Of¬

Under¬
v: V

Northwest Securities
Investors, Inc.
June 25, 1962 ("Reg. A") 80,000 common.
estate

Aug. 27,

Business—Writing of life, accident

insurance.

Mineola

share held

second-trust

Proceeds^—For

Price—$3.75.

notes

secured

general

corporate

Office—922 You St., N. W., Washington, D. C.
Underwriter—Clarence E. Shaw & Co.,

purposes.

Washington, D.C.

Nuclear Science &

Engineering Corp.
March 29, 1962 filed 100,000 common.
Price—By amend¬
(max. $15).

Business—Research and development
using radioactive tracers; precision radio¬
activity measurement; production of radioactive isotopes
and the furnishing of consulting and radiation measure¬
contracts

ment

services. Proceeds—For
equipment, debt -repay¬
ment, expansion and working capital. Address—P. O.
Box 10901, Pittsburgh.
Underwriter—Johnston, Lemon &
Co., Washington, D. C.

Underwriter—

Laboratories,

Office

—For

debt

;

Office—19

Business—

Carreau

St., Freeport, L. I., N. Y.
Inc.

—

2301

Radio

Kordan

repayment, inventory and working capital.
St., Lynbrook, N. Y. Underwriter—
Co., Inc., N. Y.

Co., Inc., N. Y.
Perma-Bilt

Permeator

18,

1962

Inc.

Offering—Temporarily postponed.

Corp.
filed 300,000

Inc.

restaurants

common

be offered

for

„

Corp.
filed

Sacramento.

Proceeds—For

•

Plantation

Chocolate

Co.

(10/1-5)
75,000 common.

July 20, 1962 ("Reg. A")
Business—Manufacture of

confections.

Price—$4.

Proceeds—For

debt

repayment. Office—3150 Janney St., Philadelphia.
Underwriter—S. Schramm & Co., Inc., N. Y.

Playboy Clubs International, Inc.
May 28, 1962 filed 270,000 common. Price—By amend¬
ment. (max. $7).
Business—Company is engaged in the
ownership and franchising of Playboy Clubs. Proceeds—
For debt repayment and general
corporate purposes. Of¬
E. Ohio St., Chicago. Underwriter—Divine 8*

fice—232

Polequity Corp.
Aug. 29, 1962 ("Reg.

A")

60,000

common.

Business—Company through its subsidiaries

Price—$5.

in
health, and group and
disability benefits insurance; trading in over-the-counter
market; underwriting of new security issues and sale
the

sale

life,

accident

engages

and

of mutual funds.

Proceeds—For expansion, advertising,
Office—150 Broadway, N. Y. Un¬
derwriter—J. B. Coburn Associates, Inc., N, Y.

and

working capital.

Potomac Real Estate Investment Trust

July 6, 1962 filed 1,000,000 shares of beneficial interest.
Price—By amendment (max. $5). Business—A real estate
investment trust.

Proceeds—For investment. Office—880
Bonifant St., Silver Spring, Md. Underwriter—None
•

• Poulsen Insurance Co. of America
(10/15-3.9)
Aug. 27, 1962 filed 100,000 common. Price—By amend¬
ment (max. $10). Business—Writing of group and fran¬
chise forms of accident, sickness and life insurance in

the Midwest.

Proceeds—For debt repayment and expan¬

sion.

Office—Executive Plaza, Park Ridge, 111. Under¬
writer—A. C. Allyn & Co., Chicago. Offering—Expected
in

October.

sale in

Note—Thi^( stock will not be offered for

New

York

State.

r"'

Prescott-Lancaster Corp.
v
March 30, 1962 filed 150,000 common. Price—$5. Business
—Real estate. Proceeds—For purchase of mortgages, and

working capital. Office—18 Lancaster Rd., Union, N. J.
Underwriter—Jacey Securities Co., N. Y.
•
Prosperity Cleaners & Laundries, Inc.
May 15, 1962 filed 100,000 common. Price ^ By amend¬
ment (max. $5.50). Business—Operation of a chain of
dry-cleaning and laundry stores. Proceeds—For selling

stockholders.

Office
48-12 25th St., Astoria, N. Y.
Underwriter—Edwards & Hanly, Hempstead, L. I., N. Y.
Offering—Expected in mid-October.
—

Publishers Co., Inc.
Aug. 29, 1962 filed $3,500,000 of 6% subord conv. deben¬
tures due 1977 to be offered by the company and 25,000
outstanding common shares to be sold by stockholders.

Price—For

debentures, par; for stock—by
$10),
Business—Book
publishing.

(max.

use

amendment
Proceeds—

its proceeds for the purchase of two
redeem outstanding 6% notes: for

firms;

working

capital,

and other corporate purposes. Office
Ave., Washington, D. C.
Under¬
Co., Inc., Philadelphia.

Connecticut

—1106

writer—Roth

Putnam Management Co., Inc.
(10/8-12)
Aug. 22, 1962 filed 150,000 common (non-voting). Price
—By amendment (max. $14). Business—An investment

adviser

and

distributor of

stockholders.

funds.

mutual

Proceeds—For

Congress

St., Boston.
Underwriters—Paine, Webber, Jackson & Curtis, Bos¬
ton, and Kidder, Peabody & Co., Inc., N. Y.
•

E. D.

June

Corp.

Office—60

(10/22-26)

29, 1962 filed 125,000

common, of
be offered for the company and 75,000

which 50,000 will
for certain stock¬

holders. Price—By amendment (max. $6).

Business—En¬

gaged in manufacturing, engineering and research under
Department contracts; also manufactures ball
point pens, points, mechanical pencils and desk sets.

Proceeds—For equipment and working capital. Office—
Little Falls, Passaic County, N. J. Underwriter—Meade
&

Co., Inc., N. Y.
RF

Interonics, Inc.

30,

1961 filed 40,000
radio

common.

Price—$5. Businesa

interference filters
Proceeds—For equipment, working cap¬
Office—15 Neil Court,
Oceanside, N. Y. Underwriter—Arnold Malkan & Co.,
of

frequency

and capacitors.

ital and other corporate purposes.
NT.
•

■

Real

Properties Corp. of America
April 27, 19o2 filed 300,U00 class A shares.

Price—By

Business—Company owns cer¬
estate, general insurance agency and a mort¬
gage servicing company. Proceeds—For debt repayment.
Office —745
Fifth Ave., N. Y. Underwriter — Stanley
Heller & Co., N. Y. Note—This registration will be with¬

amendment

(max.

$16).

tain real

Office—445 Park Ave., N. Y.
Underwriters—Irving Weis & Co., and Godfrey, Hamil¬
ton. Taylor & Co., Inc.. N. Y.

Petro-Capital
28,
1962

six

—Manufacture

corporate purposes.

March

Oct.

subscription
by stockholders
of National
Petroleum
Corp. Ltd., parent, on the basis of one( share for each
15 National shares held. '4hfice^-i$5.- Business—Manufac¬
ture, use and sale of a patented tool, "Permeator," used
in completion of oil and gas 'wells.
Proceeds—For gen¬
eral

tion

expansion, debt repayment and working capital. Office
—1626 J St., Sacramento.
Underwriter—Stewart. Eubanks, Myerson & Co., San Francisco. Offering—Tem¬
porarily postponed.7.'.;';/■.':

Defense

May 28, 1962 filed 230,000 common. Price—By amend¬
ment (max. $8). Business—Merchandising, sale and con¬
struction of homes. Proceeds—For acquisition and devel¬
opment of land, and other corporate purposes. Office—
319 MacArthur Blvd., San Leandro, Calif. Underwriter—
Robert A. Martin Associates, Inc., N. Y. Offering—Ex¬
pected in late Fall.
May

Restaurants, Inc.
Dec. 21, 1961 filed 125,000 common, of which 75,000 are
to be offered by the
company and 50,000 by a selling
stockholder.
Price—By amendment. Business—Opera¬

Underwriter—Mortimer B. Burnside

Enterprises,

Pro¬

purposes.

Pioneer

selling

Corp.

Proceeds—For payment of income taxes and loans and
for working capital. Office—Woodbridge-Carteret Road,
&

company.

Office—6130
Underwriter—McDonnell & Co.,

Lane, Dallas.

Company will

Ave., Philadelphia.
Co., Inc., N. Y.

Pellegrino Aggregate Technico,

•

investment

corporate

New York.

printing

Wilbur

Reading, N. J.

business

general

Pennsylvania

Aug. 10, 1961 filed 130,000 class A common shares. Price
—$5. Business—The manufacture of building materials.

Port

Sherry

Malkan

22, 1962 filed 120,000 common, of which 100,000
are to be offered by the company and 20,000 by stock¬
holders. Price — $4. Business — Distribution of electric
parts and components to industrial customers. Proceeds

Proceeds—For

purposes.

Price—$10.

March

Gas Corp.

1962 filed $5,000,000 of 6%

Main

Peerless

and

expenses

working capital. Office — 5455 Wilshire Blvd., Los An¬
geles.
Underwriter—Gregory-Massari,
Inc.,
Beverly
Hills, Calif.

Paul, Harris Stores, Inc.
April 2, 1962 ("Reg. A") 26,000 class A common. Price
—$7.50. Business—Operation of wearing apparel stores.
Proceeds—For equipment and working capital. Office—
2920 N. Tibbs, Indianapolis. Underwriters—Kiser, Cohn
& Shumaker, Indianapolis and Cruttenden. Podesta &
Miller, Chicago/ Offering—Indefinitely postponed.

Nordon

properties.

be named.

Underwriter—Arnold

pected in late October.

ment

12, 1962 filed 400,000. class A stock.

poses.

—

real

Dec. 6, 1961 filed 160,000 common. Price—$5. Business
—Manufacture of drugs and pharmaceuticals.
Proceeds
—For an acquisition, research and other corporate
pur¬

drug industries.
Proceeds
For debt
repayment, working capital and
other corporate purposes. Office—601 W. 2fit.h St.. N Y.
Underwriter—S. D. Fuller & Co., N. Y. Offering—Ex¬

and

real estate holding and development comProceeds—For general corporate purposes. Office

Parkway

1962 filed

ing and
oils, flavor, essences, etc.,

1962.

Business—A
pany.

amendment

PanAm Realty & Development Corp.
March

writer—-Robbins. Clark & Co., Inc., N. Y.

debt

Co., N«>Y.

York

Testing Laboratories, Inc.
Price—$5. Business—
Analyzing and testing of electronic, chemical and other
materials.
Proceeds—For plant relocation,
equipment,
and working capital. Office—47 West
St., N. Y. Under¬

gas

repayment, equipment, and Other
Office—39 Broadway, N. Y. Under¬

writer—To be named.

Jan. 29, 1962 filed 50,000 common.

March

Pont

debt

corporate purposes.

A. C. MacPherson & Co., Toronto.

Marcn

Beryllium Corp.
Feb. 28, 1962 filed 100,000 common. Price—$5. Business
—Company plans to mine for beryl ore in Argentina.

Business—Exploration,
develop¬
mining. Proceeds—General corporate purposes.
Office—90 Industry St., Toronto, Canada. Underwriter—

Pan American

stock¬

ment and

New

Underwriter—None.

Paper Industries, Inc. (10/22-26)
March 30, 1962 filed 150,000 class A common. Price—By
amendment (max. $13).
Business—Manufacture of en¬
velopes, packaging materials of various kinds, wrapping
paper, stationery,
and school supplies. » Proceeds—For
selling stockholders. Office—198 W. Alameda, Denver.

accounts receivable.

New Campbell

Address—Creede, Colo.

Pak-Well

Manufacture of flour, animal feed, and other consumer
and agricultural products.
Proceeds—For debt repay¬
ment and the financing of increased inventories and

Business—A small
ceeds—For

1 41

Fishman, Inc., Chicago.

(10/8-11)

(J. Herbert) Enterprises, Inc.
May 1, 1962 filed 285,000 common. Price—$10.50. Business—Company's subsidiaries manufacture cartridge tape
recorders and programs therefor and men's and boys'
dress trousers. Proceeds—For debt repayment, adver¬
tising and working capital.
Address—Opelika, Ala.
Underwriter—None.

Sept. 7, 1962 filed 180,000 class A common.
Price—$5.
Business-—Production of natural gas and oil. Proceeds
—For drilling expenses, working capital and other cor¬

Orbit Stores, Inc.

Orr

Natural Gas & Oil
Producing Co.

porate purposes. Office—-Tekbil Bldg;, Oklahoma
Underwriter—Peter Morgan & Co., N. Y.

Underwriters—Stone, Ackerman & Co., Inc., and

May 28, 1962 filed lU0,Uuu common. Price—By amend¬
ment (max. $6).
Business—Operation of two discount
type department stores. Proceeds—For equipment, in¬
ventory, expansion and working capital.
Office—725
William
T.
Morrissey Blvd.. Boston.
UnderwriterNorton, Fox & Co., Inc., N. Y.

139

—

Underwriter—None.

October.

Pittsburgh,

Heritage Equity Corp., N. Y.

Pittsburgh
Sept. 10, 1962 filed 100,000 capital shares, to be offered
for subscription by stockholders of the
company's parent,
National Union Fire Insurance Co. of
basis of one share for each 8 held

Office—Chicago, 111. Sponsor—John
Co., 135 So. La Salle St., Chicago.

Optec, Inc. (11/19-23)
26, 1961 filed 160,000 common. Price—$3. Business
—Research, development and fabrication of materials
used in optical electronics.
Proceeds—For equipment
and working capital,
Office—246 Main St., Chatham,

Price—By amend¬
(max. $4).
Business—Company plans to sell or
lease coin operated vending machines.
Proceeds—For
debt repayment, equipment and
working capital. Office
—15 Peachtree St., Atlanta.
Underwriter—Drourr, Lampert & Co., Inc., N. Y.
common.

ment

■

subdivisions

to be exempted from Federal Income taxes.
For
investment.

and

working capital.
Office—1270
Ave. of the Americas, N. Y. Underwriter—None,

■

Office—Chicago, 111. Sponsor—
Co., 135 So. La Salle St., Chicago.

Nuveen

bury, Conn. Underwriters—Lee Higginson Corp., New
York., and Piper, Jaffray & Hopwood, Minneapolis.
Telepix, Inc.
July 30, 1962 filed $150,000 of 6V2 %

investment.

John Nuveen &

equipment, plant expansion, working capital, and other
corporate

(1833)

556,700

common.

Price—$11.

drawn and then refiled.
Red-O-Lier

Corp.

Aug. 27, 1962 filed 100,000 class A common. Price—$3.25.
Business—Distribution of electrical supplies and equip¬
ment

commercial

finance

additional

and

industrial

inventories

users.

and

Proceeds—
receiv-

accounts

Continued

page

:■

The Commercial and Financial Chronicle

(1334)

Continued from page 41

' •>77

Schaevitz

■

Engineering

ables..

Courtland Ave., N. Y. Underwriter—

Office—577

Crosse & Co.,

13, 1962 filed 150,000 common, of which 100,000'
are
to be offered by company and 50,000 by a selling
•
stockholder. Price—By amendment (max. $10). Business
—Design and manufacture of measuring, indicating,recording, testing and controlling devices used in air-/

Inc., N. Y.

Regulators, Inc.
Jan. 2V1962 tiled 75,000 common, of which 50,000 are
to be offered by the company and 25,000 by Electronic
Specialty Co., parent. Price—$5, Business—Design and
manufacture of regulating and control devices used in
and

electric

the

fields.

electronic

Proceeds—For

craft

Proceeds — For expansion.
130, Pennsauken, N. J. Underwriter—Bear, Stearns & Co., N. Y/77'7;7/ ///'/Z

Address

debt

repayment and working / capital, Office—455 W, Main
St„ Wyckoff. N. J. Underwriter—Myron A Lomasney A
Co., N. Y. Note—This registration will be withdrawn

•

Business

securities

—

60,000

237

W.- 51st

St., N.

broker-dealer.;

Proceeds

purposes.

For

—

June

(L.

1962

Offering—Indefinitely postponed.
:

L.)

Enterprises,

Inc.

reproduction

equipment

and

Proceeds—For purchase of a building,
debt repayment, reserves and other corporate
purposes.
Office—L451 N. Bayshore Dr., Miami. Underwriter—None.

for

Security Aluminum Corp./(10/15-19) ■-"** ' 26, 1962 filed 200,000 common. Price—By amend¬
ment. Business—Manufacture of alumnium sliding win- r
dows and doors; Proceeds—For equipment,
moving ex¬
penses and working capital. Office-503 E. Pine Ave./
Uompton, Calif. Underwriter—Vickers, MacPherson &
Warwick, Inc., N, Y.
/• - -

con¬
con¬

the

electronics,^ guided mffssile
Proceeds—For debt "repayment

aircraft-industries.

Security International Corp. '
July 27, 1962 filed 548,000 common. Price—$2.50. Busi¬
ness—Company plans to become a holding company for

other corporate purposes., Office—10929 Vanowen
St., North Hollywood, Calif. Underwriter—Thomas Jay,
Winston & Co., Inc., Beverly Hills, Calif.
I"/

Selective

office

trailers. 'Proceeds—For general cor¬
Office—139 W. Walnut Ave., Gardena,
Calif. Underwriter
Vickers, MacPherson & Warwick,
Inc., New York.
;
>

Feb.

film.

Proceeds

Office—245

—

7th

Stonehill &

For

Ave,.

equipment and
N

working capital.

Underwriter

Federman.

—

Co., N. Y. Offering—Indefinitely postponed.

Financial

Corp.

1962 filed

ate,
B
«

the basis of 4 company shares for each class A

share and

Selective

two-thirds share for each

Life

class

and

—10

Charles

be named.

Ruby

Floral

Park, N.

Underwriter—To

Offering—Indefintiely postponed.

businesses.

Proceeds

—

For

general

Silver

deposits.

Proceeds—For

debt

repayment and general
corporate purposes. Address—Box 1088, Wallace, Idaho.

Underwriter—Pennaluna

Co., Spokane, Wash.

Sampson Enterprises, Inc.
Feb. 28, 1962 filed 450,000 common. Price
ment
real

(max.; $8).

estate

—

By amend¬

Business—A

concern, motor

holding company for a
inn, shopping centers, bowl¬

ing establishments, etc. Proceeds—For debt repayment
and working capital. Office—222 E. Erie
St., Milwaukee.
Underwriters
Straus. Blosser & McDowell, Chicago
and Dempsey-Tegeler &
Co., Inc., St. Louis. Offering
—Temporarily postponed.
—

„

•

San

Diego Gas & Electric Co.
29, 1962 filed 500,000 common being offered for
subscription by stockholders on the basis of one new
Aug.

share for each nine held

April 23, 1962 filed 60,000
—For

business

investment.

Francisco.

common.

investment

Office—400

Price—$12.50.
company.

Montgomery

Busi¬

Proceeds

St.,

San

Underwriter—Cantor, Fitzgerald & Co., Inc.,

Beverly Hills, Calif.
-

Office—1051 Saw Mill River Rd.,
Yonkers, N. Y.
writer—Arnold Malkan & Co.,
Inc., N. Y.

Under¬

working capital. Office—1760 High St., Denver. Under¬
writer—None.

Proceeds—For

Office—565
.,

(

investment.

building.

27,

Sterling Copper Corp,

;

Fifth

Aug. 2, 1962 filed 850,000 common/ Price—$1.

Ave., N. Y.

7-77':;.77Z- 77"7/7,77

/ '
Business

—Company plans to operate a non-ferrous rod and tube
mill. Proceeds—For plant and equipment/working capi¬
tal and other corporate purposes. Office—300 Horn Rd.,
pinconning, Mich. Underwriter—None. " 77
^ /

con-,

Servotronics, Inc. (10/8)
March 30, 1962 filed 125,000
capital shares. Price — $3.
Business—Design, development and manufacture of pre- "

Stratford Financial Corp.

March

1962 filed 315,000 class A shares of which
218,000 are to be offered by the company and 97,000 by
the stockholders.
Price—$6, Business—Commercial fi¬

cision control components and associated
products. Pro^
ceeds — For debt

29,

repayment, equipment and working
nance company. - Proceeds—For debt repayment.
Office
capital. Office — 190 Gruner Rd., Cheektowaga, N, Y./',"
—95 Madison Ave.,. N. Y. Underwriter—Mortimer ' B.
Underwriter—General Securities Co., Inc., N. Y.
Burnside & Co., Inc., N. Y. r- 7/ 77J7.7'77:7':- 7 7 '
Shainberg (Sam) Co.
:/ 7/ -7Z <7;/ :rf
7
Stratton Realty & Construction Fund, Inc^ 7/
March 30, 1962 filed 236,000 common. Price—By amend¬
March 20, 1962 filed 500,000 common. Price—$20. Busi¬
ness—A real estate investment company. Proceeds—For

ment (max. $13). Business — Operation of a chain of
junior department stores and self-service discount stores.

investment. Office—50 E. 40th St., N. Y. Underwriter—

Proceeds—For
ford
C«

selling stockholders; Office—1325 War- 7 To be
Memphis. Underwriter—New York Securities "

St.,

•

62 Wall St.. N. Y.

Jan.

29,

Inc.

use

•

Sept.
ment

common.

For

debt repayment,'acquisition, of land and
working capital.- Office — 1093 Frank Rd., Columbus,
Ohio. Underwriter—H. P. Black & Co.t Inc.,
Washington,
D. C. Offering—Expected in
early Fall

Skiers

Oct.

Service

Corp.

30, 1961 filed 550,000

7/Z 7^777- 7777'/
(10/3-4)

preferred

30,000 common

Co.,

Office—Clinton, Conn.

Under¬

Hartford.- Note—This registra¬
4

7/7 7-7

T-A Development Co.

Price — By amend¬
(max. $4). Business—Construction of homes. Pro¬

ceeds

tion has become effective.

Site-Fab, Inc.
135,000

company

writer—Putnam

repayment, equipment and working capital.
Office—1933 Heck Ave., Neptune, N. J. Underwriter—
Milton D. Blauner &
Co., N. Y. Offering—Postponed.

-7

amendment (max. $17).- Business—A
for water supply firms,; Proceeds—For

advances to subsidiaries.

debt

7 /7

29, 1962 filed 30,000

holding

indicators and circuit components. Proceeds—

Feb. 27, 1962 filed

/-7'-./..;

shares. Price—By

1962 filed

126,000 common. Price—$4.50. Busi¬
ness—Manufacture, sale and development of glow lamps

for

named.

Suburban Water Service Co.

June

Signalite

ment

Saw- Mill River Industries, inc. 7*
March 29, 1962 filed 100,000 common. Price—$5. Busi¬
ness—Design, development and manufacture of steel
/ products for home use, Proceeds—For
working capital.

estate

Insurance Co. of Colorado

1962
filed
300,000
common.
Price—By
amendment (max. $5). Business—Writing of life, health
and accident insurance, -proceeds—For investment and

Office—225 Bush St., San Francisco,

Underwriter—None.

For

San Francisco Capital Corp.
small

struction

of record

Sept. 20. Rights will
expire Oct. 10. Price—$31. Proceeds—For repayment of
bank loans, and construction. Office—861
Sixth Ave.,
San Diego.
Underwriter—Blyth & Co., Inc., N. Y.

ness—A

March

Properties Corp,
;
,
.7
May 1, 1962 filed 200,000, class.A; common. Price—$10.
Business—Real

Office—111 Fifth Ave.. N. Y. Under¬
Haupt & Co., N. Y. Offering—In late Oct.

7 State Life

1962

Life Insurance Co. of - i
7 7777 ;■ 7/ \77~.
// 777 ' 7:"

purposes.

writer—Ira

Proceeds—For organizational expenses and other
purposes.

Standard Security
New York7:7 7

corporate

Central Ave., Phoe¬

10, 1962 filed 250,000 capital shares. Price —•„ $5.
Business—Company plans to sell life and disability in¬

Calif. Underwriter—None.

Co., N. Y. Offering—Postponed.

Stainless Steel Products, Inc.

June 29/1962 filed 230,000 common. Price—By amend¬
ment (max. $12). Business—Writing of life, accident and
health insurance. Proceeds—For investmentj and other

Sentinel

Mines, Inc.
("Reg. A") 2,400,000 common. Price—12%
Business—Exploration and development of mineral

Jan. 2,
cents.

St.,

Price—By amendment' Business—Manufacture of drug
and food products, electrical and .electronic devices and
precision machinery. Proceeds—For the purchase of cer¬
tain patents, repayment of debt, and -working capital.
Office—730 Grand St, .Hoboken. N
J, Underwriter^—

•

Sentinel Life Insurance Co.

surance.

Sperti Products, Inc.
77
777
^
Nov. 29, 1961 filed 230,000 common of which 200,000 are
to be offered by the company ana JO 000 by stockholders.

C share of

Sept.

corporate

Kansas

expansion, equipment and working
capital. Office—2980 N. San Fernando Blvd., Burbank,

•

Royalty Stores, Inc.
May 29, 1962 filed 75,000 common. Price—$3.75. Busi¬
ness—Operation of discount stores and wholesale distri¬
bution of general merchandise.
Proceeds—For expan¬
sion; advertising, and other corporate purposes. Office

ethylene, and the mining of-bituminous coal; Proceeds
selling stockholders.
Office—610 Dwight Bldg.,
City, Mo./Underwriter—Morgan Stanley & Co.,
New York. V*
' - 7.
1
—For

held.

corporate purposes. Office—830 N.
nix.
Underwriter—None.

Calif. Underwriter—First California Co., Inc., San Fran¬
cisco. V
7.7 7/
7
*
'
7
•
77

Remaining 94,822 and any unsub¬
scribed shares will be offered publicly. Price—To
public,
$6; to stockholders, $5. Business—Company plans to en¬
gage in' the consumer finance, mortgage,
general fi¬
nance

7 / "

Proceeds—For plapt

500,000 common, of which 405,000
to be offered for subscription by holders of the A,
B and C stock of Selective Life Insurance
Co., an affili¬
are

—

Royaltone Photo Corp.
29, 1961 filed 300,000 common, of which 100,000
are to be offered by the
company and 200,000 by stock¬
holders. v Price — By amendment.
Business — Develops
and prints color,
and black and white photographic

28,

••

27,

May 28, 1962 filed 100,000 capital shares, of which 75,000
are to be offered by company and 25,000 by stockholders.
Price—By amendment (max. $10). Business—Design, de¬
velopment and manufacture of high pressure; high; tem¬
perature ducting systems for use in aircraft and missiles.

subsidiary.

purposes.

Nov.

.7*

1962 filed 37,777 common shares. Price—By
amendment (max. $35) 7 Business—Production of poly¬

•

concern.
Proceeds—For capitalization of
Office—127 W. Main Ave., West Fargo, N. D.
Underwriter—Investment Brokerage Corp.,-Fargo, N. D.

Corp. (10/29-11/2)
Dec. 26, 1961 filed 400,000 common. Price—By amend¬
ment. Business—Design, manufacture and sale of mobile
and

working capital. Office—3300 N; W. North River Drive,
Miami, Fla. Underwriter—Irwin Karp & Co., Inc.,;68

Blair &

life insurance

Roadcraft

porate

•

(10/1-5)

$300,000 of 6% subord.
Price^-$5;000 per note. Business—A

homes

Southeastern Towing & Transportation Co./ Inc.
Nov. 29, 1961 ("Reg. A") 100,000 common,
Price—$3.

July

health insurance.

and

•

Insurance Co. of America

29, 1962 filed 256,097 common to-bo offered for:
subscription by stockholders on l-for-5 basis, Price— *
By amendment. Business—Writing of life/accident and/

supplies.

("Reg. A")

manufacturer

: ington St., Orlando, Fla, Underwriter—None. Note—This
registration was withdrawn. > - "v
- ••
* - * - 7 '
*

1 Spencer Chemical Co.

Life

Jan.

Rimak Electronics, Inc.

tract

7-."

William St., N. Y,

June

capital.
Office—5711 Hillcroft Ave.. Houston. Under¬
writers—Underwood, Neuhaus & Co., Inc. and Rotan,

15,-1962

Seaboard Land Co.

Seaboard

Mosle & Co., Houston.

vertible notes.

(same address).

Proceeds—For plant expansion, equipment and working

•

—

(10/8-12)

—Company furnishes commercial reproductions, manu¬
factures sensitized papers, cloths and films for blueprint¬
ing and printing, and sells architectural, engineering

Aug.

Price—By amehd-

common.

(max, $13.80), Business—A real estate investment
Proceeds—For investment. Office—600 E. 'Wash¬

trust.

Estate Trust

July 25, 1962 filed 200,000 class A common* Price^By.
• Spee Dee Service Systems, Inc. ,,;,777-:7'77- 7- 7 7.':fi
amendment (max. $2.50).
Business—Ownership and de- • June 29, 1962 ("Reg.-A") 100,000-common/ Price — $3.
velopment of real estate. Proceeds—For working capital.// Business—A
messenger and parcel delivery service. Pro¬
Office—912 Thayer Ave., Silver
For general corporate purposes. Office
Spring,- Md. Under-. ceeds
809
writer —North
American
Seaboard
Securities
Fourth Ave.,, Pittsburgh.. Underwriter—To be named.
Corp.,

filed

commercial

,./•/'

Southeastern Real

Business—Construction and operation of towing boats.
selling stockholders. Office—1121 Union Central
Proceeds—For debt repayment, conversion of a boat, and
Bldg., Cincinnati. Underwriter—First Boston Corp.,: N/Xf ■ /'

170,000 common, of which 140,000
are to
be offered by company and 30,000 by a stock¬
holder.
Price—By amendment
(max. $10).
Business

and

common

—For

registration statement.

27,

forvsubscription by

offered

April 2, 1962 filed 700,000
ment

Y. Underwriter—Richard Gray Co.,

repayment and general corporate purposes. Office—220
K St., N. W., Washington, D. C. Underwriter—IJirsebe]
& Co., Silver Spring, Md. Offering—Indefinite. Note—
The SEC has challenged the
accuracy
and adequacy
Ridgway

the basis of one preferred share for each
8 common shares held of record Oct. 5, with rights to
expire Oct. 22. Price—By amendment. Business—Manu¬

•
,

Scripps-Howard Broadcasting Co.
<
1
March 20, 1962 filed 375,000 common.
Price—By amend¬
ment (max. $20)..
Business—Company owns and oper¬
ates TV, radio and FM
broadcasting stations. Proceeds /

Office—

Richmond Corp.

•

(par $50)

stockholders

injectors,

Ernest M. Fuller & Co., N. X

Dec. 21, 1961 filed 142,858 common. Price—$7. Business
—A real estate investment company. Proceeds—For debt

of this

—

operating lights end jpthqr medical
equipment. Proceeds—For inventoried new products
and moving
expenses.
Office—20 North Ave., Larchmont, N. Y.
Underwriters—Coggeshall & Hicks and

New York.

was

Smith-Corona Marchant,

cine

Price—$5.

common.

working capital and other corporate

Corp. Note—This registration

This

Insur¬
withdrawn,
;

facture and distribution ^of office < equipment. Proeeeds
-~For debt repayment, a new plant and equipment,
Scientific Equipment Manufacturing Corp.
v product development and other corporate purposes. Of-"
April 30, 1962 filed 83,500 common. ..Price—$6.
Busi-: ; fice—410 Park Ave., New York. Underwriter—First Bos¬
ton Corp.,. New York, 7
ness—Manufacture of sterilizers, multi-dose jet vac7
» 7

Inc.

A")

inventory, advertising and working ,capi¬
Ave;, N. Y. Underwriter-

Office—420 Lexington

,\/"Ii,7/

27, 1962 filed 105,000 common. Price—$3.50. Busi-J
—
Operation of a laboratory for contractual re¬
development and engineering in the chemical
field. Proceeds—For expansion of facilities, debt repay¬
ment and working capital. Office—396-406 Adams St.,
Newark, N. ,T. Underwriter—Keene & Co., Inc., N. Y.
("Reg,

insur¬

ness

1962

coin-operated

Inc. (10/5)
7/Z.7
Aug. 31, 1962 filed 240,219 convertible preferred shares

N. Y, Underwriters—To be named. Note—This registra- Z
tion was withdrawn.

search,

21,

Pacific Coast Securities Co., San Francisco, Note
firm formerly was named National Vending Ski
ance

(Sidney) Realty Corp,
7
1962 filed 500,000 class A shares. Price—$10.>.
Real Estate investment. Proceeds — For ac¬
quisitions and working capital. Office—560 Fifth Ave.,

Feb.

Richard Gray & Co.,

systems.

Route

13,

Business

Resin Research Laboratories, Inc.

June

U. S.

—

Proceeds—For

tal.

Thursday, September 27, 1962

vending. machines to brokers at sporting centers.

ance

Schwartz

June

;

then refiled.

and

missile

and

Business—Distribution

ment.

March

7 *:
1962 filed 2,0Q0 common'. Price—By amend¬
(max. $1,000). Business—Company plans to ac¬

12,

quire, develop, and improve industrial real properties,
primarily in Los Angeles County. Proceeds—For gen¬
eral .Corporate purposes;
Office—9601 * Wilshire Blvd.,
Beverly Hills, Calif. Underwriterr-*-None.' ^ '7
7
'
Tabach

March 29,

Industries, Inc. (10/29-31) " ("Reg. A") 125,000 common.

1962

common.

Price—By amend¬

women's

Price—$2.

Business—Manufacture and

sale of

ceeds—For debt repayment,

leasehold improvements and

wear.

pro¬

Volume

196

Number 6198

.The Commercial and Financial Chronicle

(1335)

expansion. Office—217 E. Eight St., Los Angeles, Calif.
Ferry St., Newark, N. J. Underwriter — Moran & Co.,
Underwriter
Costello, Russotto & Co., 9301 Wilshire / Newark, N. J. Offering—Expected in late October.
Blvd., Beverly Hills, Calif.
United National Insurance Co.

ford

Bidg., Dallas. Underwriter—Harriman Ripley &
Co., N. Y. Note—This registration is being withdrawn.

—

Tactair Fluid

Controls, Corp.. {
/■•';* ;•"* /
March 29, .1962 filed 90,000 common.' Price—By amend¬
ment (max. $7.50). Business-^Manufacture of fluid con¬
trol equipment used in missiles, 'helicopters and aircraft.
Proceeds—For
selling stockholders- Address—Bridge¬
port, Gorin; Underwriters—Stroud & Co., Inc. and Penlngton, Colket & Co., Philadelphia. {/■ ■
Teaching Systems, Inc.
June 1, 1962 ("Reg. A") 50,000
ness—Production

sale

and

educational

audio-visual

•

Texas

Aug.

28,

Gas

Producing Co.

1962

debentures

filed

due

(10/9)1

v.v

of 5.%-% subord. conv.
1974. and warrants "to.
purchase :3Q,000.

shares to be offered for sale in -units consisting
$ltl0 a&ebenture and tferee warrants. Price—$100.

common

one

Underwriter—White

ment.

investment.

;

.Office—2220

Florida

Ave., Jasper, Ala. Underwriter—
Philips, Appel & Walden, 115 Broadway, N. Y.

,'i

Tourist Industry Development Corp. Ltd. :
Aug. 3, 1962 filed $5j000,000 of 7% senior debenture

stock due 1962.

Price—At par.

Business—Company

..,

purposes.

Address—Jerusalem,

Israel.Underwriter—

American-Israel Basic Economy Corp., N. Y.
Towers

Marts

way
' *

Feb.- J,. 1062 filed- 550,000 capital shares.
amendment. Business r—^Company builds

Price

Western

and
retail discount department stores. Proceeds—For
expan¬
Office—41 E. 42nd St.) N. Y. Underwriter—W. C.

•

Langley & Co., N. Y.

N. Y.

»>

capital.

Office—99. Wall

Price

Underwriter—Kordan & Co., Inc., N. Y.

.$5.05

per

foams.

-unit.

—2300
writer

—

First Nebraska Securities

;;

For investment.

Office

—

.403

Underwriter—Westco Corp.,

,/;//;'/

:..

;;//;

—

For repayment of debt

and other corporate

Office—Thompsop Bidg., Tulsa. Underwriter

(L.

F.),

Inc...{•'■■•.' {

■

Oct. 27, 1961 filed 162,000 common, of which
102,000 are
to be offered
by the company and 60,000

holders. Price—$3. Business—Operates a chain

stock¬

of retail

drug stores. Proceeds—Expansion, equipment and work¬
ing capital. Office—738 Bellefonte Ave., Lock Haven, Pa.
Underwriter—Godfrey, Hamilton, Taylor & Co., N/ Y.

Under¬

Corp., Lincoln, Neb.

Offering—Temporarily postponed.

repayment. Office—1167-65.th S.t„ Oakland, Calif. Under$L' writer—Granbery.,Marache &.Co., N. Y.
Transarizona Resources, Inc.':
'// ■'•■■cY-V Y". •• :Y';/v*
„

•

Edwards, Inc., Oklahoma City.
//
White Photo Offset, Inc.
-//ihUwii; ;■'/•/■>/
July 13, 1962 filed 100,000 common./ Price—$3.50. Busi¬
ness—Photo-offset printing. Proceeds — For debt repayment, equipment and working capital. Office—142 W.
26th St., N. Y. Underwriter — K-Pac Securities
Corp.,
New York. Offering—Expected sometime in November.
;

capital,

Bidg., Dallas.

Kidder, Peabody &

—R. J.

urethane

working

equipment,

Republic National Bank

—

purposes.

leasehold expenses and other corporate purposes. Office

Proceeds

Widman

—

1961 filed 32,000 shares of beneficial interest.
$6.25. Business — A small business investment

St., Auroca, Colo.
Aurora, Colo.

Business—Manufacture

Proceeds—For

—

Proceeds

Feb. 14. 1962 filed 250,000 class A and 250,000 common to
f; be offered in units of one share of each class. Price—

/ ~ »Trans-Western Service Industries
-; ' \; / v'\
•
April 2, 1962 filed 100,000 common, of which 20,000 are "
to? be .offered t>;y
company: and ^80,OQ0 by stockholders.
Price—By amendment, (max, $10). Business—Operation
;
of dry cleaning and laundry plants. Proceeds—For debt

$42). Business—

Wheeler & Ryan, Inc.
July 30, 1962 filed 80,000 common. Price—$12.50. Busi¬
ness—Acquisition of leases and production of oil and gas.

for renewing older residential properties.

Inc.

(max.

Investment Trust

Ursula

debt

Urethane of Texas,

13,

company.

;

St.,

Western States Real

Nov.

debt
repayment,; sales financing and
working capital. Office —• 1959 S. LaCienega Blvd., Los
Angeles. Underwriter—R. J. Henderson & Co., Los An¬
geles. v... ,>.■- v. -s ;;.;v;;

Aug. SO, 1962 filed 150,000 common. Price—$5. Business
V; —A holding company for European firms engaged in
leasing semi-trailers. -Proceeds—For equipment, debt
working

Redevelopment Corp.

source

Price—By amendment

Blvd., Los Angeles. Underwriter
c°., N. Y.

repayment and investment. < Office
Bidg., Des Moines. Underwriter—Con¬
Brothers, Inc.; Des Moines. -

single

Co.

The making of loans secured by first liens on real estate.
Proceeds—For debt repayment. Office — 3243 Wilshire

Proceeds—For

Traiieurop, Inc

repayment. and

holders.

which provides 100 % financing and construction through

sion.

Pioneer

Feb. 19, 1962 filed 371,750 capital shares of which
175,000
are to be offered
by the company and 196,750 by stock¬

March 29, 1962 filed 100,000 common. Price—By amend¬
ment.
Business—Company operates the "Kellogg Plan''

By
operates
—

writer—Copley & Co., Colorado Springs, Colo.

Fleming

Urban

International,- inciv

Offering—

Western Lithographers, Inc.
March 30, 1962
("Reg. A") 120,000 common. Price—
$2.50. Business—General printing and
lithography. Pro¬
ceeds—For equipment, debt repayment,
and-inventory.
fOffice—3407 N. El Paso, Colorado
Springs, Colo. Under¬

Urban America Real Estate Trust

—510

cargoes.

Ave., Bayside, N. Y. Underwriter—First Philadelphia Corp., N. Y.

Universal

Proceeds—For

liner-type

Kansas City, Mo.
Kansas City, Mo.

Reed, Inc.,

promotion and advertising services to mothers on behalf
of retail stores. Proceeds—For debt
repayment and gen¬
eral corporate purposes. Office—210-07 48th

Aug. 2, 1962 filed 400,000 shares of beneficial interest.
-Price—$6.
Business—A real estate investment trust.

was <

organized by the State of Israel to furnish financing to
enterprises.
Proceeds—For
general
corporae

tourist

W. 9th Street,

Price—By amend¬

common.

carrying

Capital Corp.
Aug. 28, 1962 filed 1,500,000 common. Price—$1. Busi¬
ness—Company plans to establish or acquire control of
other companies, principally those in life insurance field.
Proceeds—-For general corporate purposes. Office—318
N. St. Paul St., Dallas. Underwriter—None.

Price—$5. "Business—Operation of a chain of self-service retail stores selling elolhing, housewares, etc. Pro¬
ceeds—For expansion, equipment and
working capital.

Office—20

Underwriter—Waddell &

Business—The

:/{:/' /'>'/-

'{- V Welcome Baby, Inc."/v..V.;*,./-.
Dec. 28, 1961 filed 75,000 common. Price—$2. Business
—Company renders direct mail public relations, sales

;

(mgr.).

United Variable Annuities Fund, Inc.
April 11, 1961 filed 2,500,000 shares of stock. Price—$10
-per share. Business—A new mutual fund. Proceeds—For

Top Dollar Stores, Inc.
•<
*•
v ;
May 1, 1962 filed 200,000 common, of which 100,000 are
be offered hy company, and 100,000
by stockholders.

;

'Temporarily postponed.

Address—Elsa, Texas. Underwriter—Crow, Brourman &
Chatkin, Inc7 N. Y. ~
£
.
>
.

Steamship Corp.

Proceeds—For the purchase of vessels, and
working cap¬
ital.
Office—71 Saint Joseph St.,
Mobile, Ala. Under¬
writer—Shields & Co., Inc., N. Y.

—

Co., Inc., St. Louis. Offering—

Aug. 29, 1961 filed 1,743,000

gas.

&
1

Waterman

unit.'Business—Production of crude oil and natural
Proceeds ?— For debt repayment, expansion and
• United
Telephone Services, Inc.
working capital. ' Office—721 Meadows Bidg., Dallas. '
March 30, 1962 filed 150,000 class A common. Price—By
Underwriter
Equitable Securities Corp., Nashville,
amendment (max. $5). Business—A telephone holding
Tenn.
(
company. Proceeds—For debt repayment, equipment and
Texas Plastics, Inc.
i
working capital. Office—645 First Ave., N. Y. Under¬
July 27, 1962 filed 313,108 oommon. Price—$3.50.; Busi¬
writer—J. R. Williston & Beane, N. Y. Note—This reg¬
ness^—Operation of a plant, producing plastic film and
istration was withdrawn.
packaging; products.
Proceeds—For
working
capital,

per

—

-Imminent.

U. S. Cold Storage of Hawaii, Inc.
Sept; '14, 1962 filed 30;000 capital shares, of which 20,000 "are to be offered by company and 10,000 by present
stockholders.; Price—$10. Business—Company plans to
construct and operate cold storage facilities in Hawaii.
Proceeds—For construction, and working capital. Office
—3140 Ualena St., Honolulu. Underwriter—None, v-1;
4

$1,000,000

For expansion and general
corporate pur¬
Office—Civic Memorial Airport. E
*itn«
HL

poses.

Proceeds

Price—By amendment (max. $18L BusinessOperates hard goods' departments in discount depart¬
ment stores. Proceeds—For debt repayment. Office—19
Needham St., Nugent Highlands, Mass. UnderwritersMcDonnell & Co., Inc., and Oppenheimer & Co., N. Y.

teaching aids. Proceeds—For equipment, promotion and
advertising and-working capital.^Office—1650 Broad¬
way; N. ?Y. tfodemriter—C
Ventures Corp., 733"
Third Ave., N.
J"-'>

Aviation, Inc.

3u, lytil filed 9u,uUU common, of which 60,000 are to
by the company and 30,000 by a stockholder.
Price—$6.25. Business—Sells Cessna Airplanes and
sup¬
plies; also repairs and services various type airplanes.
be offered

holders.

Price—$2. Busi¬

Walston

Oct.

United-Overton Corp.
Mar. 26, 1962 filed 450,000 common, of which 90,897 are
to be offered by the company and .359,103 by stock¬

;v-„>
common.

•

May 29, 1962 filed 77,000 common. Price—$15. Business
—Sale of automobile insurance, and the writing of fire
and;extended coverage insurance. Proceeds—For ex¬
pansion. Office—225 S. 15th St., Philadelphia. Under¬
writer—Suplee, Yeatman, Mosley Co., Inc., Philadelphia.

Wiegand

(Edwin

L.)

Co.

March 30, 1962 filed 606,450 common. Price—By amend¬
ment. Business—Manufacture of .electrical heating /ele-

v.; Vaiu-Rack, Inc.fr;-J ■
May 4, 1962 filed 200,000 common, of which 100,000 are •*.' ments for
industrial, commercial and household applicato be offered by company and 100,000 by stockholders.
tions. Proceeds—For selling stockholders.- Office—7500
May 28,: 1962 filed 500,000 capital shares.. Price—$1.50.
Price
$5. Business — Wholesale distribution and retail
Thomas Blvd., Pittsburgh. Underwriters—Eastman Dil¬
; v Business—Exploration; development and
production of
merchandising of health'and beauty aids, housewares,
lon, Union Securities & Co., N. Y., Moore, Leonard &
the;Lake Shore copper deposit near Casa Grande, Ariz.
kitchenwares, wearing apparel and other goods.
Pro¬
Lynch, Pittsburgh and Reinholdt & Gardner, St. Louis.
Proceeds—For equipment, exploration and working
capceeds—For debt repayment.
Office—2925 S. San Pedro
vital. Office—201 E. 4th
Offering—Temporarily postponed.
'
St., Casa Grande, Ariz. UnderSt., Los Angeles. Underwriter—To be named.
'
i
Wiener Shoes Inc.
writer—None.■/;_/•//'/ /.• '
;v"/,
''
•'
Vendex
Inc.
V
■
*'•
• Tremco
April 2, 1962 filed 80,000 common/ Price — By amend¬
Manufacturing Co.
Jan; 12, 19*62 ("Reg. A") 300,000 common. Price — $1.
ment (max. $11). Business—Operation of a chain of shoe
Feb. 26, 1962 filed 150,000 class A common.
Price—By ;
Business—Manufacture of coin operated vending ma¬
stores. Proceeds-^For debt.'repayment, .expansion .and
.amendment (max. $15). Business—Producer of protective
chines. Proceeds—For an acquisition and general cor¬ X
working capital. Office — 808 Dakin St.,.New Orleans.
f coatings, sealants, mastics; paints, etc. Proceeds — For
porate purposes. Office—1290 Bayshore Blvd., Burlin- / Underwriter — Howard, Weil, Labouisse. Friedrichs &
selljLng stockholders. Office—10701 Shaker Blvd., Cleve¬
game, Calif.
Underwriter—Pacific Coast Securities Co.,1
Co., New Orleans.
'' ..v:
land. Underwriter—McDonald &
Co., Cleveland; Note
San Francisco.
-V': ;
v—This registration was withdrawn.
V Winslow Electronics, Inc..
" • •
/
V.
! /
Vending Components, Inc.
Dec. 28, 1961 filed 125,000 common. Price—$4. Business
Tujax Industries, Inc.V -Y'Vi
f//:v:< :Y:Y' rYHY -//'»•: £ March 30, 1962 filed 100,000 common. Price—$4. Busi¬
—Design and manufacture of precision electrical and
Mar. 23, 1962 filed 150,000 class A
sh^es;-df which 100/
ness
electronic measuring devices and test equipment. ProManufacture, design and sale of metal valves,
j' 000 are to be offered by company and 50.000 by stock¬
mixers,: taps, etc., for vending machines..Proceeds—For
ceeds—For debt repayment and other corporate purholders. Price—$8.- Business—-Through its subsidiaries
■/expansion, new products and other corporate purposes.
poses. Office—1005 First Ave., Asbury Park, N. J. Under¬
the company is engaged .in the wholesale
distribution
Office—204 Railroad Ave., Hackensack, N. J.> Underwriter—Amos Treat & Co., Inc., N. Y,
*
;V. of electrical supplies and equipment. Proceeds /.— For
writer—Keene & Co., Inc., N. Y.
4 debt repayment and working capital. Office—514 E. 73rd
Wolf Corp.
St.,*5L"Y; Underwriters—Richard Bruce & Co., Inc.* and :/V I Video Color Corp.
-.''5
Jan. 26, 1962 filed $4,500,000 of 6.5% convertible sub¬
Reuben Rose & Co.,
April 6, 1962 filed-1,000,000 common. Price—$1.15. Busiordinated debentures due 1977 (with attached warrants)
Inc., N. Y. ness—Development, manufacture and distribution of picto be offered for subscription by stockholders of class
turbodyne 'Corp.
Y/V
ture tubes. {Proceeds—For /equipment, inventories and
A stock on-the basis of $500 debentures for each 100
! March 2, .1962 filed
127,500 common. Price—$5. Business
/ working capital. Office—729 Centinela Blvd., Inglewood,
class A shares held. Price—$500 per unit. Business—
—Research, development and production and overhaul*
Real estate. Proceeds—For debt repayment and realty
ing <of gas tm^bine engines. Proceeds—For debt repay¬ ; Calif. Underwriter—Naftalin & Co., Inc.,. Minneapolis.
.

—

„

■

•

—

...

s/men*, research and development, a new plant and work¬
ing capital. Office —.1346 Connecticut Avenue, N. W.,

Washington, D. C. Underwriter—Sandkuhl
;
\
.
;
" /■

N. ¥

•

;

the

O-Tote'm of West Florida, Inc.
;
'-;;Au^. 13, 1962. ("Reg.. A") ,50,000 common. Price—$4.
Business—Sale of groceries, drugs and general merchandise/ "Proceeds—For expansion, inventories and
working
Office—4609 Bee Ridge Rd.,1 Sarasota, Fla. Un¬

derwriter—Giyens & Co., Inc.,, Miami. Note—This letter
will fee withdrawn.

United Markets Inc.
<'
March 15, 1962 .filed $400,000 of 8% conv. subord.
deben¬
tures due 1972 and 20,000 common to be offered in units
.

sale,

1961 filed

Corp.

lU0,ouu

installation

and

servicing

industrial

and

commercial communications equipment and the furnish¬

-capital.

Electronics

class A shares. Price — $3.
Business—The manufacture of electronic test equipment,

Co., Inc.,
;

Voron

July 28,

background music. Proceeds—For tooling, pro¬
duction, engineering, inventory and sales promotion of
its products and for working capital.
Office — 1230 E.

ing
*

Mermaid

Lane, Wyndmoor, Pa.

Toshua & Co., Inc.. and

Reuben.

Underwriters

—

Roce & Co., Inc.,

John
N. Y.

Note—This registration was withdrawn.

Wallace

Investments, Inc;
Feb. 12, 1962 filed 400,000 common.
Price—By amend¬
ment (max. $22). Business—Company makes short-term
of one $200 debenture and 10 shares. Price—$250 per {. real estate
loans, acquires, develops and sells land, and
unit. Business—Operation of "Foodtown"
supermarkets.
engages in the mortgage loan correspondent business.
Proceeds—For general corporate'
purposes. Office—531
Proceeds—For selling stockholders.
Office—1111 Hart¬

acquisitions. Office—10 E. 40th St
N Y tTT*»dprwHt*r
E. Securities, Inc., 10 East 40th Street, New. York.
Note—This registration will be withdrawn.

—S.

•

Wolverine Aluminum Corp.

March 5, 1962 filed 100,000 common. Price

—

ment

and

By amend¬
manufac¬
turing of aluminum building products. Proceeds—For a
-new building and equipment.
Office-^-1650 Howard St.,
Lincoln Park. Mich. Underwriter—F .T winMri«»r;& Co.,
Detroit. Note—This registration was withdrawn.
(max. $6.50). Business—Processing

Work Wear

Corp.

Mar. 26,

1962 filed 130,000 common. Price—By amend¬
ment <(max. $27). Business — Manufacture and sale of
work clothing. Company is also; engaged in industrial
laundering and garment rental. Proceeds—For debt re-

Continued

page

The Commercial and Financial Chronicle

(1336)

1768
&

25th

St.,

working capital.

and

acquisitions

payment,

Office

—

Underwriter—Hornblower

Cleveland.

•

Financial Corp.

Worth

(10/22-26)

1962 filed $360,000 of 6% convertible deben¬
tures (with warrants) and 36,000 common, to be offered
in units of one $80 debenture and 8 shares. Price—$100
March 22,

per

unit. Business

Financing of commercial accounts

—

Proceeds—For

receivable.

40th

Office—114 E.

general

corporate

St., New York.

purposes.

Clifton, N. J.

Skloot & Co., Inc.,

(10/30)
March 30, 1962 ("Reg. A") 10U,000 common. Price—$3.
Business—Operation of underground cold storage facil¬
ities. Proceeds—Expansion, debt repayment and working
capital., Address—Box 594, Fayetteville, Ark.
Under¬
•

Zero

Inc.

Mountain,

writer—Don D. Anderson & Co.. Inc.. Oklahoma

Office—1200 Main St.,

Columbus, S. C.

Un¬

Sept. 20. Rights will
expire Oct. 10. Blyth & Co., Inc., New York, is the prin¬
cipal underwriter.
.
,

Stelber Cycle Corp.

100,000 common shares offered at
Lloyd Securities, Inc., New York.

Business—Manufacture of electrotherapeutic, elec¬
surgical, diagnostic and monitoring equipment.
Proceeds—For debt repayment, machinery and working
capital. Office—4371 Valley Blvd., Los Angeles. Under¬
$5).

Merrill

237,140
Welsh

(max.

Zayre

and

—To

reduce

Cedar

Blair &

ATTENTION UNDERWRITERS!
Do you have an issue you're planning to register?
Our

and

flight control devices. Proceeds
Office—5225 "C" Ave., N. E.,
Underwriters—Kidder, Peabody &

Underwriter—

Office—2021

Central

Ave.,

Hot

Springs,

Ark.

Underwriter—None.

Co., Inc., and White, Weld & Co., Inc., N. Y.
if Colorado Imperial Mining Co.
Sept. 20, 1962 filed 200,000 common.
ness—General

operating

similar to those

Price—$1.

Busi¬

Effective Registrations

Proceeds—For exploration and
Office—Creede, Colo. Underwriter

The following registration statements were de¬
clared effective this week by the SEC. Offering

if Columbia Gas System, Inc. (11/1)
Sept. 24, 1962 filed $30,000,000 of debentures due 1987.
Proceeds—For
construction
programs
of susbidiaries.
Office—120 E. 41st St., N. Y.
Underwriters—(Competi¬
tive). Probable bidders: Merrill Lynch, Pierce, Fenner
&

Smith

Inc.-White,

Stuart & Go. Inc.

purchase 60 shares.

Weld

Manufacture

Price—By amendment.

Business—

incandescent, fluorescent and
Proceeds—For working capital.

lamps.

mercury

Office—
Blvd., North Bergen, N. J. Underwriter—
Auchincloss, Parker & Redpath, 2 Broadway, N. Y.

vapor

2321

Hudson

if Hunter Engineering Co.
Sept. 26, 1962 filed 100,000 shares of convertible pre¬
ferred (par $25) and 100,000 of common to be offered
in units of one preferred and one common share. Price—
By amendment. Business—Production of aluminum mill
products and the building of rolling mill machinery and

continuous casting equipment for the non-ferrous metals

industry. Proceeds—For debt repayment, and construc¬
tion of

new

mill. Address

—

Riverside, Calif. Under¬

writer—Eastman Dillon, Union Securities & Co., N. Y.

if Industrial Development Bank of Israel Ltd.
Sept, 21, 1962 filed 1,000,000 of 6% preference CC shares
and 1,500 ordinary CC shares.
The AA shares may be
purchased only as a part of a unit consisting of one AA
share

and

345

shares.

The

may
be pur¬
Price—For units,
by amendment; for CC shares, $10.50 per share. Business
—The bank was organized in
1957 to encourage the

chased

part of

unit

separately.

establishment of industrial undertakings
ceeds—For general corporate purposes.

Aviv, Israel.

in Israel. Pro¬
Address—Tel-

Underwriter^-Brager & Co., N. Y.

would

prepare

item

you'll find hereunder.
us

REctor

2-9570

at 25 Park Place, New York 7, N. Y. ■%

derwriter
New

Eastman

—

York.

Dillon/ Union Securities & Co.,
"
' *
' \ * :

American Telephone & Telegraph Co.

( 10/23)
reported that directors had author¬
$250,000,000 of debentures due Oct.; l,
1996. Proceeds—For improvement and expansion of telq#
phone services. Office—195 Broadway, New York. Un¬
derwriters
(Competitive). Probable bidders: Morgan
Stanley & Co.; First Boston Corp.-Halsey, Stuart & Co.
Inc. (jointly). Bids—Expected Oct. 23..
' *

Sept. 19, 1962 it

ized

the

sale

was

—

Transport Co.,

Inc.

(10/2)

Price—By amendment. Business
A motor, carrier of
general commodities proVidihg direct service to over
600

municipalities in six mid-western states. Proceeds—

For selling stockholders. Office—7400
St. Louis. Underwriter — Edward D.
Louis.

North Broadway,
Jones &

Co., St.

Belock

Instrument Corp.

plans to
sale of securities. Busi¬

Sept. 4, 1962 it was reported that the company
raise

Boston

if Dura-Test Corp. ^r
v
t
Sept. 19, 1962 - filed $3,500,000 of subord. debentures
(series A), due 1982, and 15-year warrants to purchase
210,000 common shares, to be offered in units consisting
of
$1,000 of debentures and an attached warrant to

can

Prospective Offerings

details, where available, will be carried in the
Monday issue of the "Chronicle."

& Co. (jointly); Morgan
Corp. (jointly);; Halsey,
Bids—Expected Nov. 1.

Co.-First

Be-Mac

—None.

Stanley

write

that

telephone

you

Department

News
so

Sept. 17, 1962 it was reported that the ICC had author¬
ized the sale of 50,000 outstanding $1 par common shares.

mining.

expenses.

Corporation

•

Co., Inc., N. Y.

capital.

loans.

Rapids, Iowa.

to know about it

Would

★ Wonderland Motel, Inc.
Sept. 7, 1962 ("Reg. A") 1,000 shares of $6 cum. pre¬
ferred and 18,000 common.
Price—For preferred, $100;
for common, $5.
Business—Operation of a motel. Pro¬
ceeds—For construction, debt repayment, and working

Business—Design, development and
specialized radio communication equip¬

bank

Corp.

350,000 common shares offered at $12 per share by Leh¬
man Brothers, New York*

inventory, working capital,

fice—10 Dorrance St., Providence, R« I.

$26).

aircraft

ment

Co.

Panel

$2,500,000 of 5 V2% convertible subordinated debentures
due 1977 offered at par and accrued interest by Kidder,
Peabody & Co., Inc., New York., and Mitchum, Jones &
Templeton, Inc;, Los Angeles.1

ment

share by Ful¬

Adley Corp.
writer—None.
■
May 17, 1962 the company .applied to the ICC for auA Textron Inc. ~k r
^
Price—
Sept. 20, 1962 filed 40,000 common. Price—By amend- | thortiy to issue 75,000 $2 par common shares.
By amendment (min. $9). Business — A motor vehicle
ment (max. $27). Business—Manufacture of agrochemicommon carrier operating in 18 eastern states. Proceeds
cal, automotive, consumer, defense, industrial and tex¬
—For working capital. Office—New Haven, Conn. Un¬
tile products.
Proceeds—For selling stockholders.
Of¬

if Collins Radio Co.
Sept. 21, 1962 filed 557?515 common shares to be offered
for subscription by common stockholders on the basis
of one new share for each four held. Price—By amend¬
manufacture

per

Wyle Laboratories

sales promotion and clinical testing of a new product.
Office—1512 S. La Cienga Blvd., Los Angeles.
Under¬

Corp., Yazoo City, Miss., will act as underwriter for the
stock.

Proceeds—For

share by*

110,000 common shares offered at $7 per share by Robert
L. Ferman & Co., New York.

Lynch, Pierce, Fenner & Smith Inc., N. Y.

maceuticals.

shares offered at $10

common

ton, Reid & Co., Inc., Cleveland.

★ Ries, Biologicals, Inc.
Sept. 10, 1962 ("Reg. A") 5,000 shares to be offered for
subscription by stockholders on a pro-rata basis. Price
-—$10. Business—Manufacture and distribution of phar¬

writer—None.

per

Stowe-Woodward, Inc.

tronic

if Coastal Chemical Corp.
Sept. 24, 1962 filed 40,000 class A, 39,239 outstanding
class C, and 20,000 class D shares.
Price^^S.; Business
—Manufacture of anhydrous ammonia.and other fertil¬
izer materials and components. Proceeds—For; working
capital. Mississippi Chemical Corp.,/parent, will receive
the proceeds from the sale of the class C stock. Address
—Yazoo City, Miss.
Underwriter—Mississippi Chemical

$3.25

A Panhandle Eastern Pipe Line Co. - (10/24)
Sept. 21, 1962 filed 200,000 shares of cum. preferred (par
$100).
Price—By
amendment.
Business—Production,
transmission and; sale of natural gas. Proceeds—For repayment of bank loans. Office—One Chase Manhattan
Bank, N. Y. Underwriters—Kidder, Peabody & Co., and

if Birtcher Corp.
Sept. 21, .1962 filed 288,476 capital shares to be offered
for subscription by stockholders on the basis of one new
share for each three held. Price—By amendment (max.

Diego Gas & Electric Co.

for each nine shares held of record

corrugated and solid fibre containers, folding

Co. Inc.

Co., Inc., New York.

500,000 common shares offered for subscription by stock¬
holders at $31 per share on the basis of one new share

N. Y.
Underwriters—Kidder, Peabody & Co., Merrill
Lynch, Pierce, Fenner & Smith Inc., and Halsey, Stuart

derwriter—None.

Corp.

one

San

if Panhandle Eastern Pipe Line Co.
(10/24)
Sept. 21, 1962 filed $60,000,000 of debentures due 1982.
Price—By amendment. Business—Production, transmis¬
sion and sale of natural gas.
Proceeds—For repayment
of
bank
loans.
Office—One Chase Manhattan Plaza,

if American Sentinel Life Insurance Co.
Sept. 14, 1962 ("Reg. A") 37,500 common shares to be
offered for subscription by stockholders on a pro-rata
basis. Price—$6. Business—Writing of ordinary life insurance.
Proceeds—For operating expenses, and in¬

units (each consisting of four common shares
warrant) offered at $30 per unit by H. Neuwirth

and

cartons, paperboard mill products and molded pulp and
plastic products. Proceeds — For debt repayment, re¬
demption of preferred and other corporate purposes. Of¬
fice—1632 Chicago Ave., Evanston, 111. Underwriter—
Blyth & Co., Inc., New York.

This Week

Delaware

50,000

if Packaging Corp. of America \
Sept. 26, 1962 filed $25,000,000 of sinking fund deben¬
tures due 1987. Price—By amendment. Business—Manu¬

Issues Filed With SEC

vestment.

Riker

Inc., N. Y.

City.

Papert, Koenig, Lois, Inc.
100,000 class A shares offered at $6 per share by Andresen & Co., and Oppenheimer &
Co., New York.

writers—Crow, Brourman & Chatkin, Inc., and Pistell,

facture of

interest, and 250,000 common
share by Eastman Dillon, Union Secu¬
rities & Co., New York.
>

if (J. D.) Jewell, Inc.
Sept. 21, 1962 filed 60,000 common. Price—$9. Business
—Raising, preparation and distribution of poultry and
processed frozen specialty foods. Proceeds—For debt re¬
payment, additional equipment, and working capital.
Office—322 Maple St., S." W.,' Gainsville,
Ga.Z Under¬

Underwriter—Leib,

Thursday, September 27, 1962

offered at $9.25 a

Underwriters—(Competitive).
Probable bidders: First
Boston Corp.; Halsey, Stuart & Co. Inc.; Eastman Dil¬
lon, Union Securities & Co.-Salomon Brothers & Hutzler-Merrill Lynch, Pierce, Fenner & Smith Inc. (jointly);
Kidder, Peabody & Co.; White, Weld & Co.
Bids—Nov.
14, 1962 (11 a.m. EST) at 80 Pine St., N. Y. Information
Meeting—Nov. 9 (10 a.m.EST) at same address.

Weeks, N. Y. Note—This registration is being with¬

drawn.

offered at par and accrued

A Jersey Central Power & Light Co. (11/14)
Sept. 20, 1962 filed $11,000,000 of first mortgage bonds,
due Nov. 1, 1992.
Proceeds—For construction. Office—
Madison Ave. at Punch Bowl Rd., Morristown, N. J.

^Continued from page 43

additional $1,000,000 by

ness—Company produces various defense items, such as
Ames
■

Department Stores,

100,000 class A

Inc.

••

at $3

per

sharev-

by Meller & Co., New York.
First

Colorado

42,000

Bankshares,

•directors,- missile system components,.,
working, capital and, other: corporate,
purposes. Office—112-03 Fourteenth Ave., College Point,
N. Y. Underwriter—Carl M. Loeb, Rhoades & Co., N.Y,

bomb-sights,

shares offered

common

Inc.

Biologies

shares offered at $13 per share by Bos-

common

worth, Sullivan & Co., Inc., Denver.
Franklin

Bank

200,000 shares of 4.60%

Long Island

cumulative

preferred

breed

man

poses.

was

Gateway Sporting Goods Co.
$2,000,000 of 5%% convertible subordinated debentures
due Sept. 1, 1977 offered at par and accrued interest by
Stern Brothers & Co., Kansas City, Mo.
House of Vision,

150,000

Inc.

common

Southern

$4,900,000
1992

4.35%

Utilities

4%%

offered

first

Salomon

Co.

mortgage

100.416%

and

Brothers

bonds

accrued

Sept.

due

interest

& -Hutzler

1,
yield

Merrill

and

Lynch, Pierce, Fenner & Smith, Inc., New York.
Larsen

Co.

103,638

common

Baird

Louis Lesser

shares offered
&

at $11,125 per

share by

Co., Inc., Milwaukee.

common

shares offered

at $10 per share*

by Morris Cohon & Co., New York.
of

5.%%

sinking

10,

issue

Public

Service

Co.

1962 it was reported that this company plans
about $10,000,000 of first mortgage bonds in
construction. Office—607 E. Adams

St., Springfield, 111.
able

named.

Proceeds—For
bidders:

Underwriters—(Competitive). Prob¬

Eastman Dillon,

Union Securities & Co.-

Equitable Securities Corp. (jointly); Blyth & Co.-Kidder, Peabody & Co.-Merrill Lynch, Pierce, Fenner &
Smith Inc. (jointly); Halsey, Stuart & Co. Inc.; Salomon
Brothers & Hutzler; First Boston Corp.; Lehman Broth¬

(jointly),

ers-Bear, Stearns & Co.

Briggs, Executive Vice-Presi¬
had postponed until
securities because of
"larger than anticipated internal generation of cash, sub¬

Sept.

1962, Robert P.

dent, announced that the company
plan to sell additional
stantial

refunds

increased

Maust Coal & Coke Corp.

$5,000,000

Illinois

mid-1963 its

Enterprises, Inc.

500,000 class A

Central

July

com¬

Price—$3.

Consumers Power Co.

;

Robert

writer—:To
r

1963.

shares offered at $14 per share by Hornblower & Weeks, New York.
Iowa

—7520

plans

Business—Company , plans to
and supply animals for biological research pur¬
Proceeds—For general corporate purposes. Office
Bergenline Ave., North Bergen, N. J. Under¬

shares.

fered at $100 per

share, plus accrued dividends, by East¬
Dillon, Union Securities & Co., New York. (Issue )
exempted from registration with the SEC).

Inc.

file

mon

stock of¬

International

15, 1962 it was reported that this company
a
registration statement covering 125,000

Aug.

National

gun

etc. Proceedsr—For

use

from

natural

of bank credit."

gas
suppliers and the
Earlier, the company re¬

ported that it expected to sell about $40,000,000 of secu¬
fund

debentures

due

1977

rities, probably bonds, in the fourth quarter.

Office—

Volume

Number

196

6198

The Commercial and Financial Chronicle

(1337)

212 West

Michigan Ave., Jackson, Mich. Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co.-Shields & Co.' (jointly); Harriman
Ripley & Co. Inc.-First Boston Corp. (jointly);
Morgan Stanley & Co.

;V Delaware Power & Light Co.
March 9, 1962 it was reported that the company has post¬

poned until early Spring of 1963 its plan to issue additional common stock.
The offering would be made to
common

stockholders first

the basis of

each 10 shares held. Based

one

share for

;
*

the number of shares out¬

Dec. 31, 1961, the sale would involve about
418,536 shares. Proceeds—For construction. Office—600;
Market St., Wilmington, Dei. Underwriters—(Competi¬
tive). Probable bidders: Carl M. Loeb, Rhoades & Co.;
W. C. Langley & Co.-Union Securities Co.
(jointly);
Lehman Brothers; First Boston Corp.; White, Weld &
Co.-Shields & Co. (jointly); Kidder, Peabody & Co.Merrill Lynch, Pierce, Fenner & Smith Inc. (jointly).
standing

Florida

Power

Co.

19, 1962 it was reported that this company plans
stockholders the right to subscribe for about
457,265 additional common shares on a l-for-20 basis.
Office—101 Fifth St., South, St. Petersburg, Fla. Under¬
writers—To be named. The last rights offering of com¬
mon on May 4,
1959 was underwritten by Kidder, Peabody & Co., and Merrill Lynch, Pierce, Fenner & Smith
Inc., N. Y. Offering—Expected in October, 1962.
offer

Metropolitan Edison Co. (11/27)
Aug. 1, 1962 it was reported that this subsidiary of Gen¬
eral Public Utilities Corp., plans to sell
$15,000,000 of
30-year first mortgage bonds, in the fourth quarter of
1962.
Office—2800 Pottsville Pike, Muhlenburg Town¬
ship, Berks County, Pa. Underwriters—(Competitive).
Probable bidders: First Boston Corp.; Halsey, Stuart &
Co. Inc.; White, Weld & Co.; Kidder, Peabody .& Co.-

Food Fair Properties, Inc.

stockholders authorized the company to
issue 756,000 shares of a new convertible preferred stock
which will be offered to stockholders through subscrip¬

May

11,

1962

Drexel

and purchase up to

•

preferred stock

Aug. 28, 1962 it

Pan American World

proval

other

corporate
Airport, Miami

last

financing by the
& Co.,
and
Alstyne, Noel & Co., New York City.
Illinois

Power

Allen

Natural Gas Pipeline

Office—1000

Main

(Competitive).
Fenner

St., Dubuque, Iowa. Underwriters—
Probable bidders: Merrill Lynch, Pierce,

Smith

Inc.-Kidder, Peabody & Co. (jointly);
Halsey, Stuart & Co. Inc.; Salomon Brothers & Hutzler:
White, Weld & Co.
,v'C
Jamaica

Water

Supply Co.

March

20, 1962 it was reported that this utility plans
$3,000,000 of mortgage bonds and $2,000,000 of
preferred and common stocks. Proceeds—For debt re¬
payment, and construction. Office — 161-20 89th Ave.,
to

sell

Jamaica, N.

Y. Underwriters—To be named. The last
sale of bonds on May 3, 1956 was made by Blyth & Co.
Other bidders were: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; White, Weld & Co.
The last several
issues of preferred were sold privately. The last sale
of common on May 9, 1956 was made through Blyth &
Co., Inc.
Japan Development Bank
July 3, 1962 it was reported that the Japanese Finance
Ministry has authorized the bank to issue an additional
$22,500,000 of bonds in the U. S._ It is expected that a
major portion of this financing will be completed by
March 31, 1963. Business—The bank was incorporated to
1951

supply

Japanese Government financial institution to

long-term

funds

Japanese

industry for the

later this

28,

gas

Northern

1962

stock.

Nev.

year.

pipeline

Gas

Co.

was

Office—2011

Las

Office—441

Stuart

Boston. Underwriters—
(Competitive). Probable bidders: Halsey, Stuart & Co.
Kidder, Peabody & Co.-White, Weld & Co. (jointly);
Inc.; Merrill Lynch, Pierce, Fenner & Smith Inc.Lehman Brothers-Equitable Securities Corp. (jointly);
First Boston Corp.; Kuhn. Loeb & Co.
Northern Illinois Gas Co.

28, 1962 it was reported that the company expects
to raise $125,000,000 to finance its 1962-66 construction
program. About $25,000,000 of this, in the form of a debt
issue, will be sold in the second half of -1962. Office—
615 Eastern Ave., Bellwood, 111. Underwriters—To be
named. The last sale of bonds on July 14, 1960, was
handled by First Boston Corp.
Other bidders were:
Halsey, Stuart & Co., Inc.; Blyth & Co., Inc-Equitable
Securities Corp. (jointly); Glore, Forgan & Co.
Northern

Natural

28, 1962 it

Gas Co.

reported that the company's 1962
expansion program will require about $40,000,000 of
external financing to be obtained entirely from long
or short term borrowing. Office—2223 Dodge St., Omaha,
Neb.

was

Underwriter—To

bentures

basis by

named.

The

on Nov. 16,
1960 was handled
Blyth & Co., Inc., N. Y.

Oklahoma

Gas

Electric

last

sale

on, a

de¬

negotiated

Co.

reported that this company plans to
sell $12,000,000 of 30-year first mortgage bonds, in the
second quarter of
1963.
Office—321 No. Harvey St.,
Oklahoma City. Underwriters—(Competitive). Probable
bidders: Merrill Lynch, Pierce, Fenner & Smith Inc.White, Weld & Co. (jointly); Halsey, Stuart & Co. Inc.;
Lehman Brothers-Blyth & Co. Inc. (jointly); First Bos¬
Aug. 1, 1962 it

ton

1987. Proceeds—For

ket

St., San Francisco.

was

Corp.; Harriman Ripley & Co., Inc.-Eastman Dillon,
Union Securities & Co. (jointly); Equitable Securities
Corp.

construction. Office—245 Mar¬

Underwriters

(Competitive).
Halsey, Stuart & Co. Inc.; Blyth & Co.
Inc.; First Boston Corp. Bids—Expected Nov. 27.
Pacific Power & Light Co.

Sept. 10, 1962 it

—

(11/26)

reported that this company plans
$32,000,000 of first and refunding mortgage bonds
due 1992. Proceeds—To refund
$12,000,000 outstanding
5%% bonds due Jan. 1, 1987 and
$20,000,000 of Out¬
standing 5%% bonds due Sept.
1, 1987. Office—920
S. W. Sixth Ave,,
Portland, Ore.
was

to sell

Underwriters—(Com¬

petitive).
Eastman

body
&

Probable bidders:

Halsey, Stuart & Co. lnc *
Union Securities & Co.-Kidder,* Pea-^
(jointly); Lehman Brothers-Bear Stearns

Dillon,
Co.

Co.-Salomon

Co.-White,

Brothers

Weld

&/Co.

Hutzler

(jointly);

(jointly).

Bids

Nov. 26. Information Meeting—Nov.
21
at 2 Rector St., New York.

Blyth

.^Expected

(2:30

o.m

EST)

Pennsylvania Power & Light Co.
Jack K. Busby, President and C. E.
Oakes,
Chairman, stated that the company will require about
$93,000,000 in debt financing in the period 1962 to 1970.

Feb. 20, 1962.

Proceeds—For construction and the retirement of
$17,000,000 of maturing bonds.
Office—9th and Hamilton
Sts., Allentown, Pa. Underwriters—To be named. The
last

sale

petitive

bonds

bidding

Nov.

29, 1961
Weld &

White,

was

won

com¬

Co., and Kidder,
Peabody
&Co.
Other bidders were
Halsey, Stuart &
Co. Inc.; First Boston
Corp.-Drexel & Co. (jointly).
V
Russ Togs, Inc.
/:■■■
Sept. 5, 1962 it

was

reported that

ment will be filed

about

shortly covering
150,000 common shares.
misses,
junior
and

priced sportswear. Office

registration state¬

secondary offering
Business—Company

manufactures

children's

popular

1372

Broadway, N. Y. ' Un¬
derwriter— Shearson, Hammill &
Co., N. Y.
/
—

South Carolina Electric & Gas Co.
/
: /
Aug. 1, 1962 it was reported that the company plans a
rights offering to stockholders of approximately $8,500,000 of common stock.
Office—328 Main St., Columbia,
S. C. Underwriter—To be named. The last
rights offer¬
ing in February, 1958, was underwritten by Kidder,
Peabody & Co., N. Y. Offering—Expected in the first
quarter >of i1863.j^ji
./' ■'. v
;.y-••■■;

"'Southern California EdisSn Co.
(10/36v;
July 3,^ 1962 it Wa& reported that/this'fcbmpany plans
to sell $50,000,000'8f first and
partial^' refunding mort¬
gage bonds, series P, due NovM, 1987.
Proceeds—For
debt repayment and construction.
Los

Angeles.

Office—601 W. 5th St.,

Underwriters—(Competitive).

Probable

bidders: Blyth & Co., First Boston
Corp.-Dean Witter &
Co. (jointly); Halsey, Stuart & Co.

Incq Kuhn, Loeb &
/Co.-Equitable
Securities
Corp. .(jointly).
Bids—Ex¬
pected Oct. 30 (8:30 a.m. PST) at company's office.
;

Aug.

21,

Electric

1962

was

Generating Co.
reported

that

(11/28)

this

subsidiary

the

Southern Co. plans to sell $7,500,000 first
mortgage
bonds due June 1, 1992. Office — 600 N. 18th

Strust,
Birmingham, Ala. Underwriters—(Competitive) Prob¬
able bidders: First Boston Corp.;
Halsey Stuart & Co.,
Inc.; White, Weld & Co.-Kidder, Peabody & Co. (jointly)
Merrill Lynch, Pierce, Fenner & Smith
Inc.-Blyth &
Co., Inc. (jointly); Eastman Dillon, Union Securities &
Co.-Equitable Securities Corp.-Drexel & Co. (jointly);
Morgan Stanley & Co. Bids—Expected Nov. 28. Regis¬
tration—Scheduled

for

Nov.

Southern Pacific Co.

(10/10)

Sept. 5, 1962 it

was reported that the company plans to
$6,000,000 of 1-15 year equipment trust certificates.

Office—165

Broadway, ,N.

Underwriters—Competi¬

tive). Probable bidders: Salomon Brothers & Hutzler;
Halsey, Stuart & Co. Inc. Bids—Expected Oct. 10 (12
noon
EDST) at company's office.
\
.

St.,

Feb.

due

Probable bidders:

sell

New England Power Co.
May 8, 1962 it was reported that this utility plans to sell
$12,000,000 of 30-year first mortgage bonds in Novem¬
ber, 1962. Proceeds—For debt repayment and construc¬

★ Pacific Gas & Electric Co. (11/27)
Sept. 21, 1962 it was reported that this
utility plans to
sell $65,000,000 of first and
refunding mortgage bonds

Vegas Blvd., South, Las Vegas,

Underwriter—Eastman Dillon, Union Securities &

Co., N. Y.

tion.

■

Southern

Co. of America

reported that this subsidiary of
Southwest Gas Corp., plans to sell $2,000,000 of common

Van

Aug. 1, 1962 it was reported that the company plans to
sell $6,000,000 of bonds in the second
quarter of 1963.

natural

Nevada

com¬

two

Feb.

111. Under¬
writers—To be named. The last sale of bonds on
May 21,
1958 was made through First Boston
Corp. Other bidders
were:
Halsey, Stuart & Co. Inc.; White, Weld & Co.Merrill Lynch,
Pierce, Fenner & Smith, Inc. (jointly);
Eastman Dillon, Union Securities & Co.; Harriman Rip¬
ley & Co., Inc.-Glore, Forgan & Co. (jointly).
*

Lynch,

Business—Operation
systems extending from
Texas to the Chicago metropolitan area. Proceeds—For
expansion.
Office — 122 So. Michigan Ave., Chicago.
Underwriter—Dillon, Read & Co. Inc., New York City.
of

Decatur,

Co.-

International

12, 1962 it was reported"that this subsidiary of
Peoples Gas Light & Coke Co., plans to sell $35,000,000

Co.

Power

Office—Miami

Underwriter—Merrill

June

Feb. 28, 1962 it was reported that this
utility expects to
$25,000,000 of debt securities in late 1962 or early
1963. Office—500 South 27th
St.,

Interstate

Fla.

59,

Pierce, Fenher & Smith Inc., New* York.

sell

■

or-*

Sept. 9, 1958 agreement under

purposes.

of senior securities

The

ap¬

later disapproved this plan and ordered the airlines to
divest themselves of the stock. Price — About $20 per
share. Proceeds—To repay a $4,500,000 demand loan, and

-s.,

named.

to a share-for-share ex¬
change of 400,000 shares and the lease of each others jet
planes during their respective busiest seasons. The CAB

Highway Trailer Industries,/Inc.
Sept. 10, 1962 it was reported that this company plans
to raise some $2,500,000 by a rights offering to stock¬
holders. Authorized stock now consists of 2,000,000 $1.25
par common shares of which 714,086 shares are out¬
standing. Business—Manufacture of truck trailers, cargo
containers, telephone arid power line construction equip¬
ment, etc. Proceeds—To help form a new finance com¬
pany subsidiary. Office—250 Park Ave., N. Y. Under¬
be

won

which the two carriers agreed

stock in November.
Office—270 Peachtree Bldg., At¬
lanta, Ga. Underwriters—(Competitive). Probable bid¬
ders: Blyth & Co., Inc.; First Boston Corp.; Morgan
Stanley & Co.; Eastman Dillon, Union Securities & Co.Equitable Securities Corp. (jointly); Lehman Brothers.
Bids—Expected Nov. 7. \ Registration—Scheduled for

underwritten

was

Airway's Inc., subject to final
and the SEC. The stock was

of the Board

iginally obtained under

Georgia Power Co. (11/7)
12, 1962 it was reported that this subsidiary of
the Southern Co. plans to offer $7,000,000 of preferred

was

be named. The last bond issue

National Airlines, Inc.
May 8,1961, it was reported that the CAB had approved
the company's plan to sell publicly 400,000 shares of

On Jan.

pany

was

competi¬
tive bidding on Dec. 3, 1958 by Eastman
Dillon, Union
Securities & Co. Other bidders were: Blyth & Co., Inc.*
Merrill Lynch, Pierce, Fenner & Smith Inc.,
(jointly);
Halsey, Stuart & Co. Inc.; Equitable Securities Corp.

Oct. 5.

writers—To

Utilities Co. / /;

reported that this company plans
to sell $12,000,000 of 25-year first mortgage bonds in
late 1962 or early 1963. Proceeds—For construction. Of¬
fice—831 Second Ave., S., Minneapolis. Underwriters—

Georgia Power Co.,, (11/7)
On Jan. 12, 1962 it was reported that this subsidiary of
the Southern Co. plans to offer $23,000,000 30-year first
mortgage bonds in November.
Office—270 Peachtree
Bldg., Atlanta, Ga. Underwriters—(Competitive). Prob¬
able bidders: Halsey, Stuart & Co., Inc.; Harriman Rip¬
ley & Co., Inc.; Blyth & Co., Inc.; Kidder, Peabody &
Co.-Shields & Co. (jointly); Equitable Securities Corp.Eastman Dillon, Union Securities & Co. (jointly); First
Boston Corp.; Lehman Brothers; Morgan Stanley & Co.
Bids—Expected Nov. 7.
Registration—Scheduled for

Oct. 5.

Montana-Dakota

$6,000,000 convertible debentures of

Co.

for Nov. 21.

Major Realty Corp., an affiliate. Office—223 East Alleg¬
hany Ave., Philadelphia. Underwriter—To be named.
The last rights offering in December 1957 was under¬
written by Eastman Dillon, Union Securities & Co.,
New York.

(jointly); Blyth & Co., Inc. Bids—Ex¬
pected Nov, 27, 1962. Information Meeting—Scheduled

tion rights on a l-for-10 basis. Price—By amendment.
Business—Development and operation of shopping cen¬

ters. Proceeds—To retire outstanding 6 %

Kentucky Utilities Co.
Aug. 1, 1962 it was reported that this utility plans to
sell approximately $15,000,000 of 30-year first mortgage
bonds, in the first quarter of 1963. Office—120 So. Lime¬
stone St., Lexington, Ky. Underwriters—(Competitive).
Probable biddersBlyth & Co., Inc.; Halsey, Stuart &
Co. Inc.; Kidder, Peabody & Co.-White, Weld & Co.
(jointly); Eastman Dillon, Union Securities & Co.-Merrill Lynch,; Pierce,. Fenner & Smith Inc. (jointly).
Louisville & Nashville RR. (11/14) <
^
Aug. 28, 1962 it was reported that this road is consider¬
ing the issuance of $25,000,000 of collateral trust bonds
due 1987, subject to ICC approval.
Office — 220 E.
42nd St., New York. Underwriters—(Competitive). Prob¬
able bidders: White, Weld & Co.-Salomon Brothers &
Hutzler (jointly); Halsey, Stuart & Co. Inc.;
Morgan
Stanley & Co. Bids—Expected Nov. 14.

March
to

promotion of economic reconstruction and industrial de¬
velopment. Office—Tokyo, Japan. Underwriters — First
Boston Corp.; Dillon, Read & Co. Inc.;
Smith, Barney &
Co., Inc., N. Y.

Southern Union

Gas

Co.

Aug. 15, 1962 it was reported that this utility plans a
rights offering of $10,000,000 of convertible preferred
stock in the first quarter of 1963. Office—1507 Pacific
Ave., Dallas. Underwriters — To be named. The last
rights offering of preferred stock in April 1959 was
handled by Snow, Sweeny & Co., Inc., N. Y., and A. C.
Allyn & Co., Chicago.
<
•■../
<
< :
;. .'
.

Southwest Gas

Corp.
Sept. 11, 1962 it was reported that this company plans
to offer stockholders the right to subscribe for about
205,000 common shares of Nevada Northern Gas Co., a
subsidiary, on the basis of two Nevada shares for each
nine

Southwest

Gas

convertible

Gas

securities

held.

Holders of Southwest

will

receive

proportionate
subscription rights without having to convert their hold¬
ings. Office—2011 Las Vegas Blvd., South, Las Vegas,
Nev. Underwriter—Eastman Dillon, Union Securities &
Co., New York.
...
<

Washington Gas Light Co.
Aug. 1, 1962 it

was reported that this
company plans to
$12,000,000 of 25-year bonds,-in the second quarter
1963.
Office—1100 H. St., N. W., Washington, D. C.

sell
of

Underwriters—(Competitive): Probable bidders: East¬
man
Dillon, Union Securities & Co.; Equitable Securities
Corp.; Kidder, Peabody & Co.; First Boston Corp.; Hal¬
sey,

Stuart & Co. Inc.

Western Light & Telephone Co., Inc.
Aug. 1, 1962 it was reported that the company plans to
sell
a

approximately $5,000,000 of common stock through
rights offering to stockholders, in the second quarter
1963.

Office—2015

Forest

Underwriter—To be named.

January, 1957,
San Francisco.

was

Ave.,

The

Great

Bend,

Kan.

last rights offering in

underwritten by Dean Witter & Co*

The Commercial and Financial Chronicle

(1338)

An Investment No One

increased

unexpected

By Roger Babson

;

vise

you

on.

Most

and

refers to the

and.

changes can be made and to the savings in cost of having

;

designated, rather than

sonally

per¬

thing to his

and

cially

religion

since

only hope for

you."

disturbed
is

the

adult

personal

man

will.

and

Most

duty of

people

basically, and yet I
surprised

woman

the

every

make

realize

this

constantly

number

in¬

telligent folk who "just don't get
think

it."

around

about
look

cannot

Nobody likes

death,
at

without

papers

and

the

still

daily

one

news¬

realizing

how

the

other hazards of civilization.

live to

but you

might die tomorrow. Let

tell you why I think it is all-

important to
by

You

ripe old age,

very

protect

will, whatever

estate

your

will

nity

definite

choosing

friendly

having

executor

some

done

tion

rather

than

an ac¬

quaintance of his with whom
might

not

satisfied,

you

XLvyou

die intestate and the court has to
disburse
up

necessity for
costs
your
own

fears.;

will

thousands

and

Your
use

executor

your

beneficiaries

property at

can

securities

fair value instead
u

own

cir¬

executor,

discretionary

also,

powers

can

that

court appointee would not possess.

may

dollars

be¬

urge

will to

lars.

Find

give him

save

few dol¬

reputable

lawyer,

complete list

the

your

will

leave

principal

can

you

in trust

money

unequal

have the

the

children

amounts

among

heirp, where' tie ^peed
It should

years

that

resident of your state)

able

affairs, and
or

your

disburse

to your

the

particularly
your state.
you,

court-

your

dur¬

can

will

amount

each

wife, for instance,

pending final settlement. This

can

to the laws in

It is

good idea to have at least

three carbon copies of your will
that your

can

suggested

executor

familiarize himself with your

personal
remain

can

box

be put

for

reference,
with

your

Berry

formerly

was

curities,

Md.—Atlantic

Inc.,

Building.

Old

Morris

principal.

;

Town

Se¬

and

own

Gavin

George

Jaines

Distributors.
NEW

BROOKLYN,

N. Y.

Irwin

—

Inc.,

Co.,

Nineteenth Street.

—

2245

East

Road. John Roland

Samuel

—

CHICAGO, 111.—Cutler & Co., 10

Horace

Secretary.

Mr.

Holcomb

Cutler

was

EAST

ORANGE, N. J.
Partners

William

are

Seventy-Seventh* Street.

Irving Fields, President, and

officers

Axtel

out

will:

fine

time,

you

will

turn

investment

vo'

you.

for

FOREST

HILLS, N. Y.

national/
110-20

and

formerly

Planning

Investment

Corp.
Inter¬

—

West

Jay &

Com¬

OsborrL Road.

Mr.

and

with

Coleman

were

Meeham

formerly

Co.

;

Mr,

Smith;;%a^ ' Vrfh rMetrill' Lynch,
Pierce, Fenner & Smith Inc.
/

•

-vV,.

;

...

v..,'v;.;• ■■*!•''.yx-

Co., 230 Lakeview Drive. I. Barry
Gibbs .is sole proprietor;
*

SMITHTOWN, N. Y.—Raymond J.

FLUSHING, N. Y.—Axtel Agency

Secretary

Jenkins, is sole
' •'''
;v
i

ROME, N. Y.—1 Barry Gibbs

FLUSHING, N. Y.—John Rohaly,

were

a n

Doerrler and Maureen Doerrler.

Gardner,

and Secretary; and D; Lee
Smith, Vice-President. Mr. Dodd

Doerrler Investment Co., 519 Main

Street.

dent

III,*

pre¬

—

222

346 Omaha

Officers are Jay F. Dodd; Presi¬
dent; R. S-. Coleman, Vice-Presi¬

Street. William B.

Both

PHOENIX, Ariz.
pany,

Cutler is President and Treasurer,
and

—

proprietor.

Hochstein, 2922 Nostrand Avenue.

South La Salle

Va.

Jenkins & Associates,

;

BROOKLYN, N. Y.

Treasurer.

make

Inter¬

—

Development

Andrews

much

should

CITY

Fund

Corporation, 20 Exchange Pliace.

Leonard

this

YORK

continental

NORFOLK,

tained. Even if you have not very

are

money

BROOKLYN,

bank

receipt therefor ob¬

Tarlow, 599 East Seventh Street.

Corp., 75-03 Main Street. Officers

officers Of Arnold Bern-

are

Colucci, 1038 Broadway.

original should be left with your
and

is
President;
Vice-President;
Huxley, Secretary.

Berg,

hard & Co*.and Value Line Fund

37-55

The

Vah*e Line

—

Watsorr

David

and

All

117 Norway Road,

N. Y.

„

BANGOR, Me.—Paul H. Blinkin-

one;; can

lawyer.

Effective

—

Securities, Inc;, 5 East 44th Street.

BROOKLYN,

CITY

NEW YORK CITY

Bank

Wexler

YORK

Co.

BALTIMORE,

your

Hafold

17, 1962, the firm name of
with Joel, Zuch & Co., 39 Broadway,
was
changed to Martin J. Joel/

viously with Glore, Forgan & Co.

safe-deposit

for

document.

will explain any technicalities to

intentions; One

your

certain

rec¬

ing this period. An executor

month

mentioned

take

heirs might have

witnesses should not include those

could

nothing to live

authorized

signature;, preferably

your

clearly

appointed executor to settle

little

be greater than that of

may

ognized, too,
two

affix
can

or other chosen
people. You can,
iLypu .wish, distribute your prop¬

erty

should be

,»

—

Pasternick, 668 Fifth Avenue;

Berry, Secretary-Treasurer.

not to try to make

you

car*

full income for life and then have

your own

through

others.

your

some

Important

■

CITY

Sept.

sopy

will

that the bereaved

some

appointing

of cash.

your

Under

Lawyer

put your wishes
assets hurriedly
into clear legal shape.
He will
time of depression.
tell you to have the will signed
Permit Special Provisions by three witnesses who watch you

during

the

by making

your executor

liquidating

run

avoided

Your estate

Reputable

would

you

with other people, and thus avoid

can

bond. Most of these

executor.

your

want

you

Howard

Mutual Funds of America.

So don't for¬

fee giv¬ gifts you want to make, and des¬
whom you want for an
en time through
your will to use ignate
his best judgment and consult executor. Any good lawyer (he

including

costs,

can

cumstances,
give

estate,

your

lot

yourself, without litiga¬

arrange

that
that

way

etc.

relatives.

things

the

them

Only

advance

judge appoint

friends
the

can

furniture,

President;

YORK

NEW

Mr.

to the

owe

work of the church.

Executor

gives you the opportu¬

personal freedom—we

have

get your church in your will. ;;

Wills
Select Your Own

NEW

hospitals,

disposition of certain articles

age.

your

will

your

schools,

614

Street. Gordon B. Gershman

principal. .

Opipenheimer, Vice-President; afid

Practically

everything of value that
—democracy,

Plan-:

Corporation of Atlanta,

Berry

the

clothing,

saved

may

out

56th

Ga.—Investors

Pauley Place, Northeast. Milton O.

unsettled; and

our

world.

still

cause

untimely

and

ning

some¬

the

end

reach

sell,

directions

through automobile smashups and

many

for example, decide what

can,

property

NEW FIRMS

ATLANTA,

her church, espe¬

supplemental to similar notices appearing elsewhere in this issue

are

they

these

leave

advise* that it will be a "fine investment for*

but

will.. Every man

should

woman

court designated executor;

that

remember,

unless there is

with which

ease

favorite

charities

and

have

organizations will receive nothing

doing it properly. He suggests using a lawyer instead of fore¬

going the benefit of skilled counsel;
*

These items

people

intend

capsulates the multifold advantages of making out a will

Current News in the Field

be made by you at

icils which your lawyer will ad¬

churches
Mr. Babson

trouble.

can

Thursday, September 27, 1962

Changes

time by adding proper cod¬

any

Can Afford to Ignore
.

will

your

is illness

if there

Company,

Serry, 110 West Main Street.
y.

SOUTHAMPTON, N. Y.—Anthony
Caruso,.49 Main Street.

.-/I

VALLEY STREAM, N. Y.—Luis F.
Jose M. Martinez,

and

ship, 160 Ash- Street.

partner¬

;

NEW BRANCHES

Seventy-first Road. Henry

R. Goldschneider is sole proprietor.

CORAL

GABLES, Fla.

—

Allyn & Co., members of the;New
FT.

—

Bal¬

York

Plans, Inc.,

2787

principal stock exchanges*, is

LAUDERDALE, Fla.

anced

Financial

Oakland Park Boulevard. Officers
Jack

are

The I.BA's

Roy

Hunt,

President;

Finnell,; Vice-President;

and Richard B.

Morgan, Secretary

and Treasurer.

50th ANNIVERSARY

LITTLE

Avenue.

Since the inception of the Investment Bankers
Association's annual
vention

years

ago,

the

CHRONICLE

reputation of affording the
age

has

con¬

with; Irwin

eighth

Weiss, formerly

Karp

Co.,

sole

proprietor.

most .complete editorial and pictorial

cover¬

Anniversary Convention will

held

November

—

Ed Harris,

Co., and Merrill Lynch, Pierce,

Fenner

Smith Incorporated.

YORK

CITY

YORK

cover¬

space

Street.

1962.

Just

call

write—

NEW

The COMMERCIAL and

Se¬

PARK PLACE

.NEW YORK 7, NEW YORK
REctor

2-9570

and

Lester

dents;

and

John¬

This

located

CITY—Ambassador

David

Resident

newest

Allyn

2423

of¬

LeJeune

Anderson, the staff of Regis¬

tered

Representatives

includes:

Bobroff, Roy Chorba-

Gliozzo, Rowland

Holmberg, Harvey
R.

Donald

Karter,

Moclesitt?

III,

Jame? M.
Carmine D. Nigro,

Sochet, and Bertram Schild.

East

40th

Moss,

Laurence

Kennedy,

—

Miner, Inc., 28 Diamond

Spring Road. Armando Castellini
is

resident Manager.

;

LONDON, Eng.—Filor, Billiard

the

firm's foreign

repre¬

sentative.

St.

Camen, Presi¬

Smyth, 8 Walton Street. Jesse B.

dent; Max Halpern, Howard Stone

FINANCIAL CHRONICLE

Coral

Road, Coral Gables. In addition to

Frank

M.■' Rose

Corp.,

are

office

Anderson

DENVILLE,

YORK

Officers

CITY—R.

Robert

principal*

Francis T.

—

Hayes, 475 Fifth Avenue.

Investors

fice

Reid

Gables

Manager.

Trotter,

curities Corporation, 250 West 57th

their

;

Philip

Ira
NEW

NEW

Coral

the

jian, Frank X.

formerly with Einer Paul¬

Investment Securities, Walston

December 20, 1962.

Advertisers interested in
being associated with the most complete
age of the forthcoming I. B. A. Convention should
reserve

office

Nathan

25-30, at Hollywood Beach Hotel, Hollywood, Florida. The CHRONICLE
will publish its
round-up special supplement on this historic event on

requirements by December

opening

Mr.

ALTOS,' Calif.

was

ex¬

Gables*, Personnel formerly 'with

ris

of these significant meetings.

other

panding its operations in Florida

175 South Antonio Road. Mr. Har¬

sen

This year's Golden

Empire

—

continuously enjoyed the
LOS

and

Lane; Sjpace & Co., Inc.yhave
joined the Allyn organization with

262-04 Fifthy

Joel-

Exchange

son,

NECK, N. Y.

Investors,

Stock

Vice-Presi¬

MANCHESTER, N.
Allyn

Co*,

1015

—

Elm

Street.

Norton R.

Charles

Amdur,

Phelps is Manager, and
Samra, Associate Manager.

Secretary and Treasurer. All the

NEW

officers, except Mr. Amdur,.- were

Growth Company, 2008 St. Claude

ORLEANS, La.

formerly with Glickman Servicing

Avenue.

Corp.

—

Florida

resident Manager.

NEW

'
YORK

Servicing

CITY

—

Cambridge

Corporation,

120

East

NILES,

Clarence

Mich.

Securities

—

Wagner

Albert McGann

Company,

224 •? East

Volume

196

Number

6198

The Commercial and Financial Chronicle

(1339)
Main Street. Thomas E. Blackburn
is Manager.

Lynch, Pierce,
Incorporated.

PEORIA, 111.—Tabor & Co., Board

CLEVELAND, Ohio —Edward P.

LOS

of Trade

Prescott, Senior Partner of Pres¬

Kraai

cott

come

Building. F. Thomas Mc-

Intyre is resident Manager.

and

ROSA, Calif. —Caldwell

Investment

Company,

Wall Street. He

Company,

Cleveland

banking

other

formerly with

was

Bankers and SBA Team Up
On Loans to Small Business

been elected

is resident

Sam

and

Match

connected

have

with

be¬

Hayden,

&YCo. Inc., 611 Wilshire
Blvd. Mr. Kraai was formerly with
Eastman Dillon, Union Securities

major stock exchanges, has

lege Avenue. $. Marshall Peterson

ANGELES, Calif. —John T.

Stone

firm

and member of the New York and

Col¬

1112

Smith

E. F. HuttOn & Company.

investment

based

SANTA

Fenner

& Co.

Mr. Match

was

Term loans to small business used to
purchase new equipment will
be made available under a new
program jointly worked out by the
American Bankers Association and the Small Business
Administra¬

with Garat

industries, Inc. He replaces John

Manager.

SAO PAULO, Brazil

Hirsch &

—

Vee

Bing i Doo

tive

••

;

Dicker

ciated

firm's

the,

representative. ;

has

become

with'

the

1409

has

asso¬

Broadway,

Manager,
>.Y Mr.

has become associated with Harris,

become

•

Town

sales

was '

Travel

hope is to decrease government loans.

with
A

Frederick*

Inc.,

800

YORK

the

nounced

to provide term
loans for small businesses was an¬

North Marshall Street.

NEW

amount-

new

Thus,

recently by Sam M.Flem¬
President of The American

ing,

CITY —Rittmaster,

program

manager

Casuals

on Oct. 1 * will admit
Sol Leit and Morton S. Schulman

Co. in Wall Street.

after

investment firm of D. H. Blair &

mentSectMti^ta
City, Fla., and prior thereto
Sellers, Doe & Bonham;

with

1953

before joining the

1959,

CLEVELAND, Ohio
Tidd is

BALTIMORE, Md—Kidder, Pea-

Thomas E.4

—

Sixth Building.
formerly with Gunn,
York* Stock Exchange and other
Carey & Roulstott, Inc.
leading exchanges, announce that
John.E.

Rossell, Jr. is

office,
Mercantile frust. Building, as a
registered representative. ;;

West Point, N. Y., u^ss of

emy at
1941.

Shylo is

in Europe,

well

& Co.

have

BOSTON, Mass. — Christopher
W. B. Coe is now with Hutchins,
Mixter &, Parkinson, 60, State St.,
members of the New York and

Murch

ing,

Stock

staff

the

Douglass is
Wagner $

Hamilton

Chester

Co.,

Alamo

members

Stock

National

the

Exchange,

Oct. 1

FRANCISCO, Calif.-Nicho-

las Suzick is

Hutton

Company,

160

Montgomery Street. He was for¬
5JSast Long Street..
merly with Dean Witter & Co.

He
formerly Assistant Treasurer.

Mr. Hamilton is. also Treasurer of

the. Harvard Graduate School
Business Administration.

Richard

of
v

Knox has

become connected with

Gallagher-Roach

BOSTON,

Mass.—Alfred

L. NarLynch,
Pierce, Fenner & Smith Inc., 125
High Street.
He was formerly
dini

now

with

with Reynolds &

Co.

BOSTON,

Mass.

Proctor

now

Merrill

—

associated

Carleton

with

Proctor, Cook & Co., 10 Post Of¬
fice Square, members of the New
York and Boston Stock Exchanges.
He was previously with Coburn
&

Middlebrook, Incorporated. ;1

BOSTON, Mass.
burgh

has

—

joined

Paul

the

staff

Inc.,

West Broad Street. He Was former¬

ly with Paine, Webber, Jackson &
Curtis.

DALLAS, Texas—Gerald J. Camp¬
has joined the research de¬
partment Of Eppler, Guerin &

bell

Turner,

Inc.,

Fidelity Union
Tower, members, of the New York
Stock

Exchange^as

Investment

'; Y;YT1"YY:Y yYY« Y:

analyst.

•■

Y Mr. Campbell, previously Was a
news

Burns

writer for The Dai-

las Times Herald for three years.

S. Smithers &

Williams

dent

securities

the

years.

the

located

BROOKLINE, Mass.—Donald Au¬

Seventeenth

gustus has been added to the staff
L. S. Braverman & Co., 325

the New York Stock Exchange.

Harvard

ELYRIA, Ohio—Lawrence B. Lan¬

members

Street.

cashire

CHICAGO, 111.—Straus, Blosser

McDowell, 39 South La Salle St.,
members

Midwest

Stock

announced

tered

the

that

New

York

Exchanges,
four

and

have

new

their staff in Chicago.

regis¬

had

representatives

joined

Jacqueline

Smith

office

and

Samuel A. Bell and Richard Lazer
are

the

office.

company's Hyde Park
1
" "

CLEVELAND,
is

now

Ohio

—

Fred

associated

with

Co.,

with

Saunders,

& Co.

Stiver

has

staff
117

Boettcher

West

Ravenscroft

been

Oak

added
and

Com¬

Street.

Mr.

formerly in the
securities business in Illinois.
was

GREENSBORO, N. C.—A. B. Mc¬
Lean has been added to the

staff

Jef¬

McDaniel,

Lewis

will
for

make
the

and

SBA

ment
ness

funds

the

will

letter

loans

The

role."

Horne

addressed

similar

members in which

to ABA

belief that the pro¬

will be mutually helpful to
the banks, to their small business
customers, and to the government
gram

before the

participation

bank's

the

has

firm

Mr.
been

believe

"We

program many

will

must

able

business

that

under

give their small
greater serv¬

customers

ice by

amount equal to the

financing—which they

bank's loan
with

participating

new

providing them with term
might not

otherwise

loans to be repaid

part of the

provide."

loan.

have

able

been

Co.,

It Can Not... But It Can

was

Vice-President

into

SOUTHERN
G.

"Your government cannot
Y
~

make jobs. But it can
its policies and actions
helping unleash the dynamic forces for growth
private enterprise, the creative strength of

direct
to

—

PINES, N. C.—John
McCullen, Jr., has become con¬

nected with Eastman Dillon, Union
Securities & Co., 135 West New

He was formerly

and is directing

—

America.
Y. "Y". Y^YY

Y'-'Y ;

"The

the

Co.,

Stock

" Y

:;"Y;Y;

government itself can no more build all the

create all the people's
— open the way for
greatly expanded private investment and construc¬
tion throughout the state." — Governor Nelson A.
people's houses than it
jobs. But it

can

and it must

Rockefeller.
Governor Rockefeller's

tions lend

which

Exchange

the

New

York

have

appointed
Marven O. Bowman, Jr. as an
account executive for the Youngstown Area. The firm, with main
offices in Pittsburgh, Pa., is also
a member of the Pittsburgh Stock
Exchange, an associate member of
the
American
Stock
Exchange,
and

ferson

Building, members of the
Midwest Stock Exchange.

members

associate

member

the

Philadelphia - Baltimore-Washington Stock Exchange.

Headquarters for Richards &
in the Youngstown area will
be 95 Algonquin Drive.
Co.

this

thousands of banks

be the greater of (a) 50% of the
total amount of the loan or (b) an

since

Virginia invest¬
Scott, Horner & Co.

this

private lenders increas¬
in keeping with their

he stated his

SBA starts collecting on its share
of the principal.
Y

loans

Mr.

will

repaid

for

lending in><the small busi¬
with commercial banks

tradtional

provide a
large share of the loan funds. The

banks

credit

area,

and other

ing

service

and

Government

clear Presidential ambi¬

wide interest to

reveals

the

manner

anything he

his

may say

thinking about

•

COLLINS, Colo.—Gerald W.

Ravenscroft

en¬

new Simplified Bank
Participation Plan,
With
Maturity
Feature, banks

Early

YOUNGSTOWN, 111.—Richards &
FT.

Paine, Webber, Jackson & Curtis,
Union
Commerce
Building.
He LA JOLLA, Calif. — Richard J.
was formerly with Prescott &
Co., DeGroot has joined the staff of
and
prior thereto with Merrill Shearson, Hammill & Co., 1125

succeeds

and
Director, was merged
Y Francis I. duPont & Co.

Hirsch

will

with R. S. Dickson & Co.

pany,

associated with the

Pierre

which

and

Monroe

With

when

for

Limited Part¬

formerly

Engelman

are

with

eral

important segment of the Nation's
economy."
"Ultimately we hope that the
program will produce the desir¬
able result 'Of decreasing govern¬

Under the
Loan

Mr. Fleming urged their
participation in the pro¬
"so that we may give more

help to small business and alsore-emphasize the principle of pro¬
viding private rather than Fed¬

encour¬

their

Financial

Resi¬

Hampshire Ave.

the

downtown

now

share.

own

Southern

Elyria Savings &
Trust Building, members of the
Midwest Stock Exchange. He was

Lee Goosen Colbert and Tilden S.

firm's

gram

purpose

amount of
into these loans."

Barbara.

Monroe
Mr.

associated

1958,

firm,

Santa

Company,

828

the

business

He remains

ner

ment firm of

Street,

active

concerns

larger

liams, who joined the nationwide
investment firm in 1937, has been

affiliated with

and

extended

Fleming said. YIt should

California and Arizona offices of
Francis 1. duPont & Co. Mr. Wil¬

with Bache & Co.

•

retired

for

un¬

letter to all ABA member

banks,

able commercial banks to ch. nnei

Co.

has

Partner

Williams.

Boettcher

con¬

with
Bache
&
Co., 235
Montgomery Street. He was for¬
merly with Birr & Co., Inc. and

DENVER, Colo.—William F. AshMarkoff, Sterman & Gowell, Inc.,
by, Kenneth S. Essex, James Fitch,
79 Milk Street. He was
formerly Solon J. Lane and Orus J. Mat¬
are now

now

nected

Brooks

Y~:rv'::-:~YY' thews, Jr.

SBA

the

' Y SANTA
BARBARA, Calif.—Harry

; *Y;;/■

business

New-

Co.,

year

Administrator for

one which

business

two-fold

Mr.

connected with

now

its

SBA

deferring repayment of SBA'&par*
ticipation to thq late? maturities,"

SAN

account
a

Assistance.

Horne

aging greater commercial bank
participation in SBA loans and of

was
-

can

small

the

FRANCISCO,Calif.—Wilfred

Mr.

and

quali¬
by
commercial banks. "The approach
under this new SBA program has

fied

COLUMBUS, Ohio — Michael A. SAN
FRANCISCO, Calif.—Ray L.
Griley is now with Vercoe &
Seewer
is
now
with
Shearson,
the Fidelity .Group of Funds, in¬ Company, Huntington Bank Build-.. Hammill &
Co., 340 Sutter Street.
cluding Fidelity Fund, Puritan ing, members of the New York He was previously with J. Barth
Stock Exchange. He was formerly
Fund, Fidelity Capital Fund, and
& Co.
with Hayden, Miller & Co.
Fidelity Trend Fund.
He* is a
SAN
graduate of Hamilton College and
FRANCISCO, CaliforniaCOLUMBUS, Ohio — Donald F.
was

Fleming

Mr.

which

New

Co., 601 California St.

Sam M. Fleming

should make possible a great in¬
crease
in the amount of credit

TEXAS—Lentz,

formerly with Sutro & Co. -V

Thomas
affiliated with

now

Treasurer of the company.

Erickson is now affiliated with
Eastman Dillon, Union Securities

'«

Building,

SAN

COLUMBUS, Ohio -^H.

&
Research
Company,
Congress Street, has announced
of

with

formerly

was

the

of
the
ABA, under the
Chairmanship
of
Arthur
Max¬
well,
President,
First
National
Bank
of
Biddeford,
Biddeford,
Maine, and C. R. Lanman, Deputy

Bankers Association, and John E.
Horne, Administrator of the Small
Business Administration.

With Singer, Dearie &
v

for

mittee

will admit Alma Leeth Taliaferro
to limited partnership.

Mass. —Fidelity Man¬

election

associated

ANTONIO,

York

Bernstein & Co.

agement

been

The program was developed by
Small Business Credit Com¬

Zilka, Smither & Co., Inc.# hailed the program

Newton

g ;

Stock Exchanges. He was
formerly with Estabrook & Co. # Scribner; Mr. Freeman was with

become

SAN

the New York
Exchange. Mr. Cruciger Was

forineiTy

had

the

Walston & Co., inc., 901 Southwest
with

Co., Inc., Hanna Build¬

members

Boston

joined

paid balance of the SBA portion
of the loan—plus the regular in¬

admit

Neb.—Charles J. Vana
the staff of Storz-

Washington St. He

in various

man

the

will

joined

has
.

parts of the United States. He left CLEVELAND, Ohio—William O.
service with the rank of Colonel,' Cruciger, Jr. and Paul R. Free¬

BOSTON,

years

The Far East, and the

Middle East

Oct.

John E. Horne

with L. A. Gaunter

now

Exchange,

PORTLAND, Ore.—John C. May

in the & Co., Park Building. He was
Field Artillery and. General Staff previously with Saunders, Stiver
20

served

lected

Wachob-Bender Co., 3624 Farnam

Ohio—Anthony J.

CLEVELAND,

bank's
.

one-half of 1%

of the New York Stock

Street.

Building. He was formerly
with Ball, Burge & NrauS.
,

Military Acad¬

total

members

OMAHA,

Ohio

graduated from

States

the United

was

the

will receive from the interest col¬

has

Mr, Rossell

j
YY' Y
servicing the loan, the bank

terest

was

CLEVELAND, Ohio — Robert iT^
Shuber
has joined
the staff of
Wcstheimer and Company, East

now asso¬

ciated with their Baltimore

the

repaid.

; y

Harry Aronson to partnership.

National City East

body^ (Don members of the New

•

For

with Goodbody & Co.,

now

participating

50%

NEW YORK CITY — Zuckerman,
Smith
&
Co., 30 Broad Street,

was
*

partnership,

of'

loan. The SBA would not receive
its repayment of principal " until

i Exchange,

from

Upham & Co.* 44 Broad Street,
Northwest. He was formerly Pres¬
ided of Espy- & Smith Invest¬

bank

extent

straight - ten-year
maturity loan would be repaid
during the first five years of the

Voisin# Co., 260 Madison Avenue,
members of the New York Stock

Dicker

connected

Banks will make and service the loans for the SBA
and provide

the bulk of the funds. Ultimate

Co.,

it is announced by Ernest A. Beck,

ATLANTA, Ga.—William G. Espy

tion.

Registered Representa-* Splaine

office of Francis I. duPont &

PERSONNEL

Polonitza, Inc.

MILWAUKEE, Wis.—John F. Dill

Kruse, another Prescott partner.

Jack

Co., 255 Rua Barao de Itapetininga.

director of Curtis

current matters.

is encouraging to observe that he

It
the

fact

that "government cannot

"build all the
How to

people's houses."

interpret and appraise his "but it can

statements must be determined

is done

by what precisely

proposed.

There have been many
with

recognizes

create jobs" or

natural

forces

disavowals of interference
many

politicians of late

years—only to have good words dishonored by bad
deeds. We

can

will prove an

only hope that Governor Rockefeller

exception.

The Commercial and Financial Chronicle

(1340)

«..

Thursday, September 27, 1962

Oct.

WASHINGTON AND YOU

9-10,

1962

(Minneapolis,

Minn.)
Minnesota
Bankers

behind-the-scenes interpretations

Oct.

Group

11-12,

1962

Association

from the nation's capital

Firms

Investment

Association Meeting.

Board

(Los

Stock

Angeles)

Exchange

of Governors

meet¬

ing at the Ambassador Hotel.
Oct. 13, 1962

WASHINGTON,
housing

but seemingly more

has

become

FDIC,

most

fixture

TVA, CCC and the

REA,

PHA

der

sion

Public

cent

housing

The

Agency,

PHA

dwellings, a';-.
However
is

going

the

elderly
time?

grammed

pro¬

about

that

half

Between

50%

60%

and

in¬

$1,C0G
About

than

$1,000 to

half

have

$2,000

assets

National
ciation

less

the

says

presently

person

$82

those

for

benefit

average

security is about $72
The

There

all

sent

about

are

states

lahoma

and

local

1,600

authorities.

They

execpt

repre¬

Utah,

Wyoming. The legis¬

latures of these states have

paved
local

the

Ok¬

for

way

authorities.

never

creation
this

And

retired

that

while

living

"I'd have

2,the

public

determine

its

faith in this company if they didn't pay

population

ing supply.
there

total hous¬

our

15,000,000

people

living in "substandard dwellings."

and

McGuire's

housing

new

going

are

PHA

authority
ahead.

program

there is

ly $4

bonds
the

for

Already

outstanding approximate¬

billion

local

issued

of bonds

authorities

but

issued

guaranteed

directed

being

from

San

Antonio, Tex., the

commissioner

eighth
agency

debt
in

have

our

growing national

described

housing

"back door

the

authority

billions

bonds

woman

Prior

national

spending" and thus

debt

public

position.

the

returning

to her

native

she directed

housings

Mrs.

•

Housing

Act

-T

ties, is making

the

subsidized

larly

for

country

housing,

the

that

particu¬

elderly

the

and

great humanitarian

the

payment

agreed

all

paid

amounts

by the public

think that the time

bonds

various

"when

stance,

the

through

housing

interest

the

authorities

rates.

rate

For

interest

in¬
for

bonds issued at Toledo, Ohio, and
those

issued

may very

Baltimore

well be

maintain

that

may

security

basic

the

annual

pledges
,.

contribu'

•

Yet

the

vironment

faith

and

whether

"low"

Housing

Authority

taxes

the

The

bonds

Federal

bonds

"high."

provisions

Housing Act

for

.fVl

OAlinnn

Current

years.

callable in

whole,

are

income
the

1937

when

date.

They

call

issues

part,

or in

redeemed

are

provisions, at

104%

years

from

their

not

later

retired
etc.

from

called

;

•

and

later

not

Federal

103%

decent

that

en¬

cannot

too

all

has

come

the

today,
others

living in

sham

those

willing to accept

governmental guarantees and sub¬
sidies

that

private

the

remove

enterprise,

'socialism'

Low

housing

there are about 5,000,000
occupying low rent hous¬

used

risk

but

when

are

rent

the

Federal

housing

yearly

are

completed and occupied, Fed¬

eral financial

yearly

help is restricted

subsidy

rents to be

enable

low

Approximately half
Units that

are

of the
-

being planned

un-

(New York City)
of

Stock
Exchange
Meeting of memorganizational meeting

Annual

and

the

University Club.

with

They

for

week,

little

from
in

taxes

The

CHRONICLE

lish

Dec. 20

will

pub¬

special pic¬

torial

Supplement
g i v i n g
complete coverage to the pro¬
ceedings at the Convention.
Nov.

29, 1962

(Chicago, 111.)

Investment

are

years.

}of

those

presented

those

of the

,0„

„

Apnl 3~4"5' 1963 <DalIas> Tex.)
Texas Group Investment Bankers
Association Convention at tha

author only,]

Statler Hilton Hotel.

April

27-May
Mass.)

COMING

National

1963
■

Association

Savings Banks 43rd

EVENTS

IN INVESTMENT FIELD

property

the

Investment
Bankers
Association
Annual Convention at Hollywood
Beach Hotel.

states

(Boston*

"
of

Mutual

annual

con¬

ference at the Hotel Statler.

May 12-15, 1963 (Chicago, 111.)
Financial Analysts Federation an¬
nual
convention
at
the Palmer
House.

The

the

Federal

Housing Adminis¬

Club

(Philadelphia, Pa.)

devoted

the

payment

Oct. 3, 1962

York

Group

Investment

for

issuance of

solely

new

bonds should

$5,000

denominations

will

substantial

4-5, 1962

Waste

Group Investment

Our New

Bankers Association Meeting.

the

long

result

run

savings to

PHA

printing and servicing costs.
PHA rents

and

Oct.

8, 1962

are

based

not

the

family
size

Group

8-9, 1962

Firms

Fall

Investment

Bankers Association Meeting.

Association

telephone number is

CAnal 6-4592

(Detroit, Mich.)

Michigan

Oct.

York

Films

King

(Cleveland, Ohio)

$1,000 denominations.

Issuance of the larger denomina¬

Oct.

Northern Ohio

LERNER & CO., Inc.
Investment Securities

(San Francisco)

Stock

Exchange

Meeting at the Mark

Hopkins Hotel.

10 Post Office

Square, Boston 9, Mass.

Telephone
HUbbard

Teletype

2-1990

617

451-3438

the

together

Cove Vitamin & Pharmaceutical

s^1

Common

The

makes

guarantee
the

pro¬

through

tax-

housing

issues

projects.

Warrants

Common and

Warrants

Carl Marks & Co. Inc.
FOREIGN

Tax-Exemption

authority

and

Versapak Film & Packaging

SECURITIES

20 BROAD STREET

the

Official

gps*->y"

subsidy.

nature

local

Botany Industries
Maxson Electronics

Bankers Association Meeting.
Last year PHA decided that the

MARKETS

American Cement

(New York City)

The local community makes

Each

TRADING

New

bonds.

Attention Brokers and Dealers

Philadelphia 37th
outing and field day at
ited to $336,000,000 in annual con¬
the Huntingdon
Valley Country
tributions
to
the
PHA
housing
Club, Huntingdon Valley, Pa.
program. About half of the sum

income,

remove

Government

contribution

bonds

Sept. 28, 1962
Bond

annual

cry

housing costs

contribution

low-rent

gram.
a

Public

tration under current law is lim¬

governmental

public

Double
new

[The
do
cide

;

TEL: HANOVER 2-0050

Housing for the Elderly

n g

Analysts Society of
Chicago
luncheon
meeting.
views expressed in this article Speaker: Herbert R. Silverman,
necessariiy at any time coin. President, James Tatcott & Co.> f

exempt

exemption.

charged.

$45.75

was

1960

years,

from

who

paid by the tenants

with

ing under the so-called low-rent
program. After the homes

taxation, the bonds

tions

2,000,000 plus

public

where they are issued.

cour¬

have

the

expose

are

time

the

misery of slum existence."
persons

income

but the income has risen

being

exempt

income

little higher today.

average

'
to

including

under

than

date;
than

1960,

price of

;

addition

also

are

that

one

those

should

assistance

amended.

In addition to the

month. It is

are

after 15 years from their issuance

the

light, cooking fuel, water
and other utilities averaged $39 a

maYimnm

form with a max mum

coupon

rather than

think

who

behind

admitted

during the past two

The bonds currently issued

;

every

afford it.

from

the

business-housing in

age

exempt

except

purpose

authorities

full

lies

heat,

■

morally meaningful in this whole

credit of the Federal Government

pledged

the extent of taking and

spending public funds for

little different

interest rates.

McGuire,
community should be

permitted to exercise local auton¬

issued

local

vary

is past,"

said f Commissioner

omy to
The

program.

is pledged to

housing authority.

Jt%)

authority,

1949, the full faith and credit

of the United States

local

the

tions.

determined ef¬

inform

communi¬

many

$300,000,000,000.

the

McGuire, realizing PHA is

controversial

the

projects

San Antonio.

special obliga-

all families

are

bers
at

quarters required. Rents for fami-

The

life

occupy

children, is
Pursuant

tions

the

city of Washington,

fort

not part of the so-called
budgeted

be gen-

eral obligations or

created and the first

was

since

by Washington.
Critics of

may

PHA

Washington by Mrs. Marie C. Mc¬
Guire

various

the bonds

states vary,

;

Backed by U. S.

the

laws

of the bonds is one and the same.

Philosophy
PHA

Hundreds of millions of dollars

the

Because

Nevertheless,
Commissioner

to the pro¬

Nov. 25-30, 1962 (Hollywood, Fla.)

PHA estimates that
still

are

pub¬

of the Board of Governors. Dinner

president's salary out of petty cash."

states, it represents

only about 1% iof

,y.

;:v

the
our

is the

desires

own

needs.

than

will

coverage

Association

Administration

out

people

number of

Boca

special pic¬

Supplement

Nov. 14, 1962

month.

Housing

point

the

ceedings at the Convention.

retiring.

for

Nov. 22

Firms

it should be. Each state should

way

Convention

complete

housing in 1,600 communities, are
housing

(Boca Raton, Fla.)
Traders Asso¬

Security

torial

social

currently

couples si $120

people

Investment

CHRONICLE

lish

month, and

benefit

average

Public

Raton Hotel & Club.
The

for

Group

Nov. 4-9, 1962

$1,000.

PHA

Invest¬

Bankers Association Meeting.

range.

Oct. 26-28,1962 (Hot Springs, Va.)

Southeastern

while another 20%

year,

in the

Association

Bankers Association Meeting.

65 have incomes of less than

over

at the Americana Hotel.

Oct. 24, 1962 (Cincinnati, Ohio)
Ohio
Valley Group
Investment

those

Dinner

vention at the Sheraton Hotel..

families.

all

Annual

ment Clubs Twelfth Annual Con¬

runs

family

Association

8th

Oct. 19-20,1962 (Philadelphia, Pa.)

National

Average

over-65

(New York City)

Traders

York

Dance

housing

answer

this:

for

come

500,000

completed.

are

New

made

accelerated

being
PHA's

something

than 160,-

units

for

emphasis

for

about

housing

new

■'.

increase

rent

tenant population

450,000 when the
000

low

•^ A'''%

?''

than 515,-

produced

persons

housing

public

Why

reported

2,500,000

living in

now

Fi¬

Home

and

admis¬

Security

thority in the community.

are

recently

than

000

•

overall"; Housing

are

American

all

for
:

PHA, which is part of the

nance

that

plans go

expansion of "de¬

families."

the

days, is ob¬

serving its 25th year
forward for

created

New Deal

Roosevelt

Adminis¬

Housing

(PHA),

elderly

for

Application

this
The

for

use

directly to the local housing au¬

SEC.

tration

for

are

persons.

like the

governmental setup

our

Public

—

acceptable

states,

in^his country, once very

controversial

and

•

SPECIALISTS

Bought—Sold—Quoted

NEW YORK 5, N. Y.
TELETYPE 212-571-1685

MILL, THOMPSON & CO., INC.
,70 Wall Street, New York 5, N. Y.
Tel. WH 4-4540

Tele. 212 571-1708

The Commercial and Financial Chronicle

Thursday, September 27, 1962

When minutes count... at 1 Chase Manhattan Plaza
Working against time, the Municipal Bond Divi¬

The Chase Manhattan Bank is

sion of The Ghase Manhattan Bank and members

leading underwriters, distributors and dealers of:

group account come to a

final decision

the

STATE,

COUNTY,

PUBLIC

bid for

issue of

municipal bonds. After

corre¬

lating and interpreting developments in this highly

INTERNATIONAL

competitive market, the account is ready to tele¬

BANK

FEDERAL
FEDERAL

NATIONAL

FEDERAL

CHASE

MANHATTAN

Plaza, New York 15, New York

AND

NOTES

BONDS

LAND

BANKS

MORTGAGE

HOME

FOR

RECONSTRUCTION

(WORLD BANK)

INTERMEDIATE

BANKS

Head Office: 1 Chase Manhattan

BONDS

FOR

DEVELOPMENT

FEDERAL

THE

AGENCY

VALLEY AUTHORITY

U. S. GOVERNMENT INSURED MERCHANT MARINE BONDS

AND

phone in its bid.

of the nation's

MUNICIPAL BONDS AND NOTES

HOUSING

TENNESSEE

one

ASSOCIATION

CREDIT

LOAN

BANKS

COOPERATIVES

BANK

Member Federal Deposit Insurance Corporation

Volume

196

Number

6198

The Commercial and Financial Chronicle

Investment Banking: A Vital
Force in American Economy
By Curtis Hi Bingham,* President of the Investment Bankers
Association

of America, and President of Bingham, Walter and

Hurry, Inc., Los Angeles, Calif.
Praise for the municipal bond industry's efforts to improve itself and
to meet the challenge of raising capital is mingled with a reminder
to solve potential
kets

problems accompanying expanding municipal mar¬
they become problems. Mr. Bingham refers to the in¬

before

creasing sales to individuals and the problems which might arise as
adequate disclosure, selling techniques and practices. Noting that

great many more individuals
been the case in the re¬

than has

cent past. Unless I miss my guess,
this is going to present to your

segment of the industry new prob¬
lems of adequate disclosure, sell¬

this, it
to belabor
the
point - that the investment
banking business, as we all know
it, is a vital force in the American
hardly

group

such

seems necessary

economy. It seems to me that the
ing
techniques
and
practices, mere statement of the volume of
supervision and the like. I would capital funds which our business
be very hopeful that in thought¬
has funneled to industry and local
ful meetings and discussions such governments during the past year
as you are having here,
you will makes this point self-evident.
foresee, and devise the1 solutions to
The Figures
such
potential problems, before
You all know that in the munic¬
they become problems.
Now to a subject that warms my ipal field sales of bonds by states
heart—"Investment Banking as a and municipalities to finance con¬

Vital Force in the American Econ¬

struction

omy."

there is

continued to set

of public facilities
new

have

aggregate of about $8.5 billion
an aggregate of about

in 1961 and

$6.2 billion during the first eight
months of this year.

Exactly comparable figures are
available
in
the
corporate

not

but I think it is fair to say
corporate issuers tapped the
money market for some $13 billion
last year. It is equally fair to say
that our business, in one way or
another, played a major part in
this whole operation.
area,

that

When^annual

such as
jobs,
plant and equipment, public facilthese

are

figures

translated into

Continued

records, with

new

page

Federal regulation in this field, for good reason, he
urges
excellent record be continued by foreseeing and

this

devising the

solutions to potential situations ahead of time.
ment

Moreover, the invest¬

banking industry's spokesman refers to the Federal

ment's

capacity to

move

Govern¬

in where private sector fails and urges the

industry to act promptly to prevent further encroachment

as already
exemplified in Federally subsidized programs. Further, he urges still
greater efforts be expended in public relations and investor education
as

well

Competition

helping to
keen

remove

the impediments to private enterprise.
In

throughout

the

area

research,

men¬

all segments of our industry but
in the municipal area, particular¬

tion

ly, this competition has produced

Supplement. And our Education
Department has given due recog¬
nition to municipal training at the

class of

ex¬

should

Statistical

made

Bulletin

1BA

the

and

Monthly

perts
excep¬
tionally re¬

Institute of Investment Banking at

sponsive

the Wharton School and otherwise.

needs

the

profes¬
As
I

our

sion.
have

come

know

should

few

now

observations

cance

and

make

the

signifi¬
potential of this confer¬
on

itself, and congratulate all of
those who have been responsible
for bringing it about. We need to
do a lot more of this sort of thing
in our industry as a whole, as I
see
it, and I believe that events
are forcing the trend in that direc¬
ence

you

and

your

work,

lam
literally
amazed

its

volume

and

effectiveness.

This

confer¬

ence

prime

tion.
Curtis H. Bingham

As all of you

e x-

ample of your desire to maintain
this excellence.
As

over

the

program

for this two-day conference, there
seemed to me to be one possible

omission.

That is

spot for ap¬
propriate recognition and appre¬
ciation

Municipal Com¬
mittee for their efforts in making
this Conference possible.
our

Those of you

who have attended
municipal forums at White
Sulphur or Hollywood, or who
have read the reports of our Mu¬
nicipal Securities Committee and
our

its

sub-committees,

who have
had a chance to work directly on
any of these matters, will well
or

know the work of which I speak.

Those of you who have not had

these

opportunities will grasp, I
believe, from the discussions of
this Conference, something of the
great amount of effort which has
been expended and is being ex¬
pended on all of these problems
and
activities
in the municipal
area.
To mention just a few for
your

benefit, and not necessarily

in the order of their importance,
there are, in the area of business

education

procedures,

two

alike,

looked

highly

and

pro¬

motion:

(1) Recommendations for Com¬
putation of Principal and Interest;
(2) The book on Fundamentals

of Municipal Bonds;

firms

nor

alike.

well know

individualistic
are

are

ours

exactly

two firms

any

Our business

has not

run

been

noted for the mutual exchange

information

and

business.

statistics

about

operations, to put it mildly, I
believe our member firms,
general rule—at least until
very
recently—have
given
the
time and thought to long-range
planning and management prob¬
our

don't
a

lems

which

most

are

other

equally true of

characteristic

industries.
us as

This

group.

There

are
hopeful signs, how¬
that we are beginning to see
this picture in better perspective
and to do something about it in
all segments
of the business.
I
believe this Conference represents
a step forward in that direction.

ever,

You

have

had

Municipal
Forums
White
at
Sulphur and
Hollywood for many years. They
have become increasingly useful
in providing a forum where you
can
face up to problems of this
sort, and have thorough and frank
discussions of them.
You found,
however, that they provided in¬
adequate time for this sort of

WHERE THE

SECONDARY MARKET

your

thing, hence this conference where
you can devote two full days to
the consideration of a much wider

variety of subjects than would be
possible at one of you forums. In
addition, I suspect that, outside of
the formal sessions, many fruit¬

COMES FIRST
This

corner

of Wall Street is reserved for Dealers and Dealer-Banks

only. Our primary function is to facilitate
municipal bonds. The only position

your

have to

secondary market in
worry

about is

(3) A pamphlet of Suggestions
ful discussions and disclosures will
Marketing Municipal Bonds
be had.
I shall be
very much
at Public Sale;
surprised if this Conference, and
(4) Recommendations for Print¬ perhaps others, do not become a
ing Legal Opinions on Municipal tradition and at least an annual
Bonds;
affair by popular demand.
for

(5) A pamphlet on "Federal Aid
Education?"; and

The brochure "Why Pro¬
fessional People Invest in Munici¬
pal Bonds."
(6)

.•>

the

area

of Federal

legisla¬

In this

general connection,
just one fur¬
thought with you. You are
all aware of the study which the
SEC is making of our industry at

ther

the

direction

tion:

the

(1) We opposed Federal aid for
elementary and secondary school

have

classroom

teachers'

construction

and

By Public Works Act; and

(3)
urban

We opposed Federal aid for
mass

transit.

{

of the

municipal
Federal

variety

which I

for

salaries;

(2) We opposed the proposed
$2.6 billion Federal aid in Stand-

same

I would like to leave

Congress. In
field you do not
regulation
for
a

very
sound reasons
not have to spell out

you.

You

are embarked however, and
rightly so, upon a program for
expanding the market for munici¬
pals. I take it this means, at

least

part,

selling

municipals

./. J. KENNY CO.
BIgby 4-9440

212-571-0020

yours.

The Commercial and Financial Chronicle

ernment

Interest Rate Outlook

bonds

from

about

2^%

about 4V2% in
early 1960. The rates on new is¬
sues
of corporate bonds and on
mortgages
experienced
a
more
pronounced rising trend.

By Dr. James J. O'Leary, Vice-President and Director of Economic
Research, Life lnsurahce Association of America, New York City

early

1951

Behind

this

Dr. O'Leary expects short-term rates for some months to come to be

interest

stabilized in line with present

trend

upward

basic factors.

there

rates

three

were

First, on the whole
abroad. A sizable tax cut, however, may bring about a higher
during
the
fifties
there
were
heavy capital demands by indus¬
short-term rate level as a result of tighter monetary policy. As for
try
and
commerce,
residential
the long-term rates, they too are seen likely to move sidewise and
construction, and state and Fed¬
fluctuate within a narrow range around present levels. Unless or
eral Government. Thus, in much
until there's a strong economic resurgency, only the international
of
this
period
interest
rates
payments' demand is pictured as providing a floor under both shorttrended upward as the result of
and long-term rates. The insurance economist reviews the
pressure
of demand
for funds
past and
present interest rates trends and describes the suppositional factors
against the available supply. Sec¬
ondly, through most of the period
shaping his predictions.
the general public was inflationminded and we did experience
The purpose of this article is to thorities to maintain
credit ease,
rise in the general price
discuss the outlook for short and or will they force the authorities some
level.
Inflation causes a rise in
long-term
interest
rates
during to adopt a restrictive policy?
the total dollar amount of capital
the next sev¬
(4) Will conditions, as they de¬ demand. In
addition, the fear of
eral months.
velop, lead to broad public sup¬
inflation causes investors to place
This is al¬
port for a Federal tax cut?
a
higher proportion of funds in
ways a for¬
If
one
knew
the
answers
to equities and a lower proportion
midable as¬
these questions it would be a com¬ in
interest - bearing
obligations.
signment, but
paratively easy task to forecast Thirdly, the monetary authorities
it
is particu¬
the future of interest rates.
during much of the past decade
larly so today
were obliged to pursue restrictive
because there
The Movement of Interest
credit policies in the face of overare many
im¬
Rates During the Kennedy
exuberance in the economy, and
ponderables in
objective to meet

money

market rates

Administration

the

Some

which

us.

ment

the

must

prospects
as

James J. O'Leary

for

interest

rates

the

general

busi¬

judg¬

of interest

the

past, particularly since Presi¬

dent Kennedy has been in office.
Since January, 1961 interest rates

have

follows:

(1) What

about the future

rates, it will be helpful to review
the behavior of rates in

reviewing

the
are

attempting to form

briefly

considered

estions

q u

in the latter years because of the

months

ahead

moved

tively
been

within

narrow

range..

increasing seriousness of the defi¬
cit in

sharp contrast, of

international balance of

For the

payments.

same

reasons,

outlook?

Will

the

rise

After both short- and long-term

has rates reached their highs in early

course,

1960, with the onset of

Space

does

not

permit

de¬

tailed discussion of the movement
of

interest

rates

since

What stands out in

mid-1960.

reviewing the

behavior of rates during the past
two years, however, is the com¬
paratively narrow range within
which they have fluctuated. The
average yield on long-term Gov¬
ernment

bonds, for example, has

moved between

3.70% and 4.12%.

Only in mid-May of 1961 did it
decline
slightly below the 3.75
level it reached in the middle of

From Coast to Coast You
on

the

can

1960; most of the rest of the time

depend

it has fluctuated

People, the Ideas, the Facilities of...

well

above this

level.

Corporate bond yields have
State and local
government bond yields have been
subject to wider swings, particu¬
behaved similarly.

HORNBLOWER & WEEKS
134

SO. LA SALLE ST., CHICAGO 3, ILL.—FR 2-7500

28 SO. MICHIGAN

AVE., CHICAGO 3, ILL—FI 6-7700

larly the sharp drop in the first
third

this

commercial

Treasury
within
to

year
bank

bill

the

2y2%

due to heavy
purchases.

yields

narrow

other

coun¬

tries

rates

were

which

the

higher. The effect of this policy is
visible, of course, in the stability
of the bill rate within the 2% to
3% range this year.
effect

The

short-term

stability in the
at a relatively

rates

between

annual

rate

having

been
$545
quarter and
$552 billion in the second quarter.
The
general expectation is that
in

billion

the

first

third

the

quarter will show a
gradual rise. Or to take
general economic indi¬

further
another

cator, the Federal Reserve Board

high level compared with earlier

index

periods

after rising from 102.1

ample,

during

credit

(for

ease

the

ex¬

periods

in earlier cyclical de¬

ease

clines, the bill rate fell precipi¬
tously to about % of 1 % in mid1954

and

mid-1958)
make

less

has

than

induce

significantly

importantly, the

attractive level of short-term rates

the reaching

necessary

out for long-term securities by the
commercial banks, especially until

this year with
Regulation Q.

With

the

One

the

continuing bright

behavior

long-term rates declined, there
was
always the opportunity to
move funds into liquid short-term
securities at comparatively attrac¬

made less

to 114.8 in December,
only edged up to 118.7
in July of this year.

been

lower long-term interest rates. As

tive rates. More

ary, 1961
has since

spots in the economy has been the

it difficult for Government

policy

production,
in Febru¬

turn

industrial

revision

the

recovery in
general
activity which began in
early 1961, there were many who
anticipated a significant rise of

business

interest rates.
The reason that
this has not occurred is that this
recovery has been comparatively
moderate and has not produced

consumer
spending,
for
automobiles.
In
addition, the level of residential
construction has been higher than

especially

most

forecasters

continues

loanable funds have risen, but at
the same time the supply of funds

weakness.

from

savings and bank credit has

hand, it

been

fully

adequate

meet

the

demands.

Partly, therefore, the
relative stability of interest rates
at present leyels has been the re¬
of government
policy and

sult

partly the result of
tween

demand

for

balance be¬

and

supply of

loanable funds at high level.

view

Grounds

be said about the outlook for

rates?

Before

question, however,

first

answer

(1)

must

three other questions:

What is the general business

outlook

and

general

price level?

the

tackling
we

outlook

the
for

outlook

the

(2)
U.

for

the

What is
S.

There

inter¬

for

Optimism

grounds

for

anticipating that the rate of
pansion may accelerate in

ex¬

are

few

tinue

some

months

longer

and

may

than

1963

many

nyThe first half of this
experienced

economy

shocks which

were

year the
major

two

bound to have

national

had

and

activity, namely the steel episode

balance
of
payments?
(3) What is the outlook for a

significant cut in Federal taxes in
the next session of Congress?

adverse effect

business

and the decline of the stock

business

Perhaps
another
was
the
liquidation of steel inventories. In

outlook is concerned, the evidence
to date suggests that the expan¬
sion which has been under
way

how well the economy performed
in the face of these shocks. It can

since

far

the

general

February, 1961 has flattened

out. The gross national product of
the U. S. rose from a seasonally-

some

remarkable

argued that their adverse ef¬

adjusted

bound

months.

additional rise this year has been

fects are largely behind us and
that the climate for expansion is

billion

annual
rate
of
$500.8
(current prices)
in the
first quarter of 1961 to $538.6 bil¬
lion by the final quarter. The

respects

The

better

optimism is the

ground for
better than fair

prospect of enactment of
tax cut

early next

disappointing, however, the GNP

coming

second

sizable

year as part

Continued

page

This year
within
a

oft-repeated de¬
Kennedy Administra¬
produce lower interest

of the

rates—especially

HUM

long-term

rates

—the behavior of rates in the past

and

year

rather

one-half

may

seem

Correspondents in principal cities throughout
the United States and Canada

surprising.

The reasons
for it are quite clear.
It has, of
course, been the goal of the Ad¬
ministration

possible

have

the

lowest

short-term interest

consistent with

rates

the needs of pro¬

tecting the value of the dollar in
foreign exchange markets.
This
has

underwriters

•

distributors

•

dealers

STERN, LAUER & CO
MEMBERS

120

NEW

BROADWAY

•

YORK

STOCK

NEW YORK

EXCHANGE

5, N. Y.

meant

that

the

objective

DEALERS IN STATE, MUNICIPAL
AND PUBLIC AUTHORITY BONDS

the

monetary authorities in credit
policy, as well as the objective of
the Treasury in its financing, has

Dominick

been to prevent the

Members New York, American & Toronto Stock

rate
as

Treasury bill

(and hence short-term rates
whole) from declining below

the point which would precipitate
outflow of short-term
funds

mar¬

ket.

Rates Up

the
con¬

expect. One of these is that

now

In view of the

tion

fourth quarter of this year.

Against this background, what

this

evidence

likely that general
business activity will continue to
rise
during the balance of this
year and possibly into the first
quarter of next. But at best this
expansion
seems
likely to
be
moderate, with GNP rising to
something like $567 billion in the

The Outlook for Interest Rates

can

the

seems

Nudging Keeps Long-Term

sire

element

of 2V\-

mid-1960

and

expected

strength.
On
the
other
hand,
plant and equipment spending by
business and
industry, although
expected to rise about 8% this
year to $37.2 billion, has still been
running at a disappointingly low
level. Similarly, the economy is
not getting much of a lift from
the building of business inven¬
tories, which rose gradually to an
annual rate of $6.7 billion in the
first
quarter of this year but
dropped back to $4 billion in the
second quarter. Another sign that
the expansion lacks vigor is that
corporate
profits
apparently
reached a peak of $51.4 billion in
the fourth quarter of last year and
have since levelled off. Moreover,
a number of the so-called "leading
indicators" have shown signs of

fluctuated

range

nearly the end of 1961.
they
have
remained
range of 2% to 3%.

ESTABLISHED 1888

to money markets in

interest

middle of the year.

( HORNBLOWER AMD W£BK¥~]

Thursday, September 27, 1962

inflationary pressures. The mone¬
tary authorities have been per¬
lengthen the average maturity of mitted, therefore, to maintain an
the Federal debt.
easy credit policy.
Demands for

general
with the behavior of rates in the business recession and
declining
business activity continue to be
period from the unpegging of the credit demands, as well as a shift
of
modest
proportions,
with
a
prices of government securities by by the authorities to easy credit,
downturn
before
long,
or
will
the Federal Reserve in early 1951 there occurred a decline in
rates
there be a sustained acceleration
to early 1960. Generally speaking,
which carried the average yield
carrying business activity to a full
despite pronounced cyclical down¬ on long-term Governments in two
capacity level?
turns in the second half of 1953
stages from 4.42% in early Janu¬
(2) Will there continue to be a and early
1954, as well as in late ary to 3.75% in late July, 1960.
reduction in the deficit in our in¬ 1957
through the first half of 1958, Similarly, the yield on threeternational balance of payments? interest rates
displayed a distinct month
Treasury
bills
dropped
(3) Will conditions, as they de¬ upward trend which carried the from 4.59% in
early January, 1960
velop, permit the monetary au¬ average yield on long-term gov- to a level of about
2V\ % by the
ness

the U. S. Treasury felt obliged to
seize
every
opportunity to

compara¬

This

our

14 WALL STREET

Chicago, 111.

Buffalo, N. Y.

Dominick
Exchanges

NEW YORK

Portland, Ore.

Seattle, Wash.

Volume

196

Number

6198

The Commercial and Financial Chronicle

community facilities, college hous¬
ing, public works, mass trans¬
portation and other fields. Each
act
passed and bill introduced
recites that it is the policy of the
United States to promote the gen¬

Federal Legislation in the
Field of

Municipal Finance

eral

New York City

States' "tin cup" approach to Washington rather than recognizing
and meeting the needs of our burgeoning metropolitan growth is
outlook for

eral

over

intervention

depicted by Mr. Mitchell.

areas

to wrest control over State

legislatures from rural

taxpayer

relating to most

legality

dry

subject is as
Christmas trees. Ac¬

old

cordingly,

and

provide

any

attempt to

programs
covered

Federal

legislation,
would

inject

feMBflL'

the

Federal

legislation

has

JB
pm

The forerunners of the legisla¬
tive programs here under discus¬
sion were those brought into being
to

aid

some

depression

observations
as

Much

question

expenditure

from

These

combating
the
big
of the early thirties.

earlier

programs, admin¬
by
the
Reconstruction
Finance Corporation, Works Prog¬

their

istered

respective
merits,
the

ress

area

Administration

Works

and

Public

Administration,

provided
loans and grants to political sub¬
for
their
John N. Mitchell
divisions
for
the
financing of
existence and
public works. The powers and
examine
the
prospects for the
future in this field. Needless to portfolios of these agencies ulti¬
mately settled in the RFC which
say, space will only permit cover¬
was in turn supplanted in 1955 by
age
of
the highlights in
each
the Community Facilities Admin¬
category.

responsibility

For

well

over

ratification

the

Constitution

our

100
of

years

after

Federal

our

Federal

statutes

relatively free of provisions
financial aid to political sub¬

were

for

istration

the

did

not

Congress

continue

and

the

Supreme

fare" in the Constitution

Supreme

Court had

held

"wel¬

and the

that a

the

was

pay

pledged

the

conditioned

the

United States has expressed
his opinion that the obligation of
the United
States
to
pay
such

the
to

local

upon

contributions is the

the

own

Subsequent to the enactment of
the Housing Act of 1949, the PHA
and the local agencies with Series
A

New

issued

authorized

since

1951, with

the

notes

From

and expanded programs

program.

such

secured

agreement

Agreement,"
PHA;- is
in

CSiS

amount

and

under

obligated

way

interest

which

private financing by
housing
agencies
program occurred in

this

such

notes

-INVESTMENT

SECURITY BUILDING

1940

until

the

passage

BANKERS-

DENVER 2, COLORADO

•

KEYSTONE 4-0225

TWX 303 292-1399

•

OVER 40 YEARS INVESTMENT EXPERIENCE

This is

our...

Municipal,
U.S. Government and

Federal

Agency Securities

serving corporations,

institutions and individuals.

LOS ANGELES HEADQUARTERS

Spring Street

MAdison 4-0111

Teletype: 213 683-0544 and 213 683-0546

405

FRANCISCO

HEADQUARTERS

Montgomery Street

EXbrook 7-2022

Teletype: 415 393-9545

UNITED

CALIFORNIA

"k:>

'
_

'JZf&

" ':i

BANK
MEMBER

C0W8TRUC ION;

maturity. By certification upon
each note, the full faith and credit
of the United States is pledged to
the payment of the monies agreed
to be advanced by the PHA under
the Requisition Agreements. The

HANIFEN, JJMHOFF & SAMFORD, INC,

tempo¬

amend¬
ing the United States Housing
Act of 1937, the obligation of the

renewal,

SAN

the

advance

loan, sufficient
pay the principal
a

the Housing Act of 1949,

for Federal financial assistance in

600 South

un¬

with the PHA, called "Requisition

Since the passage of the Housing
Act of 1949, local agencies par¬

by the issuance of Series A Bonds.

Dealers

first

still

Pending the
bonds, the local
agencies continue to temporarily
finance projects during construc¬
tion
by issuance of temporary
issuance

funds, by
;

$3J/2
billion
of
Authority Bonds

follow in order to finance the total

security as the currently

Double Guarantee

exists

determined number of billions to

issued housing bonds.

loan notes for the purpose
of financing projects during con¬
struction. In 1940, definitive fi¬
nancing of projects was initiated

Each session of Congress brings

fields of housing, urban

been

issuance in

contractual

same

bearing obligations.
of

Housing

have

outstanding amended
relationship to
provide
for
the
unconditional
payment by the PRA of the
annual contributions
pledged to
secure such Series A Bonds and,
accordingly, the holders of such
bonds, which are now outstanding
in principal amount in excess of
$75,000,000, for all practical pur¬
poses, if not contractually, have
the

interest

Upwards

Bonds

their

same

with respect to the payment of its

performance of certain contractual
undertakings by the local agencies.

rary

Housing Aid

new

first

with the issuance of

1939

Growing Federal Local

forth

agencies

bonds

public

under

invest¬

held

long after

Court discovered the word

all

The
local

discussed.

by
these
Federal
agencies have been liquidated.

divisions of the States. This situa¬
tion

hereinafter

Substantially
ments

neither

the

contributions

secure

ticipating in the Federally-Aided
low-rent housing program have
The
oldest, largest and best issued New Housing Authority
known of these programs is that Bonds secured by the uncondi¬
providing Federal financing as¬ tional obligation of the PHA to recent "float" of these temporary
sistance to local public housing pay annual contributions sufficient
notes are rolled over from time
agencies in aid of low-rent hous¬ in amount to pay the principal of to time until funded by the defini¬
ing
under
the
United
States and interest on said bonds as the tive
bonds, is slightly under $1
Housing Act of 1937, as amended. same become due and payable. billion.
This
act, administered by the The full faith and credit of the
The Urban Renewal program,
Public
Housing Administration, United States is pledged to the
provides
loans
and
subsidies, payment of such annual contribu¬ enacted into law by the Housing
called
annual
Continued on page 14
contributions, to tions and the Attorney General of
such local agencies to assist them
in providing low-rent housing for
persons and families in the lowest
income group who cannot afford
to pay enough to cause private
enterprise in their locality to build
an adequate supply of decent, safe
and sanitary dwellings for their
MUNICIPAL UNDERWRITERS
use.
Since its inception 25 years
AND
ago, this program has provided
housing for approximately 7,000,DISTRIBUTORS OF CORPORATE
000 persons and now houses over
SECURITIES
2,000,000 persons in some 515,000
dwelling units.

with the
expressed
promoting the gen¬
eral
welfare, including various
types of legislation in the field of
municipal finance.
interest

the

funds

Treasury.

not

the

that

Government

annual

istration and effect.

followed,

■.:>■

stimulant,
along with the
outline

public

may

welfare;

nor the States
political subdivisions are

meeting the need, and that Fed¬
eral funds and credit are the only
solution and must be brought into
the vacuum. The justification or
refutation of such argument with
respect to these programs may be
determined by a consideration of
their provisions, purposes, admin¬

"yardstick" of reasonable terms.

Recitation of legislative provisions

special need must be met

their

they should. Mr. Mitchell describes the Federal programs In the field
of municipal finance, and comments on the recent interest rate
change
by the community Facilities Administration and what still should be
a

private enterprise

areas

and, thus, to at long last, match State responsibility with deeds. The
municipal bond attorney denies the Federal Government is the only
entity able to do the financing and avers Washington will surrender
these programs and sources of revenue once the States function as

done to establish

general

for

way

nation

in order to protect or advance the

He cites the recent

Supreme Court Tennessee reapportionment decision
urban

that

filled by Fed¬

vacuum

the

particular urban problem.
The
composite argument advanced in
support of all such legislation is

municipal financing. An encouraging

municipal financing displacing the

employing its funds and credit, as
therein
provided, to assist the
several States and their political
subdivisions to alleviate or cure a

By John N. Mitchell,* Caldwell, Trimble & Mitchell, Esq.,

blamed for Federal take

welfare

Federal

FEDERAL

OEPOSIT

INSURANCE CORPORATION
,,

W/M

"s vs.'sii «v/ S

••

S*.-,

and Company,
INVESTMENT BANKERS •
Member of the Midwest Stock

Inc.

SECURITY BLDG., DENVER
Exchange

AMhefSt 6-1981

The Commercial and Financial Chronicle

this

yet clear-cut explanation

how to

tax-exempts is presented by a Baltimore partner whose firm's
counts
when

generally

those

securities

programs,

have

advertising

offer;

and

IBA

and

discusses

materials

investor

bond house and is content to

see

has, since municipals to individuals have been
of the firm from the time it

this
an

fixed

advantage

the

price

market.

declines

ideas,

concluding, Mr. Yeager points out that his firm at times is

ferred to

the

education

containing useful

balance

try to stress
quality factor of municipals
versus corporate securities in ad¬
dition to the tax-exempt feature.

receive; cites the advantages of municipals and how

they are brought to the attention of those uninformed about what
r

the

income securities with spaced ma¬
turities. As a result of this policy,

take

capably retailed. Mr. Yeager reviews step-by-step the training

his salesmen

•

ac¬

60-70% stocks and respond well to municipals

run

and

continue,

re¬

the

most

fall

Thursday, September 27, 1962

one

important feature?

Last

could buy general obliga¬
bonds which yielded more

tion

tax-free
income

income
stocks

than

and

The

Broad

Market

Among
Non-Wealthy Individuals

there

advertising kit is

stocks

utility

and

IBA

able

did before taxes.

ful

This, to us,
opportunity to

had called

client and told him

high tax

very

After I received the invitation to develop our individual
municipal bracket for municipals to be ad¬
the First Muncipal Con¬ business.
vantageous. All of our salesmen

now

also

avail¬

use¬

ideas.

have

equivalent

used the

also

charts

taxable

which

can

purchased from the Bond Buyer.
This
is an
effective means of

keeping

the firm's name
con¬
municipals. Try using
mailing pieces with bills

nected with

them

you

and

pay

with

had a security that would
him a 3y2% current return
and guarantee him a 25% capital
appreciation in 15 or 20 years, he
probably would have hung up the
phone and been right down to
your office. Take a look at some
how many

see

major selling point for mu¬ discount bonds there were around
nicipals is that an investor does on which you could do even better
not have to be in

would

The

others.

been

was

opened its doors in 1900.

and

have

suggest that it be studied for

old Blue Lists and

important part

Need I say more than that about
results! This is only one instance

called

an
excellent
sell some stocks
and even after paying the capital
tax
and
reinvesting
the
decline we have just witnessed. gains
the
customers
had
Accounts
that
were
solely in¬ proceeds,
better take-home pay than before.
vested
in common stocks
were
locked in and were not able to In last year's bull market, if you

about selling

stocks

majority of our clients have
had money available for the pur¬
chase of stocks during the severe

Baltimore, Md.

forceful

the

By G. Thomas Yeager III,* Partner, Baker, Watts & Co.

mean

percentage

bonds and

To the Individual Investor
•,

they will have a
their holdings in
part in stocks. In gen¬
eral, the ratio will run 60-70% in

How to Sell Municipals

than

the

25%

gain

indicated.

see

customers

don't

call

questions. Each caller is a
prospective purchaser of munici¬
pal bonds. Each week we make

municipal offering list and
out to a regular mailing
list. After doing this for awhile,
you'll find that if a customer
up

mail

doesn't

receive

his

the

pre¬

scribed day, he'll call up wanting
to know if he has been removed

from

the mailing list. We feel
continuity is an important part of
ference, I decided to check our
are urged to go out and actively
by us,
again through investor this mailing so people do become
Salesmen Training
individual muncipal
business at.
solicit municipal business as with education. When you talk to an accustomed to looking for it.
Each new salesman we
Baker,
Watts
hire, in the knowledge they have gained individual
and
point
out
that
addition to taking the Stock Ex¬ there is a
&
Co. to see
large market for their municipal
bonds
offer
tax-free
The Importance of a Profit
if it
contrib¬
change
course,
is
required
to wares. On any unusual type of income, safety, high quality, ready
Incentive for Salesman
read "Fundamentals of
uted enough
Municipal municipals our firm is bidding on, marketability, and diversification
Bonds."
After
towards
our
he
has
had
a
Perhaps
the
the
following
point
Municipal Department gets as to issues and maturities—the
address

overall

chance

to digest this as much as out a
Preliminary Circular giving
possible, we have him work in the necessary information to the
the Municipal Department. Dur¬ salesman to enable him to talk
ing this time, the trainee has a intelligently with his customers.
chance to listen in on the phones We feel it is vital to have
good
to learn the terminology of our
communications between the Mu¬
business, learn to figure scales, nicipal Department and the sales

mu¬

nicipal busi¬
that

ness

could

results
basis

our

use

this

for

paper.

Some

of the

figures,

me,

and

rather

Our

d ivi d

business

was

total

have

Our

parts in the

not

main

been

clear
for

reason

doing
G. Thomas

Yeager III

this is that, we feel, the
greater a salesman's knowledge

municipal
our

questions

which

him.

in¬

teresting.

ask

book

were

dollar

follows: 54.9%
volume

retail

will

talk

his

Individuals"

municipals because he sits in

into

paper

three

parts,

before

offering

our

they
sheet

are
or

possibilities
limited.
media
some

for

While

may

sales
other

are

un¬

investment

degrees,
type of

Means

Keeping

Name

Before

The Public

After

conferences

with

customers, re¬
views their holdings under the
partner's supervision and gains

conducted

course

discuss

that

I would like to
point something
are
all vitally

so,

this

think

believe that no other
interested in —PROFIT. We do
investment offers
the
not feel that we can ask a sales¬
average investor all of these ad¬
man
to sell a bond maturing in
vantages at as attractive an after¬
20
or
25
years
when there is
tax return.
only three-eighths of a point con¬
cession, of which he will receive

Investor Education

Last fall

should have been discussed under,
"Salesmen
Training,"
but
not

be found to provide having done

of these features in varying

in the Blue List.

cus¬

working with a partner, he again
gains
knewledge
about
selling

divided

salesmen

tomers. After the time in the Mu¬

"Developing Retail Interest Among

have

the

shown

are many spots for discount
bonds but they must be developed

sell

approximately 40%.

I don't be¬
salesman today would
willing to put a customer's

lieve

municipals, the better equipped

sales; 36.8% of dollar volume of nicipal Department, the trainee
municipal business; and 56.4% of then begins working with a part¬
ner
on
cur total municipal tickets.
analysis of accounts. In
I

force; and on any municipals we
purchase, we try to show them
to

There

having trained
municipals and

salesmen

any

for

educated
for

the individual investors

money

knowing he will only receive $1.50

their

away

years

municipals using again "Fun¬ purchase, it is highly important per bond as his share of the com¬
of Municipal
Bonds" to keep the firm's name associated mission on this transaction. We

damentals

the

text.

held

this

for

their

bonds.

young personnel in the banks, in¬
vestment counseling firmis,
and

do this.

insurance companies in Baltimore
and had a tremendous response;
so much
so, that several of our

minds

with

municipal
ways to

have
we

found

have

that

bonds

inventory,

that

vestor,

There

are

many

We have used two mail¬

can

offer the salesman 1 to l1/^

points
selling credit, the bonds will gen¬
erally be sold.

ing pieces to our clients: Munici¬
pal Bonds for the Individual In¬
a pamphlet we wrote in
In closing, I'd like to call at¬
(2) Investor Education.
the confidence to talk to cus¬ salesmen
have
scheduled
these our office, and the IBA pamphlet
tention to an ad R. W. Pressprich
(3)
Means of Keeping Name tomers of his own later on.
seminars for
small
groups this which I previously referred to,
Co. ran a few months ago and the
Before the Public.
At this point, I would like to fall. This is a vital part of in¬ Why Professional People Invest
opening
sentence
was,
"From
I would like to take each part emphasize that a
large part of vestor education and if you use in Municipal Bonds. These are
time to time, you will hear this
and elaborate by way of illustra¬ our individual accounts are what people who are called "centers of particularly effective to send out
firm described by a non-custo¬
tion, our firm has used these to we call balanced accounts. By influence," you will find others and have a salesman make a
mer
as a
'bond house' which is
coming in for knowledge as a follow-up call. We have used
a
perfectly apt designation, as far
result. The Bond Club of Balti¬ newspaper advertising as an ef¬
as
it goes." The ad goes on to
more, in cooperation with McCoy fective means of broadening the
explain they are a bond house but
College, holds a course each fall market for municipal bonds. Our
they are much more than that.
on
investing and one lecture is municipal ads tie in with our
Baker, Watts & Co. has at times
devoted to municipal bonds. This
overall advertising program and been referred to as a bond house
class generally numbers over 150 are based on the
theme, "The Pruand like R. W. Pressprich Co., we
each year. I have given the mu¬ duent Approach to Investing." We
are proud of it. The sale of mu¬
ran the ad showing the
nicipal talk four times and I have
crumpled
always gotten at least one new up tax return just prior to April nicipal bonds to individuals has
been an important part of our
municipal account for our firm as 15 and a few days later a man
firm since its founding in 1900
a result of this class. I think
all called up and asked to speak to
and we hope it will remain the
of the
YMCA's in and around someone
who
knew
something
follows:

(1)

Salesmen

Training.

Baltimore during the course of a about the ad. Our telephone op¬
have a series of classes on erator gave me the call and since
investments
and
our
younger that time, the man has purchased

same

for many years to come.

year

salesmen

Again,

all

take

talk

active

part.

$65,000 municipals from

our

♦A
First

talk

by Mr. Yeager before the
Municipal
Conference
sponsored

firm. by the IBA, Chicago, 111.,

Sept. 12, 1962.

municipals by
Municipal De¬
partment will always produce re¬
a

from

someone

our

sults.

mwmmmmmmmwmmmwmmmmmmmmmmm
New IBA Booklet Is

Ideal

"Door Opener"

It is amazing to me the number
people who are not aware of

municipal
countants,

bonds.

Lawyers,

doctors,

candidates for

all

are

bonds

ac¬

Specializing in California
State and Municipal Bonds

prime

and

yet

relatively few know of their

ex¬

istence.

the

The

our

booklet

new

IBA,

"Why Professional People
Invest
in
Municipal Bonds," is
ideal

Bache&Co.
Founded 1879
Underwriters and Distributors
Members All Leading Stock and

36 WALL

given

tell

STREET, NEW YORK 5, N. Y.

TWX: 212 571-1155

orders

different
Some

I suggest
again I can

can

attribute to

opener.

try
we

types of municipals for
investment
objectives.

investors

current

Offices throughout the United States, Canada and abroad.

door

inquiries as a result of the pam¬
phlet. As part of investor educa¬
tion, we like to point out the
different

Commodity Exchanges

Tel: Dlgby 4-3600

capital

desire

income,
others
desire
appreciation, some want

investment with

plus

tax

SAN

FRANCISCO

maximum

high
income-producing revenue
bonds, others desire high quality.
Can you think of any other type
sibilities

Mnnicipal Bond Department

many pos¬

exemption

LOS
NATIONAL TRUST & SAYINGS ASSOCIATION

ANGELES

Volume

196

Number 6198

The Commercial and Financial Chronicle

net

Why Every Investor

seems

Should Consider Municipals
By Curtis V.

Cogent

reasons

ter

Kuile, New York City

exempt municipals stress: (1) after-tax yield differences "vis-a-vis"
corporate stocks and bonds) (2) ready marketability) and (3) capi¬
equities. In discussing the
tax-cut, the writer observes that

down."

The author doubts that

When the

big break in the stock

market

came
on
May 28, 1962 a
great many investors who had not

been old
crash

enough to experience the

1929

realized
the

had

become

them

net

that he retains after tax
accruals. Anyone who pays an in¬
come tax and has
capital to invest
a

considerably more safety of prin¬
cipal than in the average invest¬
ment of any other type. The best
quality municipal bonds are pay¬

last

for

necessary

considers the

potential buyer. He not only
enjoys the tax exemption,
but

time

one

able

re¬

view their in¬

from

unlimited

unmarried

and

the 87 % bracket, who purchases
3% tax exempt bonds, will get a
yield equivalent to a 23.08% re¬

the

valorem

taxes levied upon all the taxable

vestment pro¬

out

one

haps

plot

new

course

about the most

person

results may not come out

investors

can

use

savings

taxable

broad

through

in¬

pur¬

chase of tax-exempt bonds but it
is better to have an accountant

check the figures in any particular
case.

ter

type of in¬

money

fair net return

it than

The Dow Jones industrial
had declined from 655.36

averages

discover

the

assumed

that

the tax¬

is married and has income

payer

May 15, 1962 to 535.76 on June from salary and investments.
26, down 119.60 points in 40 days
The examples used in Table I
and 40 nights. So investors really
are made up on the basis that the
had something to think about. The
taxpayer "A" with taxable income
question was, should a person dis¬
of
$14,106.55
and
investments
pose of stocks and await the out¬
solely
in
stocks
and
corporate
come, thus losing current income,
bonds would save 13.9% on taxes
or should
the funds be placed in
by switching to a portfolio entirely
some other type of security?
The
made up of tax-exempt bonds. By
answer to that question, it is here¬
the same premise, taxpayer "B"
by suggested, lies in the purchase with
taxable
income of $98,200
and retention of good grade taxon

would

exempt municipal bonds.
Any person with
come

$10,000 shown

been

taxable in¬
on

Line lid

of the U. S. Individual Income Tax

tax

save

47.4% in taxes. It has
that in both cases

assumed

exempt

bond

interest

equal to dividend
bond income.

and

was

taxable

Return,

Form 1040, is a logical
for tax-exempt bonds.
There is no question as to the dis¬
tinct advantage of this type of in¬
prospect

their

counter.

them

and

great deal has

been

said

difference

about

the

banking were chaotic. A number
of banks had either failed or just
closed

their

only

nominal market for U. S.

The present market

broker,

price is about

94y8 to yield 3.43%.

High

grade

have

Line

Tax

wages

market

There
on

pur¬

over-thereason

investment
are

traded

$14,716.44

and

taxable

interest

Net

lid

taxable

Increase

$100,000

24,000

net

tax

24,000

14,106.55

8,659.06

98,200

1,851.56

52,344

6,630

10,754.59

accrual—

12,254.99

45,856

67,570
47.4%

income

after

tax

' :

74,200

13.9%

TABLE

D/J Municipal Average

11, 1960

Sept. 7, 1962

3.81%

3.28%

Municipal Bonds
Connecticut

2%%

—

Illinois
—

New Jersey

New York

St.

3.60%

2.60%

3.90%

3 y4%

1/74

3.65%

3%'%

1/
12/

1/72

3.35%

1/85

1/80

3%%

1/77

2.90%

1/74

3%%
City_ 4%%

1/76

3.90%

3y4%
4%%

3.10%

1/74
1/78

3.70%

—

York

1/72

3.55%
3%%
3.50% 3 3%%
3.80%
3%%
3.50%
2.70%

—

3%%
3%%
3%%

Massachusetts

New

2/15/73

1%%

—__

Louis

D/J Industrial Average

7/ 1/75
10/

2:80%

1/84

3.05%

4/ 1/80
3/ 1/84

3.00%

6/ 1/87
6/ 1/83

3.10%

1/77

3.15%

5/ 1/76
9/ 1/78

2.75%

2/15/76

3.10%

2.75%

667.16

1/76

2.95%

3.10%

3.00%

600.86

Stocks

that score. Practically

Union

Carbide

141

U. S. Steel.____
Du

42%

243

Eastman Kodak

grade common stocks
over-the-counter.
In

93 y4

Pont

Standard Oil

201 %

100 %

99%

(N.J.)__

Consolidated Edison__

Consumers

TlVz

37%

Power

of any stock

knows

exchange. The only
bond that the writer

which

listed

the

New York Stock

Exchange is New

York

Corporate

City

Stock

June

due

1, 1980. There are,
incidentally, certain important ad¬

PRIMARY MARKETS FOR

vantages in holding these bonds.
In the

first

These

bonds

place New York City
has
paid
interest
on
its
debt
without interruption since 1836.
are

rated

"A"

Moody, are legal investment for
savings banks and trust funds in
New York, are non-callable, from
Federal

and

State

INSTITUTIONAL INVESTORS

New

U. S. Governments

taxation, and are
inter¬
changeable, which means
that
they may be converted to regis-

Federal

Agency Issues

Municipals
Public Utilities

Industrials
Railroads
UNDERWRITERS and DISTRIBUTORS

Equipment Trusts
Bankers

Acceptances

Certificates of

STATE, MUNICIPAL and REVENUE BONDS

Finance

Deposit

Paper

Canadian Issues
Preferred Stocks

Wertheim

Co.

SALOMON

SIXTY WALL STREET

NEW YORK 5 N. Y.

Members ZNjeu) York Stock

BROTHERS

Exchange

H
NEW

last

3,351.96

after

Jan.

fact certain of the largest invest¬
ment firms are not even members

municipal

was

page 21

5,446.69

income

tax

income

On this

$14,716.44

5,446.69

exempt interest

Line

bonds.

There

divs.

doors.

Continued

TABLE

Houston
never

can

Example
Line

Government

municipals

York

written

inauguration of President Franklin D. Roosevelt, conditions in financiaK markets,
business
and

checking with

all bank stocks, insurance stocks,
a large number of excellent
pre¬
ferred stocks, and at least 1,000

both

After-Tax Yield Differences

who

municipal bonds are fre¬
quently disturbed when they learn

hesitate

tax

ditions. On the Friday before the

without

Hartford

chased

exempt bonds as
corporate bonds or
stocks, the two examples in Table I
should clearly indicate the sav¬
ings which can be realized. In

for

contracts,

this, they are traded
nearly every day on the New York
Stock
Exchange
and
the
sale
prices can be found in newspapers

Chicago

Traded Over-the-Counter

true

compared

Kuile

it has been to make it in the first

place.

order

merits

Curtis

secure

collateral

construction

all

Texas

Persons

readily sold at almost any time
and under the worst market con-

coupon

Besides

equivalent table for
dication

amount.

are
gen¬
constitute

municipal

charge. This makes

hoped
for. Therefore, it is suggested that

that
In

deal harder to

get

vestment available.

the ages it has
been
a
great

and

rate

such bonds
considered
to

erally

through

keep

Therefore

for the future.
Down

limit

back

and

valuable

family from another and the true

property of the municipality with¬

gram and per¬

exemptions

form

them

income

income tax returns vary according
to the difference in the deductions
or

tered

form without

joint return,

taxable

same

dend

income

for

first

that

vestment if

9.68% if entitled to the 4% divi¬
received credit. Moreover,

a
really important
income tax is likely.

U.S. personal

bracket, with a 10.71% taxable
equivalent yield, which drops to

municipal

reduction in

take

the account finds itself in the 72%

increase in taxes usually causes the
tax-exempt market to rise
but a tax reduction
certainly does not "always cause the
to

who

payer

using

market

just

easy

taxable equivalent table and read
off the information that a tax¬

drops to 18.75%. In

tal gains performance in
comparison with
an income

corporate bonds. It

very

turn on stocks. If he is entitled to
the 4% dividends received credit,
then the taxable equivalent
yield

for the purchase and retention of good grade tax-

possibility there may be

yield between tax free bonds

and stocks

HUTZLER

IIAnover 2-8700
Members New York Stock

Exchange

YORK
BOSTON
SAN

FRANCISCO

PHILADELPHIA

CLEVELAND

DALLAS

CHICAGO
PALM BEACH

•

The Commercial and Financial Chronicle

Coupon Bond: An Outmoded
And Expensive Instrument
By Russell H. Johnson, Executive Vice-President, United States
Trust Co,

of New York, and Chairman, American Bankers
Special Committee on Bonds

Association

feat

their

prestidigitation, coupon bonds still prevail despite
Mr. Johnson

Nevertheless,

disadvantages.

believes the

"era

recently

Committee

Bonds

by the American Bankers Association will succeed in accelerating the
momentum.

the

Mr. Johnson lists the

advantages of registered bonds to

public and to the issuer; compares them to coupon stocks;

ex-

pects the anachronistic cost differential between the two types of

bonds will

be removed;

the

all

outside

the bonds from which they

were

cut because

bonds—Corporates,

Governments and Municipals—are

The U.S. Trust official is

Special

appointed

justify

of sale prior to
the coupon due date will say amen
Perhaps the most difficult prob¬
to the above.
lem
facing
the
committee
is
breaking down the historic price
Problems Akin to Coupon Stock
differential between a registered
In effect the problems and dif¬
bond and a coupon bond.
This
applies to corporate as well as ficulties inherent in processing the
a purpose.
It is obvious that the municipal bonds. This price dis¬ coupon bond are akin to those of
ideal situation—where all bonds crimination
against
registered the coupon stock. There is no dis¬
are
registered and all interest bonds may be hard to rationalize, agreement in the financial com¬
payments are made regularly by but it does exist and it will be a munity that the coupon stock is
most
cumbersome
type of
check—is merely wishful think¬ subject for extensive study by our the
ing. There may never be a time committee. It is an anachronistic stock to hold and to collect the

when

logical move toward utilization of the obvious advantages of the

hopeful that the

enough
to
agent? 1 ,

Thursday, September 27, 1962

practice which in this age of bar¬ dividend. It is a matter of record
breaking should be changed. that a number of large issues of
coupon stock proved so burden¬
registered bonds.
In
his
article
on
registered
Recognizing the necessary co¬ bonds in the July 1962 issue of the some, so unpopular, that they
were
only recently changed to
existence of the coupon bond and Commercial and Financial Chron¬
registered stock.
the registered bond, the need for
icle, Ray Myers, Vice-President,
The continued use of the coupon
corrective legislation in many mu¬ Continental Illinois National Bank
form is based primarily on "ac¬
nicipalities becomes increasingly and
Trust
Company,
Chicago,
important. At the present time effectively capsuled the advan¬ cepted practice," a practice that
there are restrictive clauses in
tages when he said: "Registered originated in Europe when gov¬

unquestioned acceptance of the coupon bonds is over and the

registered bond is gaining momentum."

pality has no facilities for trans¬
ferring
certificates
from
one
owner
to another as would be
necessary
with
the
registered
bond.
It is unreasonable to as¬
sume
that they would willingly
absorb the cost of a corporate
trustee or transfer agent for such

and indicates those exceptional instances

where coupon bonds might still continue to exist.

rier

charters
and bonds, unlike coupon bonds, can ernments were less stable and it
issuance of be replaced if lost or stolen, re¬ was often desirable that wealth be
In spite of some searching and ican Bankers Association has met
coupon
bonds in denominations quire much less vault space, and cloaked in the anonymity of un¬
imaginative challenges in the past this challenge by appointing a other than $1,000. It is hoped that interest
payments are made by registered or coupon form. The
decade, the coupon bond remains Special Committee on Bonds to some progress can be made in check the same as dividends."
practice persists in Europe today.
the accepted instrument in most
The American financial commu¬
organize and promote a program persuading legislators to revise
Indeed the advantages that will
bond
financ¬
encouraging the substitution of the old laws — particularly when accrue to both the bondholder and nity with no basis for concealment,
municipal

many

statutes which prohibit

ing.

If its

sition

the registered bond for the coupon
in
situations
that
should

po¬

now

bond

sac¬

less than

benefit the

rosanct, it is
due
primar¬
ily to positive
action

part

the advantages and logic of its
arguments must be effectively ex¬
pounded;
there
are
important

There

was

time

when

questions that must be answered.
skeleton plan that has been
developed poses some key ques¬

exami¬

nation

The

the

principles

in¬

volved

tions

pro¬

voked

very

little

food

answers

may

vantages

unlock

registered

the

Briefly, these questions

discussion—just

whose

the gates of recognition to the ad¬

Russell H. Johnson

for

thought

general.

program — still in the de¬
velopment stage — faces many
problems that must be resolved;

registered

bond.

bondholders, the issu¬
financial community

The

the

proponents
the

the

and

ers

bond.

are:

(1) Should the
program
en¬
of those
couraging the use of the registered
morsels,
"normal
bond be separated into two parts:
procedure" and "accepted prac¬
(a) Municipal Bonds; (b) Corpo¬
tice."
Recently, more aggressive
rate Bonds?
arguments for furthering the use
(2) How can the public be made
of the registered bond—by impact
of logic—have been making a fa¬ to realize the advantages accrued
vorable impression whenever dis¬ from their holding the registered
cussed in the financial community. bond as opposed to the coupon

warmed

variations

over

well-chewed

a larger munici¬ the issuer from use of the
regis¬ has broken with the unwieldy
where it would be feas¬ tered bond are as manifold as they mechanics of the coupon stock,
ible to consider the advantages of are real. Consider for a moment but paradoxically it clings tena¬
a registered issue.
Certainly this the countless hours of unproduc¬ ciously to the equally awkward
problem will attract a great deal tive manpower that go into proc¬ methods of the coupon bond.
We must not overlook the fact
of attention from our committee.
essing not thousands—but millions
in the nineteenth century
—of coupons annually. First they that
Advantages to the Public
ineffective means of communica¬
must be
cut, then counted for
tion represented a strong argu¬
The advantages that would ac¬
presentation, counted again by the
ment for the coupon bond.
crue to the investing public from
The
paying agent, and finally cre¬
slower
mails
and
undeveloped
a
wider acceptance of the reg¬ mated.
Certainly, we can agree
mediums of transportation and in¬
istered bond are both tangible and that while this
country is experi¬
formation may have hindered de¬
substantial:
encing a huge national problem of
cisive and prompt action on the
:
Safety: A bond in fully regis¬ unproductive manpower, tens of
tered form is non-negotiable and thousands of hours are needlessly part of the registered bondholder.
These problems do not exist today.
can
be
replaced,
whereas
the spent processing coupons and pro¬
The formulas of bygone years do
coupon bond is a bearer instru¬ ducing nothing of benefit to any¬
not necessarily mesh with conment, and if lost, the owner has one. Anyone having experienced
Continued on page 23
the task of pasting coupons back
no rights against a bona-fide pur¬
chaser. Lower insurance costs, as

the

affects

law

pality

example,

mailing for

are re¬
fact that regis¬

the

from

flected

tered bonds

non-negotiable.

are

Disaster: In the event of a nu¬

field has

set

the

stage for

In this often

bond.

istered

cial

Committee

hensively
of the

It is not enough to acknowledge

Securities
U. S. Government and

argues

the

compre¬

good

registered bonds

sense

opposed
cautions

He
something must be done to to coupon bonds.
the change. There is that exceptions to these advan¬
need for a definite program. There tages do exist in the case of mu¬
is need for leadership. The Amer¬ nicipal bonds. The small munici-

that

encourage

tion notice.

Certainly, the regis¬
holder's

bond

tered

assurance

Distributors

Dealers

in the event of re¬
demption or of default must be
comforting

NEW YORK

Underwriters

Hanseatic

BROAD

STREET

•

NEW YORK 4, N

Teletype: 212-571-1234

Telephone: 363-2000
BOSTON

one.

CORPORATION

Established 1920

notice by mail
a

Agency Issues

Corporate and Foreign Bonds

very

Committee, logically and
Bankers Appoint a

Municipal

and

over¬

interesting pamphlet looked advantage we can foresee
still more forceful presentation of entitled
The
Coupon
Bond:
A the elimination of the tragic sit¬
the advantages of the registered Costly
Paradox, Orvel Sebring, uation when the unhappy bond¬
bond.
Advisory Member of our ABA holder misses the public redemp¬
a

State

disaster, identification of a

clear

great share of the wealth of the
country would be lost, almost cer¬
tainly untraceable, if it were of
Although progress to date is lim¬ bond; thereby getting the public
coupon bearer form as opposed to
ited, there is evidence of growing (and let's emphasize that "the
registered form, of which micro¬
skepticism among both the coupon public" is the buyer) to ask for
film or other records of ownership
bondholders, who find the coupon registered bonds?
might be available.
(3) What
can
be
done
to
clipping time-consuming and un¬
Storage: The savings in space
corrective
necessary,
and the issuers, who encourage
legislation
alone
should
be
an
appealing
are
increasingly frustrated by a where needed?
factor in promoting a move by the
needless expenditure in time and
(4) What is the most direct investing public toward fully reg¬
manpower to process the coupons. path
to the elimination of the istered bonds.
This
skepticism
toward
the price differential?
Notice Benefits: Surely, here is
coupon bond
experienced by so
an obvious argument for the reg¬
What About Municipals?
many realistic men in the finan¬

CHICAGO

•

PHILADELPHIA

LOS ANGELES

SAN FRANCISCO

Benefits to the Issuer

Balancing the advantages to the
investing public are benefits of
equal importance to the issuer.
The handling of coupons would be

CANADIAN

keeping

The reduction in in¬

diminished.
surance

record

and

eliminated

cost of mailing fully reg¬

istered bonds would also be avail¬

STOCKS-BONDS
Orders executed

possible by annual
reports and other literature by
registration should engender more
interest in the corporate family
made

cation

all Canadian Exchanges

regular commission rates or traded
in New York

in United

and

States funds.

bonds

CHARLES KING & CO.
Members:
American Stock

61 Broadway

Exchange

Canadian Stock Exchange

Montreal Stock Exchange
•

New York

212 571-1353

WHitehall 4-8980

PRIVATE V/IRES

WITH

TORONTO

CONNECT

AND

the

INCORPORATED

grounds that issues

changes of the United States and
in our over-the-counter markets,

NEW

MONTREAL

YORK

form
traded

stock

settlements

are

made

of the stock

transfers
within

Why

certificates

are

Over-the-counter

daily.

under

the

exchanges and

are
usually completed
forty-eight hour period.

isn't it

worth the

Malvern Hill & Company

coupon

entirely of registered bonds would
not be acceptable to the financial
community.
In
the
stock
ex¬

rules

Royal Bank Bldg., Toronto, Ont., Canada
DIRECT

re¬

billions of dollars of wealth in the

6, N. Y.

Teletype

Telephone:

defer

cannot

Exchange

bondholder

better

foster

lations.

Toronto Stock

The communi¬

able to the issuer.

effort to

get registered bonds on this same
basis
when
the
issue
is
large

MUNICIPAL
115

NEW

BONDS

BROADWAY

YORK

Volume

Number 6198

196

The Commercial and Financial Chronicle

Public Education and Sales
Promotion of

Municipals

probably
wasn't ing to know how many of you find
really much news in the day—fre¬ these releases used in your home¬
quently observations which make town paper? I would be pleased
the underwriters cringe and the to know if you recognize them.
customers go back into their holes

their

(2)

the

(3)

cultivate

(4) maintain the highest trading integrity.'
municipal sector of the investment industry to

"Uniformed

American

Taxpayer An

Educated American

Investor" and the "Uniformed Salesman Informed."

Proper

professional knowledge in furthering public education

use

municipal

securities, he adds, should be the primary goal of all concerned. The
writer

winter—

deplores today's lack of advertising and

your

Uninformed

Taxpayer who is also
AMERICAN INVESTOR.

made, and assays responsibility for the lack of public education.

a stockholder.
It would be
remiss not to include the mag¬
nificent job which has been done

Mr. Stone castigates

being

"assured

tax-exempt

disposed

push

those salesmen whose investment approach has

"profit" or "growth" instead
income,"

and

of the practical
those

high-profit-marginal

inducement to salesmen to

firms

quality

approach

that

have

municipals

our great life insurance com¬
panies and the industry associa¬

community activities of the sub¬
urban

erage
also

9,000
and

communities

their

cov¬

areas. However there are
in our good country, some

English

language weekly
papers
of which
3,000 could be of great serv¬

bi-weekly

some

ice to the Municipal Bond indus¬
as

they

Taxpayer and Investor. These
the

which

papers

will

are

welcome

factual
material
concerning the
of the Savings Banks proper methods of accomplishing
and Savings and Loan Associa¬ a new school program or the new
tions would be equally erroneous. sewer system or water works. It

develop municipal clientele.

for

these

folks

particularly as
American taxpayer is the the
various Washington
Cost of Public Relations
corre¬
well as the "big dailies" that John
best sold but poorest
informed spondents—depending on the slant
I wonder if you have any idea Nash and your committee are pre¬
taxpayer in the world—he is sold of their individual thinking and of the amount of
money which paring a series of stories which
the product—the organization or the editorial policy of the paper.
these various organizations spend we hope can be adapted to fit
the
As our reader thumbs the pages
party
on
an
annual PUBLIC EDUCA¬ local situations, and which have
which has the
to sports—or obituaries or inter¬
TION program? A few years ago the proper technical information
best advertis¬
national news as the case may be
when the committee, of which I covering bond issues — directed
—he gets a pitch from the best
ing and pub¬
am privileged to serve as Chair¬ both
to the information of the
lic
education
advertising agencies in the world
man, was trying to get our Mu¬ voter—and the investor for—HE
—presenting—automobiles by the
p r o g r a m—
nicipal program approved by the IS THE SAME PERSON.
backed by the
page—suits by the hundred— IBA Board of
These suburban papers provide
Governors, we ex¬
shirts by the box and the latest
best talent and
plored a little and found that the an opportunity to reach a new
the
discount house's offer of stereo
biggest
NYSE had a budget in high six group of taxpayer-investors—the
records at hi-fi prices.
budget. He
Working
figures as did the Mutual Funds folks who just moved from the
his way through his coffee and
gets his first
association. This was completely city to the suburbs — just
got
sales pitch in
danish, he finally gets to the fi¬ exclusive of the
expenditures of "over the hump" from the strug¬
nancial section.
the morning
individual member firms or dis¬ gle of keeping up with the rent
when his clock
tributors of the Mutual Funds. Of collector and now join their
Informing the Uninformed
radio—sold to
course, part of this original outlay neighbors in that greatest of all
Taxpayer
him by GE or
is recovered by the sale to mem¬ American struggles
"keeping up
RCA or WestPretty darn dignified and some¬ bers of material for their use in with
Fred D. Stone, Jr.
the Joneses." They must be
what dull by comparison, isn't it?
inghouse or
direct mail, etc.—just as we in the taught about their
community—
True it is 1,000% better than it
Motorola with
Municipal Program have done about its progress and about their
million dollar TV and radio pro¬ was 10 or 15 years ago but still
with our first mail piece, "Why opportunity to make a double
grams—snaps on and wakes him— the "dignity" of the subject for Professional
People Invest in Mu¬
he finds out about the weather the most part demands that the
nicipal Bonds." By the way, this
—courtesy American Airlines and reader be specifically looking for folder has been used to date by
Khrushchev and Dr. Soblen sand¬ this section or he can pass it com¬ more than 135 IBA firms which
wiched in with a pitch for TWA, pletely. It doesn't "command" his have ordered more than
135,000

The

attention

Pakistan National Airlines or per¬

does

full

page

a
new
cigarette
haps the Herald Tribune or Los screaming for
Angeles Times. Between the com¬ brand or a new "sports touring"
model of Detroit Iron. Depending
mercials on his early morning ra¬
dio program—or perhaps as he on the city or community in which
watches the "Today Program" on this morning paper is published,
TV he gets all the latest "leaks" the financial section will be more
planted by the greatest promo¬ or less complete—that is complete
tional
organization in existence according to the best efforts of

today—at least in the U. S.—"the

the staff

Administration"

mand and, of course, the editors'
and publishers' desires.
He gets

they have the
biggest budget—the most talent
plus free time on every broadcast
and in every newspaper. When he
gets to the breakfast table he
scans the morning paper which in
one form or another repeats and
expands the news he heard on
radio

—

quarters"

readers'

de¬

closing stock prices on major ex¬
changes
over-the-counter stock
quotes — some bond quotes — in
many cases these so far from real¬
ity and actual markets as to make
them the bane of

TV and is filled in on the

propaganda

and of the

ence.

trader's exist¬

Occasionally he gets good
stories

pitch from "head¬
it is interpreted by markets.
news

These

about
are

yesterday's

hard to write

copies.

have

One-quarter

dered.

While

ful

our

weren't

efforts

What better medium for

Mr. Bond Man, than to
latest advertisement —

per¬

of the series which

you

haps

one

will

find

released

now

consideration

your

are

intended

office

your

when

get

you

turn the material

advertising man
newspaper

over

to your

or agency or your

and learn well

from the

catchy appeal John Nash
developed for the folder

...

"NOTHING VENTURED—NOTH¬
ING GAINED."
you

business

Remember

in the municipal
competing for the

and all of

are

investor dollar with folks who

—

PLISHED

HAVE

AMERICAN

ACCOM¬

INFORMED

TAXPAYER

these adver¬

tising
a

programs produce? That is
difficult question to answer but

let

read

recently
a

survey

you part of a letter
received, as a result of
we conducted, from one

firm that has

numerous

Continued

entries in
on

U. S. Government,

State, Municipal and

Housing Securities

ing industry have failed to a great
degree to provide these publishers
with the kind of

that makes

news

possible for them to do

job for their paper and
taxpayer and for US.

real

for

the

course, if you are about to
bring out a hundred million dollar
negotiated bridge or turnpike deal
or

U. S. GOVERNMENT

state

aid

is real

STATE

and

MUNICIPAL

SECURITIES

has

there

been

drastic

change in the method of allocating
to

school

reason

for

districts

a news

there

story, and

in the

major financial centers, the
papers do a real job of coverage—
but when you realize that there
1,716 daily newspapers
what percentage of these

are

imagine do
realize
312

are

that

of these

morning

you

do
When

good job?

NewYork
CHEMICAL BANK NEW YORK TRUST COMPANY

dailies

only

and

some

papers

1,458 go home after work with the
Uninformed American Taxpayer—
BOND

DEPARTMENT

wherei he
have

the

WALL

STREET,

NEW

YORK

cation

15,

Telephone: REctor 2-8900

NEW

YORK

The

exposed

readily
great outlet our daily
can

to
see

Municipal Securities.
Washington office of the IBA

now

New York 15

GOVERNMENT BONDS

MUNICIPAL BONDS

Tel: 770-2741

Tel: 770-2661

TWX: NY 1-457

TWX: NY 1-1246

furnishes

new

releases

1,300 of these papers on in¬
dustry-wide subjects such as Fed¬
Aid, Mass Transit, IBA ad
contests, etc. It might be interest¬
some

eral

BOND DEPARTMENT

20 Pine Street,

pa¬

offer to provide Public Edu¬

pers

COMPANY
16

chance

his family as well

contents, you

what

TRUST

and

Chemical

you

printed,

Results of Advertising

Just how well

in the Investment Bank¬

INVESTOR.

be done in the immediate future.

that

are

spending millions—we, however,
happen to have a product, the
quality, flexibility and sales ap¬
peal of which cannot be equaled

reor¬

Public

back

from this meeting—look it over—
order mats if they will serve you

get

You may gather from the fore¬
going observations that I do not
think highly of the efforts of our
public press to do an educational
job on the Uninformed American
Taxpayer as an investor. If I gave
that impression please let me cor¬
rect it immediately—instead I feel

display board in the lobby in
your local "Bugle." This series of
sample ads which John Nash and
your committee have prepared for
our

success¬

enough
money
to really compete with
these other programs—we did get
enough to get started and we are
rather proud of what has been
done to date and what is ready to

run

are

the sales job

sewer.

for newspaper and magazine use
local suburban
papers
"the champions" of the after adaption by your advertising
civic improvements, the sounding department or agency to fit your
board for town council, the re¬ program. They are — we believe*
porter for the Parent-Teachers appealing, corny to some degree,
Association and the best possible as you and me, and technically
medium for the dissemination of correct—and they do provide, we
good
reader
appeal.
A
sound information for the educa¬ know,
tion of the Uninformed American sample of this AD Kit will be in

try

tions in this field and to overlook

been

their own future well-being by
investing in the securities issued
to provide the new school, road
you,

the

Taxpayer concerning the merits of

news coverage in a

great many of our daily and weekly newspapers, despite the strides

been

development of the community by
paying taxes — and second — to

nothing that
These daily papers have some¬
really adds to the PUBLIC EDU- what limited space to cover local

improvement in financial
pages in the past 10-15 years is
largely a result of the public re¬
lations programs which have been
promulgated by various invest¬
ment organizations such as the
N. Y. Stock Exchange, the Mutual
Funds trade organization, plus the
"sales efforts" of big business to
inform
the
Investing American

the secondary market; and

make

often

too

The

(1) improve

admonished to:

upgrade salesmen's selling approach;

Mr. Stone wants the

weeks

all

THE

advertising and dissemination of financial news and investor

education;

six

and

American

New York City

are

for

Advertising in the Weekly Papers

personal contribution—first to the

UCATION

By Fred D. Stone, Jr.,* Vice-President in Charge of Municipal
Dept., The Marine Trust Co. of Western New York,

Municipal underwriters and dealers

there

because

111 Convenient Offices in the New York Area

page

John

The Commercial and Financial Chronicle

Albertson, Baker, Simonds & Co., Inc., Detroit;

New

York;

Newman

William C. B. Magoun, Bacon, Whipple & Co., Chicago; John M. Shanahan, Cruttenden, Podesta
Miller, Chicago; Gordon L. Calvert, Investment Bankers Association, Washington, D. C.;
Walter H. Stohl, Fidelity Union Trust Company, Newark, N. J.

George L. Hamilton, Dominick & Dominick,
W. Baird & Co., Milwaukee; William H. Clark,
Merrill, Turben & Co., Inc., Cleveland

Dunne, Robert

ARNSPIGER,

Attended the Conference

Rowles, Winston &
AUSTIN, J. HOLLIS
J.

Houston

Co.,

W. Tindall & Company,

Atlanta
E. M.
Harris & Company, Toledo
B. NEWTON

BANCROFT,
ABSHIRE, FRANCIS L
Moroney, Beissner
ABY, STANTON
Kalman

ALLEMAN, FERG M.

Co.,

Houston

Leedy,

Inc.,

Minneapolis

AGARD, ROLLIN F.
Kansas

Bond

Council, Topeka

Sterne, Agee & Beach, Birmingham
AHEARN, JOHN W.
AKIN,

Bank

HAROLD

Kuhn,

Loeb

Trust

& Co.,

BARBER,

Orlando

W. H. Newbold's Son & Co., Philadelphia
BARKER, FRED F.
J. A. Hogle & Co., Denver
BARNARD, RICHARD P.
New England Merchants National Bank,

United

Co., Boston

New York

California

Allison-Williams

ARMBRUST,
Pohl

Detroit

Texas Bank & Trust

Inc., San Antonio

Harris Trust and Savings Bank, Chicago
ANDERSON, EDMUND G.
B. J. Van Ingen & Co., Inc., Boston

and

ARNOLD,
Company of Dallas,

Dallas

The

ROLAND

National

Los

Co..

Minneapolis

York

New

Manufacturers

The

Trust

Co.,

JOHN F.

BAUMANN,

Milwaukee

Company,

BECHTEL,
Watling,

CHARLES C.
Lerchen & Co., Detroit
EDWIN L.
Commercial & Financial Chronicle,

BECK,

York

New

City

DELTON
Robertson &

Dewar,

First

The

ALDEN

National

Bank

Chicago,

Angeles

Inc.,

Cleveland

Wichita

Southern

National

Bank,

Atlanta

■

BLEWER, CLARANCE F.
Blewer, Glynn & Co., St. Louis

CECIL

San

COX,
St.

Company,

Inc.,

Wichita

Worth,

Bank

New York

Cleveland

Barr

Chicago

Inc.,

Wichita

Manhattan

Bros.

Co.,

Inc.,

Denver

Inc.,

Denver

Inc.,

St.

Sullivan

Dabbs

Little

Savings

Dinkins

Ladd

Sr.,

Mellon

Texas,

Co.,

'.."V DORE,
Kuhn,

National

T.
&

Co.,

Company,

York

Inc.,

Company, New Orleans
&

Company,

M.
Bank

I.
Investment

New

Trust

Co.,

Corp.,

Richmond

New York

GEORGE

Devine

F.
Co., San

DOWNEY, NORMAN S.
Eastman
Dillon,
Union

CRAWFORD, HENRY J.

New

WILLIAM F.
Loeb & Co.,

DOWLEY,

Richmond

York

DORAN, K.
Mortgage

WALTER W.
&

York

New

Chicago

Louis

;•

York

Francisco
Securities
\

Chicago

BROWN, LAWRENCE H.
The Northern Trust

Company, Chicago
?
STEVE
Barret, Fitch, North & Co., Kansas City
BROWN, WILLIAM T.
C. J. Devine & Co., Chicago
BROWNE, ALAN K.
BROWN,

ORIGINATORS

•

UNDERWRITERS

DISTRIBUTORS

Bank
San

NEW JERSIMUNICIPAL

jani/J
AUTHORITY REVENUE

America,

Reinholdt

Successful municipalities

Gardner, St. Louis
BUCHAN, ANDREW D.
Bacon, Whipple & Co., Chicago
BUELTMAN, EDWIN A.
Blair & Co., Incorporated, New York
BURKHAM, ELZEY G.
G. H. Walker & Company, St. Louis
BURKHOLDER, H. FRANK
Equitable Securities Corporation,
Nashville

OBLIGATIONS

ANTHONY

BUTERA,
National

BYRAM,

State

JOHN

Bank

Newark,

Newark

Northern Trust Co.

GORDON

upon

the independent financial

of their bond issues to

name a

few.

the municipal underwriter and dealer benefit equally.
specialized services of the independent consultant assure
myriad of details such as engineering studies, feasibility
reports, analysis of over-all debt structure and financial public
relations have been carefully planned and attended to prior to
the financing.
And,

For the

that the

firm

has

provided this service for many municipalities
for over a quarter of a century.
We
inquiries from underwriters and dealers about our
uniquely complete and independent services.

throughout

Bankers

Investment

increased

relying

enjoy numerous benefits:
favorable money rates,
underwriter and dealer interest and wider market

acceptance

Our

WILLIAM D.
Phelps, Fenn & Co., New York

BYRNE,

CALVERT,

consultant

Chicago, New York

CADY, CHARLES E.
Cady & Company, Inc., Columbus

Boland, Saffln,

of mutual benefit...

A.,

Francisco

BRYAN, TAYLOR

the

nation

welcome

Association,

Washington

Gordon & Sautter
Established

1920

CAMPBELL, DOUGLAS H.
First of Michigan Corporation,

Detroit

WAINWRIGHT

CAREY, TERRENCE M.

64 WALL STREET, NEW YORK 5, N. Y
Bell

System Teletyp

■212

WHITEHALL 3-1570
571-1055

Consultants

Goodbody & Co., Chicago
CARMEL W.

Field, Richards & Co., Cleveland

CARPENTER, EDWARD E.
McDougal & Condon, Inc.,

70 Pine Street
New York 5, N.

Chicago

York

Philadelphia

New

DOKE, RICHARD
Shearson, Hammill

Bank,

New

York

LADD

DONOVAN, JOHN
Corp

New

Rock

DINKINS,

Jr., WALTER W.
W. Craigie & Co., Richmond
Craigie

Louis

Minneapolis

Bank,

Co.,

WILLIAM

DILLINGHAM,

New

and

St.

DeWITT, GERALD
Kidder, Peabody

J.
Securities

Hopwood,

EDWARD

Reynolds

■

Bank,

Whipple

DEVLIN,

Louis

York

Corporation,

DEMPSEY, JOHN P.
Kidder, Peabody & Co.,
DERREY, ROBERT F.

Squire, Sanders & Dempsey, Cleveland

BROWN, CLAYTON F.
Trust Company,

Chase

DEMPSEY,

CLARK

CRAIGIE,

Louis,

Jaffray

Bacon,

Pickard,

National

Trust

& Wood,

Cleveland

ROBERT

Piper,

Antonio

Harris

St.

DEELEY, WILLIAM E.
A. C.
Allyn & Co., Chicago
DeMILHAU, JOHN W.

CRAIG IE.

BRAMHALL, GEORGE
Eastman Dillon, Union Securities & Co.,

Northern

DAVIS,

and

Columbian

& Company, Chicago
DAVIS, PHILLIP W.
Paine, Webber, Jackson & Curtis,
Chicago

The

National

WALTER J.
Company,
CO WEE, ROBERT
L.
Dempsey-Tegeler & Co.,
COX,

York

New

DAVIS, DEWITT
Mullaney, Wells

Fort

Drexel & Co., New York
COUGHLIN, JAMES M.
Coughlin and Comoany,

Coughlin

Augusta

The

Chicago

Van Ingen & Co., Miami

CORRIGAN, BRIAN

First

COUGHLIN,

BONEY, JACK R.
Ryan, Sutherland and Company, Toledo
BONNIWELL, DONALD R.
Cruttenden, Podesta & Miller, Chicago
BORGMEYER, ELMER F.
Mercantile Trust Company, St. Louis
BOYDE, D. HUDSON
Johnson, Lane, Space & Co., Inc.,
BRADLEY, DAVID F.
Milburn, Cochran &

Co.,
Bank

Louis

The

& Co.,

Corbett

MARTIN

National

Cleveland

Bank

Illinois

COUFFER, JAMES

BLACKWOOD, W. H., Jr.
&

JOHN

Stockyards

A.,

New

Cleveland

ALEXANDER W.

Burns,

& Company,

Citizens

Chicago
DARMSTATTER, E. WM.
Stifel, Nicolaus & Co., Inc.,
DAVIS, CLARENCE F.

Council of

Inc.,

Co.,

Chicago

J. Mericka

Pittsburgh

CORBETT, W. J.

A.
Co.,

BLACKWOOD, RICHARD W.
Ranson

COOK,

Birely and Company, Washington
&

Co.,
K. V

National

Co.,

CURLEY, FA Aw K E.
Hawkins, Delafifld

COOK, ROBERT H.

BRUCE

St.

GLENN B.

First

CUNNINGHAM, ROBERT J.
Singer, Deane & Scribner,

First National Bank in Dallas, Dallas
CLEAVE, WALTER C.
Blyth & Co., Inc., Chicago
CLELAND, JOHN D.
Ssltsam, Hanni & Co., Inc., Topeka

COATS,

Devine

First

Chicago

JOHN

JOSEPH

CROWE,

Company,

Officers

Goldman, Sachs &
CLAYTON, JOHN B.

Wm.

Inc.,

BIRELY, WILLIAM C.

Read

America,

Francisco

CUTLER, PAUL WM.
Chapman and Cutler,

Can^dT

Turben

San

White, Weld & Co., Chicago
COOK, R. J.

CURTIS H.
Bingham, Walter & Hurry,

Fulton,

Bank

Finance

Trust

Chicago

BLACKIE,

CONAGHAN,

BINGHAM,
Los

Municipal

Continental

Trust

WILLIAM W.
Lyons & Co., Louisville
GLENN N.

CROSS,

Fojrt Worth

Pancoast,

Antonio

BERGQUIST,

CREMER,

CLARK, WILLIAM H.

The

BENNETT,
San

JOSEPH

CLAUSON,

Hanover

York

New

CLARK,

Merrill

BARTLETT, CRAIG S.

City Bank of Cleveland,

Cleveland

Bank

CRAWFORD,

Winston-Salem

S'T^veport

BARROWCLOUGH, GEORGE L,
First of Michigan Corporation, Chicago
BARRY, DAVID J.
Manufacturers Hanover Trust Co.,

Cincinnati

CARR, FRANK C.
John Nuveen & Co., Chicago
CARTER, THOMAS L.
Loewi & Co., Incorporated, Milwaukee
CHAMBERS, MICHAEL T.
R. W. Pressprich & Co., New York
CHESTON, EUGENE M.
Drexel & Co., New York
CHRISTY, WILLIAM L.
Reynolds & Co., Chicago
CLARK, HAROLD W.
The Cherokee Securities Co., Nashville
CLARK, JACK
Wachovia

Learv

Barrow

Angeles

Inc.,

WM.

BARROW,

Company,

JOHN

Co.,

Boston

Bank,

ANDERSON, WESLEY

Co.,

TED

Wheeler & Alleman, Inc.,
M. E.

Allison

ANDERSON, HERBERT

ALBERTSON, JOHN A.
Baker, Simonds & Co., Inc.,
ALEXANDER,

ALTGELT,

Advisory

AGEE, RUCKER

State Street

Stranahan,

ALLISON,

Company,

Thursday, September 27, 1962

...

RAMSEY Inc.

Municipal Finance

First Nat'l. Bank

Bldg.

Miami 32, Fla.

Wyatt Building

Washington 5, D. C.

Co.,

Volume

196

Number 6198

The Commercial and Financial Chronicle

R. J.

Cook,

John

•

Wm. J. Mericka & Co., Inc., Cleveland; William A. Devlin, Reynolds & Co., New York;
Milhau, The Chase Manhattan Bank, New York; Wallace Sellers, Merrill Lynch, Pierce,
York; 0. Jack Talbot, Northwestern National Bank of Minneapolis

Russell

M. Ergood, Jr., Stroud & Company,
Incorporated, Philadelphia; Curtis H. Bingham,
Bingham, Walter & Hurry, Inc., Los Angeles; Walter A. Schmidt, Schmidt, Roberts «ft
Parke, Philadelphia; George B. Wendt, First National Bank, Chicago

Fenner & Smith Incorporated, New

DRABIK,
A.

GUSTAV

Becker

FINCH, DAVID

Co.,

The

Incorporated,

DUDDY,

THOMAS E.
Brothers, Chicago
DUMPER, WILLIAM J.
New

and

A.
Co.,
NEUMAN L.

Devine

DUNNE,
Robert

Baird

New

York

New

York

Cullom

EDNER,
First

Co.,

York

New

Bank

Western

Trust

Company,

Los Angeles

EDWARDS, JOHN H.
R.

Edwards,

ELLIS, JOE
First

Morgan

Oklahoma

City

Southwest

ELLSON,
New

Inc.,

Company;

WILLIAM
Guaranty

Dallas

Wm.

SHERMAN

Harper

JOHN

Son

and

Ranson

Co.,

Inc.,

Wichita

New

JOHN
Hutton

York

Rodman

GARLAND,

Securities

Alex.

Corporation,

Nashville

FARRA,

JOHN N.
Kidder, Peabody

Little

GUASTELLA, ARTHUR R.

Rock

Washington

Co.,

GORDON, RICHARD D.
The Bank of California,
San

Co.,

Lexington

FAUST,

Co.,

Chicago

The Bond

A.,

United

Chicago,

Spencer

York

Mayors,

Trask

Liberty National Bank & Trust Company,
Oklahoma City
GEO.

Pont

Co.,

Chicago

Dominick & Dominick, New York

ROBERT

Co., New York
W. H.
Braun, Bosworth & Co., Chicago
HANAUER, LEONARD
Ira Haupt & Co., New York
HANDS, II. W.

HAMMOND,

Boettcher and Company,

HANSON,

Chicago

MURRAY

Investment

Bankers

Association,

Washington

Co.,

New York

HALL,

GREEN, GEO. H. C.

III,

HALL, DENTON D.

The First National Bank of

GREEN

Conference

Washington

GORMAN, ARTHUR C.
New

States

Laidlaw

GUNTHER, JOHN J.
N.

Francisco

WILLIAM

Francis

HAMILTON, GEORGE L.
HAMILTON,

Buyer, New York

GUERNSEY, DAVID T.
B. J. Van Ingen &
Co., Inc., New York
GUMBINER, DONALD L.
Stern Brothers & Co., Kansas City

Company, Cleveland
ARTHUR E.

GEORGE W.
Wm. E, Pollok & Co.,

HARDING,
Coffin

Inc., New York

HALL; RICHARD A.
The First National Bank of
Boston

WILLIAM

Burr,

Boston

HARRIS,

I. DOUGLAS
Henry Harris & Sons,

Boston,

Inc., New York

Continued

page

Liberty National Bank & Trust Company,
Oklahoma City

Detroit

Fleming

w
©;:

•:¥

ill!
s&i

*S:i- Mi •ffi

1
.

Co.,

Dealers

V'.-.'

JAMES P.

Renshaw,

CHARLES

Brown

Chicago

Sons, Baltimore

Municipal Bonds

GASKELL, THEODORE A.
Hayden, Miller & Co., Cleveland

B.
&

Ginther

^V"

Weeks,
ARTHUR S.

GALLAGHER,

PEYTON

Cumberland

GILLIAM,

Dallas

HALL,

Houston

Nolan,

Company,
MURRAY C.

W.
R. W. Pressprich & Co., New York
GALLAGHER, FRANCIS P.
W. H. Morton & Co., Incorporated,

RUSSELL M.
Company, Incorporated,
Philadelphia

EVANS,

GREET, JOHN M.
McClung & Knickerbocker, Inc.. Houston
GREGORY, ROBERT H.
Gregory & Sons, New York

Chicago

Washington
FRIEND, WALTER

Company,

ERGOOD,
Stroud

&
Frederking,
WILFRED J.

Hornblower

FRIEND,
Folger,

Hutzler,

GOODWIN,

BYRON C.
Westheimer & Company,
Cincinnati
FRANKLIN, HARVEY
Merrill Lynch, Pierce, Fenner & Smith
Inc.,
San
Francisco
FREDERICK, PAUL
Fahnestock & Co., New York
FREDERKING, WILBUR H.
FRIDAY,

Seattle

ENGSTROM,

Company,

FOSTER,

Company,

C. H. Little and Company, Jackson
GINTHER, NELSON D.

Fridley

E.
Trust

York

ELLSWORTH,

Pittsburgh

Houston

Davis

CLARENCE

Scribner,

Co., Chicago
FOSDICK, JOHN JAY
Eddleman, Pollok & Fosdick, Inc.,

Curtis,

Brothers

Johnston, Lemon
&

Salomon
Sanders

Villareal

EBBITT, KENNETH C.
Shelby

FLOSI, FRED C.
Smith, Barney

EATON, ELMER C.
Paine,
Webber, Jackson

Chicago,

FLECHT, ELMER

Milwaukee

Co.,

Co., New York
FITZGERALD, WALTER J.
R. W. Pressprich & Co., Chicago

STEWART

JOHN

Wertheim

Bank,

Bank

GILBERT, R. R.

Deane

FITTERER,

Savings

GERKEN, CHARLES H.

CHARLES

Singer,

York

DUNN,
C.

Trust

National

York

FISHER,

Lehman

Harris

First

New

Chicago

GENTRY, EDWIN
Pierce, Carrison, Wulbern,
Birmingham

Inc.,

Hew Jersey
Specialists in
V'-' "'V'.'"'' V*

' '• 'J

Tax

.'',

■

THE PHILADELPHIA
NATIONAL BANK
Organized 1803

■

Exempt

Representatives
Broad and Chestnut Streets

Philadelphia, Pennsylvania

One Chase Manhattan Plaza
New

York, New York

Bonds

%NATIONAL
STATE BANK
NEWARK, N. J.
ESTABLISHED

1812

Dealers in

BONDS

Member Federal

INOOOLOrs
■

LEBENTHAL(/CO.,

Insurance

Deposit

MUNICIPAL BONDS

Corporation

LEBEINTHAL& COJNC.
ONE CHASE MANHATTAN PLAZA

•

NEW YORK 5,

N. Y.

HA 5-6116

Oldest House in America

PHILADELPHIA TRUST COMPANY

Specializing in

ODD LOT MUNICIPAL BONDS

Municipal Bond Division
Philadelphia 9, Pa.

Telephone 985-8071

The Commercial and Financial Chronicle

Bill

Donald

Noonan, Continental Illinois National Bank A Trust Co., Chicago; Marsom B. Pratt,
A Co., Boston;
Alan K. Browne, Bank of America, N. T. A S. A., San
Francisco; Walter A. Schmidt, Schmidt, Roberts A Parke, Philadelphia; John Perkins,
Continental Illinois National Bank A Trust Company, Chicago

railroads

Investment Banking
Continued from page 3

ities, services, taxes, and into all

"It

of their other economic and social

implications, it
all of

seems

vital role which

our

difficult

exag¬

and

airlines, producers
and merchandise

of all kinds, oil companies and
public utilities, down to compara¬
tively small manufacturing plants

The variety and use¬
these myriad enter¬

and stores.

fulness

business has

played and is playing in our eco¬
nomic, social and political system
as we know it today.

York;

John

Richard

gerate ithe importance of invest¬ prises defy description. They are
ment
banking
to
the
national the result of American ingenuity
economy.
The
vast
industrial and the will to work unceasingly
growth of the past fifty years has and to improve our standard of

to me that
of the

be very proud

can

would

one

Chemical

Miner,
New

commodities

qualified legal opinion; I have
for you in point, and I quote:

Chase Manhattan Bank,

Estabrook

this

area

Thursday, September 27, 1962

Bank New York Trust Company, New York; Kenneth J. Sickler,
New York; Francis P. Gallapner, Jr., W. H. Morton A Co. Inc.,
P. Byram,^The Northern Trust; Company* ; New;4Ypric j:
F. Mulligan, Robert Garrett A Sons, Baltimore

from John Mitchell1

I shall

only say be ever watchful
of the attempts which have been,

are

being,

and will be made to

have Washington usurp your func¬
tion.
I
have been
deeply im¬

Just

one

final comment.

living. But adequate financing for
The major challenge facing the
manufacturing, proc¬ their needs is the life blood with¬
essing,
sales
and
distributing out which many if not most of XT. Si economy and in turn our¬
Medina Quotation
plants, the smooth functioning of these parts of the great machine of selves, is to continue to demon¬
I understand, however, that you which is vital to our welfare as a business would cease to function strate to a skeptical world that
our
free
market
economy,
al¬
municipal men are unimpressed nation. They vary from huge cor¬ in a healthy, normal fashion."
though confronted with new and
by figures and arguments unless porate structures such as the great
That quotation is taken for the vexing problems, still provides the
steel and automobile companies,
they are accompanied by an un¬
first paragraph of Judge Medina's best and only lasting answer to
opinion in the so-called Invest¬ the material needs of men. If I
ment
Bankers
Anti-Trust case. may be permitted one last quo¬
Need I say more on this point.
tation, I would like to refer to
one from a speech made by Bob
It
must
be
equally
obvious, Garner, former President, IFC.
however, that we cannot just rest The theme of his speech delivered
of

Underwriters

oars

our

and

assume

water will always be
Our
of

#?omiiarg Market imperialists

Municipal Bonds
DIRECT WIRES TO—NEW YORK

•

SAN

FRANCISCO

•

DALLAS

that the

placid.

long
our

industry's place in the world
is assured only so
we

continually

develop

main asset, the ability to raise

capital through the distribution of
securities, This ability, which no
one else possesses, in like degree,
must be conducted with the high¬
est degree of integrity.
We can¬
not and must not fail for we have
all noted the tendency of the Fed¬
eral Government to be ever eager

Ira Haupt
NEW YORK

CHICAGO

•

SAN FRANCISCO

many areas
seems to me,

•

DALLAS

BEVERLY HILLS

•

step in where the private sec¬

tor fails, and in

Co.

the

best

product to
of
living is
proof of that. It has accomplished
what

standard

socialism

for

some

hope

merely

promises

indefinite future.

all

you

take

heart

Denmark
"Will

last

year

was

en¬

Private

Enterprise
Fight
to
Survive — Communists
Determined to Destroy Us." Bob
made many fine points in this talk
but I particularly noted his ad¬
monitions to business. The quote
is a simple one: "Private business
faces the danger of being destroyed
because of poor public relations."
It
is not enough
for private
business to manufacture its prod¬
ucts
efficiently
or
render
its

services

effectively.

good

dustry

his bond. No other in¬

boast of the tremen¬
dous volume transacted each day
can

by word of mouth. The great pre¬
ponderance of people in our in¬
dustry are ethical and sincere.
But the transgressions of a few
reflect
on
the
entire
industry.
IJnfortunately, our industry is not
generally publicized for its great
contributions

the

free

enter¬

prise system, to which I have just
referred, for the vital part we
play in providing capital to our
industry and municipalities. I am
afraid
and

image, rather, has been
fashioned by publicity on

our

the

sensational, the amassing of
great fortune, the fight for con¬
of a company, the failure of
a company, or the misdeeds of a
relatively few people engaged in
our industry. Thus far this year
I have made a special effort to get
across this point at various meet¬
ings I have had with the press.
a

trol

Where

have had time to talk

things out, these efforts have been
Today busi¬ very much worthwhile. I recom¬

mend, therefore, that each of you
the take it upon himself to do like¬
with
your local
financial
press, the educators and church¬ wise
it hasn't.
It
there¬
men, and finally the voters, that editors and reporters if we are to
fore, that it behooves each and our system performs its economic present to the public, in perspec¬
every one of us to take every ap¬ function
better than
any
other tive,
the
true
image
of
our
propriate action to make our par¬ system. It is an educational task industry.
ticular segment of the economy all
of us must assume.
to

Members New York Slock Exchange and other principal Exchanges

titled

commerce

have

Our

pressed by the overall effective¬ some of these observations and
translate them into action. Our
ness of your work in this area to
date but I would point out that industry is based on integrity and
you cannot rest on your accom¬ honesty and competence. It is an
industry in which a man's word is
plishments.

covered the United States with a

network

sell.

nessmen

vince

must also be able to

con¬

others—the politicians,

where

We must all work to remove

tick.

unnecessary

impediments

markets,

capital

and

for

our

tax

Mitchell's address
where in this issue.
I Mr.

appears

else¬

From a talk by Mr. Bingham before
First Municipal Conference, Chicago,
111., Sept. 11, 1962.

the

structure which will provide nec¬

The Illinois Company
INCORPORATED

essary revenues but, at the same
time, make for a business climate
which encourages savings and in¬
vestment. Such a happy situation
would not only be good for us
selfishly but, I am certain, in the
long run it would be in the best
Interest of our economy and way

It
MEMBERS
•

•

DEALERS

ILLINOIS

of life.

Established 1933

NEW YORK STOCK EXCHANGE

UNDERWRITERS • DISTRIBUTORS

MIDWEST STOCK EXCHANGE

CORRESPONDENT
ESTABROOK & CO., NEW YORK, BOSTON

seems

devised

for

admirable

and

that those of you

operating in the municipal area
have
special
opportunities
and
obligations of like kind.
In my
judgment
the founding fathers
our

government

system

checks

General Market

Municipal

and Revenue Bonds

and

balances, both within the Federal
UNDERWRITERS

•

DEALERS

•

BROKERS

CORPORATE AND MUNICIPAL SECURITIES
Private

Financing and Sales Negotiated

Government

and

between

the

Federal, State and local govern¬
ments. I would hope that we can
ever keep it so.
However, in spite
of the

tremendous

job which the

states

and
municipalities, with
help, have done, particularly
since World War II, in financing
local public facilities of all types,

your

231

SOUTH LA SALLE STREET

FINANCIAL 6-3400

•

CHICAGO 4

TELETYPE 312 222-0462

ber

have
of

grams

an ever increasing num¬
Federally subsidized pro¬
edging in. You will doubt¬

less get a play by play account in

Financial 6*3344

120 So. La Salle

Street, Chicago 3

312 222*0429

Volume 196

Number 6198

The Commercial and Financial Chronicle

Underwriters and Distributors
of

Corporate and

Tax-Exempt Securities

William Blair &
135 South LaSalle Street,

Company

Chicago 3, Illinois

Membersl

Gary MacLeod, Pacific Northwest Company, Seattle; S. D. Arnspiger, Rowles, Winston & Co., Houston;
Stuart Stevenson, Bankers Trust Company, New York; C. D. Swanson,
Hooker & Fay, Inc., San Francisco

New York Stock Exchange,

Midwest Stock Exchange

jSaoonTff^ipp^e §Go,
Investment Securities
members
new

midwest

John

Jay Fosdick, Eddleman, Pollok & Fosdick Inc., Houston; Glenn R. Schultz, Continental Illinois
Trust Company, Chicago; John K. Clauson, Goldman, Sachs & Co., Chicago;
Terry, Saunders, Stiver & Co., Cleveland; Fred F. Barker, J. A. Hogle & Co., Denver

National Bank &

stock

york

stock

american

stock

exchange
exchange

exchange

John F.

(associate)

UNDERWRITERS AND DISTRIBUTORS
PRIVATE FINANCING

135

South

One

LaSalle Street

Chicago

Chase Manhattan
Plaza

New

Telephone STate 2-3lOO

York

City

Telephone BO 9-2070

Since 1923
Marlin, Bache & Co., New York; Byron J. Sayre, Ira Haupt & Co., Chicago; Drayton
Nabers, First National Bank, Birmingham, Ala.; Arthur S. Friend, Folger, Nolan, Fleming & Co., Inc.,
Washington, D. C.
William M.

Specializing Exclusively in

STATE

and

MUNICIPAL

BONDS

BRAUN. B0SW0R7H & CO.
INCORPORATED

MUNICIPAL BONDS

new york

toledo

chicago

Paul

E. Uhl, United California Bank, Los Angeles;
Arthur C. Gorman, First National Bank of

C. J.

Devine

Robert J. Zimmer, First National Bank, Chicago;
Chicago, New York; George F. Dowley,

Co., San Francisco

•

cleveland

detroit

The Commercial and Financial Chronicle

Thursday, September 27, 1962

John

Kramer, Harriman Ripley

Co. Incorporated,

York;

New

Tom W. Masterson, Underwood, Neuhaus A Co., Inc., Houston;
Lewis F. Lyne, Mercantile National Bank at Dallas

Davis, John Nuveen
Hornblower

for

Federal Legislation in the
Field of

Municipal Finance

Continued from page 5
Act

grants to local public agencies for
the purpose of carrying out urban
renewal projects, generally con¬
sisting
of
the
acquisition
and
clearance
of
land,
installation
thereon of utilities, facilities and
Administration under di¬
of the Administrator
of improvements and the disposition

1949, is the second oldest
and largest of the Federal air pro¬
grams under consideration.
It is
administered by the Urban Re¬
newal
rection

the

of such

and

land for

controlled reuse,
and Home Finance
provides temporary in most cases by private enter¬
definitive loans and capital prise; Temporary loans are made

Housing
Agency and

John

the

gross

& Co., Chicago; Wilfred J. Friday,
Weeks, Detroit; J. David Everard,
& Co., New York

purpose
of paying the
project cost; definitive loans

cover

the value of land retained

one-fourth of net project cost,

which may be in the form of cash,
land or certain public buildings
facilities.

last

report,

nearly four billion dollars of

1840

Underwriters, distributors
dealers

and

municipal securities.

corporate

funds required to make

ur¬

ROBERT GARRETT & SONS
South Gr

YORK

NEW
One

Redwood Streets

Chase

Manhattan
HAnover

MUlberry 5-7600

a pledge by the local
public agency of the loan contract
as security for the repayment of

gross project
costs.
The requi¬
sition agreement method of financ¬

ing

has

secure

also

been

employed to
obligations is¬
local public agency to

definitive

sued

com¬

the local

grants-in-aid,

private
investors
purchased obligations
issued by local public agencies in
lieu
of
availing themselves
of

have

BALTIMORE

consent to

by a
provide funds equal to the im¬
mitted by the Administrator for
puted value of land in a project
more than 900 separate
retained
projects.
by
the
local
public
agency.
The principal applied in
Private Urban Renewal Financing
this definitive financing was sub¬
Private financing has had and stantially the same, the term of
will continue to have a part in the loan and requisition agree¬
providing monies to carry out ment being longer.
Additional
urban renewal projects. In addi¬ long term
financing of this type
tion to the purchase of obligations will undoubtedly be
forthcoming
issued by the States and their as more local public agencies re¬
tain title to land for lease to repolitical subdivisions to provide
ban renewal funds had been

and

Wehrheim, Philadelphia National Bank, Philadelphia; William N.
Robertson, Marine Trust Company of Western New York, New York;
J. E. O'Sullivan,
Philadelphia National Bank, Philadelphia

Plaza

2-6140

also

developers and provision must be
made for payment of the imputed
value in reduction of gross project
cost. I
It is

interesting to note that the

Federal loans at higher rates. Such

provisions

financing

under the

expressly

provided

for in the Federal urban renewal

legislation

that

contracts

for

Federal

for

private

financing

Federal urban renewal

legislation

provide for the only
tax-exempt direct obligations of

loans may be made sub¬
ject to the condition that, if at any

the Federal Government

time

acted

955-1134

New York Stock

Exchange, American Stock Exchange (Associate)

public

Federal Government agrees to pay
or cause to be paid when due the

Government

391

currently
By legislation en¬
1961,
provision
is
made for a procedure, currently
adopted, pursuant to which the

agency can obtain loan funds from
sources
other than
the Federal

TELETYPE:

Members:

principal

Philadelphia-Oullimore Stock Exchange

loan

Underwriters

such

Firm Bids

TENN.

'Memphis

Dealers

Offerings

period

it
of

local

interest

rates

provided in the
do

may

loan

with

the

Administrator

and

for

times

the
at

such

periods
waiving or surrendering
rights to loan funds under the

contract,
Firm

any

being

issued.
in

books,

Investment
is

that

far as the
concerned,
Community Facili¬
so

Banker

the

and,

Administrator

such

case,

authorized

the
to

The

area.

law

further

provides

that the loans shall not

be made
unless the financial assistance ap¬

plied for is not otherwise avail¬
able

reasonable

The

terms.

loan rate, to be determined by the

Administrator,

has

been

estab¬

lished under a formula related to
the cost of the money the agency
must borrow from the U. S. Treas¬

reflecting the

ury

annual

average

interest cost of the entire interest-

bearing debt of the United States.
The
an

1955

legislation authorized
of $100,000,000 in

aggregate

loan

funds, to which

additional

Under

the

the total

was

added

$50,000,000
in
Housing Act of

authorization

was

1960.

1961,
set at

$650,000,000 with $50,000,000 ear¬
marked to finance the acquisition,
construction, reconstruction and
improvement
of
facilities
and
equipment for

use

portation

service in

Upwards

mass

trans¬

urban

areas.

$150,000,000

of such
loans have been approved since
the inception of the program. A
comparable program exists under
the

Area

1961

Redevelopment

Act

by the Area
Redevelopment Administration in
the
Department
of
Commerce.
This program authorizes $75,000,000 in grants for public facilities

public agency and pledges the full

faith

the projects cannot be undertaken

and

credit

the

United

States to such payments.
Most Controversial Program

Perhaps the most controversial
Federal program now on the leg¬

designated

depressed

areas,

available

The CFA

also

"reasonable
administers

terms".
a

pro-

Quotations

•

General

Market

Municipals

MasON;cHagan
INVESTMENTS

First National Bank
OF

TELETYPES

Swee

MEMPHIS

(Area Code 901)
WIRE

278-1591

SYSTEM-.THE

TELEPHONE
BANK

WIRE

525-8521

1017

1433

t929
UNDERWRITERS •

DEALERS • DISTRIBUTORS

—

EAST

RICHMOND

MAIN

without such assistance, and $100,000,000 in loans for similar proj¬
ects, if the funds are not otherwise

administered

of and interest on the
obligations issued
by the local

without
any

Distributors

for

the

than

contract,
''

contract

consent
A

times

periods during the life of the

lower

f. ,,A.

islative

by the local public agency, and the principal of and interest on ties Administration. This program
capital grants to pay two-thirds the loan funds so obtained.
was enacted in 1955 as a substitute
The foregoing statutory provi¬ for
(or three-fourths in the case of
the
existing RFC program.
certain designated areas)
of the sion accommodates both short- and The basic authorization of this
net project cost, the same being long-term financing under the
program is the providing of Fed¬
the difference between the total "requisition
agreement" procedure eral loans to municipalities and
project cost and the aggregate of mentioned above in connection instrumentalities to finance proj¬
the sales prices of land and prop¬ with
temporary financing of the ects for public works and facilities.
erty sold and capital values im¬ low-rent housing program. Hun¬ The program is confined by law
dreds
of
millions
puted to property retained by the
of
dollars of to localities under 50,000 popula¬
local public
agency.
The local "Preliminary Loan Notes" so se¬ tion, or under 150,000 population
cured have been issued and will if they are located in an econom¬
public agency is obligated to pay
or
provide the other one-third be issued to provide funds to pay ically
depressed redevelopment

and

Established

R. V.

Nuveen

STREET, RICHMOND,

VIRGINIA

ROAD, WILLIAMSBURG,

VIRGINIA

Members Richmond Stock Exchange, Philadelphia-Baltimore Stock Exchange

Telephone Ml 8*2841

Teletype 703 649*3949

Volume

196

Number 6198

The Commercial and Financial Chronicle

^
^

i|:

II"

V*
1 If

N
John

First National Bank, Dallas; Joseph F. Zunic,
Company, Pittsburghf R. R. Gilbert, Jr.,
Sanders & Company, Dallas

Clayton III,

Thomas

George
The

B. Wendt,

n
^SSS&SS.

First

National

Bank,

Chicago;

Pat

Northern Trust Company. Chicago; Thomas
United California Bank, Los Angeles

Kenneth C. Ebbitt, Shelby Cullom Davis <ft Co., New York; James F.

Morris,

Reilly, Goodbody & Co.. New York; Terrence M. Carey,
Goodbody & Co., Chicago

E. Morris,

Such legislation
of interest free advances to housing for married students and rent Congress.
municipalities for the planning of faculty members and to hospitals includes the proposed Urban Mass
certain public works.
Construc¬ for housing student nurses and in¬ Transportation Act and a proposed
tion costs of such projects may or terns. In the past 10 year life of Public Works Act. The final forms
may
not be financed by CFA this program, the Agency has ap¬ of such legislation have not been
definitive loans.
proved more than 1^ billion dol¬ determined, as in the case of the
lars of such loans.
The current proposed Mass Transportation Act
As stated before, in the admin¬
istration of the CFA program, the loan rate under this program is not yet passed, the bills in the
Administrator is required to set 3&%; also raised by Ys% for the respective Houses vary, and, in
gram

availability

private

reasonable terms.

ing

lending

rates

trator has based the
rate
U.

financing

In establish¬

the

Adminis¬

same

the

charged the agency by the
S.
Treasury plus additional

amounts

administrative

cover

costs and to provide reserves. As
of July 1, 1962, the beginning of
a

new

Federal fiscal year,

ministrator increased

the

the Ad¬
general

CFA loan rate from 3% % to 3%%
and the loan rate in depressed re¬
development areas from 3^% to
3%%.
Similarly, for the purpose
of determining the availability of
private financing on reasonable
terms, as of July 1, 1962, the Ad¬

ministrator

has

the

set

30 years or longer, and
3%% for similar maturities
loans in

redevelopment

shorter term loans
earlier

rate

reduction
loan.

%%
in

for each
length

the

ties Administration

housing

program

year

justifiable criticism.

sure

that

also

increased

of July 1, 1962.

by
Congress

equipment,

islation

loan

seeks

increase

the

which provides

Houses of

that

all

financial

Additional Federal legislation in
for ihe field of municipal finance is

and
dining accommodations
single students, for college unions,

now

being considered by the

Underwriters and Distributors of
MUNICIPAL

BONDS

programs

sider

cur¬

are

and

still

times

matters

between

the

Congress.

this program has been authorized

by law, within certain standards,
to

the

set

hibited

loan

from

assistance

rates

and

providing

"unless

the

Continued

in General
States and

Municipalities

40 Water Street, Boston 6, Mass.

TWX Boston 305

con¬
of their

purposes.

The National
Low Cost Housing Merits

Federally-aided
lic

housing has

safe

and

those

low-rent

provided

sanitary

who

afford

could

pub¬

housing
not

resources

oj Boston

for

otherwise

pay

and

added

the

local

project

Federally-aided
is

Shawmut Bank

decent,

for the same and
which private enterprise could not
afford to provide; through the re¬
quirement of equivalent elimi¬
nation, has removed substandard
and
insanitary housing; has re¬
duced
required public expendi¬
tures for health, fire and police

MARYLAND,

VIRGINIA,

MUNICIPAL SECURITIES
Direct

areas.

urban

habilitation of such

blighted

and

renewal

our

cities,

least

our

with

re¬

to the last mentioned item,
certain investment bankers must

NATIONAL BANK OF

RHODE ISLAND
Providence * Second Oldest Bank in America

think so as they have been under¬
writing Tax Allocation Bonds is¬
sued
by local agencies in Cal¬
ifornia payable solely from the
in

taxes

velopment of

after

the

designated

facilities

and

other

CO.,

ESTABLISHED

1920

Johnston, Lemon & Co.
MEMBER

Philadelphia-Baltimore Stock Exchange
Boston Stock Exchange
(Assoc.)
Pittsburgh Stock Exchange (Assoc.)
Montreal

UNDERWRITERS

Stock

Exchange

(Assoc.)

DISTRIBUTORS

DEALERS

rede¬

area.

Likewise, local public works
and facilities, college and senior
citizen housing, mass transporta¬
tion

New York Correspondent

spect

increase

Wire

areas

tax resources of

localities—at

Private

CARL M. LOEB, RHOADES &

remove

deteriorated

and GENERAL MARKET

tax

helping to save the core area of
cities, aid in the economic re¬

and added to the

INDUSTRIAL

Area Code 617

Telephone LAfayette 3-6800

Southern

Building, Washington 5, D. C.
Telephone: STerling 3*3130

Bell

Teletype:

Municipal

Dept.

202-965-0887

similar

in most instances, are
quite desirable. But—desirability
purposes,

is not the total question in consid¬

Branch Office:

Alexandria, Va.

pro¬

financial
financial

Obligations of

our

of
local
public bodies
public works.
As
noted
above,
the
Administrator
of

necessarily

^nust

the intrinsic merits

services

Municipal Bond Department
*

loans

for

Underwriters & Dealers

Any discussion of these Federal

authority of the HHFA under
$225,000,000.

Current Congressional Legislation

Works

disagreement

this program to

is the college

Public

expenditure

$125,000,000 and appro¬
priated $80,000,000 for the pur¬
poses of such loans. Pending leg¬

loans to colleges and universities,
both public and private, for living

Main Office,

tion of the CFA program for direct

would be raised here by a conten¬

tion

In the latter

argument category, has been the administra-L

facilities

priations and methods

is 3^%

has authorized loans for this pro¬

the

vided.

the present problem of unemploy¬
ment. The amounts of the appro¬

Senior Citizens Housing pro¬

y8%

admin¬
Facili¬

AND

improvement

The current loan rate of this pro¬

Programs

STATE

and

transportation

and, in the case
Act, for
direct Federal appropriations to
accelerate the construction of pub¬
lic
works
by States and their
political subdivisions to overcome

gram

Other Housing

struction

and

gram

A second loan program
istered by the Community

loan

sons

re¬

CFA

bodies for rental housing for per¬
62 years of age and older.

for blocks of

benchmark

the

gram
providing direct loans to
private
non-profit
corporations,
cooperatives and certain public

For

areas.

than

Still another lending program
administered under the HHFA is

maturities, the reasonable

interest
duced

lower

mass

the

4% for general CFA loans matur¬

ing

rate.

rate

being below that available from
private investors. While in some
cases this practice may be justi¬
fied, its application in others has
been questionable and resulted in

fields.

these

require¬
the case of the proposed Public ments,
current Federal fiscal year.
to the
extent
feasible,
In
administering
the
public Works Act, the bills passed by the should be furnished by private
works and facilities loans and col¬ Houses must be reconciled. Gen¬ capital. However, some of these
lege housing loans, the CFA re¬ erally, they provide in the case of programs require a subsidy to en¬
quires the lender to offer its ob¬ the Mass Transportation Act, in able them to meet their objectives.
ligations for public sale, with a addition to the existing $50,000,- This has been provided in some
standby bid of the CFA at the 000 loan authority, for capital instances by the interest rate set
loan rate for all of the bonds of¬ grant
funds in the amount of on direct Federal loans; the same
fered, in blocks covering the first $500,000,000 expendable over the
10 years of maturity and in 5 next 3 year period, on a matching
year blocks subsequent
thereto. % Federal % local basis, to assist
Private underwriters
have pur¬ States and local public agencies,
chased a substantial volume of ob¬ and
public
and
private
ma is
ligations by such block purchases transportation companies, in
at interest rates required to equal financing
the
acquisition, con¬

the loan rate and to determine the

Federal
undertakings
in
Rather, the inquiry
should be as to how and by whom
the
financial
requirements
of
these
programs
should be pro¬
ering

page

The Commercial and Financial Chronicle

F. Musson, Newburger, Loeb & Co., New York; James
Klingel, Juran & Moody, Inc., St. Paul; Walter L. Rogers,
Mellon National Bank & Trust Company, Pittsburgh

Continued from page 15
assistance applied for is not other¬
wise
available
on
reasonable
terms."

setting

loan

interest rates and benchmarks for
the availability of private
on

reasonable terms for

capital
entire

fiscal year

without regard to fluc¬
tuating markets; without regard to
the investment quality of the obli¬
gations, not even making a dis¬
tinction between general obliga¬
tion and revenue bonds, and on
the false premise that investment
capital
unreasonably
discrimi¬
nates against small communities in
comparing interest rates available
to the larger cities.
CFA's

The

the

Interest Rate

has

justifiably

manner

Asso¬

protested

administration

this program in-so-far as it results
in the Federal Government taking
over

able

rates.

The

function of private indus¬

try in substituting Federal financ¬

step in the right direction, is not
truly responsive to the problem.

premise with
discrimination
upon

which

the program is based and
has recommended that the yard¬

stick for establishing "reasonable
terms" for the availability of pri¬

Many have labeled the Federal
programs as the invasion of
States' rights.
Others, and I be¬
lieve more correctly, have recog¬
nized prevailing conditions as the
aid

result of the failure of the State

capital be administratively
monthly in a realistic rela¬
tionship to current market rates
for
comparable maturities and
types of obligations and that the
applicable statutory provisions be

to live up to
The

amended

the States create these local pub¬
lic bodies and prescribe their

made

loans

may

only when private financing
available

not

rates

reason¬

able in relation to current market

rates

for

types

comparable maturities
of securities.
These

recommendations

priate
The

should

and

action

increasing
bench

marks

private

terms,

the

most appro¬

are

loan

for

capital

followed.

Administrator

the

rates

and

availability

reasonable

of July 1, 1962, while

their responsibilities.
recipients of Federal aid in
the field of municipal finance are
creatures
out

the

and

powers

State

PITTSBURGH

■

19,

PA.

■.

Municipal and Corporate
Securities

under

programs

When

it is their responsibility
provide the financial means by

which

the

authorized

programs

accomplished.

may

This,

fortunately, has not been the

un¬
case.

Domination of State legislatures
by representatives of rural areas
has

in almost complete
recognize the require¬

resulted

failure

ments of urban
tion

Urbaniza¬

areas.

population has pro¬
a
rapid rate in
recent years that currently more
than half of the population of the
our

such

States
200

now

lives

metropolitan

less

areas.

Failure of the States to recognize
the needs of these metropolitan
has turned

areas

the

local

public

bodies from the State capitols and

that

ment

nancial
carry

the

Federal

adequate
to
out these aid programs. Yet,
resources

difference

Members

Pittsburgh Stock Exchange

Philadelphia-Baltimore Stock Exchange (Assoc.)
Boston Stock

Exchange (Assoc.)

the

Federal

Government

for

fi¬

nancial assistance in the fields of
local

responsibility where such
has entered.
While
many illustrations might be pro¬
vided, certain programs of the
government

State of New York

make the

can

that

case

travel

thicket"

could

the Court undertook

through
and

is that when the

that

five

months

since

the

can't

Government

the

down,

point. New York pioneered in the
field of low-rent public housing,
starting in 1926, long before the
first
Federal program, and has on the
ballot in the November
provided hundreds of millions of election proposed
constitutional
dollars to

its instrumentalities to

finance the

same.

It did likewise in

the field of governmental assisted

middle-income

housing

the consideration of

prior

amendments

providing for reap¬
portionment; and by court sug¬
gestion or otherwise, reapportion¬
ment

will

the

tion

locality

from

and

awaken

the

present

continued

themselves
to

and

act

condi¬

trend,

must

The

inevitable

that the Federal
entered
are

shifts from the rural to

in this field.

gram

those

conclusion

Government has

field of functions which

that

undertaken

should

have

been

by the States and that

this condition has been brought
about, in most part, by the failure
of rurally dominated legislatures

become

their

responsive to the
metropol¬
itan governments. Such response
will undoubtedly provide the pro¬
grams and means by which they
may be financed and the necessity
for the call upon the Federal Gov¬
more

for

Decision
my

cision
preme

opinion the
the

Court

Tennessee

United

the

recent de¬
States Su¬
landmark

reapportionment

case

the

Federal

fill the

*An

Government

prevented them and their political
from
playing the
proper role. Then, and only then,

subdivisions

render control

which

of these

properly

sur¬

programs

belong

with

vacuum.

address

by Mr. Mitchell before
Municipal Conference, Chicago,
111., Sept. 12, 1962.
the

First

A. E. Masten &
ESTABLISHED

Company

1891

Members New York Stock

Exchange

PITTSBURGH, PENNSYLVANIA

re¬

constitutional, statutory and

will the Federal Government

Teletype 412 642-4060

urban

needs and wishes of the

Underwriters and Dealers

administrative shackled that have

GRant 1-3883

areas, the legislatures and officials
in administrative capacities will

the
fully

sponsibilities
and
opportunities.
The first step should be to remove
state

Pittsburgh 22, Pa.

docket;

similar

pro¬ most of the 47 State legislatures
Washington.
It is be¬ which will meet in 1963.
Equi¬
lieved that, if the other States, table
reapportionment in favor of
where the need existed, had pro¬
urban areas may not come swiftly
vided
similar
programs,
there or easily but it appears inevitable.
would not have been the necessity
As
reapportionment
proceeds
for and the Federal Government
would not have provided a pro¬ and control of State government

any¬

came.

reverse

States

Bldg.

decision

law suits have
been filed in 31 States; eight state
legislatures
have
held
special
sessions and adopted reapportion¬
ment laws; 10 States have placed
came

States Must Act

1812 First National Bank

voters

equitable rep¬
resentation in state legislatures.
It has been reported that, in the

Fed¬

thing for nothing. It must charge
for hauling the money to Wash¬
ington, for sending 'some of it
back to the States, and for finger¬
ing it in the meantime. And, with
every
dollar deducted, the ex¬
penditure of the balance becomes
less responsive to the needs and
whence it

Corporate Bonds and Stocks

"political

the

held

to force

sue

it, the price
necessarily higher.
The Fed¬

wishes

Pennsylvania and General Market
Municipal Bonds

reversal of

States of their rights and a re¬
sumption of their responsibilities.

know,

you

well result in

may

the tide and the restoration to the

eral Government does

eral

H. J. Steele & Co,

for

not all of the
States have depended entirely on

taking such position, and
everyone else, knows—or should
know—that it's the same taxpay¬
ers who are footing the bill.
The

Underwriters

of tax¬

necessary

undertaking.

Govern¬

th^^

those

Brokers

sources

are

placed them in the tin cup brigade
marching on Washington. There, to recognize the pressing prob¬ ernment should diminish to the
cumulative pressures on Congress lems and needs arising from ac¬ point of elimination.
of
urban
representatives ~ have celerated metropolitan population
Current diplomatic negotiations
produced what has failed to be growth. What then do we have to
may illustrate this point. Thus it
provided by the State legislatures. look forward to for a correction is
the hope that the resurrection of
and reversal of this condition?
States' rights and States' respon¬
Frequently, in the discussion of
this subject, one hears the argu¬
sibilities will end of the necessity
Significance of Reapportionment
ment: is!

Retail Distributors

which

gram

than

BUILDING

carrying

powers,
to

United

THOMAS & COMPANY

States

legislative authority.

ceeded

PORTER

set-

that

Thursday, September 27, 1962

Lehman Brothers, San Francisco; William D. Byrne,
Phelps, Fenn & Co., New York; G. Carl Jordan, Jr.,
R. W. Pressprich & Co., Boston

States, and the

ation

Blames States

vate

the

their

established

IBA

to
the
smaller borrowers

respect
against

and

Policy

Investment Bankers

ciation

ing for that readily available from
private sources at truly reason¬

John S. Prosser,

& Co., Chicago; Leonard Hanauer, Ira
York; W. H. Hammond, Braun,
& Co., Chicago

A. C. Allyn
& Co., New

Bos worth

the falseness of the

practice of

Roche,
Haupt

■

Criticism stems from the admin¬
istrative

David

James

Municipal Bonds

Volume

196

Number

6198

The Commercial and Financial Chronicle

Richard W. Blackwood, Ranson &
F. Bradley, Milburn, Cochran

F. Agard,
Kansas Bond Advisory Council, Topeka;
Rich
Phillips, White-Phillips Co., Inc., Davenport, Iowa; Clarke J.
Robertson, Chapman, Howe & Co., Chicago

Rollin

Ranson, Ranson

Public Education and Sales

Municipals

"knows his stuff" — facts — some
year. Both
possibilities for our in¬ figures — background — and h as
sound judgment of relative values,
that this type of advertisement dustry as a whole and for those
that
can
adjust and the conviction to argue for
has been of substantial assistance member firms
their advertising budgets to in¬ his offering in comparison with
to them in making calls. Being
clude municipal bonds in their others, is a very valuable asset
more specific, we have found that
to dealer and customer alike. The
this type of advertising aids us in radio and TV programs. Often¬
times internal salesmanship is re¬ greatest number, however, of the
having new customers cognizant
thousands of registered represen¬
of our firm name and its activities quired to accomplish this phase.
tatives—Corporate salesmen and
and also gives our customers a
The Uninformed Salesman
Fund salesmen, have never had
better understanding of municipal
the proper opportunity to acquire
The Uninformed American Sales¬
bonds when our salesmen contact
a
"speaking acquaintance" with
man is the provider of OUR PAY
them.
"Our
advertising
in
general CHECK—as the only profit that municipal securities as a proper

the

area

which

newspapers

and in municipal pub¬

lications, such as the Louisiana
Municipal Review and the Louisi¬
ana
Police Jury Review, accom¬

distributed during the
have great

made

ever

No.

above

and

addition,

municipal bond

great
use

the

if I

unfair to a
the folks in the

many

our

business when I

term

uninformed

I apologize to those who
don't deserve that title
and

activities in that the issuing

au¬

thorities in

our

address my remarks to that larger

the

group
who very definitely
members of the uninformed

and

firm

our area

its

know of

activities

municipal bond field.
"As a concrete example of the
success
of our advertising pro¬
gram

that
been

we
our

would cite the statistic
volume of business

has

increasing and we
attribute this, certainly in part, to
our

steadily

consistent

and

rather

exten¬

because "it has

are
.

paid
me
to
learn about municipals"
"there is no profit to me in
selling municipals"
"after
you sell a
guy municipals, he's
gone
no trades
no
swaps
go find a new cus-

many

never

equipped to

serve

customers

our

with experienced personnel—both

sales
I

and

trading.
extremely

was

year

pleased

this

that the IBA Wharton School

course

devoted

some

"trading
lent

time

the

markets."

Jack Kenny
and Bob Wherheim did an excel¬
job

reached

their

this

however

presentation—
only

material

those for¬
taking the
course.
I am told, however, that
a
part of it at least will be in¬
corporated into some new forth¬
no
coming publications, available to
manager or partners to con¬
sider
price 'em as you will all of our members. Among the
matters covered in these speeches
or
can.
We have found in
our
was "trading integrity." Integrity
small operation that from a third
I believe is developed by under¬
to
a
half of
our
annual
gross
comes from our trading operations
standing and the practicing the
and we have recently expanded
procedures of trading which have
been the customs of our business
this phase of our operations look¬
ing toward a profit share higher these many years. It is the re.

than

tunate

very

enough

few

—

50%

are

Continued

better

page

part of almost every investment
portfolio.
The

being somewhat

plishes all of the factors involved sales end of
also assists us in our underwriting

when it is sold. Perhaps I

comes

Lewis, Blyth & Co., Inc., Chicago; Glenn N. Cremer,
America, N. T. & S. A., San Francisco; R. George
Le Vind, Blyth & Co., Inc., New York

sive institutional advertising pro¬
Municipal Ad Contest. And if gram."
Time does not permit me to ex¬
a plug is in order may I remind
you that the
final deadline for plore with you radio and TV as a
medium
of
Public
Education—
entries is Sept. 30th. I Quote:
"Our advertising in the various however, I am sure you are famil¬
iar with the reports of use
of
banking and financial newspapers
has been of great assistance to us these media as presented in Erwin
Boemhler's
Education
Bulletins A municipal bond salesman who
in having our firm well recog¬

Continued from page 9

operate and our salesmen report

of these

our

nized

Wilson
Bank

I doubt the veracity which by the way Jack Kenny is
opinions. First let me say trying to retitle "the trading mar¬
that a good, well-informed, ag¬ ket" as more appropriate. He is
gressive,
ambitious,
personable, mighty right too — as there are
municipal bond salesman has some 72 billion of municipal
bonds that are really available for
never had to borrow a dime for a
this trading market as compared
cup of coffee ... except on that
with eight or nine billion plus a
rare occasion when in his rush to
get to the office he forgot his year of new issue. I firmly believe
wallet. He never hunts for a job that in the average Municipal De¬
—the job hunts for him—he never partment far too little emphasis is
hunts for customers—as the real given to owning a good broad list
buyer — professionals — seek this of trading items — or secondary
fellow out to assist them in the market offering if you prefer that
name. No syndicate restrictions—
proper investment of their funds.

tomer"

Promotion of

Co., Inc., Wichita, Kansas; David
& Co., Inc., Wichita; John S,.\
Co., Inc., Wichita

salesman

average

Underwriters

ap¬

proaches his prospect from the
angle of the currently most popu¬
lar investment approach—up until
a few weeks ago this was PROFIT
or
p e r h a p s, for many,
GROWTH.
Few took the
.

Municipal and Corporation Securities

approach, that of

practical

The First Cleveland Corporation

assured TAX EXEMPT INCOME.

this

for

reason

commissions

good
sales

the

least

may

—

being

not

Member Midwest Stock

CLEVELAND

however, the lack of proper
on the subject plus lack

smaller

there

True,

Distributors

Dealers

education

Canton

Columbus

Exchange

14, OHIO

Sandusky

Toledo

Youngstown

promotional efforts are of
far greater significance.
of sales

here make a personal
I abhor the use of
high profit-marginal quality mu¬
If I may

observation,

nicipals

inducement

salesmen to develop an

individual

municipal clientele. If the Ameri¬

DEALERS

SECURITY

can

continues its for¬
surge — and may that for¬
be the case—such financing

economy

ward
ever

will, of course, in most instances,

SPECIALIZED—PROMPT
CLEARINGS

paid
it

may.
an

excuse

We clear for dealers in
New York
-

Cleveland

Pittsburgh
-

Toledo

come

and

partment. Teletype:
•SO

U S. SAT

Bank Wire:

Off

NCLV.

—

and

in the
it

market—be

However, if you will
— J3&
years

m-m

(

UNDERWRITERS AND DISTRIBUTORS

INVESTMENT SECURITIES

old-timer

Sept. 27

—

the high profit-

Chicago marginal deals of the 'Twenties

Cincinnati

the

were

'Thirties

Address Loans

have

meantime
as

due

when

=jimiNiiMmmiiMiiiimimiiimmmimiMiiiiiiiNiiiiiiiiiiimiimiMiimiiiiijl

Securities

De¬

216 574-9254

early
.

defaults

CORPORATE

the

issues should

Prescott

again repeat the

'Thirties.
The

Overlooked

NEW YORK STOCK

Co,

EXCHANGE

Secondary

Market

OHIO'S LARGEST BANK
This

observation

final

the

phase

brings
my

remarks.

And to what I believe is the most

MUNICIPAL

history is capable of repeating it¬
self. It will be interesting to see
who makes the market for these

MEMBERS

Assets Over One Billion Dollars

•

and I still believe

important
ment
.

and overlooked
seg¬
municipal business

=
=

900

NATIONAL CITY

BANK

SHAKER SQUARE

•

BLDG.

•

PR. 1-6300

CANTON •

•

CLEVELAND

COLUMBUS •

14, OHIO

TOLEDO

the

the secondary market

illllllllllllllllllllllllllllMIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIMIIMIIIIIIIIIIIIIIIIIIinE

Ted

The Commercial and Financial Chronicle

Alexander,

Texas

Bank

Trust

Company,

Jim Gallagher, Rodman & Renshaw, Chicago; Glenn B.
First National Bank of Fort, Worth

Martin J.

Crowe, First National Bank in St. Louis; David F. Bradley,
Milburn, Cochran & Co., Inc., Wichita; Elmer F. Borgmeyer,
Mercantile Trust Company, St. Louis

Dallas;
Coats,

AMERICAN

TAXPAYER

be¬

American

Lockett

Thursday, September 27, 1962

Shelton, Republic National Bank, Dallas; Bill Lucas,
Bank, Ft. Worth, Texas; Michael T.
Chambers, R. W. Pressprich & Co., New York

The Fort Worth National

businessmen,

and men—goes hand in hand with the klein, lerot
private profit motive. Unless we are will- klwge?* james' e*6" New York
CAN INVESTOR
the tools
private capital— ing to accept this assignment serijuran & Moody, inc., st. Paul
are
available
and
they become working together—can continue to ously, there is always the con- kocurek, arnold j.
more numerous every week. Their
accomplish the social and eco- venient alternative of letting the kramer^johnh? C?" Inc*' San Anfconl°
business learn these proper pro¬
nomic miracles that have made government meet all of our social
Harriman Ripley & Co., inc., New York
cedures
and methods. This re¬ usage becomes more available to
you
as
your
own
organization our nation one of the most re- needs. But then "Democracy is ladd, a. earl
quires teaching and explanation of
awakens to
their value and
as
markably successful experiments thorough."
some of the old "rules"—such as
langer^almrt^g/ 68 C°" Inc'*
their continued use puts your in
living since
the
world
Public Education on Municipal
Girard'Trust Com Exchange Bank,
"a bid cancels an offering and an
Philadelphia
name before the investor.
began.
."
Securities is a community service
offering
cancels
a
bid."
Jack
LARSON, DAVID
I only hope that we can con- —there are none better
In closing may I observe that,
prepared
Government Development Bank for
Kenny observed. "This rule rarely
tinue
these
miracles.
But
this to provide this service than the
Puerto Rico, New York
,
invoked today adds a great deal of while I am sure that some few
means
that, as businessmen, we Member firms of the Investment
will disagree with me, we do have
zest to trading. It demands the
must recognize with
increasing Bankers Association of America, lay^josepi^e? 8
full extent of your imagination a real moral obligation to our fel¬
*
frequency and
conviction
that 1
The Robinson-Humphrey Co., Inc.,
and timing and while I have been low citizen and our community to
social
responsibility, service
to
frwm * .tal.k J?y ,Mr- Stone before the
Atlanta
badly bitten by this rule in the put to proper use the professional
nnmmiini'+v
?,rst MunIclPal Conference, Chicago, 111., LEECH, FREDERICK C.
our
community and our fellow Sept. 12, 1962.
Arthurs, Lestrange & Co., Pittsburgh
past, I've never had more than knowledge of the members of our
LEEDY, LOOMIS C.
a
few minutes of regret when I industry for personal community
Leedy, Wheeler & Alleman, Inc., Orlando
have been trapped." Jack added: service. In July this year Tilden
LeVIND, R. GEORGE
"I feel that if this rule were in¬ Cummings, President of Chicago's
Blyth & Co., Inc., New York
Continued from page

of those of us who
have had this experience to insure
that the younger people in our
sponsibility

comes

the

EDUCATED
..

—

AMERI¬

are
as

such

believe

citizens

that

and

1)81188

„

mir

voked

would

stop

frequently today it
the retail chiseler—

and Trust Co. in

address to the

(and may I add the dealer chis¬ Junior Chamber of Commerce
eler) who after getting the best said: "Management of a business
bid for a block of bonds attempts enterprise properly includes the
to squeeze it for a quarter more." making
of
adequate profits
to
AMEN!

Better Education Means A Better

its financial strength* But

secure

zation

Pay Check
Your PAY CHECK will grow as

UNINFORMED SALESMAN
joins the ranks of the INFORMED
—as your traders grow in experi¬
ence

and

the

additionally it includes the reali¬
that

corporation

ment is such

your

UNINFORMED

LEWIS, ROBERT F.

Continental Illinois National Bank

manage¬

major influence on
total community that its ac¬
tions necessarily extend beyond
the immediate sphere of the cor¬
poration's affairs. "This," he said,
a

the

"is

the real

challenge: You and I

Chemical

Attended the Conference
Continued from page 11
HARRIS,

CHESTER

Henry Harris & Sons, Inc., New York
HARRISON, GEORGE G.
Harrison & Austin, Inc., South Bend
HASSMAN, ELMER G.
A. G. Becker & Co., Incorporated,
Chicago
HATCHER, CLIFF C.
Alester G. Furman Co., Inc., Greenville
HATTIER, GILBERT
Hattier & Sanford, New Orleans
HAUPTFLEISCH, LOUIS A.
Goldman, Sachs & Co., New York
HAWES, HARDIN H.
Harris Trust and Savings Bank, Chicago
HEIDER, CHARLES F.
Storz-Wachob-Bender

Co.,

Omaha

HENDRIX, JAMES R.
Hendrix & Mayes, Inc., Birmingham
HENGREN, RAYMOND E.
Federal

Deposit

Insurance

JOHNSON, FRED F.
Barcus, Kindred & Company, Chicago
JONES, WILLIS P.
Allison-Williams
Company,
Minneapolis
JORDAN, G. CARL
R. W. Pressprich & Co., Boston
KENNAN, THAD M.
First Bank in Dallas, Dallas
KENNEDY, JOHN X.
White, Weld & Co., Chicago
KENNY, JOHN J.
J. J. Kenny Co., New York
KEPLEY, THOMAS H.
McCarley & Co., Inc., Columbia
KIEPER, HENRY J.
New

York

New

York

Trust

LITTLE, CHARLES S.
C. H. Little and Company, Knoxville
LUBY, JOSEPH M.
Paine, Webber, Jackson & Curtis,
York

New

LUCAS, BILL
The

Fort

Corporation,

Bank,

E. F. Hutton & Co., Kansas City
LUNDBERG, RUSSELL
Westheimer
&
Company, Chicago

LUNDFELT, CHARLES E.
McCormick

Co.,

PRESTON

Harris Trust and

KIRTLEY, ARTHUR E.
The First Boston Corporation, Chicago

National

Worth

Fort Worth

LUCAS, MARK A.

LUNEY,

York

Hanseatic

Bank

Company, New York
LEWIS, W. WILSON
Blyth & Co., Inc., Chicago

Chicago

Savings Bank, Chicago

LYNCH, FRANK
Blair & Co., Incorporated,

New York;

Corp.,

Washington
HENRY, PAUL M.

Sanders

Company

Members New York Stock
REPUBLIC

NATIONAL

Exchange

BANK

Dallas

BLDQ.

The First National Bank of Chicago,
Chicago
HENSLEY, LOUIS S.
Indianapolis Bond & Share Corporation,
Indianapolis
'
HEWARD, JAMES W.
Butcher & Sherrerd, Philadelphia
HIBBERD, WILLIAM W.
Trust Company of Georgia, New York
HIEHLE, RUSSELL L.
Hayden, Stone & Co., Chicago
HILBORNE, TOM G.
Liberty National Bank & Trust Company,

Oklahoma

TTaSTOERWRITER
DISTRIBUTOR

City

DEALER

HILL, MALVERN
Malvern Hill & Company,

HINDSMAN, D.

Johnson,

Inc., New York

WILLIAM

Lane,

Space

Corporation,

Atlanta

State, Municipal, County & District Bonds

HITCHMAN, T. NORRIS
Kenower, MacArthur & Co., Detroit
HOFFMANN, JOHN F.
Kenower, MacArthur & Co., Chicago
HOLLANlD, ROBERT W.
Russ & Company, Inc., San Antonio
HOWARD, JOHN E.

Obligations of" •A.'u.tlaorities
Futolio Utility

& Industrial Bonds

Industrial National Bank of Rhode Island,

Preferred & Common Stocks

Providence

Bank. & Insurance Stocks

HUGHES, W. SHANNON
Raffensperger, Hughes & Co., Inc.,
Indianapolis
HURLEY, JAMES A.
Lee Higginson
Corporation, Chicago

ISAACSON, RALPH
Wachovia

Bank

Trust

Company,

Winston-Salem

M. DALE
Security First National Bank, Los Angeles
JACKSON, W. C.
!
JACKSON,

first

<gwtfku>€4t

First Southwest

Company,

JACOBS, CHARLES E.
Singer, Deane & Scribner,
JAMIESON, JAMES P.
Glore, Forgan & Co.,
JAMMER,

Dallas

DALLAS

Pittsburgh

Chicago

LLOYD R.

Boettcher and Company,

Chicago

JARRETT, ROBERT
Continental

Trust

Illinois

Company,

JEFFERS,
Dittmar

National

Bank

Chicago

WILLIAM A.
and Co., Inc., San Antonio

company

Volume

196

Number

6198

The Commercial and Financial Chronicle

Altgelt, Harris Trust & Savings Bank, New York; John W.
Milhau, The Chase Manhattan Bank, New York; A. E. Steen,
Wells-Far go
Bank, San Francisco

LYNE, LEWIS F.
Mercantile

McDOUGAL,

National

Bank

Dallas,

DflllflS

First National Bank of Boston,

Boston

MacLEOD,

GARY

Pacific Northwest

Company,
FRANCIS P.

MAGOUN,
National

Shawmut

Bank

Seattle

Boston,

ALFRED L.
& Company, Incorporated,

MAGOUN, WILLIAM C. B.
Bacon, Whipple & Co., Chicago
MARCUM, SARALYN B.
Bache

Co..

Houston

Trust Company

of Georgia, Atlanta

MATTIN, CHARLES J.
Folger, Nolan, Fleming
Washington
MAXWELL, JOHN M.
Northern

Trust

Co.,

Trust

Dickson &

Inc.,

Kansas

City

PETER C.
Hornblower & Weeks, Chicago
McCAY, CAFFERY
Hattier & Sanford, New Orleans
McClelland, john e.
McCABE,

New

N<uv

Minneapolis

Inc.,

New

York

MISCHUCK,

TED

York

Trust

MITCHELL,

National

Bank

Memphis,

Memphis
MITCHELL, JOHN N.
Caldwell, Trimhie
Mitchell, New York
MITCHELL, RODGER J.
Republic National Bank in Dallas, Dallas
MOFFAT, WILLIAM
Hemphill. N^ves & Co., New York
MOHR, SIDNEY J.
Thornton, Mohr, Farish & Gauntt, Inc.,
L.
Bank

Minnesota, Minneapolis
MORRIS, PAT G.
Northern Trust

ROAID
Publi^^f; Company,

Blue List

New York

DONALD W.

MOULTON,
R.

Co., Chicago

ROBERT L.
& Company, Atlanta

Tindall

MORTON,

J. H. Hilsman & Co., Inc., Atlanta
McCLINTICK, JAMES E.
Hayden, Stone & Co., inc., San Francisco

WINSTON

Northwestern National

MORRISON,

Moulton

PORTER,

National Bank

Trust Co., Chicago
MURPHY, LEE F.

New

Telephone

San

York

The

Illinois

REED, NORMAN E.

Francisco

Curtiss,

Cleveland

House & Co.,

Continued

page

Company,

Angeles

Rauscher, Pierce

Association,

Bankers

Washington
NEILSEN, HENRY
Dealers

Investment

NELSON,
The

Digest, New

B.
Company,

Illinois

York

Member: New York Stock
American Stock

Incorporated,

NIEBLING, WALTER W.
Merrill Lynch, Pierce, Fenner & Smith
Inc., New York
NISSEN,
ROBERT W.
Bache & Co., Chicago
NONGARD, RICHARD C.
Nongard, Showers & Murray, Inc.,
Chicago
NOONAN, WILLIAM

Inc.

Exchange
Midwest Stock Exchange

Bank

and

Insurance

Company

Stocks

Public

National

Bank

Utility, Railroad and Industrial

Bonds

Illinois

Continental

Municipal Bonds

Preferred Stocks

Trust

Co., Chicago
NORFLEET, J. U.

Leary
JOHN

Barrow,
John

Nuveen

O'LEARY, MARK
Harris

Shreveport

Co.,

•

San

Mercantile
Chicago

AUSTIN

HOUSTON

Chicago

Co.,

O'ROURKE, MELROSE B.
Flecther

American
Trust

Texas

Dallas

Building
Riverside 8-0111

Bank,

Savings

CARL

Witter

Dallas 1,

Francisco

Dean

Common Stocks

•

Chicago

Co.,

and

Trust

OLLMAN,

Distributors

Exchange (Assoc.)

& Co.,

Chicago
NELSON, ROBERT L.
Weeden & Co., Chicago

NUVEEN,

Los

Bank of Birmingham,

Birmingham
JOHN M.

NASH,

OBUCHOWSKI, THAD
Goodbody & Co., Detroit

•

Co.,

Incorporated,

Company,

O'DONNELL, ROBERT II.
William Blair & Company,

Underwriters

& Telegraph

York

PRAGER, LAWRENCE H.
Bank of America, N. T. & 8, A.,
PRATT, MARSOM B.
Estabrook & Co., Boston

Incorporated,

Company,

Company, Oklahoma City
POTTER, CHARLES W.
American

Ladd Dinkins & Company, New Orleans
MURPHY, RICHARD G.
B. J. Van Ingen & Co., Inc., New York
&

FELIX

TRUXTON B.

Bankers Trust Company, New York
PROSSER, JOHN S.
Lehman Brothers, San Francisco
RAND, RICHARD N.
Rand & Co., New York
RANSON, JOHN S.
Ranson & Company,
Inc., Wichita
RAWLESS, ROBERT B.
Abbott, Proctor & Paine, Richmond

Inc.,

The First National Bank & Trust

Illinois

Investment

EARLY F.

First

CHARLES

Continental

PRATT,

Fosdick,

Houston

Robert Garrett & Sons, Baltimore

MURPHY,

The First National

Leedy, Wheeler & Alleman, Inc., Orlando

LEWIS W.
Eddleman, Pollok &

York

New

Chicago
NABERS, DRAYTON

York

Company,

The

Co.,

MURRAY, W. N.

Co.,

Bank

MOLANDER,

Chicago

Company,

Chemical

The

Kenny

Stroud

Montgomery

MAYFIELD, HARRY F.
Commerce

MURRAY, WILLIAM J.

Francisco

MINER, DONALD D.

JACK
Stockyards National Bank, Wichita
MARLIN, WILLIAM M.
Bache & Co., New York
MARONEY, FRANKLIN
Blair & Co., Incorporated, Pittsburgh
MARTIN, JOHN G.
First of
Michigan Corporation, Detroit
MASTERSON, TOM W.
Underwood, Neuhaus & Co., Incorporated,
MATHEWS,

Chicago

MARKEY,

Miner, Chemical Bank New York Trust Company,
York; Richard P. Barnard, New England Merchants
National Bank,[ Boston

I'OLLOK,

MULLENS, ROBERT J.
MULLIGAN, RICHARD F.

MILLER, JOSEPH R.
Kalman & Company,
MILNER, HENRY

New

City* Okla.; Clark Cox, Harris Trust & Savings Bank, St. Louis

McGREW, EDWARD D.
The Northern Trust Company, Chicago
MENGDEN, JOSEPH M.
National Bank of Detroit, Detroit
MEYER, DONALD A.
Marshall and Meyer, Inc., Seattle
MEYER, WALLACE H.
Crocker
Anglo
National Bank,
San

Boston

The

Chicago

MacDONALD, LINFORD S.
Kay, Richards & Company, Pittsburgh
MacLEAN, Jr., ROLAND R.
The

Childs

Donald

E. Siefert, Stern Brothers & Co., Kansas City, Mo.; George
Green, Liberty National Bank & Trust Company, Oklahoma

Russell

CORPUS CHRISTI

•

LUBBOCK

•

ALBUQUERQUE, NEW MEXICO
Bank

National

FORT

•

MIDLAND

WORTH

ODESSA
•

•

SAN

HARLINGEN

•

ANTONIO

•

TYLER

FAYETTEVILLE, ARKANSAS

Indianapolis

Co.,

O'SULLIVAN, J. E.
The
Philadelphia National Bank,
Philadelphia
OWEN, A. GENE
First City National Bank of Houston,

State, Municipal and Housing

Authority Bonds

Houston

WILLIAM F. A.
Mullaney, Wells & Company,
PATTERSON, DONALD C.
PALMER,

Chemical

Bank

New

York

Chicago

Trust

Company, New York

Make

Mercantile

CARR

PAYNE,

Cumberland

Securities

Corporation,

Nashville

PAYNE,

WALLACE

of Texas

First

Corporation, San Antonio

PEELOR, CHARLES G.
Arthurs, Lestrange & Co., Pittsburgh

PENDERGRAST,
Courts

PERRIN,

THOMAS
Co., Atlanta
LORRAINE B.

Ellis

Blunt

Simmons,

TEXAS

Chicago

PETERS, HARRY W.
Peters, Writer & Christensen,

Inc.,

Denver

FIRST NATIONAL BANK IN DALLAS

PETERSON,
Equitable

E. NORMAN
Securities Corporation,

PETTIS, D. L.
Kirkpatrick-Pettis

BOND DEPARTMENT

Municipal Bonds

Company,

6031, Dallas 22, Texas

Telephone Riverside 8-5471

Teletype 214-899-8664

PFEFFER, DELMONT K.
The First National City Bank, New York
PHILIP,
W.

New

PETER VAN NESS
Morton & Co., Incorporated,

PARI
NATIONAL

York

PHILLIPS, BLAIR A.
Shearson, Hammill & Company, Chicago
PHILLIPS, T. WARD

BANK

mi Italia*

Central National Bank & Trust Company,
Des Moines

THE COMMERCIAL AND FINANCIAL CHRONICLE

(Reg. U. S. Patent Office) William B. Dana Company, Publishers, 25 Park Place, New York 7, N. Y., RECtor 2-9570. Claude D. Seibert, Publisher and President;

Treasurer; George J. Morrissey, Editor. Published twice a week [every Thursday (general news and advertising issue) with a statistical issue on Monday]. Other offices: 135 S. La Salle
Street, Chicago 3, Illinois (Telephone STate 2-0613); Copyright 1962 by William B. Dana Company. Re- entered as second class matter February 25, 1942, at the post office at New York, N. Y., under the Act
of March 3, 1879. Subscription in United States, U. S. Possessions and Members of the Pan American Union,
$65.00 per year; in Dominion of Canada, $68.00 per year. Other countries, $72.00 per year.
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NOTE: On account of the fluctuations in the

rate

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PFAU, GORDON
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P. O. Box

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New

exchange, remittance for foreign subscriptions and

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Winston

Northwestern National Bank, Minneapolis;
Steel, Drexel & Co., New York

Molander,
Walter

<■

Continued from page 19

ROBINSON,

RAY

Hornblower

REFSNES, JOSEPH L.
Refsnes, Ely, Beck and Company, Phoenix

REIS, GORDON

Puerto

Seasongood & Mayer, Cincinnati

Development Bank

Hutchinson

Co.,

Co.,
Mellon National

Chicago

New

Company,

York

Bank

Trust

Co.,

Pittsburgh
ROUSSEL, F. ALLEN

RINKER,
The

GEORGE

Ohio

Columbus

Co.,

ROBERTSON,

Chapman,

CLARKE

Howe

ROBERTSON,
The

New

Co.,

Cleveland

RUPPLE, BRENTON H.
Chicago

Robert W.

Trust

Co.

Western

New

York

Baird & Co.,

Milwaukee

SAUERMAN, DONALD E.
Harris Trust & Savings Bank, Chicago
SAYRE, BYRON J.
Ira Haupt & Co., Chicago
SCHAEFFER, ROBERT L.
Columbian

Securities

Topeka
SCHANCK, FRANCIS

Sutherland and

Company,

Detroit

STUTZ, CARL N.
The White-Phillips

National

Dabbs Sullivan

THOMAS
Fahey, Clark & Co., Cleveland
SWAGLER, RICHARD C.
First Alabama
Securities, Inc.,

New York

Birmingham

A.
of

Chicago,

SWANSON, D. C.
Hooker

SCHULTZ, GLENN R.
Trust

National

Bank

MUNICIPAL

FIRST

NATIONAL

Phone:

326-2527

BLDG.

Bell

The

Bond

EDWARD

Lazard

Freres

Teletype: 319 322-0026
First National Bank

Bldg.

Moines, Iowa

ATlantic

Bldg.

The

Financial 6-3336

Stern

Teletype—515 285-4723

SIMON,

Distributors

GENERAL

MARKETS

SMEAL,

Inc.,

Westheimer

Boettcher

Cleveland

Stein

We invite your

offerings

Trust

Luce.

Thompson

Pittsburgh

Inc.,

Salomon

Texas,

SAM M.
Dillon, Union Securities & Co.,

RALPH

White, Weld &
STEEL,
Drexel

WALTER
&

Co.,

Wells

Paine,

Fargo

Pittsburgh
York

Company,

Pittsburgh

Bank,

San

Francisco

Jackson

Curtis,

H.
Company

WRIGHT, WILLARD M.
Kidder, Peabody & Co.,
Pierce,

Carrison,

Philadelphia

Wulbern,

Inc.,

ZAHNER,

Dallas

Co.,

Baltimore

VICTOR

Zahner & Company, Kansas City

HAVEN
&

ZEITLER,

Bank, Los Angeles

Third

ZENTZ,

CHARLES W.

First

Watts

YOUNGS, JOHN O.
R. H. Moulton & Company, San Francisco

Co.,

Cleveland

JOHN R.

National

Bank

Nashville,

Investment

Bank

National

BILL

Chicago,

Bankers

Association,

Washington

ZIMMER,
The

Dallas

ROBERT

First

National

Bank

Chicago,

Chicago

ZUNIC, JOSEPH F.

Columbus

Thomas

Company,

Pittsburgh

THE

WATLING, LERCHEN & CO
Corporate and Municipal Securities
fributors
Member: New York Stock

Exchange, Detroit Stock Exchange,

unicipal
American Stock Exchange, Midwest Stock Exchange.
Midwest Stock Exchange

FORD
540 Omaha National Bank
Omaha 2, Nebraska

Telephone 346-4374 Teletype OM95

LINCOLN

Lincoln

BUILDING,

DETROIT 26,

MICHIGAN

OFFICE

Bldg.

Lincoln, Nebraska

Ann

Birmingham

Arbor

•

Western

WULBERN, EDWARD R.

Prescott

Inc.,

Co.,

VAUGHAN, L. LLOYD
Cady & Company, Inc.,

• v

Trust

Buffalo

Nashville

UTLEY, PAUL
Goodbody & Co.,

PAUL

York,

ZEBOLD,

Tripp & Co., Inc., New York

TUCKER, ALLEN M.
Rauscher, Pierce &

The

Marine

New

Baker,

Hutzler, New

Chicago

Webber,

Chicago

Masten

UNFER,
York

STEEN, A. E.
STEPHENS,

Company,

Brothers

United California

Talbot, San Francisco

YEAGER, G. THOMAS

UHL, PAUL E.

Co., New York

New

TRIPP, J.

Chicago

STARKIE,

TRESCH, ARTHUR
A.

Francisco

WARREN

The

TONNE, ALFRED E.

Co., Chicago

San

Jacksonville

Thomas

SPIVEY, JAMES L.
Milburn, Cochran & Company, Inc.,
Oklahoma City
Eastman

Baltimore

Boyce,

Youngberg,

WOODRUFF, DAVID

City

TOMASIC, ANTHONY

York

Company, Denver
&

Hannaford

Company

New

WILSON, CHARLES R.
Smith, Barney & Co., Chicago

Crowe,

Stone

Company,

TINSLEY, W. E.
Municipal Advisory Council

ELMORE

STALLARD,

Bros.

WILLIAMS,

JOHN

Guaranty

THORNBURGH, R. W.
Merrill Lynch, Pierce, Fenner & Smith
Inc., Cincinnati

Co.,

Chicago

Company,

WILLIAMS, EVERETT D.

Kansas

Co., Kansas City

Goldman, Sachs &

WILBUR, LeROY A.

& Co.,

THOMPSON. KENNETH

Bank, New York

Morgan Guaranty Trust
New York, New York
SONG,

Moines

THAYER, WILLIAM H.
Woodard-Elwood & Co., Minneapolis
Morgan

Co., New York

FRANK

Co., New York

Company,

WIESNER, FRED

New York

SINGER, G. HARTON
Singer, Deane & Scribner,

and

Chicago
WAECKERLE, HAROLD E.
Parker/Eisen/Waeckerle/Adams
&
Purcell, Kansas City
WALL, BILL T.
Parker/Eisen/Waeckerle/Adams &
Purcell, Kansas City
WALLACE, DARNALL
Bache & Co., New York
WALLACE, RICHARD J.
Braun, Bosworth & Co., Detroit
WALSH, JOHN J.
Cruttenden, Podesta & Miller, Chicago
WARNER, ALBERT J.
Stein Bros. & Boyce, Louisville
WEBBERMAN, BEN
New York Herald
Tribune, New York
WEEDEN, ALAN N.
Weeden & Co., New York
WEEKS, CHARLES
National Boulevard Bank of Chicago,
Chicago
WEEKS, ROBERT S.
F. S. Moseley & Co., Boston
WEHRHEIM, R. V.
The
Philadelphia
National Bank,
Philadelphia
WENDT, GEORGE B.
The First National Bank of Chicago,
Chicago
WESTPHAL, HARRY L.
Iowa-Des Moines National Bank,

Austin

IOWA-ILLINOIS-WISCONSIN MUNICIPALS

WHITLOCK, DANIEL P.
Ladenburg, Thalmann &
WICK, ROBERT

Chicago

Association,

TERRY, JOHN F.
Saunders, Stiver

Vick

THOMPSON,
Murray,

Manhattan

RUSSELL

WILLIAM

Weedon

Underwriters

Brothers

Bank

CHESTER W.
Rothschild

Des

National

Minneapolis

WILLIAM

Bankers

Paul

St.

KENNETH

Chase

SIEFERT,

Chicago

Local Government Law Section, American

Company, New York
SHELTON, LOCKETT
Republic National Bank in Dallas, Dallas

Chicago 3, Illinois

2-1456

TEMPEST,

York

SHOWERS, ROBERT
Nongard, Showers &
Chicago

DAVENPORT, IOWA

Northwestern

Minneapolis,

New

Buyer,

San Francisco

Inc.,

VIALE,

VICK, MICHAEL D.

TALBOT, O. JACK
Inc.,

SHAUGHNESSY, L. E.
Shaughnessy & Company,

SICKLER,
Fleming
Des

Securities,

Montgomery
SHANKS, WDLIAM S.

SHEAN,

BONDS

PHILIP

Alabama

First

Fay,

Northern Trust Company,

The

SWICK, THEODORE P.
White, Weld & Co., New York

SCURR, ELDRIDGE B.
Chiles & Company, Omaha
SELLERS,

SWEET, PHILIP W. K.

Chicago

Co.,

Company, Inc.,

Rock

Little

SUMMERS,

Bank

Illinois

Inc.,

Company,

SULLIVAN, JOSEPH H.
Cunningham, Schmertz & Co., Inc.,
Pittsburgh

Chicago
Continental

Chicago,

SULLIVAN, DABBS

Weeks, Philadelphia

Boulevard

Davenport

SCHMIDT, WALTER A.
Schmidt, Roberts Sr. Parke,
SCHOENEBERGER,

Bank

Boulevard

National

Chicago

Corporation,

MARSHALL

Hornblower &

STEPHENSON, ESWIN A.
Paribas Corporation,
New York
STEVENSON, STUART D.
Bankers Trust Company, New York
STEWART, ROBERT
Bank of the Southwest, N. A., Houston

New York, New York
STRATZ, ALBERT E.

Whipple & Co., Chicago
SCHELKE, WESLEY G.
Seattle-First National Bank, Seattle
SCHIMMEL, Jr., LOUIS H.
Michigan Municipal Advisory Council,
SCHMIDT,

STOHL, WALTER H.
Fidelity Union Trust Co., Newark
STONE, FRED D.
The Marine Trust Company of Western

Detroit

RYAN, JOSEPH M.
Ryan,

Continental

Bacon,

WILLIAM N.

Marine

York,

Orleans

E. BLAIR

Bache

Company,

New

RUHL,

Co.

Chicago

SANDERS, FLOYD W.
White, Weld & Co., Chicago
SANFORD, JAMES A.
Blyth & Co., Inc., San Francisco

The

Labouisse, Friedrichs &

Howard, Weil,

Company,

ROBERTS, DON L.
George K. Baum & Co., Kansas City

Casualty

SANFORD, J. B.
Hattier & Sanford, New Orleans

ROGERS, WALTER L.

WILLIAM
Hutton

for

Rico, New York

McMaster

Francisco

Inc., New Orleans

ROGERS, SAMPSON

RICH, ROBERT H.
Shelby Cullom Davis

Continental

Assurance Comnanv,

RODRIQUEZ, SALVADOR
Government

Rn,EY,

SAMUELS, RICHARD H.
Denver

RODDY, JAMES E.
Scharff & Jones,

REILLY, JAMES F.
Goodbody & Co., New York

San

L.
Weeks,

Thursday, September 27, 1962

L. Beck, Commercial & Financial Chronicle, New York;
William A. Jeffers, Dittmar & Co., Inc., San Antonio

Edwin

P. W. Cutler, Chapman & Cutler, Chicago; H. J. Crawford, Squire,
Sanders & Dempsey, Cleveland; J. N. Mitchell, Caldwell,
•'
Trimble & Mitchell, New York

'•

Jackson

Dearborn

•

Kalamazoo

Lansing

•

Port Huron

Pontiac

•

New York

Volume 196

Number 6198

.The Commercial and Financial Chronicle

W. PoIIok, Eddleman, Pollok & Fosdick, Inc., Houston; Richard C. Nongard, Nongard, Showers
& Murray, Chicago; H. Frank Burkholder, Equitable Securities Corporation, Nashville;
James E. Roddy, Scharff & Jones, Inc., New Orleans

Lewis

in effect today. For

Municipals for

that the

demand

Continued from page 7

day of the Hoover Administration
individual, it
and during all of this upset, the
that although
writer was asked by a large cor¬

poration if he could find a market
for $500,000 State of New York
3% bonds. In one telephone call
another
large
corporation
was

reached, a fair bid whs agreed
upon which was satisfactory to the
seller, and the bonds were sold.
was

real

test

tax-exempt

municipal bonds would increase
notably after the "Governments"
lost their tax exemption.
If we were to plot a chart show¬
ing the
Dow Jones
Municipal
Averages in recent years and also
the income tax paid by a specific

All Investors

This

it is obvious

for

F. Allen

Roussel, Howard, Weil, Labouisse, Friedrichs and Company, New Orleans; Ladd Dinkins,
<£ Co., New Orleans; Sam M. Stallard, Eastman Dillon, Union Securities <fi Co.,
Norman S. Downey, Eastman Dillon Union Securities & Co., New York

Ladd Dinkins

Chicago;

of World War II between the Treasury and the
market declined at Federal Reserve Bank over con¬
first from a 2.62% average to a trol of the money market and the
3.20% average. With increases in municipal averages declined for
Federal income tax
it rose to eight years to an all time low of
1.92%. A brief but severe drop 3.81% on Jan. 11, 1960. Since then
occurred after the Pearl Harbor the municipal market
has been
Disaster, but increases in income slowly recovering and the average
At

the

start

the municipal

taxes forced the average up to an

be evident all time high of 1.40% on April 1,
increase in Fed¬ 1946. Then the municipal market
into an irregular decline
eral income tax usually causes the went
tax exempt market to rise, yet down to a 2.50% average. A large
increase in income tax rates for
income tax reductions certainly
do not always cause the municipal 1951 pushed the average up to
1.75%. Then a conflict developed
market to go down.

would

now

seem

result

stands

feel

3.28%.

that the

Investors

inevitable

government's fiscal
policies will be increased taxation
despite announced promises to the
contrary.
Too
much
money
is
being appropriated. During this
discussion

our

taxes

should

the tax being
specific taxpayer
in a certain tax bracket is exactly
the same today as it was in 1944
at the height of the second World

emphasized

that

collected from

War with millions of

our

of the waste and destruction

really important reduction

in the U. S. Individual Income Tax
is

unlikely and therefore munici¬

pal bonds should be considered by
every

investor.

market¬

doubts the possibili¬

ties of capital gain in tax-exempt
bonds it would be interesting to

study the comparison of common
stocks
and
municipal bonds in
Table

when

the

average

of 3.81%

Dow

January 11, 1960
Jones Municipal

stood at the all time low
and the Dow Jones in¬

dustrial stock average was 667.16.

During the ensuing two and oneyears
not one of the
11
municipals on the list showed a
loss
and
the municipal market

half

rose

point where the average

yield was 3.28%. This would be
equivalent to a gain of $80.80 per
$1,000 on a 3% bond due in 25
years. In the same period of time
the Dow Jones industrial average

dropped
66.30
points,
although
certain high grade stocks such as
Consolidated Edison, Consumers
Power and Standard Oil (N. J.)
advanced. The Wall Street Journal

that it started compiling
prices of municipal
Jan. 1, 1928, but since
U. S. Governments had a Federal
reports
the

average

bonds

tax-exempt interest feature until
March 1, 1941, any
the yield on tax

with
be

comparison of
exempt bonds
corporate bonds would not
the

same

basis

would be

Stone
MEMBERS

Municipal and Corporate Bonds and Stocks

Youngberg

&
PACIFIC

COAST

STOCK

EXCHANGE

★

Investment Securities

California Municipal Bonds

•

/ EISEN / WAECKERLE /

PARKER

Municipal Financing Consultants

ADAMS &
RUSS BUILDING

•

SAN

Member

Midwest

Telephone YUkon 1-1314
Bell

System Teletype

•

415 393-9701

•

415 393-8148

Direct Wires

•

415 393-8853 (Bond

Dept.)

1012

Los Angeles

BALTIMORE AVE.,

Telephone BAltimore 1-4090
-

Fairman & Co.,

PURCELL, INC.

INCORPORATED

FRANCISCO

Stock

Exchange

KANSAS CITY 5, MISSOURI

Municipal Dept.: Teletype 816 556-0314
Trading

Dept.:

taxation in the future. It indicates
that

Capital Gains
anyone

conflict. This should be a
guide in estimating the extent of
great

ability.

citizens

in the Armed Forces and with all

Teletype

816

556-0490

The Commercial and Financial Chronicle

J. Gunther,
Washington, D.

John

Delafield

U. S. Conference of Mayors,
C.; F. E. Curley, Hawkins,
& Wood, New York

Carr, John Nuveen & Co., Chicago; J. C. Clark, Wachovia Bank & Trust Company,
Winston-Salem, N. C.; W. C. Jackson Jr., First Southwest Company, Dallas

rise

Interest Rate Outlook
Continued from page 4
a

Federal

tax

into

program.

financial

institutions

try and for residential construc¬

nize the need for prompt action to

reduce

the

burden

taxation

private investment spending
as part of a tax reform program.
The third ground for optimism is
the very large backlog of com¬
upon

These

commitments

the U. S. international

for the first half of this year was
reduced to $1.5 billion, as com¬

make loans to business and indus¬

tion.

pared with $2.4 billion in 1961. To
some extent this improvement was

may

improving rate
of at the expense of Canada which
investment spending next year.
in the first half of the year ex¬
Notwithstanding these possibili¬
perienced an outflow of funds to
ties, however, there is a heavy the U. S.
But, it also is the result
burden of proof on those who
of a determined effort by the Ad¬
anticipate any more than a gradual ministration which is
beginning
presage

to show results.
tion

ESTABLISHED

wisely

that it

1917

months to
to

balance of payments is concerned,
it is encouraging that the deficit

leaders

Congressional

were

activity

business

general

So far

opposed to a "quickie" tax
cut this Summer, they do recog¬

Although

in the next several months.

mitments which has been entered

reform

hold

sures

will

Thursday, September 27, 1962

Alfred E. Tonne, Salomon Brothers & Hutzler,
New York; Charles H. Gerken, Salomon
Brothers & Hutzler, Chicago

This will

come.

down

serve

upward

pres¬

any

interest rates because

the

reduce

attractiveness

enhance the

equities

and

tiveness

of bonds

general, then, all of the evi¬
suggests that interest rates
likely to move sidewise and to

dence
are

fluctuate

within

narrow

present levels.
The
requirements of our international

and mortgages.

It will also tend to hold down the

balance of payments

position will

rise

probably

total

dollar

demand

for

loanable funds.

continue

Perhaps most im¬
portantly,
it
will
enable
the
monetary authorities to retain an
easy
credit policy for a longer
period than would otherwise be

the lack of vigqr in the

the

place

rates.

economic
expansion probably rules out any
expectation of a strong rise of

case.

The Administra¬

relax

in its

efforts

to eliminate the deficit because of

U nderwriters

—

Distributors

—

continuing threat to the dollar.
gold supply has now been
to little more than $16
billion, with
"free
gold"
only
about $4 billion, as compared with
about $24 billion of short-term

Dealers

Our

One of our most important services to

reduced

MUNICIPAL and CORPORATE

SECURITIES

assets

held

eigners. It

STERNE, AGEE & LEACH
Members

•vV:'.',/

New
American

York Stock

Exchange

Stock Exchange

Birmingham
Wire

U. S. GOVERNMENT, STATE

by for¬

certain that for

the foreseeable future the need to

AND

MUNICIPAL

BONDS

tary, fiscal, and wage policies.

(Assoc.)

What

Goldman, Sachs & Co., New

MERCANTILE

Sizable Tax Cut Means Tighter
Monetary Policy

Montgomery
to

the

institutions and individuals

protect the dollar will play a
large role in determining mone¬

Private Wires Between Offices
Direct Private

appears

York

would

interest

certainly
months

some

and

for

that

seem,

Treasury

rates?

come

for
8th and LOCUST

monetary

financing

must

continue

New York

preventing the Treasury bill

rate

and

from

other

directed to¬

ST. LOUIS 66, MISSOURI

short-term

Correspondent 14 Wall Street

Chicago Telephone to Bond Department

rates

Dial 211 Request

getting

out of line
with
short-term rates in foreign money
markets.
Depending
upon
the

BANKERS

•

policies

ward

INVESTMENT

TFtlMj

conclude about the

can we

outlook

Enterprise 8^70

RESOURCES OVER $600 MILLION

movement of money market rates

abroad,
rates

the

may

level

short-rterm

somewhat,

vary

but

considerable stability is to be ex¬
pected. If a sizable tax cut should
be

enacted

enlarged

year,

Federal

involving
deficit, a

higher

COMPLETE INVESTMENT SERVICE

level

would

probably be the conse¬
of
a
tighter monetary

quence

short-term

DEALERS

UNDERWRITERS

BROKERS

rates

Specialists in all Arizona Municipal Issues

policy.
With regard

long-term
that

demands

will

rise

several

Dean Witter st Co
Midwest Slock
and olher

Exchange

likely

capital

the

meet

rates.

WEST ADAMS STREET, CHICAGO 3, ILLINOIS

Telephone RAndolph 6-7200

inflow

seems

expect
In

any

LOS

ANGELES

NEW

YORK

funds,

PHOENIX

DEL E. WEBB CORP.

GUARANTY BANK OF PHOENIX

Established 1931

reduction in this flow.

REFSNES, ELY, BECK & CO.
Members New

from
some

moderate

softening

rates may occur in this area of the

The
OFFICES SERVING INVESTORS

and

reason

capital market.
49

ARIZONA BANCORPORATION

During the
savings in¬
experiencing

market has benefitted

further

MARKETS

BANK

ARIZONA BANK

de¬

particular, the residential mort¬

gage

NATIONAL

FIRST NATIONAL BANK OF ARIZONA

upward

readily available funds, and
FRANCISCO

A. J. BAYLESS
VALLEY

year

stitutions have been

heavy

Corporate Stocks Including

ARIZONA PUBLIC SERVICE CO. PREFERREDS

same

these

serious

first half of this

there

SAN

Firm Markets in Arizona

funds

but

without

pressures

Exchange

principal security and commodity exchanges

seems

somewhat

months,

enough

mands

for

time the supply of funds should be

large
Members New York Slock

to the outlook for

rates,

prospects for general busi¬

activity suggest that gen¬
eral
inflationary pressures
are
not likely to be present for some

American
112 W.

York Stock

Stock

ADAMS

Teletypes: Mun. Dept. PX 355

ALpine 8-4911

Corp. Dept. PX 488
Private

ness

Dominick

Exchange

Exchange (Asso.)

ST., PHOENIX, ARIZONA

Telephone:

floor under both short- and longterm
rates.
At
the
same
time,

recognizes, however,

cannot

range

the

around

attrac¬

Wire

Dominick, New York City & J. Barth & Co., Los Angeles

Volume 196

Number 6198

The Commercial and Financial Chronicle

mittee

Coupon pond: An Outmoded
Continued from page

The

ance

stantly

of unquestioned accept¬
of the coupon bond is over,

tiny and

justments.
much

often than not, ad¬

The world

faster

this

is moving

new

the

economic

frontiers—but

can't travel them
wagon

in the covered

methods of the past cen¬

imagination,

courage,

effort.

one

of them is

with

more
important,
suggestions
on

Executive
States

Vice

Liberty Street,

Hugh S. Hauck, Vice President
The Boatmen's National Bank, 300

United

Trust

Company of New
York, 45 Wall Street, New York
5, New York
Charles M. Bliss, Executive Vice
President The Bank of New
York,
48 Wall Street, New York
5, New

Listed below
affiliation

are

the

names

members

Bankers

Special

and Trust
Salle

North Broadway, St. Louis 2, Mis¬
souri.
'

(Chairman),

President

York, 33

the apathy that exists
The Committee includes:

Russell H. Johnson

New

him

help
means

overcome

today.

New York, New York.

Donald

Jurgemeyer,

Vice

President and Trust Officer Irwin
Union Bank and Trust

York.

Company, 231 South La
Chicago, Illinois.

Street,

Morton

Girard

Smith,
Trust

Vice

President

Corn

Exchange
Bank, Broad and Chestnut Streets,
Philadelphia 1, Pennsylvania.
Advisory

Company,

Columbus, Indiana.
Joseph C. Kennedy, Vice Presi¬
dent Bankers Trust Company, 16
Wall Street, New York
5, New

Members:

Kenneth

Martin, Merrill Lynch,
Fer.ner & Smith, Inc. 70
Street, New York, New York.

Pierce,
Pine

Orvel

Sebring, Attorney, Mor¬
Bockius, 2107 Fidel¬
ity Trust Building Philadelphia,
Pennsylvania.
gan, Lewis &

Ray F. Myers, Vice President
Continental Illinois National Bank

York.

American

tury.

toward util¬

ization of the obvious advantages
of the registered bond is gaining
momentum. It is a challenge that
will be successful if met with

of the
missile, and the
sufficient
computer. It is pioneering trails to
and

transistor,

age

move

your area, contact him. point
out the problems that you foresee.

era

changing conditions. Fi¬ and the
logical
nancial procedures require scru¬

Bonds.

Even

And Expensive Instrument

and

the

Com¬

Felix

Davis, Assistant Vice

President Federal

Reserve

Bank

Underwriters

—

Distributors

—

Dealers

Municipal & Corporation Securities
Specializing in

louisiana and mississippi
Municipal Bonds

Hattier & Sanford
Whitney Bank Building

NEW ORLEANS 12, LA.
Teletypes: (Area Code 504) 822-5321

822-5320

Long Distance: 304 and 305

Lewis

W. Pollok, Eddleman, Pollok & Fosdick, Inc., Houston; Linford S.
Macdonald, Kay, Richards &
Co., Pittsburgh; Louis S. Hensley, Jr., Indianapolis Bond & Share Corporation, Indianapolis;
Sidney J. Mohr, Jr., Thornton, Mohr, Farish & Gauntt, Inc., Montgomery, Ala.

UISIAN A
AND

;

i,,'

■■

lid K

Sill.

^4"

|r.|j

MISSISSIPPI
MUNICIPALS

Howard, Weil, Labooisse, Friedricns
fj
AND COMPANY r*
(investment iecutltleS
211

Carondolot
Now

St.

Orleans,

—

B24-2711

La.

□

MEMBERS NEW YORK STOCK EXCHANGE

Alan

K. Browne, Bank of America, N. T. & S. A., San Francisco; Russell M. Ergood, Jr., Stroud <£
Company, Incorporated, Philadelphia; Joseph L. Refsnes, Refsnes, Ely, Beck <ft Co., Phoenix, Ariz.

IKE D. SCHARFF

JAMES E. RODDY

JOHN J. ZOLLINGER, JR.

S char IT L Jones
INCORPORATED

140

TELETYPE

CARONDELET

ST.

TELEPHONE

504-822-5200

504-524-0161

NEW ORLEANS 12, LA.
SHREVEPORT, LA.
D. L.

Pettis, Kirkpatrick-Pettis Co., Omaha; Richard G. Murphy, B. J. Van Ingen & Co., Inc., N. Y.;
Arthur Tresch, A. E. Masten & Company, Pittsburgh; Robert H. Cook, B. J. Van Ingen & Co., Inc.,
Miami; David T. Guernsey, B. J. Van Ingen & Co., Inc., New York

BATON

ROUGE, LA.

JACKSON, MISS.
LAFAYETTE, LA.

Bruce A.

William

M.
Marlin, Bache & Co., New York;
John J. Kenny,
Kenny Co., New York; Darnall Wallace, Bache & Co., New York

Jack

Markey, Stockyards National Bank, Wichita, Kansas; J. N. Norfleet, Barrow, Leary
Shreveport, La. Leroy Klein, Xeberrf/ia/ & Co., Inc., New York; Brian Corrigan,
Stockyards National Bank, Wichita, Kansas.

Newton

Co.,

San

Co.,

Barber, W. H. Newbold's Son & Co., Philadelphia; Joseph M. Ryan, Ryan, Sutherland &
Detroit; John A. Albertson, Baker, Simonds & Co., Inc., Detroit; Donald W. Moulton,
R. H. Moulton & Co., Los Angeles

Thursday, September 27, 1962

McClinUck, Hayden, Stone & Co.,
Incorporated, San Francisco; Everett D. Williams, Stone & Youngberg, San Francisco;
Willys P. Jones, Allison-Williams Company, Minneapolis

Fred D. Stone, Jr., Marine Trust Company of Western New York,
New York; Dr. Emmett Wallace, James O. Rice Associates,
New York; Wallace H. Meyer, Crocker-Anglo National
Bank,

A. Earl Ladd, Dallas Union Securities Co., Inc., Dallas; James E

Cleveland; Robert F. Derrey, Barr Brothers & Co.,
York; Robert H. O'Donnell, William Blair & Co., Chicago; Haven L. Zebold,
Prescott & Co., Cleveland

Blackie, Fulton, Reid & Co., Inc.,

New

J. J.

The Commercial and Financial Chronicle

Donald A. Meyer, Marshall & Meyer, Inc., Seattle; H. Frank
Burkholder, Equitable Securities Corporation, Nashville; E. Norman
Peterson, Equitable Securities Corporation, New York

Francisco

Albert J. Warner, Stein Brothers & Boyce, Louisville, Ky.; Charles C. Bechtel, Watling, Lerchen & Co.,
Detroit; William W. Crawford, W. L. Lyons <£: Co., Louisville, Ky.; Bill Wilbur, Jr.,
Stein Bros. & Boyce, Baltimore

Arnold

J. Kocurek, Rauscher, Pierce & Co., Inc., San Antonio, Texas; D. N. Goldenson, M. B. Vick &
Co., Chicago; Preston T. Luney, Harris Trust & Savings Bank, Chicago; Stanton Aby,
Kalman & Co., Inc., Minneapolis

Volume

196

Number

6198

The Commercial and Financial Chronicle

I I# 5:

if i

Wfr

life

•f :•!

iiii

^ if i%

Indianapolis Bond & Share

|j|#:

CORPORATION

BUILDING

INDIANA

INDIANAPOLIS

MEIross

ISO

E. MARKET

ST.

4. INDIANA

9-4321

Investment Service
UNDERWRITERS

DEALERS

•

Municipal Bonds

BROKERS

Corporate Bonds

Over-Counter Stocks
Wesley G. Schelke, Seattle First National Bank, Seattle; Sherman Ellsworth, Wm. P. harper & Son
& Co., Seattle; Richard C. Swagler, First Alabama Securities, Inc., Birmingham, Ala.; L. E.
Shaughnessy, Jr., Shaughnessy & Co. St. Paul; Wesley J. Anderson,
Allison-Williams Company, Minneapolis

•

Listed Stocks

Mutual Funds
Member Midwest Stock Exchange

Underwriters

Distributors

E D D LE

Dealers

MAN,

POLLOK

&FOSDICK
INCORPORATED

INVESTMENT

BANKERS

Municipal and Corporate Securities
Bank & Insurance Stocks

McGrew, The Northern Trust Company, Chicago;

Curtis H. Bingham, Bingham, Walter <fi

Hurry, Inc., Los Angeles, President of the IBA; Delmont K. Pfeffer, First National City Bank,
New York;
Tom G. Hilborne, Liberty National Bank & Trust Company, Oklahoma City;
Kenneth Thompson, Luce, Thompson & Crowe, Inc.; Kansas City, Mo. Harold E. Waeckerle,
Parker/Eisen/Waeckerle/Adams & Purcell, Inc., Kansas City, Mo.

Bank

the

Southwest Bldg.

HOUSTON

2, TEXAS

440

Edward

Teletype—713 571-3145

jbealeAl

Telephone—CApitol 4-9221

•

MUNICIPAL BONDS

•

CORPORATE SECURITIES

•

BANK & INSURANCE STOCKS

II*

PRIVATE PLACEMENTS

UNDERWRITING

MERCANTILE BANK BUILDING
DALLAS

1, TEXAS

RIVERSIDE 3-0033

TWX 214-899-8931

Duncan, Mullaney, Wells & Company, Chicago; William F. A. Palmer, Mullcmey, Wells & Co.,
Chicago; Roald Morton, The Blue List Publishing Co., New York City; Robert E. Hamilton,
Laidlaw & Co., New York City; Anthony Butera, National State Bank, Newark, N. J.;
Donald D. Miner, Chemical Bank New York Trust Company, New York

Steve

UNDERWRITERS-DISTRIBUTORS
STATE, MUNICIPAL AND REVENUE BONDS

Specializing in Issues of
Washington j Oregon
Idaho i Montana j Alaska

/A/£s$>
FOSTER

Sc MARSHALL INC.

INVESTMENT
1505

NORTON

SEATTLE

Arthurs, Lestrange & Co., Pittsburgh; Franklin Maroney, Blair & Co. Incorporated,
Pittsburgh; Robert J. Cunningham, Singer, Deane & Scribner, Pittsburgh; Theodore P. Swick,
White Weld & Co., New York; Lee Nelson, Weeden & Co., Chicago; Charles Weeks,
National Boulevard Bank, Chicago

Charles G. Peelor,

AREA CODE:

206

BANKERS
BUILDING

4, WASHINGTON

MAin 4-4550

TELETYPE: 206-998-0673

The Commercial and Financial Chronicle

John

H. Moult on & Co., San Francisco; Henry L. Westphal, Iowa-Des Moines National
Moines, Iowa; Saralyn B. Marcum, Bache & Co., Chicago; Robert H. Rich,
Shelby Cullom Davis & Co., San Francisco; William L. Christy, Reynolds & Co., Chicago

O. Youngs, R.

Bank, Des

Albert

G. Langer, Girard
Trust Corn Exchange
Bank, Philadelphia; Robert V. Wehrheim,
Philadelphia National Bank, Philadelphia

Nelson, The Illinois Company, Incorporated,
Chicago; William J. Riley, E. F. Hutton &
Company, New York

Paul

Stephens, Paine, Webber, Jackson & Curtis, Chicago; Carl H. Oilman, Dean Witter & Co.
Chicago; Andrew Buchan, Bacon, Whipple & Co., Chicago; P. A. Bergquist, First National Bank,
Chicago; Joseph G. Gross, Jr., C. J. Devine & Co., New York; William T. Brown,
C. G. Devine & Co., Chicago

Alan N. Weeden, Weeden & Co., New York;
Charles E. Jacobs, Singer, Deane

Singer, Deane

G. H. Singer III, Singer, Deane & Scribner, Pittsburgh;
& Scribner, Pittsburgh;
& Scribner, Pittsburgh

Charles

Fisher,

Thursday, September 27, 1962

Truxton B. Pratt, Jr., Bankers Trust Company, New York; Robert L. Morrison, J. W. Tindall & Co.,
Atlanta; Arthur E. Goodwin, Jr., Johnston, Lemon & Co., Washington, D. C.; Arnold J.

Kocurek, Rauscher, Pierce & Co., Inc., San Antonio, Texas

Robert

Edward

Smith

George

Mason, Merrill Lynch, Pierce, Fenner &
Incorporated, Chicago, Chairman of I. B. A.
Committee; Erwin W. Boehmler, Invest¬
ment Bankers Association of America,
Washington, D. C.

Coughlin, Coughlin and Company, Denver;
Coughlin, Coughlin and Company, Denver

Education

Andrew Scharps, Manufacturers
Hanover Trust Company, New

Hanover Trust Company, New York; David J. Barry, Manufacturers
York; Clarence F. Edner, First Western Bank & Trust Company,
Angeles; Richard D. Gordon, Bank of California, San Francisco; William E. Gormley,
Francis I. du Pont & Co., San Francisco; Andrew Steen, Wells Fargo Bank, San Francisco

Los

Thomas Yeager III, Baker, Watts
Cincinnati; John F. Hoffmann,

& Co., Baltimore; Gordon Reis III, Seasongood & Mayer,
Kenower, Mac Arthur & Co., Chicago; Steve Brown,
Barret, Fitch, North & Co., Kansas City, Mo.

Volume

Richard

196

Number 6198

The Commercial and Financial Chronicle

Rand, Rand A Co., New York; Charles S. Garland, Jr., Alex. Brown A Sons, Baltimore;
W. Craigie, Jr., F. W. Craigie &
Co., Richmond, Va.; Walter W. Craigie, Sr.,
F. W. Craigie & Co., Richmond, Va.

Sanford, Jr., Hattier A Sanford, New Orleans; Carr Payne, Cumberland Securities Corporation,
Nashville; Alan K. Browne, Bank of America, N. T. A S. A., San Francisco; James E. Roddy,
Scharff A Jones, Inc., New Orleans

Walter

Interest

exempt from all present Federal Income Taxes,

under the

existing statutes and Court decisions.

$500,000
Massachusetts

Turnpike Authority
4%—5%

Boston Extension Series B Revenue Bonds

Due

These Series B Revenue Bonds carry a
when these Bonds

there

are

January 1, 2002

4% current

refunded. It is estimated

coupon,

plus 1%

per annum

deferred interest, payable

by the engineers, this will be in 1976. In addition to this,

extraordinary call features that provide CAPITAL GAIN.
We have

available,

request,

brochures fully explaining the above and

why the Series B Bonds should be considered when making
These Bonds

are

part of an issue to finance the much

which traverses the State from

boundary to

investment.

needed Boston Extension to the Massachusetts Turnpike
Thruway at the New \brk-Massachusetts

connection with the New York

terminal interchange with State Route No. 128 at

downtown Boston. The Massachusetts

Turnpike has been

point in Weston about 12 miles west of

successful operation since it

was

opened for

traffic in 1957.

Price 100%
(plus accrued interest)

Municipal Department

oAllen & Company
Established 1922

Municipal TWX

Telephone
HAnover 2-2600

30 Broad Street, New York 4, N. Y.

212-571-1750

The Commercial and Financial Chronicle

Thursday, September 27, 1962

Blueprints for Tomorrow
include the First today!
Serving the underwriting requirements of states,
counties

and

municipalities from coast-to-coast.

STATE

MUNICIPAL

Welcome to

U.S. GOVERNMENT

BONDS

Chicago: First Municipal Conference

—Investment

Bankers

Association

of America

Building with Chicago since 1863

The First National Bank
of
FRanklin 2-6800

Chicago

Dearborn, Monroe, Clark & Madison Streets
MEMBER

FEDERAL DEPOSIT INSURANCE

CORPORATION

Teletype CG-987

Volume 196

Number 6198

...

Supplement to the Commercial and Financial Chronicle

Thursday, September 27, 1902

(1)

BOND CLUB OF CHICAGO
-

1 MM

8
»s

k pi#

September 13-14,1962

iKiff
■»

-w-

'-i

■

Ray Lauber, Chase Manhattan Bank, New York City;

Kenneth

Sickler, Chase Manhattan Bank, New York; John W. Ahearn,
State Street Bank

Trust Co.,

Boston

Robert
Sam
.

C. Hawley, Harris
Trust A Savings Bank, Chicago;
Stallard, Eastman Dillon, Union Securities A Co., Chicago;
H. Shockey, Hutchinson, Shockey A Co., Chicago

M. Bergman, Allison-Williams Company, Minneapolis; Arthur E. Kirtley, First Boston'
Corporation, Chicago; Elmer G. Hassman, A. C. Becker A Co. Incorporated, Chicago;
John W. Shields, Barcus, Kindred A Co., Chicago

Oscar

Sidney V. Duncan, Ira Haupt A Co., Chicago; William S. Morrison, Jr., Harris Trust A Savings
Bank, Chicago; P. Alden Berguist, First National Bank, Chicago; Robert M. Schaller,
Harris Trust A Savings Bank, Chicago

Michael G. Foster, Foster

Seattle;

Thomas

Carl H.

Thomas

A Marshall, Inc., Seattle; Gary MacLeod, Pacific Northwest Company,
B. Summers, Fahey, Clark A Co., Cleveland; Tom E. Morris,
United California Bank, Los Angeles

C. A.

Oilman, Dean Witter (ft Co., Chicago, President of the
Municipal Bond Club; Paul Stephens, Paine, Webber, Jackson
<ft Curtis, Chicago, General Chairman

Schoeneberger, National Boulevard Bank, Chicago; Carl N. Stutz, White-Phillips Company, Inc.,

Davenport, Iowa; Harry L. Westphal, Iowa-Des Moines National Bank, Des

Moines, Iowa; Rich Phillips,

White-Phillips Company, Davenport, Iowa; John W. Allyn, A. C. Allyn A Co., Chicago

George D. Smith II, Harris Trust A Savings Bank, Chicago; William A. Noonan, Jr., Continental
Illinois National Bank A Trust Company, Chicago; Andrew D. Buchan, Bacon, Whipple A Co.,
Chicago; Peter C. McCabe, Jr., Hornblower A Weeks, Chicago

Robert

Lewis, Chemical Bank

New York Trust Company,' New York; John B. Clayton HI,
Senholzi, Chase Manhattan Bank, New York; John L. Mosle, Jr.,
Harry Peters, Peters, Writer A Christensen, Inc., Denver

First National Bank, Dallas; John C.

Rotan, Mosle A Co., Dallas;

(2)

Thursday, September 27, 1962

Volume

196

Number

*
,

Walter

Knowles

J. Kenneth

III, First Boston Corporation, Chicago;
Clauson, Goldman, Sachs A Co., Chicago;
Shearson, Hammill A Co., Chicago

William L.
%

Brophy, William Blair A Company, Chicago; George W. Hall, Wm. E. Pollok A Co., Inc.,
York; A1 Bianchetti, J. A. Hogle A Co., New York; H. W. "Bob" Faath, Jr.,
A. C. Allyn A Co., New York

Supplement to the Commercial and Financial Chronicle

V«<#-

L. Kevin, Glare, Forgan A Co., Chicago; John P. Byram,
Trust Company, New York; Owen P. McDermott,

Northern

Shaw, McDermott A Co., Des Moines, Iowa

Dominick

Blyth A Co., Inc., Chicago

Christy, Reynold* A Co., Chicago; James C. Shaw, Shaw, McDermott A Co., Des Moines;

Thomas

John D. Mackinnon, Moroney, Beissner A Co., Inc., Houston, Texas; James M. Coughlin, Coughlin and
Company, Inc., Denver; Edward J. Jilek, Ira Haupt A Co., Dallas; J. Thomas Kuehler,

George LeVind, Blyth A Co., Inc., New York; Paul L. Mullaney,
Mullaney, Wells A Company, Chicago; Walter Cleave,

Elmer F. Borgmeyer, Mercantile Trust Company, St. Louis; Robert F. Yenne, Merrill Lynch, Pierce,
Fenner A Smith Incorporated, Cleveland; Eldridge B. Scurr, Chiles A Company, Omaha

Anderson, Allison-William Company, Minneapolis; Albert O.
Foster, Foster A Marshall, Inc., Seattle; Michael G. Foster,
Foster A Marshall, Inc., Seattle

New

Murray Gilliam, C. H. Little A Co., Jackson, Tenn.; Matthew
Hickey III, Hickey A Co., Chicago; Salvador Rodriquez,
Government Development Bank for Puerto Rico

...

Wes

Richard A. Erley,

James

6198

Dominich,

Seattle

Frederick W. Channer, Channer Newman Securities Co., Chicago;
George B. Wendt, First National Bank of Chicago; Robert R. Brinker,
John Nuveen A Co., Chicago

Nesom Burt Jr., Underwood, Neuhaus A Co., Incorporated, Houston; John F. Baumann, The Milwaukee
Company, Milwaukee, Wis.; "Thomas L. Carter, Loewi A Co. Incorporated, Milwaukee;

Lee Nelson, Weeden A Co., Chicago

Volume 196

Number 6198

A Supplement to the Commercial and Financial Chronicle

John Kennedy, White, Weld A Co.,

Chicago; Joe Ellis, First Southwest
Company, Dallas; Clayton Brown, The Northern Trust Company,
Chicago; Wilbur H. Frederking, Fridley A Frederking, Houston

F. Brittain Kennedy, Sr., F. Brittain
A Co., Inc., Chicago; W.

Thomas Kevin,

Glore, Forgan A Co., Chicago; Mark Zollar, Kidder,
Peabody A Co., Chicago; Cliff Gueutal, Allan Blair A Company,
Chicago; Bob MacAdam, First of Michigan Corporation, Chicago

Kennedy A Co., Boston; F. Brittain Kennedy, Jr., Braun, Bosworth
H. Hammond, Braun, Bosworth & Co., Inc., Chicago;
Sharp, Del Ray Beach, Fla.

N. S.

T. Luney, Harris Trust A Savings Bank, Chicago; "Chick"
Gerken, Salomon Brothers A Hutzler, Chicago; Alfred E. Tonne,
Salomon Brothers A Hutzler, New York City; Jerry Hayes,
Albert Frcmk-Guenther Laiv, Inc., Chicago

Preston

Pat

William

J. Corbett, Jr., Burns, Corbett A Pickard, Inc., Chicago;
George B. Wendt, First National Bank of Chicago; A. G. Pickard,
Burns, Corbett A Pickard, Inc., Chicago

Cook, Wm. J. Mericka & Co., Cleveland; Gene Owen, First City National Bank, Houston;
Rand A Co., New York; Russell M. Ergood, Stroud A Company Incorporated,
Philadelphia; John Allyn, A. C. Allyn A Co., Chicago

A. Toplikar, Zahner A Company, Kansas City, Mo.;
George M. Peterson, Delago Securities Co., Inc., Chicago;
Robert W. Kohler, H. C. Speer A Sons Company, Chicago

Chicago;

(3)

Richard N. Rand,

Frank

Spivey, Milburn, Cochran A Co., Inc., Oklahoma City; Paul M. Kleihege, Weeden A Co.,
Carl Coffey, R. S. Dickson A Co., Inc., Charlotte, N. C.; Lloyd Jammer,
Boettcher and Company, Chicago

Jack

Thursday, September 27, 1962

Blair

Phillips, Shear son, Hammill A Co., Chicago; Bob Tero,
Chicago; Bob Taaffe, Blyth A Co., Inc.,
Chicago; Bill Deeley, A. C. Allyn A Co., Chicago

A. C. Allyn A Co.,

Continental Illinois National Bank A Trust Company, Chicago; Bill Christy, Reyttolds
Co., Chicago; Philip F. Koenig, Koenig, Keating A Stead, Inc., Chicago; John Walsh,
Cruttenden, Podesta A Miller, Chicago

Ivor Owen,

(4)

Volume

Thursday, September 27, 1962

Bergquist, First National Bank, Chicago; Andrew D. Buchan,
Bacon,
Whipple & Co., Chicago;
Paul Stephens,

Edwin

Owen P.

Beck,

196

Commercial

Number 6198

Chronicle,

Financial

New

Supplement to the Commercial

and Financial Chronicle

Bill

Marlin, Bache & Co., New York; Ed Bueltman, Blair & Co.,
Incorporated, New York; Joe Meyers, Spencer Trask & Co.,
New York; Louis S. Donadio, Hornblower <8 Weeks, Chicago

York;

McDermott, Shaw, McDermott <8 Co., Des Moines, Iowa

Paine, Webber, Jackson & Curtis, Chicago

Carl H. Oilman, Dean Witter <8

■

Co., Chicago; W. A. Jeffers, Dittmar <8 Company, Inc., San Antonio;
<8 Co., Inc., Chicago

James G. Brophy, William Blair & Company, Chicago; Bob Simond, Halsey, Stuart

Felix

N.
Leo

Porter, First National Bank & Trust Company, Oklahoma City; Edgar R. Oppenheim,
Oppenheim & Co., Inc., Oklahoma City; George J. Fagin, Oklahoma City, Okla.;
Philip J. Rhoads, First National Bank & Trust Co., Oklahoma City, Okla,

Edward

J. Jilek, Ira Haupt <8 Co., Dallas; Darrell R.
Beam, Jr., Ira
WiUiam N» Robertson, Marine Trust Company of Western New
Byron J. Sayre, Ira Haupt & Co., Chicago

Haupt & Co., Chicago;
York, New York;

Bob Brown, Allan Blair

Jerry

Fred

Tripp,

& Company, Chicago;

Tripp

Co.,

Inc.,

New

Louis S. Donadio, Hornblower <8 Weeks, Chicago;
York; Terry Carey, Goodbody <8 Co., Chicago

Rahn, Illinois Company, Chicago; Bert Nelson, Illinois Company, Chicago; J. J. Kenny,
/, Jf Kenny Co.t New York City; Frank
Bickmore, Boettcher and Company, Chicago

Robert J. Mullens, J. J. Kenny Co., New York; R. W. Clark, Jr., R. W. Pressprich <8 Co., Chicago;
John

Clapp,

Jr., R. W. pressprich <8 Co., New York; John
The Northern Trust Company, New York

Byram,

Full text of Commercial and Financial Chronicle : September 27, 1962, Vol. 196, No. 6198

FRASER